Document:

Exhibit 10.65

 

Exhibit 10.65

FIRST AMENDMENT TO

EMPLOYMENT AGREEMENT

     THIS FIRST AMENDMENT to the Employment Agreement by and between MedCath Corporation (the
“Company”) and Phil Mazzuca (“Executive”) (the “First Amendment”) is effective as of the 1st day of
September, 2006.

RECITALS:

     WHEREAS, Company and Executive entered into an Employment Agreement with a Commencement Date
of March 27, 2006 (the “Agreement”);

     WHEREAS, Executive has been employed by Company prior to the date hereof;

     WHEREAS, Company and Executive desire to continue Executive’s employment in accordance with
the terms of Executive’s Employment Agreement and in accordance with the terms of this First
Amendment; and

     WHEREAS, the parties now wish to amend the Agreement on the terms set forth below:

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
and confessed, Company and Executive agree to amend the Agreement on the following terms:

     1. Section 6.1(c) of the Agreement (Termination By Company Without Cause or By Executive for
Good Reason) shall be deleted in its entirety and replaced with the following:

          (c) For purposes of this Agreement, “Good Reason” shall mean any of the following
(without Executive’s express prior written consent):

     (i) A substantial reduction or elimination of Executive’s management
responsibility for the operations of the Company’s hospital business, other than in
connection with the termination of Executive’s employment by the Company for Cause,
by Executive without Good Reason or as a result of Executive’s Permanent Disability
or death;

 

 

     (ii) A reduction by the Company in Executive’s Base Salary or Target Bonus;

     (iii) A reduction or elimination of Executive’s eligibility to participate in
any of the Company’s employee benefit plans that is inconsistent with the
eligibility of similarly situated executives of the Company to participate therein;
or

     (iv) The Company provides Executive written notice of the non-renewal
of this Agreement pursuant to Section 2..

     2. Capitalized terms not defined in this First Amendment shall have the meaning assigned to
them in the Agreement.

     3. Except as specifically set forth in this First Amendment, the terms and conditions of the
Agreement shall remain in full force and effect.

     4. In the event of any conflict between the terms of this First Amendment and terms of the
Agreement, the terms of this First Amendment shall control.

     IN WITNESS WHEREOF, the parties have executed this First Amendment on the day first written
above.

	 	 	 	 	 
	

	 	MEDCATH CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ O. Edwin French
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	O. Edwin French
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	President and Chief Executive Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	PHIL MAZZUCA
	 
	 	 	 	 
	 

	 	/s/ Phil MazzucaEX-4(C)(3)

 

Exhibit 4(c)(3)

THIRD SUPPLEMENTAL INDENTURE

     THIS THIRD SUPPLEMENTAL INDENTURE (this “Third Supplemental Indenture”) dated as of October
17, 2005, by and among Rod McLellan Company, a California corporation (“RMC”), SMG Growing Media,
Inc., an Ohio corporation (“SMGGM”) (each of RMC and SMGGM shall be referred to herein as a
“Guaranteeing Subsidiary” and collectively, the “Guaranteeing Subsidiaries”), and U.S. Bank
National Association, as trustee under the indenture referred to below (the “Trustee”).

WITNESSETH

     WHEREAS, on September 8, 2005, The Scotts Miracle-Gro Company (the “Company”) caused the
formation of SMGGM, a wholly-owned subsidiary of the Company, and contributed capital to SMGGM in
the amount of $10,000;

     WHEREAS, on October 3, 2005, RM Acquisition Corp., a merger subsidiary wholly-owned by SMGGM,
merged with and into RMC, with RMC being the surviving corporation (the “Merger”);

     WHEREAS, pursuant to the Merger, all of the shares of RMC currently are owned by SMGGM,
resulting in the tangible net worth of SMGGM exceeding $1,000,000;

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of October 8, 2003, as amended by that certain Supplemental Indenture, dated
as of October 15, 2004, and that certain Second Supplemental Indenture, dated as of March 18, 2005,
providing for the issuance of an unlimited aggregate principal amount of 6.625% Senior Subordinated
Notes due 2013 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiaries
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiaries shall unconditionally guarantee all of the Company’s Obligations under
the Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary
Guarantee”); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiaries and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

 

 

     2. Agreement to Guarantee. The Guaranteeing Subsidiaries hereby agree as follows:

	 	(a)	 	Along with all Guarantors named in the Indenture, to jointly
and severally Guarantee to each Holder of a Note authenticated and delivered by
the Trustee and to the Trustee and its successors and assigns, irrespective of
the validity and enforceability of the Indenture, the Notes or the obligations
of the Company hereunder or thereunder, that:

	 	(i)	 	the principal of and interest on the Notes and
Registration Default Damages, if any, will be promptly paid in full
when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the
Notes, if any, if lawful, and all other obligations of the Company to
the Holders or the Trustees hereunder or thereunder will be promptly
paid in full or performed, all in accordance with the terms hereof and
thereof; and
	 
	 	(ii)	 	in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that same will
be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the
Guarantors shall be jointly and severally obligated to pay the same
immediately.

	 	(b)	 	The obligations hereunder shall be unconditional, irrespective
of the validity, regularity or enforceability of the Notes or the Indenture,
the absence of any action to enforce the same, any waiver or consent by any
Holder of the Notes with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same or
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor.
	 
