Document:

Exhibit 10.1

 

 

 

FIRST AMENDMENT TO THE AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

THIS FIRST AMENDMENT TO THE AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Amendment") is made and entered into effective this 25th day of January, 2019 (the "Effective Date") by and between Lifeloc Technologies, Inc. (the "Company"), and Wayne Willkomm ("Executive").  Executive and the Company are referred to individually as a "Party" and collectively as the "Parties."

WHEREAS, the Parties previously entered into that certain Executive Employment Agreement dated as of January 5, 2016 (the "Initial Agreement"), as amended and restated on October 6, 2017 (the "First Amended Agreement"), which set forth the terms and conditions for the employment relationship between Executive and the Company;

WHEREAS, the Parties desire to amend Section 5.3 of the First Amended Agreement, and

WHEREAS, the Board of Directors of the Company has approved the amendment of the First Amended Agreement in the manner reflected herein,

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained herein, and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows as of the Effective Date:

		1.	
Addition. Section 5.3 of the First Amended Agreement is hereby amended to reflect the addition of the following:

  

(e)   Notwithstanding the foregoing performance requirements, in the event that the product known as SpinDx, including the marijuana breathalyzer which incorporates SpinDx technology, has been completed and submitted to regulatory authorities for review by or before December 31, 2019, all of the 50,000 Stock Options will vest in full, whether or not the foregoing sales and earnings requirements have been met.

		2.	
Counterparts. This Amendment may be executed in one or more facsimile, electronic or original counterparts, each of which shall be deemed an original and both of which together shall constitute the same instrument.

  

		3.	
Ratification. All terms and provisions of the Agreement not amended hereby, either expressly or by necessary implication, shall remain in full force and effect. From and after the date of this Amendment, all references to the term "Agreement" in this Amendment or the First Amended Agreement shall include the terms contained in this Amendment.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the Effective Date.

 

	
COMPANY: 

Lifeloc Technologies, Inc.

 

	
 

	EXECUTIVE:	
 

	
By:  /s/ Vern D. Kornelsen

	
 

	By: /s/ Wayne R Willkomm	
 

	
Name: Vern D. Kornelsen 

Title: Chief Financial Officer

	
 

	
Wayne R. Willkommthirdlimitedwaiver12819

                                                                EXECUTION VERSION             THIRD LIMITED CONDITIONAL WAIVER TO CREDIT AGREEMENT          THIRD LIMITED CONDITIONAL WAIVER TO CREDIT AGREEMENT (this “Agreement”),  dated effective as of January 11, 2019 (the “Effective Date”), among NORTHSTAR HEALTHCARE  ACQUISITIONS, L.L.C., a Delaware limited liability company (the “Borrower”), NOBILIS HEALTH  CORP., a British Columbia corporation (the “Parent”), NORTHSTAR HEALTHCARE HOLDINGS,  INC., a Delaware corporation (“Holdings”), the other Loan Parties (as defined in the Credit Agreement  (defined below)) party hereto, COMPASS BANK (in its individual capacity, “Compass Bank”) in its  capacity as Swingline Lender, LC Issuing Lender and Administrative Agent and the Lenders  party  hereto. Unless otherwise indicated, all capitalized terms used herein and not otherwise defined herein  shall have the respective meanings provided to such terms in the Credit Agreement referred to below.                                      W I T N E S S E T H:          WHEREAS, the Borrower, the Parent, Holdings, the other Loan Parties party thereto, the lenders  party thereto, the Administrative Agent and the other parties thereto have entered into that certain Credit  Agreement, dated as of October 28, 2016 (as amended by Amendment No. 1 to Credit Agreement and  Waiver, dated as of March 3, 2017, as further amended by Amendment No. 2 to Credit Agreement, dated  as of November 15, 2017, as further amended by the Second Limited Conditional Waiver and  Amendment No. 3 to Credit Agreement, dated effective as of December 31, 2018, and as from time to  time further amended, amended and restated, supplemented or otherwise modified, the “Credit  Agreement”);         WHEREAS, the Loan Parties acknowledge and agree that certain Events of Default as described  below (collectively, the “Specified Defaults”) have occurred and are continuing under Section 8.1 of the  Credit Agreement due to:          (a) the Borrower’s failure to comply with (i) the financial covenants in Section 7.11(a) and  Section 7.11(b) of the Credit Agreement (due to adjustments to the Borrower’s accounts receivable as  communicated to the Lenders in the Borrower’s presentation, dated November 14, 2018, and by  Borrower’s financial advisors in their interim report, dated December 28, 2018, which accounts  receivable adjustment and fiscal period of adjustment are subject to final determination by the Borrower)  and (ii) the restrictions on Restricted Payments contained in Section 7.6 of the Credit Agreement due to  certain Restricted Payments made to non-Loan Parties prior to November 15, 2018; and          (b) the requirements of Section 6.12(a) of the Credit Agreement in respect of MPDSC  Management, LLC (to be cured by the dissolution of MPDSC Management, LLC, as required pursuant to  Section 2(j) hereof);         WHEREAS, the Administrative Agent maintains that the Borrower failed to comply with the  requirements of the following (collectively the “Disputed Specified Defaults”), while the Loan Parties  maintain that the following Disputed Specified Defaults are not Events of Default under the Credit  Agreement:           (a) the requirements of Section 6.12(a) of the Credit Agreement in respect of NHC Network,  LLC; and     502024599 v5 1205867.00001  

