Document:

ex101.htm

EXHIBIT 10.1

EXECUTION COPY

 

AMENDMENT NO. 1 and AGREEMENT dated as of June 30, 2010 (this “Amendment”), to the CREDIT AGREEMENT dated as of April 19, 2007 (as amended, supplemented or otherwise modified through the date hereof, the “Credit Agreement”), among SUN HEALTHCARE GROUP, INC., a Delaware corporation (the “Borrower”), the Lenders (as defined in Article I of the Credit Agreement), and CREDIT SUISSE AG, as administrative agent (in such capacity, the “Administrative Agent”) and as collateral agent for the Lenders.

 

A.  Pursuant to the Credit Agreement, the Lenders have extended, and have agreed to extend, credit to the Borrower, in each case pursuant to the terms and subject to the conditions set forth in the Credit Agreement.

 

B.  The Borrower has requested that certain provisions of the Credit Agreement be amended as provided herein.

 

C.  The Required Lenders, on the terms and subject to the conditions set forth herein, are willing so to amend the Credit Agreement.

 

D.  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Credit Agreement.

 

Accordingly, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.  Reduction of PF L/C Commitments.  On and subject to the occurrence of the Amendment Effective Date (as defined below), 1)the aggregate amount of the PF L/C Commitments shall be reduced by $25,000,000 (the “PF L/C Commitment Reduction Amount”), 2)the Letters of Credit enumerated on Schedule I hereto (the “Converted Letters of Credit”) shall be deemed to be RF Letters of Credit issued on the Amendment Effective Date, 3)the Administrative Agent shall return to each PF Lender from the Credit-Linked Deposit Account its PF Pro Rata Percentage of the PF L/C Commitment Reduction Amount, together with accrued and unpaid interest therein at the rate provided therefor in Section 2.23(l)(ii) of the Credit Agreement to but excluding the Amendment Effective Date, and 4)the Borrower shall pay to the Administrative Agent, for the account of the PF Lenders, all accrued and unpaid PF L/C Commitment Fees in respect of the Converted Letters of Credit at the rate provided therefor in Section 2.05(c) of the Credit Agreement to but excluding the Amendment Effective Date.  The Lenders hereby waive the requirements in Section 2.09(b) of the Credit Agreement that the Borrower give three Business Days’ notice to the Administrative Agent to effect such reduction.  All payments made pursuant to this Section 1 shall be made without premium or penalty, subject to the Borrower’s obligations (if any) in respect of breakage costs under Section 2.16 of the Credit Agreement.

  

 

  

 

SECTION 2.  Agreement to Prepay Term Loans.  On or prior to December 31, 2010, the Borrower shall prepay Term Loans pursuant to Section 2.12 of the Credit Agreement in an aggregate principal amount equal to the greater of (A) $0 and (B) $25,000,000 minus the aggregate principal amount of Term Loans prepaid  pursuant to Section 2.12 or 2.13(c) of the Credit Agreement after the Amendment Effective Date and prior to the date of such prepayment, together with accrued and unpaid interest on the amount so prepaid to but excluding the prepayment date.  Failure to make such prepayment on or prior to December 31, 2010 shall constitute an Event of Default under clause (b) of Article VII of the Credit Agreement.

 

SECTION 3.  Amendments to the Credit Agreement.  5)Section 1.01 of the Credit Agreement is hereby amended by inserting the following defined terms in the appropriate alphabetical order therein:

 

“First Amendment Effective Date” shall mean June 30, 2010.

 

“Separation Transaction” shall mean the proposed separation transaction described in the May 24, 2010 press release of the Borrower entitled “Sun Healthcare Group, Inc. Announces Plan to Separate its Operating and Real Property Assets; Adopts a Stockholder Rights Plan”.

 

(b)  The definition of the term “Alternate Base Rate” set forth in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Alternate Base Rate” shall mean, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (c) the Adjusted LIBO Rate in effect on such day for a one-month Interest Period commencing on such day plus 1%.  If the Administrative Agent shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate or the Adjusted LIBO Rate for any reason, including the inability or failure of the Administrative Agent to obtain sufficient quotations in accordance with the terms of the definition of Federal Funds Effective Rate, the Alternate Base Rate shall be determined without regard to clause (b) or (c), as applicable, of the preceding sentence until the circumstances giving rise to such inability no longer exist.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective on the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, as the case may be.

 

(c)  The definition of the term “Applicable Percentage” set forth in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Applicable Percentage” shall mean, (A) for any day on or before December 31, 2010 (a) with respect to any Eurodollar Term Loan, 3.00% per annum, (b) with respect to any ABR Term Loan, 2.00% per annum, and (c) (i) with respect to any Eurodollar 

  

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Revolving Loan or ABR Revolving Loan, the applicable percentage set forth below under the caption “Pre 12/31/2010 Eurodollar Spread—Revolving Loans” or “Pre 12/31/2010 ABR Spread—Revolving Loans”, as the case may be, and (ii) with respect to the Revolving Credit Commitment Fee, the applicable rate set forth below under the caption “Pre 12/31/2010 Revolving Credit Commitment Fee Rate”, in each case based upon the Total Leverage Ratio as of the relevant date of determination:

	
Total Leverage

Ratio

	
Pre 12/31/2010 

Eurodollar Spread—

Revolving 

Loans

	
Pre 12/31/2010 

ABR Spread—

Revolving 

Loans

	
Pre 12/31/2010 

Revolving 

Credit 

Commitment 

Fee Rate

 

	
Category 1

 

Greater than 

4.50 to 1.00

	
3.00%

	
2.00%

	
0.50%

	
Category 2

 

Less than or 

equal to 4.50 to 

1.00 and greater than 

3.50 to 1.00

	
2.75%

	
1.75%

	
0.50%

	
Category 3

 

Less than or 

equal to 3.50 to 

1.00

	
2.50%

	
1.50%

	
0.375%

and (B) for any day after December 31, 2010 (a) with respect to any Eurodollar Term Loan, 4.00% per annum, (b) with respect to any ABR Term Loan, 3.00% per annum, and (c) (i) with respect to any Eurodollar Revolving Loan or ABR Revolving Loan, the applicable percentage set forth below under the caption “Post 12/31/2010 Eurodollar Spread—Revolving Loans” or “Post 12/31/2010 ABR Spread—Revolving Loans”, as the case may be, and (ii) with respect to the Revolving Credit Commitment Fee, the applicable rate set forth below under the caption “Post 12/31/2010 Revolving Credit Commitment Fee Rate”, in each case based upon the Total Leverage Ratio as of the relevant date of determination:

 

 

	
Total Leverage

Ratio

	
Post 

12/31/2010 

Eurodollar 

Spread—

 

	
Post 

12/31/2010 

ABR Spread—

Revolving

	
Post

12/31/2010 

Revolving 

Credit 

  

3

  

	
 

	
Revolving 

Loans

	
Loans

	
Commitment 

Fee Rate

 

	
Category 1

 

Greater than 

4.50 to 1.00

	
4.00%

	
3.00%

	
0.50%

	
Category 2

 

Less than or 

equal to 4.50 to 

1.00 and 

greater than

3.50 to 1.00

	
3.75%

	
2.75%

	
0.50%

	
Category 3

 

Less than or 

equal to 3.50 to 

1.00

	
3.50%

	
2.50%

	
0.375%

“Revolving Credit Commitment Fee Rate” shall mean either the Pre 12/31/2010 Revolving Credit Commitment Fee Rate or the Post 12/31/2010 Revolving Credit Commitment Fee Rate, as applicable.

 

Each change in the Applicable Percentage resulting from a change in the Total Leverage Ratio shall be effective with respect to all Loans and Letters of Credit outstanding on and after the date of delivery to the Administrative Agent of the financial statements and certificates required by Section 5.04(a) or (b) and Section 5.04(c), respectively, indicating such change until the date immediately preceding the next date of delivery of such financial statements and certificates indicating another such change.  Notwithstanding the foregoing, (i) at any time during which the Borrower has failed to deliver the financial statements and certificates required by Section 5.04(a) or (b) and Section 5.04(c), respectively, or (ii) at any time after the occurrence and during the continuance of an Event of Default, the Total Leverage Ratio shall be deemed to be in Category 1 for purposes of determining the Applicable Percentage.

 

(d)  The definition of the term “Consolidated EBITDA” set forth in Section 1.01 of the Credit Agreement is hereby amended by deleting the words “and (viii)” and substituting therefor the words “(viii) any non-recurring fees, costs or expenses for such period in an aggregate amount for all periods not to exceed $15,000,000 incurred in connection with the Separation Transaction (whether or not such transaction is consummated), (ix) any non-recurring fees, costs or expenses for such period incurred in connection with an investment permitted by Section 6.04(l) or a Permitted Acquisition to the extent such fees, costs or expenses (A) would have been 

  

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permitted to be capitalized pursuant to GAAP as in effect on the Closing Date and (B) are taken into account in determining the amount of such investment under Section  6.04(l) or the amount of consideration in respect of a Permitted Acquisition under Section 6.04(g)(iv)(D) and (x)”.

 

(e)  Section 2.23(b) of the Credit Agreement is hereby amended by deleting the amount “$15,000,000” set forth therein and substituting therefor the amount “$40,000,000”.

