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Exhibit No. 10-1
ASSET PURCHASE AGREEMENT
XXXXXX XXXXX SERVICES, INC., d/b/a XXXXXX SENIORCARE ("Buyer") and MHM EXTENDED
CARE SERVICES, INC. and its corporate parent, MHM SERVICES, INC. (collectively
"seller") hereby agree as follows:
Buyer desires to purchase and Seller desires to sell to Buyer certain assets and
business related to Seller's delivery of mental health services within the State
of Massachusetts (the "Operations"), all on the terms and subject to the
conditions set forth in this Agreement. "The parties acknowledge that the
representations, warranties, covenants and agreements made by MHM Services,
Inc., are a material inducement to Buyer's decision to consummate this
transaction and shall be deemed material and relied upon by Buyer."
1. ACQUIRED ASSETS. The assets to be conveyed shall consist of the
Operations as currently operated by Seller in Massachusetts (the "State")
including but not limited to outpatient clinics (including license); behavioral
health services principally to nursing homes and extended care facilities; all
property, policy and procedures manuals, office and other equipment in place on
this date; to the extent assignable, all contract rights, affiliation
agreements, and non-compete agreements relating to the Operations; together with
all other assets relating to the Operations in the State (collectively, the
Acquired Assets"). The Acquired Assets are set out in Schedule 1.2 attached
hereto. Subject to the terms and conditions of this Agreement, Buyer agrees to
purchase and Seller agrees to sell, assign and deliver to Buyer as of Closing,
as defined in Section 10.1 of this Agreement, all of Seller's right, title and
interest in, to and under the Acquired Assets, free and clear of any mortgage,
pledge, hypothecation, claim, security interest, encumbrance, right or interest
of others, lease, license, easement, encroachment, covenant, title defect, lien,
option or right of first refusal (collectively, "Liens"). The Acquired Assets
shall not include, and Seller shall retain, all cash, cash equivalents, and
accounts receivable arising from the provision of services in the State prior to
the Closing Date, all assets of business operations similar to the Operations
conducted by Seller in States other than the State, and such assets related to
the Operations which Buyer in its sole discretion determines not to purchase
(the "Excluded Assets"). The Excluded Assets are set forth in Schedule 1.1.
2. CONSIDERATION. The consideration for the Acquired Assets will be payment
to Seller by Buyer of the sum of eight hundred fifty thousand dollars
($850,000.00) (the "Purchase Price"). At Closing, Buyer will pay the Purchase
Price to Seller by wire transfer of immediately available funds.
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2.1 Allocation of Purchase Price. The Purchase Price shall be
allocated in the manner set forth in Schedule 2.1. Each of the parties agrees
that any tax returns or other tax information such party may file or cause to be
filed with any governmental agency shall be prepared and filed consistent with
such allocation of the Purchase Price, and any positions taken in connection
with an audit of any such tax return or in connection with any contest of any
adjustment of the Purchase Price likewise shall be consistent with such
position.
2.2 Commissions and Finders Fees. Buyer and Seller warrant and
represent to each other that no broker or finder has acted for it in connection
with this transaction and that no brokerage, commissions or similar fees will be
due to any person at Closing.
2.3 Deposits. On execution of this Agreement, Buyer will deposit in
escrow with Seller the sum of twenty thousand dollars ($20,000.00) as a an
xxxxxxx money deposit. This deposit shall be non-refundable and shall be
retained by Seller as liquidated damages as the sole remedy if the transaction
fails to close other than as a result of Seller's breach of this Agreement. At
Closing, the deposit shall be applied toward the purchase consideration.
3. ASSUMPTION OF LIABILITIES. Buyer will not assume any liabilities of
Seller (including but not limited to malpractice claims, leases, contingent
liabilities, or environmental liabilities) which related to the activities of
Seller prior to the Closing Date, except that Buyer will assume and indemnify
seller for: (a) obligations, if any, for the provision of mental health services
of the Acquired Assets to patients in the State after Closing; and (b) all
liabilities arising from Buyer's conduct of the Operations after Closing. Seller
shall continue to be obligated to pay, perform and discharge such debts,
obligations and liabilities and hold Purchaser harmless from:
(I) any and all obligations for the payment of any long term
indebtedness of Seller incurred prior to closing;
(II) any and all liabilities of the Seller relating to acts or
omissions of Seller, including medical malpractice, occurring
through the Closing Date;
(Iii) any and all claims against Seller of the United States Government
under the Medicare program, or any state under Medicaid programs,
or of any other third party payers, arising out of the activities
of the Seller's business through the Closing Date;
(Iv) federal and state income taxes of Seller, if any, payable with
respect to any activities of the Seller through the Closing Date;
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(V) sales and other taxes (including, without limitation, use taxes)
payable by Seller with respect to the business or operations of
the Seller through the Closing Date or the transactions
contemplated hereby;
(Vi) any other debt, obligation or liability of the Seller other than
those debts, obligations and liabilities of the Seller
specifically assumed by Purchaser pursuant to this Agreement,
whether or not such debt, obligation or liability is disclosed on
the financial statements as hereinafter defined;
(Vii) any liability or obligation of Seller to any employee or former
employee of the Seller or to any third party, under any pension,
insurance, bonus, profit-sharing or other employee benefit plan or
arrangement or any obligation relating to salaries, bonuses,
vacation or severance pay, including, without limitation, any
liabilities relating to the activities and obligations of the
Seller through the Closing Date;
(Viii) the Seller's obligations and liabilities arising under this
Agreement;
(Ix) any liabilities of the Seller to any of its shareholders arising
out of any action by the Seller in connection with the transaction
contemplated herein;
(X) any obligation or monies owed by Seller to the Commonwealth of
Massachusetts regarding Medicaid billing for periods prior to the
Closing Date,
(Xi) any accrued but unpaid payroll tax obligations of the Seller
relating to the activities and operations of the Seller prior to
the Closing Date.
4. DUE DILIGENCE. Buyer has had ample opportunity to conduct and complete
its due diligence examinations and inspections of the Acquired Assets and has
completed such due diligence as it deems necessary and appropriate. During the
Due Diligence Period, Buyer has had full access during normal business hours to
the Acquired Assets including Seller's books, records and other information
concerning the Operations for the purpose of conducting such inspections and
tests as Buyer reasonably has requested.
5. Representations and Warranties of the Seller. In order to induce the
Purchaser to enter into and perform this Agreement, the Seller represents,
warrants and agrees as set forth in this Section 5. The representations and
warranties as set forth in this
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Section relate to the activities and operations of the Seller through the
Closing Date.
5.1 Organization. The Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware with all
the requisite power and authority to execute, deliver and perform this Agreement
and to hold the properties, rights and assets and to carry on the businesses now
conducted by it.
5.2 Ownership of Assets. On the Closing Date, except as set forth on Schedule
5.2 hereto, the Seller is the legal and beneficial owner of the Acquired Assets,
free and clear of any claims, charges, equities, liens (including tax lines),
security interests and encumbrances, and the Seller has full right, power and
authority to sell, transfer, assign, convey and deliver all of the Acquired
Assets.
5.3 The Seller's Authority and No Conflict. The Seller has the full right,
power and authority to execute, deliver and carry out the terms of this
Agreement and all documents and agreements necessary to give effect to the
provisions of this Agreement, and this Agreement has been duly authorized,
executed and delivered by the Seller. To the best of Seller's knowledge, the
consummation of the transactions contemplated hereby will not result in any
material conflict, breach or violation of, or default under, any applicable
statute, or any judgment. The consummation of this agreement will not violate
any order, decree, mortgage, agreement, deed of trust, indenture or other
instrument to which the Seller is a party or by which Seller is bound. All
action and other authorizations prerequisite to the execution of this Agreement
and the consummation of the transactions contemplated by this Agreement have
been or will be taken or obtained by the Seller as of the Closing Date. This is
a valid and binding agreement of the Seller enforceable in accordance with its
terms.
5.4 Compliance with Laws. To the best of Seller's knowledge, in connection
with the conduct of the operation and the conduct of its business, and in
connection with the lease of the Premises (as hereinafter defined) and ownership
of assets of the Seller, the Seller has complied with all applicable statutes
and regulations of all governmental authorities having jurisdiction over it
except where the failure to so comply would not have a material adverse effect
on the business or properties of the Seller. The Seller has not received any
notice of any violations of applicable laws.
5.5 Financial Statements Provided. Copies of the financial statements of the
Seller listed on and annexed to Schedule 5.5 hereto have been initialed for
identification and delivered to the Purchaser. The annual financial statements
have been prepared in accordance with the accrual basis method of accounting
throughout the periods indicated, and fairly present its financial position as
at the respective dates of the balance sheets included in the financial
statements and the results of its operations for the respective periods
indicated. The interim financial statements which are listed on Schedule 5.5
hereto, have been prepared in accordance with the accrual basis method
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of accounting according to procedures consistently applied to such statements
from month to month since August 30, 1998, and subject to normal year end
adjustments, and fairly present its financial position as of the date thereof in
accordance with generally accepted accounting principles.
5.6 Absence of Changes. Except as disclosed on Schedule 5.6 hereto, since
August 30, 1998, there has not been any (a) transaction by the Seller with
respect to the Operations except in the ordinary course of business as conducted
during the twelve-month period ending on that date; (b) material adverse change
in the condition (financial or otherwise), business or liabilities or assets of
the Operations, other than disclosed in the financial information provided to
Purchaser through August 30, 1998 and Schedule 5.6; (c) destruction, damage to,
or loss of Acquired Assets (whether or not covered by insurance) that materially
and adversely affects the condition, financial or otherwise, or business of the
Operations, (d) labor disputes or other event or condition relating to
employment or labor matters of any character materially and adversely affecting
the condition, financial or otherwise, of the Acquired Assets or the Operations,
(e) change in accounting methods or practices (including, without limitation,
change in depreciation or amortization policies or rates) by the Seller, as to
the operations (f) revaluation of Acquired Assets; (g) sale or transfer of any
asset of the Operations except in the ordinary course of business;(h) amendment
or termination of any material contract, agreement, or license as to the
operations to which the Seller is a party (except such nursing home contracts as
may have been terminated in the ordinary course.
5.7 Absence of Undisclosed Liabilities. The Seller does not have any material
debt, liability or obligation of any nature relating to the operations, whether
accrued, absolute, contingent or otherwise, and whether due or to become due,
which is not reflected or reserved against in the financial statements of the
Seller except for: (a) those which are not required by generally accepted
accounting principles to be so reflected, (b) those which were incurred in the
ordinary course of business and are usual and normal in amount both individually
and in the aggregate, and (c) those disclosed on Schedule 5.7.
5.8 Tax Returns and Audits. Within the times and in the manner prescribed by
law, the Seller has filed all Federal, state and local tax returns required by
law and has paid all taxes, assessments, and penalties due and payable, except
Seller has not filed State income tax returns for its fiscal year 1997 as to
which no taxes are or will be due. There are no present disputes as to taxes of
any nature payable by the Seller. The Seller has not received notice of, nor is
it otherwise aware of, an audit or examination, nor is it a party to any action
or proceeding by any governmental authority for assessment or collection of
taxes, excise taxes, charges, penalties or interest; nor has any claim for
assessment and collection been asserted against it, except as set forth on
Schedule 5.8 hereto. The Seller has accrued or paid or will have caused to be
paid on or prior to the Closing date, all applicable unemployment taxes, payroll
taxes, social
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security taxes, occupation taxes, property taxes, excise taxes, sales and use
taxes, and all other taxes of every kind, character or description required to
be paid, except for taxes which are not yet due and subject to proration.
5.9 (Intentionally Omitted)
5.10 Existing Employment and Other Contracts ERISA.
(a) Schedule 5.10 contains a list of all employment contracts
consulting agreements and collective bargaining agreements as to
the Operations which the Seller is a party or by which it is
bound; all such contracts and arrangements are in full force and
effect and the Seller is not in default under any of them.
Notwithstanding anything to the contrary, Purchaser shall not be
obligated in any way under such contracts and arrangements (except
for those contracts being assumed by Purchaser pursuant to Section
3). There is neither pending nor, to the best of the Seller's
knowledge, any basis therefor or threat thereof with respect to
any contract, agreement, covenant or obligation referred to in the
preceding sentence, including, without limitation, any claim for
money due for allegedly unpaid vacation time or sick pay. The
Seller views its relationship with its employees as satisfactory,
and there are no labor controversies pending or, to the best of
the Seller's knowledge, threatened between the Seller and the
employees of the Seller.
(b) Seller is in material compliance with all requirements, including
reporting, filing and disclosure requirements, applicable under
ERISA or otherwise to all employee welfare benefit and employee
pension benefit plans including but not limited to deferred
compensation plans, incentive plans, bonus plans or arrangements,
stock option plans, stock purchase plans, golden parachute
agreements, severance pay plans dependent care plans, cafeteria
plans, employee assistance programs, scholarship programs
employment contracts and other similar plans, agreements and
arrangements that are currently in effect as of the Closing Date,
for the benefit of directors, officers, employees, or former
employees (or their beneficiaries) of the Seller.
(c) The Seller shall have paid all compensation owed to the employees
of the Seller engaged in the Operations through the Closing Date
other than as to compensation not yet due.
(d) All pension and benefit plans have been fully funded through the
Closing.
(e) Seller represents and warrants that the non-competition agreements
executed by the Clinicians affiliated with the Seller, and
transferred to Buyer pursuant to this Agreement, represent the
portion of the Seller's Massachusetts behavioral health business
as set forth in Schedule 9 attached hereto.
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5.11 Insurance Policies. Schedule 5.11 contains a description of all insurance
policies held by the Seller concerning its business and the premises. All such
policies have the respective limits set forth in Schedule 5.11. If not already
covered, Seller will arrange for Professional Liability Tail Coverage for no
less than one million (1,000,000) per incident and three million aggregated for
no less than four years after closing.
5.12 Litigation. Except as disclosed in Schedule 5.12, there is no suit,
action, arbitration, or legal administrative, or other proceeding, or
governmental investigation pending or the Seller's knowledge threatened against
or affecting the operations or the Acquired Assets, any of the business, assets,
or condition, financial or otherwise, of the Seller or any of the transactions
or decree of any Federal, state, local, or foreign court, department, agency or
instrumentality.
5.13 Medicare CHAMPUS and Medicaid. All Clinics and Programs are the subject
of an existing Medicare contract with the Federal Government with the fiscal
intermediary whose name is set forth on Schedule 5.13 hereto, are certified for
participation in the Medicare program, CHAMPUS program and Medicaid Program, and
are parties to such agreements with other third party payers as are set forth on
Schedule 5.13 hereto, all of which are in full force and effect and no default
or event has occurred thereunder which, with the giving of notice, the passage
of time, or both, would constitute a default thereunder.
5.14 Filing of Reports. Other than claims or reports pertaining to individual
patients, the Seller has timely filed or caused to be timely filed all reports
of every kind whatsoever required by law or by written or oral contract or
otherwise to be made with respect to the purchase of services by a third- party
payers, including but not limited to, Medicare, Medicaid and CHAMPUS programs
and other insurance carriers, and all such reports are, or will be if filed
after the Closing Date, complete and accurate in all material respects.
5.15 Licenses. The Clinics, Programs and other business units of the Seller
have all material contracts, licenses, permits, consents, franchises and
approvals required by law or governmental regulations or that are necessary from
all applicable Federal, state and local authorities and any other regulatory
agencies for the lawful conduct of its business, and it is not in default in any
material respect under such licenses, permits, consents and approvals.
5.16 No Broker. The Seller represents and warrants it has not dealt with any
broker or finder in connection with any of the transactions contemplated by this
Agreement and, insofar as it knows, no other broker or other person is entitled
to any commission or finder's fee in connection with any of such transactions.
5.17 No Misleading Statements. This Agreement and the information and
schedules
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referred to herein do not include any untrue statement of a material fact and do
not omit to state any material fact necessary to make the statements contained
herein or therein, in light of the circumstances under which they were made, not
misleading.
5.18 Employee Matters. The Seller acknowledges that it has no information that
the Purchaser would or would not qualify for successor status under Rev. Proc.
84-77. Pursuant to that pronouncement, the parties agree the Purchaser shall
follow procedures consistent with successor status. In addition, both parties
shall file 941's for the quarter during which the sale takes place, reflecting
the wages and deposits made during its period of ownership.
6. REPRESENTATIONS AND WARRANTIES OF BUYER. Buyer represents and warrants to
Sellers as follows:
6.1 Corporate Action. Buyer has taken all action required to authorize the
execution and consummation of this Agreement. This Agreement constitutes the
valid and legally binding obligations of Buyer enforceable in accordance with
its terms, except that enforce ability may be limited by applicable equitable
principles or bankruptcy, insolvency, or similar laws affecting the enforcement
of creditors rights generally.
6.2 No Conflict With Other Agreements or Laws. The execution and consummation
by Buyer of this Agreement, and the other agreements and documents contemplated
hereby, will not (a) violate the terms of any instrument, agreement, judgment or
decree to which Buyer is a party, or by which Buyer or any of its properties is
bound, (b) be in conflict with, result in a breach of or constitute (with giving
of notice or lapse of time or both) a default under any such instrument,
agreement, judgment or decree, (c) result in the creation or imposition of any
Lien upon Buyer or its properties or assets, or (d) violate any applicable
federal, state, local or foreign law, regulation or order.
6.3 Organization and Qualification. Buyer is duly organized, validly existing
and in good standing. Buyer has full power and authority to execute and
consummate this Agreement.
6.4 Financial Standing. Buyer has the financial resources to consummate the
transaction contemplated in this Agreement.
7. PRE-CLOSING COVENANTS. The parties covenant and agree as follows:
7.1 Conduct of Business in Ordinary Course. The Seller agrees that from
execution of this Agreement until the Closing Date, the Seller will (i) not
increase any compensation payable to any employees or consultants of the
Operations, (ii) not create any material obligation or liability (absolute or
contingent) secured by the Acquired Assets; (iii) not enter into, amend or
terminate any material contract,
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agreement, permit or lease pertaining to the Operations without the prior
written consent of the Purchaser, except in the ordinary course of conduct of
business or as contemplated hereunder, (iv) not cancel or decrease any insurance
policy relating to the Operations; (v) not interfere with any material
obligations under contracts, leases and documents relating to or affecting
conduct of The Operations; (vi) use its reasonable best efforts to maintain and
preserve the Operations and Acquired Assets intact, its good will and
relationship with its present officers, employees, suppliers, medical staff and
others having a business relationship with it relating to the Operations, all
material licenses and permits requisite to the conduct of the Operations now
conducted.
7.2 Notification of Material Adverse Changes. Sellers will promptly notify
Buyer in writing of the occurrence of any material adverse change to the
Acquired Assets or Operations occurring on or after the date of this Agreement
and on or prior to the Closing Date.