 

      (b)    the requirement of Nobilis Vascular Texas, LLC to make payments when due under that  certain Convertible Promissory Note dated March 8, 2017 of Nobilis Vascular Texas, LLC payable to  Carlos R. Hamilton III, M.D.;         WHEREAS, as a result of the Specified Defaults, the Administrative Agent has the right to  exercise all rights and remedies available to it under the Credit Agreement, the other Loan Documents  and applicable law;         WHEREAS, the Loan Parties, Administrative Agent and certain of the Lenders party thereto  entered into that certain Limited Waiver to Credit Agreement, dated effective as of November 15, 2018  (the “First Limited Waiver”), pursuant to which, subject to the terms and conditions set forth in the First  Limited Waiver, those certain Specified Defaults (as defined in the First Limited Waiver) were  temporarily waived for the Waiver Period set forth therein (as defined in the First Limited Waiver, the  “First Wavier Period”);         WHEREAS, the Loan Parties, Administrative Agent and certain of the Lenders party thereto  entered into that certain Second Limited Conditional Waiver and Amendment No. 3 to Credit Agreement,  dated effective as of December 31, 2018 (the “Second Limited Waiver”), pursuant to which, subject to the  terms and conditions set forth in the Second Limited Waiver, those certain Specified Defaults (as defined  in the Second Limited Waiver) were temporarily waived for the Second Waiver Period set forth therein  (as defined in the Second Limited Waiver, the “Second Wavier Period”);         WHEREAS, the First Waiver Period and Second Waiver Period have each ended on or before the  Effective Date; and         WHEREAS, the Loan Parties have requested, and subject to the terms and conditions set forth  herein, the Administrative Agent and the Lenders party hereto (the “Consenting Lenders”) have agreed,  subject to the terms and conditions set forth herein, to waive certain provisions of the Credit Agreement  as specifically set forth herein.          NOW, THEREFORE, in consideration of the foregoing and for other good and valuable  consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree to  the above Recitals and as follows:          SECTION 1.   Limited Conditional Waiver; Waiver Fee; and Administrative Agent Fee.           (a)    Third Waiver Period.  Pursuant to Section 10.1 of the Credit Agreement, and upon the  occurrence of the Third Waiver Effective Date (as defined in Section 4 below), each Lender hereby  temporarily waives each Specified Default and each Disputed Specified Default during the period (the  “Third Waiver Period”) commencing on the Third Waiver Effective Date and ending on the earliest of (i)  the occurrence of an Event of Default other than the Specified Defaults and the Disputed Specified  Defaults during such Third Waiver Period, (ii) any Loan Party’s actual knowledge of an Event of Default  (other than the Specified Defaults and the Disputed Specified Defaults) that occurred prior to the Third  Waiver Period and that has not been cured within three (3) Business Days of a Loan Party obtaining  actual knowledge of such Event of Default, and (iii) February 28, 2019, after the earliest of which such  Specified Defaults (and any Disputed Specified Default that is determined to be an Event of Default) shall  spring back into existence.                (b)    Waiver Fee. The Loan Parties hereby agree that a waiver fee in the amount of $185,000  (the “Waiver Fee”) shall be fully earned on the Third Waiver Effective Date and shall be due and payable  to the Administrative Agent for the account of the Lenders as follows: (i) $92,500 shall be due and                                              2  502024599 v5 1205867.00001  

 

