Exhibit 4.2
[EXECUTION COPY]
NOTE AND STOCK PURCHASE AGREEMENT
DATED AS OF SEPTEMBER 15, 2000
AMONG
PSYCH SYSTEMS HOLDINGS, INC.,
AS ISSUER
THE GUARANTORS FROM TIME TO TIME PARTY HERETO
AND
CANPARTNERS INVESTMENTS IV, LLC,
AS PURCHASER
--------------------------
$7,500,000
SECOND PRIORITY SENIOR SECURED NOTES
DUE 2004
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TABLE OF CONTENTS
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ARTICLE I.
DEFINITIONS AND INTERPRETATION................................2
Section 1.01. Certain Defined Terms.............................2
Section 1.02. Computation of Time Periods......................17
Section 1.03. Accounting Terms and Determinations..............17
Section 1.04. References to this Agreement.....................17
Section 1.05. Miscellaneous Terms..............................17
ARTICLE II.
THE NOTES....................................................18
Section 2.01. Sale and Purchase of Notes.......................18
Section 2.02. Registration of Notes............................18
Section 2.03. Transfer and Exchange of Notes...................18
Section 2.04. Replacement of Notes.............................19
Section 2.05. Payments on Notes................................20
Section 2.06. Mandatory Offers to Repurchase the Notes;
Mandatory Prepayments............................20
Section 2.07. Optional Prepayments of the Notes................22
Section 2.08. Purchases of Notes...............................22
Section 2.09. Allocation of Partial Prepayments................23
ARTICLE III.
GUARANTEE OF NOTES...........................................23
Section 3.01. Agreement of Guaranty............................23
Section 3.02. Guaranty Irrevocable.............................23
Section 3.03. Certain Waivers..................................24
Section 3.04. Certain California Law Waivers...................25
Section 3.05. Limitations on Subrogation.......................26
Section 3.06. Limit on Amount of Guaranty......................26
Section 3.07. Release of Subsidiary Guarantors under Certain
Circumstances....................................26
Section 3.08. Subordination of Certain Indebtedness............27
Section 3.09. Guarantors' Indemnity............................27
Section 3.10. No Duty of Inquiry...............................27
Section 3.11. No Duty to Provide Data to Guarantors............27
Section 3.12. Rights Cumulative................................27
Section 3.13. Certain Waivers Regarding Interest Accruals......28
Section 3.14. Continuation of Guaranty.........................28
Section 3.15. Continuing Guaranty..............................28
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ARTICLE IV.
CLOSING......................................................28
Section 4.01. Closing of Purchase and Sale of Notes and Shares.28
Section 4.02. Additional Conditions to Closing.................29
ARTICLE V.
REPRESENTATIONS AND WARRANTIES...............................32
Section 5.01. Representation and Warranties of the Obligors....32
Section 5.02. Representations of the Purchaser.................40
ARTICLE VI.
REPORTING AND AFFIRMATIVE COVENANTS..........................40
Section 6.01. Financial and Business Information...............40
Section 6.02. Officer's Certificate............................43
Section 6.03. Inspection.......................................44
Section 6.04. Compliance with Law..............................44
Section 6.05. Insurance........................................44
Section 6.06. Maintenance of Properties........................45
Section 6.07. Payment of Taxes and Claims......................45
Section 6.08. Corporate Existence, etc.........................45
Section 6.09. Maintenance of Books and Records.................45
Section 6.10. Maintenance of Lines of Business.................46
Section 6.11. Private Placement Numbers........................46
Section 6.12. Liens............................................46
Section 6.13. Rule 144.........................................46
Section 6.14. Use of Proceeds; Margin Regulations..............46
Section 6.15. Further Assurances; Security Interests...........46
Section 6.16. Prepayment of Senior Debt........................47
Section 6.17. Right to Provide Financing.......................48
Section 6.18. Hazardous Materials; Remediation.................48
Section 6.19. Board Meetings. .................................49
Section 6.20. Enforcement of Covenants Not to Compete and
Material Contracts...............................49
Section 6.21. Landlord and Warehouseman Waivers................49
Section 6.22. Mortgages on Real Property; Title Insurance and
Survey...........................................49
Section 6.23. Additional Subsidiaries..........................50
Section 6.24. Accreditation and Licensing......................50
Section 6.25. Issuance of Additional Notes.....................50
Section 6.26. Interest Rate Contracts..........................50
Section 6.27. Post-Closing Deliveries and Requirements.........51
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ARTICLE VII.
NEGATIVE COVENANTS...........................................51
Section 7.01. Transactions with Affiliates; Management
Compensation.....................................51
Section 7.02. Consolidations and Mergers.......................51
Section 7.03. Limitation on Asset Sales........................51
Section 7.04. Restricted Payments and Investments..............52
Section 7.05. Limitation on Additional Indebtedness............52
Section 7.06. Negative Pledge..................................53
Section 7.07. Rank of Future Indebtedness......................53
Section 7.08. Activities of Parent.............................53
Section 7.09. ERISA............................................54
Section 7.10. Amendments or Waivers............................54
Section 7.11. Restrictions on Sale and Issuance of Capital
Stock............................................54
Section 7.12. Capitated Beneficiary Adjustments; Public
Contracts Capitation Risk........................54
Section 7.13. Fiscal Year......................................55
Section 7.14. Total Debt Service Coverage Ratio................55
Section 7.15. Minimum EBITDA...................................55
Section 7.16. Restrictive Agreements...........................56
Section 7.17. Equity Securities Issuances to Employees and
Management.......................................56
Section 7.18. Segregated Account...............................56
ARTICLE VIII.
EVENTS OF DEFAULT AND REMEDIES...............................56
Section 8.01. Events of Default................................56
Section 8.02. Remedies on Event of Default, Etc................60
ARTICLE IX.
MISCELLANEOUS................................................61
Section 9.01. Expenses, etc....................................61
Section 9.02. Survival of Representations and Warranties;
Entire Agreement.................................62
Section 9.03. Amendment and Waiver.............................62
Section 9.04. Notices..........................................63
Section 9.05. Reproduction of Documents........................65
Section 9.06. Confidential Information.........................65
Section 9.07. Transfers of Notes...............................66
Section 9.08. Successors and Assigns...........................66
Section 9.09. Severability.....................................66
Section 9.10. Construction.....................................66
Section 9.11. Counterparts.....................................66
Section 9.12. Governing Law....................................67
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Section 9.13. Indemnification..................................67
Section 9.14. Maximum Rate.....................................67
Schedules:
1.01(b) Permitted Liens
4.02(h) Litigation
5.01(c) Changes to Financial Condition
5.01(d)(ii) Material Agreements
5.01(e) Permits
5.01(f)(i) Corporate Structure
5.01(f)(ii) Ownership of Pledged Securities
5.01(f)(ii)(a) Rights of Conversion into Shares of Parent
5.01(f)(ii)(b) Rights of Conversion into Shares of Non-Parent Obligors
5.01(f)(ii)(c) Rights of Conversion into Shares of Non-Obligor Subsidiaries
5.01(i) Chief Executive Office of Obligors and Location of Records
5.01(n) Material Assets
5.01(t)(i) Indebtedness of Obligors
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NOTE AND STOCK PURCHASE AGREEMENT
THIS NOTE AND STOCK PURCHASE AGREEMENT (as the same may be amended,
supplemented or otherwise modified from time to time, this "AGREEMENT") is
entered into as of September 15, 2000 by and among (i) PSYCH SYSTEMS HOLDINGS,
INC., a Delaware corporation (the "ISSUER"), (ii) THE GUARANTORS FROM TIME TO
TIME PARTY HERETO, (iii) CANPARTNERS INVESTMENTS IV, LLC, a California limited
liability company (the "INITIAL PURCHASER"), and (iv) THE OTHER PURCHASERS FROM
TIME TO TIME PARTY HERETO (together with the Initial Purchaser, the
"PURCHASER").
RECITALS
WHEREAS, the Issuer desires to sell and the Purchaser desires to
purchase in each case on the terms and conditions set forth in this Agreement,
$7,500,000 in aggregate principal amount of the Issuer's 15% Senior Subordinated
Secured Notes due June 15, 2004, for an aggregate purchase price of
$7,115,142.86, which notes shall be in substantially the form of EXHIBIT A
attached hereto and made a part hereof (together with any Additional Notes (as
defined below) and such notes issued in substitution therefor pursuant to
SECTIONS 2.03 and 2.04 of this Agreement, the "NOTES");
WHEREAS, concurrently with the issuance of the Notes, the Purchaser
has agreed to purchase and American Psych Systems Holdings, Inc., a Delaware
corporation and the parent of the Issuer (the "PARENT") has agreed to issue to
the Purchaser an aggregate of 750,000 shares of the Parent's Common Stock (the
"SHARES") for an aggregate purchase price of $750, and the Purchaser and the
Parent have agreed to Purchaser's exercise of previously issued Warrants in
exchange for 1,183,928 shares of Common Stock (the "WARRANT SHARES");
WHEREAS, the Purchaser has required as a condition, among others, to
its purchase of the Notes that the Parent and each Subsidiary of the Issuer
named as a Guarantor herein unconditionally guarantee the prompt and complete
payment and performance of the Issuer's obligations under the Notes, this
Agreement and the other Note Documents; and
WHEREAS, to provide assurance for the repayment of the Notes, the
Issuer and the Guarantors will provide or will cause to be provided to the
Purchaser, a security interest in the Collateral pursuant to the applicable
Security Documents;
WHEREAS, the Issuer has entered into that certain Credit Agreement,
dated as of December 23, 1998, as amended on August 26, 1999, October 18, 1999,
June 23, 2000 and the date hereof (as the same may be further amended,
supplemented or otherwise modified from time to time, the "EXISTING CREDIT
AGREEMENT") with Bank of America, N.A. (successor in interest to Banc of America
Commercial Finance Corporation, formerly known as NationsCredit Commercial
Corporation), as agent for all of the "Lenders" named therein (the "EXISTING
LENDERS") pursuant to which, among other things, the Existing Lenders have
agreed, subject to the terms and conditions set forth in the Existing Credit
Agreement, to make certain loans and financial accommodations to the Issuer;
[EXECUTION COPY]
WHEREAS, the Existing Lenders have required as a condition, among
others, to their obligations under the Existing Credit Agreement that the
Purchaser enter into that certain Subordination and Intercreditor Agreement of
even date herewith (as the same may be amended, supplemented or otherwise
modified from time to time, the "INTERCREDITOR AGREEMENT").
NOW, THEREFORE, in consideration of the foregoing and each of the
representations, warranties, covenants and agreements contained herein, the
parties hereto agree as follows:
ARTICLE I.
DEFINITIONS AND INTERPRETATION
SECTION 1.01. Certain Defined Terms. As used herein, the following
terms have the respective meanings set forth below or set forth in the Section
hereof following such term:
"ADDITIONAL NOTE" is defined in SECTION 6.25.
"AFFILIATE" means with respect to any Person (i) any other Person
that directly, or indirectly through one or more intermediaries, controls such
first Person (a "CONTROLLING PERSON") or (ii) any other Person which is
controlled by or is under common control with a Controlling Person. As used
herein, the term "control" of a Person means the possession, directly or
indirectly, of the power to vote 10% or more of any class of voting securities
of such Person or to direct or cause the direction of the management or policies
of a Person, whether through the ownership of voting securities, by contract or
otherwise.
"AFFILIATED INVESTOR" shall mean with respect to any Person, all
other Persons the investment affairs of which are controlled or managed by the
first Person.
"AGREEMENT" is defined in the preamble to this Agreement.
"APS" means American Psych Systems, Inc., an Iowa corporation.
"ASSET SALE" means any sale, lease or other disposition (including
any such transaction effected by way of merger or consolidation) by any Obligor
of any asset, but excluding (i) dispositions of inventory in the ordinary course
of business and (ii) dispositions of Temporary Cash Investments and cash
payments otherwise permitted under this Agreement; provided that a disposition
of assets not excluded by clauses (i) or (ii) above during any Fiscal Year shall
not constitute an Asset Sale unless and until (and only to the extent that),
subject to the provisions of Section 6 of the Intercreditor Agreement: (x) the
aggregate Net Cash Proceeds of such disposition of assets are not used for the
purchase of reasonably equivalent replacements of such assets acquired or
ordered within 90 days thereof or (y) the aggregate Net Cash Proceeds from such
disposition (if not used as provided in clause (x) above), when combined with
all other such dispositions previously made during such Fiscal Year and not used
as provided in clause (x) above, exceeds $100,000.
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"BANKRUPTCY CODE" means Title 11 of the United States Code (11
U.S.C.ss.ss.101 ET SEQ.).
"BUSINESS DAY" means any day other than a Saturday, a Sunday or a
day on which commercial banks in New York, New York are required or authorized
to be closed.
"CAPITAL LEASE" of any Person means any lease of any property
(whether real, personal or mixed) by such Person as lessee which would, in
accordance with GAAP, be required to be accounted for as a capital lease on the
balance sheet of such Person.
"CAPITAL STOCK" means, with respect to any Person, any and all
shares, interests, participations, rights or other equivalents (however
designated) of capital stock of such Person (if a corporation) or any and all
similar ownership interests in a Person (other than a corporation) whether now
outstanding or issued after the date of this Agreement.
"CAPITATED BENEFICIARY ADJUSTMENT PAYMENT" means any payments made
to APS upon the termination of the PHC Service Agreement pursuant to Section 2.3
of the PHC Purchase Agreement based on the formula set forth on Schedule II-A to
the PHC Purchase Agreement.
"CHAMPUS" means, collectively, the Civilian Health and Medical
Program of the Uniformed Service, a program of medical benefits covering former
and active members of the uniformed services and certain of their dependents,
financed and administered by the United States Departments of Defense, Health
and Human Services and Transportation, and all laws, rules, regulations,
manuals, orders, guidelines or requirements pertaining to such program including
(a) all federal statutes (whether set forth in 10 U.S.C. ss.ss.1071-1106 or
elsewhere) affecting such program; and (b) all rules, regulations (including 32
C.F.R. ss.199), manuals, orders and administrative, reimbursement and other
guidelines of all governmental authorities promulgated in connection with such
program (whether or not having the force of law), in each case as the same may
be amended, supplemented or otherwise modified from time to time.
"CHAMPVA" means, collectively, the Civilian Health and Medical
Program of the Department of Veteran Affairs, a program of medical benefits
covering retirees and dependents of former members of the armed services
administered by the United States Department of Veteran Affairs, and all laws,
rules, regulations, manuals, orders, guidelines or requirements pertaining to
such program including (a) all federal statutes (whether set forth in 38 U.S.C.
ss.1713 or elsewhere) affecting such program or, to the extent applicable to
CHAMPVA, CHAMPUS; and (b) all rules, regulations (including 38 C.F.R. ss.17.54),
manuals, orders and administrative, reimbursement and other guidelines of all
governmental authorities promulgated in connection with such program (whether or
not having the force of law), in each case as the same may be amended,
supplemented or otherwise modified from time to time.
"CHANGE OF CONTROL" means the occurrence of one or more of the
following events after the date hereof:
(i) any person or group of persons (within the meaning of Rule
13d-3 promulgated by the Securities and Exchanges Commission under the
Securities Exchange Act of
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1934, as amended), other than the current owners and Persons who acquire Common
Stock as consideration for acquisitions, shall have acquired beneficial
ownership (within the meaning of such Rule 13d-3) of 25% or more of the Common
Stock of the Parent;
(ii) each of Xx. Xxxxxxx X. Xxxxxxx, Xxxxx & Company IV, L.P.,
Applewood Associates, L.P., Seneca Ventures, Woodland Partners and Woodland
Venture Fund shall hold less than the number of outstanding shares of such class
of capital stock of the Parent (on a fully diluted basis) as each such Person
holds on the Closing Date;
(iii) Xx. Xxxxxxx X. Xxxxxxx shall cease to perform the
functions of President and Chief Executive Officer of the Issuer, and a
successor shall not have been appointed by the Issuer and approved by the
Required Holders within 90 days thereafter; or
(iv) during any twelve consecutive calendar months, Persons
who were directors of the Parent or who were directors of the Issuer on the
first day of such period shall cease to constitute a majority of the board of
directors of the Parent or the Issuer, respectively.
"CLOSING" is defined in SECTION 4.01.
"CLOSING DATE" is defined in SECTION 4.01.
"CODE" means the Internal Revenue Code of 1986, as amended from time
to time, and the rules and regulations promulgated thereunder from time to time.
"COLLATERAL" means with respect to each Obligor, all of such
Obligor's Property pledged as security for the Obligations pursuant to the
Security Documents.
"COLLATERAL AGENT" has the meaning set forth in the Intercreditor
Agreement.
"COMMISSION" means the Securities and Exchange Commission.
"COMMON STOCK" means (i) both the Class A Common and the Class B
Common shares of the Parent, $0.001 par value, as set forth in its Certificate
of Incorporation and (ii) any securities issued in respect of or exchange for
the securities described in clause (i) pursuant to a stock dividend, stock
split, recapitalization, merger or reclassification.
"CONFIDENTIAL INFORMATION" is defined in SECTION 9.06.
"CONSOLIDATED ADJUSTED CURRENT ASSETS" means, at any date, the
Consolidated Current Assets (excluding cash and cash equivalents) of the Parent
and its Consolidated Subsidiaries determined as of such date.
"CONSOLIDATED CAPITAL EXPENDITURES" means, for any period, the
aggregate amount of expenditures by the Parent and its Consolidated Subsidiaries
for plant, property and equipment during such period (including any such
expenditures by way of acquisition of a Person or by way of assumption of
Indebtedness or other obligations of a Person, to the extent reflected as plant,
property and equipment), but excluding any such expenditures made for the
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replacement or restoration of assets to the extent financed by condemnation
awards or proceeds of insurance received with respect to the loss or taking of
or damage to the asset or assets being replaced or restored.
"CONSOLIDATED CURRENT ASSETS" means, at any date, the consolidated
current assets of the Parent and its Consolidated Subsidiaries determined as of
such date.
"CONSOLIDATED CURRENT LIABILITIES" means, at any date, (i) the
consolidated current liabilities (excluding Indebtedness) of the Parent and its
Consolidated Subsidiaries plus (ii) the current liabilities of any Person (other
than the Parent or a Consolidated Subsidiary) which are Guaranteed by the Parent
or a Consolidated Subsidiary, all determined as of such date.
"CONSOLIDATED EBITDA" means, for any period, the EBITDA of the
Parent and its Consolidated Subsidiaries for such period.
"CONSOLIDATED FREE CASH FLOW" means, for any period, Consolidated
EBITDA for such period minus the following amounts:
(a) all cash payments of income taxes by the Parent and its
Consolidated Subsidiaries during such period; and
(b) Consolidated Capital Expenditures for such period, to the extent
that such Consolidated Capital Expenditures are permitted by Senior Debt
Documents and are not financed during such period with the proceeds of
Indebtedness of the Parent or any Subsidiary permitted under SECTION 7.05(b).
"CONSOLIDATED NET INCOME" means, the net income of the Parent and
its Consolidated Subsidiaries for such period as determined on a consolidated
basis in accordance with GAAP.
"CONSOLIDATED SUBSIDIARY" means at any date any Subsidiary or other
entity the accounts of which would be consolidated with those of the Parent in
its consolidated financial statements if such statements were prepared as of
such date.
"CONTRIBUTION AGREEMENT" means the Contribution Agreement of even
date herewith between the Guarantors and the Purchaser, as the same may be
amended, supplemented or otherwise modified from time to time.
"COVENTRY HEALTH CARE" means Coventry Health Care, Inc., an Iowa
corporation.
"CURRENT RATIO" means at any time the ratio of (i) Consolidated
Current Assets to (ii) Consolidated Current Liabilities, each as of the last day
of the then most recently ended calendar month.
"DEFAULT" means an event or condition the occurrence or existence of
which would, with the lapse of time or the giving of notice or both, become an
Event of Default.
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"DEFAULT RATE" means that rate of interest that is 2.5% per annum
above the rate of interest stated in clause (a) of the first paragraph of the
Notes.
"EBITDA" means, for any period and for any Person, the Consolidated
Net Income of such Person and its consolidated subsidiaries for such period,
after all expenses and other proper charges except depreciation, interest,
amortization and income taxes, determined in accordance with GAAP (specifically
including in the calculation thereof in the case of the Parent and its
Consolidated Subsidiaries (x) any income or loss from discontinued operations
and (y) the full amount of any charges incurred in such period related to the
development of new business, whether expensed or capitalized) (A) eliminating,
without duplication: (i) all intercompany items, (ii) all earnings attributable
to equity interests in Persons that are not Subsidiaries of such Person unless
actually received by such Person, (iii) all income arising from the forgiveness,
adjustment, or negotiated settlement of any indebtedness, (iv) any extraordinary
items of income or expense, (v) any increase or decrease in income arising from
any change in such Person's method of accounting, subject (in the case of the
Parent) to SECTION 1.03, and (vi) any interest income, and (B) deducting
therefrom, to the extent not previously deducted in calculating Consolidated Net
Income, any development costs incurred subsequent to the Closing Date, whether
expensed or capitalized on the books of the Parent.
"ENVIRONMENTAL LAWS" means any and all federal, state, local and
foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, codes, plans, injunctions, permits, concessions,
grants, franchises, licenses, agreements and governmental restrictions, whether
now or hereafter in effect, relating to human health, the environment or to
emissions, discharges or releases of pollutants, contaminants, Hazardous
Materials or wastes into the environment, including ambient air, surface water,
ground water or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, Hazardous Materials or wastes or the clean-up or other
remediation thereof.
"ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time, or any successor statute.
"ERISA AFFILIATE" means any trade or business (whether or not
incorporated) that is treated as a single employer together with any Obligor
under section 414 of the Code.
"EQUITY INTEREST" means the legal or beneficial ownership of all or
a portion of the equity of a Person, including but not limited to preferred or
common stock, options, warrants or rights to acquire stock, interests in a
limited liability company, trusts, interests in a general or limited partnership
or interests in other Persons, however denominated.
"EVENT OF DEFAULT" is defined in SECTION 8.01.
"EXCESS CASH FLOW" means, for any period, an amount equal to (i)
Consolidated Free Cash Flow for such period, plus (ii) any interest income of
the Parent and its Consolidated Subsidiaries for such period, minus (iii) the
sum for such period of Total Debt Service for such period, and plus (or minus)
(iv) any decrease (or increase) in the Net Working Investment (other
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than as a result of acquisitions) at the end of such Fiscal Year, when compared
with the Net Working Investment at the end of the prior Fiscal Year.
"EXCESS CASH FLOW ADJUSTMENT DATE" is defined in SECTION 2.06(b)
"EXCHANGE ACT" means the Securities Exchange Act of 1934.
"EXISTING CREDIT AGREEMENT" is defined in the recitals to this
Agreement.
"EXISTING LOAN DOCUMENTS" means the Existing Credit Agreement and
all other agreements, documents and instruments executed from time to time in
connection therewith, as the same may be amended, supplemented or otherwise
modified from time to time.
"EXTRAORDINARY PROCEEDS" means the following cumulative proceeds of
the Parent, Issuer and any Subsidiary from any and all of the following in the
aggregate, regardless of the timing of receipt of such proceeds:
(i) 100% of Net Cash Proceeds from Asset Sales;
(ii) 50% of the first Five Million Dollars ($5,000,000) of Net Cash
Proceeds from a Private Equity Issuance and 100% of Net Cash Proceeds from a
Private Equity Issuance in excess of Five Million Dollars ($5,000,000);
(iii) 100% of Major Casualty Proceeds unless, the Required Lenders
(as defined in the Existing Credit Agreement) shall otherwise direct (in which
case the amount of such payment shall be deposited into the Insurance Account
(as defined in the Existing Credit Agreement) to be held and applied in
accordance with the Security Documents);
(iv) 100% of Capitated Beneficiary Adjusted Payments; or
(v) 62.5% of the first Thirty Million Dollars ($30,000,000) of the
Net Cash Proceeds from an IPO or any subsequent public issuance of equity and
87.5% of Net Cash Proceeds from an IPO or any subsequent public issuance of
equity in excess of Thirty Million Dollars ($30,000,000).
"FISCAL YEAR" means a fiscal year of the Issuer.
"GAAP" means generally accepted accounting principles as in effect
from time to time in the United States of America, as applied by the Parent and
its Subsidiaries on a consistent basis.
"GOVERNING DOCUMENTS" means, with respect to any corporation,
limited liability company or partnership (a) the articles/certificate of
incorporation (or the equivalent formation documents) of such corporation or
limited liability company, (b) the partnership agreement executed by the
partners in the partnership, (c) the by-laws (or the equivalent organizational
documents) of the corporation, limited liability company or partnership and (d)
any document setting forth the designation, amount and/or relative rights,
limitations and
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preferences of any class or series of such corporation's capital stock or such
limited liability company's or partnership's equity or ownership interests, as
in effect from time to time.
"GOVERNING LAW" means the law of the State of New York excluding
choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.
"GOVERNMENTAL AUTHORITY" means (a) the government of (i) the United
States of America or any State or other political subdivision thereof, or (ii)
any jurisdiction in which any Obligor conducts all or any part of its business,
or which asserts jurisdiction over any properties of such Obligor, or (b) any
entity exercising executive, legislative, judicial, regulatory or administrative
functions of, or pertaining to, any such government.
"GUARANTORS" means, collectively, the Parent, each Subsidiary of the
Parent, other than the Issuer, and each other Person who now or in the future
guarantees the payment and performance of the Obligations; PROVIDED, HOWEVER,
that no Person shall be a Guarantor after such time as such Person has been
released from its Guaranty of the Notes pursuant to the provisions of this
Agreement.
"GUARANTEE" by any Person means any obligation, contingent or
otherwise, of such Person directly or indirectly guaranteeing any Indebtedness
or other obligation of any other Person and, without limiting the generality of
the foregoing, any obligation, direct or indirect, contingent or otherwise, of
such Person: (i) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation (whether arising by virtue
of partnership arrangements, by agreement to keep-well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (ii) entered into for the purpose of
assuring in any other manner the obligee of such Indebtedness or other
obligation of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part), provided that the term Guarantee shall
not include endorsements for collection or deposit in the ordinary course of
business. The term "Guarantee" used as a verb has a corresponding meaning.
"GUARANTY" means, with respect to any Guarantor, its guaranty of the
Notes and all of its obligations thereunder as set forth in Article III hereof.
"HAZARDOUS MATERIALS" means: (i) any "hazardous substance" as
defined in CERCLA; (ii) asbestos; (iii) polychlorinated biphenyls; (iv)
petroleum, its derivatives, by-products and other hydrocarbons; and (v) any
other toxic, radioactive, caustic or otherwise hazardous substance regulated
under Environmental Laws.
"HAZARDOUS MATERIALS CONTAMINATION" means contamination (whether now
existing or hereafter occurring) of the improvements, buildings, facilities,
personalty, soil, groundwater, air or other elements on or of the relevant
property by Hazardous Materials, or any derivatives thereof, or on or of any
other property as a result of Hazardous Materials, or any derivatives thereof,
generated on, emanating from or disposed of in connection with the relevant
property.
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"HCFA" shall mean the Health Care Financing Administration, an
agency of HHS, and any successor thereto.
"HHS" means the United States Department of Health and Human
Services or any successor thereto.
"HIGHEST LAWFUL RATE" means, at any given time during which any
Obligations shall be outstanding hereunder, the maximum nonusurious interest
rate that at any time or from time to time may be contracted for, taken,
reserved, charged or received on the Obligations, under the laws of the State of
New York (or the law of any other jurisdiction whose laws may be mandatorily
applicable notwithstanding other provisions of this Agreement and the other Note
Documents), or under applicable federal laws which may presently or hereafter be
in effect and which allow a higher maximum nonusurious interest rate than under
the laws of the State of New York (or such other jurisdiction's) law, in any
case after taking into account, to the extent permitted by applicable law, any
and all relevant payments or charges under this Agreement and any other Note
Documents executed in connection herewith, and any available exemptions,
exceptions and exclusions.
"HOLDER" means, with respect to any Note, the Person in whose name
such Note is registered in the register maintained by the Issuer pursuant to
SECTION 2.02.
"INDEBTEDNESS" of a Person means at any date, without duplication,
all obligations of such Person which, in accordance with GAAP, would be included
as a liability on the balance sheet of such Person, including, without
limitation, (i) all obligations of such Person for borrowed money, (ii) all
obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments, (iii) all obligations of such Person to pay the deferred
purchase price of property or services, except trade accounts payable arising
and paid in the ordinary course of business, (iv) all Capital Leases of such
Person, (v) all obligations of such Person to purchase securities (or other
property) which arise out of or in connection with the issuance or sale of the
same or substantially similar securities (or property), (vi) all contingent or
non-contingent obligations of such Person to reimburse any bank or other Person
in respect of amounts paid under a letter of credit or similar instrument, (vii)
all equity securities of such Person subject to repurchase or redemption
otherwise than at the sole option of such Person, (viii) all indebtedness
secured by a Lien on any asset of such Person, whether or not such indebtedness
is otherwise an obligation of such Person, (ix) all indebtedness of others
Guaranteed by such Person, and (x) all obligations of such Person in respect of
settlements (structured or otherwise) of any litigation involving such Person.
"INSOLVENCY EVENT" means any of the events described in paragraphs
(h) and (j) of SECTION 8.01.
"INTERCREDITOR AGREEMENT" is defined in the recitals to this
Agreement.
"INTEREST RATE CONTRACT" means any interest rate exchange, swap,
collar, future protection, cap, floor or similar agreements providing interest
rate protection.
