Document:

exhibit10_1.htm

Exhibit 10.1

THIRD AMENDMENT TO CREDIT AGREEMENT

 

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (“Amendment”) is made and entered into effective as of February 12, 2015, by and among [i] ALMOST FAMILY, INC., a Delaware corporation (“AFI” or “Borrower”), [ii] JPMORGAN CHASE BANK, N.A., a national banking association as Administrative Agent and for itself as a Lender (“Agent”), [iii] J.P. MORGAN SECURITIES LLC, a Delaware limited liability company as Joint Lead Arranger (“J.P. Morgan Securities”), [iv] MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, a Delaware corporation as Joint Lead Arranger (“MLPFS”), [v] BANK OF AMERICA, N.A., a national banking association as Syndication Agent and for itself as a Lender (“BOA”), [vi] FIFTH THIRD BANK, an Ohio banking corporation as a Documentation Agent and for itself as a Lender (“FTB”), pursuant to that certain Credit Agreement dated as of December 2, 2010 (the “Original Credit Agreement”), as modified by a letter agreement dated as of December 10, 2012, and the Second Amendment to Credit Agreement (“Second Amendment”) dated as of December 6, 2013, entered into in each case among AFI, Agent, BOA, FTB and the other Lenders party thereto (collectively, the “Credit Agreement”; certain capitalized terms used in this Amendment have the meaning set forth for them in the Credit Agreement unless expressly otherwise defined herein), [vii] EACH DEPARTING LENDER designated as such on the signature page to this Amendment executed and delivered by it (“Departing Lender”), and by [viii] REGIONS BANK, an Alabama banking corporation for itself as a Lender (“RB”), as modified by this Amendment (for avoidance of doubt, the reference to “Lenders” contained in this Amendment includes Agent, BOA, FTB and RB and excludes J.P. Morgan Securities, MLPFS and the Departing Lender).

 

W I T N E S S E T H:

 

WHEREAS, Lenders and AFI have agreed [i] to increase the aggregate amount of the Commitments of the Lenders from $125,000,000 to $175,000,000, [ii] to extend the Maturity Date from December 2, 2015 until February 12, 2020, [iii] to modify definitions used in calculating the Applicable Rate, [iv] to modify certain of the Financial Covenants, [v] to amend the Pricing Grid Rider, and [vi] otherwise as set forth in this Amendment;

 

NOW, THEREFORE, in consideration of the premises, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, it is hereby agreed as follows:

 

ARTICLE 1.                                

 

 

Amendments to Credit Agreement

 

AFI, Agent, and Lenders agree that, subject to satisfaction of the conditions stipulated in Article 2 of this Amendment, the Credit Agreement is hereby modified as follows:

 

1.1 Each of the following definitions shall be added to Article 1 of the Credit Agreement alphabetically in the order in which they would have appeared if initially set forth in the Credit Agreement:

 

“Acquisition Consideration” means the aggregate amount of the consideration, including cash as well as any Indebtedness of a Target Person assumed by an Acquirer, paid by the Acquirer for the Acquisition.

 

  

  

  

 

“Adjusted One Month LIBOR Rate” means, for any day, an interest rate per annum equal to the sum of (i) 2.50% per annum plus (ii) the Adjusted LIBO Rate for a one-month interest period on such day (or if such day is not a Business Day, the immediately preceding Business Day); provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the rate appearing on the Reuters Screen LIBOR01 Page (or on any successor or substitute page) at approximately 11:00 a.m. London time on such day (without any rounding).

 

“CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate shall never be less than the Adjusted One Month LIBOR Rate on such day (or if such day is not a Business Day, the immediately preceding Business Day).  Any change in the CB Floating Rate due to a change in the Prime Rate or the Adjusted One Month LIBOR Rate shall be effective from and including the effective date of such change in the Prime Rate or the Adjusted One Month LIBOR Rate, respectively.

 

“CBFR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the CB Floating Rate.

 

“Central FL” means SunCrest Home Health of Central FL, LLC, a Florida limited liability company.

 

“Controlled Affiliate” has the meaning set forth for such term in Section 3.12.

 

“Embargoed Person” has the meaning set forth for such term in Section 3.13.

 

“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an ECP at the time the Guarantee of such Guarantor or the grant of such security interest becomes or would become effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.

 

“Executive Order” has the meaning set forth for such term in Section 3.13.

 

“Foreign Assets Control Regulations” has the meaning set forth for such term in Section 3.13.

 

“IHM” means Imperium Health Management, LLC, a Kentucky limited liability company.

 

  

  

  

 

“Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate”.

 

“Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded upward to four decimal places) determined by the Lender (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period (for which the LIBO Screen Rate is available) that is shorter than the Impacted Interest Period and (b) the LIBO Screen Rate for the shortest period (for which the LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.  [When determining the rate for a period which is less than the shortest period for which the LIBO Screen Rate is available, the LIBO Screen Rate for purposes of paragraph (a) above shall be deemed to be the overnight screen rate where “overnight screen rate” means the overnight rate determined by the Lender from such service as the Lender may select. ]

 

“Joint Lead Arranger” means JPMorgan Chase Bank, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, each in its respective capacity as a lead arranger under the Credit Agreement, and “Joint Lead Arrangers” means all of them, collectively.

 

“LIBO Screen Rate” has the meaning assigned to such term in the definition of “LIBO Rate”.

 

“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.

 

“Prohibited Person” means any Person (a) listed in the Annex to the Executive Order or identified pursuant to Section 1 of the Executive Order; (b) owned or controlled by, or acting for or on behalf of, any Person listed in the Annex to the Executive Order or identified pursuant to Section 1 of the Executive Order; (c) with whom a Lender is prohibited from dealing or otherwise engaging in any transaction by any terrorism or anti-laundering law, including the Executive Order; (d) who commits, threatens, conspires to commit, or support “terrorism” as defined in the Executive Order; (e) who is named as a “Specially designated national or blocked person” on the most current list published by the OFAC at its official website at http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf or any replacement website or other replacement official publication of such list; or (f) who is owned or controlled by a Person listed above in clause (c) or (d).

 

“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Guarantor that has total assets exceeding $10,000,000 at the time the relevant Guaranty Agreement or grant of the relevant security interest becomes or would become effective with respect to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Swap Agreement Obligations” means any and all obligations of the Obligors[or their Subsidiaries], whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any Swap Agreement permitted hereunder with the Lender or an Affiliate of the Lender, and (b) any cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction permitted hereunder with the Lender or an Affiliate of the Lender.

 

  

  

  

 

“Trading With the Enemy Act” has the meaning set forth for such term in Section 3.13.

 

 1.2 The definition of “Acquisition Threshold” is deleted, and a new definition for “Acquisition Information Threshold Amount” is substituted therefor to read as follows:

 

“Acquisition Information Threshold Amount” means $25,000,000.

 

1.3 The definitions of “Adjusted EBITDA”, “Adjusted LIBO Rate”, “LIBO Rate”, “Maturity Date,” “Permitted Acquisition” and “Swap Obligations” are amended and restated in their entirety to read as follows:

 

“Adjusted EBITDA” means the sum of [i] EBITDA, plus [ii] Acquired EBITDA.

 

“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period or for any CBFR Borrowing, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

“LIBO Rate” means, with respect to any Eurodollar Borrowing for any applicable Interest Period, the London interbank offered rate administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for Dollars) for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected by the Lender from time to time in its reasonable discretion (the “LIBO Screen Rate”) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period; provided that, (x) if any LIBO Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement and (y) if the LIBO Screen Rate shall not be available at such time for a period equal in length to such Interest Period (an “Impacted Interest Period”), then the LIBO Rate shall be the Interpolated Rate at such time, subject to Section 2.14 in the event that the Lender shall conclude that it shall not be possible to determine such Interpolated Rate (which conclusion shall be conclusive and binding absent manifest error); provided, that, if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.  Notwithstanding the above, to the extent that “LIBO Rate” or “Adjusted LIBO Rate” is used in connection with a CBFR Borrowing, such rate shall be determined as modified by the definition of Adjusted One Month LIBOR Rate.

 

  

  

  

 

“Maturity Date” means February 12, 2020 unless February 12, 2020 is not a Business Day, in which case the Maturity Date shall be the next Business Day immediately succeeding February 12, 2020.

 

“Permitted Acquisition” means [i] any Acquisition of a Target Person by an Acquirer, provided (A) no Default or Event of Default has occurred and is continuing, and (B) either [i] both (a) the most recent financial statements of Borrower delivered to reflected a Leverage Ratio of less than 2.50 to 1.00 and (b) if the Acquisition Consideration exceeds the Acquisition Information Threshold Amount, the Proforma Acquisition Information delivered to Lenders reflects a Leverage Ratio of less than 2.50 to 1.00 at all times after giving effect to the Acquisition, or [ii] if the conditions set forth in the foregoing clause [i] are not satisfied, the aggregate amount of the Acquisition Consideration paid by all Acquirers for Permitted Acquisitions during the fiscal year of Borrower in which the Acquisition occurs, including after given effect to the Acquisition in question, does not exceed $75,000,000; provided further, however, that [x] no Acquisition shall be a Permitted Acquisition unless the Eligible Real Estate Collateral has been mortgaged and the personal property assets that are acquired have been pledged and granted (unless the pledge or grant is prohibited by Governmental Authority or the provisions of contracts governing the same) as part of the Collateral and, if Equity Interests of the Target Person have been acquired, the Target Person has at the time such Equity Interests are acquired, executed and delivered a Guaranty Agreement and Administrative Agent has received an exclusive first priority pledge and grant of such Equity Interest of the Target Person as part of the Collateral, and [y] no Acquisition for which the Acquisition Consideration paid by the Acquirer exceeds the Acquisition Information Threshold Amount shall be a Permitted Acquisition unless at least ten (10) Business Days prior to the consummation of the Acquisition Borrower has furnished the requisite Proforma Acquisition Information to the Administrative Agent and each of the Lenders.

“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder; provided, however, that the term shall not include Excluded Swap Obligations.

