Document:

ex10-2_033113.htm

Exhibit 10.2

SECOND AMENDMENT TO FIFTH AMENDED AND RESTATED

REVOLVING CREDIT AND TERM LOAN AGREEMENT

THIS SECOND AMENDMENT TO FIFTH AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT (this “Amendment”), is made and entered into as of March 15, 2013, by and among HEALTHWAYS, INC., a Delaware corporation (the “Borrower”) and SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders (the “Administrative Agent”) and the Swingline Lender.

W I T N E S S E T H:

WHEREAS, the Borrower, the several banks and other financial institutions from time to time party thereto (collectively, the “Lenders”) and the Administrative Agent are parties to a certain Fifth Amended and Restated Revolving Credit and Term Loan Agreement, dated as of June 8, 2012, as amended by that certain First Amendment to Fifth Amended and Restated Revolving Credit and Term Loan Agreement dated as of February 5, 2013 (as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement), pursuant to which the Lenders have made certain financial accommodations available to the Borrower;

WHEREAS, the Borrower has requested that the Lenders and the Administrative Agent amend certain provisions of the Credit Agreement, and subject to the terms and conditions hereof, the Lenders are willing to do so;

NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of all of which are acknowledged, the Borrower and the Administrative Agent, for itself as Administrative Agent, Swingline Lender and Issuing Bank and on behalf of Lenders constituting Required Lenders, agree as follows:

1. Amendments.

(a) Section 1.1 of the Credit Agreement is hereby amended by adding the following sentence at the end of the definition of “Applicable Percentage”:

“Notwithstanding the foregoing, Level I of the Pricing Grid for the Applicable Percentage for Letter of Credit Fees for the period commencing on February 5, 2013 through and including December 31, 2013 shall be deemed increased by 25 basis points to 3.25%.”

2. Conditions to Effectiveness of this Amendment. Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of the Lenders hereunder, it is understood and agreed that this Amendment shall not become effective, and the Borrower shall have no rights under this Amendment, until the Administrative Agent shall have received (a) executed counterparts to this Amendment from the Borrower and the Guarantors and (b) written authorization from the Required Lenders to execute this Amendment.

3. Representations and Warranties.  To induce the Lenders and the Administrative Agent to enter into this Amendment, each Loan Party hereby represents and warrants to the Lenders and the Administrative Agent:

  

  

  

(a)           The Borrower and each of its Subsidiaries (i) is duly orga­nized, validly existing and in good standing as a corporation or limited liability company, as applicable, under the laws of the jurisdiction of its organization, (ii) ­has all requisite power and authority to carry on its business as now conducted, and (iii) is duly qualified to do business, and is in good standing, in each jurisdiction where such qualification is required, except where a failure to be so qualified would not reasonably be expected to result in a Material Adverse Effect;

(b)    The execution, delivery and performance of this Amendment by each Loan Party are within such Loan Party’s organizational powers and have been duly authorized by all necessary organizational action;

(c)           The execution, delivery and performance of this Amendment by each Loan Party (i) do not require any consent or approval of, registration or filing with, or any action by, any Governmental Authority, except those as have been obtained or made and are in full force and effect or where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (ii) will not violate any applicable judgment, law or regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (iii) will not violate or result in a default under any indenture, Material Agreement or other material instrument binding on the Borrower or any of its Subsidiaries or any of its material assets or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries and (iv) will not result in the creation or imposition of any Lien on any material asset of the Borrower or any of its Subsidiaries, except Liens (if any) created under the Loan Documents;

(d)           This Amendment has been duly executed and delivered by or on behalf of each Loan Party and constitutes a legal, valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity; and

(e)           After giving effect to this Amendment and any changes in facts and circumstances that are not prohibited by the terms of the Credit Agreement, the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects (subject to the limitation that representations and warranties effective as of a specified date are true and correct as of such specified date), and no Default or Event of Default exists as of the date hereof.

	
4.  

	
Reaffirmations and Acknowledgments.

