SECONDAMENDMENT FORBEARANCE AGREEMENT
Exhibit 10.2
SECOND AMENDMENT FORBEARANCE AGREEMENT
THIS SECOND AMENDMENT TO THE FORBEARANCE AGREEMENT (this Second Amendment), dated as of January 30, 2006, is entered into among CURATIVE HEALTH SERVICES, INC., a Minnesota corporation formerly known as Curative Holding Co. (Holdings), EBIOCARE.COM, INC., a Delaware corporation (eBioCare), HEMOPHILIA ACCESS, INC., a Tennessee corporation (Hemophilia Access), APEX THERAPEUTIC CARE, INC., a California corporation (Apex), CHS SERVICES, INC., a Delaware corporation (CHS), CURATIVE HEALTH SERVICES OF NEW YORK, INC., a New York corporation (CHSNY), OPTIMAL CARE PLUS, INC., a Delaware corporation (Optimal Care), INFINITY INFUSION, LLC, a Delaware limited liability company (Infinity), INFINITY INFUSION II, LLC, a Delaware limited liability company (Infinity II), INFINITY INFUSION CARE, LTD., a Texas limited partnership (Infinity Infusion), MEDCARE, INC., a Delaware corporation (Medcare), CURATIVE PHARMACY SERVICES, INC., a Delaware corporation (CPS), CURATIVE HEALTH SERVICES CO., a Minnesota corporation formerly known as Curative Health Services, Inc. (CHSC), CRITICAL CARE SYSTEMS, INC., a Delaware corporation (CCS) (Holdings, eBioCare, Hemophilia Access, Apex, CHS, CHSNY, Optimal Care, Infinity, Infinity II, Infinity Infusion, Medcare, CPS, CHSC and CCS are sometimes collectively referred to herein as the Borrowers and individually as a Borrower), CURATIVE HEALTH SERVICES III CO. (Guarantor) Minnesota corporation, and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (GE Capital), as Agent and Lender.
RECITALS:
A. Pursuant to that certain Forbearance Agreement dated December 1, 2005 by and between Borrowers and GE Capital (the Forbearance Agreement), GE Capital agreed to forbear on certain of its rights and obligations under an Amended and Restated Credit Agreement, dated April 23, 2004, as amended by (i) that certain First Amendment to Amended and Restated Credit Agreement and Collateral Documents dated as of May 3, 2004, (ii) that certain Second Amendment to Amended and Restated Credit Agreement dated as of June 30, 2004, (iii) that certain Third Amendment to Amended and Restated Credit Agreement dated as of October 20, 2004 and (iv) that certain Fourth Amendment to Amended and Restated Credit Agreement dated as of December 31, 2004 (as so amended, the Credit Agreement);
B. By First Amendment to Forbearance Agreement (the First Amendment) dated as of December 23, 2005, the parties amended certain terms of the Forbearance Agreement [As used herein, the term Forbearance Agreement shall include the First Amendment].
C. The parties hereto have agreed to further amend certain terms of the Forbearance Agreement upon the terms and conditions and other requirements set forth herein.
NOW, THEREFORE, in consideration of the foregoing, the terms and conditions set forth in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, GE Capital, the Borrowers and Guarantor agree as follows:
1. Definitions: Unless otherwise defined herein, all capitalized terms herein shall have the meanings assigned to such terms in the Forbearance Agreement.
2. Confirmation of Representation and Warranties: The Borrowers and Guarantor hereby confirm that all of the representations and warranties set forth in the Forbearance Agreement are true and correct with respect to such Borrower.
3. Enforceability: This Second Amendment constitutes the legal, valid and binding obligation of the Borrowers and Guarantor, and is enforceable against Borrowers and Guarantor according to its terms.
4. Effective Date: This Second Amendment shall be effective upon execution and delivery to GE Capital of this Second Amendment by Borrowers and Guarantor.
5. Costs: Borrowers shall be responsible for the payment on demand of all reasonable out-of-pocket costs and expenses of GE Capital heretofore or hereafter incurred, which are related to or in connection with this Second Amendment and any documents, agreements or instruments executed in connection herewith or therewith including, without limitation, the reasonable fees and expenses of the consultants, attorneys or other professionals retained by GE Capital (the Documentation Fees). Nothing in this Second Amendment shall be intended or construed to hold the Agent or the Lenders liable or responsible for any expense, liability or obligation of any kind or nature whatsoever incurred by the Borrowers or any Guarantor (including, without limitation, attorneys fees and expenses, other professionals fees and expenses, any crisis managers fees and expenses, wages, salaries, payroll taxes, withholdings, benefits or other amounts payable by or on behalf of the Borrowers or any Guarantor). Additionally, GE Capital may reserve from the amounts otherwise available to the Borrowers as a Revolving Credit Advance such amounts necessary to pay the Documentation Fees.