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"INVESTMENT" means any investment in any Person, whether by means of
share purchase, capital contribution, loan, time deposit or otherwise.
"IPO" means the closing of a Person's initial public offering of its
shares under the Securities Act.
"ISSUER" is defined in the preamble to this Agreement.
"KEY-PERSON LIFE INSURANCE POLICY" is defined in SECTION 6.05(e).
"LIEN" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind, or any other type of
preferential arrangement that has the practical effect of creating a security
interest, in respect of such asset. For the purposes of this Agreement and the
other Note Documents, the Parent, the Issuer or any Subsidiary shall be deemed
to own subject to a Lien any asset which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, Capital
Lease or other title retention agreement relating to such asset.
"LINES OF BUSINESS" means any of the delivery and arranging for
delivery of behavioral health care services and substance abuse services and the
management and/or administration of the delivery of such behavioral health care
services and substance abuse services.
"MAJOR CASUALTY PROCEEDS" means (i) the aggregate insurance proceeds
received in connection with one or more related events by any Obligor under any
Property Insurance Policy, or (ii) any award or other compensation with respect
to any condemnation of property (or any transfer or disposition of property in
lieu of condemnation) received by any Obligor, if the amount of such aggregate
insurance proceeds or award or other compensation exceeds $100,000.
"MATERIAL" means material in relation to the business, operations,
financial condition, assets, properties, or prospects of the Parent and its
Subsidiaries taken as a whole.
"MATERIAL ADVERSE EFFECT" means, with respect to any event, act,
condition or occurrence of whatever nature (including any adverse determination
in any litigation, arbitration, or governmental investigation or proceeding),
whether singly or in conjunction with any other event or events, act or acts,
condition or conditions, occurrence or occurrences, whether or not related, a
material adverse change in, or a material adverse effect upon, any of (a) the
financial condition, operations, business, properties or prospects of the Parent
and its Subsidiaries, taken as a whole, (b) the rights and remedies of the
Collateral Agent or the Holders under the Note Documents, or the ability of the
Issuer, the Parent or any other Obligor to perform its obligations under the
Note Documents to which it is a party, as applicable, (c) the legality, validity
or enforceability of any Note Document, or (d) the existence, perfection or
priority of any security interest granted in the Note Documents or the value of
the Collateral (including its value to the Collateral Agent and the Holders as
security for the Obligations).
"MATERIAL AGREEMENT" is defined in SECTION 5.01(d)(ii).
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"MAXIMUM SENIOR DEBT AMOUNT" has the meaning set forth in the
Intercreditor Agreement.
"MEDICAID" means, collectively, the healthcare assistance program
established by Title XIX of the Social Security Act (42 USC ss.ss.1396 et seq.)
and any statutes succeeding thereto, and all laws, rules, regulations, manuals,
orders, guidelines or requirements pertaining to such program including (a) all
federal statutes (whether set forth in Title XIX of the Social Security Act or
elsewhere) affecting such program; (b) all state statutes and plans for medical
assistance enacted in connection with such program (including any program
operated under a Section 1115 demonstration waiver approved by HCFA) and federal
rules and regulations promulgated in connection with such program; and (c) all
applicable provisions of all rules, regulations, manuals, orders and
administrative, reimbursement, guidelines and requirements of all government
authorities promulgated in connection with such program (whether or not having
the force of law), in each case as the same may be amended, supplemented or
otherwise modified from time to time.
"MEDICARE" means, collectively, the health insurance program for the
aged and disabled established by Title XVIII of the Social Security Act (42 USC
ss.ss.1395 et seq.) and any statutes succeeding thereto, and all laws, rules,
regulations, manuals, orders or guidelines pertaining to such program including
(a) all federal statutes (whether set forth in Title XVIII of the Social
Security Act or elsewhere) affecting such program; and (b) all applicable
provisions of all rules, regulations, manuals, orders and administrative,
reimbursement, guidelines and requirements of all governmental authorities
promulgated in connection with such program (whether or not having the force of
law), in each case as the same may be amended, supplemented or otherwise
modified from time to time.
"MINIMUM RESERVE" means the aggregate of the deposits and cash
amounts established by the Parent or its Subsidiaries in an aggregate amount of
at least $2 million.
"MORTGAGE" means any mortgage, deed of trust, deed to secure debt or
other similar instrument delivered by any Obligor pursuant to SECTION 6.22
hereof, which shall be in such form as may be required by the Collateral Agent
and the Required Holders.
"MULTIEMPLOYER PLAN" means any Plan that is a "multiemployer plan"
(as such term is defined in section 4001(a)(3) of ERISA).
"NET CASH PROCEEDS" means, with respect to any transaction, an
amount equal to the cash proceeds received by an Obligor from or in respect of
such transaction (including any cash proceeds received as income or other
proceeds of any non-cash proceeds of such transaction), less (x) any expenses
(including commissions) reasonably incurred by such Person in respect of such
transaction, and (y) in the case of an Asset Sale, the amount of any
Indebtedness secured by a Lien on the related asset and discharged from the
proceeds of such Asset Sale and any taxes paid or payable by such Person (as
estimated by the chief financial officer of the Issuer) in respect of such Asset
Sale.
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"NET WORKING INVESTMENT" means, at any date, Consolidated Adjusted
Current Assets minus Consolidated Current Liabilities, all determined at such
date.
"NOMINEE AGREEMENT ASSIGNMENTS" means those certain Nominee
Agreement Assignments of even date herewith between the Issuer and the
Collateral Agent regarding Psych Systems of Westchester, Inc., Psych Systems of
Long Island, Inc., and Psych Systems of Manhattan, Inc., respectively, as the
same may be amended, supplemented or otherwise modified from time to time.
"NOTE DOCUMENTS" means, collectively, this Agreement, the Notes, the
Registration Rights Agreement, the Security Documents, the Contribution
Agreement, the Intercreditor Agreement and all other documents, agreements,
instruments, opinions and certificates now or hereafter delivered in connection
herewith or therewith.
"NOTES" is defined in the recitals to this Agreement.
"OBLIGATIONS" means all present and future obligations and
liabilities of any Obligor arising under or in connection with any Note
Document, due or to become due to any Holder or any other Person entitled to
indemnification pursuant to SECTION 9.13, or (to the extent permitted by the
Note Documents) any of their respective successors, transferees or assigns, and
shall include, without limitation, (i) unpaid principal and interest under the
Notes (including interest accruing on or after the occurrence of an Insolvency
Event, whether or not allowed as a claim in any proceeding relating to the
Insolvency Event), (ii) fees, expenses and indemnification and expense
reimbursement obligations arising under any of the Note Documents, and (iii) the
obligations of the Guarantors arising under ARTICLE III of this Agreement.
"OBLIGOR" means the Issuer or any Guarantor and "OBLIGORS" means the
Issuer and all of the Guarantors.
"OFFICER'S CERTIFICATE" means a certificate of a Senior Financial
Officer or of any other officer of any Obligor whose responsibilities extend to
the subject matter of such certificate.
"PBGC" means the Pension Benefit Guaranty Corporation referred to
and defined in ERISA or any successor thereto.
"PERMITTED CONTEST" means a contest maintained in good faith by
appropriate proceedings promptly instituted and diligently conducted and with
respect to which such reserve or other appropriate provision, if any, as shall
be required in conformity with GAAP shall have been made; provided that
compliance with the obligation that is the subject of such contest is
effectively stayed during such challenge.
"PERMITTED LIENS" means Liens permitted pursuant to SECTION 7.06.
"PERMITTED REFINANCING" has the meaning set forth in the
Intercreditor Agreement.
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"PERMITTED REFINANCING SENIOR DEBT DOCUMENTS" means any financing
documentation executed in connection with a Permitted Refinancing, as such
financing documentation may be amended, supplemented or otherwise modified from
time to time in compliance with this Agreement and the Intercreditor Agreement.
"PERSON" means and includes natural persons, corporations, limited
liability companies, limited partnerships, limited liability partnerships,
general partnerships, joint stock companies, joint ventures, associations,
companies, trusts, banks, trust companies, land trusts, business trusts or other
organizations, whether or not legal entities, and governments and agencies and
political subdivisions thereof and their respective permitted successors and
assigns (or in the case of a governmental person, the successor functional
equivalent of such Person).
"PHC PURCHASE AGREEMENT" means that certain Stock Purchase
Agreement, dated as of September 26, 1997, between APS and Principal Health
Care, Inc., an Iowa corporation, and assigned to Coventry Health Care.
"PHC SERVICE AGREEMENT" means that certain Behavioral Health
Services Agreement, dated as of September 26, 1997, by and among the Parent,
APS, Principal Health Care, Inc., an Iowa corporation ("PHC"), and each of PHC's
health maintenance organization subsidiaries party thereto, as assigned to
Coventry Health Care.
"PLAN" means an "employee benefit plan" (as defined in section 3(3)
of ERISA) that is or, within the preceding five years, has been established or
maintained, or to which contributions are or, within the preceding five years,
have been made or required to be made, by any Obligor or any ERISA Affiliate or
with respect to which any Obligor or any ERISA Affiliate may have any liability.
"PLEDGED SECURITIES" means all of the issued and outstanding Equity
Interests of the Subsidiaries and of the Issuer.
"PLEDGORS" means those Obligors identified on SCHEDULE 5.01(f)(ii).
"POST CLOSING UNDERTAKING" means that certain Post Closing
Undertaking of even date herewith among the Issuer, the Parent, each of the
Subsidiaries of the Parent, the Collateral Agent and the Purchaser.
"PREFERRED STOCK" means any class of capital stock of a corporation
that is preferred over any other class of capital stock of such corporation as
to the payment of dividends or the payment of any amount upon liquidation or
dissolution of such corporation.
"PREPAYMENT TRANSACTION" is defined in SECTION 2.06.
"PRIORITY" means Priority, Inc., a Michigan corporation.
"PRIVATE EQUITY ISSUANCE" means any private issuance and sale of
Common Stock or other equity securities.
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"PROPERTY" or "PROPERTIES" means, unless otherwise specifically
limited, real or personal property of any kind, tangible or intangible, xxxxxx
or inchoate.
"PROPERTY INSURANCE POLICY" means any insurance policy maintained by
any Obligor covering losses with respect to tangible real or personal property
or improvements or losses from business interruption.
"PURCHASERS" OR "PURCHASER" means collectively, as of the Closing
Date, each Person a signatory hereto as a Purchaser and, at any other given
time, each Person which is a party hereto as a Purchaser, and any Person to
which a Purchaser has assigned some or all of its rights to purchase the Notes
and the Shares hereunder.
"REAL PROPERTY" shall have the meaning assigned to it in SECTION
6.22.
"REGISTRATION RIGHTS AGREEMENT" means the Amended and Restated
Registration and Shareholders Rights Agreement of even date herewith among the
Parent, the Issuer and the Purchaser with respect to the Shares, as the same may
be amended, supplemented or otherwise modified from time to time.
"RELATED PERSON" means any Affiliate of the Parent, the Issuer or
any officer, employee, director or stockholder of the Parent, the Issuer or any
Affiliate, or a relative of any of the foregoing.
"REQUIRED HOLDERS" means, at any time, the Holders of more than
fifty percent in principal amount of the Notes at the time outstanding
(exclusive of Notes then owned by the Issuer or any of its Related Persons).
"REQUIREMENT OF LAW" means (a) the Governing Documents of a Person,
(b) any law, treaty, rule, regulation, order or determination of an arbitrator,
court or other Governmental Authority or (c) any franchise, license, lease,
permit, certificate, authorization, qualification, easement, right of way, right
or approval binding on a Person or any of its property.
"RESPONSIBLE OFFICER" means any Senior Financial Officer and any
other officer of any Obligor with responsibility for the administration of the
relevant portion of this Agreement or any Note Document.
"RESTRICTED PAYMENT" means as to any Person (i) any dividend or
other distribution on any shares of such Person's capital stock (except
dividends payable solely in shares of its capital stock of the same class), (ii)
any payment on account of the principal of or premium, if any, on any
Indebtedness convertible into shares of such Person's capital stock, or on any
Indebtedness subordinated in right of payment to the Obligations, or (iii) any
payment on account of the purchase, redemption, retirement or acquisition of (a)
any shares of such Person's capital stock, or (b) any option, warrant or other
right to acquire shares of such Person's capital stock. In the case of the
Issuer and its Subsidiaries, Restricted Payment shall also include any payment
or distribution to or for the benefit of the Parent.
"SECURITIES" means the Notes, the Shares and the Warrant Shares.
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"SECURITIES ACT" means the Securities Act of 1933, as amended from
time to time, and the rules and regulations promulgated thereunder.
"SECURITY DOCUMENTS" has the meaning set forth in the Intercreditor
Agreement.
"SEGREGATED ACCOUNT AGREEMENT" has the meaning set forth in the
Intercreditor Agreement.
"SENIOR DEBT" has the meaning set forth in the Intercreditor
Agreement.
"SENIOR DEBT DOCUMENTS" means the Existing Loan Documents and, after
the consummation of any Permitted Refinancing, the Permitted Refinancing Senior
Debt Documents.
"SENIOR DEBT TERMINATION DATE" has the meaning ascribed to
"Termination Date" in the Intercreditor Agreement.
"SENIOR FINANCIAL OFFICER" means, with respect to any Obligor, the
chief financial officer, principal accounting officer, treasurer or comptroller
of such Obligor.
"SENIOR LENDER" means the Existing Lender and any other Persons who
now or hereafter become parties as lenders to any of the Senior Debt Documents.
"SENIOR MANAGEMENT" means the President and/or the Chief Executive
Officer or such other officer as shall hereafter perform substantially the same
functions as the foregoing.
"SERIES A PREFERRED STOCK" means the Series A Preferred Stock of the
Issuer, as set forth in the Issuer's amended articles of incorporation.
"SERVICE AGREEMENT" means an agreement pursuant to which any Obligor
agrees to provide any health care management service.
"SHARES" is defined in the recitals to this Agreement.
"SUBSIDIARY" means, with respect to any Person, any corporation or
other entity of which securities or other ownership interests having ordinary
voting power to elect a majority of the board of directors or other persons
performing similar functions are at the time directly or indirectly owned by
such Person. Unless otherwise specified or required by the context herein, the
term Subsidiary shall be deemed to refer to a Subsidiary of the Parent.
"SUBSIDIARY GUARANTOR" means any Guarantor (other than the Parent).
"TEMPORARY CASH INVESTMENT" means any Investment in (i) direct
obligations of the United States or any agency thereof, or obligations
guaranteed by the United States or any agency thereof, (ii) commercial paper
rated at least A-1 by Standard & Poor's Rating Group and P-1 by Xxxxx'x
Investors Service, Inc., (iii) time deposits with, including certificates of
deposit issued by, any office located in the United States of any bank or trust
company which is
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organized under the laws of the United States or any State thereof and has
capital, surplus and undivided profits aggregating at least $500,000,000 and
which issues (or the parent of which issues) certificates of deposit or
commercial paper with a rating described in clause (ii) above, (iv) repurchase
agreements with respect to securities described in clause (i) above entered into
with an office of a bank or trust company meeting the criteria specified in
clause (iii) above, provided in each case that such Investment matures within
one year from the date of acquisition thereof by the Issuer or any of its
Subsidiaries or (v) any money market or mutual fund that invests only in the
foregoing and manager of which and the liquidity of which is reasonably
satisfactory to the Holders.
"TOTAL DEBT SERVICE" means, for any period, the sum of (i) the
aggregate interest charges incurred by the Parent and its Consolidated
Subsidiaries for such period, whether expensed or capitalized, including the
portion of any obligation under Capital Leases allocable to interest expense in
accordance with GAAP but excluding the portion of any debt discount or premium
and the expenses of any debt issuance that shall be amortized in such period,
and (ii) the aggregate amount of all scheduled principal payments on all
Indebtedness, including the portion of any payments under Capital Leases that is
allocable to principal.
"UCC" means the Uniform Commercial Code as in effect in the State of
New York on the date of execution of this Agreement.
"UNPAID PRINCIPAL AMOUNT" means, as to the Notes in the aggregate,
$7,500,000 less the aggregate amount of all payments of principal made by any
Obligor on the Notes (excluding payments made as premium and payments made as
interest).
"WARRANTS" is defined in SECTION 5.01(c).
"WARRANT SHARES" is defined in the recitals to this Agreement
SECTION 1.02. COMPUTATION OF TIME PERIODS. In this Agreement, in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding". Periods of days referred to in this Agreement shall be
counted in calendar days unless Business Days are expressly prescribed. Any
period determined hereunder by reference to a month or months or year or years
shall end on the day in the relevant calendar month in the relevant year, if
applicable, immediately preceding the date numerically corresponding to the
first day of such period, PROVIDED, that if such period commences on the last
day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month during which such period is to end),
such period shall, unless otherwise expressly required by the other provisions
of this Agreement, end on the last day of the calendar month.
SECTION 1.03. ACCOUNTING TERMS AND DETERMINATIONS. Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with GAAP
(except for changes concurred in by the Issuer's independent public
accountants), with the most recent audited consolidated financial
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statements of the Parent and its Consolidated Subsidiaries delivered to the
Holders (subject, in the case of interim financial statements, to the absence of
footnotes and to changes resulting from audit and normal year-end adjustments);
PROVIDED that, if: (i) the Parent notifies the Holders that the Parent wishes to
amend any covenant in Article VII or the definition of "Excess Cash Flow" or any
related definition to eliminate the effect of any change in GAAP on the
operation of such covenant or the determination of "Excess Cash Flow", or (ii)
the Collateral Agent notifies the Parent that the Required Holders wish to amend
Article VII or the definition of "Excess Cash Flow" or any related definition
for such purpose, then the Parent's compliance with such covenant or "Excess
Cash Flow", as the case may be, shall be determined on the basis of GAAP in
effect immediately before the relevant change in GAAP became effective, until
either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Parent and the Required Holders.
SECTION 1.04. REFERENCES TO THIS AGREEMENT. The words "hereof",
"herein", "hereunder" and similar terms when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement, and article, section, subsection, clause, schedule and exhibit
references herein are references to articles, sections, subsections, clauses,
schedules and exhibits to this Agreement unless otherwise specified.
SECTION 1.05. MISCELLANEOUS TERMS. All terms defined in this
Agreement in the singular shall have comparable meanings when used in the
plural, and VICE VERSA, unless otherwise specified. The term "including" is by
way of example and not limitation. A Default or an Event of Default shall
"continue" or be "continuing" until such Default or Event of Default has been
waived in accordance with SECTION 9.03. A reference to a statute, ordinance,
code or other Requirement of Law includes rules, regulations or guidance
promulgated thereunder and consolidations, amendments, re-enactments or
replacements of, or successors to, any of them. A reference to a Person includes
a reference to the Person's executors, administrators, successors, substitutes
and assigns.
ARTICLE II.
THE NOTES
SECTION 2.01. SALE AND PURCHASE OF NOTES. Subject to the terms and
conditions of this Agreement, at the Closing provided for in SECTION 4.01, the
Issuer will issue and sell to the Purchaser and the Purchaser agrees to purchase
from the Parent the Shares and from the Issuer the Notes in the principal amount
of $7,500,000 for the aggregate consideration of $7,115,142.86, with the
$384,857.14 portion constituting original issue discount fully earned upon
funding.
SECTION 2.02. REGISTRATION OF NOTES. The Issuer hereby acknowledges
and makes the Notes a registered obligation for United States withholding tax
purposes. The Issuer shall be the registrar for the Notes (the "REGISTRAR") with
full power of substitution. In the event the Registrar becomes unable or
unwilling to act as registrar under this Agreement, the Issuer shall reasonably
designate a successor Registrar. Each Holder who is a foreign person, by its
acceptance of its Note(s), hereby agrees to provide the Issuer with a completed
Internal Revenue
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Service Form W-8 (Certificate of Foreign Status) or a substantially similar form
for such Holder, participants or other affiliates who are holders of beneficial
interests in the Notes. Notwithstanding any contrary provision contained in this
Agreement or any of the other Note Documents, neither the Notes nor any
interests therein may be sold, transferred, hypothecated, participated or
assigned to any Person except upon satisfaction of the conditions specified in
this SECTION 2.02. Each Holder, by its acceptance of its Note(s), agrees to be
bound by the provisions of this SECTION 2.02 and to indemnify and hold harmless
the Registrar against any and all loss or liability arising from the disposition
by such Holder of the Notes or any interest therein in violation of this SECTION
2.02. The Registrar shall keep at its principal executive office (or an office
or agency designated by it by notice to the last registered Holder) a ledger, in
which, subject to such reasonable regulations as it may prescribe, but at its
expense (except as specified below), it shall provide for the registration and
transfer of the Notes. No sale, transfer, hypothecation, participation or
assignment of any Note or any interest therein shall be effective for any
purpose until it shall be registered on the books of the Registrar to be
maintained for such purpose. The Registrar shall record the transfer of the
Notes on the books maintained for this purpose upon receipt by the Registrar at
the office or agency designated by the Registrar of (a) a written assignment of
the Note(s) being assigned (or the applicable interest therein), (b) funds
sufficient to pay any transfer taxes payable upon the making of such transfer as
well as the cost of reviewing the documents presented to the Registrar, and (c)
such evidence of due execution as the Registrar shall reasonably require. The
Registrar shall record the transfer of the Notes on the books maintained for
such purpose at the cost and expense of the assignee.
SECTION 2.03. TRANSFER AND EXCHANGE OF NOTES.
(a) The Holders understand and agree that the Notes have not been
registered under the Securities Act or the securities laws of any state, and
that they may be sold or otherwise disposed of only in one or more transactions
registered under the Securities Act or, where applicable, pursuant to an
exemption from the registration requirements of the Securities Act and, where
applicable, the securities laws of any state. The Holders understand and agree
that each Note or certificate representing the Notes shall bear the following
legends:
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE
EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH LAWS
THIS NOTE IS SUBJECT TO A SUBORDINATION AND INTERCREDITOR AGREEMENT,
DATED AS OF SEPTEMBER 15, 2000 (THE "INTERCREDITOR AGREEMENT"),
AMONG CANPARTNERS INVESTMENTS IV, LLC, PSYCH SYSTEMS HOLDINGS, INC.,
AMERICAN PSYCH SYSTEMS HOLDINGS, INC., AND BANK OF AMERICA, N.A.
THIS NOTE IS SUBORDINATED IN RIGHT AND TIME OF PAYMENT TO THE PRIOR
PAYMENT IN FULL IN CASH OF
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ALL SENIOR DEBT (AS DEFINED THEREIN) IN ACCORDANCE WITH, AND TO THE
EXTENT SPECIFIED IN, SUCH INTERCREDITOR AGREEMENT AND EACH HOLDER OF
THIS NOTE, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND
BY THE TERMS AND PROVISIONS OF SUCH INTERCREDITOR AGREEMENT. THIS
NOTE IS ALSO SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN
THE INTERCREDITOR AGREEMENT.
(b) Subject to the requirements of clause (a) above, upon surrender
of any Note at the principal executive office of the Issuer for registration of
transfer or exchange (and in the case of a surrender for registration of
transfer, duly endorsed or accompanied by a written instrument of transfer
reasonably acceptable to the Issuer, duly executed by the registered Holder of
such Note or its attorney duly authorized in writing and accompanied by the
address for notices of each transferee of such Note or part thereof), the Issuer
shall execute and deliver, at the Issuer's expense (except as provided below),
one or more new Notes (as requested by the Holder thereof) in exchange therefor,
in an aggregate principal amount equal to the unpaid principal amount of the
surrendered Note. Each such new Note shall be payable to such Person as such
Holder may request and shall be substantially in the form of EXHIBIT A. Each
such new Note shall be dated and bear interest from the date to which interest
shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have been paid thereon. The Issuer may
require payment of a sum sufficient to cover any stamp tax or governmental
charge imposed in respect of any such transfer of Notes. Notes shall not be
transferred in denominations of less than $100,000, PROVIDED that if necessary
to enable the registration of transfer by a Holder of its entire holding of
Notes, one Note may be in a denomination of less than $100,000. Any transferee,
by its acceptance of a Note registered in its name (or the name of its nominee),
shall be deemed to have made the representation set forth in SECTION 5.02.
SECTION 2.04. REPLACEMENT OF NOTES. Upon receipt by the Issuer of
notice from any Holder of the ownership of and the loss, theft, destruction or
mutilation of any Note held by such Holder, and
(a) in the case of loss, theft or destruction, a lost note indemnity
agreement reasonably satisfactory to the Issuer and the Holder, or
(b) in the case of mutilation, upon surrender and cancellation
thereof and, to the extent reasonably necessary, a lost note indemnity agreement
reasonably satisfactory to the Issuer and the Holder,
the Issuer at its own expense shall execute and deliver, in lieu thereof, a new
Note, dated and bearing interest from the date to which interest shall have been
paid on such lost, stolen, destroyed or mutilated Note or dated the date of such
lost, stolen, destroyed or mutilated Note if no interest shall have been paid
thereon.
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SECTION 2.05. PAYMENTS ON NOTES.
(a) PLACE OF PAYMENT; SURRENDER. Payments of principal, interest and
other amounts becoming due and payable on the Notes or under the Note Documents
shall be made by the method and to the address or account specified with respect
to any Holder by such method and at such address or account as such Holder shall
have from time to time specified to each Obligor in writing for such purpose,
without the presentation or surrender of such Note or the making of any notation
thereon, except that upon written request of any Obligor made concurrently with
or promptly after payment or prepayment in full of any Note, the Holder of such
Note shall surrender it for cancellation, reasonably promptly after any such
request, to the Obligors at the Issuer's principal executive office. Prior to
any sale or other disposition of any Note by any Holder or its nominee, such
Holder will, at its election, either endorse thereon the amount of principal
paid thereon and the last date to which interest has been paid thereon or
surrender such Note to the Issuer in exchange for a new Note or Notes pursuant
to SECTION 2.03.
(b) PAYMENTS DUE ON NON-BUSINESS DAYS. Anything in this Agreement or
the Notes to the contrary notwithstanding, any payment of principal of or
interest on any Note that is due on a date other than a Business Day shall be
made on the next succeeding Business Day without including the additional days
elapsed in the computation of the interest payable on such next succeeding
Business Day.
SECTION 2.06. MANDATORY OFFERS TO REPURCHASE THE NOTES; MANDATORY
PREPAYMENTS.
(a) Within five Business Days after the occurrence of: (a) a Change
of Control or (b) the Issuer's receipt of Extraordinary Proceeds ((a) and (b)
being hereafter collectively referred to as a "PREPAYMENT TRANSACTION"), the
Issuer shall give written notice of such Prepayment Transaction to each Holder,
which notice shall state the date of such Prepayment Transaction and shall
describe such Prepayment Transaction in reasonable detail. The notice shall
include an offer to prepay: (i) all of the Notes in the event of a Change of
Control, or (ii) such of the Notes as may be purchased with 100% of the
Extraordinary Proceeds after the deduction of proceeds applied by the Issuer to
the Senior Debt in accordance with the Senior Debt Documents and SECTION 6.16
hereof (a "PREPAYMENT OFFER"). The date specified for such purchase (the
"PREPAYMENT DATE") shall be (i) if the prepayment is triggered by a Change of
Control or if the Senior Debt Termination Date has occurred, then no sooner than
20 nor later than 30 days after the Prepayment Transaction, or (ii) if the
Senior Debt Termination Date has not occurred, promptly at such time that the
Senior Lender permits the prepayment or at such time as the Senior Debt
Termination Date occurs, the date of which the Issuer promptly shall notify the
Holders. Each Holder shall have the option to sell to the Issuer, and the Issuer
hereby agrees to repurchase as provided herein, such of the Notes then owned by
such Holder as may be purchased on the terms described herein.
Such option may be exercised by each Holder by written notice to the
Issuer given not later than 10 days prior to the Prepayment Date, specifying the
aggregate principal amount of Notes which such Holder intends to sell to the
Issuer. On or before the Prepayment Date, each Holder which has accepted the
Issuer's offer to repurchase the Notes shall deliver to the Issuer
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the Notes to be repurchased hereunder on such date against payment by the Issuer
in full in immediately available funds of the purchase price therefor specified
herein; PROVIDED that, notwithstanding its exercise of the option herein
provided, any such Holder may at any time prior to the Prepayment Date waive in
whole or in part, by written notice to the Issuer, its right to sell to the
Issuer the Notes to be repurchased. In the event of the Issuer's receipt of
Extraordinary Proceeds, promptly following the Prepayment Date, the Issuer shall
deliver to each Holder electing to accept the Prepayment Offer a new Note equal
in principal amount to any unpurchased portion of the Note surrendered by such
Holder. To the extent the Prepayment Offer is not fully subscribed to by the
Holders of the Notes, first such tendered Notes shall be paid for in full to the
extent possible with the available Extraordinary Proceeds and then any remaining
Extraordinary Proceeds may be retained by the Guarantor or Issuer.
(b) PREPAYMENTS FROM EXCESS CASH FLOW. On the earlier of (x) the
date audited financial statements for each Fiscal Year are delivered in
accordance with SECTION 6.01, and (y) ninety (90) days following the last day of
each of its Fiscal Years, commencing with the Fiscal Year ended December 31,
2000, Issuer shall prepay
(i) until the earlier of (a) March 15, 2001, and (b) the date
that Parent has delivered an Officer's Certificate certifying that the Parent
and its Consolidated Subsidiaries have achieved a Current Ratio of 1.1 to 1 (the
"EXCESS CASH FLOW ADJUSTMENT DATE"), Notes in an amount equal to 60% of the
Excess Cash Flow for such Fiscal Year if at such time the Senior Debt
Termination Date has occurred;
(ii) after the Excess Cash Flow Adjustment Date, Notes in an
amount equal to 87.5% of the Excess Cash Flow for such Fiscal Year if at such
time the Senior Debt Termination Date has occurred;
(iii) until the Excess Cash Flow Adjustment Date, the
principal amount of the term loan portion of the Senior Debt in an amount equal
to 60% of the Excess Cash Flow for such Fiscal Year if at such time the Senior
Debt Termination Date has not yet occurred; and
(iv) after the Excess Cash Flow Adjustment Date, the principal
amount of the term loan portion of the Senior Debt in an amount equal to 87.5%
of the Excess Cash Flow for such Fiscal Year if at such time the Senior Debt
Termination Date has not yet occurred.
