Document:

<PAGE>

                                                                    Exhibit 10.1

                                   May 5, 2003

Robert C. deGroof, Ph.D.
145 Water Crest Drive
Doylestown, Pennsylvania 18901

Dear Bob:

This letter will confirm certain matters related to your employment by Alteon
Inc. (the "Company") and shall constitute an amendment to your Employment
Agreement with the Company dated as of March 14, 2000 (the "Employment
Agreement").

Your Term of Employment, as defined in Paragraph 1 of your Employment Agreement
expired on March 14, 2003, and this letter will confirm that such Employment
Agreement is extended for an additional three years from that date to March 14,
2006.

On December 18, 2002, the Company issued and delivered to you options to
purchase 100,000 shares of the Company's common stock at an exercise price of
$1.87 per share which is the fair market value of the stock on December 18,
2002, when the Special Compensation Subcommittee of the Board approved this
award. The options will be subject to the terms set forth in the resolution of
the Compensation Committee authorizing such grant on that date, which is
attached hereto.

Paragraph 4 of your Employment Agreement ("Other Benefits") is amended to
include four (4) weeks' vacation per year.

Paragraph 5 of your Employment Agreement ("Expenses") is amended to include an
evaluation at December 31 of each year regarding commuting and housing expenses.

Paragraph 20 of your Employment Agreement ("General") is amended to include
reference to the new stock option grant agreement and this letter as part of the
"entire agreement," with respect to the subject matter of your employment by the
Company under these agreements.

Except as modified by this letter, the terms of all the foregoing enumerated
agreements shall remain in full force and effect.
<PAGE>
Robert C. deGroof, Ph.D.                                             May 5, 2003
Page 2

If the foregoing is acceptable to you, please indicate your agreement by signing
and returning the enclosed copy of this letter.

                                    Sincerely,

                                    /s/ Kenneth I. Moch
                                    ------------------------------------
                                    President and Chief Executive Officer

Attachment

Accepted and Agreed
this 8th day of May 2003.

/s/ Robert C. deGroof, Ph.D.
------------------------------------
Robert C. deGroof, Ph.D.
<PAGE>
                                   ALTEON INC.

                  SPECIAL COMPENSATION SUBCOMMITTEE RESOLUTIONS

                            Adopted December 18, 2002

      RESOLVED, that, in connection with the extension of his employment
agreement, the Company grant to Dr. deGroof an incentive stock option (or to the
extent that such option does not qualify as an incentive stock option, a
non-qualified stock option), pursuant to the Company's 1995 Stock Option Plan
(the "Plan"), to purchase 100,000 shares of common stock of the Company with an
exercise price per share of $1.87 which is current fair market value as
determined under the Plan. Such option shall be in the form of, and on such
terms and conditions as provided in, the Company's standard form of Stock Option
Grant Agreement currently in effect with such additional provisions as
contemplated by Section 4(d) of Dr. deGroof's employment agreement. Such Stock
Option Grant Agreement shall provide, on condition that Dr. deGroof is employed
by the Company on the relevant vesting dates and that option shares shall vest
as follows:

      1)    75,000 options to vest over a 36-month period at the rate of 2,083
            shares on the first day of each calendar month, commencing as of
            March 1, 2003.

      2)    25,000 options to vest in a lump sum on December 18, 2007, provided
            that such shares shall be subject to accelerated vesting on December
            18, 2005, accordingly to the following terms. The average fair
            market value for a share of the Company's Common Stock (measured as
            provided under the Plan) shall be determined for each of the trading
            days during the six-month period ending on December 18, 2005. If the
            average share value for such period is below $12, then no options
            shall vest early. If such value is $12 or more, then 6,250 options
            shall vest early for each full dollar that such value exceeds $11,
            such that all 25,000 options shall vest early if such value equals
            or exceeds $15.exv10w1

 

Exhibit 10.1

EXECUTION VERSION

		
	 	        WAIVER dated as of March 18, 2003 (this “Waiver”) to the
Credit Agreement dated as of September 22, 2000 (the “Credit
Agreement”) as heretofore amended, among Select Medical
Corporation, a Delaware corporation (the “Company”), Canadian Back
Institute Limited, an Ontario corporation and a wholly owned
subsidiary of the Company (“CBIL” and, together with the Company,
the “Borrowers”), the Lenders party thereto, JPMorgan Chase Bank
(f/k/a The Chase Manhattan Bank), as US Agent and US Collateral
Agent, J.P. Morgan Bank Canada (f/k/a The Chase Manhattan Bank of
Canada), as Canadian Agent and Canadian Collateral Agent, Banc of
America Securities, LLC, as Syndication Agent, and CIBC, Inc., as
Documentation Agent.