 

(f)  Section 6.04(g)(iv)(D) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(iv)(D) except to the extent consisting of, or financed with the proceeds of a substantially contemporaneous issuance of, Qualified Capital Stock of the Borrower, the total consideration paid in connection with such acquisition and any other acquisitions consummated on or after the First Amendment Effective Date pursuant to this Section 6.04(g) (including any Indebtedness of the Acquired Entity that is assumed by the Borrower or any Subsidiary following such acquisition and any payments following such acquisition pursuant to earn-out provisions or similar obligations) shall not in the aggregate exceed the sum of (x) $50,000,000 and (y) the portion, if any, of the then available amount that may be invested pursuant to Section 6.04(l)”.

 

(g)  Section 6.04(l) of the Credit Agreement is hereby amended by inserting immediately after the words “so long as the aggregate amount invested, loaned or advanced pursuant to this paragraph (l)” the words “(or pursuant to Section 6.04(g) utilizing amounts available to be invested pursuant to this paragraph (l)) on or after the First Amendment Effective Date” and (ii) inserting before the period at the end thereof the words “on and after the First Amendment Effective Date”.

 

(h)  Section 6.06(a) of the Credit Agreement is hereby amended by deleting the word “and” in clause (ii) thereof and substituting therefor a comma and inserting before the period at the end thereof the words “and (iii)  the declaration of, agreement to declare or incurrence of any obligation to declare or make (but not the making of), directly or indirectly, Restricted Payments in connection with the Separation Transaction.”

 

(i)   Section 6.10 of the Credit Agreement is hereby amended by deleting the last sentence thereof and substituting therefor the following: “The amount of permitted Capital Expenditures set forth above in respect of any fiscal year commencing with the fiscal year ending on December 31, 2010, shall be increased by an amount equal to 50%  of the unused permitted Capital Expenditures for the immediately preceding fiscal year (including the portion thereof (if any) of the unused permitted Capital Expenditures carried forward to such preceding fiscal year pursuant to this sentence)”.

 

(j)  Section 6.12 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

  

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SECTION 6.12.  Maximum Total Leverage Ratio.  Permit the Total Leverage Ratio as of the last day of each fiscal quarter ending on a date or during a period set forth below to be greater than the ratio set forth opposite such period below:

 

	
Period

	
Ratio

 

	
July 1, 2007 through December 31, 2007

	
6.25 to 1.00

	
January 1, 2008 through December 31, 2008

	
5.00 to 1.00

	
January 1, 2009 through December 31, 2009

	
4.25 to 1.00

	
January 1, 2010 through March 31, 2010

	
3.50 to 1.00

	
April 1, 2010 through September 30, 2011

	
4.00 to 1.00

	
October 1, 2011 through December 31, 2011

	
3.75 to 1.00

	
Thereafter

	
3.00 to 1.00

(k)  Section 6.13 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

SECTION 6.13.  Maximum Senior Leverage Ratio.  Permit the Senior Leverage Ratio as of the last day of each fiscal quarter ending on a date or during a period set forth below to be greater than the ratio set forth opposite such period below:

 

	
Period

	
Ratio

 

	
July 1, 2007 through December 31, 2007

	
4.50 to 1.00

	
January 1, 2008 through December 31, 2008

	
3.50 to 1.00

	
January 1, 2009 through December 31, 2009

	
2.75 to 1.00

	
January 1, 2010 through June 30, 2011

	
2.50 to 1.00

	
July 1, 2011 through December 31, 2011

	
2.25 to 1.00

	
Thereafter

	
2.00 to 1.00

(l)  Article IX of the Credit Agreement is hereby amended by adding a new Section 9.18 at the end of such Article to read in its entirety as follows:

 

SECTION 9.18  Effect of Certain Inaccuracies.  In the event that any financial statement or certificate delivered pursuant to Section 5.04(a), (b) or (c) is inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Percentage for any period (an “Applicable Period”) than the Applicable Percentage actually used to determine interest rates and Fees for such Applicable Period, then (a) the Borrower shall promptly deliver to the Administrative Agent a corrected financial statement and a corrected certificate for such Applicable Period, (b) the Applicable Percentage shall be determined based on the corrected certificate for such Applicable Period, and (c) the Borrower shall promptly pay to the Administrative Agent (for the account of the Lenders during the Applicable Period or their successors and assigns) the accrued additional interest and/or Fees owing as a result of such increased Applicable Percentage for such Applicable Period.  This Section 9.18 

  

6

  

shall not limit the rights of the Administrative Agent or the Lenders under Section 2.07 or Article VII, and shall survive the termination of this Agreement.

 

SECTION 4.  Amendment Fee.  In consideration of the agreements of the Lenders contained in this Amendment, the Borrower agrees to pay to each Lender that unconditionally executes and delivers a copy of this Amendment to the Administrative Agent (or its counsel) at or prior to noon, New York City time, on June 29, 2010, through the Administrative Agent, an amendment fee (the “Amendment Fee”) in an amount equal to 0.25% of the sum of the aggregate principal amount outstanding of such Lender’s Term Loans, PF L/C Commitments (after giving effect to the reduction contemplated by Section 1 hereof) and Revolving Credit Commitments (whether used or unused) as of such date.  The Amendment Fee shall be payable in immediately available funds on, and subject to the occurrence of, the Amendment Effective Date (as defined below).

 

SECTION 5.  Representations and Warranties.  To induce the other parties hereto to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent, the Collateral Agent, the Issuing Bank and each of the Lenders that:

 

(a)  This Amendment has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms.

 

(b)  After giving effect to this Amendment, the representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document are true and correct in all material respects on and as of the date hereof with the same effect as though made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date.

 

(c)  After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.

 

SECTION 6.  Effectiveness.  This Amendment shall become effective as of the date set forth above (and, for the avoidance of doubt, the changes made to the Applicable Percentage shall become effective as of such date) on the date (the “Amendment Effective Date”) on which the following conditions shall be satisfied:

 

(a)  The Administrative Agent shall have received counterparts of this Amendment that, when taken together, bear the signatures of the Borrower, the Subsidiary Guarantors and the Required Lenders.

 

(b)  The Administrative Agent shall have received the Amendment Fee.

 

(c)  The representations and warranties contained in Section 5 shall be true and correct.

 

SECTION 7.  Effect of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of 

  

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or otherwise affect the rights and remedies of the Lenders or the Administrative Agent 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 entitle the Borrower 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.  After the date hereof, any reference to the Credit Agreement shall mean the Credit Agreement as modified hereby.  This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.

 

SECTION 8.  Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 9.  Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page to this Amendment by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Amendment.

 

SECTION 10.  Notices.  All notices hereunder or in connection herewith shall be given in accordance with the provisions of Section 9.01 of the Credit Agreement.

 

SECTION 11.  Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

SECTION 12.  Subsidiary Guarantors.  Each of the Subsidiary Guarantors hereby acknowledges receipt of, consents to the terms of this Amendment and reaffirms its obligations under all Loan Documents to which it is a party.

  

8

  

 

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

 

	 
	
 

	 	 
	   

SUN HEALTHCARE GROUP, INC.,

 

	     by	  
	 	 
	  	
/s/ L. Bryan Shaul

	  	
Name: L. Bryan Shaul

	  	
Title: Executive Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
EACH SUBSIDIARY GUARANTOR 

LISTED ON SCHEDULE II HERETO,

 

	
by

	  	
/s/ Brandi Riddle

	  	
Name:  Brandi Riddle

	  	
Title:  Treasurer

 

 

 

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

 

  

  

  

  

	
CREDIT SUISSE AG, CAYMAN 

ISLANDS BRANCH, individually and as 

Administrative Agent,

 

	
by

	  	
/s/ Robert Hetu

	  	
Name:   Robert Hetu

	  	
Title:  Managing Director

	
by

	  	
/s/ Kevin Buddhdew

	  	
Name:  Kevin Buddhdew

	  	
Title:  Associate

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

  

 

 

	 
	
SIGNATURE PAGE TO AMENDMENT NO. 1

DATED AS OF THE DATE FIRST WRITTEN

ABOVE, TO THE SUN HEALTHCARE GROUP,

INC. CREDIT AGREEMENT DATED AS OF

APRIL 19, 2007.

 

Pioneer Short Term Income Fund

Pioneer Strategic Income Fund

Pioneer Floating Rate Fund

Pioneer Bond Fund

Pioneer Diversified High Income Trust

Pioneer Institutional Solutions-Credit Opportunities

Met Investors Series Trust - Pioneer

     Strategic Income Portfolio

 

By:  Pioneer Investment Management, Inc.

          Its advisor

 

	
by

	  	
/s/ Margaret C. Begley

	  	
Name:   Margaret C. Begley

	  	
Title:  Assistant Secretary and Associate General Counsel

 

	
Stichting Pensioenfonds voor Huisartsen

Stichting Pensioenfonds Medische Specialisten

 

By:  Pioneer Institutional Management, Inc.