payable on the Third Waiver Effective Date and (ii) $92,500 shall be due and payable immediately upon  termination of the Third Waiver Period.  Any unpaid portion of the Waiver Fee not paid when due shall  be added to and constitute a part of the Obligations.  The Loan Parties hereby acknowledge and agree that  such Waiver Fee is non-refundable and is in addition to any other fees payable by the Loan Parties under  the Credit Agreement or any other Loan Document.                  (c)   Administrative Agent Fee.  The Loan Parties hereby agree that an administrative agent  fee in the amount of $25,000 (the “Administrative Agent Fee”) shall be fully earned on the Third Waiver  Effective Date and shall be due and payable to the Administrative Agent solely for its own account as  follows: (i) $12,500 shall be due and payable on the Third Waiver Effective Date and (ii) $12,500 shall be  due and payable immediately upon termination of the Third Waiver Period.  Any unpaid portion of the  Administrative Agent Fee not paid when due shall be added to and constitute a part of the Obligations.   The Loan Parties hereby acknowledge and agree that such Administrative Agent Fee is non-refundable  and is in addition to any other fees payable by the Loan Parties under the Credit Agreement or any other  Loan Document.          SECTION 2.   Other Covenants and Agreements.  Each Loan Party hereby agrees as follows:         (a)    Administrative Agent Consultant.  Without limiting the obligations of the Borrower  under the Credit Agreement, each Loan Party expressly (i) consents to retention by counsel to the  Administrative Agent of one or more consultants, advisors and/or other professionals in connection with  the Credit Agreement and the other Loan Documents, in each case, as permitted under such Loan  Documents (including, but not limited to Section 10.4(a) of the Credit Agreement), but subject to the  limitations and restrictions thereof, including for the purpose of analyzing the sales, collections, cash flow  and similar operations of the Parent and its subsidiaries (each a “Consultant”), (ii) agrees to pay the  reasonable fees and out-of-pocket expenses (including payment of the amount of any reasonable retainer)  of such Consultants promptly upon demand from time to time by the Administrative Agent and (iii)  agrees to provide the Administrative Agent and such Consultants with such information and direct access  to the books, records and management of Parent, Holdings, the Borrower and the other Loan Parties  during reasonable business hours as reasonably requested by the Administrative Agent or any such  Consultant.           (b)   Borrower Consultant.  The Loan Parties shall, at their sole cost and expense, continue to  retain Morris Anderson (the “Borrower Consultant”), which consultant was selected by the Loan Parties  and is acceptable to the Administrative Agent, to assist management with the review, evaluation and  improvement of their operations and financial performance, on terms and conditions reasonably  acceptable to the Administrative Agent, which shall include (i) direct access by the Borrower Consultant  to the Parent, Holdings and the Borrower during reasonable business hours, (ii) the ability to take on the  role of chief restructuring officer upon the occurrence of certain subsequently determined retention trigger  events as reasonably and mutually agreed by the Loan Parties and the Administrative Agent in their  respective sole discretion and (iii) the Administrative Agent and the Consultant having direct and  unrestricted access to the Borrower Consultant and direct communications with such Borrower  Consultant, either with the Borrower, Parent or Holdings or their counsel present or without the presence  of Borrower, Parent or Holdings or their counsel.  No later than 4:00 pm Central Time on January 30,  2019 (or such later date as the Administrative Agent may agree in writing in its sole discretion), the Loan  Parties shall deliver to the Administrative Agent a business plan (approved by the Borrower’s board of  directors) together with supporting financial projections and other information in support thereof in form  and with detail reasonably acceptable to the Administrative Agent, which shall include an assessment of  strategic alternatives available to the Loan Parties and provide for a permanent resolution of the Specified  Defaults and other identified issues to be mutually agreed, including but not limited to liquidity matters.                                               3  502024599 v5 1205867.00001  

 

      (c)    Cash Flow Reports.  The Loan Parties shall continue to prepare and deliver to the  Administrative Agent on each Wednesday (or such later date as may be agreed to by the Administrative  Agent in writing in its reasonable discretion) (i) an updated rolling cash flow forecast for the succeeding  13 weeks, in each case, for the Borrower, its Subsidiaries, and other parties whose cash flows contribute  to the Borrower’s revenues (the “Contributing Loan Parties”) on a consolidated basis and otherwise, in  form and substance reasonably satisfactory to the Administrative Agent (the “Updated Cash Flow  Forecast” and, together with each other cash flow forecast delivered to the Administrative Agent pursuant  to the First Limited Waiver or this Agreement, the “Cash Flow Forecasts”) and (ii) a certificate of the  chief financial officer of the Borrower to the effect that such Cash Flow Forecast reflects the Borrower’s  good faith projection of such weekly cash receipts and disbursements and ending balance of available  cash (as of the last Business Day of each week) for the Borrower, its Subsidiaries and the Contributing  Loan Parties on a consolidated basis. To the extent that any Updated Cash Flow Forecast line item  includes a variance of more than 10% from the prior projected amount for such line item, the Updated  Cash Flow Forecast shall include an explanation of the reason for such variance. Additionally, on each  Wednesday, the Borrower shall provide with respect to itself, its Subsidiaries and the Contributing Loan  Parties, on a consolidated basis, a report for the week ending the previous Friday, in form and substance  reasonably satisfactory to the Administrative Agent, specifying (A) the cash on hand in deposit accounts  at the beginning of such week, (B) cash receipts received during such week, with a schedule detailing  daily collections, (C) cash disbursed during such week in payment of expenses, (D) the cash on hand in  deposit accounts at the end of such week and (E) a comparison of such amounts to the comparable  amounts in the Cash Flow Forecast for such week and in the aggregate for the applicable Cash Flow  Forecast period; provided, that, notwithstanding the foregoing, the Cash Flow Forecasts required to be  delivered to the Administrative Agent on or prior to January 23, 2019 (or such later date as may be agreed  to by the Administrative Agent in writing in its sole discretion) shall not be required to include  information in respect of Contributing Loan Parties to the extent such information is not then available on  such required delivery date, but shall include information as to Contributing Loan Parties on the earliest  required delivery date that such information is available.           (d)   Revenue Recognition Policy.  No later than 4:00 pm Central Time on January 30, 2019  (or such later date as the Administrative Agent may agree in writing in its sole discretion), the Loan  Parties shall deliver to the Administrative Agent an assessment of the Loan Parties’ revenue recognition  policy and the impact it will have on accounts receivable balances to be prepared by the Borrower  Consultant.          (e)   Receivables Collection Process.  The Loan Parties shall provide the Administrative Agent  every two (2) weeks an updated summary of actions the Loan Parties have taken to improve the  receivables collection process, which updates shall be prepared by the Borrower Consultant, on behalf of  the Loan Parties, and with the first such update to be delivered to the Administrative Agent on January 23,  2019, no later than 4:00 pm Central Time (or such later date as the Administrative Agent may agree in  writing in its sole discretion).          (f)   Minimum Liquidity Covenant.  The Loan Parties shall (i) maintain liquidity greater than  or equal to $4,000,000, tested on each Wednesday beginning January 16, 2019, and (ii) deliver to the  Administrative Agent no later than 4 pm Central Time on each such date, a compliance certificate,  executed by the Chief Financial Officer of the Borrower, in form and substance reasonably satisfactory to  the Administrative Agent evidencing compliance with the foregoing, together with supporting  documentation evidencing the same.           (g)   Accounts Receivable Aging Report.  No later than 4 pm Central Time on January 25,  2019 (or such later date as may be agreed to by the Administrative Agent in writing in its sole discretion)  the Borrower shall provide the Administrative Agent with the September 30, 2018 accounts receivable                                              4  502024599 v5 1205867.00001  