Any calculation pursuant to this SECTION 2.06(e) shall be based on the
audited financial statements for Parent.
(c) PREPAYMENTS FROM KEY-PERSON LIFE INSURANCE PROCEEDS. Promptly
upon receipt by the Issuer or the Parent of any payment under the Key-Person
Life Insurance Policy, the Issuer shall prepay the Notes in an amount equal to
the amount of such payment.
SECTION 2.07. OPTIONAL PREPAYMENTS OF THE NOTES.
(a) NOTICE OF PREPAYMENT; PREPAYMENT AMOUNT. The Issuer may, at its
option, upon notice provided below, prepay at any time all, or from time to time
any part of, the Notes, at a price determined in accordance with SECTION
2.07(C). The Issuer will give each Holder of
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Notes written notice of each optional prepayment under this SECTION 2.07 not
less than 10 days and not more than 60 days prior to the date fixed for such
prepayment. Each such notice shall specify such date, the aggregate principal
amount of the Notes to be prepaid on such date, the principal amount of each
Note held by such Holder to be prepaid (determined in accordance with SECTION
2.09), and the interest to be paid on the prepayment date with respect to such
principal amount being prepaid.
(b) MATURITY; SURRENDER, ETC. In the case of each prepayment of
Notes pursuant to this SECTION 2.07, the principal amount of each Note to be
prepaid shall mature and become due and payable on the date fixed for such
prepayment, together with interest on such principal amount accrued to such
date. From and after such date, unless the Issuer shall fail to pay such
principal amount when so due and payable, together with the interest thereon as
aforesaid, interest on such principal amount shall cease to accrue. Any Note
paid or prepaid in full shall be surrendered to the Issuer, for the benefit of
the Issuer, and canceled and shall not be reissued, and no Note shall be issued
in lieu of any prepaid principal amount of any Note.
(c) OPTIONAL PREPAYMENT PURCHASE PRICE. If any optional prepayment
under SECTION 2.07 occurs:
(i) before the first anniversary of the Closing Date, then the
purchase price shall be 105% of the Unpaid Principal Amount;
(ii) on or after the first anniversary of the Closing Date and
before the second anniversary of the Closing date, then the purchase price shall
be 102.50% of the Unpaid Principal Amount;
(iii) on or after the second anniversary of the Closing Date,
then the purchase price shall be 100% of the Unpaid Principal Amount; and
in all cases, plus any unpaid and accrued interest thereon.
SECTION 2.08. PURCHASES OF NOTES. The Obligors will not and will not
permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly
or indirectly, any of the outstanding Notes except upon the payment or
prepayment of the Notes in accordance with the terms of this Agreement and the
Notes (including any offer or right to purchase the Notes pursuant to SECTIONS
2.06 OR 2.07). Each Obligor will promptly cancel all Notes acquired by it or any
Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to
any provision of this Agreement or otherwise and no Notes may be issued in
substitution or exchange for any such Notes (except to the limited extent set
forth in SECTION 2.06).
SECTION 2.09. ALLOCATION OF PARTIAL PREPAYMENTS. In the case of each
partial prepayment of the Notes under SECTION 2.06 OR 2.07, the principal amount
of the Notes to be prepaid shall be allocated among all of the Notes at the time
outstanding in proportion, as nearly as practicable, to the respective unpaid
principal amounts thereof not theretofore called for prepayment, with
adjustments, to the extent practicable, to compensate for any prior payments not
made exactly in such proportion, but so that Notes remaining outstanding after
the prepayment are in the authorized denominations specified in this Agreement.
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ARTICLE III.
GUARANTEE OF NOTES
SECTION 3.01. AGREEMENT OF GUARANTY. In order to induce the
Purchaser to purchase the Notes, the Guarantors hereby jointly and severally
irrevocably and unconditionally guarantee as primary obligors and not merely as
sureties, the due and punctual payment in full of all Obligations when the same
shall become due, whether at stated maturity, by acceleration, demand or
otherwise (including amounts that would become due but for the operation of the
automatic stay under Section 362(a) of the Bankruptcy Code or a stay granted
under Section 105 of the Bankruptcy Code, and including interest accruing on and
after the filing of any petition in bankruptcy or of reorganization of the
obligor whether or not post filing interest is allowed in such proceeding). The
term "Obligations" is used herein in its most comprehensive sense and includes
any and all obligations of Issuer now or hereafter made, incurred or created,
whether absolute or contingent, liquidated or unliquidated, whether due or not
due, and however arising under or in connection with any Note.
SECTION 3.02. GUARANTY IRREVOCABLE. Each Guarantor agrees that its
obligations hereunder are irrevocable, absolute, independent and unconditional
and to the maximum extent permitted by Governing Law, shall not be affected by
any circumstance which constitutes a legal or equitable discharge of a guarantor
or surety other than payment in full of the Obligations. In furtherance of the
foregoing and without limiting the generality thereof, each Guarantor agrees to
the maximum extent permitted by Governing Law, as follows: (a) this Guaranty is
a guaranty of payment when due and not of collectibility; (b) the Holders of
Notes may from time to time, without notice or demand and without affecting the
validity or enforceability of this Guaranty or giving rise to any limitation,
impairment or discharge of any Guarantor's liability hereunder, (i) renew,
extend, accelerate or otherwise change the time, place, manner or terms of
payment of the Obligations, (ii) settle, compromise, release or discharge, or
accept or refuse any offer of performance with respect to, or substitutions for,
the Obligations or any agreement relating thereto and/or subordinate the payment
of the same to the payment of any other obligations, (iii) request and accept
other guaranties of the Obligations and take and hold security for the payment
of this Guaranty or the Obligations, (iv) release, exchange, compromise,
subordinate or modify, with or without consideration, any security for payment
of the Obligations, any other guaranties of the Obligations, or any other
obligation of any Person (including any other Guarantor) with respect to the
Obligations, (v) enforce and apply any security now or hereafter held by or for
the benefit of the Holders of Notes in respect of this Guaranty or the
Obligations and direct the order or manner of sale thereof, or exercise any
other right or remedy that the Holders of the Notes may have against any such
security, as the Holders of the Notes in their discretion may determine
consistent with any applicable security agreement, including foreclosure on any
such security pursuant to one or more judicial or nonjudicial sales, whether or
not every aspect of any such sale is commercially reasonable, and (vi) exercise
any other rights available to any of them under any of the Note Documents, at
law or in equity; and (c) this Guaranty and the obligations of Guarantors
hereunder shall be valid and enforceable and shall not be subject to any
limitation, impairment or discharge for any reason (other than payment in full
of the Obligations), including without limitation the occurrence of any of the
following, whether or not any Guarantor shall have had notice or knowledge of
any of them: (i) any failure to assert or enforce or agreement not to assert or
enforce, or the stay or enjoining, by order of
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court, by operation of law or otherwise, of the exercise or enforcement of, any
claim or demand or any right, power or remedy with respect to the Obligations or
any agreement relating thereto, or with respect to any other guaranty of or
security for the payment of the Obligations, (ii) any waiver, amendment or
modification of, or any consent to departure from, any of the terms or
provisions (including without limitation provisions relating to events of
default) of any of the Note Documents or any agreement or instrument executed
pursuant thereto, or of any other guaranty or security for the Obligations,
(iii) the Obligations, or any agreement relating thereto, at any time being
found to be illegal, invalid or unenforceable in any respect, (iv) the
application of payments received from any source to the payment of indebtedness
other than the Obligations, even though the Holders of the Notes might have
elected to apply such payment to any part or all of the Obligations, (v) any
failure to perfect or continue perfection of a security interest in any
collateral which secures any of the Obligations, (vi) any defenses, set-offs or
counterclaims which any Obligor may allege or assert against any Holder of Notes
in respect of the Obligations, including but not limited to failure of
consideration, breach of warranty, payment, statute of frauds, statute of
limitations, accord and satisfaction and usury, and (vii) any other act or thing
or omission, or delay to do any other act or thing, which may or might in any
manner or to any extent vary the risk of any Guarantor as an obligor in respect
of the Obligations. Notwithstanding the foregoing, the Guaranty herein is also
subject to the terms of the Intercreditor Agreement.
SECTION 3.03. CERTAIN WAIVERS. Each Guarantor hereby waives to the
maximum extent permitted by Governing Law, for the benefit of the Holders: (a)
any right to require the Holders, as a condition of payment or performance by
such Guarantor, to (i) proceed against the Issuer, any other guarantor
(including any other Guarantor) of the Obligations or any other Person, (ii)
proceed against or exhaust any security held from the Issuer, any other
guarantor (including any other Guarantor) of the Obligations or any other
Person, (iii) proceed against or have resort to any balance of any deposit
account or credit on the books of any of the Holders in favor of the Issuer or
any other Person, or (iv) pursue any other remedy in the power of the Holders
whatsoever; (b) any defense arising by reason of the incapacity, lack of
authority or any disability or other defense of the Issuer including, without
limitation, any defense based on or arising out of the lack of validity or the
unenforceability of the Obligations or any agreement or instrument relating
thereto or by reason of the cessation of the liability of the Issuer from any
cause other than payment in full of the Obligations; (c) any defense based upon
any statute or rule of law which provides that the obligation of a surety must
be neither larger in amount nor in other respects more burdensome than that of
the principal; (d) any defense based upon the Holders' errors or omissions in
the administration of the Obligations, except behavior which amounts to bad
faith; (e) (i) any principles or provisions of law, statutory or otherwise,
which are or might be in conflict with the terms of this Guaranty and any legal
or equitable discharge of such Guarantor's obligations hereunder, (ii) the
benefit of any statute of limitations affecting such Guarantor's liability
hereunder or the enforcement hereof, (iii) any rights to set-offs, recoupments
and counterclaims, and (iv) promptness, diligence and any requirement that the
Holders protect, secure, perfect or insure any security interest or lien or any
property subject thereto; (f) notices, demands, presentments, protests, notices
of protest, notices of dishonor and notices of any action or inaction, including
acceptance of this Guaranty, notices of default under this Agreement or the Note
or any agreement or instrument related thereto, notices
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of any renewal, extension or modification of the Obligations or any agreement
related thereto, notices of any extension of credit to the Issuer and notices of
any of the matters referred to in the preceding paragraph and any right to
consent to any thereof; and (g) any defenses or benefits that may be derived
from or afforded by law which limit the liability of or exonerate guarantors or
sureties, or which may conflict with the terms of this Guaranty.
SECTION 3.04. CERTAIN CALIFORNIA LAW WAIVERS. As used in this
SECTION 3.04, any reference to "the principal" includes the Issuer, and any
reference to "the creditor" includes the Holders of Notes. In accordance with
Section 2856 of the California Civil Code (if the same shall be found to be
applicable notwithstanding SECTION 9.12): (i) each Guarantor waives any and all
rights and defenses available to such Guarantor by reason of Sections 2787 to
2855, inclusive, 2899 and 3433 of the California Civil Code, including without
limitation any and all rights or defenses such Guarantor may have by reason of
protection afforded to the principal with respect to any of the Obligations, or
to any other guarantor (including any other Guarantor) of any of the Obligations
with respect to any of such guarantor's obligations under its guaranty, in
either case pursuant to the anti-deficiency or other laws of the State of
California limiting or discharging the principal's indebtedness or such
guarantor's obligations, including without limitation Section 580a, 580b, 580d,
or 726 of the California Code of Civil Procedure; and (ii) each Guarantor waives
all rights and defenses arising out of an election of remedies by the creditor,
even though that election of remedies, such as a nonjudicial foreclosure with
respect to security for any Obligation, has destroyed such Guarantor's rights of
subrogation and reimbursement against the principal by the operation of Section
580d of the California Code of Civil Procedure or otherwise; and even though
that election of remedies by the creditor, such as nonjudicial foreclosure with
respect to security for an obligation of any other guarantor of any of the
Obligations, has destroyed such Guarantor's rights of contribution against such
other guarantor. No other provision of this Guaranty shall be construed as
limiting the generality of any of the covenants and waivers set forth in this
paragraph. As provided in SECTION 9.12 below, this Guaranty shall be governed
by, and shall be construed and enforced in accordance with, the internal laws of
the State of New York, without regard to conflicts of laws principles. This
SECTION 3.04 is included solely out of an abundance of caution, and shall not be
construed to mean that any of the above-referenced provisions of California law
are in any way applicable to this Guaranty or to any of the Obligations.
SECTION 3.05. LIMITATIONS ON SUBROGATION. Until the Obligations
shall have been paid in full, each Guarantor shall withhold exercise of (a) any
claim, right or remedy, direct or indirect, that such Guarantor now has or may
hereafter have against the Issuer or any of its assets in connection with this
Guaranty or the performance by such Guarantor of its obligations hereunder, in
each case whether such claim, right or remedy arises in equity, under contract,
by statute (including without limitation under California Civil Code Section
2847, 2848 or 2849 or similar statutes of other states), under common law or
otherwise and including without limitation (i) any right of subrogation,
reimbursement or indemnification that such Guarantor now has or may hereafter
have against the Issuer, (ii) any right to enforce, or to participate in, any
claim, right or remedy that any Holder of Notes now has or may hereafter have
against the Issuer, and (iii) any benefit of, and any right to participate in,
any collateral or security now or hereafter held by or for the benefit of the
Holders of Notes, and (b) any right of contribution such Guarantor may have
against any other guarantor (including any other Guarantor) of any of the
Obligations. Each Guarantor further agrees that, to the extent the agreement to
withhold the exercise of its
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rights of subrogation, reimbursement, indemnification and contribution as set
forth herein is found by a court of competent jurisdiction to be void or
voidable for any reason, any rights of subrogation, reimbursement or
indemnification such Guarantor may have against the Issuer or against any
collateral or security, and any rights of contribution such Guarantor may have
against any such other guarantor, shall be junior and subordinate to any rights
the Holders of Notes may have against the Issuer, to all right, title and
interest the Holders of Notes may have in any such collateral or security, and
to any right the Holders of Notes may have against such other guarantor.
SECTION 3.06. LIMIT ON AMOUNT OF GUARANTY. Each Guarantor confirms
that it is the intention of all such parties that the guarantee by such
Guarantor pursuant to this Guaranty does not constitute a fraudulent transfer or
conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or
state law. To effectuate the foregoing intention, each Guarantor hereby
irrevocably agrees that the obligations of such Guarantor under this Guaranty
shall be limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Guarantor on the date of determination
and after giving effect to any collections from or payments made by or on behalf
of any other Guarantor in respect of the obligations of such other Guarantor
under its Guaranty, result in the obligations of such Guarantor under this
Guaranty not constituting such fraudulent transfer or conveyance.
SECTION 3.07. RELEASE OF SUBSIDIARY GUARANTORS UNDER CERTAIN
CIRCUMSTANCES. Upon the sale or other disposition of all or substantially all of
the assets of any Subsidiary Guarantor, by way of merger, consolidation or
otherwise, or a sale or other disposition of all of the Capital Stock of any
Subsidiary Guarantor, to an entity which is not a Subsidiary Guarantor and which
sale or disposition is in compliance with SECTION 7.02 hereof, then such
Subsidiary Guarantor (in the event of a sale or other disposition, by way of a
merger, consolidation or otherwise, of all of the Capital Stock of such
Subsidiary Guarantor) or the corporation acquiring the property (in the event of
a sale or other disposition of all or substantially all of the assets of such
Subsidiary Guarantor) shall be released from and relieved of any obligations
under this Guaranty without any further action required on the part of the
Holders of the Notes; PROVIDED, HOWEVER, that any such termination shall occur
only to the extent that all obligations of such Subsidiary Guarantor under all
of its guarantees of, and under all of its pledges of assets or other security
interests which secure, any other Indebtedness of the Issuer remaining
outstanding as a liability of the Issuer following such sale or disposition,
shall also terminate upon such release, sale or transfer; and PROVIDED, FURTHER,
that if such event constitutes an Asset Sale, the Net Cash Proceeds of such an
Asset Sale will be applied in accordance with SECTION 2.08 of this Agreement.
The Issuer shall deliver an appropriate instrument evidencing such release to
the Holders of the Notes. Any Subsidiary Guarantor not so released remains
liable for the full amount of all Obligations.
SECTION 3.08. SUBORDINATION OF CERTAIN INDEBTEDNESS. Any
Indebtedness of the Issuer now or hereafter held by any Guarantor is hereby
subordinated in right of payment to the Obligations, and any such indebtedness
of the Issuer to such Guarantor collected or received by such Guarantor after an
Event of Default has occurred and is continuing shall be held in trust for the
Holders of the Notes and shall forthwith be paid over to the Holders of the
Notes to be
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credited and applied against the Obligations.
SECTION 3.09. GUARANTORS' INDEMNITY. The Guarantors jointly and
severally agree to pay, or cause to be paid, on demand, and to save the Holders
of Notes harmless against liability for, any and all costs and expenses
(including fees and disbursements of counsel and allocated costs of internal
counsel) incurred or expended by the Holders of Notes in connection with the
enforcement of or preservation of any rights under this ARTICLE III.
SECTION 3.10. NO DUTY OF INQUIRY. It is not necessary for the
Holders of Notes to inquire into the capacity or powers of any Guarantor or the
Issuer or the officers, directors or any agents acting or purporting to act on
behalf of any of them.
SECTION 3.11. NO DUTY TO PROVIDE DATA TO GUARANTORS. The Holders of
Notes shall have no obligation to disclose or discuss with any Guarantor its
assessment, or any Guarantor's assessment, of the financial condition of the
Issuer. Each Guarantor has adequate means to obtain information from the Issuer
on a continuing basis concerning the financial condition of the Issuer and its
ability to perform its obligations under this Agreement, the Notes and the other
Note Documents, and each Guarantor assumes the responsibility for being and
keeping informed of the financial condition of the Issuer and of all
circumstances bearing upon the risk of nonpayment of the Obligations. Each
Guarantor hereby waives and relinquishes any duty on the part of the Holders of
Notes to disclose any matter, fact or thing relating to the business, operations
or conditions of the Issuer now known or hereafter known by the Holders of
Notes.
SECTION 3.12. RIGHTS CUMULATIVE. The rights, powers and remedies
given to the Holders of Notes by this Article III are cumulative and shall be in
addition to and independent of all rights, powers and remedies given to the
Holders of Notes by virtue of any statute or rule of law or in this Agreement,
any Note or any of the other Note Documents between any Guarantor and the
Holders of Notes or between the Issuer and the Holders of Notes. Any forbearance
or failure to exercise, and any delay by the Holders of Notes in exercising, any
right, power or remedy hereunder shall not impair any such right, power or
remedy or be construed to be a waiver thereof, nor shall it preclude the further
exercise of any such right, power or remedy.
SECTION 3.13. CERTAIN WAIVERS REGARDING INTEREST ACCRUALS. Each
Guarantor acknowledges and agrees that any interest on any portion of the
Obligations which accrues after the commencement of any proceeding, voluntary or
involuntary, involving the bankruptcy, insolvency, receivership, reorganization,
liquidation or arrangement of the Issuer (or, if interest on any portion of the
Obligations ceases to accrue by operation of law by reason of the commencement
of said proceeding, such interest as would have accrued on such portion of the
Obligations if said proceeding had not been commenced) shall be included in the
Obligations because it is the intention of Guarantors and the Holders of Notes
that the Obligations which are guarantied by Guarantors pursuant to this
Agreement should be determined without regard to any rule of law or order which
may relieve the Issuer of any portion of such Obligations.
SECTION 3.14. CONTINUATION OF GUARANTY. In the event that all or any
portion of the Obligations are paid by the Issuer, the obligations of the
Guarantors hereunder shall continue
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and remain in full force and effect or be reinstated, as the case may be, in the
event that all or any part of such payment(s) are rescinded or recovered
directly or indirectly from the Holders of Notes as a preference, fraudulent
transfer or otherwise, and any such payments which are so rescinded or recovered
shall constitute Obligations for all purposes under this ARTICLE III.
SECTION 3.15. CONTINUING GUARANTY. This Guaranty set forth in this
ARTICLE III is a continuing guaranty and shall be binding upon each Guarantor
and, except as expressly provided herein, its respective successors and assigns,
and each Guarantor hereby irrevocably waives any right (including without
limitation any such right arising under California Civil Code Section 2815 and
under any similar statutes of other states) to revoke the Guaranty contained in
this ARTICLE III as to future transactions giving rise to any Obligations. The
Guaranty contained in this ARTICLE III shall inure to the benefit of the Holders
of Notes and their respective successors and assigns.
ARTICLE IV.
CLOSING
SECTION 4.01. CLOSING OF PURCHASE AND SALE OF NOTES AND SHARES. The
sale and purchase of the Notes and Shares to be purchased by the Purchaser shall
occur at such place and time as the Issuer, the Parent and the Purchaser may
mutually agree (the consummation of such sale and purchase being referred to
herein as the "CLOSING" and the date on which the Closing occurs being referred
to herein as the "CLOSING DATE").
(a) NOTES. At the Closing the Issuer will deliver to the Purchaser
the Notes in the form of a single Note (or such greater number of Notes in
denominations of at least $10,000 as the Purchaser may request) dated the date
of the Closing and registered in the Purchaser's name (or in the name of such
Purchaser's nominee), against delivery by the Purchaser to the Issuer in the
amount of the purchase price therefor by wire transfer of immediately available
funds to an account or accounts specified by the Issuer in a written notice to
the Purchaser. If at the Closing the Issuer shall fail to tender such Notes to
the Purchaser as provided above in this SECTION 4.01, or any of the other
conditions specified in SECTION 4.02 shall not have been fulfilled to the
Purchaser's satisfaction, the Purchaser shall, at its election, be relieved of
all further obligations under this Agreement, without thereby waiving any rights
the Purchaser may have by reason of such failure or such nonfulfillment.
(b) SHARES. In connection with the Purchaser's commitment to
purchase the Notes, as described in SECTION 4.01(A), the Parent shall issue to
the Purchaser the Shares in exchange for a payment to Parent of $750. The Shares
shall be issued subject to the legends set forth in SECTION 2.03 and to the
following right of repurchase by the Parent for $0.01 per share:
Notes Repaid Shares Subject to Shares
in Full Prior to Repurchase by Issuer Retained by Purchaser
---------------- -------------------- ---------------------
First Anniversary of Closing 250,000 500,000
Second Anniversary of 100,000 650,000
Closing
Thereafter none 750,000
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(c) EXERCISE OF PRIOR WARRANTS Purchaser is the holder of Warrants
to purchase 273,214 shares of Common Stock at $3.50 per share and Warrants to
purchase 910,714 shares of Common Stock at $0.01 per share (the "WARRANTS"). At
the Closing, Purchaser shall exchange the Warrants with an exercise price of
$3.50 per share at no cost and the Warrants with an exercise price of $0.01 per
share at a purchase price of $9,107.14.
SECTION 4.02. ADDITIONAL CONDITIONS TO CLOSING. The Purchaser's
obligation to purchase and pay for the Notes and the Shares to be sold to it at
the Closing is subject to the fulfillment to the Purchaser's satisfaction, prior
to or at the Closing, of the following conditions:
(a) DELIVERY OF NOTE DOCUMENTS. The Purchaser shall have received on
or before the Closing Date all of the following, each duly executed and
acknowledged where appropriate and in form and substance satisfactory to the
Purchaser:
(i) this Agreement, together with all Schedules hereto which
shall be true, complete and correct as of the Closing Date, and the Notes;
(ii) the Shares and the Warrant Shares issued to the Purchaser
and the Registration Rights Agreement;
(iii) the Nominee Agreement Assignments;
(iv) the Intercreditor Agreement and the amendment to the
Existing Credit Agreement described in SECTION 5.01(T)(I);
(v) evidence of receipt of all required consents by the
stockholders of the Issuer to this Agreement and the transactions contemplated
hereby;
(vi) evidence that the Security Documents have been amended to
provide that the Collateral secures the Obligations and the "Obligations" under
the Existing Credit Agreement with the relative priorities established by the
Intercreditor Agreement;
(vii) the Segregated Account Agreement;
(viii) the Contribution Agreement;
(ix) such consents, if any, as are necessary from debt, equity
or warrant holders of the Parent, Issuer, or any Subsidiary to not cause (i) the
issuance of the Notes or the Shares to trigger any anti-dilution or preemptive
rights or (ii) to violate any provision of such instruments that would otherwise
prohibit such issuance; and
(x) the Post Closing Undertaking.
(b) DELIVERY OF CORPORATE DOCUMENTS. On or before the Closing Date,
the Purchaser shall have received:
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(i) an Officer's or General Partner's Certificate of each
Obligor, dated the Closing Date, certifying that the conditions specified in
SECTIONS 4.01, and 4.02 have been fulfilled; and
(ii) a certificate of the Secretary or Assistant Secretary of
each Obligor or Obligor's general partner, as applicable, certifying as to (a)
the resolutions of the Obligor's, or the Obligor's general partner's, boards of
directors authorizing the execution, delivery and performance of the Note
Documents to which the Obligor is a party; (b) the names, incumbency, and
signatures of the officers of the Obligor, or the Obligor's general partner,
authorized to execute, deliver and perform such documents, and (c) the accuracy
and currency of such Obligor's Governing Documents.
(c) OPINIONS OF COUNSEL. The Purchaser shall have received favorable
legal opinions from counsel for the Obligors, covering the matters set forth in
EXHIBIT B and covering such other matters incident to the transactions
contemplated hereby as the Purchaser may reasonably request (and the Obligors
hereby instruct their counsel to deliver such opinion to the Purchaser).
(d) NO MATERIAL ADVERSE CHANGE. No material adverse change shall
have occurred with respect to the business, operations, performance, assets,
properties, condition (financial or otherwise) or prospects of the Parent and
its Subsidiaries taken as a whole from July 31, 2000.
(e) SECURITY AND OTHER DOCUMENTATION. On or prior to the Closing
Date the Purchaser shall have received fully executed copies of the Security
Documents and the Collateral Agent shall have received fully-executed originals
thereof together with such stock powers and other documents required to perfect
the security interests granted by the Security Documents.
(f) PERFORMANCE OF MATERIAL AGREEMENTS; SECURITY INTERESTS IN
COLLATERAL. On or prior to the Closing Date, the Purchaser shall have received
evidence satisfactory to it that each Obligor has sufficient right, title and
interest in and to the Collateral and other assets which it purports to own
(including appropriate licenses and copyright), as set forth in its financial
statements and in other documents presented to the Purchaser to enable each such
Obligor to perform the Material Agreements, as set forth on SCHEDULE
5.01(D)(II), to which each Obligor is a party and as to each Obligor to grant to
the Purchaser the security interests contemplated by the Note Documents, and
that all financing statements, and other filings under applicable law necessary
to provide the Collateral Agent with a first priority perfected security
interest in the Collateral (except with respect to Permitted Liens for the
Senior Debt, in which case it shall be a second priority perfected security
interest) have been filed or delivered to the Purchaser in satisfactory form for
filing.
(g) [Reserved].
(h) LITIGATION. Except as disclosed on Schedule 4.02(h) hereof, no
litigation, inquiry, injunction or restraining order shall be pending, entered
or threatened which in the Purchaser's good faith judgment could reasonably be
expected to materially and adversely affect
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(i) the assets, operations, business or condition (financial or otherwise) of
the Parent, the Issuer or its Subsidiaries as a whole, (ii) the ability of the
Obligors to perform their respective Obligations hereunder or (iii) the rights
and remedies of the Purchaser.
(i) UCC SEARCHES. The Purchaser shall have received UCC searches
satisfactory to it indicating that no other filings (other than in connection
with Permitted Liens) with regard to the Collateral are of record in any
jurisdiction in which it shall be necessary or desirable for the Purchaser to
make a UCC filing in order to obtain a perfected security interest in the
Collateral.
(j) REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Obligors in the Note Documents shall be correct when made and
at the time of the Closing.
(k) PERFORMANCE; NO DEFAULT. The Obligors shall have performed and
complied with all agreements and conditions contained in the Note Documents
required to be performed or complied with by it prior to or at the Closing and
after giving effect to the issue and sale of the Notes (and the application of
the proceeds thereof as contemplated by SECTION 5.01(S)) no Default or Event of
Default shall have occurred and be continuing.
(l) NO LEGAL IMPEDIMENTS. No law, regulation, order, judgment or
decree of any Governmental Authority shall, and the Purchaser shall not have
received any notice that litigation is pending or threatened which is likely to,
enjoin, prohibit or restrain the consummation of the transactions evidenced by
the Note Documents.
(m) DUE DILIGENCE. The Purchaser shall have completed to its
satisfaction its due diligence of the Obligors.
(n) PAYMENT OF EXPENSES. The Issuer shall have paid to the Purchaser
on or before the Closing Date fees, charges and disbursements of the Purchaser
and the Purchaser's counsel to the extent reflected in statements of the
Purchaser and such counsel rendered to the Obligor at least one Business Day
prior to the Closing.
