Document:

10.2 Long-Term Executive Plan (1)

Exhibit 10.2

FEDERAL HOME LOAN BANK OF SEATTLE

Bank Incentive Compensation Plan - Long-Term Executive Plan

As of January 1, 2011

FEDERAL HOME LOAN BANK OF SEATTLE
Bank Incentive Compensation Plan - Long-Term Executive Plan
TABLE OF CONTENTS
        
	
					
	 
	 
	Page

	1.0
	

	Plan Objectives
	1
	

	2.0
	

	Definitions
	1
	

	3.0
	

	Eligibility
	3
	

	4.0
	

	Award Opportunity
	3
	

	5.0
	

	Performance Measures
	3
	

	6.0
	

	Award Determination
	3
	

	7.0
	

	Award Conditions
	4
	

	8.0
	

	Administrative Control
	4
	

	9.0
	

	Miscellaneous Conditions
	5
	

	 
	 
	 

	Appendix A: 2011 - 2013 Performance Period
	 

	 
	Performance Period
	9
	

	 
	Award Opportunity
	9
	

	 
	Long-Term Performance Measures
	9
	

	 
	Other Key Objectives
	9
	

	 
	 
	 

    
    

FEDERAL HOME LOAN BANK OF SEATTLE
Bank Incentive Compensation Plan - Long-Term Executive Plan 
PLAN DOCUMENT
		
	1.0
	Plan Objectives

		
	1.1
	The purpose of the Federal Home Loan Bank of Seattle's Bank Incentive Compensation Plan - Long-Term Executive Plan is to achieve five objectives:

		
	1.1.1
	Motivate the President and Senior Officers to achieve the Seattle Bank's short-term and long-term business objectives;

		
	1.1.2
	Link executive compensation to be consistent with strategic objectives and the Seattle Bank's Consent Order - preserving and enhancing member access to liquidity and funding through such things as Asset Improvement, Capital Adequacy (stock repurchase and redemption or dividend payments), Risk Management and Remediation of Examination Findings;

		
	1.1.3
	Provide a focus on longer term performance and outcomes through a competitive reward structure for the President and Senior Officers; 

		
	1.1.4
	Provide a vehicle for closer Board involvement and communication with management regarding the Seattle Bank's long-term strategic plans; and 

		
	1.1.5
	Retention of Senior Management. 

		
	1.2
	The Plan is a cash-based, long-term incentive plan, formulaic in nature and definitive in terms of minimum, target and maximum levels of performance that reflect the base case scenario in the bank's strategic plan. 

		
	1.3
	The Award Opportunity and Long-Term Performance Measures, and other relevant information for a Performance Period are set forth in Appendix A.

		
	2.0
	Definitions

		
	2.1
	When used in this Plan, the words and phrases below shall have the following meanings:

		
	2.1.1
	Award Opportunity  is the award percentage (see Appendix A - Table 1) that may be earned at the end of the three-year Performance Period on achievement of the Long-Term Performance Measures described in Appendix A - Table 2.

		
	2.1.2
	Base Salary is defined as the Participant's normal rate of pay before any other add-ons (i.e. bonuses, incentive pay, etc.) and after any adjustments (i.e. leave w/o pay).

		
	2.1.3
	Board means the Seattle Bank's Board of Directors.

		
	2.1.4
	Committee means the Governance, Budget and Compensation Committee of the Board.

		
	2.1.5
	Disabled means the Participant is receiving benefits under Seattle Bank's Long Term Disability Plan. 

		
	2.1.6
	Finance Agency means the Federal Housing Finance Agency.

		
	2.1.7
	Participant means an employee who participates in the Plan pursuant to Section 3.0. 

		
	2.1.8
	Long-Term Performance Measure means each long-term performance factor that is taken into consideration under the Plan in determining the value of a Participant's Plan Award.

		
	2.1.9
	Performance Period means a certain three-year period over which the Long-Term Performance Measures in Appendix B are measured.

		
	2.1.10
	Plan means the Bank Incentive Compensation Plan - Long-Term Executive Plan.

		
	2.1.11
	Plan Award means an amount that is determined at the end of the Performance Period based on results of the Long-Term Performance Measures, subject to adjustment as provided in Section 6.0. 