          Its advisor

 

	
by

	  	
/s/ Margaret C. Begley

	  	
Name:   Margaret C. Begley

	  	
Title:  Assistant Secretary and Associate General Counsel

 

 

	
LANDMARK IX CDO LTD

By: Aladdin Capital Management LLC, as Lender

 

	
by

	  	
/s/ Thomas E. Bancroft

	  	
Name:   Thomas E. Bancroft

	  	
Title:  Designated Signatory

	
Aladdin Flexible Investment Fund SPC for Account of Series 2007-01

By: Aladdin Capital Management LLC, as Lendor

 

	
by

	  	
/s/ Thomas E. Bancroft

	  	
Name:   Thomas E. Bancroft

	  	
Title:  Designated Signatory

 

	
Aladdin Flexible Investment Fund SPC for Account of Series 2008-01

By: Aladdin Capital Management LLC, as Lender

 

	
by

	  	
/s/ Thomas E. Bancroft

	  	
Name:   Thomas E. Bancroft

	  	
Title:  Designated Signatory

	
Aladdin Flexible Investment Fund SPC for Account of Series 2008-02

By: Aladdin Capital Management LLC, as Lendor

 

	
by

	  	
/s/ Thomas E. Bancroft

	  	
Name:   Thomas E. Bancroft

	  	
Title:  Designated Signatory

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

  

 

	
 

AIMCO CLO, Series 2005-A

 

	
by

	  	
/s/ Chris Goergen

	  	
Name:   Chris Goergen

	  	
Title:  Authorized Signatory

	
by

	  	
/s/ Marvin L. Lutz, III

	  	
Name:  Marvin L. Lutz, III

	  	
Title:  Authorized Signatory

	
 

AIMCO CLO, Series 2006-A

 

	
by

	  	
/s/ Chris Goergen

	  	
Name:   Chris Goergen

	  	
Title:  Authorized Signatory

	
by

	  	
/s/ Marvin L. Lutz, III

	  	
Name:  Marvin L. Lutz, III

	  	
Title:  Authorized Signatory

	
 

CIBC Inc.

 

	
by

	  	
/s/ Caroline Adams

	  	
Name:   Caroline Adams

	  	
Title:  CIBC Inc. Agent

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

CANARAS SUMMIT CLO LTD

By: Canaras Capital Managment LLC

As Sub-Investment Adviser

 

 

	
by

	  	
/s/ Benjamin S. Steger

	  	
Name:   Benjamin S. Steger, CFA®

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

Green Island CBNA Loan Funding LLC

 

	
by

	  	
/s/ Adam Kaiser

	  	
Name:   Adam Kaiser

	  	
Title:  ATTORNEY-IN-FACT

	
by

	  	
NA

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

	
 

CREDIT SUISSE LOAN FUNDING LLC

 

	
by

	  	
/s/ Robert Franz

	  	
Name:   Robert Franz

	  	
Title:  Managing Director

	
by

	  	
/s/ David Fitzgerald

	  	
Name:  David Fitzgerald

	  	
Title:  Authorized Signatory

	
 

Atrium V

By: Credit Suisse Alternative Capital, Inc., as collateral manager

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Castle Garden Funding

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

	
 

COMMONWEALTH OF PENNSYLVANIA TREASURY DEPARTMENT

By: Credit Suisse Alternative Capital, Inc., as its investment advisor

 

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

CS Senior Loan Fund US

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

 

	
 

Credit Suisse Syndicated Loan Fund

By: Credit Suisse Alternative Capital, Inc., as Agent  Subsidiary for

Credit Suisse Asset Management Structure Limited, the Responsible Entity

for Credit Suisse Syndicated Loan Fund

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

CSAM Funding I

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

CSAM Funding III

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

CSAM Funding IV

 

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

Madison Park Funding II

By: Credit Suisse Alternative Capital, Inc., as collateral manager

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

	
 

Madison Park Funding III

By: Credit Suisse Alternative Capital, Inc., as collateral manager

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

Madison Park  Funding V

By: Credit Suisse Alternative Capital, Inc., as collateral manager

 

	
by

	  	
/s/ Thomas Flannery

	  	
Name:   Thomas Flannery

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Duane Street CLO IV, Ltd.

By: DiMalo Ahmed Capital LLC

As Collateral Manager

 

	
by

	  	
/s/ Paul Travers

	  	
Name:   Paul Travers

	  	
Title:  Principal Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

AURUM CLO 2002-1 Ltd.

By: Deutsche Investment Management Americas, Inc.

(as successor in interest to Deutsche Asset Management, Inc.),

As Collateral Manager

 

	
by

	  	
/s/ Antonio V. Versaci

	  	
Name:   Antonio V. Versaci

	  	
Title:  Director

	
by

	  	
/s/ Colleen (Illegible)

	  	
Name:  Colleen (Illegible)

	  	
Title:  Managing Director

	
 

DWS Floating Rate Plus Fund

By: Deutsche Investment Management Americas, Inc.

       Investment Advisor

 

	
by

	  	
/s/ Antonio V. Versaci

	  	
Name:   Antonio V. Versaci

	  	
Title:  Director

	
by

	  	
/s/ Colleen (Illegible)

	  	
Name:  Colleen (Illegible)

	  	
Title:  Managing Director

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
Flagship CLO IV

By: Deutsche Investment Management Americas, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Antonio V. Versaci

	  	
Name:   Antonio V. Versaci

	  	
Title:  Director

	
by

	  	
/s/ Colleen (Illegible)

	  	
Name:  Colleen (Illegible)

	  	
Title:  Managing Director

	
 

 

Flagship CLO V

By: Deutsche Investment Management Americas, Inc.

(as successor in interest to Deutsche Asset Management, Inc.),

As Collateral Manager

 

	
by

	  	
/s/ Antonio V. Versaci

	  	
Name:   Antonio V. Versaci

	  	
Title:  Director

	
by

	  	
/s/ Colleen (Illegible)

	  	
Name:  Colleen (Illegible)

	  	
Title:  Managing Director

	
 

Flagship CLO VI

By: Deutsche Investment Management Americas, Inc.

       As Collateral Manager

 

	
by

	  	
/s/ Antonio V. Versaci

	  	
Name:   Antonio V. Versaci

	  	
Title:  Director

	
by

	  	
/s/ Colleen (Illegible)

	  	
Name:  Colleen (Illegible)

	  	
Title:  Managing Director

	
 

 

FIRST TRUST/FOUR CORNERS SENIOR

FLOATING RATE INCOME FUND

By: Four Corners Capital Management, LLC

As Sub-Adviser

 

	
by

	  	
/s/ Kapil Singh

	  	
Name:   Kapil Singh, CFA

	  	
Title:  Senior Vice President

 

	
 

FIRST TRUST/FOUR CORNERS SENIOR

FLOATING RATE INCOME FUND II

By: Four Corners Capital Management, LLC

As Sub-Adviser

 

	
by

	  	
/s/ Kapil Singh

	  	
Name:   Kapil Singh, CFA

	  	
Title:  Senior Vice President

 

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

	
 

FOUR CORNERS CLO 2005-I, Ltd.

By: Four Corners Capital Management, LLC

As Collateral Manager

 

	
by

	  	
/s/ Kapil Singh

	  	
Name:   Kapil Singh, CFA

	  	
Title:  Senior Vice President

 

	
 

Four Corners CLO II, Ltd.

 

	
by

	  	
/s/ Patrick M. Cook

	  	
Name:   Patrick M. Cook

	  	
Title:  Assistant Vice President

	
by

	  	
 NA

	  	
Name:  

	  	
Title:  

	
 

 

Four Corners CLO III, Ltd.

By: Macquaries Funds Group

FKA Four Corners Capital Management, LLC

As Collateral Manager

 

	
by

	  	
/s/ Kapil Singh

	  	
Name:   Kapil Singh, CFA

	  	
Title:  Senior Vice President

 

	
 

 

OM FUNDING LIMITED

By: Four Corners Capital Management, LLC

As Collateral Manager

 

	
by

	  	
/s/ Kapil Singh

	  	
Name:   Kapil Singh, CFA

	  	
Title:  Senior Vice President

 

	
 

Navigator CDO 2004, LTD,

By: GE Asset Management Inc., as Collateral Manager

 

	
by

	  	
/s/ John C. Campos

	  	
Name:   John C. Campos

	  	
Title:  Duly Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

	
 

Navigator CLO 2006, LTD

By: GE Asset Management, Inc., as Asset Manager

 

	
by

	  	
/s/ John C. Campos

	  	
Name:   John C. Campos

	  	
Title:  Duly Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

GE Business Financial Services Inc.

 

	
by

	  	
/s/ Andrew Moore

	  	
Name:   Andrew Moore

	  	
Title:  Duly Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Victoria Court CBNA Loan Funding LLC

 

	
by

	  	
/s/ Adam Kaiser

	  	
Name:   Adam Kaiser

	  	
Title:  ATTORNEY-IN-FACT

	
by

	  	
NA

	  	
Name:  

	  	
Title:  

	
 

 

Stoney Lane Funding I, Ltd.,

By: Hillmark Capital Management, L.P.,

as Collateral Manager, as Lender

 

	
by

	  	
/s/ Mark Gold

	  	
Name:   Mark Gold

	  	
Title:  CEO

	
 

1776 CLO I, LTD.

 

	
by

	  	
/s/ James Reilly

	  	
Name:   James Reilly

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

ING Prime Rate Trust

By: ING Investment Management Co.,

as its investment manager

 

ING Senior Income Fund

By: ING Investment Management Co.,

as its investment manager

 

ING Investment Management CLO III, LTD.