(o) EMPLOYMENT AGREEMENT. The Issuer shall have extended Xxxxxxx
Xxxxxxx'x employment agreement to the earlier of June 15, 2004, or (ii) to such
time as the Notes are paid in full.
(p) PLEDGE OF EQUITY INTERESTS. Parent shall have pledged all of the
Equity Interests of Issuer to the Collateral Agent pursuant to the applicable
Security Document.
(q) SATISFACTORY COLLATERAL. The Purchaser shall be satisfied that
the Collateral Agent has received security interests in all Property and a
pledge of all the issued and outstanding stock of the Guarantors.
(r) OTHER DOCUMENTS. The Purchaser shall have received such other
documentation as the Purchaser may reasonably request.
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ARTICLE V.
REPRESENTATIONS AND WARRANTIES
SECTION 5.01. REPRESENTATION AND WARRANTIES OF THE OBLIGORS. Each of
the Obligors jointly and severally represents and warrants to the Purchaser as
follows:
(a) ORGANIZATION; POWER AND AUTHORITY. Each Obligor is a corporation
or limited partnership duly organized, validly existing and in good standing
under the laws of its jurisdiction of formation, and is duly qualified as a
foreign entity and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the
failure to be so qualified or in good standing could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. Each
Obligor has the power and authority to own or hold under lease the properties it
purports to own or hold under lease, to transact the business it transacts and
proposes to transact, to execute and deliver the Note Documents to which it is a
party and to perform the provisions thereof.
(b) AUTHORIZATION, ETC. Each of the Note Documents has been duly
authorized by all necessary corporate action on the part of each Obligor which
is a party thereto, and such Note Documents constitute, and upon execution and
delivery thereof each Note will constitute, a legal, valid and binding
obligation of such Obligor enforceable against such Obligor in accordance with
its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors' rights generally and general principles
of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law).
(c) DISCLOSURE. This Agreement, the other Note Documents, the
documents, certificates or other writings delivered to the Purchaser by or on
behalf of the Obligors in connection with the transactions contemplated hereby
and the financial statements described in SECTION 5.01(G), do not contain any
Material misstatement or Material omission except such as have been corrected in
writing and delivered to the Purchaser. Except as described in SCHEDULE 5.01(C),
since July 31, 2000, there has been no change in the financial condition,
operations, business, properties or prospects of any Obligor or any Subsidiary
except changes that individually or in the aggregate could not reasonably be
expected to have a Material Adverse Effect. There is no fact known to any
Obligor that could reasonably be expected to have a Material Adverse Effect that
has not been set forth herein or in the other documents, certificates and other
writings delivered to the Purchaser by or on behalf of such Obligor specifically
for use in connection with the transactions contemplated hereby.
(d) DEFAULTS; AGREEMENTS.
(i) DEFAULTS. Except for such violations and defaults as would
not, individually or in the aggregate, have a Material Adverse Effect, neither
the Parent, Issuer nor any of the Subsidiaries is in violation of its charter or
by-laws or in default in the performance, observance or fulfillment of any
obligation, agreement or condition contained in any bond, debenture, note or any
other evidence of indebtedness or in any other agreement, indenture or
instrument Material to the Parent, Issuer and any
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Subsidiary is a party or by which Parent, Issuer or any Subsidiary or their
respective property is bound. There exists no condition that constitutes or
would constitute a Default or Event of Default under any of the Note Documents.
(ii) Agreements. Schedule 5.01(d)(ii) is a true and complete
listing as of the date of this Agreement of all agreements, documents and
instruments Material to the Parent or any of its Subsidiaries (each, a "MATERIAL
AGREEMENT") which listing includes (i) all Indebtedness of Parent or any of its
Subsidiaries, including without limitation all credit agreements, indentures and
other agreements related to any Indebtedness for borrowed money of any of the
Obligors other than the Note Documents, (ii) all Material joint venture,
partnership or limited liability company agreements to which Parent or any of
its Subsidiaries is a party, and (iii) all guaranties and employment agreements
to which Parent or any of its Subsidiaries is a party. The Obligors have
delivered or made available to the Purchaser a true and complete copy of each
Material Agreement, including all exhibits and schedules thereto.
(e) Permits; Licenses. Except as would not, individually or in the
aggregate, have a Material Adverse Effect, each of Issuer, Parent and each of
its Subsidiaries (a) has all permits, licenses, franchises and authorizations of
governmental or regulatory authorities ("PERMITS"), including, without
limitation, under any applicable laws regulating the conduct of the insurance
business or Environmental Laws, material to the ownership, leasing and operation
of its properties and the conduct of its business and (b) has fulfilled and
performed all of its material obligations with respect to such Permits and no
event has occurred that allows, or after notice or lapse of time would allow,
revocation or termination thereof or results or would result in any other
material impairment of the rights of the holder of any such Permit. Such Permits
contain no restrictions that are materially burdensome to Issuer, Parent or any
of its Subsidiaries. SCHEDULE 5.01(E) lists all Permits which are Material to
the Issuer, Parent and its Subsidiaries, and true and complete copies of all
such Permits have been made available to the Purchaser.
(f) Ownership of Pledged Securities.
(i) Schedule 5.01(f)(i) contains (i) a diagram indicating the
corporate structure of the Parent, its Subsidiaries and any other Person which
the Parent or any of its Subsidiaries holds a direct or indirect partnership,
joint venture or other equity interest and indicates the nature of such interest
with respect to each Person included in such diagram; and (ii) accurately sets
forth (a) the correct legal name of such Person, the jurisdiction of its
organization and the jurisdiction in which it is qualified to transact business
as a foreign corporation or otherwise, (B) the authorized, issued and
outstanding shares or interests of each class of equity securities of the Parent
and each of its Subsidiaries and the ownership of such shares or interests and
(C) the Pledged Securities of each Obligor.
(ii) The Pledged Securities are owned by the Persons specified
on SCHEDULE 5.01(f)(ii). All of the Pledged Securities are duly authorized,
validly issued, fully paid and non-assessable, and are owned and held by the
Pledgors, free and clear of any liens, encumbrances, or security interests
whatsoever other than those created pursuant to this Agreement or applicable
securities laws. Except as set forth on SCHEDULE 5.01(f)(ii)(a), for the Issuer
and SCHEDULE 5.01(f)(ii)(b) for the other Obligors, there are no outstanding
registration
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rights, rights of first refusal, anti-dilution rights, or rights, warrants,
options, or agreements to purchase or otherwise acquire any shares of the stock
or securities or obligations of any kind convertible into any shares of capital
stock, of any shares, of the Obligors or any. All rights, including those set
forth on SCHEDULE 5.01(f)(ii)(a) and SCHEDULE 5.01(f)(ii)(b), to adjust the
purchase price of any shares of stock, or the exercise price of any warrants,
options, or agreements to purchase or otherwise acquire any shares of the stock
or securities of the Obligors have been duly and validly waived. The
registration rights set forth on SCHEDULE 5.01(f)(ii)(a) and SCHEDULE
5.01(f)(ii)(b) do not conflict with or preempt any registration rights granted
to the Purchaser pursuant to the Note Documents. SCHEDULE 5.01(f)(ii)(c) lists
all options, warrants or other rights to acquire equity securities of any
Subsidiary of the Parent or Issuer that is not an Obligor, including the class
of securities to which such rights pertain, the exercise price, expiration date,
holders thereof and registration rights pertaining thereto. Except as set forth
on such schedule, SCHEDULE 5.01(f)(ii)(a) and SCHEDULE 5.01(f)(ii)(b) there are
no options, warrants or other rights, agreements, arrangements or commitments of
any character relating to the issued or unissued capital stock of the Issuer,
Parent or any of its Subsidiaries or obligating the Issuer, Parent or any of its
Subsidiaries to issue or sell any shares of capital stock of, or other equity
interests in, the Issuer, Parent or any of its Subsidiaries. True, correct and
complete copies of the forms of all options, warrants, rights, agreements,
arrangements or commitments identified in the schedule have been delivered to
Purchaser. Except as disclosed in such schedule, there are no obligations,
contingent or otherwise, of the Issuer, Parent or any of its Subsidiaries to
repurchase, redeem or otherwise acquire any shares of Issuer or Parent stock or
the capital stock of any Subsidiary or to provide funds to or make any
Investment (in the form of a loan, capital contribution, guaranty or otherwise)
in any such Subsidiary or any other entity.
(g) Financial Statements. The Obligors have delivered to the
Purchaser copies of the final audited consolidated financial statements of the
Parent and its Subsidiaries for the Fiscal Year ending December 31, 1999 and
unaudited statements for the month ending July 31, 2000. All of said financial
statements (including in each case the related schedules and notes) fairly
present in all material respects the consolidated financial position of the
Parent and its Subsidiaries as of the respective dates specified in such
Schedule and the consolidated results of their operations and cash flows for the
respective periods so specified and have been prepared in accordance with GAAP
consistently applied throughout the periods involved except as set forth in the
notes thereto (subject, in the case of any interim financial statements, to
normal year-end adjustments).
(h) Security Interest; Other Security. This Agreement and the other
Note Documents, when executed and delivered and, upon the purchase of the Notes
by the Purchaser, will create and grant to the Purchaser (upon (i) the filing of
the appropriate UCC-1 financing statements with the appropriate filing offices
designated by Issuer, and (ii) delivery of the Pledged Securities to the
Purchaser) a valid and perfected security interests in the Collateral and the
Pledged Securities in existence on the Closing Date as to which security
interests may be perfected by such filings or delivery, subject only to
Permitted Liens.
(i) Places of Business. The chief executive office of each Obligor
is, on the Closing Date, as set forth on SCHEDULE 5.01(i) hereto, which offices
in the United States are the places where each Obligor is "located" for the
purpose of the UCC and the Uniform Commercial
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Code in effect in any State in which any Obligor is so located. All of the
places where each Obligor keeps the records concerning the Collateral on the
date hereof or regularly keeps any goods included in the Collateral on the date
hereof are also listed on SCHEDULE 5.01(i) hereto.
(j) COMPLIANCE WITH LAWS, OTHER INSTRUMENTS, ETC. The execution,
delivery and performance by each Obligor of the Note Documents to which it is a
party will not (i) contravene, result in any breach of, or constitute a default
under, or result in the creation of any Lien in respect of any property of such
Obligor under, any indenture, mortgage, deed of trust, loan, purchase or credit
agreement relating to the borrowing of money, any material lease or any other
agreement or instrument to which such Obligor is bound or by which such Obligor
or any of its properties may be bound or affected, (ii) conflict with or result
in a breach of any of the terms, conditions or provisions of any order,
judgment, decree, or ruling of any court, arbitrator or Governmental Authority
applicable to such Obligor or (iii) violate any provision of any Requirement of
Law (including, without limitation, laws regulating the corporate practice of
medicine) applicable to such Obligor.
(k) GOVERNMENTAL AUTHORIZATIONS, ETC. No consent, approval or
authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance
by any Obligor of this Agreement or the Notes.
(l) LITIGATION; OBSERVANCE OF AGREEMENTS, STATUTES AND ORDERS.
(i) Except as disclosed in SCHEDULE 4.02(h), there are no
actions, suits or proceedings pending or, to the knowledge of any Obligor,
threatened against or affecting such Obligor in any court or before any
arbitrator of any kind or before or by any Governmental Authority that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.
(ii) None of the Obligors is in default under any term of any
agreement or instrument to which it is a party or by which it is bound, or any
order, judgment, decree or ruling of any court, arbitrator or Governmental
Authority or is in violation of any applicable Requirement of Law (including
without limitation Environmental Laws) of any Governmental Authority, which
default or violation, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.
(m) TAXES. Each Obligor has filed all tax returns that are required
to have been filed in any jurisdiction, and have paid all taxes shown to be due
and payable on such returns and all other taxes and assessments levied upon them
or their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
except for any taxes and assessments (i) the amount of which is not individually
or in the aggregate Material or (ii) the amount, applicability or validity of
which is currently being contested in good faith by appropriate proceedings and
with respect to which each Obligor, as the case may be, has established adequate
reserves in accordance with GAAP. No Obligor knows of no basis for any other tax
or assessment that could reasonably be expected to have a Material Adverse
Effect. The Federal income tax liabilities of each Obligor have been audited by
the Internal Revenue Service and paid for all Fiscal Years up to and including
the
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Fiscal Year ended December 1995.
(n) TITLE TO PROPERTY; LEASES. Each Obligor has good and marketable
title to its assets and properties that individually or in the aggregate are
Material, all of which are listed on SCHEDULE 5.01(n), in each case free and
clear of Liens (other than Liens permitted by this Agreement). All leases that
individually or in the aggregate are Material are valid and subsisting and are
in full force and effect in all material respects. No Obligor owns any real
property.
(o) [RESERVED]
(p) LICENSES, PERMITS, ETC. Each Obligor owns or possesses the right
to use all licenses, permits, franchises, authorizations, patents, copyrights,
service marks, trademarks and trade names, or rights thereto, that individually
or in the aggregate are Material, without known conflict with the rights of
others other than rights of licensors with respect to those items that are
subject to such licenses.
(q) COMPLIANCE WITH ERISA.
(i) Each Obligor and each ERISA Affiliate have operated and
administered each Plan in compliance with all applicable laws except for such
instances of noncompliance as have not resulted in and could not reasonably be
expected to result in a Material Adverse Effect. No Obligor or any ERISA
Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the
penalty or excise tax provisions of the Code relating to employee benefit plans
(as defined in Section 3 of ERISA), and no event, transaction or condition has
occurred or exists that could reasonably be expected to result in the incurrence
of any such liability by any Obligor or any ERISA Affiliate, or in the
imposition of any Lien on any of the rights, properties or assets of any Obligor
or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to
such penalty or excise tax provisions or to Section 401(a)(29) or 412 of the
Code, other than such liabilities or Liens as would not be individually or in
the aggregate Material.
(ii) The present value of the aggregate benefit liabilities
under each of the Plans (other than Multiemployer Plans), determined as of the
end of such Plan's most recently ended plan year on the basis of the actuarial
assumptions specified for funding purposes in such Plan's most recent actuarial
valuation report, did not exceed the aggregate current value of the assets of
such Plan allocable to such benefit liabilities. The term "BENEFIT LIABILITIES"
has the meaning specified in Section 4001 of ERISA and the terms "CURRENT VALUE"
and "PRESENT VALUE" have the meaning specified in Section 3 of ERISA.
(iii) No Obligor or any ERISA Affiliates have incurred
withdrawal liabilities (and are not subject to contingent withdrawal
liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer
Plans that individually or in the aggregate are Material.
(iv) The expected post-retirement benefit obligation
(determined as of the last day of each Obligor's most recently ended Fiscal Year
in accordance with Financial Accounting Standards Board Statement No. 106,
without regard to liabilities attributable to continuation coverage mandated by
section 4980B of the Code) of each Obligor is not Material.
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(v) The Obligors' execution and delivery of this Agreement and
the issuance and sale of the Notes hereunder will not involve any transaction
that is subject to the prohibitions of section 406 of ERISA or in connection
with which a tax could be imposed pursuant to section 4975(c)(1)(a)-(D) of the
Code.
(r) PRIVATE OFFERING BY EACH OBLIGOR. None of the Obligors or anyone
acting on their behalf has offered the Securities for sale to, or solicited any
offer to buy any of the same from, or otherwise approached or negotiated in
respect thereof with, any person other than accredited investors (within the
meaning of Regulation D under the Securities Act). None of the Obligors or
anyone acting on its behalf has taken, or will take, any action that would
subject the initial issuance or sale of the Securities to the registration
requirements of Section 5 of the Securities Act.
(s) [reserved]
(t) EXISTING INDEBTEDNESS; CASH AVAILABILITY; FUTURE LIENS.
(i) SCHEDULE 5.01(t)(i) sets forth a complete and correct list
of all outstanding Indebtedness of each Obligor as of the Closing Date. As of
the Closing Date, the outstanding principal amount of the Indebtedness of all
Obligors owed to third parties is not in excess of $14,661,552 and the
outstanding principal amount of all intercompany Indebtedness of all Obligors is
not in excess of $384,113. In addition, as of the Closing Date, the Parent and
its Subsidiaries have cash on hand equal to the Minimum Reserve, and the Senior
Debt has been amended to (i) permit the transactions contemplated herein and in
the Note Documents, (ii) revise the amortization for term loans and the
prepayment requirements of the Senior Debt, (iii) reduce the revolving credit
commitment to $3,6000,000, (iv) eliminate the acquisition loan commitment and
convert all outstanding acquisition loans to term loans, (v) revise certain
financial covenants, (vi) conform certain provisions in accordance with the
Intercreditor Agreement, and (vii) waive all existing defaults and events of
defaults under the Senior Debt Documents. None of the Obligors is in default in
the payment of any principal or interest on any Indebtedness of such Obligor and
no event or condition exists with respect to any Indebtedness of such Obligor
that would permit (or that with notice or the lapse of time, or both, would
permit) one or more Persons to cause such Indebtedness to become due and payable
before its stated maturity or before its regularly scheduled dates of payment.
(ii) Except as disclosed in SCHEDULE 1.01(b), none of the
Obligors has agreed or consented to cause or permit in the future (upon the
happening of a contingency or otherwise) any of its property, whether now owned
or hereafter acquired, to be subject to a Lien other than a Permitted Lien.
(u) FOREIGN ASSETS CONTROL REGULATIONS, ETC. Neither the sale of the
Notes by the Issuer hereunder nor their use of the proceeds thereof will violate
the Trading with the Enemy Act, as amended, or any of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) or any enabling legislation or executive order relating
thereto.
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(v) STATUS UNDER CERTAIN STATUTES. None of the Obligors is subject
to regulation under the Investment Company Act of 1940, as amended, the Public
Utility Holding Company Act of 1935, as amended, the Interstate Commerce Act, as
amended, or the Federal Power Act, as amended.
(w) ENVIRONMENTAL MATTERS. None of the Obligors has knowledge of any
claim or has received any notice of any claim, and no proceeding has been
instituted raising any claim against such Obligor or any of their respective
real properties now or formerly owned, leased or operated by any of them or
other assets, alleging any damage to the environment or violation of any
Environmental Laws, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect. Except as otherwise disclosed
to the Purchaser in writing,
(i) none of the Obligors has knowledge of any facts which
would give rise to any claim, public or private, of violation of Environmental
Laws or damage to the environment emanating from, occurring on or in any way
related to real properties now or formerly owned, leased or operated by any of
them or to other assets or their use, except, in each case, such as could not
reasonably be expected to result in a Material Adverse Effect; and
(ii) all buildings on all real properties now owned, leased or
operated by each Obligor is in compliance with applicable Environmental Laws,
except where failure to comply could not reasonably be expected to result in a
Material Adverse Effect.
(x) LABOR MATTERS. There is (a) no unfair labor practice complaint
pending against any Obligor or, to the best knowledge of such Obligor,
threatened against it, before the National Labor Relations Board or any state or
local labor relations board, and no grievance or arbitration proceeding arising
out of or under any collective bargaining agreement is so pending against such
Obligor or, to the best knowledge of such Obligor, threatened against it and (b)
no strike, labor dispute, slowdown or stoppage pending against any Obligor or,
to the best knowledge of such Obligor, threatened against it, except for such
actions specified in clause (a) or (b) above which, singly or in the aggregate,
will have or could reasonably be expected to have a Material Adverse Effect.
(y) CERTIFICATE OF INCORPORATION AND BYLAWS. The Parent, the Issuer
and each Subsidiary Guarantor have heretofore furnished to Purchaser a complete
and correct copy of their Certificate of Incorporation and Bylaws as most
recently restated and subsequently amended to date. Such Certificates of
Incorporation and Bylaws are in full force and effect. The Issuer is not in
violation of any of the provisions of its Certificate of Incorporation or
Bylaws.
(z) CAPITALIZATION.
(i) The authorized capital stock of the Issuer consists of
50,327,051 shares of Common Stock.
(ii) The authorized capital stock of the Parent consists of
(i) 37,500,000 shares of Class A Common Stock and 2,000,000 shares of Class B
Common Stock, (ii) 8,227,050 shares of Series I Convertible Preferred Stock, and
(iii) 2,600,000 shares of Series II Preferred Stock. As of the Closing Date, (i)
11,591,090 shares of Common Stock were issued
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and outstanding, all of which are validly issued, fully paid and nonassessable,
and no shares of Common Stock were held in treasury, (ii) no shares of Common
Stock were held by Subsidiaries of the Parent, and (iii) approximately 6,794,774
shares of Common Stock were reserved for future issuance pursuant to outstanding
stock options or warrants. As of the Closing Date, 7,067,514 shares of Series I
Convertible Preferred Stock were issued and outstanding, all of which are
validly issued, fully paid and nonassessable, and no shares of Series I
Convertible Preferred Stock were held in treasury. As of the Closing Date,
2,500,886 shares of Series II Convertible Preferred Stock were issued and
outstanding, all of which are validly issued, fully paid and nonassessable, and
no shares of Series II Convertible Preferred Stock were held in treasury. No
material change in the capitalization of the Parent has occurred between the
Closing Date and the date hereof.
(iii) The Shares and the Warrant Shares, when issued, will be
validly issued, fully-paid and non-assessable.
(aa) SOLVENCY. After giving effect to the transactions contemplated
by the Note Documents, (a) the fair market value of the assets of all of the
Obligors in the aggregate, is in excess of the total amount of the liabilities
of all of the Obligors, in the aggregate (including, without limitation,
contingent liabilities); (b) the present fair saleable value of the assets of
all of the Obligors in the aggregate is greater than its probable liability on
all of the Obligors existing debts as such debts become absolute and matured;
(c) each Obligor is then able and expects to be able to pay its debts
(including, without limitation, contingent debts and other commitments) as they
mature; and (d) each Obligor has capital sufficient to carry on its business as
conducted and as proposed to be conducted.
(bb) PROJECTIONS. The financial projections delivered to the Initial
Purchaser were prepared in good faith by the Obligors based upon reasonable
assumptions, and the Obligors acknowledge that the Purchaser is relying on such
projections in deciding to enter into this Agreement.
SECTION 5.02. REPRESENTATIONS OF THE PURCHASER. The Purchaser
represents and warrants to the Issuer as follows:
(a) NO REGISTRATION. The Securities are not registered under the
Securities Act or any state securities laws; it understands that the offering
and sale of the Securities are intended to be exempt from registration under the
Securities Act, by virtue of Section 4(2) and the provisions of Regulation D
promulgated thereunder, based, in part, upon the representations, warrantees and
agreements contained in this Agreement; and the Purchaser understands that the
Securities will bear a legend to that effect.
(b) ACCREDITED INVESTOR. With respect to the transaction evidenced
by this Agreement and the Securities, the Purchaser is an accredited investor
within the meaning of Regulation D under the Securities Act, and it has such
knowledge and experience in financial, tax and business matters so as to enable
it to utilize the information provided to it and other sources of information
(including this Agreement) to evaluate the merits and risks of an Investment in
the Securities and to make an informed investment decision with respect thereto.
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(c) PURCHASE FOR INVESTMENT; LEGEND. The Purchaser is acquiring the
Securities solely for its own account for investment and not with a view to
resale or distribution. The Purchaser acknowledges that a restrictive legend
substantially in the form set forth in SECTION 2.03 will be placed on the
security.
(d) AUTHORIZATION, ETC. This Agreement and the Registration Rights
Agreement and the other agreements referenced herein to which Purchaser is a
party have been duly authorized, executed and delivered by the Purchaser.
(e) ERISA MATTERS. In connection with its purchase of the Notes and
the Shares, none of the funds being used by the Purchaser to purchase the Notes
and the Shares include "plan assets" as such term is defined in ERISA.
ARTICLE VI.
REPORTING AND AFFIRMATIVE COVENANTS
Each Obligor covenants that so long as any of the Notes are
outstanding:
SECTION 6.01. FINANCIAL AND BUSINESS INFORMATION. The Obligors shall
deliver to each Holder of Notes:
(a) ANNUAL STATEMENTS. Within 90 days after the end of each Fiscal
Year of the Parent, duplicate copies of:
(i) a consolidated balance sheet of the Parent and its
Subsidiaries, as at the end of such year; and
(ii) consolidated statements of income, changes in
shareholders' equity and cash flows of the Parent and its Subsidiaries, for such
year, setting forth in each case in comparative form the figures for the
previous Fiscal Year, all in reasonable detail, prepared in accordance with
GAAP, and accompanied by an unqualified opinion thereon of independent certified
public accountants of recognized national standing, which opinion shall state
that such financial statements present fairly, in all material respects, the
financial position of the companies being reported upon and their results of
operations and cash flows and have been prepared in conformity with GAAP, and
that the examination of such accountants in connection with such financial
statements has been made in accordance with generally accepted auditing
standards, and that such audit provides a reasonable basis for such opinion in
the circumstances;
(b) MONTHLY STATEMENTS AND REPORTS. Within 30 days after the end of
each calendar month, the following financial statements and reports: (i) income
statements, monthly and year to date including variance to budget, (ii) balance
sheet, monthly and year to date including variance to budget, (iii) cash flow
statements, monthly and year to date including variance to budget; (iv) a
certificate executed by a Senior Financial Officer of the Parent demonstrating
compliance with the financial covenants set forth in SECTIONS 7.14 and 7.15 in
form and substance reasonably satisfactory to the Holder, (v) a utilization
report with respect to each contract, and (vi) a contract profitability report
specifying contract profitably on a monthly
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and year to date basis down to EBITDA levels.
(c) BUDGET.
(i) ANNUAL. As soon as practicable and in any event 30 days
prior to Fiscal Year end for the following Fiscal Year, a plan, operating budget
and financial forecast for the next succeeding Fiscal Year of the Parent,
including, without limitation, (i) a forecasted consolidated and consolidating
balance sheet and statement of income of the Parent and its Subsidiaries and a
consolidated and consolidating statement of cash flows of the Parent for such
Fiscal Year, (ii) a consolidated and consolidating forecasted statement of
income and a balance sheet of the Parent and its Subsidiaries and a consolidated
and consolidating statements of cash flows of the Parent and its Subsidiaries
for each fiscal quarter of such Fiscal Year, and (iii) the amount of forecasted
capital expenditures for such Fiscal Year of the Parent and its Subsidiaries
(except that consolidating financial information will be delivered only to the
extent and in the form customarily prepared and available to the Parent). The
budgets shall include projected enrollment data, revenues, claims expense,
direct expenses, selling, general and administrative expenses and EBITDA data
and such other data as Purchaser may request setting forth the breakdown between
the business units of the Parent, in a format similar to the monthly, quarterly
and annual Data Reports provided to the Purchaser hereunder.
(ii) QUARTERLY. As soon as practicable and in any event within
30 days after the end of each quarterly fiscal period in each Fiscal Year of the
Parent, the Parent shall prepare and deliver income statements including
variance to budget along with written explanations of variances to budget,
substantially in the form of such comparisons that the Parent provides to its
board of directors.
(d) PUBLIC COMPANY REPORTS. Should the Parent become obligated to
file rts with the Commission,
(i) copies of the Parent's Quarterly Report on Form 10-Q
prepared in compliance with the requirements therefor and filed with the
Commission; and
(ii) the delivery of the Parent's Annual Report on Form 10-K
for such Fiscal Year (together with the Parent's annual report to shareholders,
if any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in
accordance with the requirements therefor and filed with the Commission,
together with the accountant's certificate described in clause (B) of SECTION
6.01(a), shall be deemed to satisfy the requirements of SECTION 6.01(a).
(e) SEC AND OTHER REPORTS. Promptly upon their becoming available,
each financial statement, report, notice or proxy statement sent by any Obligor
to public securities Holders generally, and each regular or periodic report,
each registration statement (without exhibits except as expressly requested by
such Holder), and each prospectus and all amendments thereto filed by such
Obligor with the Commission and of all press releases and other statements made
available generally by such Obligor to the public concerning developments that
are Material.
(f) NOTICE OF CERTAIN EVENTS. Promptly, and in any event within five
Business
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Days after any officer of any Obligor obtaining knowledge of any of the
following events or conditions, Issuer shall deliver copies of all notices given
or received by Parent, Issuer or any Subsidiary with respect to any such event
or condition and a certificate of Parent's chief executive officer specifying
the nature and period of existence of such event or condition and what action
Parent, Issuer, or any of Subsidiary has taken, is taking and proposes to take
with respect thereto: (i) any condition or event that constitutes an Event of
Default or Default, or which could reasonably be expected to result in the
occurrence of an Event of Default; (ii) any notice that any Person has given to
Parent, Issuer or any of its Subsidiaries or any other action taken with respect
to a claimed default or event or condition of the type referred to in SECTION
8.01(g); (iii) any event or condition that could reasonably be expected to
result in any Material Adverse Effect; (iv) any default or event of default
under any Material Agreement; (v) any default or event of default with respect
to any Indebtedness of Parent or any of its Subsidiaries, including the Senior
Debt; or (vi) any unscheduled payment of principal on any Senior Debt, and a
statement as to the outstanding principal balance thereof after such payment.