 

1.4 The first sentence of the definition of “Applicable Rate” is amended and restated in its entirety to read as follows:

 

“Applicable Rate” means, for any day, with respect to any Loan, or with respect to the Commitment Fees payable hereunder, as the case may be, the CB Floating Rate with respect to any CBFR Loan, [ii] the sum of the Adjusted LIBO Rate plus the LIBO Margin with respect to any Eurodollar Revolving Loan, and [iii] with respect to the Commitment Fees, the applicable interest rate increment per annum shown on the Pricing Grid Rider.

 

  

  

  

 

1.5 The definitions for “ABR” and “Alternate Base Rate” are deleted; provided, however, that “CBFR” shall be substituted for ABR, and “CB Floating Rate” shall be substituted for Alternate Base Rate in each instance in the Credit Agreement in which the applicable definitions appear.

 

1.6 The amount of “$20,000,000” in SECTION 2.05(a) is deleted, and the amount of “$15,000,000” is substituted therefor.

 

1.7 The amount of “$25,000,000” at the end of SECTION 2.06(b) is deleted, and the amount of “$20,000,000” is substituted therefor.

 

1.8 The amount of “$175,000,000” in SECTION 2.20 is deleted, and the amount of “$250,000,000” is substituted therefor.

   

1.9 Schedule 2.01, Schedule 5.09 and the Pricing Grid Rider, each as originally incorporated as part of the Credit Agreement, are deleted, and Schedule 2.01, Schedule 5.09 and the Pricing Grid Rider, each in the form attached to and made a part of this Amendment, are substituted therefor, respectively.

 

1.10 Schedule 3.01 to the Original Credit Agreement and Schedule 3.01(a) to the Second Amendment are deleted, and Schedule 3.01 in the form attached to and made a part of this Amendment is substituted therefor.

 

1.11 A new SECTION 3.12 is added to the Credit Agreement to read as follows:

 

SECTION 3.12.  USA Patriot Act Representations.

(a)  None of the Obligors, any of their Subsidiaries or, to the knowledge of the Borrower, any of their respective Affiliates over which any of the foregoing exercises management control (each, a “Controlled Affiliate”) is a Prohibited Person, and the Obligors, their Subsidiaries and, to the knowledge of the Borrower, such Controlled Affiliates are in compliance with all applicable orders, rules and regulations of OFAC.

[b]  None of the Obligors, any of their Subsidiaries or, to the knowledge of the Borrower, any of their respective Affiliates:  (i) is targeted by United States or multilateral economic or trade sanctions currently in force; (ii) is owned or controlled by, or acts on behalf of, any Person that is targeted by United States or multilateral economic or trade sanctions currently in force; (iii) is a Prohibited Person; or (iv) is named, identified or described on any list of Persons with whom United States Persons may not conduct business, including any such blocked persons list, designated nationals list, denied persons list, entity list, debarred party list, unverified list, sanctions list or other such lists published or maintained by the United States, including OFAC, the United States Department of Commerce or the United States Department of State.

 

1.12 A new SECTION 3.13 is added to the Credit Agreement to read as follows:

 

SECTION 3.13.  Embargoed Person.  (a) No Obligor’s, nor any of their Subsidiaries’, assets constitute property of, or are beneficially owned, directly or indirectly, by any person targeted by economic or trade sanctions under U.S. law, including but not limited to the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the Trading with the Enemy Act, 50 U.S.C. App. 1 et seq. (the “Trading With the Enemy Act”) any of the foreign assets control regulations of the Treasury (31 C.F.R., Subtitle B. Chapter V, as amended) (the “Foreign Assets Control Regulations”) or any enabling legislation or regulations 

 

  

  

  

promulgated thereunder or executive order relating thereto (which includes, without limitation, (i) Executive Order No. 13224, effective as of September 24, 2001, relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive Order”) and (ii) the USA PATRIOT Act, if the result of such ownership would be that any Loan made by any Lender would be in violation of law (“Embargoed Person”); (b) no Embargoed Person has any interest of any nature whatsoever in any Obligor if the result of such interest would be that any Loan would be in violation of law; (c) no Obligor has engaged in business with Embargoed Persons if the result of such business would be that any Loan made by any Lender would be in violation of law; and (d) neither any Obligor nor any Controlled Affiliate (i) is or will become a “blocked person” as described in the Executive Order, the Trading With the Enemy Act or the Foreign Assets Control Regulations or (ii) engages or will engage in any dealings or transactions, or be otherwise associated, with any such “blocked person”.  For purposes of determining whether or not a representation is true or a covenant is being complied with under this Section 3.12, the Obligors shall not be required to make any investigation into (i) the ownership of publicly traded stock or other publicly traded securities or (ii) the beneficial ownership of any collective investment fund.

 

1.13 In addition to the matters set forth in Section 5.02 of the Credit Agreement for which Borrower is required to give written notice to the Administrative Agent and each Lender, Borrower also shall give written notice to the Administrative Agent and each Lender, within two (2) Business Days after the occurrence thereof, of any Obligor entering into a Swap Agreement or an amendment to a Swap Agreement, together with copies of all agreements evidencing such Swap Agreement or Amendment.

 

1.14 The amount of “$15,000,000” is substituted for the amount of “$8,000,000” in SECTION 6.04(f) of the Credit Agreement.

 

1.15 The amount of “$25,000,000” is substituted for the amount of “$20,000,000” in SECTION 6.06 of the Credit Agreement.

 

1.16 Borrower has informed Lenders that, although IHM is a direct or indirect Subsidiary of Borrower, the organization documents of IHM do not authorize a guaranty of, or pledge of its assets as Collateral for, the Obligations, and that the assets of IHM are not material.  Lenders agree to waive the requirement for IHM to provide a Guarantee of the Obligations or pledge its assets as Collateral for the Obligations, in reliance upon the foregoing as well as the agreement of Borrower, hereby expressed, that Borrower shall not permit the assets of IHM to become material, as determined by Lenders in accordance with their customary underwriting standards.

 

 

  

  

  

1.17 Borrower has informed Lenders that the entities Home Health Agency-Broward Inc.,  Suncrest Home Health of MO, Inc., Suncrest Home Health of North Carolina, Inc., Omni Health Management, LLC and Suncrest Home Health of Central Florida, LLC (collectively, “the “Inactive Entities”) are (i) inactive, (ii) have no assets, (iii) have no business operations and (iv) will be dissolved or merged into certain Subsidiaries. Borrower has requested that Lenders acknowledge and agree that the Inactive Entities are not deemed Subsidiaries as defined in the Credit Agreement. Lenders in reliance upon the foregoing and Borrower hereby acknowledge and agree that the Inactive Entitles shall be excepted and excluded from the definition of Subsidiaries under the Credit Agreement, provided that Borrower shall not permit any of the Inactive Entities to become active, have assets, or have business operations.

 

1.18 Borrower has informed Lenders that although the entity Trigg County Home Health, Inc. (“TCHH”) is a direct or indirect Subsidiary of Borrower (i) TCHH is 97% owned by Borrower through Borrower’s subsidiary Suncrest LBL Holdings, Inc. and 3% owned by a minority shareholder (the “Minority Shareholder”), and (ii) the organization documents of TCHH do not expressly authorize TCHH to guaranty, or pledge its assets as Collateral for, the Obligations of Borrower. Lenders agree to temporarily waive the requirement for TCHH to provide a Guarantee of the Obligations or pledge its assets as Collateral for the Obligations, in reliance upon the foregoing, as well as the agreement of Borrower, hereby expressed, that Borrower shall, within sixty (60) days of the effective date of this Amendment: (a) obtain the consents of the shareholders of TCHH and the Minority Shareholder, and whatever other consents are required, in order for TCHH to be authorized to guaranty, and pledge its assets as Collateral for, the Obligations of Borrower and (b) enter into and execute a joinder to the Guaranty Agreement (as defined below) and to the Security Agreement (as defined below).

 

1.19 Borrower has informed Lenders that although the entity Almost Family ACO Services of Tennessee, LLC is a direct or indirect Subsidiary of Borrower (“ACO Services”), ACO Services, is not in good standing. Lenders agree to temporarily waive the requirement for ACO Services to be in good standing in reliance upon the foregoing, as well as the agreement of Borrower, hereby expressed, that Borrower shall, within thirty (30) days of the effective date of this Amendment, obtain good standing for ACO Services.

 

ARTICLE 2.

                                

Conditions to Effectiveness

 

 

2.1 The provisions of Article 1 of this Amendment shall become effective on that date (the “Third Amendment Closing Date”) when, and only when, Agent shall have received this Amendment and each of the documents or instruments set forth below (collectively, for purposes of this Amendment, the “Additional Loan Documents”, all of which upon the satisfaction of all the conditions set forth in this Article 2 shall be deemed part of the “Loan Documents” referred to in the Loan Agreement), executed by the each of the parties hereto and the parties thereto where provided, respectively, and in form and substance satisfactory in all respects to Agent in its sole discretion, and when each of the other conditions set forth below has been fulfilled to the satisfaction of Agent:

 

 

  

  

  

A.           A Consolidated Amended and Restated Guaranty and Ratification Agreement (the “Guaranty Agreement”) entered into by each Subsidiary Guarantor, containing the absolute, joint and several guarantee of payment by each of them, respectively, of the Obligations as modified pursuant to this Amendment, and which shall supercede and replace any and each Guaranty Agreement theretofore given by any Subsidiary Guarantor;

 

B.           A Consolidated Amended and Restated Pledge of Equity Interest (the “Pledge of Equity Interest”) by Borrower as well as any Subsidiary that owns Equity Interest in another Subsidiary, of all the Equity Interest in each Subsidiary of Borrower and each Subsidiary of a Subsidiary, respectively, which shall supersede and replace the analogs of that document executed and delivered in connection with the Original Credit Agreement and the Second Amendment, respectively;

 

C.           A Consolidated Amended and Restated Security Agreement (the “Security Agreement”) by Borrower and each Subsidiary Guarantor which shall supersede and replace the Security Agreements executed and delivered in connection with the Original Credit Agreement and the Second Amendment, respectively;

