Document:

Exhibit 10.47

 

Exhibit
10.47

PROMISSORY NOTE

			
	December 31, 2004
	 	$1,695,000.00
	Troy, Michigan
	 	 

     OP HOSPICE, INC. (“Borrower”), for value received, promises to pay to the order of LIGHTHOUSE
HOSPICE LIMITED PARTNERSHIP, a Delaware limited partnership (“Holder”), at 2301 W. Big Beaver Road,
Suite 777, Troy, Michigan 48084, Attn: Steven P. Schubiner, or at such other place as Holder may
from time to time designate in writing, the principal amount of $1,695,000.00 in lawful money of
the United States, together with interest on the unpaid principal balance as provided for below,
and together with all costs of collections, including reasonable attorneys’ fees, whether or not
suit is instituted, to enforce this Note. The unpaid principal balance shall bear interest from
the date hereof in lawful money of the United States, on the basis of a year of 360 days for the
actual number of days elapsed in a month, at a rate equal to 8.00% per year. Notwithstanding
anything to the contrary contained in this Note, (i) upon the occurrence of an Event of Default (as
defined below) or after the Maturity Date (as defined below), the unpaid principal balance shall
bear interest at a rate of 11% per annum and (ii) payment under this Note is subject to the right
of offset set forth in Section 11.9 of the APA.

     Accrued interest on this Note shall be payable on the first day of each month commencing on
February 1, 2005.

     The entire unpaid principal balance of, and any unpaid accrued interest on, this Note shall be
paid in full on December 31, 2009 (the “Maturity Date”). Notwithstanding anything to the contrary
contained in this Note, unless due and payable sooner as a result of the occurrence of an Event of
Default or at maturity, all of the remaining outstanding balance of principal of, and interest on,
this Note, if any, then unpaid shall become immediately due and payable without notice or demand,
upon the closing of: (a) an Initial Public Offering (as defined below) or (b) a Sale Transaction.

     All payments on this Note shall be applied first to accrued interest then due and the
remainder to the unpaid principal balance. This Note may be prepaid in whole or in part without
penalty or premium.

     Borrower represents and warrants to the Lender that:

            (1) Borrower has all requisite power and authority to enter into this Note and to perform its
obligations hereunder; and this Note has been duly authorized, executed and delivered by Borrower
and constitutes a valid and legally binding obligation of Borrower, enforceable against Borrower in
accordance with its terms;

            (2) there are no actions, proceedings or investigations pending or, to Borrower’s knowledge,
threatened against or involving Borrower which (a) question the validity of this Note or any action
taken or to be taken by Borrower pursuant hereto, or (b) individually or in the aggregate, impair
in any material way or involve any substantial possibilities, so far as
Borrower can foresee, of impairing in any material way Borrower’s ability to perform its
obligations under this Note;

 

 

            (3) the execution, delivery and performance by Borrower of this Note do not violate or result
in any violation of or conflict with or constitute a default under or result in the creation of, or
impose any obligation on Borrower to create, any encumbrance, on any of the undersigned’s
properties or assets pursuant to, any provision of any agreement, indenture or other instrument, or
of any license, permit or other authorization or of any judgment, decree, order, law, statute,
ordinance or governmental rule or regulation applicable to Borrower;

            (4) no consent, approval, order or authorization of, or registration, declaration or filing
with, any governmental or public body or authority on the part of Borrower, is required for the
valid execution, delivery and performance of this Note;

            (5) neither this Note, nor any other document furnished to Holder by or on behalf of Borrower
pursuant hereto or in connection with any of the transactions consummated concurrently herewith
contains or will contain, as of its date, any untrue statement of a material fact or omits to state
or will omit to state, as of its date, a material fact necessary in order to make the statements
contained herein and therein not misleading; and there are no facts known to Borrower which,
individually or in the aggregate, impair in any material way or involve any substantial possibility
(so far as Borrower can foresee) of impairing in any material way Borrower’s ability to perform its
obligations under this Note, which have not been disclosed herein or in the documents furnished to
Holder by or on behalf of Borrower pursuant hereto; and

            (6) Borrower’s exact legal name, entity type, and state of organization are set forth on the
signature page hereof.

     An Event of Default shall mean the occurrence or existence of one or more of the following
described events:

            (A) Borrower shall default in the payment of any principal of, or interest on, this Note when
due, whether at maturity, demand by acceleration or otherwise and such default shall continue
unremedied for five (5) days after notice from Holder to Borrower; or

            (B) A default or event of default shall occur at any time under the terms of any other
agreement involving borrowed money or the extension of credit or any other indebtedness under which
Borrower or Guarantor may be obligated as a borrower or guarantor in excess of Two Hundred Fifty
Thousand and 00/100 Dollars ($250,000.00) in the aggregate, and such default or event of default:
(i) consists of the failure to pay (beyond any period of grace permitted with respect thereto or
unless waived) any such indebtedness when due (whether at stated maturity, by acceleration or
otherwise) or (ii) permits or causes the acceleration of any such indebtedness (unless such right
shall have been waived), unless in the case of any of the foregoing, such default or event of
default is being contested in good faith and by appropriate proceedings, diligently conducted;

            (C) Any representation or warranty made herein or in the Guaranty (as defined below) by
Borrower or the Guarantor shall prove to have been false or misleading in any material respect as
of the time made; or

            (D) A final judgment which, with other final judgments against Borrower or the Guarantor
exceeds an aggregate of $250,000 shall have been entered against Borrower or the

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Guarantor, if, within 30 days after the entry thereof, such judgment shall not have been discharged or execution
thereof stayed pending appeal; or