 

aging report that reflects the revised accounting policy and methodology implemented by the Borrower  (the “Revised Accounting Policy and Methodology”) together with a comparison to the September 30,  2018 preliminary accounts receivable aging report previously submitted by the Borrower to the  Administrative Agent using its prior accounting policy and methodology (the “Prior Accounting Policy  and Methodology”).  No later than 4 pm Central Time on February 6, 2019 (or such later date as may be  agreed to by the Administrative Agent in writing in its sole discretion) Borrower shall provide the  Administrative Agent with (i) a copy of the Prior Accounting Policy and Methodology, (ii) a copy of the  Revised Accounting Policy and Methodology, and (iii) a written explanation (prepared with the input of  the Borrower Consultant) for the reasons the changes made to the Prior Accounting Policy and  Methodology were required.   No later than 4 pm Central Time on February 6, 2019 (or such later date as  may be agreed to by the Administrative Agent in writing in its sole discretion) and on or before the 15th  calendar day of each month thereafter (or such later date as may be agreed to by the Administrative Agent  in writing in its sole discretion), the Borrower shall provide the Administrative Agent with the most  current available accounts receivable aging report with respect to itself and its Subsidiaries which shall be  based on the Revised Accounting Policy and Methodology and shall provide detailed information by  facility, insurance payment source (separating in-network claims from out-of-network claims), and, to the  extent such information can be reasonably compiled within the aging report using the resources of the  Loan Parties and the Borrower Consultant, Loan Party, in form and substance reasonably acceptable to  the Administrative Agent; provided that the first such accounts receivable aging report shall be through  no earlier than December 31, 2018.           (h)   Deposit Account Control Agreements.  Each Loan Party listed on Exhibit A to the  Second Limited Waiver shall use commercially reasonable efforts to as soon as possible enter into, and  cause each depository intermediary to enter into control agreements (the “Additional Control  Agreements”), each in form and substance reasonably acceptable to the Administrative Agent, with  respect to each of its deposit accounts listed on Exhibit A to the Second Limited Waiver.  The Loan  Parties shall provide the Administrative Agent every two (2) weeks with updates in writing, in form and  substance reasonably acceptable to the Administrative Agent, as to the status of efforts to obtain the  Additional Control Agreements, together with any documentation evidencing whom they have contacted,  the responses they have received and the proposed timeline of when they anticipate receipt of such  Additional Control Agreements and providing the same to the Administrative Agent, with the next such  update to be delivered on January 23, 2019, no later than 4:00 pm Central Time (or such later date as the  Administrative Agent may agree to in writing in its sole discretion).            (i)   Indebtedness Updates.  The Loan Parties shall provide the Administrative Agent every  two (2) weeks with updates in writing, in form and substance reasonably acceptable to the Administrative  Agent, as to the status of the Indebtedness as described on Exhibit B to the Second Limited Waiver (the  “Specified Indebtedness”) and disputes related to such Specified Indebtedness, with the next such update  to be delivered on January 23, 2019, no later than 4:00 pm Central Time (or such later date as the  Administrative Agent may agree to in writing in its sole discretion).  The Loan Parties shall also (i)  provide Administrative Agent at least five (5) Business Days prior written notice of any payment to be  made in respect of any such Specified Indebtedness, and (ii) promptly (no later than two (2) Business  Days after receipt thereof) provide Administrative Agent copies of any material filings, judgments,  communications, notices of default, term sheets, letters of intent or other documents that relate to or  impact such disputes or the related to such Specified Indebtedness.              (j)   Release of Liens.  The Loan Parties shall use commercially reasonable efforts to cause  the liens listed on Exhibit C to the Second Limited Waiver (the “Specified Liens”) to be released. The  Loan Parties shall provide the Administrative Agent every two (2) weeks with updates in writing, in form  and substance reasonably acceptable to the Administrative Agent, as to the status of efforts to obtain the  release of the Specified Liens together with any documentation supporting whom they have contacted, the                                              5  502024599 v5 1205867.00001  