 

D.           Borrower shall have executed Notes payable to the order of each Lender in the face principal amount set forth for each in Schedule 2.01 to this Amendment;

 

E.           An Incumbency Certificate and Certified Copy of Resolutions for AFI and each of the Subsidiary Guarantors, authorizing the execution and delivery of this Agreement and the other Additional Loan Documents to which each is a party, respectively, and including a copy of the organization documents for and evidence of the valid existence of, any Subsidiary formed or acquired subsequent to December 6, 2013;

 

F.           An opinion of counsel to AFI as to the due authorization, execution, delivery and enforceability of the Additional Loan Documents by and with respect to AFI and each Subsidiary Guarantor, and such other matters as Agent reasonably requests;

 

G.           Borrower shall have paid to Agent, for the ratable benefit of the Lenders, the fee (“Upfront Fee”) agreed by Borrower and allocable among the Lenders according to the amount of each Lender’s Commitment as set forth in Schedule 2.01, as well as any arranger, administration or other fees payable pursuant to any separate letter agreement entered into between Borrower and Agent;

 

H.           The Departing Lender shall have received payment in full for all of the Obligations owing to it under the Credit Agreement (other than the obligations to pay fees and expenses with respect to which the Borrower has not received an invoice, contingent indemnity Obligations and other contingent Obligations owing to it under the Loan Documents), and shall have executed and delivered the signature page to this Amendment provided for it, whereupon its Commitment under the Credit Agreement shall be terminated;

 

I.           The Administrative Agent shall make such reallocations, sales, assignments or other relevant actions in respect of each Lender’s Commitment as are necessary in order that each such Lender’s Commitment and outstanding Revolving Credit Exposure conform with the provisions of the Credit Agreement as modified by this Amendment; and

 

  

  

  

J.           Agent shall have received such other documents, instruments and certificates, if any, as Agent may reasonably request to insure the binding effect in accordance with the terms thereof of the Credit Agreement as modified by this Amendment and the Additional Loan Documents.

 

ARTICLE 3.

                              

Other Provisions

 

3.1 From and after the effective date of this Amendment, the Borrower shall indemnify the Administrative Agent, and hold it harmless from, any and all losses, claims, damages, liabilities and related expenses, including Taxes and the fees, charges and disbursements of any counsel for any of the foregoing, arising in connection with the Administrative Agent’s treating, for purposes of determining withholding Taxes imposed under FATCA, this Amendment as qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

3.2 AFI hereby restates and confirms each of the representations, warranties and covenants contained in the Credit Agreement and the other Loan Documents to which it is a party, as modified by this Amendment and the other Additional Loan Documents, and confirms and agrees that it has no defenses, offsets or counterclaims with respect thereto.  Without limitation of the preceding sentence, AFI represents and warrants that this Amendment and the Additional Loan Documents have been executed and delivered by a representative of AFI and each Subsidiary Guarantor that is a party thereto who is duly authorized to do so and that the same are valid and binding on each.

 

3.3 AFI agrees to reimburse Agent for all expenses incurred by Agent and Lenders in connection with the preparation, execution, delivery and performance of this Amendment, including, without limitation, for reasonable fees of legal counsel to Agent.

 

3.4 Each Lender that is a party to this Amendment that was not a party to the Credit Agreement (a) represents and warrants and agrees with Administrative Agent, Lenders and Borrower that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Amendment that consummate the transactions contemplated by it and to become a Lender under the Credit Agreement as modified by this Amendment, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to become a Lender, (iii) from and after the Third Amendment Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of its Commitment, shall have the obligations of the Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements of the Borrower delivered pursuant to the Credit Agreement and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Amendment and to purchase its Commitment and has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and further agrees that it will (w) deliver to the Administrative Agent any 

 

  

  

  

documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by it, (x) independently and without reliance on the Administrative Agent, any Lender or the Departing Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (y) perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

3.5 Except as expressly modified by this Amendment and the other Additional Loan Documents, all terms and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and effect as they were immediately prior to the execution and delivery of this Amendment, and those terms and conditions as modified are incorporated into the applicable Loan Documents by this reference.  Upon the effectiveness of this Amendment, each reference in the Credit Agreement and the other Loan Documents to the “Credit Agreement” and the “Loan Documents” shall mean and be deemed a reference to the Credit Agreement and the Loan Documents as modified by this Amendment and the other Additional Loan Documents.

 

3.6 This Amendment may not be modified in any respect except in writing signed by the party charged with such modification.  This Amendment constitutes the final, complete and exclusive agreement among Agent, Lenders and AFI concerning its subject matter and neither the Agent, Lenders nor AFI are relying on any oral agreements or understandings of any nature whatsoever with respect thereto.

 

3.7 This Amendment shall be effective notwithstanding that it is executed in counterparts, and a facsimile or other reproduction of a signature of any party to it shall be effective to the same extent as the manual signature of such party, but such party shall furnish its manually signed signature pages to each other party promptly upon request of such other party.

 

3.8 This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky.

 

 

< signature pages follow >

 

  

  

  

< signature page to Third Amendment to Credit Agreement >

 

IN TESTIMONY WHEREOF, witness the signatures on behalf of AFI, Agent,  BOA, FTB and RB effective as of the date first above written.

 

 

	 	
"AFI"

ALMOST FAMILY, INC. a Delaware corporation

	 
	 	 	 	 
	
 

	
By: 

	/s/ C. Steven Guenthner	 
	 	 	C. Steven Guenthner	 
	 	 	President, Principal Financial Officer, Secretary & Treasurer	 
	 	 	 	 

 

 

 

 

  

  

 

< signature page to Third Amendment to Credit Agreement >

 

	 	
"Agent"

JPMORGAN CHASE BANK, N.A., as Administrative Agent for itself as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ James Duffy Baker	 
	 	 	James Duffy Baker	 
	 	 	Division Manager	 
	 	 	 	 

 

 

  

  

  

 

 

< signature page to Third Amendment to Credit Agreement >

 

	 	
'BOA"

BANK OF AMERICA, N.A. as Syndication Agent and for itself as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Sonal Gupta	 
	 	 	Sonal Gupta	 
	 	 	Vice President	 
	 	 	 	 

 

  

  

  

 

< signature page to Third Amendment to Credit Agreement >

 

	 	
"FTB"

FIFTH THIRD BANK, as Documentation Agent for itself as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Vera B. McEvoy	 
	 	 	Vera B. McEvoy	 
	 	 	Vice President	 
	 	 	 	 

 

  

  

  

 

< signature page to Third Amendment to Credit Agreement >

 

	 	
'RB"

REGIONS BANK, for itself as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Ned Spitzer	 
	 	 	Ned Spitzer	 
	 	 	Managing Director	 
	 	 	 	 

 

  

  

  

 

< Departing Lender signature page to Third Amendment to Credit Agreement >

 

The undersigned is executing and delivering this Amendment for the sole purpose of confirming that it is a “Departing Lender” as defined in this Amendment.

 

CITIBANK, N.A., as the Departing Lender

	 	CITIBANK, N.A. as the Departing Lender	 
	 	 	 	 
	
 

	
By: 

	/s/ Alvaro De Velasco	 
	 	 	Alvaro De Velasco	 
	 	 	Vice President	 
	 	 	 	 

 

Attachments

 

--  Schedule 2.01

 

--  Schedule 5.09

 

--  Pricing Grid Rider

 

--  Schedule 3.01

 

 

 

 

  

  

  

Schedule 2.01

 

 

(Commitments of Lenders)

 

 

 

Lender                                                      Amount of Commitment

 

 

	 1.  JPMorgan Chase Bank, N.A.	  $60,000,000.00	 	 
	 	 	 	 
	 2.  Bank of America, N.A	  $60,000,000.00	 	 
	 	 	 	 
	 3. Fifth Third Bank 	  $30,000,000.00	 	 
	 	 	 	 
	 4. Regions Bank 	  $25,000,000.00	 	                                     
	 	 	 	 
	 Total	 $175,000,000	 	 

 

  

  

  

Schedule 5.09

 

 

(Financial Covenants)

 

The consolidated financial statements of Borrower shall, as of each Calculation Date commencing September 30, 2010, reflect compliance with the following financial covenants, determined in accordance with GAAP:

 

A.           The Adjusted Fixed Charge Coverage Ratio shall not be less than 3.00 to 1.00.

 

B.           The Leverage Ratio shall not be greater than 3.50 to 1.00.

 

C.           Net Worth shall not be less than the sum of [i] $130,000,000, plus [ii] 50% of net income, without giving effect to any losses, during each fiscal quarter of Borrower beginning with the quarter ending September 30, 2010, plus [iii] one hundred percent (100%) of the proceeds received by Borrower arising from any issuance of Equity Interests in Borrower after the date of this Agreement, net of reasonable expenses, commissions and fees associated with such issuance, minus [iv] to the extent that the Borrower makes cash repurchases of its Equity Interests in any fiscal year of the Borrower, the amount (the “Share Repurchase Credit”) of all such cash repurchases during such fiscal year not exceeding $10,000,000.

 

  

  

  

Pricing Grid Rider

 

As of each Interest Calculation Date, the CBFR Margin and the LIBO Margin and the Commitment Fee, respectively, shall be that percentage increment as set forth below according to the Leverage Ratio determined as of such Interest Calculation Date:

 

	
LEVEL

	
LEVERAGE

RATIO

	
CBFR

MARGIN

	
LIBO

MARGIN

	
COMMITMENT FEE

	
1.    Less than or equal to 1.00 to 1.00

	
1.25

	
    1.75

	
0.25

	
2.    Greater than 1.00 to 1.00 and less than or equal to 1.50 to 1.00

	
1.50

	
    2.00

	
0.30

	
3.    Greater than 1.50 to 1.00 and less than or equal to 2.00 to 1.00

	
1.75

	
    2.25

	
0.35

	
4.    Greater than 2.00 to 1.00 and less than or equal to 2.50 to 1.00

	
2.00

	
    2.50

	
0.40

	
5.    Greater than 2.50 to 1.00 and less than or equal to 3.00 to 1.00

	
2.25

	
    2.75

	
0.40

	
6.    Greater than 3.00 to 1.00

	
2.50

	
    3.00

	
0.50

Pricing will open at Level 3 above.