(a)           Reaffirmation of Guaranty.  Each Subsidiary Loan Party consents to the execution and delivery by the Borrower of this Amendment and jointly and severally ratifies and confirms the terms of the Subsidiary Guarantee Agreement with respect to the indebtedness now or hereafter outstanding under the Credit Agreement as amended hereby and all promissory notes issued thereunder. Each Subsidiary Loan Party acknowledges that, notwithstanding anything to the contrary contained herein or in any other document evidencing any indebtedness of the Borrower to the Lenders or any other obligation of the Borrower, or any actions now or hereafter taken by the Lenders with respect to any obligation of the Borrower, the Subsidiary Guarantee Agreement (i) is and shall continue to be a primary obligation of the Subsidiary Loan Parties, (ii) is and shall continue to be an absolute, unconditional, joint and several, continuing and irrevocable guaranty of payment, and (iii) is and shall continue to be in full force and effect in accordance with its terms.  Nothing contained herein to the contrary shall release, discharge, modify, change or affect the original liability of the Subsidiary Loan Parties under the Subsidiary Guarantee Agreement.

  

  

  

(b)           Acknowledgment of Perfection of Security Interest. Each Loan Party hereby acknowledges that, as of the date hereof, the security interests and liens granted to the Administrative Agent and the Lenders under the Credit Agreement and the other Loan Documents are in full force and effect, are properly perfected and are enforceable in accordance with the terms of the Credit Agreement and the other Loan Documents.

5. Effect of Amendment.  Except as set forth expressly herein, all terms of the Credit Agreement, as amended hereby, and the other Loan Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of the Borrower to the Lenders and the Administrative Agent.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.  This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement.

6. Governing Law.   This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York and all applicable federal laws of the United States of America.

7. No Novation.  This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of the Credit Agreement or an accord and satisfaction in regard thereto.

8. Costs and Expenses.  The Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and out-of-pocket expenses of outside counsel for the Administrative Agent with respect thereto.

9. Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by facsimile transmission or by electronic mail in pdf form shall be as effective as delivery of a manually executed counterpart hereof.

10. Binding Nature.  This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors, successors-in-titles, and assigns.

11. Entire Understanding.  This Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotia­tions or agreements, whether written or oral, with respect thereto.

[Signature Pages Follow]

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed, under seal in the case of the Borrower and the Guarantors, by their respective authorized officers as of the day and year first above written.

BORROWER:

HEALTHWAYS, INC.

By: /s/ Alfred Lumsdaine                                                                        

Name:  Alfred Lumsdaine

Title:  Chief Financial Officer and Secretary

SUBSIDIARY LOAN PARTIES:

AMERICAN HEALTHWAYS SERVICES, LLC

CARESTEPS.COM, INC.

POPULATION HEALTH SUPPORT, LLC

HEALTHWAYS INTERNATIONAL, INC.

HEALTHWAYS HEALTH SUPPORT, LLC

HEALTHWAYS WHOLEHEALTH NETWORKS, INC.

HEALTHWAYS QUITNET, LLC

HEALTHWAYS HEALTHTRENDS, LLC

CLINICAL DECISION SUPPORT, LLC

MEYOU HEALTH, LLC

HEALTHHONORS, LLC

THE STRATEGY GROUP, LLC

NAVVIS HEALTHCARE, LLC

NAVVIS CONSULTING, LLC

HEALTHWAYS HAWAII, LLC

ASCENTIA HEALTH CARE SOLUTIONS L.L.C.

By: /s/ Alfred Lumsdaine                                                                              

Name:  Alfred Lumsdaine

Title:  Chief Financial Officer and Secretary

[SIGNATURE PAGE TO SECOND AMENDMENT TO FIFTH AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

  

  

  

ADMINISTRATIVE AGENT:

SUNTRUST BANK, as Administrative Agent

By:  /s/ Mary E. Coke                                                                          

Name:  Mary E. Coke

Title:  Vice President

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO FIFTH AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]Table of Contents

Exhibit 10.1

 

     March 21, 2013

Mr. Ronald Casciano

[ ***]

[ ***]

Dear Ron;

On behalf of the Board of Directors of PAR Technology Corporation ("PAR"), I  am pleased to offer you a promotion to the position of President and Chief Executive Officer of PAR.  Upon execution by you, this letter will constitute the offer from PAR regarding your position beginning March 25, 2013, the date at which your promotion will be effective (the "Start Date").  This offer and your employment relationship are subject to the terms and conditions of this letter set forth below.

