Document:

Exhibit 10.1

 

INTERCREDITOR
AGREEMENT

 

This Intercreditor Agreement (this “Agreement”)
is entered into as of August 13, 2003 by and among RevCare, Inc., a Nevada
corporation (the “Borrower”) and
the parties listed on Exhibit A hereto, which parties are also
holders of certain promissory notes (the “Notes”)
as described on Schedule A attached hereto (the “Lenders”).

 

Recitals

 

A.                                   FBR
Financial Services Partners, L.P. (“FBR”) previously made a loan to the Borrower in the original principal
amount of One Hundred Thousand Dollars ($100,000.00) (the “Original Senior
Note”).

 

B.                                     The
Lenders described in Schedule A, other than FBR, have made loans to the
Borrower which are subordinate to the Original Senior Note.

 

C.                                     FBR
proposes to lend funds to the Borrower in the principal amount of Five Hundred
Thousand Dollars ($500,000) pursuant to a Note (the “New FBR Note”) of even date
herewith.

 

This Agreement provides for certain matters of repayment between the
Lenders.

 

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

 

1.                                       The
Lenders agree that their rights to receive any payments under their respective
Notes shall continue to be subordinated to FBR’s right to receive payments
under the Original Senior Note and
any renewals, modifications or extensions thereof (including those which extend
the maturity date).  The Lenders and the
Borrower acknowledge and agree that until payment in full of the Original
Senior Note to FBR, (i) no payments shall be made to the other Lenders for any
sums due with respect to their Notes other than payments made in accordance
with Section 2, and in the event any such payments are made to the other
Lenders, such payments shall be collected, enforced and received by the such
Lenders as trustee for FBR and shall promptly be paid to FBR for application
against the Original Senior Note as FBR may direct and (ii) the other Lenders
may not take any action to enforce any security interest held by the other
Lenders with respect to the indebtedness evidenced by their respective Notes.

 

2.                                       For
so long as no Event of Default, as defined in the Notes, has occurred and is
continuing, the Borrower may continue to make regularly scheduled payments of
principal and interest to the Lenders in accordance with the terms of their
respective Notes.  The Borrower will not
make any prepayments of amounts owing to any Lender without the approval of the
Lenders.  Upon the occurrence of an Event
of Default, and for so long as such Event of Default has not been waived or
cured, the Borrower shall not make, and no Lender shall accept, any payment
except as shall (i) first pay the Original Senior Note in full and then (ii) be
shared ratably among the Lenders so as to maintain as near as possible the
amount of the debt owing under the Notes pro rata according to such Lenders’
respective proportionate interests in the amount of debt owed as of the date
immediately prior to such payments.

 

 

3.                                       If
any Lender shall at any time receive any payment of principal, interest or
other charge arising under their respective Notes, or any sum by virtue of
counterclaim, offset or other lien that may be exercised or from any security,
other than payments made in accordance with Section 2, above, such Lender
shall (i) pay such payment to FBR if the Original Senior Note has not been paid
in full and (ii) after the Original Senior Note has been paid in full, share
such payment or payments with the other Lenders pro rata according to the
amounts of debt owing under their respective Notes as of the date immediately
prior to such payment or payments.

 

4.                                       Each
Lender will promptly notify the other Lenders upon the occurrence of an Event
of Default under such Lender’s Notes.

 

5.                                       Notwithstanding
the terms and conditions of the any loan documents between the Borrower and any
Lender, or any other right of the Lenders, no Lender shall take possession of,
commence and conduct foreclosure proceedings with respect to, or otherwise
dispose of and realize on, the Collateral as a result of an Event of Default
without first providing written notice to and allowing the other Lenders the
opportunity to cure any such Event of Default.

 

6.                                       This Agreement shall bind any successors or
assignees of the parties hereto.  This
Agreement is solely for the benefit of the Lenders, and not for the benefit of
the Borrower or any other party.

 

7.                                       This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

 

8.                                       This Agreement shall be governed by and construed
in accordance with the laws of the State of California, without giving effect
to conflicts of laws principles.

 

9.                                       This Agreement represents the entire agreement
with respect to the subject matter hereof, and supersedes all prior
negotiations, agreements and commitments. 
This Agreement may be amended only by written instrument signed by the
Borrower and the Lenders.

 

10.                                 In
the event of any legal action to enforce the rights of a party under this
Agreement, the party prevailing in such action shall be entitled, in addition
to such other relief as may be granted, all reasonable costs and expenses,
including reasonable attorneys’ fees incurred in such action.

 

11.                                 All
notices under this Agreement shall be deemed to have been given when delivered
personally, or five (5) days after delivery when deposited in the United States
mail, registered or certified, with proper postage and registration or
certification fees prepaid, or one (1) day after delivery when delivered to
Federal Express or a similar overnight carrier, addressed to parties at the
addresses set forth on the signature pages hereto or to such other addresses as
may be designated by any of the parties from time to time by written notice
given to the other party(ies) in the aforesaid manner.

 

2

 

The parties hereto have executed this Intercreditor Agreement as of the
date first set forth above.