 

In the event that the Administrative Agent has not received the financial statements required to be delivered pursuant to Section 5.01(a) or Section 5.01(b) of the Agreement, as applicable, together with the Compliance Certificate pursuant to Section 5.01(c) of the Agreement, by the dates required pursuant to the Agreement, the CBFR Margin, LIBO Margin and Commitment Fee shall be assumed to be and applied in accordance with Level 6 above, commencing as of the date that the applicable financial statements and Compliance Certificate were required to be delivered and continuing until three (3) Business Days following the date the same are actually delivered.

 

  

  

  

 

Schedule 3.01

 

 

	
Count

	
Subsidiary Name

	
Federal ID No.

	
Authorized Capital Stock/Type of Ownership

	
Number of Issued and Outstanding Shares

	
State of Incorporation

	
State ID No.

	
Type of Entity

	
1

	
Adult Day Care of America, Inc.

	
06-1207175

	
1,000 shares of common stock, $.001 par value per share, owned by Almost Family, Inc.

	
1,000

	
DE

	
2128204

	
Corporation

	
2

	
AFAM Merger, Inc.

	
27-2463232

	
100 shares, owned by Almost Family, Inc.

	
100

	
DE

	
4743144

	
Corporation

	
3

	
Cambridge Home Health Care Holdings, Inc.

	
20-0591577

	
100,968.048 shares, owned by National Health Industries, Inc.

	
100,968.048

	
DE

	
3752185

	
Corporation

	
4

	
Cambridge Home Health Care, Inc.

	
34-1772291

	
10 shares, owned by Cambridge Home Health Care Holdings, Inc.

	
10

	
OH

	
866131

	
Corporation

	
5

	
Cambridge Home Health Care, Inc./Private

	
34-1772292

	
10 shares, owned by Cambridge Home Health Care Holdings, Inc.

	
10

	
OH

	
866130

	
Corporation

	
6

	
Caretenders of Cleveland, Inc.

	
61-1306845

	
100 shares owned by National Health Industries, Inc.

	
100

	
KY

	
0418732

	
Corporation

	
7

	
Caretenders of Columbus, Inc.

	
61-1302995

	
100 shares owned by National Health Industries, Inc.

	
100

	
KY

	
0414266

	
Corporation

	
8

	
Caretenders Visiting Services Employment Company, Inc.

	
61-1326749

	
100 shares owned by National Health Industries, Inc.

	
100

	
KY

	
0456266

	
Corporation

	
9

	
National Health Industries, Inc.

	
61-0997496

	
1,000 shares of common stock without par value, owned by Almost Family, Inc.

	
1,000

	
KY

	
0119806

	
Corporation

	
10

	
OMNI Home Health Holdings, Inc.

	  	
10 shares of xxx stock owned by National Health Industries, Inc.

	
10

	
DE

	
4508006

	
Corporation

	
11

	
Patient Care Medical Services, Inc.

	
22-2170708

	
10 shares of common stock; owned by Patient Care, Inc.

	
10

	
NJ

	
100027270

	
Corporation

 

 

  

  

  

	
12

	
Patient Care New Jersey, Inc.

	
20-1574433

	
1,000 shares of common stock; owned by Patient Care, Inc.

	
1,000

	
DE

	
3848463

	
Corporation

	
13

	
Patient Care Pennsylvania, Inc.

	
37-1459396

	
100 shares of common stock; owned by Patient Care, Inc.

	
100

	
DE

	
3623151

	
Corporation

	
14

	
Patient Care, Inc.

	
22-2088938

	
1,000 shares of common stock, $.01 par value per share; owned by AFAM Acquisition, LLC

	
1,000

	
DE

	
2320425

	
Corporation

	
15

	
Priority Care, Inc.

	
06-1482496

	
100 shares of common stock; owned by Patient Care, Inc.

	
100

	
CT

	
561909

	
Corporation

	
16

	
SunCrest Healthcare, Inc

	
20-3701127

	
265,148 shares of common stock owned by National Health Industries, Inc.; 90,667 shares of B-1 Preferred Stock, 19,708 shares of B-2 Preferred Stock, and 403,856 shares of C Preferred Stock all owned by OMNI Home Health Holdings, Inc.

	
779,379

	
GA

	
400237

	
Corporation

	
17

	
SunCrest Home Health of AL, Inc.

	
27-0678962

	
1,000 shares of common stock; owned by SunCrest Healthcare, Inc.

	
1,000

	
AL

	
261-690

	
Corporation

	
18

	
SunCrest Home Health of Claiborne County, Inc.

	
45-1448026

	
1,000 shares of common stock; owned by SunCrest Healthcare, Inc.

	
1,000

	
TN

	
000655066

	
Corporation

	
19

	
SunCrest Home Health of Georgia, Inc.

	
26-1911187

	
100 shares of common stock; owned by SunCrest Healthcare, Inc.

	
100

	
GA

	
2511213

	
Corporation

	
20

	
SunCrest Home Health of Manchester, Inc.

	
27-3742641

	
1,000 shares of common stock; owned by SunCrest Healthcare, Inc.

	
1,000

	
TN

	
000642295

	
Corporation

	
21

	
SunCrest Home Health of Nashville, Inc.

	
27-2258905

	
1,000 shares of common stock; owned by SunCrest Healthcare, Inc.

	
1,000

	
TN

	
000627890

	
Corporation

	
22

	
SunCrest Home Health of South GA, Inc.

	
27-0678757

	
1,000 shares of common stock; owned by SunCrest Healthcare, Inc.

	
1,000

	
GA

	
3037586

	
Corporation

	
23

	
SunCrest LBL Holdings, Inc.

	
27-3742739

	
1,000 shares of common stock; owned by SunCrest Healthcare, Inc.

	
1,000

	
TN

	
000642297

	
Corporation

 

 

  

  

  

	
24

	
SunCrest TeleHealth Services, Inc.

	
27-4199760

	
1,000 shares of common stock; owned by SunCrest Healthcare, Inc.

	
1,000

	
TN

	
000645556

	
Corporation

	
25

	
Tennessee Nursing Services of Morristown, Inc.

	
 62-1049414

	
1,000 shares of common stock owned by SunCrest Home Health of Claiborne County, Inc.

	
1,000

	
TN

	
00060015

	
Corporation

	
26

	
Trigg County Home Health, Inc.

	
26-3539405

	
970 shares of common stock; JV Entity 97% owned by SunCrest LBL Holdings, Inc.

	
970

	
KY

	
0715426

	
Corporation

	
27

	
AFAM Acquisition Ohio, LLC

	
26-3979925

	
100% by National Health Industries, Inc.

	  	
KY

	
0718677

	
LLC

	
28

	
AFAM Acquisition, LLC

	
26-2866404

	
100% by Almost Family, Inc.

	  	
KY

	
0705309

	
LLC

	
29

	
Almost Family ACO Services of Kentucky, LLC

	
61-1166649

	
100% by National Health Industries, Inc.

	  	
KY

	
0888128

	
LLC

	
30

	
Almost Family ACO Services of South Florida, LLC

	
46-5765971

	
100% by National Health Industries, Inc.

	  	
FL

	
L14000077192

	
LLC

	
31

	
Almost Family ACO Services of Tennessee, LLC

	
47-0979130

	
100% by SunCrest Health Care, Inc.

	  	
TN

	
000758873

	
LLC

	
32

	
Almost Family PC of Ft. Lauderdale, LLC

	
26-1260724

	
100% by National Health Industries, Inc.

	  	
FL

	
L07000103414

	
LLC

	
33

	
Almost Family PC of Kentucky, LLC

	
26-1259925

	
100% by National Health Industries, Inc.

	  	
KY

	
0675489

	
LLC

	
34

	
Almost Family PC of SW Florida, LLC

	
26-1261522

	
100% by National Health Industries, Inc.

	  	
FL

	
L07000103411

	
LLC

	
35

	
Almost Family PC of West Palm, LLC

	
26-1263982

	
100% by National Health Industries, Inc.

	  	
FL

	
L07000103413

	
LLC

	
36

	
BGR Acquisition, LLC

	
51-0606314

	
100% by SunCrest Healthcare, Inc.

	  	
FL

	
L06000098860

	
LLC

	
37

	
Caretenders Mobile Medical Services, LLC

	
26-1162933

	
100% by National Health Industries, Inc.

	  	
OH

	
1726247

	
LLC

	
38

	
Caretenders of Jacksonville, LLC

	
20-5890994

	
100% by National Health Industries, Inc.

	  	
FL

	
L06000110767

	
LLC

	
39

	
Caretenders Visiting Services of  District 6, LLC

	
30-0425709

	
100% by National Health Industries, Inc.

	  	
KY

	
0565533

	
LLC

	
40

	
Caretenders Visiting Services of  District 7, LLC

	
30-0425714

	
100% by National Health Industries, Inc.

	  	
KY

	
0565534

	
LLC

	
41

	
Caretenders Visiting Services of  Gainesville, LLC

	
30-0425715

	
100% by National Health Industries, Inc.

	  	
FL

	
L05000016996

	
LLC

 

  

  

  

 

	
42

	
Caretenders Visiting Services of  Hernando County, LLC

	
20-5826497

	
100% by National Health Industries, Inc.

	  	
FL

	
L06000104096

	
LLC

	
43

	
Caretenders Visiting Services of  Kentuckiana, LLC

	
20-3021812

	
100% by National Health Industries, Inc.

	  	
KY

	
0615538

	
LLC

	
44

	
Caretenders Visiting Services of Columbus, LLC

	
20-8428138

	
100% by National Health Industries, Inc.

	  	
OH

	
1676001

	
LLC

	
45

	
Caretenders Visiting Services of Ocala,  LLC

	
20-4522444

	
100% by National Health Industries, Inc.

