FIRST AMENDMENT FORBEARANCE AGREEMENTDefault Notice Forbearance Agreement |
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Exhibit 10.1
FIRST AMENDMENT FORBEARANCE AGREEMENT
THIS FIRST AMENDMENT TO THE FORBEARANCE
AGREEMENT (this “Amendment”),
dated as of December 23, 2005, 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”nd
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. The parties hereto have agreed to 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.
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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 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 Amendment shall be effective
upon (a) execution and delivery to GE Capital of this Amendment by
Borrowers and Guarantor, and (b) review and approval by GE Capital of an
updated Borrowing Base certificate (in the form as approved by GE Capital in
its sole discretion), and (c) payment of the Extension Fee (hereafter
defined).
5. Costs: Borrowers shall be responsible for the payment on
demand all reasonable out-of-pocket costs and expenses of GE Capital heretofore
or hereafter incurred, which are related to or in connection with this
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”). In addition, the
Borrowers shall pay to GE Capital an extension fee in an amount equal to
$75,000 (the “Extension Fee”). Nothing in this
Agreement 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 manager’s 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 and Extension Fee.
6. Amendments to the Forbearance Agreement: Effective as of the date of this
Amendment, the following provisions of the Forbearance Agreement are amended:
(a)
The date April 28, 2006 in Section 1(b) of the Forbearance
Agreement is extended to June 10, 2006;
(b)
GE Capital acknowledges that the Borrowers have complied with their obligations
under Section 7(c)(i), (ii) and (iii) of the Forbearance
Agreement;
(c)
Sections 7(c) (iv-vi) are deleted and replaced with the following.
(iv) Distribute
solicitations to the plan and disclosure statement on or before
January 31, 2006;
(v) File Chapter 11 on or before March 15, 2006; and
(vi) Confirm a
Chapter 11 case on or before June 1, 2006.
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7. Reference to the Effect on the Forbearance
Agreement:
(a) Upon the effectiveness of
this 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 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 Amendment shall not, except as expressly provided in
this 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 Amendment shall be governed by and construed in
accordance with the laws of the State of New York.
9. Headings: Section headings in this Amendment are included for convenience
purposes only and shall not constitute a part of this Amendment for any other
purpose.
10. Counterparts: This Amendment may be executed in
counterparts, and both counterparts taken together shall be deemed to
constitute on and the same instrument. This Amendment may be executed by
facsimile.
IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be acknowledged, executed and delivered by
their duly authorized officers as of the date first above written.
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LENDER AND AGENT: |
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GENERAL ELECTRIC CAPITAL CORPORATION |
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Title: Its Duly Authorized Signatory |
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[BORROWERS’ SIGNATURES CONTINUE ON NEXT PAGE]
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BORROWERS: |
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CURATIVE
HEALTH SERVICES, INC., |
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EBIOCARE.COM, INC. |
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HEMOPHILIA ACCESS, INC. |
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APEX THERAPEUTIC CARE, INC. |
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