 

	
   

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REVCARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Manuel Occiano

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Manuel Occiano

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  5400 Orange
  Avenue, Suite 200

  
	
   

  	
   

  	
   

  	
  Cypress, CA
  90630

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FBR Financial Services Partners, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/George L. McCabe, Jr.

  
	
   

  	
   

  	
  Name:

  	
  George L. McCabe

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  1001 19th Street North

  
	
   

  	
   

  	
   

  	
  10th Floor

  
	
   

  	
   

  	
   

  	
  Arlington, VA  22209

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Russell E. Mohrmann

  
	
   

  	
   

  	
  Russ Mohrmann

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Suzette M. Mohrmann

  
	
   

  	
   

  	
  Suzette M. Mohrmann

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  9432 Walker Ranch Circle

  
	
   

  	
   

  	
   

  	
  Villa Park, CA  92861-2820

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RBA Rem-Care, Inc.,

  
	
   

  	
   

  	
  a California corporation

  
									

 

 

	
   

  	
   

  	
  By:

  	
  /s/ Russell E. Mohrmann

  
	
   

  	
   

  	
  Name:

  	
  Russell E. Mohrmann

  
	
   

  	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  9432 Walker Ranch Circle

  
	
   

  	
   

  	
   

  	
  Villa Park, CA  92861-2820

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Insource Medical Solutions, LLC,

  
	
   

  	
   

  	
  a California limited liability corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Russell E. Mohrmann

  
	
   

  	
   

  	
  Name:

  	
  Russell E. Mohrmann

  
	
   

  	
   

  	
  Its:

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  9432 Walker Ranch Circle

  
	
   

  	
   

  	
   

  	
  Villa Park, CA  92861-2820

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Hospital Employee Labor Pool, a California
  Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Russell E. Mohrmann

  
	
   

  	
   

  	
  Name:

  	
  Russell E. Mohrmann

  
	
   

  	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  9432 Walker Ranch Circle

  
	
   

  	
   

  	
   

  	
  Villa Park, CA  92861-2820

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Robert G. Perez

  
	
   

  	
   

  	
  Rob Perez

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Barbara C. Perez

  
	
   

  	
   

  	
  Barbara C. Perez

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  9752 Villa Woods Dr.

  
	
   

  	
   

  	
   

  	
  Villa Park, CA  92861

  
						

 

 

SCHEDULE
A

 

Schedule of Lenders’ Notes

 

(1)                                  That
certain Secured Convertible Promissory Note dated January 8, 2003 issued by
Borrower in favor of Russ Mohrmann and Suzette Mohrmann in the original
principal amount of $1,373,981.03

 

(2)                                  That
certain Secured Convertible Promissory Note dated January 8, 2003 issued by
Borrower in favor of RBA Rem-Care, Inc. in the original principal amount of
$412,435.40

 

(3)                                  That
certain Secured Convertible Promissory Note dated January 8, 2003 issued by
Borrower in favor of Insource Medical Solutions, LLC in the original principal
amount of $198,442.10

 

(4)                                  That
certain Secured Convertible Promissory Note dated January 8, 2003 issued by
Borrower in favor of Hospital Employee Labor Pool in the original principal
amount of $583,653.23

 

(5)                                  That
certain Secured Convertible Promissory Note dated August 14, 2000 issued by
Borrower in favor of Rob and Barbara Perez in the original principal amount of
$1,225,000, as amended by that certain Modification Agreement dated January 8,
2003.

 

(6)                                  That
certain Promissory Note dated July 21, 2002 issued by Borrower in favor of FBR
Financial Services Partners, L.P. in the original principal amount of $100,000

 

(7)                                  That
certain Secured Convertible Promissory Note dated September 19, 2002 issued by
Borrower in favor of FBR Financial Services Partners, L.P. in the original
principal amount of $1,000,000

 

(8)                                  That
certain Promissory Note dated August 13, 2003 issued by Borrower in favor of
FBR Financial Services Partners, L.P. in the original principal amount of
$500,000

 

A-5

 

EXHIBIT
A

 

Schedule of Lenders

 

Russ Mohrmann

 

Suzette M. Mohrmann

 

RBA Rem-Care, Inc.,

 

Insource Medical Solutions, LLC

 

Hospital Employee Labor Pool

 

Rob Perez

 

Barbara C. Perez

 

FBR Financial Services Partners, L.P.

 

A-6Exhibit
10.2

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER THE SECURITIES LAWS OF
ANY STATE.  THEY MAY NOT BE SOLD,
OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT AND ASSOCIATED QUALIFICATIONS IN EFFECT WITH RESPECT TO THE
SECURITIES UNDER SUCH ACT AND SUCH LAWS OR AN OPINION OF COUNSEL OR OTHER
EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION
ARE NOT REQUIRED.

 

REVCARE, INC.