By: ING Alternative Asset Management LLC,

as its investment Manager

 

ING Investment Management CLO IV, LTD.

By: ING Alternative Asset Management LLC,

as its investment manager

 

ING Investment Management CLO V, LTD.

By: ING Alternative Asset Management, LLC,

as its investment manager

 

ING International (II) - Senior Loans

By: ING Investment Management Co.,

as its investment manager

 

ING Investment Trust Co. Plan for Employee Benefit

Investment Funds - Senior Loan Fund

By: ING Investment Trust Co. as its trustee

 

	
by

	  	
/s/ Michel Prince

	  	
Name:   Michel Prince, CFA

	  	
Title:  Senior Vice President

	
 

ALZETTE EUROPEAN CLO S.A.

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

 

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

ATLANTIS FUNDING LTD.

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

AVALON CAPITAL LTD. 3

By: INVESCO Senior Secured Management, Inc.

As Asset Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

BELHURST CLO LTD.

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

BLT 2009 -1 LTD.

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

CHAMPLAIN CLO, LTD.

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

DIVERSIFIED CREDIT PORTFOLIO LTD.

By: INVESCO Senior Secured Management, Inc.

as Investment Adviser

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

HUDSON CANYON FUNDING II SUBSIDIARY HOLDING

COMPANY II, LLC

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager & Attorney InFact

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Invesco Floating Rate Fund

By: INVESCO Senior Secured Management, Inc.

As Sub-Adviser

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

KATONAH V, LTD.

By: INVESCO Senior Secured Management, Inc.

As Investment Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

LIMEROCK CLO I

By: INVESCO Senior Secured Management, Inc.

As Investment Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

MOSELLE CLO S.A.

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

NAUTIQUE FUNDING LTD.

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

PETRUSSE EUROPEAN CLO S.A.

By: INVESCO Senior Secured Management, Ind.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

SAGAMORE CLO LTD.

By: INVESCO Senior Secured Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

SARATOGA CLO I, LIMITED

By: INVESCO Senior Secured Management, Inc.

As the Asset Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

 

	
 

WASATCH CLO LTD

By: INVESCO Senior Secured Management, Inc.

As Portfolio Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
 

J.P. Morgan Whitefriars Inc.

 

	
by

	  	
/s/ Virginia R. Conway

	  	
Name:   Virginia R. Conway

	  	
Title:  Attorney - in - Fact

 

	
 

 

Bank of America, N.A.

 

	
by

	  	
/s/ Jill J. Hogan

	  	
Name:   Jill J. Hogan

	  	
Title:  Vice President

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Genesis CLO 2007-2, Ltd., as a Lender

By: LLCP Advisers LLC,

as a Collateral Manager

 

	
by

	  	
/s/ Steve Hartman

	  	
Name:   Steve Hartman

	  	
Title:  Vice President

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

Latitude CLO II., LTD

 

	
by

	  	
/s/ Kirk Wallace

	  	
Name:   Kirk Wallace

	  	
Title:  Senior Vice President

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

	
 

Invesco Prime Income Trust

By: Invesco Senior Secured Management, Inc. as Sub-Adviser

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

Invesco Van Kampen Senior Income Trust

By: Invesco Senior Secured Management, Inc. as Sub-Adviser

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Invesco Van Kampen Senior Loan Fund

By: Invesco Senior Secured Management, Inc., as Sub-Adviser

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

MSIM Pelonic Ray Ltd.

By: Invesco Senior Secured Management Inc.

as Collateral Manager

 

	
by

	  	
/s/ Joseph Rotondo

	  	
Name:   Joseph Rotondo

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

JERSEY STREET CLO, LTD., By its Collateral Manager,

Massachusetts Financial Services Company

 

	
by

	  	
/s/ David Cobey

	  	
Name:   David Cobey

	  	
Title:  As authorized representative and not individually

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

MARLBOROUGH STREET CLO, LTD., By its Collateral

Manager, Massachusetts Financial Services

Company

 

	
by

	  	
/s/ David Cobey

	  	
Name:   David Cobey

	  	
Title:  As authorized representative and not individually

	
 

Mountain Capital CLO IV Ltd.

 

	
by

	  	
/s/ Jonathan Dietz

	  	
Name:   Jonathan Dietz

	  	
Title:  Director

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Mountain Capital CLO V Ltd.

 

	
by

	  	
/s/ Jonathan Dietz

	  	
Name:   Jonathan Dietz

	  	
Title:  Director

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Mountain Capital CLO VI Ltd.

 

	
by

	  	
/s/ Jonathan Dietz

	  	
Name:   Jonathan Dietz

	  	
Title:  Director

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

	
New York Life Insurance Company

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

	  	
Title:  Vice President

 

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

New York Life Insurance and Annuity Corporation

By: New York Life Investment Management, LLC

Its Investment Manager

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

	  	
Title:  Director

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

MainStay Floating Rate Fund

a series of Eclipse Funds, Inc.

By: New York Life Investment Management LLC,

Its Investment Manager

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

	
NYLIM Flatiron CLO 2003-1 Ltd.

 

By: New York Life Investment Management LLC,

as Collateral Manager and Attorney-in-Fact

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

	
 

NYLIM Flatiron CLO 2006-1 Ltd.

By: New York Life Investment Management LLC,

as Collateral Manager and Attorney-in-Fact

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

	
 

NYLIM Flatiron CLO 2004-1 Ltd.

 

By: New York Life Investment Management LLC,

as Collateral Manager and Attorney-in-Fact

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

	
 

Flatiron CLO 2007-1 Ltd.

By: New York Life Investment Management LLC,

as Collateral Manager and Attorney-in-Fact

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

 

 

	
NYLIM Flatiron CLO 2005-1 Ltd.

 

By: New York Life Investment Management LLC,

as Collateral Manager and Attorney-in-Fact

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

 

	
MainStay VP Floating Rate Portfolio

a series of MainStay VP Series Fund, Inc.

By: New York Life Investment Management LLC,

Its Investment Manager

 

	
by

	  	
/s/ Jeanne M. Cruz

	  	
Name:   Jeanne M. Cruz

 

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

Hallmark Insurance Company

 

	
by

	  	
/s/ Chris Kenney

	  	
Name:   Chris Kenney

	  	
Title:  Vice President

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

NACM CLO I

 

	
by

	  	
/s/ Joanna Willars

	  	
Name:   Joanna Willars

	  	
Title:  VP, Authorized Signatory

	
by

	  	
N/A

	  	
Name:  

	  	
Title:  

	
 

 

NACM CLO II

 

	
by

	  	
/s/ Joanna Willars

	  	
Name:   Joanna Willars

	  	
Title:  VP, Authorized Signatory

	
by

	  	
N/A

	  	
Name:  

	  	
Title:  

	
 

 

Centaurus Loan Trust

 

NOMURA CORPORATE RESEARCH

AND ASSET MANAGEMENT INC.

AS INVESTMENT ADVISER

 

	
by

	  	
/s/ Robert Hoffman

	  	
Name:   Robert Hoffman

	  	
Title:  Executive Director

	
Clydesdale CLO 2007, Ltd.

 

NOMURA CORPORATE RESEARCH

AND ASSET MANAGEMENT INC.

AS INVESTMENT MANAGER

 

 

	
by

	  	
/s/ Robert Hoffman

	  	
Name:   Robert Hoffman

	  	
Title:  Executive Director

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

NCRAM Loan Trust

 

NOMURA CORPORATE RESEARCH

AND ASSET MANAGEMENT INC.

AS INVESTMENT ADVISER

 

	
by

	  	
/s/ Robert Hoffman

	  	
Name:   Robert Hoffman

	  	
Title:  Executive Director

	
 

NCRAM Senior Loan Trust 2005

 

NOMURA CORPORATE RESEARCH

AND ASSET MANAGEMENT INC.

AS INVESTMENT ADVISER

 

	
by

	  	
/s/ Robert Hoffman

	  	
Name:   Robert Hoffman

	  	
Title:  Executive Director

	
 

 

Nomura Bond & Loan Fund

 

By: Mitsubishi UFJ Trust & Banking Corporation as Trustee

By: Nomura Corporate Research & Asset Management Inc.

Attorney in Fact

 

	
by

	  	
/s/ Robert Hoffman

	  	
Name:   Robert Hoffman

	  	
Title:  Executive Director

 

	
 

 

Genesis CLO 2007-1 Ltd.

By: Ore Hill Partners LLC

Its: Collateral Manager

 

	
by

	  	
/s/ Claude A. Baum

	  	
Name:   Claude A. Baum, Esq.

	  	
Title:  General Counsel, Ore Hill Partners LLC

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

PPM GRAYHAWK CLO, LTD.

 

By: PPM America, Inc., as Collateral Manager

 

	
by

	  	
/s/ David C. Wagner

	  	
Name:   David C. Wagner

	  	
Title:  Managing Director

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

Primus CLO II, Ltd.

By: Primus Asset Management, Inc.