Position

Commensurate with this assignment, you will have the title of President and Chief Executive Officer of PAR, reporting to the Board of Directors (the "Board").   As soon as practicable, you will be appointed to the Board of Directors. 

Annual Base Salary

You will be compensated at an annualized salary of $350,000 ("Annual Base Salary"), subject to applicable payroll deductions and such federal, state and local taxes and other withholdings as are required by law.  The Annual Base Salary shall be paid in accordance with PAR's standard payroll practices in effect from time to time.  

Annual Cash Bonus

You will be eligible to receive an "Annual Cash Bonus" in accordance with the terms of PAR's Incentive Compensation Plan ("ICP"). Your annual participation in the 2013 ICP will be up to 32.5% of your Annual Base Salary and shall be based upon performance against financial targets associated with the Annual Operating Plan ("AOP") and specific business objectives determined by the Board of Directors on an annual basis. After 2013, your ICP target will be 65% of your Annual Base Salary.    Your Cash bonus calculation for January 1, 2013 through March 24, 2013 will be based on your previous rate which is 25% of Annual Base Salary.  The new Annual Cash Bonus target of 32.5% will be applied from March 25, 2013 through December 31, 2013.   

R. Casciano, page 2

Transition Bonus

PAR will provide a one time cash bonus of $30,000 paid to you no later than 30 days from your Start Date in consideration for your leadership and additional contributions during a time of transition in the company. 

Annual Long Term Incentive Plan

The Board is committed to maintaining an equity-based long term incentive ("LTI") program under the PAR Technology Corporation 2005 Equity Incentive Plan.  The LTI is designed to provide to senior management equity-based incentives tied to long­ term financial performance goals.  You will be eligible for an LTI grant in 2013 that will be comprised of 30,000 performance shares and 15,000 stock options.  These shares will be granted when long term goals and other plan details are finalized.  Full information on this plan will be provided to you under separate cover.  The stock options will vest 25% per year on the anniversary of the grant date.  Should you leave PAR before the performance period ends, a pro-rata portion of the performance shares will be retained by you.  These will vest and payout according to the schedule and the terms of the plan.

Special One-Time Grant Under Long Term Incentive Plan  

During 2013, you will be granted 40,000 performance shares as part of a one-time grant under the LTI program and the PAR Technology 2005 Equity Incentive Plan. These shares will be granted when long term goals and other plan details are finalized and shall vest and payout in accordance with the terms, conditions, schedule, goals and objectives of such Plan.  Full information on this plan will be provided to you under separate cover.  Should your employment terminate for any reason other than for cause, a pro-rata portion of the performance shares will be retained by you.  These will vest and payout according to the schedule and the terms of the plan.

Severance

If your employment is terminated before the one year anniversary of the Start Date by PAR for any reason other than for Cause, PAR shall be obligated to pay you only your accrued and unpaid Annual Base Salary as of the date of termination,  and other accrued benefits, if any, and severance equal to your then current Base Salary through your first year anniversary date, and 2) a pro-rated portion of any current year Incentive Compensation Plan scored according to the ICP plan and due you in the following calendar year.  

Benefits

You will continue to participate in all employee benefit plans in effect for PAR employees generally as well as other benefits offered to you as a PAR senior executive. Your participation shall be subject to the terms of the applicable plan documents, as well as generally applicable policies associated with such benefits, as such plan documents and policies may be amended from time to time.

 

R. Casciano, page 3

If you accept the position, your employment with Company will continue to be "at-will."  This means your employment is not for any specific period of time and can be terminated by you at any time for any reason.  Likewise, Company may terminate the employment relationship at any time, with or without cause or advance notice.  In addition, Company reserves the right to modify your position or duties to meet business needs and to use discretion in deciding on appropriate discipline.  Any change to the at-will employment relationship must be by a specific, written agreement signed by you and the Board of Directors.

To indicate your acceptance of the terms and conditions set forth in this document, please sign and date this letter in the space provided below and return it to me no later than three days from the date of this letter.

We hope your assignment will prove mutually rewarding, and we look forward to working with you in this new role.

Sincerely,

Mr. Sangwoo Ahn

Chairman of the Board

PAR Technology Corporation

I have read this letter in its entirety and agree to the terms and conditions of employment.  I understand and agree that my employment with the Company is at-will.

_______________________________________                         _________________________

R. Casciano                                                                                   Date

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