		
	2.1.12
	President means the President and Chief Executive Officer of the Seattle Bank.

		
	2.1.13 
	Risk Committee means the Risk Committee of the Board.

		
	2.1.14
	Rule of 70 refers to the date on which an employee's years of benefit service added to their age equals 70.

		
	2.1.15
	Seattle Bank means the Federal Home Loan Bank of Seattle.

		
	2.1.16
	Senior Officer means a Senior Executive Officer of the Seattle Bank who is SVP and above (excluding the President).

		
	2.1.17
	Terminated without cause means the Participants termination was not due to malfeasance, including the commission of any fraud or felony, or the material breach of his or her employment obligations, as determined by the Board. 

		
	2.1.18
	Transaction means a single transaction or a single strategy made up of more than one transaction in determining the reporting threshold in Section 5.3.

		
	3.0
	Eligibility

		
	3.1
	A Seattle Bank employee who is a Senior Vice President or above at the beginning of Performance Period shall participate in the Plan. 

		
	3.2
	Employees who are hired, transferred, or promoted into a President Senior Officer position during a Performance Period may be allowed participation in the Plan pursuant to Section 9.2.

		
	3.3
	Contract employees, temporary employees, and part-time employees are not eligible to participate in the Plan.

		
	4.0
	Award Opportunity

		
	4.1
	There will be two levels of Award Opportunities:

		
	Level I:
	President

		
	Level II:
	Senior Officers 

		
	5.0
	Performance Measures

		
	5.1
	Long-term Performance Measures will be established with respect to each Performance Period as described in Appendix A. Three achievement levels will be set to determine award payouts under the Plan:

		
	Threshold
	The achievement level for minimum award payout.

		
	Target
	The achievement level for target award payout.

Superior    The achievement level for maximum award payout.
		
	5.2
	At the beginning of each Performance Period, Long-Term Performance Measures for the Performance Period will be reviewed by the Committee, in consultation with the Risk Committee, and approved by the Board.

		
	5.3
	All Seattle Bank transactions that may affect the Retained Earnings Performance Measures by more than $30 million and their impact on incentive compensation shall be reviewed with the Board.  The Board shall provide to the Finance Agency, a recommendation and sufficient detail about the transactions to enable determination of the full set of consequences of the decision and an expected time frame for achievement of the Performance Measure.

		
	6.0
	Award Determination

		
	6.1
	Achievement level of the Long-Term Performance Measures will be evaluated at the end of the three-year Performance Period cycle and will be based on performance results at threshold, target, or superior as identified in Appendix A - Table 2.

		
	6.2
	Based on the results from Section 6.1, an Award Opportunity percentage will be derived from Appendix A - Table 1.  

		
	6.3
	The Plan Award is equal to a percentage (defined in Section 6.2) of the Participants Base Salary at the beginning of the Performance Period, subject to adjustments due to non-achievement of Other Key Objectives provided in Appendix A and/or as provided in Sections 6.4 and 6.5. 

		
	6.4
	Depending upon the Board's assessment of severity and taking into consideration other mitigating factors, Participants may receive less than their otherwise earned award if, during the most recent examination of the Seattle Bank by the Finance Agency or successor regulator, an unsafe or unsound practice or condition with regard to the Seattle Bank was identified, unless the practice or condition took place prior to start of employment, comes to the attention of said Participant prior to examination and is not continued. However, Participants may receive their earned award provided that the finding of an unsafe or unsound practice or condition is subsequently resolved within the Performance Period in favor of the Seattle Bank by the Finance Agency. 

		
	6.5
	To the extent the Seattle Bank was merged at PAR Value, the Committee, with Board approval, may determine any earned amounts up to the target achievement level. 

		
	7.0
	Award Conditions

		
	7.1
	No incentive award will be earned on any individual Performance Measure in which the Seattle Bank fails to achieve threshold. 