6. Amendments to the Forbearance Agreement: Effective as of the date of this Second Amendment, the following provision of the Forbearance Agreement is amended:
(a) Sections 7(c) (iv) is deleted and replaced with the following:
(iv) Distribute solicitations to the plan and disclosure statement on or before February 3, 2006;
7. Reference to the Effect on the Forbearance Agreement:
(a) Upon the effectiveness of this Second Amendment, each reference in the Forbearance Agreement to this Agreement, hereunder, hereof, herein or words of similar import shall mean and be a reference to the Forbearance Agreement as amended by this Second Amendment.
(b) Except as specifically amended above, the Forbearance Agreement, and all other documents related to the Credit Agreement, shall remain in full force and effect, and are hereby ratified and confirmed.
(c) The execution, delivery and effectiveness of this Second Amendment shall not, except as expressly provided in this Second Amendment, operate as a waiver of any right, power
or remedy of GE Capital, nor constitute a waiver of any provision of the Forbearance Agreement, or any other documents, instruments and agreements executed or delivered in connection with the Credit Agreement and/or the Forbearance Agreement. GE Capital reserves all of its rights under the Credit Agreement and the Forbearance Agreement.
8. Governing Law: This Second Amendment shall be governed by and construed in accordance with the laws of the State of New York.
9. Headings: Section headings in this Second Amendment are included for convenience purposes only and shall not constitute a part of this Second Amendment for any other purpose.
10. Counterparts: This Second Amendment may be executed in counterparts, and both counterparts taken together shall be deemed to constitute on and the same instrument. This Second Amendment may be executed by facsimile.
IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be acknowledged, executed and delivered by their duly authorized officers as of the date first above written.
| LENDER AND AGENT: |
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| GENERAL ELECTRIC CAPITAL CORPORATION | |||||
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| By: |
| /s/ Parminder Atwal |
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| Name: |
| Parminder Atwal |
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| Title: Its Duly Authorized Signatory |
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[BORROWERS SIGNATURES CONTINUE ON NEXT PAGE]
| BORROWERS: | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Chief Financial Officer |
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| Date: |
| January 30, 2006 |
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| EBIOCARE.COM, INC. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Treasurer |
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| Date: |
| January 30, 2006 |
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| HEMOPHILIA ACCESS, INC. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Treasurer |
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| Date: |
| January 30, 2006 |
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| APEX THERAPEUTIC CARE, INC. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Chief Financial Officer |
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| Date: |
| January 30, 2006 |
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| CHS SERVICES, INC. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Treasurer |
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| Date: |
| January 30, 2006 |
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| CURATIVE HEALTH SERVICES OF NEW | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Treasurer |
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| Date: |
| January 30, 2006 |
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| OPTIMAL CARE PLUS, INC. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Treasurer |
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| Date: |
| January 30, 2006 |
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| INFINITY INFUSION, LLC | ||||||||
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| By: Curative Health Services Co., its Sole | ||||||||
| Member | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Chief Financial Officer |
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| Date: |
| January 30, 2006 |
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| INFINITY INFUSION II, LLC | ||||||||
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| By: Curative Health Services Co., its Sole | ||||||||
| Member | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Chief Financial Officer |
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| Date: |
| January 30, 2006 |
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| INFINITY INFUSION CARE, LTD. | ||||||||
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| By: Infinity Infusion II, LLC, its Sole General | ||||||||
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| By: Curative Health Services Co., the Sole | ||||||||
| Member of Infinity Infusion II, LLC | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Chief Financial Officer |
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| Date: |
| January 30, 2006 |
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| MEDCARE, INC. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Treasurer |
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| Date: |
| January 30, 2006 |
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| CURATIVE PHARMACY SERVICES, INC. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Treasurer |
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| Date: |
| January 30, 2006 |
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| CURATIVE HEALTH SERVICES CO., | ||||||||
| a Minnesota corporation formerly known as | ||||||||
| Curative Health Services, Inc. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| CFO and Treasurer |
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| Date: |
| January 30, 2006 |
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| CRITICAL CARE SYSTEMS, INC. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Chief Financial Officer |
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| Date: |
| January 30, 2006 |
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| GUARANTOR: | ||||||||
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| CURATIVE HEALTH SERVICES III CO. | ||||||||
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| By: |
| /s/ Thomas Axmacher |
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| Name: |
| Thomas Axmacher |
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| Title: |
| Chief Financial Officer |
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| Date: |
| January 30, 2006 |
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