	 	(c)	 	The following is hereby waived: diligence, presentment, demand
of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever.
	 
	 	(d)	 	This Subsidiary Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and the
Indenture.
	 
	 	(e)	 	If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Guarantors, or any Custodian, Trustee,
liquidator or other similar official acting in relation to either the Company
or the

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	 	 	 	Guarantors, any amount paid by either to the Trustee or such Holder, this
Subsidiary Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect.
	 
	 	(f)	 	The Guaranteeing Subsidiaries shall not be entitled to any
right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.
	 
	 	(g)	 	As between the Guarantors, on the one hand, and the Holders and
the Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article 6 of the Indenture for the
purposes of this Subsidiary Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article 6 of the Indenture, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Subsidiary Guarantee.
	 
	 	(h)	 	The Guarantors shall have the right to seek contribution from
any non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Guarantee.
	 
	 	(i)	 	The obligations hereunder shall be subject to the subordination
provisions of the Indenture.

     3. Execution and Delivery. Each Guaranteeing Subsidiary agrees that the Subsidiary Guarantees
shall remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Subsidiary Guarantee.

     4. Guaranteeing Subsidiaries May Consolidate, Etc. on Certain Terms.

	 	(a)	 	The Guaranteeing Subsidiaries may not consolidate with or merge
with or into (whether or not such Guarantor is the surviving Person) another
corporation, Person or entity whether or not affiliated with such Guarantor
unless:

	 	(i)	 	subject to Section 11.05 of the Indenture, the
Person formed by or surviving any such consolidation or merger (if
other than a Guarantor) unconditionally assumes all the obligations of
such Guarantor, pursuant to a supplemental indenture in form and
substance reasonably satisfactory to the Trustee, under the Notes, the
Indenture, the Registration Rights Agreement and the Subsidiary
Guarantee on the terms set forth herein or therein; and

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	 	(ii)	 	immediately after giving effect to such
transaction, no Default or Event of Default exists.

	 	(b)	 	In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Subsidiary Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of the Indenture to be
performed by the Guarantor, such successor Person shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. Such successor Person thereupon may cause to be signed
any or all of the Subsidiary Guarantees to be endorsed upon all of the Notes
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in
all respects have the same legal rank and benefit under the Indenture as the
Subsidiary Guarantees theretofore and thereafter issued in accordance with the
terms of the Indenture as though all of such Subsidiary Guarantees had been
issued at the date of the execution hereof.
	 
	 	(c)	 	Except as set forth in Articles 4 and 5 of the Indenture, and
notwithstanding clauses (a) and (b) above, nothing contained in the Indenture
or in any of the Notes shall prevent any consolidation or merger of a Guarantor
with or into the Company or another Guarantor, or shall prevent any sale or
conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Company or another Guarantor.

     5. Releases.

	 	(a)	 	In the event of a sale or other disposition of all of the
assets of any Guarantor, by way of merger, consolidation or otherwise, or a
sale or other disposition of all to the capital stock of any Guarantor, then
such Guarantor (in the event of a sale or other disposition, by way of merger,
consolidation or otherwise, of all of the capital stock of such Guarantor) or
the corporation acquiring the property (in the event of a sale or other
disposition of all or substantially all of the assets of such Guarantor) will
be released and relieved of any obligations under its Subsidiary Guarantee;
provided that the Net Proceeds of such sale or other disposition are applied in
accordance with the applicable provisions of the Indenture, including without
limitation Section 4.10 of the Indenture. Upon delivery by the Company to the
Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect
that such sale or other disposition was made by the Company in accordance with
the provisions of the Indenture, including without limitation Section 4.10 of
the Indenture, the Trustee shall execute

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	 	 	 	any documents reasonably required in order to evidence the release of any
Guarantor from its obligations under its Subsidiary Guarantee.
	 
	 	(b)	 	Any Guarantor not released from its obligations under its
Subsidiary Guarantee shall remain liable for the full amount of principal of
and interest on the Notes and for the other obligations of any Guarantor under
the Indenture as provided in Article 11 of the Indenture.

     6. No Recourse Against Others. No past, present or future director, officer, employee,
incorporator or stockholder of the Guaranteeing Subsidiaries, as such, shall have any liability for
any obligations of the Company or any Guaranteeing Subsidiary under the Notes, any Subsidiary
Guarantees, the Registration Rights Agreement, the Indenture or this Supplemental Indenture or for
any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder of the Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes.

     7. NEW YORK LAW TO GOVERN. SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

     8. Counterparts. The parties may sign any number of copies of this Supplemental Indenture.
Each signed copy shall be an original, but all of them together represent the same agreement.

     9. Effect of Headings. The Section headings herein are for convenience only and shall not
affect the construction thereof.

     10. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Third Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guaranteeing
Subsidiaries.

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     IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be
duly executed and attested, all as of the date first above written.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	SMG GROWING MEDIA, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Edward R. Claggett
	 

	 	 	 	 
	 

	 	Name:
	 	Edward R. Claggett
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President and Assistant Secretary
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	ROD McLELLAN COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Edward R. Claggett
	 

	 	 	 	 
	 

	 	Name:
	 	Edward R. Claggett
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President and Assistant Secretary
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION

   as Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Cauna M. Silva
	 

	 	 	 	 
	 

	 	Name:
	 	Cauna M. Silva
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

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