		
	7.2
	If the Seattle Bank fails to achieve threshold level performance on one Performance Measure, individual incentive awards for the Participants shall in no event exceed 66% of the maximum potential award provided in Appendix A.  If the Seattle Bank fails to achieve threshold level performance on two Performance Measures, individual incentive awards for the Participants shall not exceed 33% of the maximum potential award provided in Appendix A.  

		
	7.3
	No incentive award will be paid if the Participant does not have satisfactory performance over a Performance Period. Satisfactory performance for each plan participant will be determined based on assessment against six dimensions of performance which incorporate the duties of each job over the Performance Period: (1) Operating Metrics; (2) Risk Management; (3) External Relations; (4) Leadership; (5) Strategy and Vision; and (6) People and Management. 

		
	7.4
	Payment of earned Plan Awards will be deferred until the Bank has the ability to redeem stock by achieving the threshold performance levels. 

		
	7.5
	Total incentive awards shall not exceed $723,000 which is 60% of the President's base salary plus 45% of other Senior Officer aggregate base salaries as of January 1, 2011.  However, adjustments to the maximum payout amount will be necessary as Participants' are added or terminated from the Plan pursuant to Section 9.2.  

8.0    Administrative Control
		
	8.1
	The Committee will administer the Plan and may delegate day-to-day administration to the Seattle Bank's Human Resources Department.   

		
	8.2
	In addition to the authority expressly provided in the Plan, the Board shall have such authority to control and manage the operation of the Plan and shall have all authority necessary to accomplish these purposes, including, but not limited to, authority over 

interpretation of the terms of the Plan, the eligibility of any person to participate in the Plan and to receive benefits under the Plan, and any Plan Award payouts from the Plan. The Board's determinations and interpretations regarding the Plan shall be final, binding, and conclusive. 
		
	9.0
	Miscellaneous Conditions

		
	9.1
	Except as provided in Section 9.3, Participants must be employed by the Bank until the pay period in which the Plan Award payments are made, and such payment will be no later than 2 1⁄2 months after the three-year Performance Period ends, subject to Finance Agency approval, unless awards are deferred in accordance with Section 7.4.  

		
	9.2
	Employees of the Seattle Bank who are hired, transferred, or promoted into a Senior Officer position during a Performance Period may (i) be nominated for participation in the Plan in accordance with Section 3.1, if nominated by the President and approved by the Committee, and (ii) be eligible to receive a prorated award in accordance with Section 9.1 or 9.3.

		
	9.3
	In cases where a Participant retires on or after age 65 or achieving Rule of 70, dies or becomes Disabled while still employed by the Seattle Bank, or is involuntarily terminated without cause during the Performance Period may receive a prorated Plan Award (paid in cash, lump-sum), but only if the President nominates and the Board approves such action at the end of the Performance Period during which the above cases occur.  If the President does not make such a recommendation or the Board does not approve such action, the Participant will not be entitled to an award.  If a Participant becomes entitled to receive a prorated award under this section, the prorated Final Award will be paid to the Participant no later than 21⁄2 months following the end of the calendar year in which the above cases occurred (see also Section 9.1), subject to 6.6 and Finance Agency approval. If a Participant terminates service with the Seattle Bank for any reason other than retirement on or after age 65 or achieving Rule of 70, death or Disability while still employed by the Seattle Bank or involuntary termination without cause during the Performance Period, the Participant will not be eligible to receive an award under the Plan.  

		
	9.4
	The amount of any prorated award will be determined by dividing the number of months that an employee was a Participant in the Plan during the Performance Period by thirty-six and multiplying such quotient by the Plan Award. 

		
	9.5
	Notwithstanding any Plan provision to the contrary, mere participation in the Plan will not entitle a Participant to an award.

		
	9.6 
	The designation of an employee as a Participant in the Plan does not guarantee employment. Nothing in this Plan shall be deemed (i) to give any employee or Participant any legal or equitable rights against the Seattle Bank, except as expressly provided herein or provided by law; or (ii) to create a contract of employment with any employee or Participant, to obligate the Seattle Bank to continue the service of any employee or Participant, or to affect or modify any employee's or Participant's term of employment in any way.

		
	9.7
	The right of the Seattle Bank to discipline or discharge a Participant shall not be affected by any provision of this Plan.