(g) NOTICES FROM GOVERNMENTAL AUTHORITY. Promptly, and in any event
within 30 days of receipt thereof, copies of any notice to any Obligor from any
Federal or state Governmental Authority relating to any order, ruling, statute
or other law or regulation that could reasonably be expected to have a Material
Adverse Effect;
(h) REQUESTED INFORMATION. From time to time, with reasonable
promptness, such additional financial statements and information with respect to
the financial condition of the Parent and its Subsidiaries as Purchaser may
reasonably request, including, without limitation and without further request,
(i) any financial statements or reports (including comment letters to
management) furnished to the Parent or its Subsidiaries by its independent
certified public accountants, (ii) to the extent not already furnished pursuant
to this Agreement, all financial statements, certificates, reports and other
information furnished by the Parent and its Subsidiaries to any bank pursuant to
any agreement, and (iii) all significant press releases issued by or on behalf
of the Parent or its Subsidiaries. Finally, the Issuer shall provide such
information concerning the operations of the Parent and its Subsidiaries as
Purchaser may from time to time reasonably request in writing, and upon
reasonable advance notice permit representatives of Purchaser (i) such access
during normal business hours (and in a manner which will not be disruptive to
the business and operations of the Parent) to the properties, books and records
of the Parent and its Subsidiaries, and (ii) to discuss the affairs, accounts
and finances of the Parent and its Subsidiaries with the financial and
management personnel of the Parent and its Subsidiaries and with their
independent certified public accountants (and the Parent authorizes such
independent public accountants to discuss the Parent's or any Subsidiaries'
financial matters with the Purchaser and their representatives); provided,
however, that the Issuer shall not be obligated to provide access to any
information that it reasonably considers to be a trade secret or similar
confidential information unless Purchaser provides assurances in writing that it
will maintain the confidentiality of the information. Purchaser will consult
with the Issuer regarding the strategy and logistics of their visits and
inspections in order to minimize the costs of, and descriptions arising from,
such visits and inspections. All such information shall be treated by Purchaser
as confidential.
(i) BOARD OBSERVATION RIGHTS. For so long as the Notes are
outstanding, the
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Holders shall have the right to request and shall receive copies of all Board
information packages, notices of meetings, and other material provided to the
members of the Board of Directors of the Parent and/or the Issuer, and shall
have a right to have a representative designated by a majority of the Holders of
the Notes present at all meetings of the Parent's and Issuer's Boards of
Directors.
(j) EXCESS CASH FLOW ADJUSTMENT DATE. Within 5 Business Days after
the Parent and its Consolidated Subsidiaries have achieved a Current Ratio of
1.1 to 1, an Officer's Certificate certifying as to such Current Ratio and as to
the date on which such ratio was achieved.
(k) TERMINATION OF SENIOR DEBT. Notification that the Senior Debt
Termination Date has occurred, within 5 days thereof.
SECTION 6.02. OFFICER'S CERTIFICATE. The financial statements
delivered to a Holder of Notes pursuant to SECTION 6.01(a) hereof shall be
accompanied by a certificate of a Senior Financial Officer of each Obligor
setting forth:
(a) COVENANT COMPLIANCE. The information (including detailed
calculations) required in order to establish whether the Obligors were in
compliance with the requirements of SECTION 7.14 and SECTION 7.15, inclusive,
during the quarterly or annual period covered by the statements then being
furnished (including with respect to each such Section, where applicable, the
calculations of the maximum or minimum amount, ratio or percentage, as the case
may be, permissible under the terms of such Sections, and the calculation of the
amount, ratio or percentage then in existence); and
(b) EVENT OF DEFAULT. A statement that such officer has reviewed the
relevant terms hereof and has made, or caused to be made, under his or her
supervision, a review of the transactions and conditions of Obligors from the
beginning of the quarterly or annual period covered by the statements then being
furnished to the date of the certificate and that such review shall not have
disclosed the existence during such period of any condition or event that
constitutes a Default or an Event of Default or, if any such condition or event
existed or exists (including, without limitation, any such event or condition
resulting from the failure of any Obligor to comply with any Environmental Law),
specifying the nature and period of existence thereof and what action such
Obligor shall have taken or proposes to take with respect thereto.
SECTION 6.03. INSPECTION. Each Obligor shall permit the
representatives of each Holder:
(a) NO DEFAULT. If no Default or Event of Default then exists, at
the expense of the applicable Holder and upon reasonable prior notice to such
Obligor, to visit the principal executive office of the Parent, to discuss the
affairs, finances and accounts of the Parent and its Subsidiaries with the
officers of the Parent and, if resident in such office, the officers of its
Subsidiaries, and (with the consent of the Parent, which consent will not be
unreasonably withheld) its independent public accountants, all at such
reasonable times and as often as may be reasonably requested; and
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(b) DEFAULT. If a Default or Event of Default then exists, at the
expense of the applicable Obligor to visit and inspect any of the offices or
Properties of such Obligor, to examine all their respective books of account,
records, reports and other papers, to make copies and extracts therefrom, and to
discuss their respective affairs, finances and accounts with their respective
officers and independent public accountants (and by this provision each Obligor
authorizes said accountants to discuss the affairs, finances and accounts of
such Obligor), all at such times and as often as may be requested.
SECTION 6.04. COMPLIANCE WITH LAW. Each Obligor will comply with all
Requirements of Law to which each of them is subject, including, without
limitation, Environmental Laws, and will obtain and maintain in effect all
licenses, certificates, permits, franchises and other governmental
authorizations necessary to the ownership of its properties or to the conduct of
its business, in each case to the extent necessary to ensure that non-compliance
with such Requirements of Law or failures to obtain or maintain in effect such
licenses, certificates, permits, franchises and other governmental
authorizations could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.
SECTION 6.05. INSURANCE.
(a) Keep its assets which are of an insurable character insured (to
the extent and for the time periods consistent with normal industry practices)
by financially sound and reputable insurers against loss or damage by fire,
explosion, theft or other hazards which are included under extended coverage in
amounts not less than the insurable value of the property insured or such lesser
amounts, and with such self-insured retention or deductible levels, as are
consistent with normal industry practices;
(b) Maintain with financially sound and reputable insurers,
insurance against other hazards and risks and liability to Persons and property
to the extent and in the manner customary for companies in similar businesses;
(c) Upon the request of any Holder, will render to such Holder a
statement of insurance in such detail as such Holder may reasonably request as
to all such insurance coverage.
(d) The Parent or the Issuer will maintain a term life insurance
policy in form and substance and issued by a life insurance company, in each
case acceptable to the Holders in their sole good faith discretion, with respect
to Xx. Xxxxxxx X. Xxxxxxx, or his successor in the capacity of President and
Chief Executive Officer of the Issuer, in the amount of $5,000,000 (the
"KEY-PERSON LIFE INSURANCE POLICY"). Any proceeds payable to any Obligor under
the Key-Person Life Insurance Policy shall be paid to the Holders in accordance
with SECTION 2.06(c) hereof.
SECTION 6.06. MAINTENANCE OF PROPERTIES. Each Obligor will maintain
and keep, or cause to be maintained and kept, their respective properties in
normal working order and condition (other than ordinary wear and tear) such
that, in the reasonable judgment of such Obligor, the business carried on in
connection therewith may be properly conducted at all times, PROVIDED that this
Section shall not prevent such Obligor from discontinuing the operation and
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the maintenance of any of its properties if such discontinuance is desirable in
the conduct of its business and such Obligor has concluded that such
discontinuance could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.
SECTION 6.07. PAYMENT OF TAXES AND CLAIMS. Each Obligor will and
will cause each of its Subsidiaries to file all tax returns required to be filed
in any jurisdiction and to pay and discharge all taxes shown to be due and
payable on such returns and all other taxes, assessments, governmental charges,
or levies imposed on them or any of their properties, assets, income or
franchises, to the extent such taxes and assessments have become due and payable
and before they have become delinquent and all claims for which sums have become
due and payable that have or might become a Lien on properties or assets of any
Obligor, PROVIDED that none of the Obligors need pay any such tax or assessment
or claims if the amount, applicability or validity thereof is contested by such
Obligor on a timely basis in good faith and in appropriate proceedings, and such
Obligor has established adequate reserves therefor in accordance with GAAP on
the books of such Obligor or the nonpayment of all such taxes and assessments in
the aggregate could not reasonably be expected to have a Material Adverse
Effect.
SECTION 6.08. CORPORATE EXISTENCE, ETC. Each Obligor will at all
times preserve and keep in full force and effect its corporate existence.
Subject to SECTION 7.02 each Obligor will at all times preserve and keep in full
force and effect the corporate existence and all rights and franchises of such
Obligor unless, in the good faith judgment of such Obligor, the termination of
or failure to preserve and keep in full force and effect such corporate
existence, right or franchise could not, individually or in the aggregate, have
a Material Adverse Effect. The Obligors shall not amend their Governing
Documents in a manner which would have a Material Adverse Effect on the Holders.
SECTION 6.09. MAINTENANCE OF BOOKS AND RECORDS. Each Obligor will
make and keep books, records and accounts in which full, true and correct
entries in accordance with GAAP and all Requirements of Law are made of all
dealings and transactions in relation to its business and activities.
SECTION 6.10. MAINTENANCE OF LINES OF BUSINESS. Each Obligor will,
and will cause its Subsidiaries to, devote substantially all of their respective
time to, and deploy substantially all of their respective Material assets owned
or used by such Obligor or Subsidiary in, the Lines of Business as conducted by
the Obligors on the date of this Agreement and businesses reasonably related
thereto.
SECTION 6.11. PRIVATE PLACEMENT NUMBERS. At the request of any
Holder, the Issuer shall assist such Holder in obtaining a Private Placement
number issued by Standard & Poor's CUSIP Service Bureau (in cooperation with the
Securities Valuation Office of the National Association of Insurance
Commissioners) for the Notes.
SECTION 6.12. LIENS. The Obligors shall defend the Collateral
against any and all Liens howsoever arising, other than Permitted Liens, and in
any event defend against any attempted foreclosure.
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SECTION 6.13. RULE 144. In order to permit the holders of Notes,
Shares and the Warrant Shares to sell the same, if they so desire, pursuant to
Rule 144 promulgated by the Commission (or any successors to such rules), the
Issuer and the Parent will, at such time as any of the Common Stock becomes
registered for sale by the Parent under the 1933 Act, comply with all rules and
regulations of the Commission applicable in connection with the use of Rule 144
(or any successors thereto), including the timely filing of all reports with the
Commission and the provision of any information regarding the Parent in order to
enable such holders, if they so elect, to utilize Rule 144, and the Parent will
cause any restrictive legends to be removed and any transfer restrictions to be
rescinded with respect to any sale of Notes, Shares and Warrant Shares which is
exempt from registration under the 1933 Act pursuant to Rule 144. Upon the
request of any Holder of Notes, Shares and Warrant Shares, the Parent will
deliver to such holder a written statement verifying that it has complied with
such requirement.
SECTION 6.14. USE OF PROCEEDS; MARGIN REGULATIONS. The Obligors will
apply the proceeds of the sale of the Notes to pay costs and expenses incurred
by the Obligors in connection with the Note Documents and for working capital
and to repay a loan to the Issuer by Xxxxxxx Xxxxxxx in the principal amount of
$750,000. The proceeds may not be used to pay Senior Debt. No part of the
proceeds from the sale of the Notes hereunder will be used, directly or
indirectly, for the purpose of buying or carrying any margin stock within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 207), or for the purpose of buying or carrying or trading in any
securities under such circumstances as to involve each Obligor in a violation of
Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a
violation of Regulation T of said Board (12 CFR 220). As used in this Section,
the terms "MARGIN STOCK" and "PURPOSE OF BUYING OR CARRYING" shall have the
meanings assigned to them in said Regulation U.
SECTION 6.15. FURTHER ASSURANCES; SECURITY INTERESTS.
(a) Upon the request of the Purchaser, the Obligors shall duly
execute and deliver, or cause to be duly executed and delivered, at the cost and
expense of the Obligors, such further instruments as may be appropriate in the
reasonable judgment of the Purchaser to carry out the provisions and purposes of
this Agreement and the other Note Documents.
(b) Upon the request of the Purchaser, the Obligors shall promptly
execute and deliver, or cause to be duly executed and delivered, at the cost and
expense of the Obligors, such further instruments as may be appropriate in the
reasonable judgment of the Purchaser to provide the Collateral Agent, on behalf
of Purchasers, a perfected Lien in the Collateral (subject to the prior lien of
the Senior Debt) and any and all documents (including without limitation, the
execution, amendment or supplementation of any financing statement and
continuation statement or other statement) for filing under the provisions of
the UCC and the rules and regulations thereunder, or any other statute, rule or
regulation of any applicable foreign, federal, state or local jurisdiction, and
perform or cause to be performed such other ministerial acts which are
necessary, from time to time, in order to grant and maintain in favor of the
Collateral Agent, on behalf of Purchasers, the security interest in the
Collateral contemplated hereunder and under the other Note Documents.
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(c) The Obligors shall promptly undertake to deliver or cause to be
delivered to the Purchaser from time to time such other documentation, consents,
bank acknowledgments, partnership acknowledgments and consents, authorizations
and approvals in form and substance reasonably satisfactory to the Purchaser, as
the Purchaser shall deem reasonably necessary or advisable to perfect or
maintain the Liens of the Collateral Agent, on behalf of Purchasers.
SECTION 6.16. PREPAYMENT OF SENIOR DEBT. Notwithstanding the
prepayment requirements under the Senior Debt Documents, or any waiver by the
Senior Lender of any of its rights with respect to any prepayment of the Senior
Debt:
(a) The Obligors shall apply any and all Extraordinary Cash Proceeds
to the permanent reduction of the outstanding principal amount of the Senior
Debt under any term loan, and thereafter in the case of any Senior Debt under
any revolving credit facility, a reduction in any outstanding amount under such
revolving credit facility;
(b) The Obligors shall apply the percentage of Excess Cash Flow as
required in SECTION 2.06 (b)(iii) AND (iv) to the permanent reduction of the
outstanding principal amount of the Senior Debt under any term loan, and
thereafter in the case of any Senior Debt under any revolving credit facility, a
reduction in any outstanding amount under such revolving credit facility in
accordance with SECTION 2.06(b)(iii) AND (iv); and
(c) In the event that the application of payments pursuant to
SECTION 6.16(a) and/or SECTION 6.16(b) results in the occurrence of the Senior
Debt Termination Date the Obligors shall apply any and all Extraordinary
Proceeds to the prepayment of the Notes pursuant to SECTION 2.06(a) and/or any
additional Excess Cash Flow to the prepayment of the Notes in accordance with
SECTION 2.06(b)(i) AND (ii) prior to any Permitted Refinancing of the Senior
Debt.
SECTION 6.17. RIGHT TO PROVIDE FINANCING. For so long as the Notes
are outstanding, and subject to the restrictions contained herein, the Issuer
and Parent shall provide to the Initial Purchaser (and not to any assignee or
transferee of the Notes other than Affiliates or Affiliated Investors) a right
of first refusal to provide: (i) any debt financing for the Issuer or its
Subsidiaries (other than the following categories of financings to which this
SECTION 6.17 shall not apply: sale/leaseback and lease financings; or purchase
money financing and capital lease financing of equipment or fixed assets from
the sellers thereof); or (ii) private equity financings of any sort for the
Parent or any of its Subsidiaries, but only in an amount equal to such equity as
is necessary to maintain the Holders' fully diluted equity ownership percentage
at the same level as at the Closing or (iii) any refinancing of the Senior Debt
or any financing that would be senior to, or PARI PASSU with, the Senior Debt
(collectively a "FINANCING"). If the Issuer or Parent desires in good faith to
engage in a Financing, the Issuer shall first notify the Initial Purchaser and
in good faith negotiate with them the terms of the Financing desired. If the
parties are unable to negotiate mutually acceptable terms in a reasonable amount
of time given the needs of the Issuer, the Issuer may seek a bona fide Financing
proposal from a third party and upon receiving the same shall deliver a written
notice thereof to the Initial Purchaser (the "NOTICE"). The Notice shall contain
a description of the proposed Financing and all of the terms thereof and the
parties thereto, including the proposed closing arrangements. The Notice shall
be
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accompanied by a copy of the bona fide third party offer for the Financing. If
the financing proposal in the Notice is not more favorable to Issuer and Parent,
during the period ending 15 Business Days after the Notice is delivered to the
Initial Purchaser, the Initial Purchaser may, by written notice to the Issuer
and Parent, agree to provide the Financing on the terms described in the Notice.
In the event that the Initial Purchaser does not agree to provide the Financing,
the Issuer or Parent shall have the right to accept the third party Financing on
the terms (such as interest, maturity date, dividend rate, redemption date,
etc.) described in the Notice (or terms more favorable to the Issuer), but shall
not have the right to accept Financing on any terms less favorable than those
provided in the Notice without providing the Initial Purchaser another
opportunity to provide the same as set forth herein.
SECTION 6.18. HAZARDOUS MATERIALS; REMEDIATION. The Issuer will (i)
promptly give notice to the Holders in writing of any complaint, order,
citation, notice or other written communication from any Person with respect to,
or if any Obligor becomes aware of, (x) the existence or alleged existence of a
violation of any applicable Environmental Law or the incurrence of any
liability, obligation, loss, damage, cost, expense, fine, penalty or sanction or
the requirement to commence any remedial action resulting from or in connection
with any air emission, water discharge, noise emission, Hazardous Material or
any other environmental, health or safety matter at, upon, under or within any
of the properties now or previously owned, leased or operated by any Obligor, or
due to the operations or activities of any Obligor or any other Person on or in
connection with any such property or any part thereof, or (y) any release on any
of such properties of Hazardous Materials in a quantity that is reportable under
any applicable Environmental Law; (ii) promptly comply, subject to Permitted
Contests, with any governmental requirements requiring the removal, treatment or
disposal of such Hazardous Materials or Hazardous Materials Contamination and
provide evidence satisfactory to the Required Holders of such compliance; and
(iii) provide the Holders, within 30 days after demand therefor by the Required
Holders, with a bond, letter of credit or similar financial assurance evidencing
to the satisfaction of the Required Holders that sufficient funds are available
to pay the cost of removing, treating and disposing of such Hazardous Materials
or Hazardous Materials Contamination and discharging any assessment which may be
established on any such property as a result thereof where the projected cost
thereof exceeds $100,000.
SECTION 6.19. BOARD MEETINGS. The Issuer and the Parent will notify
the Holders of all meetings and actions by written consent of the board of
directors of the Parent and each committee thereof at the same time and in the
same manner as notice of any meetings of such board or committee is required to
be given to its directors who do not waive such notice (or, if such action
requires no notice, then 10 days written notice thereof describing the matters
upon which action is to be taken). All meetings of the board of directors of the
Issuer or each committee thereof shall be held on the same day and in the same
location as the analogous meeting of the board of directors of the Parent or
relevant committee thereof, as the case may be. The Holders shall have the right
to send two representatives selected by them to each such meeting, who shall be
permitted to attend such meeting and any adjournments thereof (other than any
portion of such meeting devoted to discussion of the Holders solely in their
respective capacities as holders of the Notes).
SECTION 6.20. ENFORCEMENT OF COVENANTS NOT TO COMPETE AND MATERIAL
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CONTRACTS. Each Obligor shall preserve, protect and defend, to the extent
permitted by applicable law, all of its rights, if any, with respect to any
covenant not to compete and other material provisions contained in any of the
material contracts of such Person or contained in any employment agreement with
any employee whose annual salary and other compensation payable by any Obligor
is $50,000 or more.
SECTION 6.21. LANDLORD AND WAREHOUSEMAN WAIVERS. The Issuer shall
use its best efforts to deliver to the Collateral Agent waivers of contractual
and statutory landlord's, mortgagee's and warehouseman's Liens in form and
substance satisfactory to the Collateral Agent under each existing lease,
warehouse agreement or similar agreement to which any Obligor is a party;
provided that such waivers will in any event be incorporated when the existing
lease, warehouse agreement or similar agreement is amended, renewed or extended
and the Obligors will obtain waivers of both contractual and statutory
landlord's, mortgagee's and warehouseman's Liens in form and substance
satisfactory to the Collateral Agent in connection with each new lease,
warehouse agreement or similar agreement entered into by any Obligor.
SECTION 6.22. MORTGAGES ON REAL PROPERTY; TITLE INSURANCE AND
SURVEY. Within thirty (30) days after the acquisition of any real property
having a fair market value in excess of $100,000 by any Obligor, such Obligor
will furnish the Collateral Agent with a Mortgage covering each parcel of real
property acquired by such Obligor (the "REAL PROPERTY"), together with an ALTA
extended coverage lender's policy of title insurance in a policy amount equal to
100% of the greater of (i) purchase price of such acquired property (including
any liabilities assumed in connection with the acquisition) or (ii) the fair
market value of such property, insuring such Mortgage as a valid, enforceable
first Lien on the Obligor's interest in the Real Property covered thereby,
subject only to Permitted Liens and to such other exceptions as are satisfactory
to the Collateral Agent, together with an ALTA survey with respect to each
parcel of the Real Property acquired, in form and substance reasonably
satisfactory to the Collateral Agent, and legible copies of all documents
affecting title, which shall show all recording information. The policy,
including each of the exceptions to coverage contained therein, shall be subject
to the approval of the Collateral Agent, and shall be issued by a title company
acceptable to the Collateral Agent. Attached to the policy shall be any and all
endorsements reasonably required by the Collateral Agent, including (a) a
comprehensive endorsement (ALTA 100 or equivalent) covering restrictions and
other matters, (b) a broad form zoning endorsement, which specifically ensures
that applicable parking requirements, if any, have been satisfied, (c) an
endorsement ensuring that the lien of each Mortgage is valid against any
applicable usury laws or other laws prohibiting the charging of interest on
interest in the state(s) where such Real Property is located, (d) an endorsement
ensuring that the Real Property has access to a dedicated public street, (e) a
revolving credit endorsement, (f) a contiguity endorsement, (g) a survey and
"same as" endorsement, and (h) an endorsement deleting the so-called "doing
business" exclusion.
SECTION 6.23. ADDITIONAL SUBSIDIARIES. Promptly after the creation
or acquisition of any Subsidiary by any Obligor, such Obligor shall execute and
deliver or cause to be executed and delivered, (i) such documents required in
order to cause such Subsidiary to become an Obligor hereunder, (ii) a Security
Agreement from such Subsidiary, (iii) a pledge of all of the capital stock of
such Subsidiary pursuant to a Pledge Agreement from the parent of
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such Subsidiary, and (iv) such other related stock powers, financing statements,
opinions of counsel and other documents as the Collateral Agent may request, all
in form and substance reasonably satisfactory to the Collateral Agent.
SECTION 6.24. ACCREDITATION AND LICENSING. Each Obligor shall keep
itself fully licensed with all licenses required to operate such Person's
business under applicable law and maintain such Person's qualification for
participation in, and payment under, Medicare, Medicaid, CHAMPUS, CHAMPVA and
any other federal, state or local governmental program or private program
providing for payment or reimbursement for services rendered by such Person,
except to the extent that the loss or relinquishment of such qualification would
not or could not reasonably be expected to have or result in a Material Adverse
Effect; PROVIDED, HOWEVER, that nothing in this Agreement shall require any
Obligor to participate in the CHAMPUS or CHAMPVA programs if it elects not to
accept patients covered by such programs. The Issuer will promptly furnish the
Collateral Agent and the Holders with copies of all reports and correspondence
relating to any loss or revocation (or threatened loss or revocation) of any
qualification described in this Section.
SECTION 6.25. ISSUANCE OF ADDITIONAL NOTES. If the Issuer is
prohibited from paying all or any portion of a cash payment of interest pursuant
to the Intercreditor Agreement, the Issuer shall issue a note for such unpaid
interest on the same terms and conditions of the other Notes issued pursuant
hereto (except that interest accruing under such note shall not be payable in
cash until the Senior Debt Termination Date), such note an "ADDITIONAL NOTE."
SECTION 6.26. INTEREST RATE CONTRACTS. No later than October 16,
2000, the Issuer shall obtain, and shall thereafter cause to be maintained for a
period of not less than three years, one or more Interest Rate Contracts with
respect to the Senior Debt, covering an aggregate notional amount of not less
than one-half of the maximum principal amount of the Senior Debt and otherwise
on terms reasonably acceptable to the Holders.
SECTION 6.27. POST-CLOSING DELIVERIES AND REQUIREMENTS. Each Obligor
shall fulfill the requirements of, take such actions as set forth in, and
deliver or cause to be delivered the items required in, the Post Closing
Undertaking, each in the time specified in the Post Closing Undertaking.
ARTICLE VII.
NEGATIVE COVENANTS
Each Obligor covenants that so long as any of the Notes are
outstanding:
SECTION 7.01. TRANSACTIONS WITH AFFILIATES; MANAGEMENT COMPENSATION.
(a) No Obligor will, directly or indirectly, enter into or permit to
exist any transaction (including the purchase, sale, lease or exchange of any
property or the rendering of any service) with any Affiliate of the Issuer, on
terms that are less favorable to such Obligor, than those which might be
obtained at the time from a Person who is not an Affiliate of the Issuer;
provided however that if the Affiliate is any Person other than a Subsidiary of
which the Parent or the Issuer beneficially owns at least 80% of the outstanding
equity securities thereof,
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and at such time the Holders have elected a Director to the Board pursuant to
the terms of the Series A Preferred Stock, the Director elected by the Holders
shall have made a determination to approve the transaction.
(b) No Obligor shall, directly or indirectly, pay or become
obligated to pay, any compensation for services in any form to or for the
account of any member of Senior Management, except in accordance with the terms
of each employment agreement for each member of Senior Management, each such
employment agreement entered into after the date of this Agreement to be in form
and substance reasonably satisfactory to the Required Holders; PROVIDED,
HOWEVER, that this SECTION 7.01 shall not restrict use of the proceeds of the
Notes to repay Xxxxxxx Xxxxxxx up to $750,000, plus accrued interest thereon,
owed by the Issuer to him pursuant to a note dated August 21, 2000.
SECTION 7.02. CONSOLIDATIONS AND MERGERS. No Obligor will, (i)
consolidate or merge with or into any other Person other than the merger of a
Subsidiary of the Issuer or Parent with and into the Issuer, with the Issuer the
surviving entity.
SECTION 7.03. LIMITATION ON ASSET SALES.
(a) The Parent shall not make any Asset Sale; and
(b) Neither the Issuer nor any Subsidiary of the Issuer or the
Parent shall make an Asset Sale unless:
(i) the proceeds of such Asset Sale are applied in accordance
with the provisions of SECTIONS 2.06 AND 6.16 hereof;
(ii) the Asset Sale is to a Person not an Affiliate of the
Parent or the Issuer and at least 85% of the value of the total proceeds thereof
consist of cash or debt assumed by a transferee, and any portion not
constituting cash is pledged or delivered to the Collateral Agent pursuant to
the Security Documents; and
(iii) no Default shall then exist or is created thereby;
PROVIDED, HOWEVER, that in no event may the Issuer or any Subsidiary
of the Issuer or the Parent sell all, or substantially all, of the Collateral.
SECTION 7.04. RESTRICTED PAYMENTS AND INVESTMENTS.
(a) No Obligor will directly or indirectly, declare, order, pay,
make or set apart any sum for any Restricted Payment; PROVIDED, THAT, the
foregoing shall not restrict or prohibit dividends or distributions by the
Issuer or the Parent at such times or in such amounts as are necessary to permit
(i) the pro rata distribution by an Obligor of Net Cash Proceeds received by
such Obligor from the sale of any partial hospitalization assets to the Issuer
and/or the Parent and the holders of the minority ownership interest in such
Obligor, or (ii) a distribution by the Issuer to the Parent in an amount not to
exceed $100,000 in any one Fiscal Year for reasonable out of pocket operating
costs and expenses.
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(b) No Obligor will acquire any assets other than in the ordinary
course of business, or make, acquire or own any Investment in any Person other
than (a) Temporary Cash Investments, and (b) Investments in Subsidiaries.
Without limiting the generality of the foregoing, no Obligor will create any
Subsidiary without the consent of the Required Holders and arrangements
satisfactory to the Required Holders for (w) such Subsidiary to become an
Obligor hereunder, (x) a pledge of the stock of such Subsidiary to the
Collateral Agent for the benefit of the Purchaser, (y) a guaranty by such
Subsidiary of the Obligations of the Issuer hereunder, and (z) a grant of a Lien
on all of the assets of such Subsidiary to the Collateral Agent for the benefit
of the Holders to secure such guaranty.
SECTION 7.05. LIMITATION ON ADDITIONAL INDEBTEDNESS. No Obligor
will, directly or indirectly, create, incur, assume, guarantee or otherwise
become or remain directly or indirectly liable with respect to, any
Indebtedness, except for:
(a) the Obligations;
(b) Indebtedness of any Obligor incurred or assumed for the purpose
of financing all or any part of the cost of acquiring any fixed asset (including
through Capital Leases), in an aggregate principal amount at any time
outstanding not greater than $350,000;
(c) Indebtedness of the Parent or the Issuer or any Subsidiary of
the Parent to the Parent or Issuer or a wholly-owned Subsidiary of the Parent or
the Issuer;
(d) Indebtedness of the Issuer incurred in connection with an
acquisition in accordance with terms and conditions of SECTION 7.04, which
Indebtedness shall be subordinated in all respects to any and all Indebtedness
of the Obligors to the Holders, upon terms and conditions satisfactory to the
Holders;
(e) Other Indebtedness of the Obligors in an aggregate principal
amount (whether fixed or contingent, drawn or undrawn) not to exceed at any time
$150,000; and
(f) the Senior Debt; PROVIDED, HOWEVER, that the aggregate amount of
the obligations incurred in respect of any Indebtedness or Guaranty by all
Obligors which constitute Senior Debt shall not exceed the Maximum Senior Debt
Amount.
SECTION 7.06. NEGATIVE PLEDGE. No Obligor will create, assume or
suffer to exist any Lien on any asset now owned or hereafter acquired by it,
except:
(a) any Lien on any asset securing Indebtedness permitted under
SECTION 7.05(b) incurred or assumed for the purpose of financing all or any part
of the cost of acquiring such asset, PROVIDED that such Lien attaches to such
asset concurrently with or within 90 days after the acquisition thereof;
(b) Liens arising in the ordinary course of its business which (i)
do not secure Indebtedness, (ii) do not secure any obligation in an amount
exceeding $150,000, and (iii) do not in the aggregate materially detract from
the value of its assets or materially impair the use thereof in the operation of
its business;
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(c) Liens created by the Security Documents; and
(d) Liens granted in connection with the Senior Debt Documents.