As Collateral Manager

 

	
by

	  	
/s/ Martha Hadeler

	  	
Name:   Martha Hadeler

	  	
Title:  Sr. Portfolio Manager

	
 

Cole Brook CBNA Loan Funding LLC

 

	
by

	  	
/s/ Adam Kaiser

	  	
Name:   Adam Kaiser

	  	
Title:  ATTORNEY-IN-FACT

	
by

	  	
N/A

	  	
Name:  

	  	
Title:  

	
 

 

ROSEDALE CLO LTD.

By: Princeton Advisory Group, Inc.

the Collateral Manager

 

	
by

	  	
/s/ Scott O'Connell

	  	
Name:   Scott O'Connell

	  	
Title:  Sr. Credit Analyst

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

ROSEDALE CLO II LTD.

By: Princeton Advisory Group, Inc.

the Collateral Manager

 

	
by

	  	
/s/ Scott O'Connell

	  	
Name:   Scott O'Connell

	  	
Title:  Sr. Credit Analyst

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

Dryden VIII - Leveraged Loan CDO 2005

By: Prudential Investment Management, Inc., as Collateral Manager

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

Dryden XI - Leveraged Loan CDO 2006

By: Prudential Investment Management, Inc., as Collateral Manager

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

	
 

Dryden XVI - Leveraged Loan CDO 2006

By: Prudential Investment Management, Inc., as Collateral Manager

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

	
 

 

The Prudential Insurance Company of America

By: Prudential Investment Management, Inc., as Investment Advisor

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

	
 

 

Dryden IX - Senior Loan Fund 2005 p.l.c.

By: Prudential Investment Management, Inc., Collateral Manager

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

	
 

Dryden XVIII Leveraged Loan 2007 Ltd.

By: Prudential Investment Management, Inc., as Collateral Manager

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

Dryden Total Return Bond Fund, Inc.

By Prudential Investment Management, Inc., as investment advisor

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

	
 

Dryden Global Total Return Bond Fund

By: Prudential Investment Management, Inc. As Investment Advisor

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

	
 

 

Prudential Retirement Insurance and Annuity Company

By: Prudential Investment Management, Inc., as investment manager

 

	
by

	  	
/s/ Brian Juliano

	  	
Name:   Brian Juliano

	  	
Title:  Vice President

 

	
 

 

Yorkville CBNA Loan Funding LLC

 

	
by

	  	
/s/ Adam Kaiser

	  	
Name:   Adam Kaiser

	  	
Title:  ATTORNEY-IN-FACT

	
by

	  	
 NA

	  	
Name:  

	  	
Title:  

	
 

Symphony CIO I, LTD

By: Symphony Asset Management LLC

 

	
by

	  	
/s/ James Kim

	  	
Name:   James Kim

	  	
Title:  Portfolio Manager

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

Symphony CIO II, LTD

By: Symphony Asset Management LLC

 

	
by

	  	
/s/ James Kim

	  	
Name:  James Kim 

	  	
Title:  Portfolio Manager

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

Symphony CIO III, LTD

By: Symphony Asset Management LLC

 

	
by

	  	
/s/ James Kim

	  	
Name:   James Kim

	  	
Title:  Portfolio Manager

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Symphony CIO IV, LTD

By: Symphony Asset Management LLC

 

	
by

	  	
/s/ James Kim

	  	
Name:   James Kim

	  	
Title:  Portfolio Manager

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

Symphony CIO V, LTD

By: Symphony Asset Management LLC

 

	
by

	  	
/s/ James Kim

	  	
Name:   James Kim

	  	
Title:  Portfolio Manager

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

Symphony CIO VI, LTD

By: Symphony Asset Management LLC

 

	
by

	  	
/s/ James Kim

	  	
Name:   James Kim

	  	
Title:  Portfolio Manager

	
by

	  	
 

	  	
Name:  

	  	
Title:  

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

	
 

UBS Loan Finance LLC

 

	
by

	  	
/s/ Irja R. Otsa

	  	
Name:   Irja R. Otsa

	  	
Title:  Associate Director

Banking Products

Services, US

	
by

	  	
/s/ Michael Cerniglia

	  	
Name:  Michael Cerniglia

	  	
Title:  Director

Banking Products

Services, US

	
 

WELLS CAPITAL MANAGEMENT 16959700

 

	
by

	  	
/s/ Zachary Tyler

	  	
Name:   Zachary Tyler

	  	
Title:  Authorized Signatory

	
by

	  	
 

	  	
Name:  

	  	
Title:  

	
 

 

OCEAN TRAILS CLO I

 

By: West Gate Horizons Advisors LLC,

as Collateral Manager

 

	
by

	  	
/s/ Helen Y. Rhee

	  	
Name:   Helen Y. Rhee

	  	
Title:  Senior Credit Analyst

 

	
OCEAN TRAILS CLO II

 

By: West Gate Horizons Advisors LLC,

as Investment Manager

 

	
by

	  	
/s/ Helen Y. Rhee

	  	
Name:   Helen Y. Rhee

	  	
Title:  Senior Credit Analyst

	
 

 

OCEAN TRAILS CLO III

 

By: West Gate Horizons Advisors LLC,

as Collateral Manager

 

	
by

	  	
/s/ Helen Y. Rhee

	  	
Name:   Helen Y. Rhee

	  	
Title:  Senior Credit Analyst

	
 

 

WG HORIZONS CLO I

 

By: West Gate Horizons Advisors LLC,

as Manager

 

	
by

	  	
/s/ Helen Y. Rhee

	  	
Name:   Helen Y. Rhee

	  	
Title:  Senior Credit Analyst

 

	
WhiteHorse III, Ltd.

By WhiteHorse Capital Partners, L.P.

     As collateral manager

By WhiteRock Asset Advisor, LLC, its G.P.

 

	
by

	  	
/s/ Jay Carvell

	  	
Name:   Jay Carvell

	  	
Title:  Portfolio Mnager

 

 

[Sun Healthcare Group, Inc. Amendment Signature Page]

  

  

 

SCHEDULE I

Converted Letters of Credit

 

	
Current Amount

	
Effective Date

	
Actual Expiry

	
Adjusted Expiry

	
1,237,823.06

	
04/26/2007

	
04/26/2011

	
04/26/2011

	
3,909,600.00

	
10/26/2007

	
05/16/2011

	
05/16/2011

	
7,955,000.00

	
10/26/2007

	
06/15/2011

	
06/15/2011

	
5,067,613.60

	
06/22/2007

	
06/22/2011

	
06/22/2011

	
538,377.30

	
06/27/2007

	
06/28/2011

	
06/28/2011

	
837,500.00

	
07/02/2007

	
07/02/2011

	
07/05/2011

	
400,000.00

	
08/15/2007

	
08/15/2010

	
08/16/2010

	
1,484,000.00

	
08/21/2007

	
08/21/2010

	
08/23/2010

	
500,000.00

	
08/21/2007

	
08/21/2010

	
08/23/2010

	
362,500.00

	
11/08/2007

	
11/08/2010

	
11/08/2010

	
1,507,656.00

	
02/20/2008

	
02/20/2011

	
02/21/2011

	
930,516.84

	
07/09/2008

	
07/09/2011

	
07/11/2011

 

  

  

  

 

SCHEDULE II

Subsidiary Guarantors

 

Allegiance Hospice Group, Inc.

Allegiance Hospice Care of Southeastern Massachusetts, LLC

Allegiance Hospice Care of Massachusetts, Inc.

Allegiance Hospice Care of New Hampshire, LLC

Allegiance Hospice Care of Connecticut, LLC

Holisticare Hospice, LLC

Americare Health Services Corp.

Atlantic Medical Supply Company, Inc.

CareerStaff Unlimited, Inc.

CareerStaff Services Corporation

Great Falls Health Care Company, LLC

Masthead Corporation

Peak Medical Ancillary Services, Inc.

Peak Medical Assisted Living, Inc.

Peak Medical Colorado No. 2, Inc.

Peak Medical Colorado No. 3, Inc.

Peak Medical Corporation

Peak Medical Farmington, Inc.

Peak Medical Gallup, Inc.

Peak Medical Idaho Operations, Inc.

Peak Medical Las Cruces No. 2, Inc.

Peak Medical Las Cruces, Inc.

Peak Medical Montana Operations, Inc.

Peak Medical New Mexico No. 3, Inc.

Peak Medical NM Management Services, Inc.

Peak Medical of Boise, Inc.

Peak Medical of Colorado, Inc.

Peak Medical of Idaho, Inc.

Peak Medical of Montana, Inc.

Peak Medical of Utah, Inc.

Peak Medical Oklahoma No. 1, Inc.

Peak Medical Oklahoma No. 3, Inc.

Peak Medical Oklahoma No. 4, Inc.

Peak Medical Oklahoma No. 5, Inc.

Peak Medical Oklahoma No. 7, Inc.

Peak Medical Oklahoma No. 8, Inc.

Peak Medical Oklahoma No. 9, Inc.

Peak Medical Oklahoma No. 10, Inc.

Peak Medical Oklahoma No. 11, Inc.

Peak Medical Oklahoma No. 12, Inc.

Peak Medical Oklahoma No. 13, Inc.

Peak Medical Peachtree, Inc.