		
	9.8
	All Plan Awards will be paid out in a lump sum in cash through regular payroll and will be subject to applicable payroll tax withholdings and other appropriate deductions. 

		
	9.9
	No Final Award received by a Participant shall be considered as compensation under any employee benefit plan of the Seattle Bank, except as otherwise determined by the Seattle Bank.

		
	9.10
	Final Awards will be made as soon as practical following the end of the Performance Period, but no later than 21⁄2 months following the calendar year that the Participant became entitled to the Final Award pursuant to Section 9.1, except as otherwise provided in Section 9.3.   

		
	9.11
	The Board has the right to revise, modify, or terminate the Plan in whole or in part at any time or for any reason, and the right to reduce any recommended award amount, for any reason, without the consent of any Participant.

		
	9.12
	Since no employee has a guaranteed right to any award under this Plan, any attempt by an employee to sell, transfer, assign, pledge, or otherwise encumber any anticipated award shall be void, and the Seattle Bank shall not be liable in any manner for or subject to the debts, contracts, liabilities, engagements or torts of any person who might anticipate an award under this program.

		
	9.13
	This Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Seattle Bank for payment of any award under this program.

		
	9.14
	The Plan shall be construed, regulated, and administered in accordance with the laws of the state of Washington, unless otherwise preempted by the laws of the United States. 

		
	9.15
	If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of the Plan, and the Plan shall be construed and enforced as if such provision had not been included herein.

		
	9.16 
	If a Participant dies before receiving his or her award, any amounts determined to be paid under this Plan shall be paid to the Participant's surviving spouse, if any, or if none, to the Participant's estate. The Seattle Bank's determination as to the identity of the proper payee of any amount under this Plan shall be binding and conclusive and payment in accordance with such determination shall constitute a complete discharge of all obligations on account of such amount. 

		
	9.17
	Claims and Appeals Procedures. A Participant (such Participant being referred to below as a “Claimant”) may deliver to the Committee a written claim for a determination with respect to any claim as to which the Committee has jurisdiction under this Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty days after such notice was received by the Claimant. The claim must state with particularity the determination desired by the Claimant.

The Committee shall consider a Claimant's claim within a reasonable time, but no later than ninety days after receiving the claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial ninety-day period. Upon reaching its decision, the Committee shall notify the Claimant in writing.

On or before sixty days after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant's duly authorized representative) may file with the Committee a written request for a review of the denial of the claim. The Committee shall render its decision on review promptly, in writing, and deliver it to the Claimant no later than sixty days after it receives the Claimant's written request for a review of the denial of the claim.
		
	9.18
	Any agreements or representations, oral or otherwise, express or implied, with respect to the subject matter of this Plan which is not contained herein will have no effect or enforceability.

FEDERAL HOME LOAN BANK OF SEATTLE
Bank Incentive Compensation Plan - Long-Term Executive Plan
APPENDIX A
2011 - 2013 Performance Period

Performance Period
The Performance Period described in this Appendix shall be January 1, 2011 through December 31, 2013.
Award Opportunity and Long-Term Performance Measures
The Award Opportunity, as a percentage of January 1, 2011 base salary, is provided in Table 1 and the Long-Term Performance Measures for the 2011 - 2013 Performance Period are in Table 2.

Table 1 - Award Opportunity
	
					
	Performance Level
	No Award
	Threshold
	Target
	Superior

	I - President/CEO
	0%
	20%
	40%
	60%

	II - Senior Officers (SVP and above)
	0%
	15%
	30%
	45%

Table 2 - Long-Term Performance Measures
	
			
	Threshold
	Target
	Superior

	Ability to repurchase stock
	Ability to redeem stock
	Ability to pay dividend

Other Key Objectives
In addition to the above Long-Term Performance measures, the Committee, taking into consideration the following Other Key Objectives, may reduce in part or in whole awards for all or select individuals: 
		
	1.
	Operational errors or omissions resulting in material revisions to the financial results, information submitted to the Finance Agency, or data used to determine incentive payouts.