7.3 Other Transactions. During the term of this Agreement, the parties will
deal exclusively and in good faith with each other regarding a sale of all or a
material portion of the Acquired Assets. Seller will not, and will direct
Sellers' officers, directors, financial advisors, accountants, agents and
counsel not to: (i) solicit submission of offers from any person relating to a
the Acquired Assets, (ii) participate in any discussions or negotiations
regarding, or furnish any nonpublic information to any person regarding purchase
of the Acquired Assets by any person other than Buyer, or (iii) enter into any
agreement or understanding, whether oral or written, that would have the effect
of preventing consummation of this Agreement.
7.4 Consents, Waivers and Approvals. Prior to Closing, Seller will obtain all
consents, waivers, approvals, and releases necessary for Seller to effect the
transactions contemplated herein, free and clear of any and all liens. All such
consents, waivers, releases and approvals will be in writing and in form and
substance satisfactory to Buyer in its discretion as reasonably exercised by
Buyer.
7.5 Supplemental Disclosure. Seller will have the continuing obligation up to
and including the Closing Date to supplement promptly or amend the Schedules
hereto with respect to any matter subsequently arising or discovered which, if
existing or known at the date of this Agreement, would have been required to be
set forth or listed in the Schedules.
7.6 Conditions Precedent. The parties will use their best efforts in good
faith to satisfy the conditions set forth in Sections 8 and 9 hereof.
7.7 Consents, Regulatory Approvals and Licenses. Buyer acknowledges that
certain of Seller's contracts with nursing homes or clinicians may not be
assignable,
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may be terminable upon no or minimal notice, or may consist of arrangements not
embodied in binding contractual relationships. Buyer further acknowledges that
Seller makes no warranties or representations as to the existence or
availability of any assignments, consents, approvals, regulatory licenses, or
certifications, including as to nursing home contracts, as may be necessary for
any use of the Acquired Assets as Buyer may intend. Seller agrees that it has
made such inquiry as to such matters during the Due Diligence Period as it
believes appropriate, and that consummation of the transaction contemplated
hereby shall not be contingent in any way upon the existence of or Buyer
obtaining any such assignments, consents or regulatory approvals, licenses, or
certifications. Seller agrees that to the extent any economic rights under such
contracts are assignable, it will assign such rights to Buyer. As to any assumed
contract the assignment of which by its terms requires the prior consent of a
third party thereto, if such consent is not obtained prior to the Closing Date,
the Seller shall deliver to the Buyer written documentation setting forth
arrangements for the transfer of the economic benefits of such assumed contracts
to Buyer as of the Closing Date under the terms and conditions acceptable to all
parties hereto. In any event, after Closing Seller shall forfeit and not seek to
perform under any non-assignable agreement or license in competition with Buyer.
7.8 Unless approved in advance by the other party, neither Buyer nor Seller
shall issue any press release or written statement for general or public
circulation relating to the transactions contemplated hereby, except as required
by law in the reasonable opinion of such party's counsel. Each party agrees to
use good faith efforts to obtain the other's approval of the text of any public
report, statement or release prepared.
8. CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER. The obligation of Buyer to
consummate this Agreement will be subject to the satisfaction, on or before the
Closing Date, or such other date as may be specified, of the following
conditions, any of which may be waived by Buyer in writing.
8.1 Representations. The representations and warranties made by Seller in
Section 5 hereof will be true and correct on the Closing Date as though such
representations and warranties had been made on such date and Seller will
deliver to Buyer a certificate dated as of the Closing Date to the foregoing
effect.
8.2 Covenants. Seller will have duly performed all of the covenants, acts and
undertakings to be performed by it on or prior to the Closing Date, and Sellers
will deliver to Buyer a certificate dated as of the Closing Date to the
foregoing effect.
8.3 No Injunction, Etc. No proceeding, investigation, or legislation will
have been instituted, threatened or proposed before any court, governmental
agency or legislative body to enjoin, or prohibit, or to obtain substantial
damages in respect of this Agreement, or which materially affects title to, or
the existence or priority of liens on, the
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Acquired Assets.
8.4 Incumbency. Seller will have delivered a certificate of incumbency
executed by the president and secretary of Seller listing each officer and
director of Seller and the persons authorized to execute this Agreement and the
other documents contemplated hereby.
8.5 Material Adverse Change. No material adverse change to the Acquired
Assets shall have occurred on or after the date of this Agreement and on or
prior to the Closing Date.
8.6 Non-Competition Covenants. Seller shall provide to Buyer covenants of
non-competition in the form of Schedule 8.6, fully executed by such of Seller's
employees or independent contractors utilized in the operations as are willing
to sign such covenants.
9. (Intentionally Omitted)
10 CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER. The obligation of Seller
to consummate this Agreement will be subject to the satisfaction, on or before
the Closing Date, of the following conditions, any of which may be waived by
Sellers in writing.
10.1 Representations. The representations and warranties made by Buyer in
Section 6 hereof will be true and correct in all material respects on the
Closing Date with the same force and effect as though such representations and
warranties had been made on and as of such date and Buyer will deliver to Seller
a certificate dated as of the Closing Date to the foregoing effect for Buyer.
10.2 Covenants. Buyer will have duly performed all of the covenants, acts or
undertakings to be performed by it on or before the Closing Date, and Buyer will
deliver to Seller certificates dated as of the Closing Date to the foregoing
effect.
10.3 Certified Resolutions. Buyer will have delivered to Sellers certificates
executed by duly authorized officers and containing true and correct copy of
resolutions duly adopted by Buyer's Board of Directors approving and authorizing
this Agreement and its consummation. Such officers will also certify that such
resolutions have not been revoked or modified and remain in full force and
effect.
10.4 No Injunction, Etc. No proceeding, investigation or legislation will have
been instituted, threatened or proposed before any court, governmental agency or
legislative body to enjoin, or prohibit, or to obtain substantial damages in
respect of this Agreement.
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10.5 Incumbency. Buyer will have delivered a certificate of incumbency
executed by its president or a vice president and the secretary or an assistant
secretary listing the persons authorized to execute this Agreement, and the
other documents contemplated hereby.
11. MUTUAL COVENANTS. Each of the parties hereto will refrain from taking any
action which would render any representation or warranty contained in Sections 5
or 6 of this Agreement inaccurate as of the Closing Date. Each party will
promptly notify the other of any action or proceeding that is instituted or
threatened against such party to restrain, prohibit or otherwise challenge the
legality of any transaction contemplated by this Agreement. Each party will take
such further action as may reasonably be requested by another party to evidence
the consummation of this Agreement.
12. CLOSING.
12.1 Time and Place. The closing ("Closing") will be held at the offices of
MHM Extended Care Services, 0000 Xxxxxx Xxxxxxxx Xxxxx, Xxxxx 000, Xxxxxx,
Xxxxxxxx, xx December 31, 1998.
12.2 Transactions at the Closing. At Closing, each of the following
transactions will occur:
(a) Sellers will deliver to Buyer the following:
(i) such bills of sale, endorsements, assignments and other
instruments of transfer as are necessary to vest in Buyer
all of Sellers' right, title and interest in, to and under
the Acquired Assets, free and clear of all Liens other than
Permitted Encumbrances;
(ii) all such certificates, dated as of the Closing Date, as
Buyer may reasonably request to evidence the fulfillment by
Seller, or other satisfaction as of the Closing Date, of
the terms and conditions of this Agreement; and
(iii) an opinion of Seller's counsel, in form and substance
reasonably satisfactory to Buyer, that Seller is duly
organized, validly existing, and in good standing under the
laws of the State of Delaware, that Seller has full power
and authority to own and convey the Acquired Assets, and
this Agreement constitutes the valid and binding obligation
of Seller, enforceable in accordance with its terms, except
that enforceability may be limited by applicable equitable
principles of bankruptcy, insolvency or similar laws
affecting the enforcement of creditors' rights generally.
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(b) Buyer will deliver to Seller the following:
(i) the Purchase Price required under Section 2;
(ii) a certificate of good standing of Buyer from the Secretary
of State of its state of incorporation as of the most
recent practicable date;
(iii) all such certificates, dated as of the Closing Date, as
Seller may reasonably request to evidence the fulfillment
by Buyer, or other satisfaction as of the Closing Date, of
the terms and conditions of this Agreement; and
(iv) an opinion of Buyer's counsel in form and substance
reasonably satisfactory to Seller, that Buyer is a
corporation duly organized, validly existing, and in good
standing under the laws its State of incorporation; that
Buyer has full power and authority to purchase and own the
Acquired Assets; that all action has been taken as required
to authorize the execution and consummation of this
Agreement by Buyer; and this Agreement constitutes the
valid and binding obligation of Buyer, enforceable in
accordance with its terms, except that enforceability may
be limited by applicable equitable principles of
bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights generally.
13. COVENANT NOT TO COMPETE. For a period of five years (5) after Closing,
without the prior written consent of Buyer, Seller and any affiliates, and
officers or Directors of Seller or its affiliates shall not: (a) except as
provided below, engage in the establishment or operation of any business for the
delivery of mental health services to patients within the State or competitive
with the outpatient clinic currently operated in the State by Seller, or (b)
hire or solicit for hire any employee of the Operations, or recommend, directly
or indirectly to any such employee that he or she obtain employment elsewhere.
Without in any way limiting the foregoing, it is acknowledged that this covenant
does not extend to the provision of mental health services at prisons, jails, or
other correctional facilities. At Buyer's request, and at the Buyer's sole and
full expense, Seller will co-operate in the bringing of suit in Seller's name to
enforce against any third party any covenant against competition contained in an
agreement to which Seller is a party.
14. ACCOUNTS RECEIVABLE AND PROVIDER NUMBERS. In order to assure collection
by Seller of accounts receivable arising from services provided prior to the
date of Closing (which accounts receivable are excluded from the Acquired Assets
(the "Excluded Receivables")), Buyer shall xxxx for services provided by it
after Closing under its own provider numbers or other appropriate billing
information of Buyer. Seller shall
-13-
14
retain the sole right to xxxx for and collect the Excluded Receivables together
with the sole right to utilize the provider numbers and other billing
identification which Seller has utilized in connection with the Operations. In
the event proceeds of accounts receivable are collected by Seller or Buyer after
Closing which include proceeds of accounts receivable to which the other party
is entitled, within one week of the receipt of such proceeds the receiving party
shall deliver such proceeds to the partied entitled thereto, together with a
copy of the Explanation of Benefits ("EOBs") relating to such proceeds.
15. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All statements contained in
this Agreement, and the documents contemplated hereby, will be deemed
representations and warranties hereunder by Seller or Buyer, as the case may be.
All representations and warranties made by Seller or Buyer in this Agreement
will survive until the second (2nd) anniversary of the Closing Date, except that
warranties and representations as to taxes, environmental matters or ERISA
matters shall survive until six (6) months after expiration of the applicable
statute of limitations. No claims for breach of a representation or warranty
(including an Indemnification Claim as defined in Section 16) may be brought by
any person unless written notice of such claim will have been given on or prior
to the end of such survival period (in which event each representation and
warranty with respect to any asserted claim will survive until such claim is
finally resolved and all obligations with respect thereto are fully satisfied).
Provided this paragraph shall not apply to the breach of any obligations under
this agreement other than as to representation or warranties.
16. TERMINATION. This Agreement may be terminated, and the transactions
contemplated herein abandoned: (a) by the mutual written consent of Seller and
Buyer; (b) by either Seller or Buyer upon the failure of the other to comply
substantially with its or their conditions precedent to Closing and other
obligations set forth herein on or before the Closing Date; (c) upon Seller's
failure to cure (or waiver of the opportunity to cure), any condition or defect
in the Acquired Assets disclosed to Buyer during the Due Diligence Period and
reasonably unacceptable to Buyer. Such cure or waiver thereof shall take place
within thirty (30) days of receipt by Seller of written notice of such condition
or defect from Buyer (such notice to be delivered prior to expiration of the Due
Diligence Period). Termination pursuant to this Section will relieve the parties
of their obligations hereunder with each party responsible for its own fees,
costs and expenses; provided, however, that if the Agreement is terminated
pursuant to (b) above because one party fails to use its reasonable best efforts
to fulfill its obligations hereunder, such party will remain liable to the other
party for all rights as to deposits, losses, costs, expenses (including
attorney's fees) and liabilities incurred by such other party as a result of
such failure.
17. INDEMNIFICATION.
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15
17.1 Losses. For purposes of this Section 17, "Losses" will mean all damages,
losses, costs, expenses (including legal, accounting and other fees and
expenses), interest, penalties, charges and liabilities.
17.2 Indemnification by Seller. Seller agrees to indemnify, defend and hold
harmless Buyer from and against any Loss incurred by Buyer related to or arising
out of (a) the breach of any of the warranties, representations, covenants or
agreements of Seller in this Agreement (a "Breach"), (b) any liability arising
from the from the activities of the Seller or use of the Acquired Assets by
Seller prior to the Closing Date, other than (i) Assumed Liabilities.
17.3 Indemnification by Buyer. Buyer agrees to indemnify, defend and hold
harmless Sellers from and against any Loss incurred by Sellers related to or
arising out of (a) the breach of any of the warranties, representations or
agreements of Buyer in the Buyer's Agreements, (b) any Assumed Liability, or (c)
any liability associated with Buyer's ownership or use of the Acquired Assets or
conduct of the Operation on or after the Closing Date.
17.4 Procedures for Indemnification.
(a) An Indemnification Claim will be made by the Indemnitee by
delivery of a written declaration to Indemnitor requesting
indemnification and specifying the basis on which
indemnification is sought and the amount of asserted Losses
and, in the case of a Third Party Claim, containing such
other relevant information as Indemnitee may have
concerning such Third Party Claim.
(b) If the Indemnification Claim involves a Third Party Claim
the procedures set forth in Section 16.5 hereof will be
observed by the Indemnitee and Indemnitor.
(c) If the Indemnification Claim involves a matter other than a
Third Party Claim, the Indemnitor will have ten (10) days
to object to such Indemnification Claim by delivery of a
written notice of such objection to Indemnitee specifying
to the extent reasonable given the information available to
Indemnitor the basis for such objection. Failure to timely
so object will constitute acceptance of the Indemnification
Claim by the Indemnitor and the Indemnification Claim will
be paid in accordance with Section 17.4(d). If any
objection is timely interposed by the Indemnitor and the
dispute is not resolved within fifteen (15) days from the
date Indemnitee receives such objection, such dispute will
be resolved by litigation, arbitration or mediation, at the
preference of the parties.
-15-
16
(d) Upon determination of the amount of an Indemnification
Claim (including a Third Party Claim), whether by agreement
between Indemnitor and Indemnitee, by an arbitration award
or otherwise, Indemnitor will pay the amount of such
Indemnification Claim within ten (10) days of the date such
amount is determined.
17.5 Defense of Third Party Claims.
(a) Should any Third Party Claim be made, the obligations and
liabilities of the parties with respect to such Third Party
Claim will be subject to this Section 17.5.
(b) Within a reasonable time (i.e., such time as will not
prejudice the contest, defense, litigation, or settlement
of a Third Party Claim) following the receipt of notice of
a Third Party Claim, the party receiving the notice of the
Third Party Claim will (i) notify the other party of its
existence setting forth in writing and with reasonable
specificity the facts and circumstances of which such party
has received notice, and (ii) if the party giving such
notice is an Indemnitee, specify in writing the basis
hereunder upon which the Indemnitee's claim for
indemnification is asserted and tendering defense of the
Third Party Claim to Indemnitor.
(c) If the defense of a Third Party Claim is so tendered and
within ten (10) day thereafter such tender is accepted
without qualification by the Indemnitor as evidenced by
written notice to Indemnitee, then, except as provided
below, the Indemnitee will not, and the Indemnitor will,
have the right to contest, defend, litigate and settle such
Third Party Claim. The Indemnitee will have the right to be
represented by counsel of its own choice and at
Indemnitee's expense to participate in any contest,
defense, litigation or settlement conducted by the
Indemnitor; provided that the Indemnitee will be entitled
to reimbursement therefor if the Indemnitor loses is right
to contest, defend, litigation and settle the Third Party
Claim as provided below. Notwithstanding the preceding
provisions of this Section 17.5, if the Third Party Claim
is asserted against both of Indemnitor and Indemnitee and
representation of both of them by the same counsel would be
inappropriate due to actual or potentially differing
interests between them, Indemnitee shall be entitled to
retain the right to contest, defend or litigate such Third
Party Claim as it relates to Indemnitee and will have the
exclusive right, in its discretion exercised in good faith,
and with the advice of counsel, to settle any such matter
as it
-16-
17
related to Indemnitee, either before or after the
initiation of litigation, at such time and upon such terms
as it deems fair and reasonable, provided that at least ten
(10) days prior to any such settlement, written notice of
its intention to settle will be given to the Indemnitee.
If, pursuant to the preceding sentence, the Indemnitee so
contests, defends, litigates or settles a Third Party
Claim, the Indemnitee will be reimbursed by the Indemnitor
for the reasonable attorneys' fees and other expenses of
defending, contesting, litigating and/or settling the Third
Party Claim which are incurred from time to time, promptly
following the presentation to the Indemnitor of itemized
bills for such attorneys' fees and other expenses.
(d) The Indemnitor will lose its right to contest, defend,
litigate and settle the Third Party Claim if it fails to
diligently contest the Third Party Claim (except in
connection with a settlement thereof in accordance with the
terms hereof). So long as the Indemnitor has not lost its
right to defend, contest, litigate and settle as herein
provided, the Indemnitor will have the exclusive right to
contest, defend and litigate the Third Party Claim and will
have the exclusive right, in its discretion exercised in
good faith, and with the advice of counsel, to settle any
such matter, either before or after the initiation of
litigation, at such time and upon such terms as it deems
fair and reasonable, provided that at least ten (10) days
prior to any such settlement, written notice of its
intention to settle will be given to the Indemnitee.
(e) All expenses (including without limitation attorneys' fees
and expenses) incurred by the Indemnitor in connection with
the foregoing will be paid by the Indemnitor.
(f) No failure by an Indemnitor to acknowledge in writing its
indemnification obligations under this Section 17 will
relieve it of such obligations to the extent they exist. If
an Indemnitee is entitled to indemnification against a
Third Party Claim, and the Indemnitor fails to accept or
assume the defense of a Third Party Claim pursuant to
Section 17.5(c), or if, in accordance with the foregoing,
the Indemnitor loses its right to contest, defend, litigate
and settle such a Third Party Claim, the Indemnitee will
have the right, without prejudice to its right of
indemnification hereunder, in its discretion exercised in
good faith, and upon the advice of counsel, to contest,
defend and litigate such Third Party Claim, and may, in its
discretion exercised in good faith, and with the advice of
-17-
18
counsel, settle such Third Party Claim, either before or
after the initiation of litigation, at such time and upon
such terms as it deems fair and reasonable, provided that
at least ten (10) days prior to any such settlement,
written notice of its intention to settle is given to the
Indemnitor. If, pursuant to this Section 17.5(f), the
Indemnitor so contests, defends, litigates or settles a
Third Party Claim for which it is entitled to
indemnification hereunder, the Indemnitee will be
reimbursed by the Indemnitor for the reasonable attorneys'
fees and other expenses of defending, contesting,
litigating and/or settling the Third Party Claim which are
incurred from time to time, promptly following the
presentation to the Indemnitor of itemized bills for such
attorneys' fees and other expenses.