PROMISSORY NOTE

 

	
  $500,000.00

  	
   

  	
  Cypress,
  California

  
	
   

  	
   

  	
  August 13, 2003

  

 

RevCare, Inc., a Nevada
corporation (the “Company”), the principal offices of which
are located at 5400 Orange Avenue, Suite 200, Cypress, California 90630, for
value received hereby promises to pay to FBR Financial Services Partners, L.P.
(the “Holder”),
the sum of Five Hundred Thousand Dollars ($500,000.00), or such lesser amount
as shall then equal the outstanding principal amount hereof on the terms and
conditions set forth hereinafter.  The
outstanding principal and any accrued and unpaid interest thereon shall be due
and payable on the earlier of (i) demand by the Holder or (ii) when
declared due and payable by the Holder upon the occurrence of an Event of
Default (as defined below) (the occurrence of any event under either subclause
(i) or (ii) shall constitute the “Maturity Date”).  Payment for all amounts due hereunder shall be made by mail to
the address of the Holder.

 

The following is a
statement of the rights of the Holder and the conditions to which this Note is
subject, and to which the Holder hereof, by the acceptance of this Note,
agrees:

 

1.                Interest.  This Note shall bear interest at the rate of
the prime rate of interest charged by the Company’s lender plus three percent
(3%) per annum.  The interest shall be
paid on the Maturity Date.

 

2.                Events of
Default.  If any of the following
events specified in this Section 2 shall occur (herein individually referred to
as an “Event
of Default”), the
Holder may, so long as such condition exists, declare the entire outstanding
principal and any accrued and unpaid interest thereon immediately due and
payable, by notice in writing to the Company:

 

(a)                 The
institution by the Company of proceedings to be adjudicated as bankrupt or
insolvent, or the consent by it to the institution of bankruptcy or insolvency
proceedings against it or the filing by it of a petition or answer or consent
seeking reorganization or release under the federal Bankruptcy Act, or any
other similar federal or state bankruptcy or insolvency law, or the consent by
it to the filing of any such petition or the appointment of a receiver,
liquidator, assignee, trustee or other similar official of the Company, or of
any substantial part of its property, or the making by it of an assignment for
the benefit of creditors, or the taking of corporate action by the Company in
furtherance of any such action; or

 

1

 

(b)                                 If,
within sixty (60) days after the commencement of an action against the Company
(and service of process in connection therewith on the Company) seeking any
bankruptcy, insolvency, reorganization, liquidation, dissolution or similar
relief under any present or future statute, law or regulation, such action
shall not have been resolved in favor of the Company or all orders or
proceedings thereunder affecting the operations or the business of the Company
stayed, or if the stay of any such order or proceeding shall thereafter be set
aside, or if, within sixty (60) days after the appointment without the consent
or acquiescence of the Company of any trustee, receiver or liquidator of the
Company or of all or any substantial part of the properties of the Company,
such appointment shall not have been vacated; or

 

(c)                                  If the Company fails to pay (i) any interest
or principal when due and payable hereunder, or (ii) any obligations other than
interest and principal payable hereunder within five (5) days of the date
written notice of demand for payment is received.

 

(d)                                 Upon the occurrence of an event of default as
defined in any material agreement or instrument to which the Company is bound,
beyond any period of grace.

 

3.                Prepayment.  The Company may prepay, in whole or in part
at any time, the outstanding principal balance under this Note.

 

4.                Company
Covenant.  The Company hereby
covenants and agrees that it will not incur any additional indebtedness for
borrowed money without the written consent of the Holder.

 

5.                Assignment.  Subject to the restrictions on transfer
described in Section 7 below, the rights and obligations of the Company
and the Holder shall be binding upon and benefit the successors, assigns,
heirs, administrators and transferees of the parties.

 

6.                Amendments;
Waivers.  Any term of this Note may
be amended or waived with the written consent of the Company and the Holder.
Any amendment or waiver effected in accordance with this Section 6 shall be
binding upon the Holder, each future Holder and the Company.  No waivers of, or exceptions to, any term, condition
or provision of this Note, in any one or more instances, shall be deemed to be,
or construed as, a further or continuing waiver of any such term, condition or
provision and shall not be valid unless in writing.

 

7.                Transfers.  This Note may not be transferred or assigned
in whole or in part without compliance with all applicable federal and state
securities laws by the transferor and the transferee (including the delivery of
investment representation letters). 
Subject to compliance with such applicable federal and state securities
laws, title to this Note may be transferred by endorsement and delivery in the
same manner as a negotiable instrument transferable by endorsement and
delivery.

 

8.                Attorneys’
Fees; Waivers.   The Company agrees
to pay the Holder’s reasonable costs incurred in collecting and enforcing this
Note, including reasonable attorneys’ fees. 
The Company hereby waives demand, notice, presentment, protest and
notice of dishonor.

 

2

 

9.                Governing Law.  This Agreement shall be governed by and
construed under the laws of the State of California (irrespective of its
conflict of laws principles).

 

IN WITNESS WHEREOF, the
Company has caused this Note to be issued in Cypress, CA as of the date set
forth above.

 

	
   

  	
  REVCARE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Manuel Occiano

  
	
   

  	
  Name:

  	
  Manuel Occiano

  
	
   

  	
  Title:

  	
  President

  
					

 

3

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