	  	
FL

	
L06000028455

	
LLC

	
46

	
Caretenders Visiting Services of Orlando, LLC

	
 30-0425717

	
100% by National Health Industries, Inc.

	  	
KY

	
0597949

	
LLC

	
47

	
Caretenders Visiting Services of Pinellas County, LLC

	
20-5826531

	
100% by National Health Industries, Inc.

	  	
FL

	
L06000104100

	
LLC

	
48

	
Caretenders Visiting Services of Southern  Illinois, LLC

	
20-5826553

	
100% by National Health Industries, Inc.

	  	
IL

	
2013258

	
LLC

	
49

	
Caretenders Visiting Services of St. Augustine, LLC

	
20-2910357

	
100% by National Health Industries, Inc.

	  	
FL

	
L05000052409

	
LLC

	
50

	
Caretenders Visiting Services of St. Louis, LLC

	
20-5826598

	
100% by National Health Industries, Inc.

	  	
MO

	
LC0774505

	
LLC

	
51

	
Caretenders VNA of Ohio, LLC

	
27-3756374

	
100% by National Health Industries, Inc.

	  	
OH

	
1970058

	
LLC

	
52

	
Caretenders VS of Boston, LLC

	
26-1258759

	
100% by National Health Industries, Inc.

	  	
MA

	
962269

	
LLC

	
53

	
Caretenders VS of Central KY, LLC

	
26-1259391

	
100% by National Health Industries, Inc.

	  	
KY

	
0675492

	
LLC

	
54

	
Caretenders VS of Lincoln Trail, LLC

	
26-3632764

	
100% by National Health Industries, Inc.

	  	
KY

	
0715613

	
LLC

	
55

	
Caretenders VS of Louisville, LLC

	
26-1264112

	
100% by National Health Industries, Inc.

	  	
KY

	
0675491

	
LLC

	
56

	
Caretenders VS of Northern KY, LLC

	
26-1259246

	
100% by National Health Industries, Inc.

	  	
KY

	
0675495

	
LLC

	
57

	
Caretenders VS of Ohio, LLC

	
26-3706241

	
100% by National Health Industries, Inc.

	  	
OH

	
1812627

	
LLC

	
58

	
Caretenders VS of SE Ohio, LLC

	
45-1139239

	
100% by National Health Industries, Inc.

	  	
OH

	
2007716

	
LLC

	
59

	
Caretenders VS of Western KY, LLC

	
26-1258938

	
100% by National Health Industries, Inc.

	  	
KY

	
0675497

	
LLC

	
60

	
Home Health Agency-Central Pennsylvania, LLC

	
20-1497787

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043051

	
LLC

	
61

	
Home Health Agency-Collier, LLC

	
20-0832146

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043052

	
LLC

	
62

	
Home Health Agency-Hillsborough, LLC

	
59-3757325

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043054

	
LLC

 

  

  

  

 

	
63

	
Home Health Agency-Illinois, LLC

	
59-757324

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043056

	
LLC

	
64

	
Home Health Agency-Indiana, LLC

	
20-1408322

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043055

	
LLC

	
65

	
Home Health Agency-Palm Beaches, LLC

	
01-0713588

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043057

	
LLC

	
66

	
Home Health Agency-Pennsylvania, LLC

	
59-3757322

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043058

	
LLC

	
67

	
Home Health Agency-Philadelphia, LLC

	
20-1408427

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043059

	
LLC

	
68

	
Home Health Agency-Pinellas, LLC

	
59-3757320

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043060

	
LLC

	
69

	
Imperium Health Management, LLC

	
45-2788800

	
JV Entity-70% owned by Almost Family, Inc.)

	  	
KY

	
0794561

	
LLC

	
70

	
IN Homecare Network Central, LLC

	
46-3029953

	
100% by National Health Industries, Inc.

	  	
IN

	
2013061000795

	
LLC

	
71

	
IN Homecare Network North, LLC

	
46-3020499

	
100% by National Health Industries, Inc.

	  	
IN

	
2013061000766

	
LLC

	
72

	
Mederi Caretenders VS of  SE FL, LLC

	
26-1264234

	
100% by National Health Industries, Inc.

	  	
FL

	
L07000103410

	
LLC

	
73

	
Mederi Caretenders VS of Broward, LLC

	
26-1264504

	
100% by National Health Industries, Inc.

	  	
FL

	
L07000103409

	
LLC

	
74

	
Mederi Caretenders VS of SW FL, LLC

	
26-1264384

	
100% by National Health Industries, Inc.

	  	
FL

	
L07000103412

	
LLC

	
75

	
Mederi Caretenders VS of Tampa, LLC

	
26-1248096

	
100% by National Health Industries, Inc.

	  	
FL

	
L07000104055

	
LLC

	
76

	
OMNI Home Health Services, LLC

	
26-2010556

	
100% by OMNI Home Health Holdings, Inc.

	  	
DE

	
4508002

	
LLC

	
77

	
OMNI Home Health-District 1, LLC

	
20-0527436

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043061

	
LLC

	
78

	
OMNI Home Health-District 2, LLC

	
20-0527566

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043062

	
LLC

	
79

	
OMNI Home Health-District 4, LLC

	
20-1657488

	
 JV Entity 70% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043063

	
LLC

	
80

	
OMNI Home Health-Hernando, LLC

	
59-3741300

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043064

	
LLC

	
81

	
OMNI Home Health-Jacksonville, LLC

	
59-3754764

	
100% by OMNI Home Health Services, LLC

	  	
FL

	
L08000043066

	
LLC

	
82

	
Patient Care Connecticut, LLC

	
27-0726569

	
100% by Priority Care, Inc.

	  	
CT

	
0979769

	
LLC

	
83

	
Princeton Home Health, LLC

	
20-5081107

	
100% by National Health Industries, Inc.

	  	
AL

	
DLL 480-611

	
LLC

	
84

	
SunCrest Companion Services, LLC

	
26-3549012

	
100% by SunCrest Healthcare, Inc.

	  	
TN

	
000559681

	
LLC

 

  

  

  

 

	
85

	
SunCrest Healthcare of East Tennessee, LLC

	
26-3548962

	
100% by SunCrest Healthcare, Inc.

	  	
TN

	
000588238

	
LLC

	
86

	
SunCrest Healthcare of Middle TN, LLC

	
71-1017674

	
100% by SunCrest Healthcare, Inc.

	  	
TN

	
000534537

	
LLC

	
87

	
SunCrest Healthcare of West Tennessee, LLC

	
37-1550880

	
100% by SunCrest Healthcare, Inc.

	  	
TN

	
000559681

	
LLC

	
88

	
SunCrest Home Health of Tampa, LLC

	
27-3742788

	
JV Entity 60% owned by SunCrest Healthcare, Inc.

	  	
FL

	
L10000107528

	
LLC

	
89

	
SunCrest Home Health-Southside, LLC

	
45-2283548

	
100% by SunCrest Home Health of Georgia, Inc.

	  	
GA

	
4014293

	
LLC

	
90

	
SunCrest Outpatient Rehab Services of TN, LLC

	
27-0311512

	
100% by SunCrest Healthcare, Inc.

	  	
TN

	
000603548

	
LLC

	
91

	
SunCrest Outpatient Rehab Services, LLC

	
26-1910553

	
100% by SunCrest Healthcare, Inc.

	  	
TN

	
563554

	
LLCexhibit10_2.htm

Exhibit 10.2

CONSOLIDATED AMENDED AND RESTATED GUARANTY

 

AND RATIFICATION AGREEMENT

 

THIS CONSOLIDATED AMENDED AND RESTATED GUARANTY AND RATIFICATION AGREEMENT (the “Guaranty Agreement”) is made and entered into as of February _12_, 2015, by and among [i] each of the SUBSIDIARY GUARANTORS identified as such on the signature pages to this Agreement (referred to herein as “Guarantor” or “Guarantors”), for the ratable benefit of [ii] the LENDERS as defined in that certain Credit Agreement (“Original Credit Agreement”) dated as of December 2, 2010, as modified by a letter agreement dated as of December 10, 2012, a Second Amendment to Credit Agreement (“Second Amendment”) dated as of December 6, 2013, and a Third Amendment to Credit Agreement dated as of the date hereof (“Third Amendment”) (collectively, the “Credit Agreement”; certain capitalized terms used in this Agreement have the meaning set forth for them in the Credit Agreement unless expressly otherwise defined in this Agreement and are incorporated by reference herein) entered into in each case among ALMOST FAMILY, INC., a Delaware corporation (“Borrower”), JPMORGAN CHASE BANK, N.A., acting as Administrative Agent (“Administrative Agent”) thereunder, and the Lenders party thereto.

 

RECITALS

 

A. Each Guarantor is a direct or indirect subsidiary of the Borrower.

 

B. Pursuant to the Original Credit Agreement, certain of the Guarantors that are parties to this Guaranty Agreement also were parties to a Guaranty Agreement (“Original Guaranty Agreement”), Pledge of Equity Interests (“Original Pledge of Equity Interests”), and Security Agreement (“Original Security Agreement”) pursuant to which those Guarantors [i] guaranteed payment to the Lenders that were parties to the Original Credit Agreement of the Obligations, [ii] together with the Borrower, granted a security interest to Administrative Agent for the benefit of those Lenders in all or substantially all personal property of those Subsidiary Guarantors and, [iii] as applicable, and together with the Borrower, pledged to the Administrative Agent for the ratable benefit of the Lenders a security interest in the Equity Interest of the Subsidiary Guarantors owned by them, respectively.

 

C. In conjunction with the execution and delivery of the Second Amendment and the OMNI Acquisition referred to therein, certain of the Guarantors that are a party to this Guaranty Agreement but were not parties to the Original Guaranty Agreement, Original Security Agreement and Original Pledge of Equity Interest (collectively, the “Original Ancillary Documents”) executed and delivered a Guaranty Agreement (the “OMNI Acquisition Guaranty Agreement”), Security Agreement (“OMNI Acquisition Security Agreement”), and, as applicable, Pledge of Equity Interests (“OMNI Acquisition Pledge of Equity Interests”), each dated as of December 6, 2013 (collectively, the “OMNI Acquisition Ancillary Documents”) effecting, respectively, the guaranty of payment of the Obligations, pledge of all or substantially all personal property as Collateral for the Obligations and, as applicable, pledge of Equity Interest, as Collateral for the Obligations.