17.6 Limitations.
(a) All notices of Loss must be delivered to the Indemnitor
prior to expiration of the two year period for the
warranties and representations as set forth in Section 15
hereof.
(b) The remedies provided in this Section 17 are in addition
to, and not in derogation of, any statutory, equitable, or
common law remedy any party may have for breach of any
representation, warranty, covenant or agreement set forth
in this Agreement.
(c) Notwithstanding anything else to the contrary, Seller shall
be liable as an Indemnitee only if the aggregate Losses
exceed $30,000.
18. TRANSACTION EXPENSES.
18.1 Except as provided in Section 18.2, all expenses incurred by the parties
in connection with or related to the authorization, preparation, negotiation and
consummation of this Agreement and the agreements, documents or instruments
contemplated hereby will be borne solely by the party which has incurred the
same.
18.2 Buyer shall be responsible for any and all recordation charges, transfer
taxes, or other fees required for transfer of the Acquired Assets.
19. MISCELLANEOUS.
19.1 Notice. All notices, requests, demands and other communications hereunder
will be in writing and will be deemed given and received (a) on the date of
delivery when delivered by and or when transmitted by confirmed simultaneous
telecopy, (b) on the following business day when sent by receipted overnight
courier, or (c) five (5) business
-18-
19
days after deposit in the United States Mail when mailed by registered or
certified mail, return receipt requested, first class postage prepaid, when
addressed as set forth below:
Xxx Xxxxxxxxx
Buyer: Universal Health Services, Inc.
00 Xxxxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000-0000
Copy to: Xxxxx Xxxxxxx, ESQ.
General Counsel
Universal Health Services, Inc.
000 Xxxxx Xxxxx Xxxx
P.O. Box 61958
King of Prussia, PA 19406-0958
Sellers: MHM Extended Care Services, Inc.
0000 Xxxxxx Xxxxxxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxx 00000
Any party may change the address to which notices are to be sent to it by
giving written notice of such change of address to the other party in the manner
above provided for giving notice.
19.2 Assignment: Binding Effect. This Agreement may not be assigned by any of
the parties hereto without the prior written consent of the other parties
hereto, provided that Buyer may assign its rights hereunder to any entity
majority ownership of which is held by Buyer or the owners of Buyer, so long as
Buyer remains obligated for performance of Buyer's obligations hereunder. This
Agreement will be binding upon the parties hereto and their respective heirs,
successors and permitted assigns.
19.3 Headings: Exhibits and Schedules. The Section, Subsection and other
headings in this Agreement are inserted solely as a matter of convenience and
for reference, and are not a part of this Agreement. The Exhibits and Schedules
attached hereto are a material part of this Agreement and are incorporated
herein by this reference.
19.4 Counterparts. This Agreement may be executed in one or more counterparts,
all of which will be considered one and the same agreement and will become
effective when one counterpart has been signed by each party and delivered to
the other party hereto.
19.5 Integration of Agreement. This Agreement supersedes all prior agreements,
oral and written, between the parties hereto with respect to the subject matter
hereunder.
-19-
20
Neither this Agreement, nor any provision hereof, may be changed, waived,
discharged, supplemented or terminated orally, but only by an agreement in
writing signed by the party against which the enforcement of such change,
waiver, discharge or termination is sought.
19.6 Time of Essence. Time is of the essence in this Agreement.
19.7 Governing Law. This Agreement will be governed by and construed and
enforced in accordance with the laws of the State of Massachusetts as applied to
contracts executed and performed wholly within that State.
19.8 Partial Illegality or Unenforceability. Wherever possible, each provision
hereof will be interpreted in such manner as to be effective under applicable
law, but in case any one or more of the provisions contained herein will, for
any reason, be held to be illegal or unenforceable in any respect, such
illegality or Unenforceability will not affect any other provisions of this
Agreement, and this Agreement will be construed as if such illegal or
unenforceable provision or provisions had never been contained herein unless the
deletion or such provision or provisions would result in such a material change
as to cause completion of the transactions contemplated hereby to be
unreasonable.
19.9 Singular or Plural. All defined terms used herein will have the same
meaning, whether used in the singular or plural form, unless the context clearly
requires otherwise.
19.10 "Person". The term "person" will be broadly interpreted to include,
without limitation, any corporation, partnership, association, limited liability
company, other association, trust or individual.
19.11 "Best Efforts". The use of the term "best efforts" herein will in no
event require any party to (a) expend funds which are not commercially
reasonably in relation to the transactions contemplated hereby or (b) take, or
cause to be taken, any action which would have a material adverse effect with
respect to it.
19.12 "Including". Whenever the term "including" is used in this Agreement, it
will mean "including, without limitation," (whether or not such language is
specifically set forth) and will not be deemed to limit the range of
possibilities of those items specifically enumerated.
19.13 No Third Party Beneficiaries. Nothing in this Agreement shall confer any
rights upon any person other than the parties and their respective heirs,
successors and permitted assigns.
19.14 Post Closing Control and Rights. To the extent a claim or cause of action
arises
-20-
21
after the Closing Date relating to the contracts and agreements assumed by Buyer
pursuant to this Agreement, Seller shall upon request of Buyer and at Buyer's
sole cost and expense, exert all rights Seller may have pursuant to Seller's
contracts or agreements on behalf of and to the benefit of the Buyer".
The parties have executed this Agreement as of this 31 day of December, 1998.
BUYER:
XXXXXX XXXXX SERVICES, INC.
By: [SIG]
--------------------------------
Title: CEO
-----------------------------
SELLERS:
MHM EXTENDED CARE SERVICES, INC.
By: [SIG]
--------------------------------
Title: President
-----------------------------
MHM SERVICES, INC.
By: [SIG]
--------------------------------
Title: President
-----------------------------
-21-
22
GUARANTEE OF PERFORMANCE
Universal Health Services, Inc. ("Universal") joins in this Agreement for
the sole purpose of guaranteeing the performance by its wholly-owned
subsidiary, Xxxxxx Xxxxx Services, Inc., if all of Buyer's obligations
hereunder. In consideration of Seller entering into this Agreement with
Buyer, and acknowledging this Agreement with Buyer is of benefit to
Universal, Universal hereby agrees to indemnify and hold harmless Seller
from and against any damages, costs, and expenses (including legal fees)
suffered or Incurred by Seller as a result of any breach or failure of
performance by Buyer of any of Buyer's obligations under this Asset
Purchase Agreement.
UNIVERSAL HEALTH SERVICES, INC.
By: [SIG]
--------------------------------
Title: V/P
-----------------------------
-22-
23
[MHM SERVICES, INC. LETTERHEAD]
List of Schedules
for Xxxxxx Agreement
Schedule Title
-------- -----
1.1 Excluded Assets
1.2 Acquired Assets
2.2 Allocation of purchase price
5.2 Acquired assets not owned ("None")
5.5 Financial Statements provided (Xxxxxx
should identify)
5.6 After 8/30/98 Material changes,
transactions not ordinary course, etc.
(See para 5.6). (Response should list
audits)
5.7 Debts or liabilities not disclosed in
financial statements (None?)
5.8 Tax assessments, claims, audits,
disputes (None?)
5.10 All employment contracts, consulting
agreements, collective bargaining
agreements (should include
independent contractor agreements)
5.11 All insurance policies
5.12 Litigation, threatened claims,
government investigations (include
audits)
Buyer not assuming there contractor
8.6 See 1.2 Form of non-compete
8.6(a) See 1.2 List of those who have signed
Form 8.6
9.0 Clinicion agreements/
Percentage of Business
-23-
24
SCHEDULE 1.1
EXCLUDED ASSETS
CASH
CASH EQUIVALENTS
ACCOUNTS RECEIVABLE
LEASES AND REAL PROPERTY
XXXXXX MANAGEMENT CONTRACT
MEDICARE/MEDICAID PROVIDER NUMBERS AND AGREEMENTS
MEDICAL RECORDS
25
SCHEDULE 1.2
ACQUIRED ASSETS
(2) EQUIPMENT (SEE ATTACHED LIST)
(1) NURSING HOME CONTRACTS (SEE ATTACHED LIST)
(1) CLINICAL AGREEMENTS (SEE ATTACHED LIST)
(1) NON-COMPETE (SEE ATTACHED LIST)
(1) SCHOOL CONTRACTS (SEE ATTACHED LIST)
(1) CLINIC LICENSES
26
SCHEDULE 1.2
ACQUIRED ASSETS
EQUIPMENT INVENTORY/TAUNTON OFFICE
DESK - 12
COMPUTERS - 1, 1 BROKEN
4 DRAWER FILING CABINET - 11
2 DRAWER FILING CABINET - 2
MOBILE FILE UNDER DESK DRAWERS - 2
UPHOLSTERED CHAIRS - 10
DESK CHAIRS - 9
STACKING CHAIRS (UPHOLSTERED) - 17
REFRIGERATOR - 1
CONFERENCE TABLE - 1
ROUND TABLE - 1
BOOK SHELVES - 2
FORM ORGANIZER - 1
COFFEE TABLE - 1
BULLETIN BOARDS - 6
LAMPS - 1
DRY - ERASE BOARDS - 2
COMPUTER WORKSTATION - 3
PRINTERS - 3, 2 ARE BROKEN
STORAGE CABINET - 1
FAX MACHINE - 1
COPIER - 1
TYPEWRITER - 1
PAPER SHREDDER - 1
MOBILE DROP-LEAF STAND - 1
27
SCHEDULE 1.2
ACQUIRED ASSETS
EQUIPMENT INVENTORY/CAMBRIDGE OFFICE
Banquet Folding Table 1
Book case (2 shelves) 2
Bookshelves 11
Bulletin Board 8
Coat Rack (Metal) 1
Coffee Table 1
Computer (Monitor Only) 2
Computers (Keyboard, Monitor, Tower Unit) 12
Conference Tables (Round and Oblong) 2
Desk Chairs 24
Desks 25
Display Booth 1
End Tables 3
Fax Machines 3
File Cabinet (2 drawers) 23
File Cabinet on wheels(small) 1
File Cabinets (4 drawer) 49 (40 used for Medical Records)
Folding Chairs 3
Large Storage Units(5 shelves)(2 plastic, 1 metal) 3
Laser Printer (Large) 1
Laser Printer (Small) 1
Metal Stacking Chairs 32
Microwave Oven 1
Postage Meter 1
Printer Table 2
Printers (dot matrix) 3
Side Table 3
Storage Unit (4 drawers) 4
Storage Unit (2 drawer) 6
Upholstered chairs 23
Wooden Storage Unit 1
Work Station (2 shelves) 6
Work Station (6 shelves) 1
2
28
SCHEDULE 1.2
ACQUIRED ASSETS
OPENHOM 12/30/98
----------------------------------------------------------------------------------------------------------
Home Street City Stat Zip
----------------------------------------------------------------------------------------------------------
Xxxxx Xxxxx 00 Xxxxx Xxxxxx Xxxx XX 00000
----------------------------------------------------------------------------------------------------------
Aberjona Nursing Center 000 Xxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Acton Adult Day Care Concord MA
----------------------------------------------------------------------------------------------------------
Ashmere Manor NH 000 Xxxxxx Xxxxxxx Xxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Avery Manor 000 Xxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxx Xxxxx XX 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Beaumont Rehabilitation 0 Xxxxxx Xxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Blueberry Hill Healthcare 00 Xxxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Bolton Manor NH 000 Xxxxxx Xxxxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Bourne Manor 000 XxxXxxxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Brittany Conv. Home 000 Xxxx Xxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Brookhaven at Lexington 0000 Xxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxx Nursing Home 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Cambridge Outpatient Clinic 00 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Cantabridgia Health Care 000 Xxxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Care Matrix of Dedham 00 Xxxx Xxxxxx Xxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxx-Xxxxxxxx Village 000 Xxx Xxxxxxxxx Xxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Carlyle Nursing & Rehab. Ctr. 000 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Catholic Memorial Home 0000 Xxxxxxxx Xxxxxx Xxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Charlesgate Manor Conv. Home 000 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Chelsea Jewish N H 00 Xxxxxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxx House Nursing Center 00 Xxxxxxxx Xxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
COC - Bay View 00 Xxxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
COC - Berkshire 000 Xxxx Xxxxxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
COC - Westfield 00 Xxxx Xxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxx, Xxxxxxxx, Xxxxxx Estates 000 Xxxxxxx'x Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxx House 00 Xxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Cooperative Elder Services, Inc (Burlington) 00-X Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Courtyard Nursing Care Ctr 000 Xxxxxxxx'x Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
East Longmeadow NH 000 Xxxxx Xxxxxx Xxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Edgecombe Nursing Home 00 Xxxxxx Xxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Elder Services Plan PACE Program, (Brighton) 000 Xxxxxxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Elder Services Plan PACE Program, (Jamaica P 000 Xxxxx Xxxxxx Xxxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx Convalescent 00 Xxxxxxxx Xxxx Xxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
FairHaven Nursing Home 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
German Home RH 000 Xxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxx Xxxxx XXX Xxxxxxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx House 000-000 Xxxxx Xxxxxxxxxx Xxx Xxxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx House Asst. Living 000 Xxxxxxxx xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Page 1
29
SCHEDULE 1.2
ACQUIRED ASSETS
OPENHOM 12/30/98
----------------------------------------------------------------------------------------------------------
Home Street City Stat Zip
----------------------------------------------------------------------------------------------------------
Great Barrington Rehab 000 Xxxxx Xxxxxx Xxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Greenwood Nursing Home 00 Xxxxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxx Xxxxx XX 000 Xxxxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Hallmark Nursing Home 0000 Xxxxxxxx Xxx Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxxxxx Xxxxx XXX 00 Xxxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxxxx House 000 Xxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Hathaway Manor 000 Xxxxxxxx Xxxx Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Holyoke Nursing Home 0000 Xxxxxxxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Island Terrace NH 00 Xxxx Xxxxx Xxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Jesmond Nursing Home 000 Xxxxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Jewish Rehab Center 000 Xxxxxxxx Xxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Kimwell Nursing 000 Xxx Xxxxxx Xxxx Xxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Life Care Center 00 Xxxxxx Xxxx X. Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Lynn Convalescent Home 000 Xxxxxx Xxxxxx Xxxx XX 00000
----------------------------------------------------------------------------------------------------------
Lynn Public Medical Institute 000 Xxxxxxx Xxxxxx Xxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxx Immaculate Nursing 000 Xxxxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Meadow Green NH 00 Xxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Meadowood Nursing Home 000 Xxxxxx Xxxx Xxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Milton Healthcare Facility 0000 Xxxxx Xxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Mt. Pleasant Rest Home 000 Xxxxx Xxxxxxxxxx Xxxxxx Xxxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Neponset Circle 00-00 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Newton-Wellesley 000 Xxxxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx House Nursing Home 000 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Northampton Nursing Home 000 Xxxxxx Xxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxxxxxxx Xxx 0000 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Olympus Specialty 0000 Xxxxx Xxxxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Our Ladys Haven 00 Xxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Park Avenue Nursing Home 000 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Pilgrim Rehabilitation 00 Xxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Providence House NH 00 Xxxxxx Xxxxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Quaboag on the Common 00 Xxxx Xxxx Xxxxxx Xxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Rainbow Nursing Home 000 Xxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxx Communities 000 Xxxxxxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Sacred Heart Nursing Home 000 Xxxxxx Xxxxxx Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Sancta Xxxxx Nursing Facility 000 Xxxxxxx Xxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxx House 000 Xxxxxxxxxx Xxxxxx Xxxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Southpoint Rehabilitation 000 Xxxxx Xxxxxx Xxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Springside of Pittsfield 000 Xxxxxxx Xxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxxxxx Memorial 00 Xxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Page 2
30
SCHEDULE 1.2
ACQUIRED ASSETS
OPENHOM 12/30/98
----------------------------------------------------------------------------------------------------------
Home Street City Stat Zip
----------------------------------------------------------------------------------------------------------
Sunny Acres Nursing Home 000 Xxxxxxxxx Xxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Beverly 000 Xxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Brighton 000 Xxxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Broadway 000 Xxxxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Brookline 00 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Colonial Heights 000 Xxxxx Xxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Concord 000 Xxx Xx. to Nine Acre Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - East Longmeadow 000 Xxxxxx Xxxxx Xxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Fall River 000 Xxx Xxxxx Xxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Glenwood 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Holyoke 000 Xxxx Xxxxxxx Xxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Lexington 000 Xxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Xxxxxx 00 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Milford 00 Xxxxxxxx Xxxxxxxx Xxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Millbury 00 Xxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - New Bedford 000 Xxxxxxxxxx Xxxxx Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Newton 0000 Xxxxxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - North Reading 000 Xxxxx Xxxxxx Xxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Northampton 000 Xxx Xxxxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Northshore 00 Xxxxxxx Xxxxxx Xxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Xxxxxxx Xxxx 000 Xxxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Randolph 00 Xxxxxx Xxxxxx Xxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Town Manor 00 Xxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Weymouth 00 Xxxxxxxxxxx Xxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Wilmington 000 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Wood Mill 000 Xxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Taunton Outpatient Clinic 00 Xxxxxxx Xxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Waban Health & Rehab. Inc. 00 Xxxxxxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxx House 000 Xxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Wellesley Health & Rehab 000 Xxxxxxxxx Xxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Wentworth Nursing Care Center 000 Xxxxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Whitney Place 0 Xxxxxx Xxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Willowood of Great Barrington 000 Xxxxxxxxx Xxxx Xxxx Xxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Willowood of Pittsfield 000 Xxxxxxxxx Xxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Winchester Nursing Center 000 Xxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx at Brighton 000 X. Xxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx at Sudbury 000 Xxxxxx Xxxx Xxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Woburn Nursing Home 00 Xxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Page 3
31
Schedule 1.2
Acquired Assets
Clinical Agreements and non-compete agreements
List of Signed Agreements
Xxxxxxxx, Xxx Xxxxxxx, Xxxxx
Xxxxxx, Xxxxx Xxxx, Xxxxx X.
Xxxxxxxxxx, Xxxxx Xxxxxxx, Xxxx
Xxxxxx, Xxxxxx Xxxxxxx, Xxxxx
Berkshire Medical Center Xxxxx, Xxxxx
Xxxxxx, Xxxx Needles, Xxxxxxx
Xxxxx, Xxxx Xxxxxxxxxx, Xxxxx
Xxxxxxx, Xxxxxx Xxxx, Xxxxxxx Xxx
Xxxxxxxxxx, Xxxxx Xxxxx, Xxxxxx X.