               WHEREAS, the Borrowers have requested that the Lenders (such term and each
other capitalized term used but not otherwise defined herein having the meaning
assigned to it in the Credit Agreement) approve waivers of certain provisions
of the Credit Agreement;

               WHEREAS, the undersigned Lenders are willing, on the terms and subject to
the conditions set forth herein, to approve such waivers of the Credit
Agreement;

               NOW, THEREFORE, in consideration of these
premises, the Borrowers and the undersigned Lenders hereby agree as follows:

               SECTION 1. Waivers of Credit Agreement.
Effective as of the Waiver Effective Date (as defined in Section 4
hereof):

               (a)   Section 6.15 is waived to the extent, and only
to the extent, necessary to allow the Company to apply up to
$25,000,000 of its surplus cash to buyback a like amount of
Qualified Subordinated Indebtedness; provided that such
buyback may not occur until after the Company has prepaid
$25,000,000 of US Term Borrowings as contemplated in
paragraph (b) of this Section.

               (b)   Paragraph (e) of Section 2.11 is waived to the
extent, and only to the extent, necessary to allow the
Company to prepay an aggregate amount of up to $25,000,000
(including $13,705,000 representing Excess Cash Flow for the
fiscal year ended December 31, 2002, that is required to be
prepaid under paragraph (d) of Section 2.11) of US Term
Borrowings without ratably prepaying Canadian Term

 

 

2

               prepaying Canadian Term Borrowings and B/As; provided that such prepayment
must occur on or before March 31, 2003.

               SECTION 2.   Representations and Warranties. Each of the Borrowers
represents and warrants to each of the Lenders that, after giving effect to the
waivers contemplated hereby, (a) the representations and warranties of such
Borrower set forth in the Credit Agreement are true and correct in all material
respects on and as of the date of this Waiver, except to the extent such
representations and warranties expressly relate to an earlier date (in which
case such representations and warranties shall be true and correct in all
material respects as of the earlier date) and (b) no Default has occurred and
is continuing.

               SECTION 3.   Effectiveness. This Waiver shall become effective as of the
date (the “Waiver Effective Date”) when the Administrative Agent (or its
counsel) shall have received copies hereof that, when taken together, bear the
signatures of the Borrowers, the Required Lenders, and a majority in interest
of the Canadian Term Lenders.

               SECTION 4.   Applicable Law. THIS WAIVER SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

               SECTION 5.   No Other Waivers or Amendments. Except as expressly set forth
herein, this Waiver shall not by implication or otherwise limit, impair,
constitute a waiver of, or otherwise affect the rights and remedies of any
party under, the Credit Agreement, nor alter, modify, amend or in any way
affect any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement, all of which are ratified and affirmed in
all respects and shall continue in full force and effect. This Waiver shall
apply and be effective only with respect to the provisions of the Credit
Agreement specifically referred to herein. This Waiver shall constitute a
“Loan Document” for all purposes of the Credit Agreement and the other Loan
Documents.

               SECTION 6.   Counterparts. This Waiver may be executed in two or more
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute but one contract. Delivery of an executed
counterpart of a signature page of this Waiver by facsimile transmission shall
be as effective as

 

3

delivery of a manually executed counterpart of this Waiver.

               SECTION 7.   Headings. Section headings used herein are for convenience of
reference only, are not part of this Waiver and are not to affect the
construction of, or to be taken into consideration in interpreting, this
Waiver.

 

4

               IN WITNESS WHEREOF, the Borrowers and the undersigned Lenders have
caused this Waiver to be duly executed by their duly authorized officers,
all as of the date first above written.

	 	 	 	 	 
	 	SELECT MEDICAL CORPORATION,
	 	 	 	 	 
	 	 	
by:
	 	/s/ Martin F. Jackson

Name: Martin F. Jackson

Title: Senior Vice President & CFO
	 	 	 	 	 
	 	CANADIAN BACK INSTITUTE LIMITED
	 	 	 	 	 
	 	 	
by:
	 	/s/ Martin F. Jackson

Name: Martin F. Jackson 

Title: Vice President
	 	 	 	 	 
	 	JP MORGAN CHASE BANK, 

individually and as US Agent 

and US Collateral Agent,
	 	 	 	 	 
	 	 	
by:
	 	/s/ James S. Ely III
	 	 	 	 	

	 	 	 	 	Name: James S. Ely III

Title: Managing Director
	 
	 	J.P. MORGAN BANK CANADA, 

individually and as Canadian 

Agent and Canadian Collateral 

Agent,
	 	 	 	 	 
	 	 	
by:
	 	/s/ Christine Chan
	 	 	 	 	

	 	 	 	 	Name: Christine Chan 

Title: Vice President

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	Name of Institution:
	 	 	 	 	 
	 	 	 	                 CIBC
Inc.
	 	 	