 

  

  

  

D. In conjunction with and as a condition to the modifications to the Loan Documents effected by the Third Amendment, the Lenders have required and the Guarantors have agreed to consolidate, and amend and restate as set forth herein the provisions of the Original Guaranty Agreement and the Omni Acquisition Guaranty Agreement, and to ratify the obligations of each under, as applicable, the Original Security Agreement, Original Pledge of Equity Interests, OMNI Acquisition Security Agreement and OMNI Acquisition Pledge of Equity Interests, after giving effect to the transactions effected by the Third Amendment, all in accordance with the provisions contained herein.

 

NOW THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged by the Guarantors, to satisfy as aforesaid one of the requirements pursuant to the Third Amendment, and acknowledging that Lenders in doing so are relying on this Guaranty Agreement, Guarantors, for themselves and their respective successors (including, without limitation, by operation of law) and assigns, hereby unconditionally and jointly and severally (together with any other guarantor of all or any part of the Obligations hereinafter described, whether or not such guarantor is a party to this Guaranty Agreement) guarantees to Lenders, Administrative Agent, the Lead Arranger, and to each Affiliate of the Lenders, the Administrative Agent and the Lead Arranger, and their respective successors and assigns in each case, the prompt payment when due and at all times thereafter of all of the Obligations; provided, however, anything contained in this Guaranty Agreement to the contrary notwithstanding, [i] as provided in the Credit Agreement, the Obligations guaranteed pursuant hereto do not include Excluded Swap Obligations, and [ii] the maximum aggregate liability of Guarantors hereunder shall not exceed $250,000,000.00 (the “Amount Limitation”), plus interest and fees constituting part of the Obligations, and fees, charges and costs of collecting the Obligations, including reasonable attorneys’ and reasonable paralegal fees.

 

This Guaranty Agreement is a continuing guaranty and shall remain in full force and effect so long as any of the Obligations have not been fully paid or performed; provided, however, anything contained in this Guaranty Agreement to the contrary notwithstanding, for purposes of KRS 371.065 this Guaranty Agreement shall terminate on January 31, 2025, except that such termination shall not affect the liability of Guarantors with respect to [a] Obligations created or incurred prior to such date, or [b] extension or renewals of, interest accruing on, or fees, costs or expenses, including reasonable attorneys’ fees and reasonable paralegal fees, incurred with respect to, such Obligations on or after such date.  The liability of Guarantors under this Guaranty Agreement shall continue, notwithstanding the payment in full of the Obligations, if any payments made on the Obligations are subsequently recovered from Lenders under any federal, state or other bankruptcy, insolvency or similar law. Lenders shall have the right of immediate recourse against the Guarantors for full and immediate payment of the Obligations guaranteed at any time after the Obligations, or any part thereof, have not been paid in full according to the tenor and under the terms of the instruments governing such Obligations, whether on demand, at fixed maturity, or maturity accelerated by reason of a default (each reference in this Guaranty Agreement to rights and entitlements of Lenders and actions or omissions of Lenders in connection with the enforcement of this Guaranty Agreement shall be construed to include rights, entitlements, acts and omissions of the Administrative Agent acting on behalf of the Lenders pursuant to the Credit Agreement, whether or not expressly so indicated).

 

  

  

  

This Guaranty Agreement is a guaranty of payment, not of collection, and Guarantors therefore agree that Lenders shall not be obligated prior to or as a condition to seeking recourse against or receiving payment from Guarantors, to do any of the following (although Lenders may do so, in whole or in part, at their sole option), all of which are hereby unconditionally waived by Guarantors.

 

1. take any steps whatsoever to collect from the Borrower or to file a claim of any kind against the Borrower; or

 

2. take any steps whatsoever to foreclose, realize on or deal in any manner with the Collateral; or

 

3. in any other respect exercise any diligence whatever in collecting or attempting to collect any of the Obligations by any means.

 

The liability of Guarantors for payment of the Obligations shall be absolute and unconditional, and nothing whatever except actual full payment to the Lenders of all the Obligations shall operate to discharge Guarantor’s liability.  Accordingly, each Guarantor unconditionally and irrevocably waives each and every defense which, under principles of guarantee or suretyship law, would otherwise operate to impair or diminish the liability of Guarantor.  Without limiting the generality of the foregoing, each Guarantor agrees that none of the following shall diminish or impair the liability of Guarantor in any respect (all of which may be done without notice to Guarantor of any kind):

 

A. any extensions or renewals (regardless of the duration of such renewal term) of any of the Obligations, or any modifications, indulgences, adjustments, forbearances, waivers, compromises, settlements, or variations of, with regard to, affecting or in connection with the interest rate, times of payment of principal or interest, or any of the other terms of any of the Obligations or of any agreement entered into with the Borrower, Guarantor or any other Person liable or having granted Collateral for or otherwise having entered into an agreement in connection with any part of the Obligations;

 

B. the voluntary or involuntary discharge or release of any of the Obligations, or of any Person liable therefor, by reason of bankruptcy or insolvency laws or otherwise;

 

C. the acceptance or release, with or without substitution, by Administrative Agent of any Collateral or other guaranty, or Collateral for such other guaranty, or any settlement, compromise or extension with respect to any Collateral, other guaranty or Collateral security for such other guaranty;

 

D. the invalidity, illegality or unenforceability of all or any part of the Obligations, or any document or agreement executed in connection with the Obligations, for any reason whatsoever, including without limitation the fact that (i) the act of creating the Obligations or any part thereof is or was ultra vires, (ii) the officers or representatives executing the documents or otherwise creating the Obligations acted in excess of their authority, (iii)  the Borrower has valid defenses, claims or offsets (whether at law, in equity or by agreement) which render the Obligations wholly or partially uncollectible, (iv) the creation, performance or repayment of the Obligations (or the execution, delivery and performance of any document or instrument representing part of the Obligations or executed in connection with the Obligations, or given to secure the repayment of the Obligations) is illegal, uncollectible, legally impossible or unenforceable, or (v) the documents or instruments pertaining to the Obligations have been forged or otherwise are irregular or not genuine or authentic;

 

  

  

  

E. any full or partial release of the liability of the Borrower on the Obligations or any part thereof, of any Guarantor or any guarantors now or hereafter that are not parties to this Guaranty Agreement, or any other Person now or hereafter liable, whether directly or indirectly, jointly, severally, or jointly and severally, to pay, perform, guarantee or assure the payment of the Obligations or any part thereof;

 

F. any surrender, exchange, deterioration, waste, loss or impairment (including without limitation negligent, willful, unreasonable or unjustifiable impairment) of any Collateral;

 

G. the fact that any Collateral or Lien contemplated or intended to be given, created or granted as security for the repayment of the Obligations shall not be properly perfected or created, or shall prove to be unenforceable or subordinate to any other security interest or lien;

 

H. the application or allocation by Lenders of payments, collections or credits on any portion of the Obligations regardless of what portion of the Obligations remains unpaid;

 

I. the creation of any new Obligations covered by this Guaranty Agreement or renewal of any existing Obligations;

 

J. the extension of credit by Lenders to the Borrower in an aggregate amount exceeding the Amount Limitation;

 

K. the making of a demand, or absence of demand, for payment of the Obligations or giving, or failing to give, any notice of dishonor or protest or any other notice;

 

L. the voluntary or involuntary subordination by any Lender of its claim(s) with regard to the Obligations or any collateral security for the Obligations;

 

M. disclosure by any Lender or the failure of Lender to disclose to Guarantor any information regarding the Borrower or any other guarantor of the Obligations;

 

N. any change in the Borrower or the relationship of Guarantor to the Borrower or any other guarantor of the Obligations; or

 

O. any lack of diligence by any Lender in collecting or attempting to collect any of the Obligations or attempting to realize upon the value of any Collateral.

 

  

  

  

Each Guarantor unconditionally waives:

 

A. any acceptance or notice of acceptance of this Guaranty Agreement;

 

B. any set-offs or counterclaims against any Lender which would impair Lender’s rights against Guarantors hereunder;

 

C. any and all rights of subrogation, reimbursement, indemnity, contribution, recourse or other recovery against the Borrower to the extent any of the same would impair Lender’s rights against the Borrower or the Collateral; and

 

D. to the maximum extent permitted by law, any notice to which Guarantor may be otherwise entitled at law or in equity.

 

Each Guarantor confirms to Lender that Guarantor independently and without any reliance upon any advice or information from Lender in determining whether to enter into this Guaranty has investigated the operations, business and finances of the Borrower to Guarantor’s satisfaction and has adequate means of assessing those factors in the future, and acknowledges and agrees that Lender shall have no duty or obligation to advise Guarantor or supply Guarantor with any information whatsoever concerning the present or future financial condition or business or affairs of the Borrower.

 

Each Guarantor agrees that in the event of any bankruptcy, reorganization, winding up, or similar proceedings with respect to the Borrower, no limitation on the liability of the Borrower on any of the Obligations that may now or hereafter be imposed by any federal, state or other statute, law, regulation or judicial or administrative determination applicable to such proceedings shall in any way limit the obligation hereunder of the Guarantor, which obligation is co-extensive with the liability of the Borrower as set forth in the Obligations without regard to any such limitation.  In the event any payment by the Borrower to Lender is held to constitute a preference under the bankruptcy laws, or for any other reason any Lender is required to refund such payment or pay the amount thereof to any other party, such payment by Lender to the Borrower shall not constitute a release of Guarantor from any liability hereunder but Guarantor agrees to pay such amount to Lender upon demand.