Xxxxxxx, Xxxxxxxx X. Xxxxxxx, Xxxxx
Xxxxx, Xxxxx Xxxxxxxxxxxxx, Xxxx
Xxxxxxxx, Xxxxxxx Xxxxx, Xxxx
Xxxxxx, Xxxx Xxxxxxx, Cwira
Xxxxxxx, Xxxxxxxxxx Xxxxx, Xxxxxxx X.
Xxxxxxxxxx, Xxx Xxxx, Xxxxxxxx X.
Xxxxxx-Xxxxxx, Xxxxx Xxxxxx, Xxxxxxx
Xxxx, Xxxxx Xxxxx, Xxxxxxxx
Xxxxxxxx, Xxxxxx Xxxx, Xxxxx X
Xxxxxxx, Xxxxxxxxx Scheinan, Xxxxx
Xxxxxxxx, Xxxxx Xxxxxxx, Xxxxxx
Xxxx, Xxxxxx Xxxxxxxxx, Xxxxx
Xxxxxxx, Xxxxx Xxxxxxxx, Xxxxxxxx
Xxxxxxx, Xxxxxx Xxxxxxx, Xxxxxxxx
Xxxx, Xxxxxxx Xxxxxxxx, Xxxxxx
Xxxxxx, Xxxxxxx Xxxxxx, Xxxxxx
Xxxxxxxx, Xxxxx Xxx Xxxxxx, Xxxxxxx
Xxxxxx, Xxxxxx Xxxxxxx, Xxxxxx
Xxxxxx, Xxxxx Xxxxxxx, Xxxx
Xxxxx, Xxxxx Xxxxxxxxx, Xxxxxxx
Xxxxxx, Xxxxxxxx Xxxxxxxxxx, Xxxxxxx
Xxxxx, Xxxx Xxxxxx, Xxxxxx
Xxxxxx, Xxxxxxx Xxxxxx-Xxxxxxx, Xxxxxx
Xxxxxxxx, Xxxxxxx Xxxxxx, Xxxxxxx
XxXxx, Xxxx Xxxxx, Xxxx X.
Xxxxx, Xxxxxxx Xxxxx, Xxxx
Xxxxxx, Xxxx
Xxxxxx, Xxxxx
Xxxxxx, Xxx X.
XxXxxxxx, Xxxxxxx
32
Schedule 1.2
Non-compete
List of Signed Agreements
Xxxxxxxxxx, Xxxxx
Xxxxxx, Xxxxxx
Xxxxxxx, Xxxx
Xxxx, Xxxxxxx
Creditor, Xxxxx
Xxxxxx, Xxxxxxxxx
Xxxxx, Xxxxx
Xxxxxxx, Xxxxx
Xxxxxx, Xxxxxxx
Xxxxxx, Xxxxx
Xxxxxxx, Xxxxxxxxx
Xxxxx, Xxxxxxxx
Xxxxxxx, Xxxx
Xxxxx, Xxxxxxxx
Xxxxx, Xxxx
St. Xxxxxx, Xxxxxxxxx
Xxxxxxxxxx, Xxxx
Xxxxxxxx, Xxxxxx
Xxx Xxxxxx, Xxxxxxx
Von Wittenbergh, Xxx
Xxxxxxx, Xxxx Xxx
Xxxxxx, Xxxxx
also being assigned herein are all non-compete agreements and/or covenents
related to all clinical services in Massachusetts.
33
School Based Activity Referral Sources - Xxx Xxxxxxx 12/30/98
------------------------------ -------------------- ------------ ---- ------ --------------- ---------------------- ---------------
Organization Name Address City Stat Postal Work # Contact Clinician
------------------------------ -------------------- ------------ ---- ------ --------------- ---------------------- ---------------
Xxxxx Elementary 000 Xxxxx Xx. Xxxxxxxxxx XX 00000 (617) 635-8064 Xxxxxx Xxxxxxx K-Xxxxx, C.
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Xxxxxxx Elementary 000 Xxxxxxxxx Xx. X. Xxxxxx XX 00000 (617) 635-8422 Xxxxxxxxx X'Xxxxx Xxxxxx, C
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Xxxxxx Elementary 000 Xxxxxx Xx. Xxxxxxxxxx XX 00000 (617) 635-8099 Xxxx Xxxxxxxx
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Dever Elementary 000 Xxxxx Xxxxxx Xx. Xxxxxxxxxx XX 00000 (617) 635-8694 Peg Handraham Xxxxxxx & K-Pay
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Guild Elementary 000 Xxxxxx Xx. X. Xxxxxx XX 00000 (617) 635-8523 Xxxxx Xx Xxxxxx, C
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Manning Elementary 000 Xxxxxxx Xxxx Xxxxxxx Xxxxx XX 00000 (617) 635-8102 Xxx. Xxxxxx Xxxxxx, C
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
XxXxxxxxx Middle 000 Xxxxx Xxxxxx Xxxxxxxxxx XX 00000 (617) 635-8657 Xxxxx Xxxxxxx Chow & Cuasa
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Roosevelt Elementary *on hold 00 Xxxxxxx Xx. Xxxx Xxxx XX 00000 (617) 635-8676 Xx. XxXxxx
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Xxxx Middle 00 Xx. Xxxxxx Xx. Xxxx Xxxxxxx XX 00000 (617) 635-8050 Xxx. Xxxxxxxx
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Xxxxxx Elementary 00 Xxxxxx Xx. Xxxxxxxxxx XX 00000 (617) 635-8131 Xx. Xxxx - Principal K-Xxxxx + Abr
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Xxxxxx-Xxxxxxxx Elementary 00 Xxxxxx Xx. Xxxxxxxxxxx XX 00000 (617) 635-8346 Xx. Xxxxx - Principal Xxxxxxx, S
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Xxxxxxxxxx Xxxxxx Middle 000 Xxxxxxx Xxx Xxxxxxxxxx XX 00000 (617) 635-8072 Xxxxx Xxx Xxxxxx + Cuas
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Xxxxxxxx Middle 00 Xxxxxxxxx Xxx. Xxxxxxx XX 00000 (617) 635-8165 Xxxxxx Xx Xxxxxxx K-Xxxxx, C.
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Mayflower Xxxxxxxxx Xxx. Xxxxxxxxxx XX 00000 (508) 946-2033 Xxx Xxxxx Creditor, S
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Memorial Xx. Xxxx Xxxx Xxxxxx Xxxxxxxxxx XX 00000 (508) 946-2020 Xxxx Xxxxxxxx Creditor, S
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Xxxxxxx Middle 00 Xxxxxx Xxxxxx Xxxxxxxxxxx XX 00000 (617) 635-8516 Xxxxxxx XxXxxxxxxx Xxxxxxx, F
------------------------------ -------------------- ------------- ---- ------ --------------- ---------------------- ---------------
Scheduled 1.2
Acquired Assets
School Contracts
Page 1
34
SCHEDULE 2.2
ALLOCATION OF PURCHASE PRICE
CONTRACTS AND GENERAL INTANGIBLES $850,000
========
35
SCHEDULE 5.2
ENCUMBERED ASSETS
NONE
36
SCHEDULE 5.5
FINANCIAL STATEMENTS
12/17/98 Extended Care Services, Inc.
4:43PM Extended Care Massachusetts
For the Month Ending October 31, 1998
TREND
OCTOBER TOTAL
------------- -------------
NET REVENUE $485,046.09 $485,046.09
COST OF SERVICES
SALARIED CLINICIAN PAY 257,074.43 257,074.43
CLINICIAN BENEFITS
CONTRACTOR CLINICAL P
COLLECTION FEES 31,012.63 31,012.63
INSURANCE-MALPRACTICE 1,949.02 1,949.02
------------- -------------
TOTAL COST OF SERVICES 290,036.08 290,036.08
GROSS PROFIT 195,010.01 195,010.01
GENERAL & ADMINSTRATIVE
ADMINISTRATIVE PAYROL 51,355.92 51,355.92
ADMINISTRATIVE BENEFIT 8,429.72 8,429.72
RENT & FACILITY EXPENSE 21,925.17 21,925.17
FREIGHT & DELIVERY 1,500.85 1,500.85
OFFICE SUPPLIES 5,670.67 5,670.67
TRAVEL EXPENSE 3,025.19 3,025.19
MARKETING EXPENSE 750.00 750.00
PROFESSIONAL SERVICES 9,984.42 9,984.42
BAD DEBT/CONTRACT ALL 153,599.17 153,599.17
OTHER G&A EXPENSES 4,739.38 4,739.38
------------- -------------
TOTAL G&A EXPENSES 260,980.49 260,980.49
DEPRECIATION & AMORTI 17,947.66 17,947.66
OTHER INCOME/EXPENSE
INTEREST INCOME
INTEREST EXPENSE 1,162.49 1,162.49
OTHER EXPENSE 2,390.95 2,390.95
------------- -------------
TOTAL OTHER INCOME/E 3,553.44 3,553.44
------------- -------------
TOTAL ALL EXPENSES 282,481.59 282,481.59
------------- -------------
NET INCOME/(LOSS) (87,471.58) (87,471.58)
============= ==============
37
Schedule 5.5
Financial Statements
Extended Care ______ Massachusetts
Grand Total
For the Twelve Months Ending September 30, 1998
OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY
------------- ------------- ------------- ------------- -------------
PSYCHOLOGY DO NOT USE
EXTENDED CARE REVENUE
EC REVENUE-PSYCHOLOGI 102,772.69 104,917.73 105,025.00 65,856.24 434,893.26
EC REVENUE-LICSW's 172,391.98 171,680.17 171,662.00 40,238.03
EC REVENUE-NURSES 45,699.10 44,126.50 44,142.00 38,487.64
EC REVENUE-COUNSELORS 37,572.53 37,199.82 37,282.00 139,541.58
EC REVENUE-PSYCHIATRIS 128,980.68 125,134.34 125,214.00 67,274.89
------------- ------------- ------------- ------------- -------------
TOTAL EXTENDED CARE 487,416.98 483,058.56 483,325.00 351,398.38 434,893.26
OP NET REVENUE-PSYCHOL 7,554.39 4,946.50 4,950.00 11,621.69
OP NET REVENUE-LICSW's 38,941.92 45,242.57 45,450.00 7,100.83
OP NET REVENUE-NURSES 6,791.94
OP NET REVENUE-COUNSE 45,490.46 34,418.48 34,525,00 24,624.98
OP NET REVENUE-PSYCHIA 2,765.01 1,721.77 1,750.00 11,872.04
School Revenue
Rehab Revenue
Mental Retardation Revenue
General Revenue
------------- ------------- ------------- ------------- -------------
TOTAL OUT-PATIENT RE 94,751.78 86,329.32 86,675.00 62,011.48
TOTAL REVENUE 582,168.76 569,387.88 570,000.00 413,409.86 434,893.26
Contractual Allowances
ALLOWANCES-PSYCHOLOG
ALLOWANCES-LICSW's
ALLOWANCES-NURSES
ALLOWANCES-COUNSELO
ALLOWANCES-PSYCHIATRI
------------- ------------- ------------- ------------- -------------
TOTAL CONTRACTUAL
% of Gross Revenue
NET REVENUE 582,168.76 569,387.88 570,000.00 413,409.86 434,893.26
PROGRAM MANAGER 11,452.83 13,649.31 14,931.92 14,307.35 11,113.72
PSYCHOLOGISTS 42,670.84 39,900.86 36,190.47 40,523.74 53,370.50
LICSW's 81,038.58 86,491.48 82,737.44 79,834.38 106,281.24
CLINICAL NURSE SPECIALI 17,830.50 16,893.40 13,808.60 19,435.00 24,872.10
COUNSELORS 15,321.96 9,362.43 9,490.20 7,959.15 (18,768.00)
PSYCHIATRISTS
EDUCATION DIRECTOR
CLINICAL ADMINISTRATIV
EDUCATION SPECIALISTS
OTHER PATIENT CARE
SALARIES
ADMINISTRATOR
ASST. ADMINISTRATOR
CO DIRECTORS 10,724.89 6,915.95 5,224.78 5,452.45 3,721.68
MEDICAL RECORD 3,420.39 7,046.50 6,359.55 5,885.52 4,974.60
SECRETARIAL & RECEPTIO 7,711.98 5,996.90 6,560.35 5,753.26 5,585.70
CUSTOMER SERVICE
ACCT/FINANCE
MARKETING/DEVELOP 16,563.30 15,866.91 16,725.38 12,463.33 11,552.50
BILLING & COLLECTION 20,760.44 16,532.90 15,821.02 6,336.61 6,471.48
------------- ------------- ------------- ------------- -------------
Total Salaries and Wages 227,495.71 218,656.64 207,849.71 197,950.79 209,175.52
PAYROLL TAXES-FICA 20,195.64
PAYROLL TAXES-FUTA
PAYROLL TAXES-SUTA
INSURANCE-WORKER'S CO
INSURANCE-HEALTH 3,868.68
INSURANCE-LIFE
INSURANCE-LTD
NON CLINICAL BOUNUSES
401K EXPENSE 1,379.97 1,565.44 _,309.02 1,372.69 1,427.12
ACCRUED VACATION 1,029.52 (10,657.69)
OTHER BENEFITS 40,056.20 31,404.17 38,709.32 27,426.98 1,108.44
------------- ------------- ------------- ------------- -------------
Total Benefits 41,436.17 32,969.61 42,047.86 18,141.98 26,599.88
% of Total Salaries 0.18 0.15 0.20 0.09 0.13
TOTAL SALARIES AND BEN 268,931.88 251,626.25 249,897.57 216,092.40 235,775.40
% of Net Revenue 0.46 0.44 0.44 0.52 0.54
Other Clinical Services
OTHER CLINICAL SERVICES
MAINTENANCE & REPAIRS
HOUSEKEEPING
CONTRACTED CLINICAL SE
CLINICIAN ADMINISTRATIO
PSYCHOLOGISTS-1099 8,697.50 9,270.99 9,332.50 15,601.50 17,075.50
LICSW's-1099 11,939.50 12,682.50 13,742.00 15,159.00 15,946.50
CLINICAL NURSE SPECIALIS 10,116.00 9,104.00 17,525.10 10,023.00 1,314.50
COUNSELORS-1099 16,534.50 14,239.00 19,005.25 15,578.00 11,395.00
PSYCHIATRISTS-1099 92,175.00 83,294.00 100,786.00 74,090.00 44,764.00
------------- ------------- ------------- ------------- -------------
Total Billable
Clinical Services 139,462.50 128,590.49 160,390.85 130,451.50 90,495.50
Contracted Clin 0.24 0.23 0.28 0.32 0.21
ADMIN. - 1099 22,116.50 20,761.50 20,595.00 16,146.62 15,158.25
% of Net Revenue 0.04 0.04 0.04 0.04 0.03
------------- ------------- ------------- ------------- -------------
Total Other Clinical
Services 161,579.00 149,351.99 180,985.85 146,598.12 105,653.75
TOTAL COMPENSATION 430,510.88 400,978.24 430,883.42 362,690.89 341,429.15
% of Net Revenue 0.74 0.70 0.76 0.88 0.79
TREND
MARCH APRIL MAY JUNE
------------- ------------- ------------- -------------
PSYCHOLOGY DO NOT USE
EXTENDED CARE REVENUE
EC REVENUE-PSYCHOLOGI 592,287.48 689,494.81 655,571.94 581,584.73
EC REVENUE-LICSW's
EC REVENUE-NURSES
EC REVENUE-COUNSELORS
EC REVENUE-PSYCHIATRIS
------------- ------------- ------------- -------------
TOTAL EXTENDED CARE 592,287.48 689,494.81 655,571.94 581,584.73
OP NET REVENUE-PSYCHOL
OP NET REVENUE-LICSW's
OP NET REVENUE-NURSES
OP NET REVENUE-COUNSE
OP NET REVENUE-PSYCHIA
School Revenue
Rehab Revenue
Mental Retardation Revenue
General Revenue
------------- ------------- ------------- -------------
TOTAL OUT-PATIENT RE
TOTAL REVENUE 592,287.48 689,494.81 655,571.94 581,584.73
Contractual Allowances
ALLOWANCES-PSYCHOLOG
ALLOWANCES-LICSW's
ALLOWANCES-NURSES
ALLOWANCES-COUNSELO
ALLOWANCES-PSYCHIATRI
------------- ------------- ------------- -------------
TOTAL CONTRACTUAL
% of Gross Revenue
NET REVENUE 592,287.48 689,494.81 655,571.94 581,584.73
PROGRAM MANAGER
PSYCHOLOGISTS 273,912.36 339,578.32 319,453.12 294,429.53
LICSW's
CLINICAL NURSE SPECIALI
COUNSELORS
PSYCHIATRISTS
EDUCATION DIRECTOR
CLINICAL ADMINISTRATIV
EDUCATION SPECIALISTS
OTHER PATIENT CARE
SALARIES 52,276.75 51,145.00 49,834.19 50,669.26
ADMINISTRATOR
ASST. ADMINISTRATOR
CO DIRECTORS
MEDICAL RECORD
SECRETARIAL & RECEPTIO
CUSTOMER SERVICE
ACCT/FINANCE
MARKETING/DEVELOP
BILLING & COLLECTION
------------- ------------- ------------- -------------
Total Salaries and Wages 326,189.11 390,723.32 369,297.31 345,098.79
PAYROLL TAXES-FICA 14,195.57 19,524.67 18,677.84 27,201.72
PAYROLL TAXES-FUTA
PAYROLL TAXES-SUTA
INSURANCE-WORKER'S CO 2,160.00
INSURANCE-HEALTH
INSURANCE-LIFE
INSURANCE-LTD
NON CLINICAL BOUNUSES
401K EXPENSE
ACCRUED VACATION 1,375.75 (1,547.76) 904.71 789.26
OTHER BENEFITS 3,780.80
3,173.68 3,049.68 3,458.34 11,170.18
Total Benefits ------------- ------------- ------------- -------------
% of Total Salaries 18,745.00 23,186.59 23,040.89 42,941.96
0.06 0.06 0.06 0.12
TOTAL SALARIES AND BEN
% of Net Revenue 344,934.11 413,909.91 392,328.20 388,040.75
0.58 0.60 0.60 0.67
Other Clinical Services
OTHER CLINICAL SERVICES
MAINTENANCE & REPAIRS
HOUSEKEEPING
CONTRACTED CLINICAL SE
CLINICIAN ADMINISTRATIO
PSYCHOLOGISTS-1099
LICSW's-1099
CLINICAL NURSE SPECIALIS (1.00)
COUNSELORS-1099
PSYCHIATRISTS-1099
Total Billable ------------- ------------- ------------- -------------
Clinical Services
Contracted Clin
(1.00)
ADMIN. - 1099
% of Net Revenue
Total Other Clinical ------------- ------------- ------------- -------------
Services
(1.00)
TOTAL COMPENSATION
% of Net Revenue 344,933.11 413,909.91 392,328.20 388,040.75
% of Net Revenue 0.58 0.60 0.60 0.67
JULY AUGUST SEPTEMBER TOTAL
------------- ------------- ------------- -------------
PSYCHOLOGY DO NOT USE
EXTENDED CARE REVENUE
EC REVENUE-PSYCHOLOGI 616,259.13 596,699.52 453,205.95 4,998,568.48
EC REVENUE-LICSW's 555,972.18
EC REVENUE-NURSES 172,455.24
EC REVENUE-COUNSELORS 251,595.93
EC REVENUE-PSYCHIATRIS 446,603.91
------------- ------------- ------------- -------------
TOTAL EXTENDED CARE 616,259.13 596,699.52 453,205.95 6,425,195.74
OP NET REVENUE-PSYCHOL 29,072.58
OP NET REVENUE-LICSW's 136,735.32
OP NET REVENUE-NURSES 6,791.94
OP NET REVENUE-COUNSE 139,058.92
OP NET REVENUE-PSYCHIA 18,108.82
School Revenue
Rehab Revenue
Mental Retardation Revenue
General Revenue
------------- ------------- ------------- -------------