            (E) Any default under, or institution of foreclosure or other proceedings by a third party to
enforce any lien or security interest of any kind upon the assets of Borrower, or any portion
thereof, unless Borrower is contesting such in good faith and has made reserves for loss if
recommended by its independent certified accountants; or

            (F) Borrower or the Guarantor shall fail generally to pay its debts as they become due; or

            (G) A proceeding shall have been instituted in a court having jurisdiction in the premises
seeking a decree or order for relief in respect of Borrower or of the Guarantor in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect,
or for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or
similar official) of Borrower or the Guarantor, or for any substantial part of their respective
property, or for the winding-up or liquidation of their respective affairs, and such proceeding
shall not have been dismissed within 60 days after the institution thereof; or

            (H) Borrower or the Guarantor shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order
for relief in an involuntary case under any such law, or shall consent to the appointment of or
taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of Borrower or of the Guarantor, or for any substantial part of their respective
property, or shall make a general assignment for the benefit of creditors, or shall take any action
in furtherance of, or indicating their respective consent to, approval of or acquiescence in, any
of the foregoing.

     Upon the occurrence of an Event of Default, all of the remaining outstanding balance of
principal of, and interest on, this Note, if any, then unpaid shall become immediately due and
payable without notice or demand.

     It is the intention of Borrower and Holder to conform strictly to the usury laws now or
hereafter in force in the State of Michigan and any interest payable under this Note shall be
subject to reduction to the amount not in excess of the maximum non-usurious amount allowed under
the usury laws of Michigan as now or hereafter construed by the courts having jurisdiction over
such matters. In all events, the aggregate of all interest, if any, (whether designated as
interest or otherwise) contracted for, chargeable, or receivable under this Note or any other
instrument or other document executed in connection with this Note shall under no circumstances
exceed the maximum legal rate; and if it does, then it shall be deemed a mistake
and such excess shall be canceled automatically and if theretofore paid, rebated to Borrower
or credited on the principal amount of the Note, or if the Note has been repaid, then such excess
shall be rebated to Borrower.

     Borrower, and any endorser and guarantors, hereby jointly and severally waive presentment,
protest and demand, notice of protest, demand and dishonor and non-payment of this Note, and
expressly agree that the maturity of this Note, and any payment hereunder, may be

3

 

extended from time to time without in any way affecting the liability of Borrower or such endorser or guarantors.

     This Note, made in the State of Michigan, shall be governed and construed according to the
internal laws of Michigan.

     “APA” means that certain Asset Purchase Agreement dated October 28, 2004, between Borrower and
Holder.

     “Initial Public Offering” means the first public offering of any of the capital stock of the
Guarantor (or any Subsidiary), pursuant to an effective registration statement under the Securities
Act.

     “Guarantor” means Tandem Health Care, Inc., a Pennsylvania corporation.

     “Guaranty” means the Guaranty of even date herewith given by Guarantor to Holder.

     “Sale Transaction” means a sale (whether by merger, recapitalization, consolidation,
reorganization, combination, asset purchase, or otherwise) of more than 50% of all of Borrower’s
and/or the Guarantor’s outstanding capital stock, or of substantially all of the assets of Borrower
and/or the Guarantor to any independent third party.

     “Securities Act” means the Securities Act of 1933, as amended.

“Subsidiary” shall mean any corporation, limited liability company, partnership or other entity of
which the Guarantor, directly or indirectly, holds a majority of the voting stock or voting power,
or a majority of the capital, profits or other economic interests therein.

	 	 	 	 	 
	 	 	OP HOSPICE, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence R. Deering
	 

	 	 	 	 
	 	 	Name: Lawrence R. Deering
	 	 	Title: Chairperson and Chief Executive Officer

4Exhibit 10.48

 

Exhibit
10.48

TANDEM HEALTH CARE

             
                           April 28, 2005

Tandem Health Care, Inc.

800 Concourse Parkway South

Suite 200

Maitland, Florida 32751

Attn: Larry Deering

Dear Larry,

            Tandem Health Care, Inc. (the “Company”) hereby acknowledges and agrees that Behrman Brothers
Management Corp. (“BBMC”) is entitled to a transaction fee in connection with the acquisition of
the Diakon facilities by the Company. The Company hereby irrevocably agrees to pay BBMC in cash in
immediately available funds an aggregate of $1,640,000.00 on or before June 30, 2005.

     The payment shall be transferred to BBMC by federal funds wire transfer according to the
following instructions:

	 	 	 	 	 
	 

	 	To:
	 	Chase Manhattan Bank
	 

	 	Location:
	 	1411 Broadway, New York, New York
	 
	 	 	 	 
	 

	 	For Credit to:
	 	Behrman Brothers Management Corp.
	 
	 	 	 	 
	 

	 	Attention:
	 	Ms. Doreen Rocco (212) 391-6082

     If any action is instituted to collect amounts owing hereunder, the Company hereby promises to
pay all costs and expenses, including reasonable attorney’s fees, incurred by BBMC in connection
with such action.

     This Letter Agreement constitutes the entire agreement, and supersedes all other agreements
and understandings, both written and oral, among the parties hereto with respect to the subject
matter hereof.

 

 

TANDEM HEALTH CARE

     Please confirm that the foregoing is in accordance with your understanding by signing and
returning to us the enclosed duplicate copy of this letter.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	Behrman Brothers Management Corp.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Grant G. Behrman
	 

	 	 	 	 
	 	 	Name: Grant G. Behrman
	 	 	Title: Managing Partner

	 	 	 	 	 
	Confirmed and agreed:	 	 
	 
	 	 	 	 
	Tandem Health Care, Inc.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence R. Deering
 

	 	 
	Name: Lawrence R. Deering	 	 
	Title: Chairman and Chief Executive Officer

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