SECTION 7.07. RANK OF FUTURE INDEBTEDNESS. No Obligor shall incur,
create, issue, assume, guarantee or acknowledge any agreement with respect to
(i) any Indebtedness which is senior in right of payment to the Obligations
other than Senior Debt expressly permitted by SECTION 7.05(f), (ii) any other
Indebtedness (including, without limitation, Indebtedness which is PARI PASSU
with, or subordinate to, the Obligations) unless such Indebtedness is expressly
permitted by SECTION 7.05, or (iii) any Indebtedness (other than Senior Debt and
Indebtedness between Obligors permitted by SECTION 7.05) which is structurally
senior in right of payment to the Obligations.
SECTION 7.08. ACTIVITIES OF PARENT. The Parent shall not, directly
or indirectly, (i) enter into or permit to exist any transaction or agreement
(including any agreement for the incurrence or assumption of Indebtedness, any
purchase, sale, lease or exchange of any property or the rendering of any
service), between itself and any other Person, (ii) engage in any business or
conduct any activity (including the making of any Investment or payment) or
transfer any of its assets, other than Investments in the Issuer, and
performance of ministerial activities and payment of taxes and administrative
fees necessary for compliance with the next succeeding sentence, or (iii)
consolidate or merge with or into any other Person. The Parent shall further
preserve, renew and keep in full force and effect their respective corporate
existences and any rights, privileges and franchises necessary or desirable in
the conduct of their respective business, and shall comply in all material
respects with all material applicable laws, ordinances, rules, regulations and
requirements of governmental authorities. The Parent shall not have any
Subsidiaries other than the Issuer and the other Subsidiaries listed on Schedule
5.01(f)(i) as of the Closing Date.
SECTION 7.09. ERISA. No Obligor will:
(a) engage in any transaction in connection with which any Obligor
could be subject to any material liability arising from either a civil penalty
assessed pursuant to Section 502(i) of ERISA or a tax imposed by Section 4975 of
the Code;
(b) terminate any Plan in a manner, or take any other action, which
could result in any material liability of any ERISA Affiliate to the PBGC;
(c) fail to make full payment when due of all amounts which, under
the provisions of any Plan, it is required to pay as contributions thereto, or
permit to exist any accumulated funding deficiency, whether or not waived, with
respect to any Plan;
(d) permit the present value of all benefit liabilities under all
Plans to exceed the fair market value of the assets of such Plans; or
(e) fail to make any payments to any Multiemployer Plan that it may
be required to make under any agreement relating to such Multiemployer Plan or
any law pertaining thereto.
SECTION 7.10. AMENDMENTS OR WAIVERS. Without the prior written
consent of
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the Required Holders, no Obligor will agree to (i) any amendment to or waiver of
or in respect of its certificate of incorporation or Bylaws or any Note Document
(other than Security Documents being amended with the consent of the Senior
Lender); or (ii) any other material amendment to or waiver of any Material
Agreement constituting a part of the Collateral that adversely affects, impairs
or lessens any of the rights of the Holders.
SECTION 7.11. RESTRICTIONS ON SALE AND ISSUANCE OF CAPITAL STOCK. No
Obligor will issue or sell any shares of capital stock or other equity interests
except for (i) in the case of the Issuer, shares of capital stock issued by the
Issuer to the Parent which are delivered to the Collateral Agent in pledge for
the benefit of the Collateral Agent and the Holders; (ii) in the case of any
Subsidiary of the Issuer or the Parent, shares of capital stock issued by such
Subsidiary to the Issuer or Parent which are delivered to the Collateral Agent
in pledge for the benefit of the Collateral Agent and the Holders, and (iii) in
the case of any Obligor, shares of capital stock or other equity interests in a
sale or issuance not described in clause (i) or (ii) of this SECTION 7.11, if
the proceeds from any such sale or issuance are applied in accordance with
SECTIONS 2.06 AND 6.16 hereof; PROVIDED, HOWEVER, that any sale or issuance of
Preferred Stock must be on terms and conditions acceptable to the Required
Holders in their sole good faith discretion.
SECTION 7.12. CAPITATED BENEFICIARY ADJUSTMENTS; PUBLIC CONTRACTS
CAPITATION RISK.
(a) Without the prior written consent of the Required Holders, APS
will not agree to any amendment to, or waiver of, any provision related to the
Capitated Beneficiary Adjustment Payment or the calculation of such Capitated
Beneficiary Adjustment Payment in the PHC Service Agreement or the PHC Purchase
Agreement that adversely affects, impairs or lessens any of the rights of the
Holders; and
(b) Without the prior written consent of the Required Holders, no
Obligor will become party to any public sector Service Agreement or other
contract pursuant to which it becomes liable for all or any portion of any
capitation risk if the annual gross revenues generated in connection with such
Service Agreement or contract could, in the good faith judgment of the Required
Holders, equal or exceed $8,000,000.
SECTION 7.13. FISCAL YEAR. The Issuer shall not change its fiscal
year from a fiscal year ending December 31.
SECTION 7.14. TOTAL DEBT SERVICE COVERAGE RATIO. The Parent shall
not permit the ratio determined as of the last day of any calendar month of (i)
Consolidated Free Cash Flow to (ii) Total Debt Service, in each case for the
twelve-month period then ended (PROVIDED, HOWEVER, that in making such
calculation there shall be excluded any period of time prior to July 1, 2000) to
be less than 1.00 to 1.00; PROVIDED, HOWEVER, that in calculating this financial
covenant there shall be excluded from Total Debt Service the Senior Debt
principal amortization payment scheduled to be paid on July 1, 2000. In
calculating compliance with this SECTION 7.14, Consolidated Capital Expenditures
for any period shall be calculated as (a) for periods through December 31, 2000,
the lesser of (i) 83,333 per month and (ii) actual Consolidated Capital
Expenditures for such period; and (b) for the periods from and after January 1,
2001, actual
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Consolidated Capital Expenditures for each month.
SECTION 7.15. MINIMUM EBITDA. The Parent shall not at any time
during any period specified below permit Consolidated EBITDA for the twelve
month period most recently ended (provided, however, that in making such
calculation, there shall be excluded any period of time prior to July 1, 2000),
to be less than the amount set forth opposite such period below:
PERIOD ENDING CONSOLIDATED EBITDA
------------- -------------------
July 31, 2000 $435,000
August 31, 2000 $814,000
September 30, 2000 $1,339,000
October 31, 2000 $1,766,000
November 30, 2000 $2,194,000
December 31, 2000 $2,592,000
January 31, 2001 $3,205,000
February 28, 2001 $3,783,000
March 31, 2001 $3,983,000
April 30, 2001 $4,486,000
May 31, 2001 $4,968,000
June 30, 2001 $5,651,000
July 31, 2001 $5,815,000
August 31, 2001 $5,958,000
September 30, 2001 $6,010,000
October 31, 2001 $6,103,000
November 30, 2001 $6,201,000
December 31, 2001 $6,335,000
January 31, 2002 $6,335,000
February 28, 2002 $6,335,000
March 31, 2002 $6,569,000
April 30, 2002 $6,618,000
May 31, 2002 $6,694,000
June 30, 2002 $6,575,000
July 31, 2002 $6,612,000
August 31, 2002 $6,599,000
September 30, 2002 $6,603,000
October 31, 2002 $6,669,000
November 30, 2002 $6,736,000
December 31, 2002 $6,803,000
At any time thereafter $6,825,000
SECTION 7.16. RESTRICTIVE AGREEMENTS. The Parent and the Issuer will
not, and will not permit any of its Subsidiaries to, enter into any agreement
(excluding this Agreement, the Intercreditor Agreement and any other Note
Document) prohibiting the ability of any Subsidiary to make any payments,
directly or indirectly, to the Issuer by way of dividends, advances, repayments
of loans or advances, reimbursements of management and other intercompany
charges, expenses and accruals or other returns on investments, or any other
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agreement or arrangement which restricts the ability of any such Subsidiary to
make any payment, directly or indirectly, to the Issuer; PROVIDED, HOWEVER, that
the Senior Debt Documents may not prohibit dividends and distributions from any
Subsidiary to the Issuer to enable the Issuer to make payments permitted under
the provisions of the Intercreditor Agreement.
SECTION 7.17. EQUITY SECURITIES ISSUANCES TO EMPLOYEES AND
MANAGEMENT. Parent shall not issue shares of Common Stock, Preferred Stock,
options, warrants or any other equity securities to any employee or member of
management of any Obligor for a purchase or exercise price less than fair market
value as determined by independent members of the Parent's board of directors.
SECTION 7.18. SEGREGATED ACCOUNT. No Obligor will make withdrawals
from the account covered by the Segregated Account Agreement unless such
withdrawal is to be used for general corporate purposes (which shall not include
payment of the Senior Debt unless such payment is in accordance with the
Intercreditor Agreement).
ARTICLE VIII.
EVENTS OF DEFAULT AND REMEDIES
SECTION 8.01. EVENTS OF DEFAULT. An "EVENT OF DEFAULT" shall exist
if any of the following conditions or events shall occur and be continuing:
(a) any Obligor defaults in the payment of any principal on any Note
when the same becomes due and payable, whether at maturity or at a date fixed
for prepayment or by declaration or otherwise; or
(b) any Obligor defaults in the payment of any interest on any Note
or any other amount due under this Agreement in full, for more than five
Business Days after the same becomes due and payable; or
(c) any Obligor defaults in the performance of or compliance with
any term contained in ARTICLE VII or in SECTIONS 6.04, 6.08, 6.09, 6.10 OR 6.14.
(d) any Obligor defaults in the performance of or compliance with
any term contained in ARTICLE VI (other than those contained in SECTIONS 6.04,
6.08, 6.09, 6.10 OR 6.14) or in any Security Document (if such default or
non-compliance adversely affects all or substantially all of the Collateral) and
such default is not remedied within 10 Business Days after the earlier of (i) a
Responsible Officer of such Obligor obtaining actual knowledge of such default
and (ii) such Obligor receiving written notice of such default from any Holder
of a Note (any such written notice to be identified as a "notice of default" and
to refer specifically to this paragraph (c) of SECTION 8.01); or
(e) any Obligor defaults in the performance of or compliance with
any term contained herein (other than those referred to in paragraphs (a), (b)
(c) and (d) of this SECTION 8.01) or in any other Note Document (other than any
Security Document) and such default is not remedied within 30 days after the
earlier of (i) a Responsible Officer of such
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Obligor obtaining actual knowledge of such default and (ii) such Obligor
receiving written notice of such default from any Holder of a Note (any such
written notice to be identified as a "notice of default" and to refer
specifically to this paragraph (d) of SECTION 8.01); or
(f) any representation or warranty made in writing by or on behalf
of any Obligor or by any officer of any Obligor in any Security Document as of
the date hereof or in any other Note Document at any time or in any writing
furnished in connection with the transactions contemplated hereby proves to have
been false or incorrect in any material respect on the date as of which made; or
(g) (i) any Obligor is in default (as principal or as guarantor or
other surety) in the payment of any principal of or premium or make-whole amount
or interest on any Indebtedness (other than the Senior Debt) that is outstanding
in an aggregate principal amount of at least $150,000 beyond any period of grace
provided with respect thereto, or (ii) any Obligor is in default in the
performance of or compliance with any term of any evidence of any Indebtedness
(other than Senior Debt) in an aggregate outstanding principal amount of at
least $150,000 or of any mortgage, indenture or other agreement relating thereto
or any other condition exists, and as a consequence of such default or condition
such Indebtedness has become, or has been declared (or one or more Persons are
entitled to declare such Indebtedness to be), due and payable before its stated
maturity or before its regularly scheduled dates of payment, or (iii) as a
consequence of the occurrence or continuation of any event or condition (other
than the passage of time or the right of the Holder of Indebtedness to convert
such Indebtedness into equity interests), (x) any Obligor has become obligated
to purchase or repay Indebtedness (other than Senior Debt) before its regular
maturity or before its regularly scheduled dates of payment in an aggregate
outstanding principal amount of at least $150,000, or (y) one or more Persons
have the right to require any Obligor so to purchase or repay such Indebtedness
(other than Senior Debt); or
(h) any Obligor shall be prohibited or otherwise materially
restrained from conducting the business theretofore conducted by it by virtue or
any determination, ruling, decision, decree or order of any court or
Governmental Authority of competent jurisdiction and such determination, ruling,
decision, decree or order remains unstayed and in effect for any period of 10
days beyond any period for which any business interruption insurance policy of
the Obligors shall provide full coverage to such Person of any losses and lost
profits; or
(i) any Obligor (i) is generally not paying, or admits in writing
its inability to pay, its debts as they become due, (ii) files, or consents by
answer or otherwise to the filing against it of, a petition for relief or
reorganization or arrangement or any other petition in bankruptcy, for
liquidation or to take advantage of any bankruptcy, insolvency, reorganization,
moratorium or other similar law of any jurisdiction, (iii) makes a general
assignment for the benefit of its creditors, (iv) consents to the appointment of
a custodian, receiver, trustee or other officer with similar powers with respect
to it or with respect to any substantial part of its property, (v) is
adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for
the purpose of any of the foregoing; or
(j) any material obligation of any Obligor in any Note Document
(other than the Security Documents) shall, for any reason, not be or shall cease
to be in full force and effect
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except as provided herein or therein or shall be declared null and void or any
Security Documents shall not give or shall cease to give the Collateral Agent
the Liens, rights, powers and privileges with respect to the Collateral
purported to be created thereby in favor of the Collateral Agent superior to and
prior to the rights of all third Persons (except to the extent expressly
permitted herein or therein) other than by actions of the Purchaser, PROVIDED
that no such defect in the Note Documents shall give rise to an Event of Default
under this clause (j) unless such defect or failure shall affect Collateral that
is or should be subject to a Lien in favor of the Purchaser having an aggregate
value in excess of $50,000.
(k) a court or governmental authority of competent jurisdiction
enters an order appointing, without consent by the applicable Obligor, a
custodian, receiver, trustee or other officer with similar powers with respect
to it or with respect to any substantial part of its property, or constituting
an order for relief or approving a petition for relief or reorganization or any
other petition in bankruptcy or for liquidation or to take advantage of any
bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution,
winding-up or liquidation of any Obligor, or any such petition shall be filed
against any Obligor and such petition shall not be dismissed within 60 days; or
(l) a judgment or an order for the payment of money which when
aggregated with other such judgments or orders equals or exceeds in excess of
$350,000 is rendered against one or more of the Obligors and such judgment or
order is not, within 10 days after entry thereof, bonded, discharged or stayed
pending appeal, or are not discharged within 10 days after the expiration of
such stay or any judgment shall be rendered against any Obligor that exceeds by
more than $150,000 any insurance coverage applicable thereto; or
(m) if (i) any Plan shall fail to satisfy the minimum funding
standards of ERISA or the Code for any plan year or part thereof or a waiver of
such standards or extension of any amortization period is sought or granted
under section 412 of the Code, (ii) a notice of intent to terminate any Plan
shall have been or is reasonably expected to be filed with the PBGC or the PBGC
shall have instituted proceedings under ERISA section 4042 to terminate or
appoint a trustee to administer any Plan or the PBGC shall have notified any
Obligor or any ERISA Affiliate that a Plan may become a subject of any such
proceedings, (iii) the aggregate "amount of unfunded benefit liabilities"
(within the meaning of section 4001(a)(18) of ERISA) under all Plans, determined
in accordance with Title IV of ERISA, shall exceed $500,000, (iv) any Obligor or
any ERISA Affiliate shall have incurred or is reasonably expected to incur any
liability pursuant to Title I or IV of ERISA or the penalty or excise tax
provisions of the Code relating to employee benefit plans, (v) any Obligor or
any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) any Obligor
establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that would increase the liability
of such Obligor thereunder; and any such event or events described in clauses
(i) through (vi) above, either individually or together with any other such
event or events, could reasonably be expected to have a Material Adverse Effect.
As used in this SECTION 8.01(j), the terms "EMPLOYEE BENEFIT PLAN" and "EMPLOYEE
WELFARE BENEFIT PLAN" shall have the respective meanings assigned to such terms
in Section 3 of ERISA; or
(n) except as the result of any transfer made pursuant to a pledge
of stock under
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the Security Documents, the Parent shall fail at any time to be the record and
beneficial owner of 100% of the issued and outstanding capital stock of the
Issuer, free and clear of any Lien, or the Issuer or any other Obligor shall
sell, transfer or otherwise dispose of (including by way of sale of capital
stock or other equity interests) all or substantially all of the assets or
interests of the Persons listed on Schedule 5.01(f)(ii), taken in the aggregate,
or the Issuer shall fail at any time to be the record and beneficial owner of
100% of the issued and outstanding capital stock of any Subsidiary formed or
acquired after the Closing Date, in each case free and clear of any Lien; or
(o) the auditor's report or reports on the audited statements
delivered pursuant to SECTION 6.01 shall include any material qualification
(including with respect to the scope of audit) or exception or any adverse
statement as to the ability of the Parent or the Issuer to continue as a going
concern; or
(p) any of the Note Documents shall for any reason fail to
constitute the valid and binding agreement of any Obligor to the extent
described in SECTION 5.01(b), or any such party shall so assert in writing; or
(q) a case or other proceeding shall be commenced against either
Coventry Health Care or Priority under any bankruptcy, insolvency or other
similar law or either Coventry Health Care or Priority shall voluntarily
commence such case or other proceeding; any event shall occur which renders
either Coventry Health Care or Priority insolvent or could reasonably be
expected to have a material adverse effect on the credit worthiness of such
Person; either Coventry Health Care or Priority shall terminate the Service
Agreement to which it is a party or challenge the legality, validity or binding
effect of such Service Agreement or any material provision thereof; or any other
event occurs or condition exists which in the sole judgment of the Required
Holders could reasonably be expected to have a material adverse effect on the
financial condition, operations, business, properties or prospects of Coventry
Health Care or Priority; or
(r) any "Event of Default" under the Senior Debt Documents resulting
from the failure of the Obligors to pay, on a timely basis, any principal,
interest or periodic fees due and owing to Senior Lender under the Senior Debt
Documents including, without limitation, any default in payment of Senior Debt
after acceleration thereof; or
(s) any Obligor is in default in the performance of or compliance
with any term of the Senior Debt, and as a consequence of such default or
condition such Indebtedness has become due and payable before its stated
maturity or before its regularly scheduled dates of payment; or
(t) any default has occurred and is continuing under or with respect
to any Material Agreement or other material instrument to which an Obligor is a
party or by which an Obligor's property is bound or affected and such default
adversely affects, impairs or lessens any of the rights of the Holders.
SECTION 8.02. REMEDIES ON EVENT OF DEFAULT, ETC.
(a) Acceleration.
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(i) If an Event of Default with respect to any Obligor
described in paragraph (i) or (k) of SECTION 8.01 (other than an Event of
Default described in clause (i) of paragraph (i) or described in clause (vi) of
paragraph (i) by virtue of the fact that such clause encompasses clause (i) of
paragraph (i)) has occurred, all the Notes then outstanding shall automatically
become immediately due and payable.
(ii) If any Event of Default described in paragraph (a) or (b)
of SECTION 8.01 has occurred and is continuing, any Holder or Holders of Notes
at the time outstanding affected by such Event of Default may at any time, at
its or their option, by notice or notices to each Obligor, declare all the Notes
held by it or them to be immediately due and payable.
(iii) If any other Event of Default has occurred and is
continuing, the Required Holders may at any time at its or their option, by
notice or notices to each Obligor, declare all the Notes then outstanding to be
immediately due and payable.
Upon any Notes becoming due and payable under this SECTION 8.02,
whether automatically or by declaration, such Notes will forthwith mature and
the entire Unpaid Principal Amount of such Notes, plus all accrued and unpaid
interest thereon and any premium or additional payment which would then be due
(to the full extent permitted by Governing Law), shall all be immediately due
and payable, in each and every case without presentment, demand, protest or
further notice, all of which are hereby waived.
(b) SERIES A PREFERRED STOCK ELECTION OF A MEMBER OF THE BOARD OF
DIRECTORS. If any Default or Event of Default has occurred the Holders, owning
all outstanding shares of Series A Preferred Stock of the Issuer, shall be
entitled, pursuant to the terms of the Series A Preferred Stock, to immediately
elect one member of the Board of Directors of the Issuer who shall be in
addition to the regular members of the Board of Directors elected by holders of
the Common Stock and other classes of Preferred Stock.
(c) OTHER REMEDIES. If any Default or Event of Default has occurred
and is continuing, and irrespective of whether any Notes have become or have
been declared immediately due and payable under SECTION 8.02(a), the Purchaser,
pursuant to directions of the Required Holders, may proceed to protect and
enforce the rights of such Holder by an action at law, suit in equity or other
appropriate proceeding, whether for the specific performance of any agreement
contained herein or in any Note, or for an injunction against a violation of any
of the terms hereof or thereof, or in aid of the exercise of any power granted
hereby or thereby or by law or otherwise.
(d) RESCISSION. At any time after any Notes have been declared due
and payable pursuant to clause (a)(i) or (a)(ii) of SECTION 8.02, the Required
Holders, by written notice to each Obligor, may rescind and annul any such
declaration and its consequences if (a) each Obligor has paid all overdue
interest on the Notes, all principal of any Notes that are due and payable and
are unpaid other than by reason of such declaration, all interest on such
overdue principal and (to the extent permitted by Governing Law) any overdue
interest in respect of the Notes, at the Default Rate, (b) all Events of Default
and Defaults, other than non-payment of amounts that have become due solely by
reason of such declaration, have been cured or have been waived pursuant
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to SECTION 9.03, and (c) no judgment or decree has been entered for the payment
of any monies due pursuant hereto or to the Notes. No rescission and annulment
under this SECTION 8.02(d) will extend to or affect any subsequent Event of
Default or Default or impair any right consequent thereon.
(e) NO WAIVERS OR ELECTION OF REMEDIES, EXPENSES, ETC. No course of
dealing and no delay on the part of any Holder of any Note in exercising any
right, power or remedy shall operate as a waiver thereof or otherwise prejudice
such Holder's rights, powers or remedies. No right, power or remedy conferred by
this Agreement or by any Note upon any Holder thereof shall be exclusive of any
other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the
obligations of each Obligor under SECTION 9.01, each Obligor will pay to the
Holder of each Note on demand such further amount as shall be sufficient to
cover all costs and expenses of such Holder incurred in any enforcement or
collection under this SECTION 8.02, including, without limitation, reasonable
attorneys' fees, expenses and disbursements.
ARTICLE IX.
MISCELLANEOUS
SECTION 9.01. EXPENSES, ETC. Whether or not the transactions
contemplated hereby are consummated, each Obligor agrees, jointly and severally
to pay all costs and expenses (including reasonable attorneys' fees of a special
counsel and, if reasonably required, local or other counsel) incurred by the
Purchaser or Holder of a Note in connection with such transactions and in
connection with any amendments, waivers or consents under or in respect of this
Agreement, the Notes or other Note Documents (whether or not such amendment,
waiver or consent becomes effective), including, without limitation: (a) the
costs and expenses incurred in enforcing or defending (or determining whether or
how to enforce or defend) any rights under this Agreement, the Notes or other
Note Documents or in responding to any subpoena or other legal process or
informal investigative demand issued in connection with this Agreement, the
Notes or other Note Documents, or by reason of being a Holder of any Note, and
(b) the costs and expenses, including financial advisors' fees, incurred in
connection with the insolvency or bankruptcy of any Obligor or in connection
with any work-out or restructuring of the transactions contemplated hereby and
by the Notes and other Note Documents. Each Obligor will pay, and will save each
Holder harmless from, all claims in respect of any fees, costs or expenses if
any, of brokers and finders (other than those retained by such Holder). The
obligations of each Obligor under this SECTION 9.01 will survive the payment or
transfer of any Note, the enforcement, amendment or waiver of any provision of
this Agreement, the Notes or other Note Documents, and the termination of this
Agreement.
SECTION 9.02. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE
AGREEMENT. All representations and warranties contained herein shall survive the
execution and delivery of this Agreement and the Notes, the purchase or transfer
by any Holder of any Note or portion thereof or interest therein and the payment
of any Note, and may be relied upon by any subsequent Holder of a Note,
regardless of any investigation made at any time by or on behalf of any Holder.
All statements contained in any certificate or other instrument delivered by or
on
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behalf of each Obligor pursuant to this Agreement shall be deemed
representations and warranties of each Obligor under this Agreement. Subject to
the preceding sentence, this Agreement, the Notes and the other Note Documents
embody the entire agreement and understanding between each Holder and each
Obligor and supersede all prior agreements and understandings relating to the
subject matter hereof.
SECTION 9.03. AMENDMENT AND WAIVER.
(a) REQUIREMENTS. This Agreement, the Notes and the other Note
Documents may be amended, and the observance of any term hereof or thereof or of
the Notes may be waived (either retroactively or prospectively), with (and only
with) the written consent of each Obligor and the Required Holders, except that
no amendment or waiver of any of the provisions of SECTIONS 2.01, 4.01, 4.02 OR
9.07 hereof, or any defined term (as it is used therein), will be effective as
to any Holder unless consented to by such Holder in writing, and no such
amendment or waiver may, without the written consent of all Holders affected
thereby, subject to the provisions of SECTION 8.02 relating to acceleration or
rescission, change the amount or time of any prepayment or payment of principal
of, or reduce the rate or change the time of payment or method of computation of
interest on, the Notes, change the percentage of the principal amount of the
Notes the Holders of which are required to consent to any such amendment or
waiver, or amend any of SECTIONS 8.01(a), 8.01(b), 8.02, 9.03 OR 9.06. Any
amendment, modification, termination, waiver or consent with respect to any of
the following provisions of this Agreement shall be effective only by a written
agreement, signed by each Holder:
(i) release of any Guarantor of the Obligations or all or a
substantial portion of the Collateral (except as provided in SECTION 3.08),
(ii) waiver of any Event of Default described in SECTION 8.01.
(b) DELIVERY OF AMENDMENTS, WAIVERS, ETC. Each Obligor will deliver
executed or true and correct copies of each amendment, waiver or consent
effected pursuant to the provisions of this SECTION 9.03 to each Holder of
outstanding Notes promptly following the date on which it is executed and
delivered by, or receives the consent or approval of, the Required Holders.
(c) PAYMENT. Each Obligor will not directly or indirectly pay or
cause to be paid any remuneration, whether by way of supplemental or additional
interest, fee or otherwise, or grant any security, to any Holder of Notes as
consideration for or as an inducement to the entering into by any Holder of
Notes or any waiver or amendment of any of the terms and provisions hereof
unless such remuneration is concurrently paid, or security is concurrently
granted, on the same terms, ratably to each Holder of Notes then outstanding
even if such Holder did not consent to such waiver or amendment.
(d) BINDING EFFECT, ETC. Any amendment or waiver consented to as
provided in this Section 9.03 applies equally to all Holders of Notes and is
binding upon them and upon each future Holder of any Note and upon each Obligor
without regard to whether such Note has been marked to indicate such amendment
or waiver. No such amendment or waiver will extend to or affect any obligation,
covenant, agreement, Default or Event of Default not expressly amended
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or waived or impair any right consequent thereon. No course of dealing between
each Obligor and the Holder of any Note nor any delay in exercising any rights
hereunder or under any Note shall operate as a waiver of any rights of any
Holder of such Note.
(e) NOTES HELD BY EACH OBLIGOR, ETC. Solely for the purpose of
determining whether the Holders of the requisite percentage of the aggregate
principal amount of Notes then outstanding approved or consented to any
amendment, waiver or consent to be given under this Agreement or the Notes, or
have directed the taking of any action provided herein or in the Notes to be
taken upon the direction of the Holders of a specified percentage of the
aggregate principal amount of Notes then outstanding, Notes directly or
indirectly owned by each Obligor or any of its Affiliates shall be deemed not to
be outstanding.
SECTION 9.04. NOTICES. All notices and communications provided for
hereunder shall be in writing and deemed given or delivered when delivered
personally or sent by telecopy if the sender on the same day sends a confirming
copy of such notice by a recognized overnight delivery service (charges
prepaid), or by registered or certified mail with return receipt requested
(postage prepaid), or by a recognized overnight delivery service (with charges
prepaid) and addressed as follows (or at such other address for a party as shall
be specified in a notice given in accordance with this SECTION 9.04):
(a) if to any Obligor, to it care of:
American Psych Systems Holdings, Inc.
0000 Xxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxx Xxxxxxx and Xxxxxxx XxXx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
with a copy to:
Mintz, Levin, Cohn, Ferris, Glovesky & Popeo
00000 Xxxxxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxx, Esq.
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
if to the Purchaser, to it care of:
Canyon Capital Advisors LLC
0000 Xxxxxxxx Xxxxxxxxx
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000
Attention: Xxxxx Xxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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with a copy to:
Sidley & Austin
000 Xxxx Xxxxx Xxxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxx X. Xxxxx, Esq.
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
(b) if to any other Holder, to its address shown on the Note
register to be maintained by the Issuer, on behalf of the Issuer, pursuant to
SECTION 2.02.
Notices under this SECTION 9.04 will be deemed given only when
actually received.