TOTAL OUT-PATIENT RE 329,767.58
TOTAL REVENUE 616,259.13 596,699.52 453,205.95 6,754,963.32
Contractual Allowances
ALLOWANCES-PSYCHOLOG
ALLOWANCES-LICSW's
ALLOWANCES-NURSES
ALLOWANCES-COUNSELO
ALLOWANCES-PSYCHIATRI
------------- ------------- ------------- -------------
TOTAL CONTRACTUAL
% of Gross Revenue
NET REVENUE 616,259.13 596,699.52 453,205.95 6,754,963.32
PROGRAM MANAGER 65,455.13
PSYCHOLOGISTS 326,617.33 317,840.74 240,199.15 436,383.12
LICSW's 92,839.60
CLINICAL NURSE SPECIALI 23,365.74
COUNSELORS
PSYCHIATRISTS
EDUCATION DIRECTOR
CLINICAL ADMINISTRATIV
EDUCATION SPECIALISTS
OTHER PATIENT CARE
SALARIES 56,199.26 52,825.94 53,787.61 366,738.01
ADMINISTRATOR
ASST. ADMINISTRATOR
CO DIRECTORS 32,039.75
MEDICAL RECORD 27,686.56
SECRETARIAL & RECEPTIO 31,608.19
CUSTOMER SERVICE
ACCT/FINANCE
MARKETING/DEVELOP 73,171.42
BILLING & COLLECTION 65,922.45
------------- ------------- ------------- -------------
Total Salaries and Wages 382,816.59 370,666.68 293,986.76 3,539,896.93
PAYROLL TAXES-FICA 33,815.97 16,932.46 13,958.57 162,504.44
PAYROLL TAXES-FUTA
PAYROLL TAXES-SUTA
INSURANCE-WORKER'S CO 2,160.00
INSURANCE-HEALTH 3,868.68
INSURANCE-LIFE
INSURANCE-LTD
NON CLINICAL BOUNUSES
401K EXPENSE
ACCRUED VACATION 1,116.39 966.16 930.00 12,588.75
OTHER BENEFITS (5,847.37)
9,133.25 6,060.35 2,865.20 177,615.79
Total Benefits ------------- ------------- ------------- -------------
% of Total Salaries 44,065.61 23,958.97 17,753.77 354,888.29
0.12 0.06 0.06 0.10
TOTAL SALARIES AND BEN
% of Net Revenue 426,882.20 394,625.65 311,740.53 3,894,785.22
0.69 0.66 0.69 0.58
Other Clinical Services
OTHER CLINICAL SERVICES
MAINTENANCE & REPAIRS
HOUSEKEEPING
CONTRACTED CLINICAL SE
CLINICIAN ADMINISTRATIO
PSYCHOLOGISTS-1099
LICSW's-1099 59,977.99
CLINICAL NURSE SPECIALIS 69,468.50
COUNSELORS-1099 48,082.60
PSYCHIATRISTS-1099 76,751.75
395,109.00
Total Billable ------------- ------------- ------------- -------------
Clinical Services
Contracted Clin 649,389.84
0.10
ADMIN. - 1099
% of Net Revenue 94,777.87
0.01
Total Other Clinical ------------- ------------- ------------- -------------
Services
744,167.71
TOTAL COMPENSATION
% of Net Revenue 426,882.20 394,625.65 311,740.53 4,638,952.93
% of Net Revenue 0.69 0.66 0.69 0.69
38
SCHEDULE 5.5
FINANCIAL STATEMENTS
Extended Care Services, Inc. - Massachusetts
Grand Total
For the Twelve Months Ended September 30, 1998
TREND
OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH
------------- ------------- ------------- ------------- ------------- -------------
Facility Expenses
RENT $15,611.61 $15,611.61 $15,364.11 $15,364.11 $15,611.61 $11,134.55
TAXES-PERSONAL PROPER 52.93 52.93 52.83
ELECTRICITY 1,766.18 460.26 774.79 1,405.30 1,668.41 2,749.35
TELEPHONE 5,332.31 4,252.53 1,987.74 5,840.11 5,106.11 4,069.24
ALARM & PROTECTION SER
OFFICE EQUIPMENT RENTA 1,667.20 2,099.50 1,889.05 2,076.20 1,485.10 1,879.38
TRANSPORTATION-RENT/LE
FURNITURE & EQUIP EXPE
MOVING EXPENSE
REPAIRS & MAINTENANCE 891.81 761.06 461.06 766.06 702.13 527.37
------------- ------------- ------------- ------------- ------------- -------------
Total Facility Expense 25,322.04 23,237.89 20,529.58 25,451.78 24,573.36 20,359.89
Amort. & Depreciation
AMORTIZATION-DEFERRED 7,934.92 7,934.92 7,934.92 7,934.92 7,934.92 7,934.92
AMORTIZATION - GOODWI 1,479.17 1,479.17 1,479.17 1,479.17 1,479.17 1,479.17
DEPRECIATION 1,614.31 1,614.31 1,614.43 1,614.43 1,614.43 1,614.41
------------- ------------- ------------- ------------- ------------- -------------
Total Amort./Deprec. 11,028.40 11,028.40 11,028.52 11,028.52 11,028.52 11,028.50
Non-Clinical Supplies
FREIGHT & DELIVERY 1,119.39 3,490.65 2,283.98 1,688.92 3,285.20 3,021.14
OFFICE SUPPLY 4,369.01 3,058.65 2,567.30 2,812.11 555.57 2,779.17
OUTSIDE PRINTING & DUPL 4,718.55 2,586.81 475.40 956.03 5,050.46
OTHER NON-CLINICAL SUP
------------- ------------- ------------- ------------- ------------- -------------
Total Non-Clinical
Supplies 10,206.95 9,136.11 5,326.68 4,501.03 4,796.80 10,850.77
Travel Expense
TRAVEL-AIR 3,568.49 1,167.98 388.50 1,500.00 305.20
TRAVEL-AUTO 138.55 30.50
TRAVEL-MILEAGE REIMBU 1,929.10 2,010.70 1,925.90 2,697.26 1,550.00 1,974.55
TRAVEL-LODGING 188.39
TRAVEL-MEALS 52.98 109.29 50.88
TRAVEL-OTHER 37.89 106.45 6.80
ENTERTAINMENT METS (170.00)
TRANSPORTATION LEASIN 80.00 80.00 80.00
------------- ------------- ------------- ------------- ------------- -------------
Total Travel Expenses 5,615.48 3,745.05 2,401.20 2,806.55 2,880.00 2,361.13
Marketing Expenses
MARKETING-PRINT
MARKETING-OTHER 130.00 80.00
------------- ------------- ------------- ------------- ------------- -------------
Total Marketing Expenses 130.00 80.00
Conv/Education/Refr/Dues
CONVENTIONS
TRAINING & EDUCATION 207.40 96.60 190.00
REFERENCE MATERIALS 21.46
BROCHURES & HANDBOOK
DUES & FEES 41.67 842.67 41.63 100.00
------------- ------------- ------------- ------------- ------------- -------------
Total Conv/Education
/Refr/Dues 249.07 960.73 41.63 190.00 100.00
Professional Services
TEMPORARY HELP 252.00 1,333.60 3,877.00
AUDITING 750.00 750.00 750.00 750.00 750.00 750.00
OUTSIDE DATA PROCESSIN 418.87 2,264.48 2,497.61 810.62 (97.18) 11,635.65
COLLECTION FEES 33,401.45 37,869.38
LEGAL
MISC CONSULTING 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
------------- ------------- ------------- ------------- ------------- -------------
Total Professional
Services 4,420.87 7,348.08 6,247.61 4,560.62 37,054.27 57.132.03
Other Operating Expense
EMPLOYEE FUNCTIONS 223.91 392.53 75.29
FOOD FOR OFFICE 249.01 376.10 46.78 67.65 155.40 140.76
PROVISION FOR BAD DEBT 72,771.08 71,173.49 165,250.01 82,681.98 86,978.65 92,777.08
INSURANCE-MALPRACTICE 5,821.68 5,693.89 5,700.00 4,134.09 4,348.93 5,922.87
INSURANCE-BLDG & EQUIP
INSURANCE-OTHERS 515.53 962.33
RECRUITMENT 595.50 859.64 237.30 949.20 359.73 760.10
TAXES & LICENSES 178.40
BANK SERVICE CHARGES 524.67 735.11 766.03 862.97 1,247.49 1,151.16
OTHER GENERAL & ADMIN 194.68 760.06
------------- ------------- ------------- ------------- ------------- -------------
Total Other
Operating Expense 79,961.94 79,256.82 173,152.71 88,771.18 93,605.73 101.892.70
TOTAL OPERATING EXP 567,315.63 535,821.32 649,611.35 500,000.57 515,367.83 548,738.13
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME FROM OPERA 14,853.13 33,566.56 (79,611.35) (86,590.71) (80,474.57) 43,549.35
INTEREST EXPENSE OTHER 1,162.49 1,124.99 1,162.49 1,162.49 1,080.00 1,162.49
INTEREST EXPENSE-MHM
------------- ------------- ------------- ------------- ------------- -------------
Total Interest Expense 1,162.49 1,124.99 1,162.49 1,162.49 1,080.00 1,162.49
MHM BILLED DIRECT EXP
------------- ------------- ------------- ------------- ------------- -------------
Total Other Expense 1,162.49 1,124.99 1,162.49 1,162.49 1,080.00 1,162.49
Net Income 13,690.64 32,441.57 (80,773.84) (87,753.20) (81,554.57) 42,386.86
TREND
APRIL MAY JUNE JULY AUGUST SEPTEMBER
------------- ------------- ------------- ------------- ------------- -------------
Facility Expenses
RENT $16,299.53 $15,804.53 $15,893.03 $15,817.43 $15,562.00 $15,804.53
TAXES-PERSONAL PROPER
ELECTRICITY 866.37 (762.88) 805.61 792.74 778.23 977.46
TELEPHONE 4,165.23 3,852.18 3,927.79 4,673.60 4,082.83 4,059.20
ALARM & PROTECTION SER
OFFICE EQUIPMENT RENTA 2,665.67 1,868.81 1,778.57 1,804.76 1,874.66 2,072.93
TRANSPORTATION-RENT/LE
FURNITURE & EQUIP EXPE
MOVING EXPENSE
REPAIRS & MAINTENANCE 1,053.05 867.34 215.00 947.24 760.54 230.00
------------- ------------- ------------- ------------- ------------- -------------
Total Facility Expense 25,049.85 21,629.98 22,620.00 24,035.77 23,058.26 23,144.12
Amort. & Depreciation
AMORTIZATION-DEFERRED 7,934.92 7,934.92 7,934.92 7,934.92 7,934.92 7,934.92
AMORTIZATION - GOODWI 1,479.17 1,479.17 1,479.17 1,479.17 1,479.17 1,479.17
DEPRECIATION 1,614.41 1,626.11 1,626.11 1,626.11 1,626.11 1,626.11
------------- ------------- ------------- ------------- ------------- -------------
Total Amort./Deprec. 11,028.50 11,040.20 11,040.20 11,040.20 11,040.20 11,040.20
Non-Clinical Supplies
FREIGHT & DELIVERY
OFFICE SUPPLY 1,911.16 1,916.82 1,944.05 2,512.56 2,513.84 4,540.10
OUTSIDE PRINTING & DUPL 1,093.59 1,475.91 967.64 423.45 3,556.55 2,353.20
OTHER NON-CLINICAL SUP 2,960.65 2,277.60 1,836.20 2,646.88 2,090.01 1,466.95
------------- ------------- ------------- ------------- ------------- -------------
Total Non-Clinical
Supplies 5,965.40 5,670.33 4,747.89 5,582.89 8,160.40 8,360.25
Travel Expense
TRAVEL-AIR 1,106.81 976.77 2,203.02 370.50 3,375.48
TRAVEL-AUTO 150.00 109.28 81.96 282.99
TRAVEL-MILEAGE REIMBU 1,462.10 1,877.30 1,443.95 890.80 1,384.53 2,615.07
TRAVEL-LODGING 178.93
TRAVEL-MEALS 10.27 150.05 36.79 93.05 24.57
TRAVEL-OTHER 25.00 226.60 95.00
ENTERTAINMENT METS 213.56
TRANSPORTATION LEASIN 170.09
------------- ------------- ------------- ------------- ------------- -------------
Total Travel Expenses 2,718.91 2,864.34 3,931.30 927.59 2,156.64 6,955.69
Marketing Expenses
MARKETING-PRINT
MARKETING-OTHER
------------- ------------- ------------- ------------- ------------- -------------
Total Marketing Expenses
Conv/Education/Refr/Dues
CONVENTIONS
TRAINING & EDUCATION 255.00 500.00
REFERENCE MATERIALS 58.70
BROCHURES & HANDBOOK
DUES & FEES 500.00 235.00 9,278.00
------------- ------------- ------------- ------------- ------------- -------------
Total Conv/Education
/Refr/Dues 500.00 255.00 235.00 9,278.00 558.70
Professional Services
TEMPORARY HELP 2,857.10 9,711.40 1,233.00
AUDITING 750.00 750.00 750.00 750.00 750.00 750.00
OUTSIDE DATA PROCESSIN 479.55 277.29 402.19 508.98 612.46 (237.67)
COLLECTION FEES 54,085.00 42,555.00 32,261.93 39,402.06 38,151.47 28,976.86
LEGAL
MISC CONSULTING 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
------------- ------------- ------------- ------------- ------------- -------------
Total Professional
Services 61,171.65 56,293.69 39,414.12 43,661.04 42,513.93 33,722.19
Other Operating Expense
EMPLOYEE FUNCTIONS
FOOD FOR OFFICE 302.40 32.55 14.70 14.70 365.63 42.55
PROVISION FOR BAD DEBT 120,661.59 316,475.08 96,513.59 107,845.34 104,422.41 417,688.66
INSURANCE-MALPRACTICE 6,894.94 6,655.71 5,515.06 6,162.59 5,966.99
INSURANCE-BLDG & EQUIP
INSURANCE-OTHERS 962.33 2,934.21 2,774.97 1,394.33 962.33 962.33
RECRUITMENT 508.50 1,139.20 1,706.24 329.12 1,219.42 544.81
TAXES & LICENSES
BANK SERVICE CHARGES 1,156.71 1,111.35 737.78 1,462.76 2,486.31 1,404.91
OTHER GENERAL & ADMIN 483.10
------------- ------------- ------------- ------------- ------------- -------------
Total Other
Operating Expense 130,969.57 328,348.10 107.262.34 117,208.84 115,423.09 420,643.26
TOTAL OPERATING EXP 651,313.79 818,429.84 577,291.60 629,338.53 606,256.17 816,164.94
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME FROM OPERA 38,181.02 (162,857.90) 4,293.13 (13,079.40) (9,556.65) (362,958.99)
INTEREST EXPENSE OTHER 1,124.99 1,162.49 1,124.99 1,162.49 1,162.49 1,124.99
INTEREST EXPENSE-MHM
------------- ------------- ------------- ------------- ------------- -------------
Total Interest Expense 1,124.99 1,162.49 1,124.99 1,162.49 1,162.49 1,124.99
MHM BILLED DIRECT EXP
------------- ------------- ------------- ------------- ------------- -------------
Total Other Expense 1,124.99 1,162.49 1,124.99 1,162.49 1,162.49 1,124.99
Net Income 37,056.03 (164,020.39) 3,168.14 (14,241.89) (10,719.14) (364,083.98)
TREND
TOTAL
-------------
Facility Expenses
RENT $183,878.65
TAXES-PERSONAL PROPER 158.69
ELECTRICITY 12,281.82
TELEPHONE 51,348.87
ALARM & PROTECTION SER
OFFICE EQUIPMENT RENTA 23,161.83
TRANSPORTATION-RENT/LE
FURNITURE & EQUIP EXPE
MOVING EXPENSE
REPAIRS & MAINTENANCE 8,182.66
-------------
Total Facility Expense 279,012.52
Amort. & Depreciation
AMORTIZATION-DEFERRED 95,219.04
AMORTIZATION - GOODWI 17,750.04
DEPRECIATION 19,431.28
-------------
Total Amort./Deprec. 132,400.36
Non-Clinical Supplies
FREIGHT & DELIVERY 30,227.81
OFFICE SUPPLY 26,012.15
OUTSIDE PRINTING & DUPL 27,065.54
OTHER NON-CLINICAL SUP
-------------
Total Non-Clinical
Supplies 83,305.50
Travel Expense
TRAVEL-AIR 14,962.75
TRAVEL-AUTO 793.28
TRAVEL-MILEAGE REIMBU 21,761.26
TRAVEL-LODGING 367.32
TRAVEL-MEALS 527.88
TRAVEL-OTHER 497.74
ENTERTAINMENT METS 43.56
TRANSPORTATION LEASIN 410.09
-------------
Total Travel Expenses 39,363.88
Marketing Expenses
MARKETING-PRINT
MARKETING-OTHER 210.00
-------------
Total Marketing Expenses 210.00
Conv/Education/Refr/Dues
CONVENTIONS
TRAINING & EDUCATION 1,249.00
REFERENCE MATERIALS 80.16
BROCHURES & HANDBOOK
DUES & FEES 11,038.97
-------------
Total Conv/Education
/Refr/Dues 12,368.13
Professional Services
TEMPORARY HELP 19,264.10
AUDITING 9,000.00
OUTSIDE DATA PROCESSIN 19,572.85
COLLECTION FEES 309,703.15
LEGAL
MISC CONSULTING 36,000.00
-------------
Total Professional
Services 393,540.10
Other Operating Expense
EMPLOYEE FUNCTIONS 691.73
FOOD FOR OFFICE 1,808.23
PROVISION FOR BAD DEBT 1,735,238.96
INSURANCE-MALPRACTICE 62,816.75
INSURANCE-BLDG & EQUIP
INSURANCE-OTHERS 11,468.36
RECRUITMENT 9,208.76
TAXES & LICENSES 178.40
BANK SERVICE CHARGES 13,647.25
OTHER GENERAL & ADMIN 1,437.84
-------------
Total Other
Operating Expense 1,836,496.28
TOTAL OPERATING EXP 7,415,649.70
-------------
NET INCOME FROM OPERA (660,686.38)
INTEREST EXPENSE OTHER 13,717.39
INTEREST EXPENSE-MHM
-------------
Total Interest Expense 13,717.39
MHM BILLED DIRECT EXP
-------------
Total Other Expense 13,717.39
Net Income (674,403.77)
39
SCHEDULE 5.5
FINANCIAL STATEMENTS
Extended Care Services, Inc.