 

It is the intention of each Guarantor and Lenders that the amount of the Obligations guaranteed by Guarantor pursuant to this Guaranty Agreement shall not be in excess of the maximum amount permitted by fraudulent conveyance, fraudulent transfer or similar laws applicable to the Guarantor.  Accordingly, notwithstanding anything to the contrary contained in this Guaranty Agreement or any other agreement or instrument now or hereafter executed in connection with any of the Obligations, the amount of the Obligations guaranteed by each Guarantor by this Guaranty Agreement shall be limited to such amount which after giving effect thereto [i] would not render Guarantor insolvent, [ii] would not result in the fair salable value of the assets of Guarantor being less than the amount required to pay Guarantor’s debts and other liabilities (including contingent liabilities) as they mature, or [iii] leave Guarantor with unreasonably small capital to carry out Guarantor’s business as now conducted and as proposed to be conducted, including Guarantor’s capital needs, as such concepts described in [i], [ii] and [iii] of this paragraph are determined under applicable law, if the obligations of Guarantor hereunder would otherwise be set aside, terminated, discharged, annulled or voided for such reason by a court of competent jurisdiction in a proceeding actually pending before such court.  For purposes of this paragraph, the term “applicable law” means as to each Guarantor each statute, law, ordinance, regulation, order, judgment, injunction or decree of the United States or any state or commonwealth, any municipality, any foreign country, or any territory, possession or tribunal applicable to Guarantor.

 

  

  

  

Each Guarantor represents and warrants to Lender that:

 

A. The execution, delivery and performance by Guarantor of this Guaranty Agreement [i] is authorized by all documents, agreements, and stipulations limiting the activities of Guarantor, [ii] does not require approval of any Governmental Authority, [iii] will not violate any provision of law, any order of any court or any Governmental Authority, or any indenture, agreement, or other instrument to which Guarantor is a party or by which Guarantor or any of Guarantor’s property is bound, [iv] will not be in conflict with, result in a breach of or constitute (with or without due notice and/or lapse of time) a default under any such indenture, agreement or other instrument, and [v] will not result in the creation or imposition of any Lien, charge or encumbrance of any nature whatsoever upon any of Guarantor’s property or assets.  This Guaranty Agreement constitutes the legal, valid and binding obligation of Guarantor, enforceable in accordance with its terms.

 

B. Except as otherwise may be disclosed pursuant to the Credit Agreement, there is no action, suit or proceeding pending, or to the knowledge of Guarantor threatened, against or affecting Guarantor or involving the validity or enforceability of this Guaranty, including before or by any Governmental Authority, and Guarantor is not in default with respect to any order, writ, judgment, decree or demand of any court or other Governmental Authority.

 

C. Neither this Guaranty nor any certificate or other document furnished to Lender by or on behalf of Guarantor pursuant to any of the Obligations contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements contained herein and therein not misleading.  Except as otherwise may be disclosed pursuant to the Credit Agreement, there are no facts known to Guarantor that, individually or in the aggregate, materially adversely affect or involve any substantial possibility of materially adversely affecting Guarantor’s business condition or affairs, properties or assets considered as an entirety.

 

The liability of each Guarantor as to the Obligations guaranteed hereby shall be joint and several with any and each other Subsidiary Guarantor of all or any portion of the Obligations, each Guarantor acknowledging that it is a Subsidiary Guarantor as defined in the Credit Agreement.

 

This Guaranty Agreement shall inure to the benefit of Administrative Agent and Lenders and their respective successors and assigns, including each and every holder or owner of any of the Obligations guaranteed hereby and this Guaranty Agreement shall be deemed a separate contract with each such holder and owner.

 

No amendment, modification or waiver of this Guaranty Agreement shall be deemed to be made by any Lender unless in a writing signed by the Administrative Agent, and any such amendment, modification or waiver shall be strictly construed.  No waiver by Administrative Agent shall be construed or deemed to be a waiver of any other provision or condition of this Guaranty Agreement or a waiver of a subsequent breach of the same provision or condition.

 

  

  

  

Without limitation of the other Obligations, each Guarantor shall be liable for and shall pay to Administrative Agent and Lenders all expenses, costs and charges, of any nature whatsoever, including, without limitation, reasonable attorneys’ fees and reasonable paralegal fees, incurred by Lender in enforcing or seeking to enforce any of the rights of Administrative Agent and Lenders under this Guaranty Agreement or collecting or seeking to collect any amounts payable under this Guaranty Agreement.

 

The invalidity or unenforceability of any one or more provisions of this Guaranty Agreement shall not impair the validity and enforceability of any of the other provisions of this Guaranty Agreement.

 

Each Guarantor irrevocably designates Borrower as the agent for Guarantor for the purpose of receiving any notices from Administrative Agent or any Lender pursuant to this Guaranty Agreement and agrees that notices given by Administrative Agent or any Lender to the Borrower shall be effective as notice to Guarantor if given in a manner stipulated by the Credit Agreement.

 

This Guaranty Agreement was negotiated in the Commonwealth of Kentucky and delivered by Guarantors and accepted by Administrative Agent for the benefit of Lenders in the Commonwealth of Kentucky, and proceeds of the Obligations have been and/or will be disbursed from the Commonwealth of Kentucky, which state each Guarantor and Administrative Agent and Lenders agree has a substantial relationship to Guarantors and Administrative Agent and Lenders and to the underlying transaction in connection with which this Guaranty Agreement is delivered.  This Guaranty Agreement, including matters of construction, validity and performance, and the obligations arising hereunder, shall be construed in accordance with and otherwise governed in all respects by the laws of the Commonwealth of Kentucky applicable to contracts made and performed in such state and any applicable law of the United States of America, and no defense given or allowed by the laws of any other state or country shall be interposed in any action hereon unless such defense is also given or allowed by the laws of the Commonwealth of Kentucky.

 

This Guaranty Agreement supplements and is in addition to any other guaranties given by any Guarantor and any other Persons, respectively, of the Obligations, and shall not be deemed to be in substitution for nor otherwise impair in any manner the enforceability of such other guaranties against Guarantor or any such other Person.

 

Each Guarantor acknowledges that the successful operation and condition of each of the Obligors is dependent on the continued successful performance of the functions of the group of the Obligors as a whole and the successful operation of each of the Obligors is dependent on the successful performance and operation of each other Obligor.  Each Obligor expects to derive benefit (and its board of directors or other governing body has determined that it may reasonably be expected to derive benefit), directly and indirectly, from (a) successful operations of each of the other Obligors and (b) the credit extended by the Lenders to the Borrower pursuant to the Credit Agreement, both in their separate capacities and as members of the group of companies.  Each Guarantor has determined that execution, delivery, and performance of this Agreement and any other Loan Documents to be executed by such Guarantor is within its purpose, in furtherance of its direct and/or indirect business interests, will be of direct and indirect benefit to such Guarantor, and is in its best interest.

 

  

  

  

No Guarantor hereunder shall be deemed to be a guarantor of any Swap Obligations if such Guarantor is not a Qualified ECP Guarantor.

 

Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Guarantor to honor all of its obligations under this Guarantee in respect of a Swap Obligation (provided, however, that each Qualified ECP Guarantor shall only be liable under this paragraph for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this paragraph or otherwise under this Guaranty Agreement  voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  Except as otherwise provided herein, the obligations of each Qualified ECP Guarantor under this paragraph shall remain in full force and effect until the termination of all Swap Obligations.  Each Qualified ECP Guarantor intends that this paragraph constitute, and this paragraph shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

Each Guarantor ratifies all of its obligations under and agreements set forth in the Original Ancillary Documents and OMNI Acquisition Ancillary Documents to which it is a party, including after giving effect to the transactions contemplated by the Third Amendment and the consolidation of the Original Guaranty Agreement and OMNI Acquisition Guaranty Agreement into this Guaranty Agreement, and represents, warrants and agrees that it has no offsets, defenses or counterclaims to or under any of them.

 

This Guaranty Agreement consolidates, amends and restates, as aforesaid, the Original Guaranty Agreement and the OMNI Acquisition Guaranty Agreement, and Administrative Agent by its acceptance of this Guaranty Agreement acknowledges the same to be terminated.

 

Each Guarantor hereby irrevocably consents to the jurisdiction of any state or federal court located within the County of Jefferson, Commonwealth of Kentucky in connection with any action or proceeding pertaining to this Guaranty Agreement or the Obligations, and irrevocably agrees that, subject to Administrative Agent’s sole and absolute election, any actions relating to the Obligations shall be litigated in such courts, and each Guarantor waives any objection that Guarantor may have based on improper venue or forum non conveniens to the conduct of any proceeding in any such court.  Nothing contained in this paragraph shall affect the right of Administrative Agent to bring any action or proceeding against Guarantor or Guarantor’s property in the courts of any other jurisdiction.

 

  

  

  

THE ADMINISTRATIVE AGENT, LENDERS AND GUARANTORS ACKNOWLEDGE THAT THE TIME AND EXPENSE REQUIRED FOR TRIAL BY JURY EXCEED THE TIME AND EXPENSE REQUIRED FOR A BENCH TRIAL AND HEREBY KNOWINGLY, VOLUNTARILY, UNCONDITIONALLY AND IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, AND AFTER HAVING CONSULTED OR HAVING HAD AMPLE OPPORTUNITY TO CONSULT THEIR RESPECTIVE LEGAL COUNSEL CONCERNING THE CONSEQUENCES OF SUCH WAIVER, TRIAL BY JURY IN ANY ACTION OR OTHER PROCEEDING (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) BROUGHT TO ENFORCE OR DEFEND AGAINST COLLECTION OF OR OTHERWISE IN CONNECTION WITH THIS GUARANTY AGREEMENT OR THE OTHER LOAN DOCUMENTS.

 

<Signature Pages Follow>

 

  

  

  

<Signature Page to Consolidated Amended and Restated Guaranty and Ratification Agreement>

 

IN TESTIMONY WHEREOF, witness the signature of Guarantors effective as of the date first above set forth.