		
	2.
	Untimely submission of information made to the SEC, OF and/or the Finance Agency.

		
	3.
	Insufficient progress made in the timely remediation of examination findings.

		
	4.
	Ineffective management of risk and safety and soundness considerations. All significant operational decisions made by management that fall outside the risk management thresholds established in the risk management policy overview approved by the Board will be considered ineffective management and will result in reduced reward payments. The Board approved risk management thresholds are documented in the risk management policy overview approved by the Board.  

		
	5.
	Participant receives written warning for performance or misconduct or remains on a performance plan.

		
	6.
	Unsafe/Unsound practice in participant's area of responsibility.        

		
	7.
	Determination of extraordinary circumstances. 

		
	8.
	Any input received from the FHFA regarding its observations regarding the performance period.mm11-2811_8ke101.htm

 

 

EXHIBIT 10.1

 

AMENDMENT NO. 2, dated as of November 28, 2011 (this “Amendment”), to the Credit Agreement (as defined below) among Gentiva Health Services, Inc., a Delaware Corporation, as Borrower (the “Borrower”), the Lenders party thereto and Bank of America, N.A., as Administrative Agent.

 

RECITALS

 

WHEREAS, the Borrower, the Lenders party thereto from time to time and Bank of America, N.A., as Administrative Agent (the “Administrative Agent”), are party to that certain Credit Agreement dated as of August 17, 2010 and as amended on March 9, 2011 (as may be further amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).

 

WHEREAS, the Borrower desires to modify the definition of “Consolidated EBITDA” contained in the Credit Agreement.

 

WHEREAS, the Borrower desires to reset the maximum Consolidated Leverage Ratio for the fourth fiscal quarter of 2011 contained in Section 7.11(b) of the Credit Agreement.

 

WHEREAS, Section 10.01 of the Credit Agreement provides that the Borrower may, with the consent of the Required Lenders, amend the Loan Documents.

 

NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

ARTICLE I

 

Amendment

 

SECTION 1.01. Defined Terms.  Capitalized terms used herein (including in the recitals hereto) and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.  The rules of construction specified in Section 1.02 of the Credit Agreement also apply to this Amendment.

 

SECTION 1.02. Amendment of Credit Agreement.  The Credit Agreement is hereby amended effective as of the Second Amendment Effective Date (as defined herein) as follows:

 

(i) Section 1.01 of the Credit Agreement is hereby amended by inserting the following new definition in the correct alphabetical order:

 

“Second Amendment” means the Second Amendment to this Agreement dated as of November 28, 2011, among the Borrower, the Lenders party thereto and the Administrative Agent.

 

  

  

  

(ii) The definition of “Consolidated EBITDA” set forth in Section 1.01 of the Credit Agreement is hereby amended by:

 

(I) replacing clauses (iv) and (v) in their entirety with the following:

 

“(iv) extraordinary, unusual or non−recurring charges or losses reducing such Consolidated Net Income related solely to the settlement of litigation existing on the Closing Date with respect to the Acquired Business in an aggregate amount not to exceed $15,000,000 in any Measurement Period; provided that, solely for purposes of determining compliance with Section 7.11 of this Agreement for the Measurement Period ending December 31, 2011 (and for no Measurement Period thereafter or other provision of this Agreement that requires compliance with Section 7.11), such aggregate amount may exceed $15,000,000 but shall not exceed $25,000,000, (v) other extraordinary, unusual or nonrecurring cash charges reducing Consolidated Net Income in an aggregate amount not to exceed (1) the amounts set forth on Schedule 1.01 for the periods set forth thereon and (2) exclusive of amounts set forth in subclause (1) (A) $35,000,000 solely for purpose of determining compliance with Section 7.11 of this Agreement for the Measurement Period ending December 31, 2011 (and for no Measurement Period thereafter or other provision of this Agreement that requires compliance with Section 7.11), provided, that no more than $10,000,000 of such amount is related to other extraordinary, unusual or nonrecurring cash charges reducing Consolidated Net Income incurred during the first three fiscal quarters of such Measurement Period and (B) $10,000,000 for each Measurement Period beginning after December 31, 2011,”

 

(II) replacing clause (a)(xii) in its entirety with the following:

 