Extended Care Massachusetts
For the Month Ending October 31, 1998
TREND
OCTOBER TOTAL
------------- -------------
NET REVENUE $ 485,046.09 $485,046.09
COST OF SERVICES
SALARIED CLINICIAN PAY 257,074.43 257,074.43
CLINICIAN BENEFITS
CONTRACTOR CLINICAL P
COLLECTION FEES 31,012.63 31,012.63
INSURANCE-MALPRACTICE 1,949.02 1,949.02
------------- -------------
TOTAL COST OF SERVICES 290,036.08 290,036.08
GROSS PROFIT 195,010.01 195,010.01
GENERAL & ADMINISTRATIVE
ADMINISTRATIVE PAYROLL 51,355.92 51,355.92
ADMINISTRATIVE BENEFIT 8,429.72 8,429.72
RENT & FACILITY EXPENSE 21,925.17 21,925.17
FREIGHT & DELIVERY 1,500.85 1,500.85
OFFICE SUPPLIES 3,670.67 3,670.67
TRAVEL EXPENSE 3,025.19 3,025.19
MARKETING EXPENSE 750.00 750.00
PROFESSIONAL SERVICES 9,984.42 9,984.42
BAD DEBT/CONTRACT ALL 153,599.17 153,599.17
OTHER G&A EXPENSES 4,739.38 4,739.38
------------- -------------
TOTAL G&A EXPENSES 260,980.49 260,980.49
DEPRECIATION & AMORTI 17,947.66 17,947.66
OTHER INCOME/EXPENSE
INTEREST INCOME
INTEREST EXPENSE 1,162.49 1,162.49
OTHER EXPENSE 2,390.95 2,390.95
------------- -------------
TOTAL OTHER INCOME/E 3,553.44 3,553.44
------------- -------------
TOTAL ALL EXPENSES 282,481.59 282,481.59
------------- -------------
NET INCOME/(LOSS) (87,471.58) (87,471.58)
============= =============
40
ECS MASS
Charges 595,722.00
Adjustment (111,587.32)
------------
Net Revenue 484,134.68
Adjustment (444.90)
Credit Balance 1,355.31
------------
Net Revenue per P&L 485,045.09
============
41
SCHEDULE 5.6
ABSENCE OF CHANGE
NONE
42
SCHEDULE 5.7
ABSENCE OF UNDISCLOSED LIABILITIES
NONE
43
SCHEDULE 5.8
TAX RETURNS AND CREDITS
NONE
44
SCHEDULE 5.10
LIST OF SIGNED AGREEMENTS
XXXXXXXX, XXX XXXXXXX, XXXXX
XXXXXX, XXXXX XXXX, XXXXX X.
XXXXXXXXXX, XXXXX XXXXXXX, XXXX
XXXXXX, XXXXXX XXXXXXX, XXXXX
BERKSHIRE MEDICAL CENTER XXXXX, XXXXX
XXXXXX, XXXX NEEDLES, XXXXXXX
XXXXX, XXXX XXXXXXXXXX, XXXXX
XXXXXXX, XXXXXX XXXX, XXXXXXX XXX
XXXXXXXXXX, XXXXX XXXXX, XXXXXX X.
XXXXXXX, XXXXXXXX X. XXXXXXX, XXXXX
XXXXX, XXXXX XXXXXXXXXXXXX, XXXX
XXXXXXXX, XXXXXXX XXXXX, XXXX
XXXXXX, XXXX XXXXXXX, CWIRA
XXXXXXX, XXXXXXXXXX XXXXX, XXXXXXX X.
XXXXXXXXXX, XXX XXXX, XXXXXXXX X.
XXXXXX-XXXXXX XXXXX XXXXXX, XXXXXXX
XXXX, XXXXX XXXXX, XXXXXXXX
XXXXXXXX, XXXXXX XXXX, XXXXX X.
XXXXXXX, XXXXXXXXX SCHEINAN, XXXXX
XXXXXXXX, XXXXX XXXXXXX, XXXXXX
XXXX, XXXXXX XXXXXXXXX, XXXXX
XXXXXXX, XXXXX XXXXXXXX, XXXXXXXX
XXXXXXX, XXXXXX XXXXXXX, XXXXXXXX
XXXX, XXXXXXX XXXXXXXX, XXXXXX
XXXXXX, XXXXXXX XXXXXX, XXXXXX
XXXXXXXX, XXXXX XXX XXXXXX, XXXXXXX
XXXXXX, XXXXXX XXXXXXX, XXXXXX
XXXXXX, XXXXX XXXXXXX, XXXX
XXXXX, XXXXX XXXXXXXXX, XXXXXXX
KALLNA, XXXXXXXX XXXXXXXXXX, XXXXXXX
XXXXX, XXXX XXXXXX, XXXXXX
XXXXXX, XXXXXXX XXXXXX-XXXXXXX. XXXXXX
XXXXXXXX, XXXXXXX XXXXXX, XXXXXXX
XXXXX, XXXX XXXXX, XXXX X.
XXXXX, XXXXXXX XXXXX, XXXX
XXXXXX, XXXX
XXXXXX, XXXXX
XXXXXX, XXX X.
XXXXXXXX, XXXXXXX
45
SCHEDULE 5.11
INSURANCE POLICIES
POLICY NUMBER
98CGIC22000
Credit General Insurance Corporation
c/o Campania Management Company
000 Xxxxx Xxxxxx, X.X.
Xxxx Xxxxxx Xxx 0000
Xxxxxx, Xxxxxxxx 00000
In consideration of the premium and stipulations hereinafter mentioned, Credit
General Insurance Company. (hereinafter called the Company),
Does Insure: MHM Services, Inc.
----------------------------------------------------
0000 Xxxxxx Xxxxxxxx Xxxxx
----------------------------------------------------
Xxxxxx, Xxxxxxxx 00000-0000
----------------------------------------------------
(hereinafter called Insured),
Term: October 1, 1998, at 12:01 a.m., Eastern standard time
-----------------------------------------------------
October 1, 1999, at 12:01 a.m., Eastern standard time
-----------------------------------------------------
Coverage: Hospital Professional Liability Including General Liability
Conditions: As per policy and attachments hereto.
THIS POLICY SHALL NOT BE VALID UNLESS ENDORSEMENT ISSUED BY THIS COMPANY IS
ATTACHED HERETO, together with such other provisions, agreements or conditions
as may be endorsed hereon or added hereto; and no officer, agent or other
representative of the Company shall have the power to waive or be deemed to
have waived any provision or condition of this Policy unless such waiver, if
any, shall be written upon or attached hereto; nor shall any privilege or
permission affecting the insurance under this Policy exist or be claimed by the
Insured unless so written or attached.
IN WITNESS WHEREOF, this Company has executed these presents, but this Policy
shall not be valid unless countersigned by a duly authorized representative of
the Company
/s/ XXXXXX X. XXXXXXX
--------------------------------
Attorney In Fact
Credit General Insurance Company
**THIS IS A MODIFIED CLAIMS MADE POLICY**
W/A 5 YEAR EXTENDED REPORTING PERIOD
46
HOSPITAL PROFESSIONAL LIABILITY POLICY
SECTION I: DECLARATIONS
Policy Number 98CGIC22000
Item 1. Named Insured and Address:
MHM Services, Inc.
0000 Xxxxxx Xxxxxxxx Xxxxx
Xxxxxx, Xxxxxxxx 00000
Item 2. Each additional person or organization
"insured" added to this policy by endorsement
is a "Named Insured" under this policy.
Item 3. Policy Period:
From: October 1,1998 at 12:01 a.m., Eastern standard time
To: October 1,1999 at 12:01 a.m., Eastern standard time
Item 4. Premium: Per attached invoice
Item 5. This Hospital Professional Liability Policy
provides coverage by reason of "bodily
injury" or "property damage", to which this
insurance applies, caused by an "occurrence",
pursuant to the terms and conditions of this
policy.
Item 6. The limit of liability under this Policy
during a "policy period" is a maximum per
"occurrence" for any "insured". Irrespective
of the number of "insureds" who are provided
coverage by endorsement in addition to the
"Named Insured" identified in Item 2 of the
Declarations and the number of "occurrences",
the aggregate liability during the "policy
period" is $3,000,000.
(a) Per Occurrence (b) Policy
Coverage Limit Aggregate
------------------------------------------------------------------------------------------------------
Hospital Professional $1,000,000, with $3,000,000
Services, Bodily Injury,
Personal Injury and $10,000 Deductible Applies Each and Every
Property Damage Liability
Item 7. Employees of the "Named Insured" are covered by this policy.
47
Item 8. The following endorsements form a part of
this policy and are incorporated herein by
reference as of the effective date set out in
Item 3 of the Declarations:
Endorsement No. 1 - Nuclear Energy Exclusion Endorsement
(Broad Form)
Endorsement No. 2 - Good Samaritan Endorsement
Endorsement No. 3 - Punitive Damages Exclusion
Endorsement
Endorsement Xx. 0 - Xxxxxxx xx Xxxx Xxxxxxxxxxx
Xxxxxxxxxxx Xx. 0 - Additional Named Insured Endorsement
Endorsement No. 6 - Host Liquor Liability Endorsement
48
Endorsement #5
Policy 98CGIC22000
Effective October 1,1998
ADDITIONAL NAMED INSURANCE ENDORSEMENT
Schedule of Named Insureds
It is understood and agreed that the following entities shall be attached and
form the Schedule of Named Insureds Endorsement under this Policy.
Named Insured Additional Insured
MHM Services, Inc. 000 Xxxxxxx Xxxxxx
0000 Xxxxxx Xxxxxxxx Xxxxx Xxxxx 000
Xxxxxx, Xxxxxxxx 00000 Xxxxxxxxxx, XX 00000
0000 Xxxxxx Xxxxxxx, #000
Xxxxxxxx, XX 00000
0000 Xxxx Xxx Xxxxxx
Xxxxx 000
Xxxxxxxxx, XX 00000
0000 Xxxxxx Xxxxxx
Xxxxx 000
Xxxxxxx, XX 00000
00 Xxxxxxx Xxxxx, Xxxxx #0/0
Xxxxxxx, XX 00000
00 Xxxx Xxxxxx, 0xx Xxxxx
Xxxxxxxxx, XX 00000
49
CAMPANIA [LETTERHEAD]
000 Xxxxx Xxxxxx, X.X.
Xxxxxx, Xxxxxxxx 00000 December 31, 1998
(000)000-0000
(000)000-0000 Fax To: Xxxxxx Xxxxx
(000)000-0000 From: Xxxxxxx Xxxxx
* Re: Extended Reporting
0000 Xxxxx Xxxxx Drive, #A-9
MHM' General and Professional Liability policy
Xxxxxxx Xxxxxxx, Xxxx 00000 has a five year extended reporting period
included. This means coverage is extended for
(000)000-0000 events reported sixty months after the policy
ends, as long as the event occurred during the
(000)000-0000 Fax policy period.
(000)000-0000 Please call me if you need further clarification.
*
0000 0xx Xxxxxx, Xxxxx 000X
Xxxx Xxxxx, Xxxxxxx 00000
(000)000-0000
(000)000-0000 Fax
(000)000-0000
*
50
SCHEDULE 5.12
LITIGATION, THREATENED CLAIMS,
GOVERNMENT INVESTIGATION
CONTINGENCIES
On November 23, 1998, the Company received a notice from the Massachusetts Peer
Review Organization, Inc. (MassPro), that the Company's counseling clinic
located in Taunton, Massachusetts had failed to comply with certain
regulations, rules, standards and statutes applicable to providers
participating in the Massachusetts Medical Assistance Program. As a result of
MassPro's audit, the Company was requested to repay the Massachusetts Medical
Assistance Program $215, 000. The Company has thirty days to appeal this
determination. Although the Company believes it will prevail in reducing the
amount of repayment requested, the full amount of this potential liability has
been recorded in the consolidated financial statements at September 30, 1998.
MassPro performed a similar audit on the Company's clinic located in Cambridge,
Massachusetts. The Company has not received any correspondence from MassPro on
the results of this audit. The Company does not believe the results of this
audit will have a material financial impact on the Company's operation.
In December 1998, a lawyer for Xx. Xxxxx Xxxxx wrote complaining of her
discharge from employment which took place in October 1998. No specific demand
was made.
In March 1998, an EEOC discrimination claim was filed on behalf of former
employee, Xxxxxx Xxxx regarding her discharge. The Cambridge Human Rights
Commission found in Xx. Xxxx'x favor. That determination is being appealed, and
a settlement conference is scheduled for January 1999.
51
SCHEDULE 9.0
MEMO
XXX XXXXXXXX
MHM REGIONAL DIRECTOR
MASSACHUSETTS DIVISION
TO: XXX XXXXXXXXX
XXXXX XXXXXXX
XXXXXX XXXXX
DATE: DECEMBER 31,1998
RE: CLINICIAN AGREEMENTS/PERCENTAGE OF BUSINESS
ENCLOSED IS THE PERCENTAGE OF REVENUE FOR THE EXTENDED CARE PROGRAM FOR THE
FOLLOWING CATEGORIES:
1. SUN HOMES
2. XXXXXX HOMES
3. HOMES COVERED BY THE APPROVED CLINICIAN AGREEMENT. THESE
NUMBERS ARE NOT INCLUDED IN THE SUN OR XXXXXX NUMBERS.
4. HOMES NOT COVERED BY THE APPROVED CLINICIAN AGREEMENT. THESE
NUMBERS ARE NOT INCLUDED IN THE SUN XXXXXX NUMBERS.
ALL EXTENDED CARE FACILITIES ARE LISTED WITH THE FOLLOWING CATEGORIES:
1. FACILITY NAME
2.. MHM HOME OR XXXXXX HOME
3. SIGNED AGREEMENT
4. NAME OF CLINICIAN IN THE FACILITY WHO HAS SIGNED
THE DECREASE IN THE NUMBER OF XXXXXX HOMES REFLECT A MORE ACCURATE COUNT OF THE
HOMES THAT WE ACTUALLY XXXX FOR SERVICES. SEVERAL HOMES LISTED PREVIOUSLY HAD
NO CLINICIAN OR MD PERFORMING SERVICES.
ALSO, THE SLIGHT DECREASE NOTED IN THE NUMBER OF COVERED HOMES AND THE SLIGHT
INCREASE IN THE NUMBER OF NON-COVERED HOMES REFLECT MY UNDERSTANDING THAT I AM
TO COUNT ONLY THOSE HOMES WHERE A SIGNED APPROVED CLINICIAN AGREEMENT EXISTS.
(COPIES OF ADDITIONAL SIGNED AGREEMENTS ATTACHED)
THE REVENUE IS BASED ON THE OCTOBER 1998 MONTHLY REPORT OF CHARGES PER
FACILITY.
52
Percentage of MHM Extended Care Business
Covered by Clinicians Agreements
Based on October 1998 Revenue
28 SUN FACILITIES=====35% OF EXTENDED CARE BUSINESS
21 FACILITIES (74%) COVERED BY UNIVERSAL APPROVED
AGREEMENTS=========REVENUE OF $86,996.00
7 FACILITIES (26%) NOT COVERED BY UNIVERSAL APPROVED
AGREEMENTS=======REVENUE OF $30,114.00
21 XXXXXX FACILITIES======10% OF BUSINESS
10 FACILITIES (60%)COVERED BY UNIVERSAL APPROVED
AGREEMENTS=========REVENUE OF $20,076.00
11 FACILITIES (40%) NOT COVERED BY UNIVERSAL APPROVED
AGREEMENTS=======REVENUE OF $13,384.00
36 FACILITIES COVERED BY UNIVERSAL APPROVED AGREEMENTS===========33% OF
BUSINESS=======REVENUE OF $110,418.00
28 FACILITIES NOT COVERED BY UNIVERSAL APPROVED AGREEMENTS=========22% OF
BUSINESS=======REVENUE OF $73,612.00
CLINICIANS THAT WORK IN 12 OF THE NON-COVERED FACILITIES HAVE INDICATED
THAT THEY ARE PLANNING TO WORK WITH XXXXXX.