Peak Medical Roswell, Inc.

Peak Medical Utah No. 2, Inc.

PM Henryetta Holdings, Inc.

  

  

  

PM Oxygen Services, Inc.

PMC Hospice Services, Inc.

ProCare One Nurses, LLC

Regency Health Services, Inc.

SHG Services, Inc.

SolAmor Hospice Corporation

SunAlliance Healthcare Services, Inc.

SunBridge Beckley Health Care Corp.

SunBridge Braswell Enterprises, Inc.

SunBridge Brittany Rehabilitation Center, Inc.

SunBridge Care Enterprises, Inc.

SunBridge Care Enterprises West, Inc.

SunBridge Carmichael Rehabilitation Center

SunBridge Charlton Healthcare, Inc.

SunBridge Circleville Health Care Corp.

SunBridge Clipper Home of North Conway, Inc.

SunBridge Clipper Home of Portsmouth, Inc.

SunBridge Clipper Home of Rochester, Inc.

SunBridge Clipper Home of Wolfeboro, Inc.

SunBridge Dunbar Health Care Corp.

SunBridge Gardendale Health Care Center, Inc.

SunBridge Glenville Health Care, Inc.

SunBridge Goodwin Nursing Home, Inc.

SunBridge Hallmark Health Services, Inc.

SunBridge Harbor View Rehabilitation Center

SunBridge Healthcare Corporation

SunBridge Jeff Davis Healthcare, Inc.

SunBridge Maplewood Healthcare Center of Jackson, Tennessee, Inc.

SunBridge Marion Health Care Corp.

SunBridge Meadowbrook Rehabilitation Center

SunBridge Nursing Home, Inc.

SunBridge Paradise Rehabilitation Center, Inc.

SunBridge Putnam Health Care Corp.

SunBridge Regency Rehab Hospitals, Inc.

SunBridge Regency-North Carolina, Inc.

SunBridge Regency-Tennessee, Inc.

SunBridge Retirement Care Associates, Inc.

SunBridge Salem Health Care Corp.

SunBridge San Bernardino Rehabilitation Hospital, Inc.

SunBridge Shandin Hills Rehabilitation Center

SunBridge Statesboro Healthcare Center, Inc.

SunBridge Stockton Rehabilitation Center, Inc.

SunBridge Summers Landing, Inc.

SunBridge West Tennessee, Inc.

SunDance Rehabilitation Agency, Inc.

SunDance Rehabilitation Corporation

  

  

  

SunDance Services Corporation

SunHealth Specialty Services, Inc.

SunMark of New Mexico, Inc.

The Mediplex Group, Inc.

1104 Wesley Avenue, LLC

1240 Pinebrook Road, LLC

1501 SE 24th Road, LLC

1775 Huntington Lane, LLC

1980 Sunset Point Road, LLC

2600 Highlands Boulevard, North, LLC

2900 Twelfth Street North, LLC

3865 Tampa Road, LLC

395 Harding Street, LLC

4602 Northgate Court, LLC

4927 Voorhees Road, LLC

Bay Tree Nursing Center Corp.

Belmont Nursing Center Corp.

Bradford Square Nursing, LLC

Caring Choices Hospice LLC

Connecticut Holdings I, LLC

Countryside Care Center Corp.

Crestview Nursing, LLC

Falmouth Healthcare, LLC

Florida Administrative Services, LLC

Florida Holdings I, LLC

Florida Holdings II, LLC

Florida Holdings III, LLC

Grant Manor LLC

Harborside Administrative Services, LLC

Harborside Connecticut Limited Partnership

Harborside Danbury Limited Partnership

Harborside Health I LLC

Harborside Healthcare Limited Partnership

Harborside Healthcare Advisors Limited Partnership

Harborside Healthcare Baltimore Limited Partnership

Harborside Healthcare Corporation

Harborside Holdings I, LLC

Harborside Massachusetts Limited Partnership

Harborside North Toledo Limited Partnership

Harborside of Cleveland Limited Partnership

Harborside of Dayton Limited Partnership

Harborside of Ohio Limited Partnership

Harborside Rehabilitation Limited Partnership

Harborside Rhode Island Limited Partnership

Harborside Swanton, LLC

Harborside Sylvania, LLC

  

  

  

Harborside Toledo Business LLC

Harborside Toledo Limited Partnership

Harborside Troy, LLC

Harborside Point Place, LLC

Hbr Danbury, LLC

Hbr Kentucky, LLC

Hbr Stamford, LLC

Hbr Trumbull, LLC

HHC 1998-I Trust

HHC Nutrition Services, LLC

HHCI Limited Partnership

Huntington Place Limited Partnership

Kentucky Holdings I, LLC

KHI LLC

Klondike Manor LLC

Leisure Years Nursing, LLC

LTC Leasing, LLC

Marietta Healthcare, LLC

Maryland Harborside Corp.

Mashpee Healthcare, LLC

Massachusetts Holdings II, Limited Partnership

Massachusetts Holdings I, LLC

New Hampshire Holdings, LLC

Northwest Holdings I, LLC

Oakhurst Manor Nursing Center Corp.

Ohio Holdings I, LLC

Orchard Ridge Nursing Center Corp.

Owenton Manor Nursing, LLC

Pine Tree Villa LLC

Regency Nursing, LLC

Riverside Retirement Limited Partnership

Sunset Point Nursing Center Corp.

Wakefield Healthcare, LLC

West Bay Nursing Center Corp.

Westfield Healthcare, LLC

Woodspoint LLC

Harborside New Hampshire Limited Partnership

HBR Bardwell LLC

HBR Barkley Drive, LLC

HBR Bowling Green LLC

HBR Brownsville, LLC

HBR Campbell Lane, LLC

HBR Elizabethtown, LLC

HBR Lewisport, LLC

HBR Madisonville, LLC

HBR Owensboro, LLC

  

  

  

HBR Paducah, LLC

HBR Woodburn, LLC

Vital Care Services, LLCSpartan Stores Exhibit 10.2 to Form 10-Q - 07-29-10

EXHIBIT 10.2

SPARTAN STORES, INC.

2010 CASH INCENTIVE PLAN

SECTION 1

ESTABLISHMENT AND PURPOSES OF PLAN

          1.1          Establishment of Plan. Spartan Stores, Inc., a Michigan corporation, hereby establishes its 2010 Cash Incentive Plan for its Company and Subsidiary officers, employee directors and other key Associates. The Plan permits the award of incentive compensation in the form of performance-based incentive awards payable in cash.

          1.2          Purposes of Plan. The purposes of the Plan are to motivate Participants to achieve the Company's financial and business objectives; to allow Participants to share appropriately in the financial success of the Company; to provide a highly competitive incentive compensation opportunity; to create a linkage between Participant contribution and the Company's business and financial objectives; and to assist in the attraction, retention and motivation of Associates. The Plan is further intended to provide flexibility to the Company in structuring incentive compensation to best promote the foregoing objectives.

          1.3          Plan Document. This instrument, as amended from time to time, constitutes the governing document of the Plan.

          1.4          Effective Date. The Plan is effective as of March 28, 2010. The Plan shall remain in effect until terminated by the Board. Unless earlier terminated by the Board, the Plan shall terminate as of the date of the first meeting of shareholders held in 2020.

          1.5          Incentive Compensation Plan. The Plan is an incentive compensation program for Participants. Because the Plan does not provide welfare benefits and does not provide for the deferral of compensation until termination of employment, it is established with the intent and understanding that it is not an employee benefit plan within the meaning of the federal Employee Retirement Income Security Act of 1974, as amended.

SECTION 2

DEFINITIONS

                    The following terms shall have the definitions stated, unless the context requires a different meaning. Other defined terms shall have the meanings ascribed to them herein.

          2.1          Annual Base Salary.  "Annual Base Salary" means a Participant's annual salary rate in effect at the end of a Performance Period without regard to incentive compensation or

bonuses or awards under this Plan or other benefits or incentive compensation plans maintained or provided by the Company.

          2.2          Associate. "Associate" means an employee of the Company or any Subsidiary.

          2.3          Beneficiary. "Beneficiary" means the individual, trust or other entity designated by the Participant to receive any Incentive Bonus payable with respect to the Participant under the Plan after the Participant's death. A Participant may designate or change a Beneficiary by filing a signed designation with the Committee in a form approved by the Committee. A Participant's will or other estate planning document is not effective for this purpose. If a designation has not been completed properly and filed with the Committee or is ineffective for any other reason, the Beneficiary shall be the Participant's Surviving Spouse. If there is no effective designation and the Participant does not have a Surviving Spouse, the remaining Incentive Bonus under this Plan, if any, shall be paid to the Participant's estate.

          2.4          Board. "Board" means the Board of Directors of the Company.

          2.5          Business Unit. "Business Unit" means any Subsidiary, department, division or other operational unit of the Company or any Subsidiary as to which the Committee shall establish a Goal under the Plan applicable in a Performance Period.

          2.6          Code. "Code" means the Internal Revenue Code of 1986, as amended.

          2.7          Committee. "Committee" means the Compensation Committee of the Board or such other committee as the Board designates to administer this Plan. The Committee shall consist of at least two persons, all of whom shall be "non-employee directors" as defined in Rule 16b-3 under the Securities Exchange Act of 1934, as amended, and "outside directors" as defined in Section 162(m) of the Code.