“(xii) any fees, expenses, prepayment premium or other costs paid in connection with the First Refinancing Amendment or the Second Amendment”

 

(III) deleting the word “and” from the end of clause “(xi)” and

 

(IV) inserting at the end of clause (xii), the following:

“, and (xiii) solely for purposes of determining compliance with Section 7.11 of this Agreement for the Measurement Period ending December 31, 2011 (and for no Measurement Period thereafter or other provision of this Agreement that requires compliance with Section 7.11), charges or losses reducing Consolidated Net Income incurred in connection with the closure of certain facilities and branch offices of the Borrower and its subsidiaries in the fourth fiscal quarter of 2011 in an aggregate amount not to exceed $5,000,000,”

 

(iii) Sections 7.03 and 7.06 of the Credit Agreement are hereby amended by inserting the following at the end of the respective covenant:

 

“Notwithstanding anything in this Agreement to the contrary, the Borrower shall not nor shall it permit any Subsidiary to, directly or indirectly, declare or pay any cash dividend or make any cash distribution on or in respect of the

 

  

- 2 -

  

Borrower’s Equity Interest or purchase for cash or otherwise acquire for cash any Equity Interest of the Borrower for the period beginning on the Second Amendment Effective Date through and including March 1, 2012.”

 

(iv) Clause (b) of Section 7.11 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio at any time during any period of four fiscal quarters of the Borrower set forth below to be greater than the ratio set forth below opposite such period:

 

	 	
Four Fiscal Quarters Ending

	
Maximum Consolidated

Leverage Ratio

	 
	 	
Closing Date through the fourth fiscal quarter of 2011

	
4.75 to 1.00

	 
	 	
first fiscal quarter of 2012 through third fiscal quarter of 2012

	
4.50 to 1.00

	 
	 	
fourth fiscal quarter of 2012 through third fiscal quarter of 2013

	
3.75 to 1.00

	 
	 	
fourth fiscal quarter of 2013 and thereafter

	
3.00 to 1.00

	 

 

SECTION 1.03. Amendment Effectiveness.  Section 1.02 of this Amendment shall become effective as of the first date (the “Second Amendment Effective Date”) on which the following conditions have been satisfied:

 

(a) The Administrative Agent (or its counsel) shall have received from (i) the Borrower, (ii) the Required Lenders and (iv) the Administrative Agent, either (x) counterparts of this Amendment signed on behalf of such parties or (y) written evidence reasonably satisfactory to the Administrative Agent (which may include facsimile or other electronic transmissions of signed signature pages) that such parties have signed counterparts of this Amendment.

 

(b) The Administrative Agent shall have received from the Borrower a consent fee payable in Dollars for the account of each Lender that has returned an executed counterpart to this Amendment to the Administrative Agent at or prior to 4:00 p.m., New York City time on Tuesday, November 22, 2011 (the “Consent Deadline” and each such Lender, a “Consenting Lender”) equal to 0.25% of the aggregate principal amount of the Term Loans, Revolving Credit Loans or Revolving Credit Commitments, as applicable, held by such Consenting Lender as of the Consent Deadline.

 

(c) The Borrower shall have made an optional prepayment of Term Loans pursuant to Section 2.05(a) of the Credit Agreement in an aggregate principal amount of $20.0 million and such prepayment shall have been directed by the Borrower to be ap-

 

  

- 3 -

  

plied ratably between the Term A Facility and the Term B Facility to the scheduled amortization of each such Term Facility as direct by the Borrower.

 

(d) Each Loan Party shall have entered into a reaffirmation agreement, in form and substance reasonably satisfactory to the Administrative Agent, and Schedule I hereto lists each Loan Party.

 

(e) The Administrative Agent shall have received an officers’ certificate from the Borrower including a representation by a Responsible Officer that (i) no Default or Event of Default exists and is continuing on the Second Amendment Effective Date and (ii) all representations and warranties contained in the Credit Agreement are true and correct in all material respects on and as of the Second Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date (provided that representations and warranties that are qualified by materiality shall be true and correct in all respects).