53
NURSING HOMES
----------------------------------------------------------------------------------------------------------
NURSING HOME TYPE AGREEMENT CLINICIAN IN HOME HAS SIGNED
----------------------------------------------------------------------------------------------------------
ABBOT HOUSE MC NO CLINICIAN
----------------------------------------------------------------------------------------------------------
ABERJONA NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
ACTON ADULT DAY NH NO CLINICIAN
----------------------------------------------------------------------------------------------------------
ASHMERE MANOR NH NO XXXXXXX, COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
AVERY MANOR NH YES XXXXXX
----------------------------------------------------------------------------------------------------------
XXXXXXX NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
BEAUMONT NH YES XXXXX
----------------------------------------------------------------------------------------------------------
BLUEBERRY HILL NH YES NEEDLES
----------------------------------------------------------------------------------------------------------
XXXXXX MANOR NH YES XXXXX
----------------------------------------------------------------------------------------------------------
BOURNE MANOR NH NO
----------------------------------------------------------------------------------------------------------
BRITTANY MC YES XXXXXXX
----------------------------------------------------------------------------------------------------------
BROOKHAVEN MC NO
----------------------------------------------------------------------------------------------------------
XXXXXXXX NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
CANTABRIDGIA NH YES XXXXXXX/NEEDLES
----------------------------------------------------------------------------------------------------------
CARE MATRIX NH YES XXXX
----------------------------------------------------------------------------------------------------------
XXXXXXXX-XXXXXXX NH NO
----------------------------------------------------------------------------------------------------------
XXXXXX NURSING NH YES XXXXX
----------------------------------------------------------------------------------------------------------
CATHOLIC MEMORIAL NH YES XXXXXX MD
----------------------------------------------------------------------------------------------------------
CHARLESGATE MC YES XXXX, XXXXXX
----------------------------------------------------------------------------------------------------------
CHELSEA JEWISH MC YES XXXXXXX
----------------------------------------------------------------------------------------------------------
XXXXX HOUSE MC YES YOUNG
----------------------------------------------------------------------------------------------------------
COC BAYVIEW NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
COC BERKSHIRE NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
COC WESTFIELD NH YES XXXXXXX. MD
----------------------------------------------------------------------------------------------------------
XXXXX, XXXXXXXX MC NO CLINICIAN
----------------------------------------------------------------------------------------------------------
XXXXXXXX HOUSE MC NO CASES
----------------------------------------------------------------------------------------------------------
COOPERATIVE ELDER NH NO CASES
----------------------------------------------------------------------------------------------------------
COURTYARD NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
EAST LONGMEADOW NH YES XXXXX, AN XXXXXX CLINICIAN
----------------------------------------------------------------------------------------------------------
XXXXXXXX NH NO
----------------------------------------------------------------------------------------------------------
PACE PROGRAM MC YES YOUNG
----------------------------------------------------------------------------------------------------------
XXXXXXX MC YES XXXXXXX
----------------------------------------------------------------------------------------------------------
FAIRHAVEN NH NO
----------------------------------------------------------------------------------------------------------
GERMAN HOME NH YES XXXXXX HOME ALREADY
----------------------------------------------------------------------------------------------------------
XXXX RIDGE NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
GODDARD HOUSE MC NO
----------------------------------------------------------------------------------------------------------
XXXXXXX HOUSE AL MC NO
----------------------------------------------------------------------------------------------------------
GREENWOOD NH NO
----------------------------------------------------------------------------------------------------------
XXXX HOUSE NH NO
----------------------------------------------------------------------------------------------------------
HALLMARK NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
HAMMERSMITH MC NO
----------------------------------------------------------------------------------------------------------
XXXXXXXXXX HOUSE NH YES XXXXXXX/XXXXXX
----------------------------------------------------------------------------------------------------------
HATHAWAY NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
HOLYOKE NURSING NH YES XXXXX
----------------------------------------------------------------------------------------------------------
ISLAND TERRACE NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
JESMOND MC YES XXXXX
----------------------------------------------------------------------------------------------------------
JEWISH REHAB NH NO
----------------------------------------------------------------------------------------------------------
KIMWELL NH YES XXXXXXX/XXXXXX
----------------------------------------------------------------------------------------------------------
LIFE CARE CENTER NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
LYNN CONVALESCENT MC NO
----------------------------------------------------------------------------------------------------------
54
NURSING HOMES
----------------------------------------------------------------------------------------------------------
LYNN PUBLIC NH NO XXXXXX ALREADY SERVICING
----------------------------------------------------------------------------------------------------------
XXXX IMMACULATE NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
MEADOWGREEN MC YES NEEDLES
----------------------------------------------------------------------------------------------------------
MEADOWOOD NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
XXXXXX HEALTHCARE NH NO
----------------------------------------------------------------------------------------------------------
XX. XXXXXXXX XX NO
----------------------------------------------------------------------------------------------------------
NEPONSET CIRCLE MC YES XXXXXX
----------------------------------------------------------------------------------------------------------
XXXXXX ADULT DAY NH YES XXXXXX
----------------------------------------------------------------------------------------------------------
NEWTON-WELLESLEY NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
XXXXXXX HOUSE NH NO
----------------------------------------------------------------------------------------------------------
NORTHAMPTON NH YES XXXXX
----------------------------------------------------------------------------------------------------------
OLYMPUS HEALTHCARE NH YES XXXXX
----------------------------------------------------------------------------------------------------------
OLYMPUS SPECIALTY NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
OUR LADY'S HAVEN NH NO
----------------------------------------------------------------------------------------------------------
PARK AVENUE MC NO
----------------------------------------------------------------------------------------------------------
PILGRIM REHAB NH NO XXXXXX ALREADY
----------------------------------------------------------------------------------------------------------
PROVIDENCE HOUSE NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
QUABOAG NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
RAINBOW NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
XXXXXXXX COMM NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
SACRED HEART NH NO
----------------------------------------------------------------------------------------------------------
SANCTA XXXXX NH YES NEEDLES
----------------------------------------------------------------------------------------------------------
XXXXXXXX HOUSE MC NO CLINICIAN
----------------------------------------------------------------------------------------------------------
SOUTHPOINT NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
SPRINGSIDE NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
XXXXXXX XXXXXXXX NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
SUNNY ACRES MC YES XXXXXXXXX
----------------------------------------------------------------------------------------------------------
SUN-XXXXXXX NH YES TRANFLAFIA ALREADY XXXXXX
----------------------------------------------------------------------------------------------------------
SUN-BRIGHTON NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
SUN-BROADWAY NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
SUN-BROOKLINE NH YES BELEROSKY
----------------------------------------------------------------------------------------------------------
SUN-COLONIAL HGTS NH NO
----------------------------------------------------------------------------------------------------------
SUN-CONCORD NH YES XXXXXX
----------------------------------------------------------------------------------------------------------
SUN-E.LONGMEADOW NH NO
----------------------------------------------------------------------------------------------------------
SUN-FALLRIVER NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
SUN-GLENWOOD NH YES XXXX
----------------------------------------------------------------------------------------------------------
SUN-HOLYOKE NH YES XXXXXXXX
----------------------------------------------------------------------------------------------------------
SUN-LEXINGTON NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
SUN-XXXXXX NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
SUN-MILFORD NH YES XXXXX
----------------------------------------------------------------------------------------------------------
SUN-MILLBURY NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
SUN-NEW BEDFORD NH NO
----------------------------------------------------------------------------------------------------------
SUN-NEWTON NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
SUN N.READING NH NO
----------------------------------------------------------------------------------------------------------
SUN-NORTHAMPTON NH YES XXXXX
----------------------------------------------------------------------------------------------------------
SUN-NORTHSHORE NH NO
----------------------------------------------------------------------------------------------------------
SUN-XXXXXXX XXXX NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
SUN-XXXXXXXX NH YES XXXX
----------------------------------------------------------------------------------------------------------
SUN-TOWN MANOR NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
SUN-WEYMOUTH NH NH NO
----------------------------------------------------------------------------------------------------------
SUN-WOODMILL NH NO CLINICIAN IS COMING TO XXXXXX
----------------------------------------------------------------------------------------------------------
55
NURSING HOMES
----------------------------------------------------------------------------------------------------------
WABAN HEALTH NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
XXXXXX HOUSE MC NO CLINICIAN
----------------------------------------------------------------------------------------------------------
WELLESLEY MC YES XXXXXXX
----------------------------------------------------------------------------------------------------------
WENTWORTH NH NO
----------------------------------------------------------------------------------------------------------
WHITNEY PLACE NH YES XXXXX
----------------------------------------------------------------------------------------------------------
WILLOWOOD GR. BAR NH NO
----------------------------------------------------------------------------------------------------------
WILLOWOOD XXXXX NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
WINCHESTER NH YES XXXXXXX
----------------------------------------------------------------------------------------------------------
XXXXXXX BRIGHTON MC NO
----------------------------------------------------------------------------------------------------------
XXXXXXX SUDBURY NH YES XXXXXXXXXX
----------------------------------------------------------------------------------------------------------
WOBURN NH YES XXXX
----------------------------------------------------------------------------------------------------------
56
GENERAL XXXX OF SALE
Reference is made to the Asset Purchase Agreement dated December 21,
1998 (the "Agreement"), by and between MHM Extended Care Services, Inc.
("Seller") and Xxxxxx Xxxxx Services, Inc. ("Buyer"). Capitalized terms not
otherwise defined herein shall have the meanings given to them in the
Agreement.
FOR VALUE RECEIVED pursuant to the Agreement, Seller, for itself and
its successors and assigns, does hereby sell, convey, assign, transfer and
deliver to and vest in Buyer and its successors and assigns all right, title
and interest in and to the following assets and properties of Seller, wherever
located (collectively, the "Assets"):
(a) All equipment, machinery, fixed and movable
equipment, furniture, furnishings, fixtures, vehicles, supplies and all other
tangible and intangible personal property, including computers and billing
services, owned by Seller and used in the operation of the Seller's
Massachusetts business; including but not limited to the property listed on
Exhibit A attached hereto.
(b) Seller's charts, files, and other proprietary
information of the Seller, to the extent transferable to Buyer;
(d) All Clinic licenses of the Seller;
Seller warrants that it hereby transfers to Buyer good, valid and
transferable title to all of the Assets, free and clear of all liens,
encumbrances, restrictions, agreements and adverse claims of every kind, nature
and description, and agrees to defend such title.
57
Seller further covenants and agrees that, from time to time after the
delivery of this instrument, at Buyer's request and without further
consideration, Seller will do, execute, acknowledge and deliver, or cause to be
done, executed, acknowledged and delivered, all such further acts, conveyances,
transfers, assignments, documents and assurances as reasonably may be requested
by Buyer more effectively to convey to, transfer to and vest in Buyer all
right, title and interest in and to any of the Assets transferred or assigned
hereunder.
In WITNESS WHEREOF, Seller has executed this General Xxxx of
Sale as an instrument under seal as of this 31st day of December, 1998.
SELLER: BUYER:
MHM EXTENDED CARE SERVICES INC. XXXXXX XXXXX SERVICES, INC.
/s/ X.X. XXXXXXX 1/4/99
--------------------------- /s/ XXX XXXXXXXXX 12/31/98
Signature Date ---------------------------
Signature Date
Name: X. X. XXXXXXX Name: XXX XXXXXXXXX
--------------------- ---------------------
Title: PRESIDENT Title: CEO
--------------------- ---------------------
-2-
58
ATT. A
ACQUIRED ASSETS
EQUIPMENT INVENTORY/TAUNTON OFFICE
DESK - 12
COMPUTERS - 1, 1 BROKEN
4 DRAWER FILING CABINET - 11
2 DRAWER FILING CABINET - 2
MOBILE FILE UNDER DESK DRAWERS - 2
UPHOLSTERED CHAIRS - 10
DESK CHAIRS - 9
STACKING CHAIRS (UPHOLSTERED) - 17
REFRIGERATOR - 1
CONFERENCE TABLE - 1
ROUND TABLE - 1
BOOK SHELVES - 2
FORM ORGANIZER - 1
COFFEE TABLE - 1
BULLETIN BOARDS - 6
LAMP- 1
DRY - ERASE BOARDS - 2
COMPUTER WORKSTATION - 3
PRINTERS - 3,2 ARE BROKEN
STORAGE CABINET - 1
FAX MACHINE - 1
COPIER - 1
TYPEWRITER - 1
PAPER SHREDDER - 1
MOBILE DROP-LEAF STAND - 1
59
ATT. A
ACQUIRED ASSETS
Equipment Inventory/Cambridge Office
Banquet Folding Table 1
Book case (2 shelves) 2
Bookshelves 11
Bulletin Board 8
Coat Rack (Metal) 1
Coffee Table 1
Computer (Monitor Only) 2
Computers (Keyboard, Monitor, Tower Unit) 12
Conference Tables (Round and Oblong) 2
Desk Chairs 24
Desks 25
Display Booth 1
End Tables 3
Fax Machines 3
File Cabinet (2 drawers) 23
File Cabinet on wheels(small) 1
File Cabinets (4 drawer) 49 (40 used for Medical Records)
Folding Chairs 3
Large Storage Units(5 shelves) (2 plastic, 1 metal) 3
Laser Printer (Large) 1
Laser Printer (Small) 1
Metal Stacking Chairs 32
Microwave Oven 1
Postage Meter 1
Printer Table 2
Printers (dot matrix) 3
Side Table 3
Storage Unit (4 drawers) 4
Storage Unit (2 drawer) 6
Upholstered chairs 23
Wooden Storage Unit 1
Work Station (2 shelves) 6
Work Station (6 shelves) 1
2
60
ASSIGNMENT AND ASSUMPTION OF AGREEMENTS
WHEREAS, MHM Extended Care Services, Inc. (hereinafter called
"Assignor") intends to transfer to Xxxxxx Xxxxx Services, Inc. (hereinafter
called "Assignee") certain assets pursuant to a certain Asset Purchase
Agreement by and between Assignor and Assignee, dated December 21, 1998 (the
"Purchase Agreement"). The Closing Date shall have the same meaning as set
forth in the Purchase Agreement.
WHEREAS, this Agreement shall be effective as of the Closing Date.
NOW, THEREFORE, the parties hereby act and agree as follows:
1. Assignor hereby assigns to Assignee all of its rights,
title and interest in those Agreements in Exhibit A hereto listed (the
"Assigned Agreements").
2. Assignee hereby assumes and agrees to perform, fulfill and
observe all of the covenants, agreements, warranties, obligations and
liabilities of the Assignor accruing or arising under the Assigned Agreements
out of actual facts or situations occurring after the Closing Date.
3. Assignor hereby agrees to perform, fulfill and observe all
of the covenants, agreements, warranties, obligations and liabilities of the
Assignor occurring or arising (i) under the Assigned Agreements arising out of
actual facts or situations occurring prior to the Closing Date and (ii) under
those contracts and agreements of the Assignor not assigned to the Assignee
pursuant to this Agreement.
4. Notwithstanding anything herein to the contrary, the
provisions of this Agreement shall be subject to the provisions of the Purchase
Agreement, and if to the extent they are inconsistent, the provisions of the
Purchase Agreement shall be controlling.
WITNESS the execution hereof on the 31 day of December, 1998.
ASSIGNOR: ASSIGNEE:
MHM EXTENDED CARE SERVICES INC. XXXXXX XXXXX SERVICES, INC.
X.X. XXXXXXX 1/4/99
--------------------------- XXX XXXXXXXXX 12/31/98
Signature Date ---------------------------
Signature Date
Name: XXXXXXX XXXXXXX Name: XXX XXXXXXXXX
--------------------- ---------------------
Title: PRESIDENT Title: CEO
--------------------- ---------------------
61
12/30/98
ATT. A
Acquired Assets
OPENHOM
----------------------------------------------------------------------------------------------
Home Street City State Zip
----------------------------------------------------------------------------------------------
Xxxxx Xxxxx 00 Xxxxx Xxxxxx Xxxx XX 00000
----------------------------------------------------------------------------------------------
Aberjona Nursing Center 000 Xxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Acton Adult Day Care Concord MA
----------------------------------------------------------------------------------------------
Ashmere Manor NH 000 Xxxxxx Xxxxxxx Xxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Avery Manor 000 Xxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxxxxxx Xxxxx XX 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------
Beaumont Rehabilitation 0 Xxxxxx Xxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------
Blueberry Hill Healthcare 00 Xxxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Bolton Manor NH 000 Xxxxxx Xxxxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Bourne Manor 000 XxxXxxxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------
Brittany Conv. Home 000 Xxxx Xxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------
Brookhaven at Lexington 0000 Xxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxxxxxx Nursing Home 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------
Cambridge Outpatient Clinic 00 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Cantabridgia Health Care 000 Xxxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Care Matrix of Dedham 00 Xxxx Xxxxxx Xxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxxxxxx-Xxxxxxx Village 000 Xxx Xxxxxxxxx Xxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Carlyle Nursing & Rehab. Ctr. 000 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Catholic Memorial Home 0000 Xxxxxxxx Xxxxxx Xxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------
Charlesgate Manor Conv. Home 000 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Chelsea Jewish NH 00 Xxxxxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxxx House Nursing Center 00 Xxxxxxxx Xxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
COC - Bay View 00 Xxxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
COC - Berkshire 000 Xxxx Xxxxxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
COC - Westfield 00 Xxxx Xxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxxx, Xxxxxxxx, Xxxxxx Estates 000 Xxxxxxx'x Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxxxxxx House 00 Xxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Cooperative Elder Services, Inc 00-X Xxxxxx Xxxxxxxxxx XX 00000
(Burlington)
----------------------------------------------------------------------------------------------
Courtyard Nursing Care Ctr 000 Xxxxxxxx'x Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------
East Longmeadow NH 000 Xxxxx Xxxxxx Xxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Edgecombe Nursing Home 00 Xxxxxx Xxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------
Elder Services Plan PACE 000 Xxxxxxxxxx Xxxxxx Xxxxxxxx XX 00000
Program, (Brighton)
----------------------------------------------------------------------------------------------
Elder Services Plan 000 Xxxxx Xxxxxx Xxxxxxx Xxxxx XX 00000
PACE Program, (Jamaica P
----------------------------------------------------------------------------------------------
Xxxxxxx Convalescent 00 Xxxxxxxx Xxxx Xxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
FairHaven Nursing Home 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------
German Home RH 000 Xxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxx Xxxxx XXX Xxxxxxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxxxxx House 000-000 Xxxxx Xxxxxxxxxx Xxx Xxxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------
Xxxxxxx House Asst. Living 000 Xxxxxxxx xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------
Page 1
62
ATT. A
ACQUIRED ASSETS
OPENHOM 12/30/98
----------------------------------------------------------------------------------------------------------
Home Street City State Zip
----------------------------------------------------------------------------------------------------------
Great Barrington Rehab 000 Xxxxx Xxxxxx Xxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Greenwood Nursing Home 00 Xxxxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxx Xxxxx XX 000 Xxxxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Hallmark Nursing Home 0000 Xxxxxxxx Xxx Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxxxxx Xxxxx XXX 00 Xxxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxxxx House 000 Xxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Hathaway Manor 000 Xxxxxxxx Xxxx Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Holyoke Nursing Home 0000 Xxxxxxxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Island Terrace NH 00 Xxxx Xxxxx Xxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Jesmond Nursing Home 000 Xxxxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Jewish Rehab Center 000 Xxxxxxxx Xxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Kimwell Nursing 000 Xxx Xxxxxx Xxxx Xxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Life Care Center 00 Xxxxxx Xxxx X. Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Lynn Convalescent Home 000 Xxxxxx Xxxxxx Xxxx XX 00000
----------------------------------------------------------------------------------------------------------
Lynn Public Medical Institute 000 Xxxxxxx Xxxxxx Xxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxx Immaculate Nursing 000 Xxxxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Meadow Green NH 00 Xxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Meadowood Nursing Home 000 Xxxxxx Xxxx Xxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxx Healthcare Facility 0000 Xxxxx Xxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Mt. Pleasant Rest Home 000 Xxxxx Xxxxxxxxxx Xxxxxx Xxxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Neponset Circle 00-00 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Newton-Wellesley 000 Xxxxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx House Nursing Home 000 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Northampton Nursing Home 000 Xxxxxx Xxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxxxxxxx Xxx 0000 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Olympus Specialty 0000 Xxxxx Xxxxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Our Ladys Haven 00 Xxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Park Avenue Nursing Home 000 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Pilgrim Rehabilitation 00 Xxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Providence House NH 00 Xxxxxx Xxxxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Quaboag on the Common 00 Xxxx Xxxx Xxxxxx Xxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Rainbow Nursing Home 000 Xxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxx Communities 000 Xxxxxxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Sacred Heart Nursing Home 000 Xxxxxx Xxxxxx Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Sancta Xxxxx Nursing Facility 000 Xxxxxxx Xxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxxx House 000 Xxxxxxxxxx Xxxxxx Xxxxxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Southpoint Rehabilitation 000 Xxxxx Xxxxxx Xxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Springside of Pittsfield 000 Xxxxxxx Xxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxxxxx Memorial 00 Xxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Page 2
63
ATT. A
ACQUIRED ASSETS
OPENHOM 12/30/98
----------------------------------------------------------------------------------------------------------
Home Street City State Zip
----------------------------------------------------------------------------------------------------------
Sunny Acres Nursing Home 000 Xxxxxxxxx Xxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Beverly 000 Xxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Brighton 000 Xxxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Broadway 000 Xxxxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Brookline 00 Xxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Colonial Heights 000 Xxxxx Xxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Concord 000 Xxx Xx. to Nine Acre Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - East Longmeadow 000 Xxxxxx Xxxxx Xxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Fall River 000 Xxx Xxxxx Xxxx Xxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Glenwood 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Holyoke 000 Xxxx Xxxxxxx Xxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Lexington 000 Xxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Xxxxxx 00 Xxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Milford 00 Xxxxxxxx Xxxxxxxx Xxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Millbury 00 Xxxxxxx Xxxxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - New Bedford 000 Xxxxxxxxxx Xxxxx Xxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Newton 0000 Xxxxxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - North Reading 000 Xxxxx Xxxxxx Xxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Northampton 000 Xxx Xxxxxx Xxxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Northshore 00 Xxxxxxx Xxxxxx Xxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Xxxxxxx Xxxx 000 Xxxxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Randolph 00 Xxxxxx Xxxxxx Xxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Town Manor 00 Xxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Weymouth 00 Xxxxxxxxxxx Xxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Wilmington 000 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
SunRise Care - Wood Mill 000 Xxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Taunton Outpatient Clinic 00 Xxxxxxx Xxxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Waban Health & Rehab. Inc. 00 Xxxxxxxx Xxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxx House 000 Xxxx Xxxxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Wellesley Health & Rehab 000 Xxxxxxxxx Xxxx Xxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Wentworth Nursing Care Center 000 Xxxxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Whitney Place 0 Xxxxxx Xxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Willowood of Great Barrington 000 Xxxxxxxxx Xxxx Xxxx Xxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Willowood of Pittsfield 000 Xxxxxxxxx Xxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Winchester Nursing Center 000 Xxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx at Brighton 000 X. Xxxxxx Xxxxxx Xxxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Xxxxxxx at Sudbury 000 Xxxxxx Xxxx Xxxx Xxxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Woburn Nursing Home 00 Xxxxxxx Xxxxxx Xxxxxx XX 00000
----------------------------------------------------------------------------------------------------------
Page 3
64
ATT.A
ACQUIRED ASSETS
CLINICAL AGREEMENTS AND NON-COMPETE AGREEMENTS
LIST OF SIGNED AGREEMENTS
XXXXXXXX, XXX XXXXXXX, XXXXX
XXXXXX, XXXXX XXXX, XXXXX X.