          2.8          Common Stock. "Common Stock means the Company's common stock, no par value.

          2.9          Company. "Company" means Spartan Stores, Inc., a Michigan corporation, and its Subsidiaries.

          2.10          Fiscal Year. "Fiscal Year" means the financial reporting and taxable year of the Company.

          2.11          Goal. "Goal" means the goal established for one or more Participants by the Committee under Section 5 of this Plan for one or more of the Company and any Business Unit to achieve over a designated performance period. Goals may be based on the net earnings or other financial performance or results or improvements in operations of the Company or any Business Unit, or any other criteria that the Committee may determine from time to time.

          2.12          Incentive Bonus.  "Incentive Bonus" means a bonus awarded and paid in cash to a Participant for services to the Company or its Subsidiaries during a Performance Period that is based upon achievement of Goals that are applicable to the Participant.

2

          2.13          Officer. "Officer" means a Participant serving in one or more of the following positions with Spartan Stores, Inc.: Chief Executive Officer, President, any Executive or other Vice President, Secretary and Treasurer.

          2.14          Participant. "Participant" means an Associate designated by the Committee to participate in this Plan for a Performance Period pursuant to Section 4 of this Plan.

          2.15          Performance Period. "Performance Period" means the period of time during which the performance objectives must be achieved by the Company, a Subsidiary, or a Business Unit to determine the payout of an Incentive Bonus, if any.

          2.16          Retirement. "Retirement" means termination of employment as a result of retirement on or after the earlier of the date the Participant reaches (a) age 65; or (b) age 55, but only if such Participant has completed at least ten Years of Vested Service (as defined below) since the later of the Participant's date of hire or, if the Participant became an associate of the Company in connection with a merger or acquisition, the date of the effective time of such merger or acquisition.

          2.17          Subsidiary. "Subsidiary" means any corporation or other entity of which fifty percent (50%) or more of the outstanding voting stock or voting ownership interest is directly or indirectly owned or controlled by the Company or by one or more Subsidiaries of the Company, except that for purposes of this Plan, the term "Subsidiary" does not include Spartan Insurance Company Ltd. or SI Insurance Agency, Inc.

          2.18          Surviving Spouse. "Surviving Spouse" means the husband or wife of the Participant at the time of the Participant's death who survives the Participant. If the Participant and the spouse die under circumstances that make the order of their deaths uncertain, it shall be presumed for purposes of this Plan that the Participant survived the spouse.

          2.19          Target Bonus. "Target Bonus" means the bonus goal established by the Committee for each Participant under Section 5.2(d).

          2.20          Total Disability. "Total Disability" means the condition of a Participant who is and remains eligible for total and permanent disability benefits under  § 223 of the Social Security Act, as amended.

          2.21          Year of Vested Service.  "Year of Vested Service" means a calendar year in which a Participant is credited with at least 1,000 hours of employment with the Company or its Subsidiaries.  For the purposes of this definition, "hours of employment" include actual hours of paid work, paid leave or other time off, and hours of work missed due to military service provided that the Participant returns to work while his or her rehire rights are protected by law.

3

SECTION 3

ADMINISTRATION OF PLAN

          3.1          Plan Administration.

          (a)          Power and Authority. The Committee shall have full power and authority to interpret the provisions of the Plan and shall have full power and authority to supervise the administration of the Plan. All determinations, interpretations and selections made by the Committee regarding the Plan shall be final and conclusive on all parties. To the extent it deems necessary or appropriate, the Committee may adopt rules, policies and forms for the administration, interpretation and implementation of the Plan.

          (b)          Delegation of Authority. The Committee may delegate administrative authority and responsibility from time to time to and among one or more officers of the Company, but all actions taken pursuant to delegated authority and responsibility shall be subject to review, change and approval by the Committee.

          3.2          Grants or Awards to Participants. In accordance with and subject to the provisions of the Plan, the Committee shall have the authority to determine all matters as the Committee may deem necessary or desirable and as are consistent with the terms of the Plan, including, without limitation, the following: (a) the persons who shall be selected as Participants and (b) the nature and extent of the Incentive Bonus granted to each Participant.

          3.3          Indemnification. A member of the Committee or any other individual or group to whom authority is delegated shall not be personally liable for any act or omission in connection with the performance of powers or duties or the exercise of discretion or judgment in the administration and implementation of the Plan. The Company shall hold harmless and indemnify each member of the Committee, and any other individual or group exercising delegated authority or responsibility with respect to the Plan, from any and all liabilities and costs arising from any act or omission related to the performance of duties or the exercise of discretion and judgment with respect to the Plan. This Section 3.3 shall not be construed as limiting the Company's or any Subsidiary's ability to terminate or otherwise alter the terms and conditions of the employment of individual or group exercising delegated authority or responsibility with respect to the Plan, or to discipline any such person.

SECTION 4

ELIGIBILITY

          4.1          Participation. An Associate shall be a Participant in the Plan for a Performance Period upon his or her designation as a Participant for that Performance Period by the Committee. When deemed appropriate by the Committee, the Committee may determine an effective date for the commencement of participation by a Participant that is subsequent to the

4

first day of the Performance Period. Participants shall be notified in writing and provided a written summary of the Plan.

          4.2          No Continuing Participation. An Associate's designation as a Participant for a Performance Period will not continue in effect for the subsequent Performance Period unless and until the Committee designates the Associate as a Participant in the subsequent Performance Period. The Committee may terminate participation by any Participant at any time with or without cause.

SECTION 5

ESTABLISHMENT OF GOALS AND POTENTIAL INCENTIVE BONUSES

          5.1          Performance Criteria. The Plan shall be administered so that the incentive compensation provided to Participants under the Plan for each Performance Period is based on whether the Goals that are applicable to the Participant for a Performance Period are achieved for that Performance Period.

          5.2          Determination of Possible Incentive Bonuses. Within a reasonable time prior to or after the commencement of a Performance Period, the Committee shall make the determinations set forth in this Section 5.2.

          (a)          Performance Period.  The Committee shall determine the duration of each Performance Period.  Each Performance Period may be expressed as a number of Fiscal Years or by any unit of time.  Any Performance Period may overlap with one or more other Performance Periods.

          (b)          Participants. The Committee shall determine the Associates who shall be Participants for that Performance Period.

          (c)          Goals. The Committee shall determine the one or more Goals applicable to each Participant for that Performance Period, including any threshold, target or maximum Goals. The Committee may, but is not required to, set Goals for the person or persons serving in a particular position or positions with the Company, rather than individual Participants. Goals may vary among Participants in any manner that the Committee determines. In addition, there is no requirement that any Participant's Goals be similar from Performance Period to Performance Period.

          (d)          Target Bonus. A Target Bonus, expressed as a percentage of the Participant's Annual Base Salary or a specified dollar amount.

          (e)          Incentive Bonus; Allocation of Incentive Bonus. For each Participant selected for a Performance Period, the Committee shall determine the one or more Incentive Bonus levels applicable to a Goal for the Performance

5

Period.  The Incentive Bonus levels, expressed as a percentage of the Target Bonus, that shall be paid to the Participant at specified levels of achievement of the Goals established by the Committee pursuant to this Section 5.

          (f)          Determination of Relationships Between Goals. For each Goal established for a Participant, the Committee shall determine whether the Participant's eligibility to receive an Incentive Bonus with respect to such Goal is dependent on the achievement of any other Goal applicable to that Participant.

          (g)          Conditions on Incentive Awards.  The Committee may also establish any specific conditions under which an Incentive Award may be reduced or forfeited.

The Incentive Bonus levels specified under subsection (c) above may be expressed either as (i) a matrix of percentages of the Target Bonus that will be paid at specified levels of the Goal or (ii) a mathematical formula that determines the percentage of the Target Bonus that will be paid at varying levels of the Goal.  If the Incentive Bonus levels are expressed a  matrix of percentages and the actual performance achieved exceeds the threshold level and falls between specified levels, then the Compensation Committee may determine by interpolation the percentage of the Target Bonus that will be paid.

          5.3          Determination of Actual Incentive Bonuses.

          (a)          Determination of Achievement of Goals. Within a reasonable time following the end of a Performance Period, the Committee shall determine whether each Participant's one or more Goals for that Performance Period have been met. The Committee shall make this determination by reference to such information as the Committee determines.

          (b)          Determination of Incentive Bonuses. Following its determinations under Section 5.3(a), the Committee shall determine the portion of each Participant's Incentive Bonus that such Participant is entitled to receive for that Performance Period, subject to the provisions of this Section 5.

          5.4          Adjustments. Adjustments to Incentive Bonuses may be made when deemed appropriate by the Committee pursuant to Section 6 and Section 7 below.

SECTION 6

DETERMINATION AND PAYMENT OF INCENTIVE BONUSES

          6.1          Final Performance Determination. Company, Business Unit and individual performance, including any necessary or appropriate adjustments required or permitted hereunder, shall be determined for each Participant as soon as administratively feasible following the availability of final performance results for the Performance Period.