 

responses they have received, a proposed timeline of when they may obtain such release of the Specified  Liens, documentation evidencing the amount of the indebtedness secured by such Specified Liens and  which prohibit the increase of such indebtedness, and copies of all loan documentation related to such  Specified Liens, with the next such update to be delivered on January 23, 2019, no later than 4:00 pm  Central Time (or such later date as the Administrative Agent may agree to in writing in its sole  discretion).            (k)   Litigation Updates.  The Loan Parties shall provide the Administrative Agent every two  (2) weeks with updates in writing, in form and substance reasonably acceptable to the Administrative  Agent, as to the status of the litigation described on Exhibit D to the Second Limited Waiver and any  other litigation that would reasonably be expected to result in monetary judgment(s) or relief, individually  or in the aggregate, in excess of $3,500,000 or seeks an injunction or other equitable relief which would  reasonably be expected to have a Material Adverse Effect (collectively, the “Material Litigation”),  including updates as to the status of any stays, appeals or stays, judgments, and the issuance of bonds in  connection with the appeal of such Material Litigation, along with copies of all material pleadings, orders,  and judgements that any Loan Party or any of its officers, managers, or directors have received and  documentation evidencing the issuance of any such bonds and the stay of such Material Litigation, with  the next such update to be delivered on January 23, 2019, no later than 4:00 pm Central Time (or such  later date as the Administrative Agent may agree to in writing in its sole discretion).          (l)   Factoring Agreements.  The Loan Parties shall on or before 4:00 pm Central Time on  January 30, 2019 (or such later date as may be agreed to by the Administrative Agent in writing in its sole  discretion) provide the Administrative Agent with an updated list, in writing, in form and substance  reasonably satisfactory to the Lender, of all the factoring arrangements that are in place with any Loan  Party or their Subsidiaries as of the date of such disclosure, along with such other information and  documentation as the Administrative Agent may request.          (m)   Dissolution of MPDSC Management, LLC.  The Loan Parties have represented to the  Administrative Agent that MPDSC Management, LLC, a Texas limited liability company (“MPDSC  Management”), has no assets and has no operations and that the Loan Parties intend to dissolve MPDSC  Management.  Accordingly, as soon as possible and no later than 4:00 pm Central Time on January 31,  2019 (or such later date as the Administrative Agent may agree to in writing in its sole discretion) the  Loan Parties shall dissolve MPDSC Management and shall provide the Administrative Agent every two  (2) weeks with updates in writing, in form and substance reasonably acceptable to the Administrative  Agent, as to the status of efforts to dissolve MPDSC Management and any documentation evidencing the  dissolution of MPDSC Management, with the next such update to be delivered on January 23, 2019, no  later than 4:00 pm Central Time (or such later date as the Administrative Agent may agree to in writing in  its sole discretion).  Until the date that MPDSC Management has been dissolved the Loan Parties shall  cause MPDSC Management to have no assets and to have no operations.            (n)   NHC Network, LLC.  The Administrative Agent maintains that the Organizational  Documents of NHC Network, LLC (“NHC”) do not prohibit NHC from becoming a Loan Party and that  pursuant to Section 6.12(a) of the Credit Agreement NHC should be joined as a Loan Party, while the  Loan Parties maintain that the Organizational Documents of NHC do prohibit NHC from becoming a  Loan Party without the consent of Elite Ambulatory Surgery Centers, LLC (“Elite”) because doing so  would give the right to Elite, under the Organizational Documents of NHC, to put its equity interests in  NHC back to NHC and would be detrimental to the business operations of NHC.  The Loan Parties agree  to use commercially reasonable efforts to determine if they can obtain the consent of Elite in a manner  that will not be detrimental to the business operations of NHC.                                               6  502024599 v5 1205867.00001  

 

      (o)    Commercially Reasonable Efforts to Cause Excluded Subsidiaries to Become Loan  Parties.  The Administrative Agent delivered a notice letter dated January 2, 2019 to Parent and Holdings  requiring Parent and Holdings to use commercially reasonable efforts to obtain the consent of the third- party equityholders of each Excluded Subsidiary that is a Subsidiary of a Loan Party (including, without  limitation, Elite Sinus Spine and Ortho, LLC, Houston Metro Ortho and Spine Surgery Center, LLC, Elite  Center for Minimally Invasive Surgery, LLC, Elite Hospital Management, Athelite Holdings, LLC, and  Medical Ambulatory Surgical Suites, L.P.), in each case that is necessary to permit such Excluded  Subsidiary to become a Guarantor (“Third Party Consent”).  The Loan Parties shall provide the  Administrative Agent every two (2) weeks with (A) updates in writing, in form and substance reasonably  acceptable to the Administrative Agent, as to the status of efforts to obtain the Third Party Consents  together with (B) any documentation supporting whom they have contacted, the responses they have  received and a proposed timeline of when they anticipate obtaining such Third Party Consents, the first  such update to be delivered January 31, 2019, no later than 4:00 pm Central Time (or such later date as  the Administrative Agent may agree to in writing in its sole discretion).          (p)   Purchase Offers. The Loan Parties shall promptly provide the Administrative Agent with  notice of any offers from any bona fide purchaser to acquire any Loan Party or Loan Parties (including,  without limitation, the proposal contained in the Trive Capital Management LLC Letter of Intent) or any  assets of any Loan Party or Loan Parties (collectively, the “Proposed Acquisitions”) along with copies of  (i) to the extent then available, all proposed and final documentation related thereto, (ii) to the extent then  available, proposed and final sources and uses related thereto and (iii) to the extent applicable and  available, documentation evidencing that the Loan Parties are being fully released from any liabilities  being transferred to a proposed purchaser (including, without limitation, liabilities under transferred  leases, debt and other contracts).  The Loan Parties shall also provide to the Administrative Agent, to the  extent applicable, a written summary of any impact the Proposed Acquisition will have on any contracts  of the Loan Parties (including, without limitation, any employment agreements).  The Loan Parties shall  provide the Administrative Agent every week with updates in writing, in form and substance reasonably  acceptable to the Administrative Agent, as to the status of the Proposed Acquisitions and to the extent  then available, copies of any documentation delivered in connection therewith, including, but not limited  to, to the extent applicable, letters of intent, purchase commitments, or expressions of interest relating to  any such Proposed Acquisitions, together with any and all correspondence pertaining to the status or  updates of the completion of such Proposed Acquisition, the first such update to be delivered on January  16, 2019, no later than 4:00 pm Central Time (or such later date as the Administrative Agent may agree to  in writing in its sole discretion).  Without limiting the foregoing: (i) nothing contained herein shall  deemed to be a consent to, or other approval of, either the consummation of any Proposed Acquisition or  any agreement to either facilitate such Proposed Acquisition and (ii) the consummation of any Proposed  Acquisition shall be subject to the approvals, limitations and requirements set forth in the Credit  Agreement and the other Loan Documents.         (q)    Expenses.  The Loan Parties shall promptly (and in any event no later than five (5)  Business Days after presentation of a demand invoice to such Loan Party in respect thereof) pay all  reasonable and documented expenses of the Administrative Agent and Compass Bank in its capacity as  Lender incurred or accrued, including the reasonable and documented legal fees and expenses of counsel  for the Administrative Agent, for which demand invoices have been delivered to the Borrower.          (r)   Additional Information.  The Loan Parties shall provide such other information regarding  the business, financial, legal or corporate affairs of any Loan Party or any Subsidiary thereof, or  compliance with the terms of the Loan Documents, as the Administrative Agent may from time to time  reasonably request.                                               7  502024599 v5 1205867.00001  