	 	 	 	 	 
	 	 	
by:
	 	/s/ Terence Moore
	 	 	 	 	

	 	 	 	 	Name: Terence Moore

Title: Executive Director

          CIBC World Markets Corp., As Agent

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	Credit Suisse First Boston
	 	 	 	 	 
	 	 	
by
	 	/s/ Christopher Lally
	 	 	 	 	

	 	 	 	 	Name: Christopher Lally
	 	 	 	 	Title: Vice President
	 	 	 	 	 
	 	 	
by
	 	/s/ Jennifer A. Rieza
	 	 	 	 	

	 	 	 	 	Name : Jennifer A. Rieza
	 	 	 	 	Title: Associate

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	Name of Institution:
	 	 	 	 	 
	 	 	Fleet
National Bank

	 	 	 	 	 
	 	 	
by
	 	/s/ Maryann S. Smith
	 	 	 	 	

	 	 	 	 	Name: Maryann S. Smith
	 	 	 	 	Title: Director

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	Name of Institution:
	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION
	 	 	 	 	 
	 	 	
by
	 	/s/ Brian Schwinn
	 	 	 	 	

	 	 	 	 	Name: Brian Schwinn
	 	 	 	 	Title: Duly Authorized Signatory

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	Name of Institution:
	 	 	 	 	 
	 	 	
        PNC Bank, NA

	 
	 	 	
by
	 	/s/ Jeffrey Delay
	 	 	 	 	

	 	 	 	 	Name: Jeffrey Delay

Title: Assistant Vice President

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	Name of Institution:
	 	 	 	 	 
	 	 	 
              Societe
Generale

	 	 	 	 	 
	 	 	
by
	 	/s/ Richard Bernap
	 	 	 	 	

	 	 	 	 	Name: Richard Bernap
	 	 	 	 	Title: Director

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	AERIES
FINANCE-II LTD.
	 	 	
By:
	 	INVESCO Senior Secured Management, Inc.

As Sub-Managing Agent
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	AMARA 2 FINANCE, LTD.
	 	 	
By:
	 	INVESCO Senior Secured Management, Inc.

As Financial Manager
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	AVALON CAPITAL LTD. 2
	 	 	
By:
	 	INVESCO Senior Secured Management, Inc.

As Portfolio Advisor
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	CERES II FINANCE LTD.
	 	 	
By:
	 	INVESCO Senior Secured Management, Inc.

As Sub-Managing Agent (Financial)
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	OASIS COLLATERALIZED HIGH INCOME PORTFOLIOS-1, LTD.
	 	 	
By:
	 	INVESCO Senior Secured Management, Inc. As Subadvisor
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	CHARTER VIEW PORTFOLIO
	 	 	
By:
	 	INVESCO Senior
Secured Management, Inc.

As Investment Advisor
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	DIVERSIFIED CREDIT PORTFOLIO LTD.
	 	 	
By:
	 	INVESCO Senior
Secured Management, Inc.

As Investment Advisor
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	AIM FLOATING RATE FUND
	 	 	
By:
	 	INVESCO Senior
Secured Management, Inc.

As Attorney in fact
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	INVESCO
EUROPEAN CDO I S.A.
	 	 	
By:
	 	INVESCO Senior
Secured Management, Inc.

As Collateral Manager
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	INVESCO CBO 2000-1 LTD.
	 	 	
By:
	 	INVESCO Senior
Secured Management, Inc.

As Portfolio Advisor
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	SEQUILS-LIBERTY, LTD.
	 	 	
By:
	 	INVESCO Senior
Secured Management, Inc.

As Collateral Manager
	 	 	 	 	 
	 	 	
by
	 	/s/ Scott Baskind
	 	 	 	 	

	 	 	 	 	Name: Scott Baskind
	 	 	 	 	Title : Authorized Signatory

 

 

	 	 	 	 	 
	 	 	To approve the Waiver dated as of March 18,
2003 (the “Waiver”) to the Select Medical
Corporation Credit Agreement dated as of
September 22, 2000:
	 	 	 	 	 
	 	 	Name of Institution:
	 	 	 	 	 
	 	 	     Wachovia Bank, National Association

	 	 	 	 	 
	 	 	
by
	 	/s/ Jeanette A. Griffin
	 	 	 	 	

	 	 	 	 	Name: Jeanette A. Griffin
	 	 	 	 	Title: Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]