XXXXXXXXXX, XXXXX XXXXXXX, XXXX
XXXXXX, XXXXXX XXXXXXX, XXXXX
BERKSHIRE MEDICAL CENTER XXXXX, XXXXX
XXXXXX, XXXX NEEDLES, XXXXXXX
XXXXX, XXXX XXXXXXXXXX, XXXXX
XXXXXXX, XXXXXX XXXX, XXXXXXX XXX
XXXXXXXXXX, XXXXX XXXXX, XXXXXX X.
XXXXXXX, XXXXXXXX X. XXXXXXX, XXXXX
XXXXX, XXXXX XXXXXXXXXXXXX, XXXX
XXXXXXXX, XXXXXXX XXXXX, XXXX
XXXXXX, XXXX XXXXXXX, CWIRA
XXXXXXX, XXXXXXXXXX XXXXX, XXXXXXX X.
XXXXXXXXXX, XXX XXXX, XXXXXXXX X.
XXXXXX-XXXXXX XXXXX XXXXXX, XXXXXXX
XXXX, XXXXX XXXXX, XXXXXXXX
XXXXXXXX, XXXXXX XXXX, XXXXX X.
XXXXXXX, XXXXXXXXX SCHEINAN, XXXXX
XXXXXXXX, XXXXX XXXXXXX, XXXXXX
XXXX, XXXXXX XXXXXXXXX, XXXXX
XXXXXXX, XXXXX XXXXXXXX, XXXXXXXX
XXXXXXX, XXXXXX XXXXXXX, XXXXXXXX
XXXX, XXXXXXX XXXXXXXX, XXXXXX
XXXXXX, XXXXXXX XXXXXX, XXXXXX
XXXXXXXX, XXXXX XXX XXXXXX, XXXXXXX
XXXXXX, XXXXXX XXXXXXX, XXXXXX
XXXXXX, XXXXX XXXXXXX, XXXX
XXXXX, XXXXX XXXXXXXXX, XXXXXXX
XXXXXX, XXXXXXXX XXXXXXXXXX, XXXXXXX
XXXXX, XXXX XXXXXX, XXXXXX
XXXXXX, XXXXXXX XXXXXX-XXXXXXX. XXXXXX
XXXXXXXX, XXXXXXX XXXXXX, XXXXXXX
XXXXX, XXXX XXXXX, XXXX X.
XXXXX, XXXXXXX XXXXX, XXXX
XXXXXX, XXXX
XXXXXX, XXXXX
XXXXXX, XXX X.
XXXXXXXX, XXXXXXX
65
ATT.A
NON-COMPETE
LIST OF SIGNED AGREEMENTS
XXXXXXXXXX, XXXXX
XXXXXX, XXXXXX
XXXXXXX, XXXX
XXXX, XXXXXXX
CREDITOR, XXXXX
XXXXXX, XXXXXXXXX
XXXXX, XXXXX
XXXXXXX, XXXXX
XXXXXX, XXXXXXX
XXXXXX, XXXXX
XXXXXXX, XXXXXXXXX
XXXXX, XXXXXXXX
XXXXXXX, XXXX
XXXXX XXXXXXXX
XXXXX, XXXX
ST. XXXXXX, XXXXXXXXX
XXXXXXXXXX, XXXX
XXXXXXXX, XXXXXX
XXX XXXXXX, XXXXXXX
VON WITTENBERGH, XXX
XXXXXXX, XXXX XXX
XXXXXX, XXXXX
66
ATT. A
ACQUIRED ASSETS
SCHOOL CONTRACTS
School Based Active Referral Sources - Xxx Xxxxxxx 12/30/98
-----------------------------------------------------------------------------------------------------------------------------------
Organization Name Address City State Postal Work # Contact Clinician
-----------------------------------------------------------------------------------------------------------------------------------
Xxxxx Elementary 000 Xxxxx Xx. Xxxxxxxxxx XX 00000 (617) 635-8064 Xxxxxx Xxxxxxx K-Xxxxx, C
-----------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx Elementary 000 Xxxxxxxxx Xx. X. Xxxxxx XX 00000 (617) 635-8422 Xxxxxxxxx X'Xxxxx Wintel, C
-----------------------------------------------------------------------------------------------------------------------------------
Conley Elementary 450 Poplar St. Roslindale MA 02131 (617) 635-8099 Leah Sharkley
-----------------------------------------------------------------------------------------------------------------------------------
Dever Elementary 325 Mount Vernon St. Dorchester MA 02125 (617) 635-8694 Peg Handraham Falkoff and K-Pay
-----------------------------------------------------------------------------------------------------------------------------------
Guild Elemenatry 195 Leydon St. E. Boston MA 02128 (617) 635-8523 Simon Ho Wintel, C
-----------------------------------------------------------------------------------------------------------------------------------
Manning Elementary 130 Louders Lane Jamaica Plain MA 02130 (617) 635-8102 Mrs. Walker Winkle, C
-----------------------------------------------------------------------------------------------------------------------------------
McCormack Middle 315 Mount Vernon St. Dorchester MA 02125 (617) 635-8657 Karen Mallory Chow + Cuasa
-----------------------------------------------------------------------------------------------------------------------------------
Roosevelt Elementary 95 Needham St. Hyde Park MA 02136 (617) 635-8676 Mr. McLean
* on hold
-----------------------------------------------------------------------------------------------------------------------------------
Shaw Middle 20 Mt. Vernon St. West Roxbury MA 02132 (617)635-8050 Mrs. Camerson
-----------------------------------------------------------------------------------------------------------------------------------
Sumner Elementary 15 Basile St. Roslindale MA 02131 (617)635-8131 Mr. Shay - K-Payne + Abr
Principal
-----------------------------------------------------------------------------------------------------------------------------------
Warren-Prescott 50 School St. Charlestown MA 02129 (617)635-8346 Dr. Amara - Machell, S
Elementary Principal
-----------------------------------------------------------------------------------------------------------------------------------
Washington Irving 114 Cummins Hwy Roslindale MA 02131 (617)635-8072 Nancy Lee Herber + Cuasa
Middle
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Wheatley Middle 20 Kearsarge Ave. Roxbury MA 02121 (617)635-8165 Gloria Di Angelis K-Payne, C
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Mayflower Mayflower Ave. Middleboro MA 02346 (508)946-2033 Bob Brown Creditor, S
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Memorial Jr. High Main Street Middleboro MA 02346 (508)946-2020 Dina Medeiros Creditor, S
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Edwards Middle 28 Walker Street Charlestown MA 02129 (617)635-8516 Maureen McGoldrick Gerhard, F
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67
ARBOUR ELDER SERVICES, INC.
CLOSING CERTIFICATE
I, Thomas J. Bender, the Vice President of Arbour Elder Services, Inc., a
Massachusetts corporation, (the "Corporation"), do hereby certify, pursuant to
the Asset Purchase Agreement by and between the Corporation and MHM Extended
Care Services, Inc., dated December 21, 1998 (the "Agreement"), to the best of
my knowledge, as follows:
1. That each of the representations and warranties of the Corporation set
forth in Section 6 of the Asset Purchase Agreement are true and correct as of
the date of closing.
IN WITNESS WHEREOF, the undersigned has executed this Certificate as of the
31st day of December 1998.
Arbour Elder Services, Inc.
By: /s/ THOMAS J. BENDER
---------------------------------
Thomas J. Bender
Vice President
68
SECRETARY'S CERTIFICATE
I, Bruce R. Gilbert, Secretary of Arbour Elder Services, Inc. (the
"Corporation"), do hereby certify that the following is a true and correct copy
of the resolution adopted by the Board of Directors of said Corporation on
December 1, 1998.
RESOLVED, that the Board of Directors of the Corporation does hereby
authorize the Corporation to enter into an Asset Purchase Agreement (the
"Agreement") by and between the Corporation and MHM Extended Care, Inc.
("Seller") whereby the Corporation shall purchase certain assets of the Seller
related to the Seller's Massachusetts behavioral health care business, for a
purchase price of $850,000, as more particularly set forth in the Purchase
Agreement; and further
RESOLVED, that Roy Ettlinger, CEO of Arbour Health Systems be authorized
and directed to take such actions and to execute and deliver, on behalf of the
Corporation, the Agreement and any and all other documents related to the
transaction as Mr Ettlinger deems necessary and desirable, with the advice of
counsel, to carry out the intent and purposes set forth in the preceding
resolution.
WITNESS, my hand and seal of the Corporation this 31st day of December
1998.
/s/ BRUCE R. GILBERT
----------------------------------
BRUCE R. GILBERT
SECRETARY
69
UNIVERSAL HEALTH SERVICES, INC.
CERTIFICATE OF THE ASSISTANT SECRETARY
I, Bruce R. Gilbert, Assistant Secretary of Universal Health Services, Inc.,
a Delaware corporation (the "Corporation"), DO HEREBY CERTIFY as follows:
A. That the following officer of the Corporation has been duly elected,
and as of the date hereof, holds the offices of the Corporation
specified beside his name, and that the signature set forth beside his
name is his true signature
Title Typed Name Signature
----- ---------- ---------
Vice President Thomas J. Bender /s/ THOMAS J. BENDER
---------------------------
B. That Thomas J. Bender is authorized to execute and deliver on behalf of
the Corporation, that certain Asset Purchase Agreement by and between
Arbour Elder Services, Inc. (a wholly owned subsidiary of the
Corporation) and MHM Extended Care Services, Inc. dated December 21,
1998
IN WITNESS WHEREOF, I have hereunto set my hand as of the 21st day of
December, 1998.
/s/ BRUCE R. GILBERT
------------------------------
Bruce R. Gilbert
Assistant Secretary
70
[UHS LETTERHEAD]
MHM Extended Care Services, Inc.
c/o MHM Services, Inc.
8000 Towers Cresent Drive
Suite 810
Vienna, VA 22182
Attn: Lee Calligaro, Esq.
Ladies and Gentlemen:
Reference is made to the Asset Purchase Agreement dated as of December 21,
1998 (the "Purchase Agreement"), between Arbour Elder Services, Inc., a
Massachusetts company ("Buyer") and MHM Extended Care Services, Inc., a
Delaware corporation ("Seller").
I have acted as counsel for Buyer and Universal Health Services, Inc. (as
Guarantor of the obligations of the Buyer) ("UHS") in connection with the
preparation of the Purchase Agreement, and the Exhibits thereto. In connection
therewith, I have examined such documents and other records and questions of
law, and made such inquiries as I have deemed necessary for the purposes of
this opinion.
On the basis of the foregoing, I advise you that in my opinion:
1. Buyer is a corporation duly organized and existing under, and by virtue
of, the laws of the Commonwealth of Massachusetts, is in good standing under
such laws. Buyer has the requisite corporation power to own and operate its
respective properties and assets.
2. Buyer and UHS have all requisite power to enter into and to carry out
and perform their obligations under the Purchase Agreement.
3. All action on the part of the Buyer and UHS necessary for the
authorization, execution, delivery and performance by Buyer and UHS of the
Purchase Agreement and the consummation of the transactions contemplated
therein has been taken. The Purchase Agreement is a valid and binding
obligation of the Buyer and UHS, enforceable in accordance with its terms,
except as enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws, from time to time in effect,
affecting the enforcement of creditors' rights generally (no opinion being
expressed herein with respect to the availability of specific performance and
other equitable remedies).
[CELEBRATING 20 EXCELLENCE LOGO]
71
December 31, 1998
MHM Extended Care Services, Inc.
Page 2
4. The execution, delivery and performance of and compliance with the
Purchase Agreement will not result to any violation of, be in conflict with or
result in a breach of the terms, conditions or provisions of, or constitute a
default under, any term of Buyer's or UHS's Articles of Incorporation or
Bylaws. The execution, delivery performance of and compliance with the Purchase
Agreement will not, to the best of my knowledge, result in any violation of, or
be in conflict with, or constitute a default under, any (i) term of any
mortgage, indenture, contract, agreement, instrument, judgment, decree or other
applicable to Buyer, or result in the creation of any mortgage, pledge, lien,
encumbrance or charge upon any of the properties or assets of Buyer pursuant to
any such term, (ii) outstanding judgment, decree or order of any court binding
on Buyer or UHS, or (iii) provision of state of Federal law, or any rule or
regulation thereunder, to which Buyer is subject.
When a matter is stated herein as being "to the best of my knowledge," I
have not conducted an independent investigation into such matter and am
intending to advise you that in the course of my representation of Buyer,
nothing has come to my attention that leads me to believe, and I do not
believe, that the matter is other than as stated herein.
This letter and the opinions referred to herein are effective only as to
the Closing as that term is defined in the Purchase Agreement. The opinions
expressed herein are rendered only to you and are solely for your benefit in
connection with the consummation of the transactions contemplated by the
Purchase Agreement. Such opinions may not be relied upon by you for any other
purpose, or furnished to, quoted to or relied by any other person, firm, or
entity for any purpose, without the express written consent of the undersigned.
Very truly yours,
/s/ GEORGE H. BRUNNER, JR.
-----------------------------------
George H. Brunner, Jr.
Assistant General Counsel
UHS of Delaware, Inc.
72
[HEALTHCARE FINANCIAL PARTNERS LETTERHEAD]
December 30, 1998
MHM Extended Care Services, Inc.
8000 Towers Crescent Drive
Suite 810
Vienna, Virginia 22182
Attention: Mr. Michael S. Pinkert
RE: ARBOUR HEALTH SYSTEMS
Dear Mr. Pinkert:
HCFP Funding, Inc. ("HCFP") understands that Arbour Health Systems
("Arbour") is purchasing from MHM Extended Care Services, Inc. ("MHM")
substantially all of MHM's assets related to MHM's Massachusetts operations
(which assets expressly exclude cash and accounts receivable of MHM) pursuant
to that certain Asset Purchase Agreement dated December 21, 1998 (the "Asset
Agreement"). Pursuant to a Loan and Security Agreement by and among HCFP and
MHM and certain of its affiliates (collectively, "Borrower"), dated as of March
11, 1997, as amended on September 24, 1997 (the "Loan Agreement"), HCFP is
making, and may in the future make, loans to Borrower, which loans are secured
by, among other things, the accounts receivable of MHM (the "Accounts
Receivable"). In connection with said financing arrangement, HCFP has required
that all remittances made by Account Debtors in payment of the Accounts
Receivable be made to the Lockbox Account specified in the Loan Agreement (the
"Lockbox Account") and described on Exhibit A to this Letter Agreement.
1. As provided in Section One (1) of the Asset Agreement, the Accounts
Receivable attributable to services rendered prior to the closing date of the
transactions contemplated by the Asset Agreement (the "pre-Closing Date
Accounts Receivable") are not included in the assets being sold and MHM shall
be responsible for collecting such pre-Closing Date Accounts Receivable. MHM
hereby confirms to HCFP that the proceeds of any and all of the pre-Closing
Date Accounts Receivable collected by MHM shall be immediately forwarded to the
Lockbox Account.
2. Until notified that all balances due to HCFP under the Loan Agreement
and that certain Secured Bridge Note made by MHM and certain affiliates in
favor of HCFP Funding II, Inc., an affiliate of Lender ("Funding II"), dated as
of July 15, 1998 (which Note has a Maturity Date of January 15, 1999 but which
may be extended upon the mutual agreement of MHM and Funding II). Arbour hereby
agrees to take all necessary steps to process any remittances, checks
or other cash items that are identified as the proceeds of pre-Closing Date
Accounts Receivable
73
[HEALTHCARE FINANCIAL PARTNER LETTERHEAD]
MHM Extended Care Services, Inc.
December 30, 1998
Page Two
and to promptly remit such items (no more than three (3) business days after
receipt of such items) to the Lockbox Account at the address specified on
Exhibit A to this Letter Agreement. Arbour hereby waives any right of setoff or
claim against pre-Closing Date Accounts Receivable and the proceeds therefrom
until MHM'S debt to HCFP has been extinguished.
If the foregoing is acceptable, please sign below where indicated and
return this Letter Agreement to the undersigned
Very truly yours,
HCFP FUNDING, INC.
By: /s/ JEFFREY P. HOFFMAN
------------------------------
Jeffrey P. Hoffman
Vice President
ACCEPTED AND AGREED TO:
MHM EXTENDED CARE SERVICES, INC.
By: /s/ [sig]
------------------------
Name: /s/ [sig]
----------------------
Title: President
--------------------
ACCEPTED AND AGREED TO AS TO PARAGRAPH 2 ONLY:
ARBOUR HEALTH SYSTEMS
By: /s/ ROY ETTLINGER
-----------------------
Name: Roy Ettlinger
----------------------
Title: CEO
---------------------