SECTION 9.05. REPRODUCTION OF DOCUMENTS. This Agreement and all
documents relating thereto, including, without limitation, (a) consents, waivers
and modifications that may hereafter be executed, (b) documents received by the
Purchaser at the Closing (except the Notes themselves), and (c) financial
statements, certificates and other information previously or hereafter furnished
to any Holder, may be reproduced by the Holders by any photographic,
photostatic, microfilm, microcard, miniature photographic or other similar
process and each Holder may destroy any original document so reproduced. Each
Obligor agrees and stipulates that, to the extent permitted by Governing Law,
any such reproduction shall be admissible in evidence as the original itself in
any judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by any Holder in the
regular course of business) and any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence. This
SECTION 9.05 shall not prohibit each Obligor or any other Holder of Notes from
contesting any such reproduction to the same extent that it could contest the
original, or from introducing evidence to demonstrate the inaccuracy of any such
reproduction.
SECTION 9.06. CONFIDENTIAL INFORMATION. For the purposes of this
SECTION 9.06, "CONFIDENTIAL INFORMATION" means information delivered to any
Holder by or on behalf of each Obligor in connection with the transactions
contemplated by or otherwise pursuant to this Agreement that is proprietary in
nature and that was clearly marked or labeled or otherwise adequately identified
when received by such Holder as being confidential information of each Obligor,
PROVIDED that such term does not include information that (a) was publicly known
to any Holder prior to the time of such disclosure, (b) subsequently becomes
publicly known through no act or omission by any Holder or any Person acting on
behalf of any Holder, (c) otherwise becomes known to any Holder other than
through disclosure by each Obligor or its representatives or (d) constitutes
financial statements delivered to any Holder under SECTION 6.01 that are
otherwise publicly available. Each Holder will maintain the confidentiality of
such Confidential Information in accordance with procedures adopted by such
Holder in good faith to protect confidential information of third parties
delivered to such Holder, PROVIDED that each Holder may deliver or disclose
Confidential Information to its (i) directors, officers, employees, agents,
attorneys and affiliates (to the extent such disclosure reasonably relates to
the administration of the investment represented by its Notes), (ii) financial
advisors and other
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professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this SECTION 9.06,
(iii) any other Holder of any Note, (iv) any Person to which such Holder sells
or offers to sell such Note or any part thereof or any participation therein (if
such Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this SECTION 9.06), (v) any Person
from which such Holder offers to purchase any security of each Obligor (if such
Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this SECTION 9.06), (vi) any
federal or state regulatory authority having jurisdiction over such Holder,
(vii) any nationally recognized rating agency that requires access to
information about such Holder's investment portfolio or (viii) any other Person
to which such delivery or disclosure may be necessary or appropriate (w) to
effect compliance with any Requirement of Law applicable to such Holder, (x) in
response to any subpoena or other legal process, (y) in connection with any
litigation to which such Holder is a party or (z) if an Event of Default has
occurred and is continuing, to the extent such Holder may reasonably determine
such delivery and disclosure to be necessary or appropriate in the enforcement
or for the protection of the rights and remedies under such Holder's Notes and
this Agreement. Each Holder of a Note, by its acceptance of a Note, will be
deemed to have agreed to be bound by and to be entitled to the benefits of this
SECTION 9.06 as though it were a party to this Agreement. On reasonable request
by each Obligor in connection with the delivery to any Holder of a Note of
information required to be delivered to such Holder under this Agreement or
requested by such Holder (other than a Holder that is a party to this Agreement
or its nominee), such Holder will enter into an agreement with each Obligor
embodying the provisions of this SECTION 9.06.
SECTION 9.07. TRANSFERS OF NOTES. Subject to the requirements of the
Intercreditor Agreement and SECTION 2.03(a) hereof, the Purchaser and any
subsequent Holder shall have the right to transfer (i) any amount of Notes held
by any such Person to any Affiliate or any Affiliated Investor, or (ii) Notes in
a principal amount of at least Two Million Five Hundred Thousand Dollars
($2,500,000) to any other Person, by written notice to each Obligor, which
notice shall be signed by both the Purchaser and such transferee, shall contain
such transferee's agreement to be bound by this Agreement and the Notes shall
contain a confirmation by such transferee of the accuracy with respect to it of
the representations set forth in SECTION 5.02. As a condition to any transfer of
a Note, the Issuer may require appropriate documentation to evidence compliance
with applicable securities laws, including an opinion of counsel with respect
thereto. Upon receipt of such notice, wherever the word "Purchaser" or "Holder"
is used in this Agreement (other than in this SECTION 9.07), such word shall be
deemed to refer to such transferee in lieu of the Purchaser or such Holder, as
the case may be. No transfer of any Note shall relieve the transferring Holder
of its obligations under SECTION 9.06.
SECTION 9.08. SUCCESSORS AND ASSIGNS. All covenants and other
agreements contained in this Agreement by or on behalf of any of the parties
hereto bind and inure to the benefit of their respective successors and assigns
(including, without limitation, any subsequent Holder of a Note) whether so
expressed or not.
SECTION 9.09. SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and
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any such prohibition or unenforceability in any jurisdiction shall (to the full
extent permitted by law) not invalidate or render unenforceable such provision
in any other jurisdiction.
SECTION 9.10. CONSTRUCTION. Each covenant contained herein shall be
construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person.
SECTION 9.11. COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which shall be an original but all of which
together shall constitute one instrument. Each counterpart may consist of a
number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto.
SECTION 9.12. GOVERNING LAW. This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by,
the law of the State of
New York excluding choice-of-law principles of the law
of such State that would require the application of the laws of a jurisdiction
other than such State.
SECTION 9.13. INDEMNIFICATION. The Issuer hereby indemnifies and
agrees to defend and hold harmless each Holder and its directors, officers,
agents, employees and counsel from and against any and all losses, claims,
damages, liabilities, deficiencies, judgments or expenses incurred by any of
them (except to the extent that it is finally judicially determined to have
resulted from its own gross negligence or willful misconduct) arising out of or
by reason of (a) any actual or proposed use by any Issuer or any other Person of
the proceeds of the Notes, (b) any litigation, investigations, claims or
proceedings which arise out of or are in any way related to (i) the Note
Documents or the transactions contemplated hereby or (ii) any transaction
arising under or relating to the Note Documents, including, without limitation,
amounts paid in settlement, court costs and the fees and disbursements of
counsel incurred in connection with any such litigation, investigation, claim or
proceeding or any advice rendered in connection with any of the foregoing and
(c) any remedial or other action taken by an Obligor or any of the Holders in
connection with compliance by any Obligor, or any of its properties, with any
federal, state or local environmental laws, acts, rules, regulations, orders,
directions, ordinances, criteria or guidelines. Without limiting any provision
of this Agreement, it is the express intention of the parties hereto that each
Person indemnified hereunder shall be indemnified and held harmless against any
and all losses, liabilities, claims or damages arising out of or resulting from
the sole or concurrent negligence of such Person. Without prejudice to the
survival of any other Obligations of the Obligors hereunder and under the other
Note Documents, the Obligations of each Obligor under this SECTION 9.13 will
survive the payment or transfer of any Note, the enforcement, amendment or
waiver of any provision of this Agreement or the Notes, and the termination of
this Agreement.
SECTION 9.14. MAXIMUM RATE. Notwithstanding anything to the contrary
contained elsewhere in this Agreement or in any other Note Document, the
Obligors and the
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Holders hereby agree that all agreements among them under this Agreement and the
other Note Documents, whether now existing or hereafter arising and whether
written or oral, are expressly limited so that in no contingency or event
whatsoever shall the amount paid, or agreed to be paid, to any Holder for the
use, forbearance, or detention of the money loaned to the Issuer and evidenced
hereby or thereby or for the performance or payment of any covenant or
obligation contained herein or therein, exceed the Highest Lawful Rate. If due
to any circumstance whatsoever, fulfillment of any provisions of this Agreement
or any of the other Note Documents at the time performance of such provision
shall be due shall exceed the Highest Lawful Rate, then, automatically, the
obligation to be fulfilled shall be modified or reduced to the extent necessary
to limit such interest to the Highest Lawful Rate, and if from any such
circumstance the any Holder should ever receive anything of value deemed
interest by Governing Law which would exceed the Highest Lawful Rate, such
excessive interest shall be applied to the reduction of the principal amount
then outstanding hereunder or on account of any other then outstanding
Obligations and not to the payment of interest, or if such excessive interest
exceeds the principal unpaid balance then outstanding hereunder and such other
then outstanding Obligations, such excess shall be refunded to the Issuer. All
sums paid or agreed to be paid to any Holder for the use, forbearance, or
detention of the Obligations and other Indebtedness of the Issuer to the
Holders, to the extent permitted by Governing Law, shall be amortized, prorated,
allocated and spread throughout the full term of such Indebtedness, until
payment in full thereof, so that the actual rate of interest on account of all
such Indebtedness does not exceed the Highest Lawful Rate throughout the entire
term of such Indebtedness. The terms and provisions of this SECTION 9.14 shall
control every other provision of this Agreement and all agreements among the
Obligors and the Holders.
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[EXECUTION COPY]
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first written above.
ISSUER:
PSYCH SYSTEMS HOLDINGS, INC.,
a Delaware corporation
By: /s/ Xxxxxxx XxXx
--------------------------
Xxxxxxx XxXx
Chief Financial Officer
PURCHASER:
CANPARTNERS INVESTMENTS IV, LLC,
a California limited liability company,
By: Canpartners Incorporated,
a California corporation,
its managing member
By: /s/ Xxxxx Xxxxxx
--------------------------
Name: Xxxxx Xxxxxx
Title: Attorney in fact
GUARANTORS:
AMERICAN PSYCH SYSTEMS, INC., AMERICAN PSYCH SYSTEMS OF TEXAS,
an Iowa corporation INC., a Delaware corporation
By: /s/ Xxxxxxx XxXx By: /s/ Xxxxxxx XxXx
------------------------ ------------------------
Xxxxxxx XxXx Xxxxxxx XxXx
Chief Financial Officer Chief Financial Officer
SIGNATURE PAGE 1 of 3
[EXECUTION COPY]
CH/ECP SYSTEMS, INC., AZCARE, INC.,
a
New York corporation an Arizona corporation
By: /s/ Xxxxxxx XxXx By: /s/ Xxxxxxx XxXx
------------------------ ------------------------
Xxxxxxx XxXx Xxxxxxx XxXx
Chief Financial Officer Chief Financial Officer
NEW YORK PSYCH SYSTEMS, INC., NEW YORK PSYCH SYSTEMS, L.P.,
a New York corporation a New York limited partnership
By: New York Psych Systems, Inc.,
By: /s/ Xxxxxxx XxXx a New York corporation,
------------------------ its general partner
Xxxxxxx XxXx
Chief Financial Officer
By: /s/ Xxxxxxx XxXx
------------------------
Xxxxxxx XxXx
Chief Financial Officer
WESTCHESTER PSYCH SYSTEMS, L.P., SUFFOLK PSYCH SYSTEMS, L.P.,
a New York limited partnership a New York limited partnership
By: New York Psych Systems, Inc., By: New York Psych Systems, Inc.,
a New York corporation, a New York corporation,
its general partner its general partner
By: /s/ Xxxxxxx XxXx By: /s/ Xxxxxxx XxXx
------------------------ ------------------------
Xxxxxxx XxXx Xxxxxxx XxXx
Chief Financial Officer Chief Financial Officer
PSYCH SYSTEMS OF WESTCHESTER, INC., PSYCH SYSTEMS OF LONG ISLAND, INC.,
a New York corporation a New York corporation
By: /s/ Xxxxxxx XxXx By: /s/ Xxxxxxx XxXx
------------------------ ------------------------
Xxxxxxx XxXx Xxxxxxx XxXx
Chief Financial Officer Chief Financial Officer
SIGNATURE PAGE 2 of 3
[EXECUTION COPY]
CHS MANAGED SERVICES, INC., PSYCH SYSTEMS PPO, INC.,
a Delaware corporation a New York corporation
By: /s/ Xxxxxxx XxXx By: /s/ Xxxxxxx XxXx
------------------------ ------------------------
Xxxxxxx XxXx Xxxxxxx XxXx
Chief Financial Officer Chief Financial Officer
AMERICAN PSYCH SYSTEMS HOLDINGS, INC., VYDAS RESOURCES, INC.,
a Delaware corporation a Montana corporation
By: /s/ Xxxxxxx XxXx By: /s/ Xxxxxxx XxXx
------------------------ ------------------------
Xxxxxxx XxXx Xxxxxxx XxXx
Chief Financial Officer Chief Financial Officer
PSYCH SYSTEMS OF MANHATTAN, INC., AMERICAN PSYCH SYSTEMS OF PUERTO
A New York corporation RICO, INC., A PUERTO RICO
CORPORATION
By: /s/ Xxxxxxx XxXx By: /s/ Xxxxxxx XxXx
------------------------ ------------------------
Xxxxxxx XxXx Xxxxxxx XxXx
Chief Financial Officer Chief Financial Officer
SIGNATURE PAGE 3 of 3
[EXECUTION COPY]
EXHIBIT A --FORM OF NOTE
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE
SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION TO THE
REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH LAWS.
THIS NOTE IS SUBJECT TO A SUBORDINATION AND INTERCREDITOR AGREEMENT, DATED
AS OF SEPTEMBER 15, 2000 (THE "INTERCREDITOR AGREEMENT"), AMONG
CANPARTNERS INVESTMENTS IV, LLC, PSYCH SYSTEMS HOLDINGS, INC., AMERICAN
PSYCH SYSTEMS HOLDINGS, INC., AND BANK OF AMERICA, N.A. THIS NOTE IS
SUBORDINATED IN RIGHT AND TIME OF PAYMENT TO THE PRIOR PAYMENT IN FULL IN
CASH OF ALL SENIOR DEBT (AS DEFINED THEREIN) IN ACCORDANCE WITH, AND TO
THE EXTENT SPECIFIED IN, SUCH INTERCREDITOR AGREEMENT AND EACH HOLDER OF
THIS NOTE, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE
TERMS AND PROVISIONS OF SUCH INTERCREDITOR AGREEMENT. THIS NOTE IS ALSO
SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN THE INTERCREDITOR
AGREEMENT.
PSYCH SYSTEMS HOLDINGS, INC.,
Issuer
15% SENIOR SUBORDINATED SECURED NOTE DUE 2004
No. [_____][Date]
$7,500,000
FOR VALUE RECEIVED, the undersigned, PSYCH SYSTEMS HOLDINGS, INC., a
Delaware corporation (the "ISSUER") hereby promises to pay to Canpartners
Investments IV, LLC, a California limited liability company, or registered
assigns, the principal sum of SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS on
June 15, 2004, with interest (computed on the basis of a 360-day year of twelve
30-day months) (a) on the unpaid balance thereof at the rate of 1.25% per month
from the date hereof, payable monthly, on the first day of each month of each
year commencing on October 1, 2000, until the principal hereof shall have become
due and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal and any overdue payment of
interest (as defined in the Agreement referred to below), payable monthly as
aforesaid (or, at the option of the registered Holder hereof, on demand), at a
rate per annum from time to time equal to the 17.5%; provided, however, that if
the Issuer is prohibited from paying all or any portion of a cash interest
payment pursuant to the Intercreditor Agreement, the Issuer shall issue a note
for such
A-1
[EXECUTION COPY]
unpaid interest on the same terms and conditions of this Note (except that
interest accruing under such note shall not be payable in cash until the Senior
Debt Termination Date).
This Note is one of a duly authorized issue of Notes of the Issuer
issued pursuant to the
Note and Stock Purchase Agreement dated as of September
15, 2000 (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the "AGREEMENT"), among Issuer, the Guarantors From
Time To Time Party Thereto, the Purchasers From Time To Time Party Thereto, and
Canpartners Investments IV, LLC, to which Agreement and all Agreements
supplemental thereto reference is hereby made for a statement of the respective
rights, thereunder of the Issuer and the Holders of the Notes. Pursuant to the
Agreement, the Holders of Notes are also entitled to the benefits of the
Security Documents (as defined in the Agreement). The terms of the Notes include
those stated in the Agreement. The Notes are subject to all such terms, and
holders are referred to the Agreement for a statement of such terms. Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to
such terms in the Agreement.
Payments of principal of and interest on this Note are to be made in
lawful money of the United States of America by the method and to the address or
account specified with respect to the holder hereof pursuant to Section 2.05 of
the Agreement.
The Issuer hereby acknowledges and makes this Note a registered
obligation for United States withholding tax purposes. The Issuer shall be the
registrar for this Note (the "REGISTRAR") with full power of substitution. In
the event the Registrar becomes unable or unwilling to act as registrar under
this Note, the Issuer shall reasonably designate a successor Registrar. Each
Holder who is a foreign person, by its acceptance of this Note, hereby agrees to
provide the Issuer, for the benefit of the Issuer, with a completed Internal
Revenue Service Form W-8 (Certificate of Foreign Status) or a substantially
similar from for such Holder, participants or other affiliates who are holders
of beneficial interests in this Note. Notwithstanding any contrary provision
contained in this Note or any of the other Note Documents, neither this Note nor
any interests therein may be sold, transferred, hypothecated, participated or
assigned to any Person except upon satisfaction of the conditions specified in
this paragraph. Each Holder, by its acceptance of its Note(s), agrees to be
bound by the provisions of this paragraph and to indemnify and hold harmless the
Registrar against any and all loss or liability arising from the disposition by
such Holder of this Note or any interest therein in violation of this paragraph.
The Registrar shall keep at its principal executive office (or an office or
agency designated by it by notice to the last registered Holder) a ledger, in
which, subject to such reasonable regulations as it may prescribe, but at its
expense (except as specified below), it shall provide for the registration and
transfer of this Note. No sale, transfer, hypothecation, participation or
assignment of this Note or any interest herein shall be effective for any
purpose until it shall be registered on the books of the Registrar to be
maintained for such purpose. The Registrar shall record the transfer of this
Note on the books maintained for this purpose upon receipt by the Registrar at
the office or agency designated by the Registrar of (a) a written assignment of
this Note (or the applicable interest therein), (b) funds sufficient to pay any
transfer taxes payable upon the making of such transfer as well as the cost of
reviewing the documents presented to the Registrar, and (c) such evidence of due
execution as the Registrar shall reasonably require. The
A-2
[EXECUTION COPY]
Registrar shall record the transfer of this Note on the books maintained for
such purpose at the cost and expense of the assignee.
This Note is subject to prepayment, in whole or from time to time in
part, at the times and on the terms specified in the Agreement, but not
otherwise.
Issuer, for itself and its successors and assigns, hereby: (i)
waives demand, presentment for payment, notice of nonpayment, protest, notice of
protest, notice of intent to accelerate, notice of acceleration and all other
notice, filing of suit and diligence in collecting this Note or enforcing any of
its remedies, (ii) agrees that Holder shall not be required first to institute
suit or exhaust its remedies hereon against Issuer or others liable or to become
liable hereon or to enforce its rights against them and (iii) consents to any
extension or postponement of time of payment of this Note and to any other
indulgence with respect hereto without notice thereof to Issuer. This Note, and
the terms, conditions and provisions hereof, may not be changed, modified,
amended or terminated except as provided in the Agreement.
If an Event of Default, as defined in the Agreement, occurs and is
continuing, the principal of this Note may be declared or otherwise become due
and payable in the manner, at the price and with the effect provided in the
Agreement.
This Note shall be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.
Notwithstanding anything to the contrary contained elsewhere in this
Note or in any other Note Document, the Issuer and the Holder of this Note
hereby agree that all agreements among them under this Note and the other Note
Documents, whether now existing or hereafter arising and whether written or
oral, are expressly limited so that in no contingency or event whatsoever shall
the amount paid, or agreed to be paid, to such Holder for the use, forbearance,
or detention of the money loaned to the Issuer and evidenced hereby or thereby
or for the performance or payment of any covenant or obligation contained herein
or therein, exceed the Highest Lawful Rate. If due to any circumstance
whatsoever, fulfillment of any provisions of this Note or any of the other Note
Documents at the time performance of such provision shall be due shall exceed
the Highest Lawful Rate, then, automatically, the obligation to be fulfilled
shall be modified or reduced to the extent necessary to limit such interest to
the Highest Lawful Rate, and if from any such circumstance such Holder should
ever receive anything of value deemed interest by Governing Law which would
exceed the Highest Lawful Rate, such excessive interest shall be applied to the
reduction of the principal amount then outstanding hereunder or on account of
any other then outstanding Obligations and not to the payment of interest, or if
such excessive interest exceeds the principal unpaid balance then outstanding
hereunder and such other then outstanding Obligations, such excess shall be
refunded to the Issuer. All sums paid or agreed to be paid to such Holder for
the use, forbearance, or detention of the Obligations and other Indebtedness of
the Issuer to the Holders, to the extent permitted by Governing Law, shall be
amortized, prorated, allocated and spread
A-3
[EXECUTION COPY]
throughout the full term of such Indebtedness, until payment in full thereof, so
that the actual rate of interest on account of all such Indebtedness does not
exceed the Highest Lawful Rate throughout the entire term of such Indebtedness.
For purposes of this paragraph, "HIGHEST LAWFUL RATE" means, at any given time
during which any Obligations shall be outstanding hereunder, the maximum
nonusurious interest rate that at any time or from time to time may be
contracted for, taken, reserved, charged or received on the Obligations, under
the laws of the State of New York (or the law of any other jurisdiction whose
laws may be mandatorily applicable notwithstanding other provisions of this Note
and the other Note Documents), or under applicable federal laws which may
presently or hereafter be in effect and which allow a higher maximum nonusurious
interest rate than under the laws of the State of New York (or such other
jurisdiction's law), in any case after taking into account, to the extent
permitted by Governing Law, any and all relevant payments or charges under this
Note and any other Note Documents executed in connection herewith, and any
available exemptions, exceptions and exclusions. The terms and provisions of
this paragraph shall control every other provision of this Note and all
agreements among the Obligors and such Holder.
A-4
[EXECUTION COPY]
IN WITNESS WHEREOF, the Issuer has executed this Note on the date
first written above.
PSYCH SYSTEMS HOLDINGS, INC.,
a Delaware corporation
By:
------------------------
Xxxxxxx XxXx
Chief Financial Officer
A-5
[EXECUTION COPY]
EXHIBIT A --FORM OF NOTE
------------------------
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE
SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION TO THE REGISTRATION
REQUIREMENTS OF SUCH ACT OR SUCH LAWS.
THIS NOTE IS SUBJECT TO A SUBORDINATION AND INTERCREDITOR AGREEMENT, DATED AS OF
SEPTEMBER 15, 2000 (THE "INTERCREDITOR AGREEMENT"), AMONG CANPARTNERS
INVESTMENTS IV, LLC, PSYCH SYSTEMS HOLDINGS, INC., AMERICAN PSYCH SYSTEMS
HOLDINGS, INC., AND BANK OF AMERICA, N.A. THIS NOTE IS SUBORDINATED IN RIGHT AND
TIME OF PAYMENT TO THE PRIOR PAYMENT IN FULL IN CASH OF ALL SENIOR DEBT (AS
DEFINED THEREIN) IN ACCORDANCE WITH, AND TO THE EXTENT SPECIFIED IN, SUCH
INTERCREDITOR AGREEMENT AND EACH HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF,
IRREVOCABLY AGREES TO BE BOUND BY THE TERMS AND PROVISIONS OF SUCH INTERCREDITOR
AGREEMENT. THIS NOTE IS ALSO SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH
IN THE INTERCREDITOR AGREEMENT.
PSYCH SYSTEMS HOLDINGS, INC.,
Issuer
15% SENIOR SUBORDINATED SECURED NOTE DUE 2004
No. [_____][Date]
$7,500,000
FOR VALUE RECEIVED, the undersigned, PSYCH SYSTEMS HOLDINGS, INC., a
Delaware corporation (the "Issuer") hereby promises to pay to Canpartners
Investments IV, LLC, a California limited liability company, or registered
assigns, the principal sum of SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS on
June 15, 2004, with interest (computed on the basis of a 360-day year of twelve
30-day months) (a) on the unpaid balance thereof at the rate of 1.25% per month
from the date hereof, payable monthly, on the first day of each month of each
year commencing on October 1, 2000, until the principal hereof shall have become
due and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal and any overdue payment of
interest (as defined in the Agreement referred to below), payable monthly as
aforesaid (or, at the option of the registered Holder hereof, on demand), at a
rate per annum from time to time equal to the 17.5%; provided, however, that if
the Issuer is prohi bited from paying all or any portion of a cash interest
payment pursuant to the Intercreditor Agreement, the Issuer shall issue a note
for such
PSYCH SYSTEMS HOLDINGS
A-1
NOTE AND STOCK PURCHASE AGREEMENT
[EXECUTION COPY]
unpaid interest on the same terms and conditions of this Note (except that
interest accruing under such note shall not be payable in cash until the Senior
Debt Termination Date).
This Note is one of a duly authorized issue of Notes of the Issuer
issued pursuant to the
Note and Stock Purchase Agreement dated as of September
15, 2000 (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the "Agreement"), among Issuer, the Guarantors From
Time To Time Party Thereto, the Purchasers From Time To Time Party Thereto, and
Canpartners Investments IV, LLC, to which Agreement and all Agreements
supplemental thereto reference is hereby made for a statement of the respective
rights, thereunder of the Issuer and the Holders of the Notes. Pursuant to the
Agreement, the Holders of Notes are also entitled to the benefits of the
Security Documents (as defined in the Agreement). The terms of the Notes include
those stated in the Agreement. The Notes are subject to all such terms, and
holders are referred to the Agreement for a statement of such terms. Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to
such terms in the Agre ement.
Payments of principal of and interest on this Note are to be made in
lawful money of the United States of America by the method and to the address or
account specified with respect to the holder hereof pursuant to Section 2.05 of
the Agreement.
The Issuer hereby acknowledges and makes this Note a registered
obligation for United States withholding tax purposes. The Issuer shall be the
registrar for this Note (the "REGISTRAR") with full power of substitution. In
the event the Registrar becomes unable or unwilling to act as registrar under
this Note, the Issuer shall reasonably designate a successor Registrar. Each
Holder who is a foreign person, by its acceptance of this Note, hereby agrees to
provide the Issuer, for the benefit of the Issuer, with a completed Internal
Revenue Service Form W-8 (Certificate of Foreign Status) or a substantially
similar from for such Holder, participants or other affiliates who are holders
of beneficial interests in this Note. Notwithstanding any contrary provision
contained in this Note or any of the other Note Documents, neither this Note nor
any interests therein may be sold, transferred, hypothecated, participated or
assigned to any Person except upon satisfaction of the conditions specified in
this paragraph. Eac h Holder, by its acceptance of its Note(s), agrees to be
bound by the provisions of this paragraph and to indemnify and hold harmless the
Registrar against any and all loss or liability arising from the disposition by
such Holder of this Note or any interest therein in violation of this paragraph.
The Registrar shall keep at its principal executive office (or an office or
agency designated by it by notice to the last registered Holder) a ledger, in
which, subject to such reasonable regulations as it may prescribe, but at its
expense (except as specified below), it shall provide for the registration and
transfer of this Note. No sale, transfer, hypothecation, participation or
assignment of this Note or any interest herein shall be effective for any
purpose until it shall be registered on the books of the Registrar to be
maintained for such purpose. The Registrar shall record the transfer of this
Note on the books maintained for this purpose upon receipt by the Registrar at
the office or agency designated by t he Registrar of (a) a written assignment of
this Note (or the applicable interest therein), (b) funds sufficient to pay any
transfer taxes payable upon the making of such transfer as well as the cost of
reviewing the documents presented to the Registrar, and (c) such evidence of due
execution as the Registrar shall reasonably require. The
PSYCH SYSTEMS HOLDINGS
A-2
NOTE AND STOCK PURCHASE AGREEMENT
EXECUTION COPY]
Registrar shall record the transfer of this Note on the books maintained for
such purpose at the cost and expense of the assignee.
This Note is subject to prepayment, in whole or from time to time in
part, at the times and on the terms specified in the Agreement, but not
otherwise.
Issuer, for itself and its successors and assigns, hereby: (i) waives
demand, presentment for payment, notice of nonpayment, protest, notice of
protest, notice of intent to accelerate, notice of acceleration and all other
notice, filing of suit and diligence in collecting this Note or enforcing any of
its remedies, (ii) agrees that Holder shall not be required first to institute
suit or exhaust its remedies hereon against Issuer or others liable or to become
liable hereon or to enforce its rights against them and (iii) consents to any
extension or postponement of time of payment of this Note and to any other
indulgence with respect hereto without notice thereof to Issuer. This Note, and
the terms, conditions and provisions hereof, may not be changed, modified,
amended or terminated except as provided in the Agreement.
If an Event of Default, as defined in the Agreement, occurs and is
continuing, the principal of this Note may be declared or otherwise become due
and payable in the manner, at the price and with the effect provided in the
Agreement.
This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.