 

(f) The Borrower shall have paid all reasonable and documented fees and expenses owed the Administrative Agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated in connection with this Amendment and the transactions contemplated hereby, to the extent an invoice has been provided to the Borrower at least two Business Days prior to the Second Amendment Effective Date, including the reasonable fees, charges and disbursements of Cahill Gordon & Reindel LLP, counsel for the Administrative Agent, and Winston & Strawn LLP, special healthcare counsel for the Administrative Agent.

 

The Administrative Agent shall notify the Borrower and the Required Lenders of the Second Amendment Effective Date and such notice shall be conclusive and binding.

 

SECTION 1.04. Representations and Warranties.

 

(a) To induce the other parties hereto to enter into this Amendment, the Borrower represents and warrants to each of the Lenders and the Administrative Agent that, as of the Second Amendment Effective Date and after giving effect to the transactions and amendments to occur on the Second Amendment Effective Date, this Amendment has been duly authorized, executed and delivered by the Borrower and constitutes, and the Credit Agreement, as amended hereby on the Second Amendment Effective Date, will constitute, legal, valid and binding obligations of the Loan Parties, enforceable against each of the Loan Parties in accordance with their terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles of equity and the implied covenant of good faith and fair dealing.

 

(b) The representations and warranties of each Loan Party set forth in the Loan Documents are, after giving effect to this Amendment, true and correct in all material respects on and as of the Second Amendment Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date in which case they shall be true and correct in all material respects as of such earlier date (provided that representations and warranties that are qualified by materiality shall be true and correct in all respects).

 

  

- 4 -

  

 

(c) After giving effect to this Amendment and the transactions contemplated hereby, no Default or Event of Default has occurred and is continuing on the Second Amendment Effective Date.

 

SECTION 1.05. Effect of Amendment.

 

(a) Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of, the Lenders or the Agents under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to establish a precedent for purposes of interpreting the provisions of the Credit Agreement or entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.  This Amendment shall apply to and be effective only with respect to the provisions of the Credit Agreement and the other Loan Documents specifically referred to herein.  Each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Loan Document is hereby ratified and re-affirmed in all respects and shall continue in full force and effect.  The Borrower reaffirms its obligations under the Loan Documents to which it is a party and the validity of the Liens granted by it pursuant to the Collateral Documents.

 

(b) On and after the Second Amendment Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import, and each reference to the Credit Agreement, “thereunder,” “thereof,” “therein” or words of like import in any other Loan Document, shall be deemed a reference to the Credit Agreement, as amended hereby.  This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.

 

SECTION 1.06. Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of New York. The provisions of Sections 10.14 and 10.15 of the Credit Agreement shall apply to this Amendment to the same extent as if fully set forth herein.

 

SECTION 1.07. Costs and Expenses.  To the extent contemplated by Section 10.04 of the Credit Agreement, the Borrower agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Amendment and the transactions contemplated hereby, including the reasonable fees, charges and disbursements of Cahill Gordon & Reindel llp, counsel for the Administrative Agent and Winston & Strawn LLP, special healthcare counsel for the Administrative Agent.

 

SECTION 1.08. Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.  Delivery of any executed counterpart of a signature

 

  

- 5 -

  

page of this Amendment by facsimile transmission or other electronic imaging means shall be effective as delivery of a manually executed counterpart hereof.

 

SECTION 1.09. Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their officers as of the date first above written.

 

	 	
GENTIVA HEALTH SERVICES, INC.

	 	  	  
	 	  	  
	 	
By:

	
/s/  Eric Slusser

	 	  	
Name:

	
Eric Slusser

	 	  	
Title:

	
Executive Vice President and

Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

S-1

  

	 	
BANK OF AMERICA, N.A., individually and as

Administrative Agent, Swing Line Lender and

L/C Issuer

	 	  	  
	 	  	  
	 	
By:

	  
	 	  	
Name:

	  
	 	  	
Title:

	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

S-2

  

 

	 	

_____________________________________,

as a Lender

	 	  	  
	 	  	  
	 	
By:

	  
	 	  	
Name:

	  
	 	  	
Title:

	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

S-3

  

The undersigned Revolving Credit Lender hereby irrevocably and unconditionally approves the Amendment.