 

      (s)    Payment of Waiver Fee and Administrative Agent Fee.  The Loan Parties shall pay any  unpaid portion of the Waiver Fee and the Administrative Agent Fee in full in cash no later than the  expiration of the Third Waiver Period.          The failure by the Loan Parties to comply with any of the requirements set forth in Section 2 shall  constitute an Event of Default under Section 8.1(b) of the Credit Agreement; provided, however, if such  non-compliance is with respect to Section 2(c), Section 2(d) or Section 2(r) hereof, such failure  thereunder shall become an Event of Default under Article VIII of the Credit Agreement only if such  failure continues unremedied for a period of three (3) Business Days after delivery by the Administrative  Agent to the Borrower of notice of such non-compliance.          SECTION 3.   Acknowledgement and Confirmation.  Each of the Loan Parties party hereto  hereby agrees and acknowledges that with respect to each Loan Document to which it is a party, after  giving effect to this Agreement and the transactions contemplated hereunder:          (a)   as of January 11, 2019, subject to additions and other adjustments as permitted under the  Loan Documents, the aggregate balance of the outstanding Obligations under the Credit Agreement is  equal to $125,075,718.37, and that the respective balances of the various Loans and the LC Obligations as  of such date were equal to the following:                Term A Loans     $47,206,250.00               Term B Loans                            $47,500,000.00               Revolving Loans (excluding LC Obligations)  $28,500,000.00               LC Obligations     $  1,500,000.00               Interest and LC Fees and Unused Fees    $     369,468.37                              SUB TOTAL     $125,075,718.37                              Portion of Waiver Fee fully earned but unpaid                on the Third Waiver Effective Date      $      92,500.00                              Portion of Administrative Agent Fee fully                earned but unpaid on the Third Waiver                Effective Date                          $       12,500.00                                             TOTAL     $125,180,718.37                       The foregoing amounts do not include interest accruing after January 11, 2019, additional fees,  expenses and other amounts that are chargeable or otherwise reimbursable under the Credit Agreement  and the other Loan Documents.  Further, each of the Loan Parties acknowledges and agrees that the above  described amounts are not subject to any offset, reduction, counterclaim or defense by the Loan Parties.         (b)    all of its obligations, liabilities and indebtedness under such Loan Document, including  guarantee obligations, shall, except as expressly set forth herein or in the Credit Agreement, remain in full  force and effect on a continuous basis; and         (c)    all of the Liens and security interests created and arising under such Loan Document  remain in full force and effect on a continuous basis, and the perfected status and priority to the extent  provided for in the Loan Documents of each such Lien and security interest continues in full force and                                              8  502024599 v5 1205867.00001  

 