 

 

“Guarantors”

 

	
1

	
ADULT DAY CARE OF AMERICA, INC. , a Delaware corporation

	
2

	
AFAM MERGER, INC., a Delaware corporation

	
3

	
CAMBRIDGE HOME HEALTH CARE, INC., an Ohio corporation

	
4

	
CAMBRIDGE HOME HEALTH CARE, INC./PRIVATE, an Ohio corporation

	
5

	
CAMBRIDGE HOME HEALTH CARE HOLDINGS, INC., a Delaware corporation

	
6

	
CARETENDERS OF CLEVELAND, INC., a Kentucky corporation

	
7

	
CARETENDERS OF COLUMBUS, INC., a Kentucky corporation

	
8

	
CARETENDERS VISITING SERVICES EMPLOYMENT COMPANY, INC., a Kentucky corporation

	
9

	
NATIONAL HEALTH INDUSTRIES, INC., a Kentucky corporation

	
10

	
OMNI HOME HEALTH HOLDINGS, INC., a Delaware corporation

	
11

	
PATIENT CARE MEDICAL SERVICES, INC., a New Jersey corporation

	
12

	
PATIENT CARE NEW JERSEY, INC., a Delaware corporation

 

 

  

  

  

	
13

	
PATIENT CARE PENNSYLVANIA, INC., a Delaware corporation

	
14

	
PATIENT CARE, INC., a Delaware corporation

	
15

	
PRIORITY CARE, INC., a Connecticut corporation

	
16

	
SUNCREST HEALTHCARE, INC., a Georgia corporation

	
17

	
SUNCREST HOME HEALTH OF AL, INC., an Alabama corporation

	
18

	
SUNCREST HOME HEALTH OF CLAIBORNE COUNTY, INC., a Tennessee corporation

	
19

	
SUNCREST HOME HEALTH OF GEORGIA, INC., a Georgia corporation

	
20

	
SUNCREST HOME HEALTH OF MANCHESTER, INC., a Tennessee corporation

	
21

	
SUNCREST HOME HEALTH OF NASHVILLE, INC., a Tennessee corporation

	
22

	
SUNCREST HOME HEALTH OF SOUTH GA, INC., a Georgia corporation

	
23

	
SUNCREST LBL HOLDINGS, INC., a Tennessee corporation

	
24

	
SUNCREST TELEHEALTH SERVICES, INC., a Tennessee corporation

	
25

	
TENNESSEE NURSING SERVICES OF MORRISTOWN, INC., a Tennessee corporation

	
26

	
AFAM ACQUISITION, LLC, a Kentucky limited liability company

 

 

  

  

  

	
27

	
AFAM ACQUISITION OHIO, LLC, a Kentucky limited liability company

	
28

	
ALMOST FAMILY ACO SERVICES OF KENTUCKY, LLC, a Kentucky limited liability company

	
29

	
ALMOST FAMILY ACO SERVICES OF SOUTH FLORIDA, LLC, a Florida limited liability company

	
30

	
ALMOST FAMILY ACO SERVICES OF TENNESSEE, LLC, a Tennessee limited liability company

	
31

	
ALMOST FAMILY PC OF FT. LAUDERDALE, LLC, a Florida limited liability company

	
32

	
ALMOST FAMILY PC OF KENTUCKY, LLC, a Kentucky limited liability company

	
33

	
ALMOST FAMILY PC OF SW FLORIDA, LLC, a Florida limited liability company

	
34

	
ALMOST FAMILY PC OF WEST PALM, LLC, a Florida limited liability company

	
35

	
BGR ACQUISITION, LLC, a Florida limited liability company

	
36

	
CARETENDERS MOBILE MEDICAL SERVICES, LLC, an Ohio limited liability company

	
37

	
CARETENDERS OF JACKSONVILLE, LLC, a Florida limited liability company

	
38

	
CARETENDERS VISITING SERVICES OF  DISTRICT 6, LLC, a Kentucky limited liability company

	
39

	
CARETENDERS VISITING SERVICES OF  DISTRICT 7, LLC, a Kentucky limited liability company

 

  

  

  

 

	
40

	
CARETENDERS VISITING SERVICES OF  GAINESVILLE, LLC, a Florida limited liability company

	
41

	
CARETENDERS VISITING SERVICES OF  HERNANDO COUNTY, LLC, a Florida limited liability company

	
42

	
CARETENDERS VISITING SERVICES OF  KENTUCKIANA, LLC, a Kentucky limited liability company

	
43

	
CARETENDERS VISITING SERVICES OF COLUMBUS, LLC, a Ohio limited liability company

	
44

	
CARETENDERS VISITING SERVICES OF OCALA,  LLC, a Florida limited liability company

	
45

	
CARETENDERS VISITING SERVICES OF ORLANDO, LLC, a Kentucky limited liability company

	
46

	
CARETENDERS VISITING SERVICES OF PINELLAS COUNTY, LLC, a Florida limited liability company

	
47

	
CARETENDERS VISITING SERVICES OF SOUTHERN  ILLINOIS, LLC, an Illinois limited liability company

	
48

	
CARETENDERS VISITING SERVICES OF ST. AUGUSTINE, LLC, a Florida limited liability company

	
49

	
CARETENDERS VISITING SERVICES OF ST. LOUIS, LLC, a Missouri limited liability company

	
50

	
CARETENDERS VNA OF OHIO, LLC, an Ohio limited liability company

 

 

  

  

  

	
51

	
CARETENDERS VS OF BOSTON, LLC, a Massachusetts limited liability company

	
52

	
CARETENDERS VS OF CENTRAL KY, LLC, a Kentucky limited liability company

	
53

	
CARETENDERS VS OF LINCOLN TRAIL, LLC, a Kentucky limited liability company

	
54

	
CARETENDERS VS OF LOUISVILLE, LLC, a Kentucky limited liability company

	
55

	
CARETENDERS VS OF NORTHERN KY, LLC, a Kentucky limited liability company

	
56

	
CARETENDERS VS OF OHIO, LLC, an Ohio limited liability company

	
57

	
CARETENDERS VS OF SE OHIO, LLC, an Ohio limited liability company

	
58

	
CARETENDERS VS OF WESTERN KY, LLC, a Kentucky limited liability company

	
59

	
HOME HEALTH AGENCY- BROWARD, LLC, a Florida limited liability company

	
60

	
HOME HEALTH AGENCY-CENTRAL PENNSYLVANIA, LLC, a Florida limited liability company

	
61

	
HOME HEALTH AGENCY-COLLIER, LLC, a Florida limited liability company

	
62

	
HOME HEALTH AGENCY-HILLSBOROUGH, LLC, a Florida limited liability company

	
63

	
HOME HEALTH AGENCY-ILLINOIS, LLC, a Florida limited liability company

 

  

  

  

 

	
64

	
HOME HEALTH AGENCY-INDIANA, LLC, a Florida limited liability company

	
65

	
HOME HEALTH AGENCY-PALM BEACHES, LLC, a Florida limited liability company

	
66

	
HOME HEALTH AGENCY-PENNSYLVANIA, LLC, a Florida limited liability company

	
67

	
HOME HEALTH AGENCY-PHILADELPHIA, LLC, a Florida limited liability company

	
68

	
HOME HEALTH AGENCY-PINELLAS, LLC, a Florida limited liability company

	
69

	
IMPERIUM HEALTH MANAGEMENT, LLC, a Kentucky limited liability company

	
70

	
IN HOMECARE NETWORK CENTRAL, LLC, an Indiana limited liability company

	
71

	
IN HOMECARE NETWORK NORTH, LLC, an Indiana limited liability company

	
72

	
MEDERI CARETENDERS VS OF  SE FL, LLC, a Florida limited liability company

	
73

	
MEDERI CARETENDERS VS OF BROWARD, LLC, a Florida limited liability company

	
74

	
MEDERI CARETENDERS VS OF SW FL, LLC, a Florida limited liability company

	
75

	
MEDERI CARETENDERS VS OF TAMPA, LLC, a Florida limited liability company

 

 

  

  

  

	
76

	
OMNI HOME HEALTH SERVICES, LLC, a Delaware limited liability company

	
77

	
OMNI HOME HEALTH-DISTRICT 1, LLC, a Florida limited liability company

	
78

	
OMNI HOME HEALTH-DISTRICT 2, LLC, a Florida limited liability company

	
79

	
OMNI HOME HEALTH-DISTRICT 4, LLC, a Florida limited liability company

	
80

	
OMNI HOME HEALTH-HERNANDO, LLC, a Florida limited liability company

	
81

	
OMNI HOME HEALTH-JACKSONVILLE, LLC, a Florida limited liability company

	
82

	
PATIENT CARE CONNECTICUT, LLC, a Connecticut limited liability company

	
83

	
PRINCETON HOME HEALTH, LLC, an Alabama limited liability company

	
84

	
SUNCREST COMPANION SERVICES, LLC, a Tennessee limited liability company

	
85

	
SUNCREST HEALTHCARE OF EAST TENNESSEE, LLC, a Tennessee limited liability company

	
86

	
SUNCREST HEALTHCARE OF MIDDLE TN, LLC, a Tennessee limited liability company

	
87

	
SUNCREST HEALTHCARE OF WEST TENNESSEE, LLC, a Tennessee limited liability company

 

  

  

  

 

	
88

	
SUNCREST HOME HEALTH OF TAMPA, LLC, a Florida limited liability company

	
89

	
SUNCREST HOME HEALTH-SOUTHSIDE, LLC, a Georgia limited liability company

	
90

	
SUNCREST OUTPATIENT REHAB SERVICES OF TN, LLC, a Tennessee limited liability company

	
91

	
SUNCREST OUTPATIENT REHAB SERVICES, LLC, an Alabama limited liability company

	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ C. Steven Guenthner	 
	 	 	C. Steven Guenthner, as President, Principal Officer, Secretary &	 
	 	 	Treasurer of each Subsidiary Guarantor designated as numbers 1-91 above	 
	 	 	 	 

 

  

  

  

<Signature Page to Consolidated Amended and Restated Guaranty and Ratification Agreement>

 

 

Accepted on behalf of Lenders by Administrative Agent

	 	JPMORGAN CHASE BANK, N.A.	 
	 	 	 	 
	
 

	
By: 

	/s/ James Duffy Baker Jr.	 
	 	 	James Duffy Baker Jr.	 
	 	 	Authorized Officer

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