6

          6.2          Determination of Incentive Bonuses. Under rules established by the Committee, the Incentive Bonus for each Participant for each Performance Period shall be determined pursuant to Section 5.

          6.3          Payment of Incentive Bonuses; Form of Payment. The dollar amount of the Incentive Bonus for a Performance Period shall be paid to the Participant as soon as feasible following the completion of the Incentive Bonus calculations for the Performance Period and vesting by the Participant in the Incentive Award; provided, however, such Incentive Bonus shall be paid no later than the 15th day of the third month following the later of the end of the Performance Period in which the goals for the incentive bonus have been met and the date the Participant vests in the Incentive Award. Upon completion of such calculations, the Committee shall notify each Participant of the amount of his or her Incentive Bonus. Any Participant may elect to receive a portion of his or her Incentive Bonus to be paid in cash under this Plan in the form of Common Stock under the Company's 2001 Stock Bonus Plan (or any successor plan) or any other Incentive Bonus plan that the Company may adopt, provided that the Participant is a participant under the other plan with the right to elect to receive shares of Common Stock under the plan. In the event of the death of a Participant, any Incentive Bonus payable to the Participant under the Plan will be paid to the Participant's Beneficiary. Before any Incentive Bonus shall be paid, the Committee shall certify in writing, whether by appropriate resolution or otherwise, that the relevant Goals were met and that the other material terms of this Plan have been satisfied.

          6.4          Partial Year Participation and Employment Changes.

          (a)          Partial Year Participation. If a person is designated to become a Participant in a Performance Period as of a date other than the first day of the Performance Period, then such Participant shall be entitled to receive a pro rata portion of the Incentive Bonuses to which he or she would otherwise be entitled had he or she been a Participant for the entire Performance Period, based on the Participant's time of active employment as a Participant during the Performance Period.

          (b)          Employment Changes. Goals and Incentive Bonuses for a Participant for a Performance Period will be prorated or adjusted as appropriate, as determined by the Committee from time to time, in the event of any change in the Participant's compensation or employment status, or any other change that would affect the determination for the Performance Period, in proportion to the duration of each applicable factor during the Performance Period.

          (c)          Retirement, Death, Total Disability, or Change in Control.  If a Participant's employment terminates by reason of Retirement, death, Total Disability, or Change in Control (as defined in the Spartan Stores, Inc. Supplemental Executive Retirement Plan), or upon a Change in Control that does not result in the termination of a Participant's employment, before the end of any Performance Period or before vesting in the applicable Incentive Award, the Participant's Incentive Bonus for the Performance Period, if any, shall vest and be paid to the Participant or the Participant's Beneficiary if and to the extent

7

provided by the Committee in the grant of the Incentive award.  Notwithstanding the previous sentence, the Committee shall only grant awards payable upon Retirement, death, Total Disability, or Change in Control in a timely manner so as to be exempt from Section 409A as provided in Section 9.8.  Specifically, the award shall be paid no later than the 15th day of the third month following the date on which the Participant's rights under this subsection vest due to the Participant's Retirement, death, Total Disability, or a Change in Control or, if already vested, the 15th day of the third month following the date of the Participant's Retirement, death, Total Disability, or a Change in Control.

          (d)          Other Termination of Employment. Except as otherwise provided in this subsection (d) or pursuant to subsection (e), or as provided in a change in control agreement applicable to a Participant, upon termination of a Participant's employment for any reason other than Retirement, death, or Total Disability during a Performance Period or before vesting in the applicable Incentive Award, the Participant shall not be entitled to the payment of any Incentive Bonus for the Performance Period. Notwithstanding the preceding sentence, the Committee shall have sole and absolute discretion to determine that payment of a pro-rated amount may be made when termination of a Participant's employment results from job elimination, reduction in work force or other similar company initiative, or is encouraged or induced by incentives offered by the Company or other circumstances determined appropriate by the Committee. Except as provided in Section 6.4(c) or (e), a Participant must be employed by the Company or a Subsidiary at the time that an Incentive Bonus is paid to receive such Incentive Bonus.

          (e)          Committee Discretion. Pursuant to the powers conferred in Section 6 and Section 7, the Committee may amend or modify any rule and make any other rule, exception or determination applicable to participation and employment changes relating to any Participant. Notwithstanding any other provision of this Plan, the Committee delegates to the Chief Executive Officer the authority to determine that a Participant's award will be reduced or withheld if the Chief Executive Officer determines that the reduction or withholding is warranted by the Participant's performance.

SECTION 7

COMMITTEE DISCRETION

                    The Committee shall exercise all of its power and duties as the Committee deems appropriate in its sole and absolute discretion. All decisions of the Committee shall be final and binding on all Participants and their respective heirs, representatives and Beneficiaries. If the Committee determines in its sole and absolute discretion that any factor applicable in the ultimate determination of an Incentive Bonus under the Plan for a Performance Period is not appropriate with respect to one or more Participants due to unusual events, circumstances, or

8

other factors that the Committee determines to be appropriate, the applicable factor or the amount of the resulting Incentive Bonus may be adjusted or modified in any manner deemed appropriate by the Committee. Without limiting the generality of the foregoing, to reflect significant, unanticipated changes, Goals may be adjusted during a Performance Period by recommendation of the Committee and upon approval of the Board of Directors. Adjustments to Goals are expected to be, but need not be, made on an extraordinary basis only.

                    Without limiting the generality of the foregoing, for each Performance Period for which Incentive Bonuses are awarded, the Committee may, but need not, award Incentive Bonuses to persons who were not designated as Participants for that Performance Period in an aggregate amount equal to not more than twenty-five percent (25%) of the aggregate amount of Incentive Bonuses awarded to Participants for such Performance Period. The amount and other terms and conditions of such Incentive Bonuses to non-Participants, as well as the identities of the persons who are designated to receive such Incentive Bonuses, are within the sole and absolute discretion of the Committee.

SECTION 8

TERMINATION AND AMENDMENT

                    The Board may terminate the Plan at any time, or may from time to time amend the Plan as it deems appropriate and in the best interests of the Company.

SECTION 9

GENERAL PROVISIONS

          9.1          Benefits Not Guaranteed; No Rights to Award. Neither the establishment and maintenance of the Plan nor participation in the Plan shall provide any guarantee or other assurance that Incentive Bonuses or other compensation will be payable under the Plan. The success of the Company and its Business Units and affiliates, as determined hereunder and adjusted as provided herein and application of the administrative rules and determinations by the Committee, shall determine the extent to which Participants are entitled to receive Incentive Bonuses under this Plan. No Participant or other person shall have any claim to be granted any award or benefit under the Plan and there is no obligation of uniformity of treatment of Participants under the Plan. The terms and conditions of any award or benefit of the same type and the determination of the Committee to grant a waiver or modification of any award or benefit and the terms and conditions thereof need not be the same with respect to each Participant.

          9.2          No Right to Participate. Nothing in this Plan shall be deemed or interpreted to provide a Participant or any non-participating Associate with any contractual right to participate in or receive benefits under the Plan. No designation of a person as a Participant for all or any part of a Performance Period shall create a right to any Incentive Bonus, compensation or other benefits of the Plan for any other Performance Period.

9

          9.3          No Employment Right. Participation in this Plan shall not be construed as constituting a commitment, guarantee, agreement, or understanding of any kind that the Company or any Subsidiary will continue to employ any individual and this Plan shall not be construed or applied as any type of employment contract or obligation. Nothing herein shall abridge or diminish the rights of the Company or any Subsidiary to determine the terms and conditions of employment of any Participant or other person or to terminate the employment of any Participant or other person with or without cause at any time.

          9.4          No Assignment or Transfer. Neither a Participant nor any Beneficiary or other representative of a Participant shall have any right to assign, transfer, attach, or pledge any bonus amount or credit, potential payment, or right to future payments of any bonus amount or credit, or any other benefit provided under this Plan. Payment of any amount due or to become due under this Plan shall not be subject to the claims of creditors of the Participant or to execution by attachment or garnishment or any other legal or equitable proceeding or process, unless otherwise specifically ordered by any court of competent jurisdiction.

          9.5          Withholding and Payroll Taxes. The Company shall deduct from any payment made under this Plan all amounts required by federal, state and local tax laws to be withheld and shall subject any payments made under the Plan to all applicable payroll taxes and assessments.

          9.6          Incompetent Payee. If the Committee determines that a person entitled to a payment hereunder is incompetent, it may cause benefits to be paid to another person for the use or benefit of the Participant or the Participant's Beneficiary at the time or times otherwise payable hereunder, in total discharge of the Plan's obligations to the Participant or Beneficiary.

          9.7          Governing Law. The validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Michigan and applicable federal law.

          9.8          Construction. The singular includes the plural and the plural includes the singular. Capitalized terms, except those at the beginning of a sentence or part of a heading, have the meaning defined in the Plan.  The Plan is intended to be exempt from Section 409A of the Code by providing for short-term deferrals as described in Treasury Regulations  § 1.409A-1(b)(4) and shall be interpreted and administered to achieve that purpose.

          9.9          Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of the Plan and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

          9.10          No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Subsidiary from adopting or continuing in effect other or additional compensation arrangements, including the grant of stock options and other stock-based awards, and such arrangements may be either generally applicable or applicable only in specific cases.

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