 

	 	

_____________________________________,

as a Revolving Credit Lender (type name of the legal entity)

	 	  	  
	 	  	  
	 	
By:

	  
	 	  	
Name:

	  
	 	  	
Title:

	  

 

 

	 	

[If a second signature is necessary:

	 	  	  
	 	  	  
	 	
By:

	  
	 	  	
Name:

	  
	 	  	
Title:]

	  

 

 

 

 

 

 

 

 

 

 

  

S-4

  

SCHEDULE I

 

Reaffirmation Agreement Parties

Access Home Health of Florida, Inc.

Capital CareResources of South Carolina, Inc.

Capital CareResources, Inc.

Capital Health Management Group, Inc.

CareNation, Inc.

Chattahoochee Valley Home Care Services, Inc.

Chattahoochee Valley Home Health, Inc.

CHMG Acquisition Corp.

CHMG of Atlanta, Inc.

CHMG of Griffin, Inc.

Eastern Carolina Home Health Agency, Inc.

Family Hospice, Ltd.

FHI GP, Inc.

FHI Health Systems, Inc.

FHI LP, Inc.

FHI Management, Ltd.

Gentiva Certified Healthcare Corp.

Gentiva Health Services (Certified), Inc.

Gentiva Health Services (USA) Inc.

Gentiva Health Services Holding Corp.

Gentiva Rehab Without Walls, LLC

Gentiva Services of New York, Inc.

Gilbert's Home Health Agency, Inc.

Gilbert's Hospice Care of Mississippi, LLC

Gilbert's Hospice Care, LLC

Healthfield Home Health, Inc.

Healthfield Hospice Services, Inc.

Healthfield of Southwest Georgia, Inc.

Healthfield of Statesboro, Inc.

Healthfield of Tennessee, Inc.

Healthfield Operating Group, Inc.

Healthfield, Inc.

Home Health Care Affiliates of Central Mississippi, L.L.C.

Home Health Care Affiliates of Mississippi, Inc.

Home Health Care Affiliates, Inc.

Home Health Care of Carteret County, Inc.

Horizon Health Network LLC

Mid-South Home Care Services, Inc.

Mid-South Home Care Services, LLC

Mid-South Home Health Agency, Inc.

Mid-South Home Health Agency, LLC

Mid-South Home Health of Gadsden, Inc.

 

 

 

  

  

  

 

 

New York Healthcare Services, Inc.

Odyssey Healthcare Austin, LLC

Odyssey Healthcare Detroit, LLC

Odyssey Healthcare Fort Worth, LLC

Odyssey HealthCare GP, LLC

Odyssey HealthCare Holding Company

Odyssey HealthCare LP, LLC

Odyssey HealthCare Management, LP

Odyssey HealthCare of Augusta, LLC

Odyssey HealthCare of Collier County, Inc.

Odyssey Healthcare of Flint, LLC

Odyssey HealthCare of Hillsborough County, Inc.

Odyssey HealthCare of Manatee County, Inc.

Odyssey HealthCare of Marion County, Inc.

Odyssey HealthCare of Northwest Florida, Inc.

Odyssey Healthcare of Pinellas County, Inc.

Odyssey Healthcare of St. Louis, LLC

Odyssey HealthCare Operating A, LP

Odyssey HealthCare Operating B, LP

Odyssey Healthcare, Inc.

OHS Service Corp.

PHHC Acquisition Corp.

QC-Medi New York, Inc.

Quality Care-USA, Inc.

Quality Managed Care, Inc.

Tar Heel Health Care Services, Inc.

Tar Heel Staffing, Inc.

The Healthfield Group, Inc.

Total Care Home Health of Louisburg, Inc.

Total Care Home Health of North Carolina, Inc.

Total Care Home Health of South Carolina, Inc.

Total Care Services, Inc.

Van Winkle Home Health Care, Inc.

Vista Hospice Care, Inc.

VistaCare of Boston, LLC

VistaCare USA, Inc.

VistaCare, Inc.

Wiregrass Hospice Care, Inc.

Wiregrass Hospice LLC

Wiregrass Hospice of South Carolina, LLC

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