effect on a continuous basis, unimpaired, uninterrupted and undischarged as Collateral for the  Obligations, to the extent provided in such Loan Documents.          SECTION 4.   Conditions to the Third Waiver Effective Date.  Section 1 of this Agreement shall  become effective on the date when the following conditions shall have been satisfied or waived (such  date, the “Third Waiver Effective Date”):         (a)    Counterparts of this Agreement.  The Administrative Agent’s receipt of signature pages,  which shall be originals or electronic copies (including “.pdf” or similar format and, to the extent required  by the Administrative Agent followed promptly by originals) unless otherwise specified or otherwise not  applicable, of this Agreement, duly executed by (i) a Senior Officer of each of Holdings, the Parent, the  Borrower, and each other Loan Party existing as of the Third Waiver Effective Date, (ii) the  Administrative Agent, and (iii) the Consenting Lenders constituting Required Lenders.          (b)   Expenses. The Borrower shall have paid all reasonable and documented expenses of the  Administrative Agent and Compass Bank in its capacity as Lender incurred or accrued through the Third  Waiver Effective Date, including the reasonable and documented legal fees and expenses of counsel for  the Administrative Agent, for which demand invoices have been delivered to the Borrower.          (c)   Payment of Waiver Fee and Administrative Agent Fee.  The Loan Parties shall have paid  that portion of the Waiver Fee and the Administrative Agent Fee, in each case that is due and payable on  the Third Waiver Effective Date pursuant to the terms of Section 1(b) and Section 1(c) hereof, as  applicable.   Without limiting the generality of the provisions of Section 9.3(c) of the Credit Agreement, for purposes  of determining compliance with the conditions specified in this Section 4, each Lender that has signed  this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each  document or other matter required thereunder to be consented to or approved by or acceptable or  satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender  prior to the proposed Third Waiver Effective Date specifying its objection thereto.         SECTION 5.    Costs and Expenses. The Loan Parties hereby reconfirm their obligations under  the Loan Documents, including Section 10.4 of the Credit Agreement, to make payments and  reimbursements in accordance with the terms thereof (including with respect to this Agreement).          SECTION 6.   Representations and Warranties. To induce the Administrative Agent and the  other Lenders to enter into this Agreement, each Loan Party represents and warrants to the Administrative  Agent and the other Lenders on and as of the Third Waiver Effective Date (and, in each case, after giving  effect to the limited conditional waiver contained in Section 1 of this Agreement) that, in each case:         (a)    the representations and warranties of the Loan Parties contained in Article V of the Credit  Agreement and in each other Loan Document are true and correct in all material respects (or, in the case  of any such representation and warranty that is subject to materiality or Material Adverse Effect  qualifications, in all respects) on and as of the Third Waiver Effective Date, except to the extent that such  representations and warranties specifically refer to an earlier date, in which case they shall be true and  correct in all material respects (or, in the case of any such representation and warranty that is subject to  materiality or Material Adverse Effect qualifications, in all respects as of such earlier date);           (b)   no Default or Event of Default exists and is continuing immediately prior to or after  giving effect to this Agreement, in each case, other than as expressly waived or specified hereunder;                                               9  502024599 v5 1205867.00001  

 

      (c)    the execution, delivery and performance by such Loan Party of this Agreement have been  duly authorized by all necessary corporate and other organizational action and do not and will not require  any approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any  Governmental Authority or any other Person other than the authorizations, approvals, actions, notices and  filings listed on Schedule 5.3 of the Disclosure Schedules, all of which have been duly obtained, taken,  given or made and are in full force and effect on the Third Waiver Effective Date;          (d)   no Loan Party has sold or received partial payment for the assignment or sale of any of its  accounts receivable in connection with any arrangement involving any Loan Party or any non-Loan Party;  and           (e)   this Agreement has been duly executed and delivered by each Loan Party that is a party  hereto and constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such  Loan Party in accordance with its terms; provided that the enforceability hereof is subject to general  principles of equity, principles of good faith and fair dealing and to bankruptcy, insolvency and similar  Laws affecting the enforcement of creditors’ rights generally.          SECTION 7.   Reference to and Effect on the Credit Agreement and the Loan Documents.          (a)    On and after the Effective Date, each reference in the Credit Agreement to “this  Agreement,” “herein,” “hereto”, “hereof” and “hereunder” or words of like import referring to the Credit  Agreement, and each reference in the Notes and each of the other Loan Documents to “the Credit  Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall  mean and be a reference to the Credit Agreement, as modified by this Agreement.            (b)   The Credit Agreement and each of the other Loan Documents, as specifically modified  by this Agreement, are and shall continue to be in full force and effect and are hereby in all respects  ratified and confirmed.           (c)   The execution, delivery and effectiveness of this Agreement shall not, except as expressly  provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative  Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan  Documents.  Without limiting the generality of the foregoing, the Collateral Documents in effect  immediately prior to the date hereof and all of the Collateral described therein in existence immediately  prior to the date hereof do and shall continue to secure the payment of all Obligations of the Loan Parties  under the Loan Documents, in each case, as modified by this Agreement.           SECTION 8.   Governing Law; Jurisdiction.          (A)    THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE  OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING  OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED  HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW  OF THE STATE OF NEW YORK.         (b)    EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES  THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND  OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT  OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY LENDER, THE LC ISSUING  LENDER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS  AGREEMENT, THE FIRST LIMITED WAIVER OR ANY OTHER LOAN DOCUMENT OR THE                                             10  502024599 v5 1205867.00001  

 

TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE  COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE  UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY  APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO  IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH  COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION,  LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK  STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH  FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN  ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE  ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER  MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN  DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY  LENDER OR THE LC ISSUING LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR  PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT  AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.          SECTION 9.   Counterparts. This Agreement may be executed in any number of counterparts  and by the different parties hereto on separate counterparts, each of which counterparts when executed  and delivered shall be an original, but all of which shall together constitute one and the same instrument.  Delivery by facsimile or electronic transmission of an executed counterpart of a signature page to this  Agreement shall be effective as delivery of an original executed counterpart of this Agreement.          SECTION 10.  Release. Each of the Parent, Holdings, the Borrower and each other Loan Party,  on behalf of itself and its Subsidiaries, successors, assigns and other legal representatives, hereby releases,  waives, and forever relinquishes all claims, demands, obligations, liabilities and causes of action of  whatever kind or nature (collectively, the “Claims”), whether known or unknown, which any of them  have, may have, or might assert at the time of the execution of this Agreement or in the future against the  Administrative Agent, the Swingline Lender, the LC Issuing Bank, the Lenders and/or their respective  present and former parents, affiliates, participants, officers, directors, employees, agents, attorneys,  accountants, consultants, successors and assigns (each a “Releasee”), directly or indirectly, which  occurred, existed, were taken, permitted or begun from the beginning of time through the date hereof,  arising out of, based upon, or in any manner connected with (a) the Loan Documents and/or the  administration thereof or the Obligations created thereby, (b) any discussions, commitments, negotiations,  conversations or communications with respect to the refinancing, restructuring or collection of any of the  Obligations, or (c) any matter related to the foregoing; provided that (i) the foregoing shall not release  Claims arising following the date hereof, and (ii) such release shall not be available to any Releasee with  respect to a Claim to the extent that such Claim is determined by a court of competent jurisdiction by final  and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such  Releasee.          SECTION 11.  Acknowledgments; Reservation of Rights.          (a)    The Loan Parties hereby acknowledge and agree that the Specified Defaults constitute  Events of Default under the Credit Agreement and, in the absence of the limited conditional waiver set  forth in Section 1 of this Agreement, permits the Administrative Agent and the Lenders to, among other  things,  take any enforcement action or otherwise exercise any or all rights and remedies provided for  under the Loan Documents or applicable law including, without limitation, those described in Section 11  of this Agreement.                                              11  502024599 v5 1205867.00001  

 

      (b)    The Loan Parties hereby acknowledge and agree that each of the Administrative Agent  and the Lenders expressly reserves all of its rights, powers, privileges and remedies under the Credit  Agreement, other Loan Documents and/or applicable law, including, without limitation, its right at any  time from and after termination or expiration of the Third Waiver Period, (i) to determine not to make  further Loans or issue Letters of Credit under the Credit Agreement as a result of the Specified Defaults  and/or to terminate their Commitments to make Loans and issue Letters of Credit, (ii) to accelerate the  Obligations, (iii) to charge the default rate of interest in respect of the Obligations (as of any date from  and after the date on which the Specified Defaults first occurred) and to enforce the prohibition against  incurring, continuing or converting any Loan as or into a Eurodollar Rate Loan, (iv) to commence any  legal or other action to collect any or all of the Obligations from any or all of the Loan Parties, and any  other person liable therefor and/or any collateral, (v) to foreclose or otherwise realize on any or all of the  collateral and/or as appropriate, set-off or apply to the payment of any or all of the Obligations, any or all  of the collateral, (vi) to take any other enforcement action or otherwise exercise any or all rights and  remedies provided for by any or all of the Credit Agreement, other Loan Documents or applicable law,  and (vii) to reject any forbearance, financial restructuring or other proposal made by or on behalf of  Borrower, any other Loan Party or any creditor or equity holder.  Each of the Administrative Agent and  the Lenders may exercise their respective rights, powers, privileges and remedies, including those set  forth in (i) through (vii) above at any time after the termination or expiration of the Third Waiver Period  in its sole and absolute discretion without further notice.  No oral representations or course of dealing on  the part of the Administrative Agent, any Lender or any of its officers, employees or agents, and no  failure or delay by the Administrative Agent or any Lender with respect to the exercise of any right,  power, privilege or remedy under any of the Credit Agreement, other Loan Documents or applicable law  shall operate as a waiver thereof, and the single or partial exercise of any such right, power, privilege or  remedy shall not preclude any later exercise of any other right, power, privilege or remedy.         (c)    The Loan Parties, the Administrative Agent and the Lenders party hereto hereby  acknowledge and agree that to date, Administrative Agent and the Lenders have not elected to exercise  any such rights and remedies available to them.                        [The remainder of this page is intentionally left blank.]                                              12  502024599 v5 1205867.00001  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                            BANK OF AMERICA, N.A., as Lender                                 By:                      Name:                    Title:                                                   Northstar Healthcare Acquisitions, L.L.C.  Third Limited Conditional Waiver To Credit Agreement                 Signature Pages                  

 

 

 

 

 

                            FIRST TENNESSEE BANK, as Lender                             By:                      Name:                    Title:                                                                Northstar Healthcare Acquisitions, L.L.C.  Third Limited Conditional Waiver To Credit Agreement                 Signature Pages                  

 

                            MIDSOUTH BANK, as Lender                                 By:                      Name:                    Title:                                                Northstar Healthcare Acquisitions, L.L.C.  Third Limited Conditional Waiver To Credit Agreement                 Signature Pages                  

 

                            MARATHON ASSET MANAGEMENT, as Lender                                 By:                      Name:                    Title:                                                                                                                                                                                                                                                                                                                                                                                         Northstar Healthcare Acquisitions, L.L.C.  Third Limited Conditional Waiver To Credit Agreement                 Signature Pages

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