Notwithstanding anything to the contrary contained elsewhere in this
Note or in any other Note Document, the Issuer and the Holder of this Note
hereby agree that all agreements among them under this Note and the other Note
Documents, whether now existing or hereafter arising and whether written or
oral, are expressly limited so that in no contingency or event whatsoever shall
the amount paid, or agreed to be paid, to such Holder for the use, forbearance,
or detention of the money loaned to the Issuer and evidenced hereby or thereby
or for the performance or payment of any covenant or obligation contained herein
or therein, exceed the Highest Lawful Rate. If due to any circumstance
whatsoever, fulfillment of any provisions of this Note or any of the other Note
Documents at the time performance of such provision shall be due shall exceed
the Highest Lawful Rate, then, automatically, the obligation to be fulfilled
shall be modified or reduced to the extent necessary to limit such interest to
the Highest Lawful Rate, and if from any such circumstance such Holder should
ever receive anything of value deemed interest by Governing Law which would
exceed the Highest Lawful Rate, such excessive interest shall be applied to the
reduction of the principal amount then outstanding hereunder or on account of
any other then outstanding Obligations and not to the payment of interest, or if
such excessive interest exceeds the principal unpaid balance then outstanding
hereunder and such other then outstanding Obligations, such excess shall be
refunded to the Issuer. All sums paid or agreed to be paid to such Holder for
the use, forbearance, or detention of the Obligations and other Indebtedness of
the Issuer to the Holders, to the extent permitted by Governing Law, shall be
amortized, prorated, allocated and spread
PSYCH SYSTEMS HOLDINGS
A-3
NOTE AND STOCK PURCHASE AGREEMENT
throughout the full term of such Indebtedness, until payment in full thereof, so
that the actual rate of interest on account of all such Indebtedness does not
exceed the Highest Lawful Rate throughout the entire term of such Indebtedness.
For purposes of this paragraph, "Highest Lawful Rate" means, at any given time
during which any Obligations shall be outstanding hereunder, the maximum
nonusurious interest rate that at any time or from time to time may be
contracted for, taken, reserved, charged or received on the Obligations, under
the laws of the State of New York (or the law of any other jurisdiction whose
laws may be mandatorily applicable notwithstanding other provisions of this Note
and the other Note Documents), or under applicable federal laws which may
presently or hereafter be in effect and which allow a higher maximum nonusurious
interest rate than under the laws of the State of New York (or such other
jurisdiction's law), in any case after taking into account, to the extent
permitted by Governing Law, any and all relevant payments or charges under this
Note and any other Note Documents executed in connection herewith, and any
available exemptions, exceptions and exclusions. The terms and provisions of
this paragraph shall control every other provision of this Note and all
agreements among the Obligors and such Holder.
PSYCH SYSTEMS HOLDINGS
A-4
NOTE AND STOCK PURCHASE AGREEMENT
[EXECUTION COPY]
IN WITNESS WHEREOF, the Issuer has executed this Note on the date first
written above.
PSYCH SYSTEMS HOLDINGS, INC.,
a Delaware corporation
By:
---------------------------------
Xxxxxxx XxXx
Chief Financial Officer
PSYCH SYSTEMS HOLDINGS
A-5
NOTE AND STOCK PURCHASE AGREEMENT
EXHIBIT B -- FORM OF LEGAL OPINION
[LETTERHEAD OF MINTZ, LEVIN, COHN, FERRIS, GLOVSKY AND POPEO, P.C.]
September 15, 2000
CANPARTNERS INVESTMENTS IV, LLC
c/o Canyon Capital Advisors, LLC
0000 Xxxxxxxx Xxxxxxxxx
Xxxxx 000
Xxxxxxx Xxxxx, XX 00000
Dear Sirs:
This opinion is furnished to you pursuant to Section 4.02(c) of the
Note and Stock Purchase Agreement (the "Note Agreement"), dated as of September
15, 2000, among Psych Systems Holdings, Inc., a Delaware corporation (the
"Issuer"), the Guarantors, Canpartners Investments IV, LLC (the "Lender") and
the other purchasers from time to time a party thereto (together with the
Lender, the "Purchaser"). Capitalized terms used in this opinion which are not
defined herein shall have the meanings given such terms in the Note Agreement.
We have acted as counsel to Issuer and the Guarantors in connection
with the transactions contemplated by the Note Agreement. This opinion is being
delivered to you at the direction of the Issuer and Guarantors pursuant to
Section 4.02(c) of the Note Agreement. In rendering this opinion, we have
reviewed the following documents, instruments and agreements:
i. Note Agreement.
ii. The 15% Senior Subordinated Secured Note, due 2004 (the "Note").
iii. Contribution Agreement between the Guarantors and the Lender (the
"Contribution Agreement").
iv. Each of the Security Documents (as defined in the Intercreditor
Agreement (as defined below)) (the "Security Documents").
v. UCC-1 Financing Statements listing the Collateral Agent as secured party for
the benefit of the Lender and the Issuer and Guarantors or certain of them as
debtors, for filing in the
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
CANPARTNERS INVESTMENTS IV, LLC
September 15, 2000
Page 2
office of the New York Secretary of State; in the office of the Arizona
Secretary of State; in the office of the Maryland State Department of
Assessments and Taxation; in the Office of the Iowa Secretary of State; in the
office of the Montana Secretary of State; in the office of the Recorder of Deeds
of the District of Columbia; in the office of the Arkansas Secretary of State;
in the office of the Colorado Secretary of State; in the office of the Idaho
Secretary of State; in the office of the Texas Secretary of State; in the office
of the Washington Department of Licensing; in the office of the New Mexico
Secretary of State; in the office of the North Dakota Secretary of State; in the
office of the Oregon Secretary of State; in the office of the Utah Secretary of
State; in the office of the Wyoming Secretary of State; in the office of the
Georgia Superior Court Clerk's Cooperative Authority; in the office of the
Puerto Secretary of State and in various jurisdictions or political subdivisions
within New York, Arizona, Maryland, Montana, Texas, Washington, Puerto Rico,
Georgia, Arkansas, Colorado, Idaho, New Mexico, North Dakota, Oregon, Utah,
Wyoming, and Iowa (collectively the "Financing Statements").
vi. Form of stock certificate evidencing the issuance by American Psych
Systems Holdings, Inc. ("Parent") of the Warrant Shares and Shares to Lender.
vii. The Amended and Restated Registration and Shareholders Rights
Agreement between Purchaser, Parent, Lender, Nazem & Company IV, L.P. and
Transatlantic Venture Partners, C.V. ("Registration Rights Agreement").
viii. Form of the Subordination and Intercreditor Agreement between
Bank of America Commercial Finance Corporation ("Bank of America"), Lender and
Issuer (the "Intercreditor Agreement").
(the aforesaid being hereinafter collectively referred to as the "Note
Documents").
For purposes of this opinion, we have made, with your consent, and
without further inquiry as to their accuracy or completeness, the following
assumptions:
a. We have examined and relied upon certificates of public officials
and certificates of corporate officers of the Issuer and the Guarantors
("Officers' Certificates") with respect to the accuracy of material factual
matters contained therein as well as copies, certified to our satisfaction, of
such documents and records as we have deemed relevant and necessary as a basis
for our opinions. While we have not conducted any independent investigation for
this purpose, to our knowledge there are not any material untrue statements set
forth in the Officers' Certificates. We have also relied upon the statements,
representations and warranties of the various parties contained in the Note
Documents, closing certificates delivered to Lender, and on the representations
made by Lender, or otherwise conveyed to us by such parties or their respective
agents, employees, officers or directors.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
CANPARTNERS INVESTMENTS IV, LLC
September 15, 2000
Page 3
b. We have assumed that the Note Documents were duly and properly
authorized, executed, acknowledged where required, and delivered by each party
required to be a party thereto (other than the Issuer and the Guarantors).
c. We have assumed that the loan referenced in the Note Documents has
been advanced to the Issuer as recited and defined therein and Lender has
incurred an obligation, advanced monies or otherwise given value to Issuer.
d. We have assumed that the Note Documents constitute the legally valid
and binding obligation of the parties thereto other than the Issuer and the
Guarantors and are enforceable against such parties in accordance with their
respective terms.
e. We have assumed the genuineness of all signatures, the legal
capacities of all natural persons and the authenticity of all documents
submitted to us as originals and the conformity with the originals of all
documents submitted to us as copies, including without limitation, the contents
of schedules to such documents and the possible incompleteness of such
schedules.
f. We have assumed that the Issuer and Guarantors have rights in the
personal property described in the Financing Statements and that value has been
given to the Issuer.
g. We have assumed that the Issuer and Guarantors have valid, legal and
enforceable ownership interests in the Collateral. We have not made or
undertaken to make any investigation of the status of title to any property or
property rights or interests which are purportedly included in Collateral and
express no opinion with respect to the existence or ownership of any such
property, property rights or interests therein or the title thereto, the
validity or priority of any liens thereon, or the adequacy or accuracy of the
descriptions thereof.
With your permission, we have based our conclusion set forth in
Paragraph 7 with respect to the Financing Statements for filing in Arizona,
Maryland, Montana, Texas, Washington, Puerto Rico, Georgia, Arkansas, Colorado,
Idaho, New Mexico, North Dakota, Oregon, Utah, Wyoming and Iowa (the "Selected
States") solely upon our review of Sections 9-401 and 9-402 and related sections
defining the terms therein used in the UCC as set forth in the CCH Secured
Transactions Guide, copies of which sections are incorporated herein by this
reference and referred to herein as the "Selected State UCC Provisions." We have
assumed that the Selected States UCC Provisions are in effect on the date hereof
in the Selected States in the form annexed hereto, and have not been modified in
any respect by any other statute, regulation or decision with respect to the
laws of the Selected States. We have assumed that no fixture filings are
required in order to perfect a security interest in the Collateral under the
laws of the Selected States.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
CANPARTNERS INVESTMENTS IV, LLC
September 15, 2000
Page 4
Our opinion in Paragraph 7 is subject to the following further
qualifications: Continued perfection of the security interests will require the
filing of continuation statements within six months prior to the expiration of
five (5) years in New York, Ohio, Montana, District of Columbia, Texas,
Washington, Puerto Rico, Arkansas, Colorado, Idaho, New Mexico, North Dakota,
Oregon, Utah, Wyoming and Iowa, five (5) years or 20 days following a specific
maturity date in Georgia, six (6) years in Arizona and twelve (12) years in
Maryland from the date of the original filings. Security interests in accounts,
contract rights or other general intangibles arising from transactions with the
United States or any State or any agency, department or instrumentality of such
sovereign may not be subject to perfection and, in those cases where it may be
perfected, may not be enforced unless there is compliance with various statutory
provisions. Unless new appropriate financing statements or appropriate
amendments are filed in t he appropriate offices, perfection of the security
interests described in the Financing Statements may be terminated if a grantor
of a security interest so changes its name, identity or corporate structure as
to make the Financing Statements seriously misleading, or changes its principal
place of business, or in the case of tangible personal property, if such
property is removed from a state or other local jurisdiction in which a
Financing Statement has been validly and properly filed. In the case of property
which becomes Collateral after the date hereof, Section 552 of the Federal
Bankruptcy Code limits the extent to which property acquired by a debtor after
the commencement of a case under the Federal Bankruptcy Code may be subject to a
security interest from a security agreement entered into by the debtor before
the commencement of the case.
Our opinions are also subject to the remaining paragraphs below:
a. The effect of applicable bankruptcy, reorganization, insolvency,
moratorium, fraudulent conveyance and similar laws relating to or affecting the
rights and remedies of creditors or secured parties, including fraudulent
transfer laws.
b. Limitations which may arise under general principles of equity
including concepts of materiality, reasonableness, good faith and fair dealings
(regardless of whether considered in a proceeding at law or in equity).
c. Limitations upon the availability of specific equitable remedies
(such as injunctive relief and the remedy of specific performance) which may
arise under general or statutory principles of equity.
d. Limitations regarding enforceability of provisions for
indemnification where such indemnification would be violative of any law, rule
or regulation (including without limitation any federal or state securities law
or regulation) or would be contrary to public policy.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
CANPARTNERS INVESTMENTS IV, LLC
September 15, 2000
Page 5
e. Limitations on the exercise or attempted exercise of any right or
remedy if such exercise or attempted exercise is not undertaken in a
commercially reasonable manner or is deemed to be in breach of the covenant of
good faith and fair dealing implied under applicable law.
f. Limitations which may arise from the intervention of any state and
federal regulatory agencies having jurisdiction, or purporting to have
jurisdiction, over the Issuer, the Guarantors or their affiliates.
Statements as to our knowledge, or to the effect that we have no
knowledge, with respect to the existence, nonexistence or absence of facts are
not intended to signify that we have undertaken an independent investigation
with reference to such facts and no inference relative thereto should be made.
References to our knowledge indicate only that we have actual knowledge of such
facts, and references to our lack of knowledge indicate that no information has
come to our attention that would give us actual knowledge of such facts. In the
course of our representation of the Issuer and Guarantors in connection with the
above-referenced loan and the delivery of the opinions set forth below, no
information has come to our attention that would give us actual knowledge or
actual notice that any such opinions or other matters are not accurate or that
any of the documents, certificates, reports, and information on which we have
relied are not accurate and complete.
In addition, we have assumed that there are no oral or written
modifications of or amendments to the Note Documents and there has been no
waiver of any of the provisions of the Note Documents by actions or conduct of
the parties or otherwise.
Except to the extent required in rending the opinion expressed herein,
we have made no special investigation or review of any laws, rules, regulations,
judgments, decrees, franchises, certificates, permits, or the like. In addition,
we have made no independent examination or investigation to certify the accuracy
or completeness of any financial, accounting, or statistical information
furnished by the Issuer or a Guarantor to any party, or with respect to any
other accounting or financial matters, and we express no opinion with respect
thereto. This opinion is limited to the matters stated herein, and no opinion is
to be implied or may be inferred beyond the matters expressly stated.
Based upon the foregoing, we are of the opinion that:
1. Each of the Issuer and each Guarantor is a corporation duly
incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation or, if a limited partnership, is duly organized,
validly existing and in good standing; and to our knowledge has all requisite
power and authority to own, lease and operate its assets, properties and
business and to carry on its business as now conducted and, based solely on the
Officers' Certificate and
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
CANPARTNERS INVESTMENTS IV, LLC
September 15, 2000
Page 6
certificate of State Officials, is duly qualified, or licensed as a foreign
corporation and is in good standing as a foreign corporation in each
jurisdiction in which the character of its properties and the nature of its
business requires such qualification or licensing, except where the failure to
so qualify or be licensed could not reasonably be expected to have a materially
adverse effect upon its ability to enter into or perform its obligations under
the Note Documents to which it is a party.
2. Each of the Issuer and each Guarantor has full legal power and
authority required to enter into, execute and deliver the Note Documents to be
executed by it and to perform fully its obligations thereunder. The Certificate
of Incorporation of Parent has been properly amended by the adoption and filing
of the Certificate of Amendment to the Certificate of Incorporation dated
September 15, 2000.
3. Each of the Issuer and each Guarantor has taken all corporate
actions necessary to authorize it to enter into, deliver and to perform its
obligations under the Note Documents to which it is a party and to consummate
the transactions contemplated thereby.
4. Each of the Note Documents to which the Issuer or any Guarantor is a
party is the legal, valid and binding obligation of such party, enforceable
against such party in accordance with its terms.
5. Neither the execution and delivery by Issuer or Guarantors of the
Note Documents to which they are a party, nor the performance by Issuer or
Guarantors of their obligations thereunder, (i) conflicts with, results in
breach of or constitutes a default under any provision of the Articles or
Certificates of Incorporation, Bylaws or limited partnership agreement of Issuer
or Guarantors, (ii) to our knowledge, conflicts with, results in a breach of or
constitutes a default under any federal or applicable state statute, law or
regulation, (iii) to our knowledge, conflicts with, results in a breach of or
constitutes a default or creates in any party a right to accelerate any material
agreement or instrument to which Issuer or Guarantors are a party or by which
any of their properties are bound or affected, (iv) will, to our knowledge,
result in the imposition of any material lien upon any of their material
properties except for the liens created by or provided for in the Note
Documents, or (v) except as set fort h in the Note Agreement, requires, to our
knowledge, the approval or consent of any holder (or trustee of any holder) of
any indebtedness or any other obligation or agreement of Issuer or Guarantors.
6. To our knowledge, under existing provisions of law, no Issuer or
Guarantor is required to obtain (except as has heretofore been obtained) any
consent, approval, authorization, permit or license from, or effect (except as
has heretofore been effected) any filing or registration with, any governmental
or regulatory authority in connection with the execution, delivery or
performance, in accordance with their respective terms, of the Note Documents to
which it is a party and the granting of the Liens pursuant to the Security
Agreement and the Pledge Agreement, except for the filings and/or recordations
referred to in Paragraph 7 below.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
CANPARTNERS INVESTMENTS IV, LLC
September 15, 2000
Page 7
7. The Security Documents are effective to create in favor of the
Collateral Agent for the benefit of the Lender a valid security interest in all
of the right, title and interest of the Issuer and the Guarantors in, to and
under the Collateral described therein, in each case as security for the
obligations purported to be secured thereby. Assuming (i) the Issuer and the
Guarantors have rights in or title to the Collateral required under the Note
Documents, (ii) the Financing Statements have been duly executed and properly
filed in all of the applicable offices, (iii) all filing and registration fees
and taxes in respect of such filings have been paid, and (iv) Lender has
incurred obligations, advanced monies, or otherwise given value, the Lien of the
Security Documents in the Collateral described in the Security Documents other
than certificates representing securities will be perfected by the filing of the
Financing Statements, appropriately completed, describing such Collateral.
8. The Pledged Securities are duly authorized, validly issued and
outstanding and fully paid and non-assessable and, to our knowledge, and are
free and clear of all restrictions on transfer created by the Issuer or
Guarantors (other than those imposed by state and federal securities laws).
Based solely on our review of the stock ledgers of Issuer and the Guarantors and
the Officers' Certificate, Schedule 5.01(f)(i) to the Note Agreement completely
and accurately sets forth with respect to each such person the number, title and
ownership of the classes and/or series of equity securities which constitute the
authorized and issued and outstanding capital stock of Issuer and the
Guarantors. Furthermore, based solely on our review of the stock ledgers of such
person and the Officers' Certificates, but without other independent
investigation, to our knowledge there are no outstanding options, warrants,
convertible securities, pre-emptive rights or other rights to acquire equity
securities or interests of the Issue r or the Guarantors except as listed on
Schedule 5.01(f)(ii)(a) to the Note Agreement.
9. The Shares and Warrant Shares to be issued upon execution of the
Note Documents and payment of the purchase price of the Notes by Lender have
been duly authorized and upon issuance will be validly issued, fully paid and
non-assessable.
10. To our knowledge and except as set forth in the Note Agreement and
the schedules and exhibits thereto, there are no judgments or orders or actions,
no arbitration proceedings and no actions, suits or proceedings, at law or in
equity, by or before any governmental authority pending against, affecting or
with respect to (i) the transactions contemplated by the Note Agreement, (ii)
any Issuer or Guarantor, which have a materially adverse effect upon the ability
of such Issuer or Guarantor to perform their obligations under the Note
Documents to which it is a party.
11. To our knowledge based upon the Officers' Certificates, neither the
Issuer nor any Guarantor is (i) an "investment company" under the Investment
Company Act of 1940, (ii) subject to regulation under (A) the Public Utility
Holding Company Act of 1935, or (B) the
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
CANPARTNERS INVESTMENTS IV, LLC
September 15, 2000
Page 8
Federal Power Act, or (C) any United States or state statute or regulation
limiting such Issuer or Guarantor's ability to incur indebtedness for money
borrowed as contemplated by the Note Agreement. To our knowledge, neither the
Issuer nor the Guarantors are engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of "purchasing"
or "carrying" any "margin stock" or "margin security" within the meanings of
Regulation T, U or X, respectively, of the Board of Governors of the Federal
Reserve System.
This opinion is rendered to you only in connection with the
transactions referred to herein. Accordingly, this opinion may not be
reproduced, delivered to or relied upon by any person other than you and your
successors and assigns under the Note Agreement, any governmental agency
regulating you or your operations, your counsel, Sidley & Austin, your
independent auditors, or pursuant to order or legal process of any court or
governmental agency or authority, and it may not be relied upon for any other
purpose whatsoever.
We are members, among other jurisdictions, of the Bar of the State of
Maryland, State of New York and the District of Columbia and in reference to the
Note Agreement do not purport to be an expert or give any opinion except as to
matters involving the laws of the State of Maryland, State of New York, District
of Columbia, the Delaware General Corporation Law and the laws of the United
States. As to all matters governed by the laws of jurisdictions other than the
State of Maryland, State of New York, District of Columbia, the Delaware General
Corporation Law or the laws of the United States of America, we have, unless
otherwise noted above, assumed that the laws of such jurisdictions are the same
as the laws of the State of Maryland, State of New York, and District of
Columbia and we express no opinion herein as to the effect that the laws of
other jurisdiction might have on the subject matter of this opinion under
conflict of laws principles or otherwise.
This opinion speaks solely as of its date and we undertake no
obligation to advise you of any changes that may occur after the date thereof.
Sincerely,
MINTZ, LEVIN, COHN, FERRIS,
GLOVSKY and POPEO, P.C.
/s/ Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C.
SCHEDULE 1.01(B)
Liens
LIENS AGAINST
AMERICAN PSYCH SYSTEMS HOLDINGS, INC. AND ITS SUBSIDIARIES
(unless noted otherwise, all liens listed are UCC filings)
Note: This table is based on the results of the searches described on attached Annex A.
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych Systems Delaware M-Core Credit 11/25/1998 Leased telephone system
Holdings, Inc. Corporation 199853337
American Psych Systems Maryland NationsBank, N.A. 7/26/1999 PC computers and
Holdings, Inc. (assignee of Xxxxxx 181014687 accessories
Capital Corporation)
American Psych Systems Maryland M-Core Credit 11/10/1998 Leased office chairs
Holdings, Inc. Corporation 39100000034723
American Psych Systems Maryland M-Core Credit 11/25/1998 Leased telephone system
Holdings, Inc. Corporation 39100000037132
American Psych Systems Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Holdings, Inc. Corporation, as Agent 39100000042327
American Psych Systems Maryland The Columbia Bank 7/26/1999 PC computers and
Holdings, Inc. (assignee of Xxxxxx 181014688 accessories
Capital Corporation)
American Psych Systems Maryland Farmers and Mechanics 3/8/2000 Computer equipment
Holdings, Inc. National Bank (assignee 181038565
of Xxxxxx Capital
Corporation)
Page 1 of 9
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych Systems New York M-Core Credit 11/25/1998 Leased equipment
Holdings, Inc. Corporation 250350
American Psych Systems New York NationsCredit Commercial 12/21/1998 Blanket filing
Holdings, Inc. Corporation, as Agent 266976
American Psych Systems Ohio NationsCredit Commercial 12/21/1998 Blanket filing
Holdings, Inc. Corporation, as Agent XX0000000
American Psych Systems Texas NationsCredit Commercial 12/21/1998 Blanket filing
Holdings, Inc. orporation, as Agent 98-251216
American Psych Systems Inc. Maryland NTFC Capital Corporation 10/2/1995 Leased Norstar equipment
152757140
Note: It is stated that it
is a lease transaction and
that the UCC filing is
only intended to make the
lease a matter of public
record.
American Psych Systems Maryland NationsCredit Commercial 1/6/1999 Blanket filing
of Texas, Inc. Corporation, as Agent 39100000042519
American Psych Systems, Inc. Maryland Xxxx Commercial 12/11/1995 Leased equipment
Credit Corporation 153458193
American Psych Systems, Inc. Maryland M-Core Credit 12/21/1995 Leased equipment
Corporation 153568028
Page 2 of 9
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych Systems, Inc. Maryland Norwest Equipment 1/18/1996 Leased equipment
Finance, Inc. (assignee 160188340
of Sun Data, Inc.)
Note: It is stated that
the UCC filing is for
precautionary purposes
only and is not to be
construed as indicating
that the transaction is
other than a true lease.
*American Psych Systems, Inc. Maryland HCFP Funding, Inc. 3/5/1998 Blanket filing
180688056
American Psych Systems, Inc. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042454
American Psych Systems, Inc. Maryland Lucent Technologies Inc. 9/20/1999 Definity Upgrade and CMS
181929781
American Psych Systems, Inc. Texas NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 98-251217
*American Psych Systems, Inc. Maryland Canpartners Investments 2/11/1998 Blanket filing
Psych Systems PPO, Inc. IV, LLC, as Agent 180427678
CHS Managed Services
American Psych Systems
(f/k/a Principal
Behavioral Health Care, Inc.)
Maryland Psych Systems, L.P.
Maryland Psych Systems, Inc.
Psych Systems Holdings, Inc.
American Psych Systems, Inc., New York Colonial Pacific Leasing 2/26/1997 Leased equipment
DBA CH/ECP Systems (assignee of Blue Chip 039924
Capital Corp.)
Page 3 of 9
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
Az Care, Inc. Arizona Banc of America 11/4/1999 Blanket filing
Commercial Finance 01091592
Corporation, as Agent
CH/ECP Systems, Inc. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042460
CH/ECP Systems, Inc. New York M-Core Credit Corporation 12/18/1995 Leased equipment
252162
CHS Managed Services, Inc. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042458
Community Behavioral Health Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Network, LLC Corporation, as Agent 39100000042523
Manhattan Psych Systems, L.P. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042493
Manhattan Psych Systems, L.P. New York NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 267074
Metropolitan IPA, Inc. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042461
Metropolitan IPA, Inc. New York NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 266992
New York Psych Systems, Inc. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042464
Page 4 of 9
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
New York Psych Systems, Inc. New York NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 266998
New York Psych Systems, LP. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042465
New York Psych Systems, L.P. New York NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 267002
Psych Systems Holdings, Inc. Delaware M-Core Credit Corporation 11/10/1998 Leased office chairs
199850387
Psych Systems Holdings, Inc. Idaho Banc of America 11/4/1999 Blanket filing
Commercial Finance B 852409
Corporation, as Agent
Psych Systems Holdings, Inc. Maryland M-Core Credit Corporation 11/10/1998 Leased office chairs
39100000034611
Psych Systems Holdings, Inc. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042456
Psych Systems Holdings, Inc. Montana Banc of America 11/4/1999 Blanket filing
Commercial Finance 573251
Corporation, as Agent
Psych Systems Holdings, Inc. New York NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 266986
Psych Systems Holdings, Inc. Texas NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 98-251218
Page 5 of 9
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
Psych Systems Holdings, Inc. Utah Banc of America 11/4/1999 Blanket filing
Commercial Finance 99-660406
Corporation, as Agent
Psych Systems IPA, Inc. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042467
Psych Systems IPA, Inc. New York NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 267009
Psych Systems of Cincinnati, Maryland NationsCredit Commercial 1/6/1999 Blanket filing
L.P. Corporation, as Agent 39100000042528
Psych Systems of Cincinnati, Ohio NationsCredit Commercial 12/21/1998 Blanket filing
L.P. Corporation, as Agent XX0000000
*Psych Systems of Cincinnati, Ohio HCFP Funding, Inc. 3/5/1998 Blanket filing
L.P. AP0030874
11/6/1998 Partial Release of all
19983220098 collateral other than
accounts receivable and
all related books, records
and proceeds.
Psych Systems of Long Island, Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Inc. Corporation, as Agent 39100000042468
Psych Systems of Long Island, New York NationsCredit Commercial 12/21/1998 Blanket filing
Inc. Corporation, as Agent 267012
Psych Systems of Long Island, New York HCFP Funding, Inc. 3/19/1998 Blanket filing
Inc. 058542
Psychiatric Services of Long
Island, P.C.
Page 6 of 9
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
Psych Systems of Manhattan, Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Inc. Corporation, as Agent 39100000042514
Psych Systems of Manhattan, New York HCFP Funding, Inc. 3/6/1998 Blanket filing
Inc. 048444
Psych Systems of Manhattan, New York NationsCredit Commercial 12/21/1998 Blanket filing
Inc. Corporation, as Agent 267077
Psych Systems of Westchester, Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Inc. Corporation, as Agent 39100000042473
Psych Systems of Westchester, New York NationsCredit Commercial 12/21/1998 Blanket filing
Inc. Corporation, as Agent 267066
*Psych Systems of New York HCFP Funding, Inc. 3/5/1998 Blanket filing
Westchester, LP 047015
Psych Systems PPO, Inc. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042516
Southwestern Community Texas NationsCredit Commercial 12/21/1998 Blanket filing
Behavioral Care LLC Corporation, as Agent 98-251219
Suffolk Psych Systems, L.P. Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Corporation, as Agent 39100000042471
Suffolk Psych Systems, L.P. New York NationsCredit Commercial 12/21/1998 Blanket filing
Corporation, as Agent 267058
Page 7 of 9
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
Vocational Resources, Inc. Montana U.S. Bancorp Leasing & 2/5/1998 Office furniture and
Financial 529072 equipment
Vocational Resources, Inc. Montana U.S. Bancorp Leasing & 11/19/1997 Office furniture and
Financial 523050 equipment and Lucent
Technologies Definity
Vocational Resources, Inc. North Dakota U.S. Bancorp Leasing & 12/29/1997 Office furniture and
Financial 97-737679 equipment
Vocational Resources, Inc. Washington U.S. Bancorp Leasing & 2/6/1998 Office furniture and
Financial 00-000-0000 equipment
Vydas Resources, Inc. Arizona Banc of America 11/4/1999 Blanket filing
Commercial Finance 01091591
Corporation, as Agent
Vydas Resources, Inc. Idaho Banc of America 11/4/1999 Blanket filing
Commercial Finance B 852408
Corporation, as Agent
Vydas Resources, Inc. Montana Banc of America 11/4/1999 Blanket filing
Commercial Finance 573252
Corporation, as Agent
Vydas Resources, Inc. North Dakota Banc of America 1/25/2000 Blanket filing
Commercial Finance 00-914631
Corporation, as Agent
Vydas Resources, Inc. Utah Banc of America 11/4/1999 Blanket filing
Commercial Finance 99-660407
Corporation, as Agent
Vydas Resources, Inc. Washington Banc of America 11/4/1999 Blanket filing
Commercial Finance 00-000-0000
Corporation, as Agent
Page 8 of 9
Debtor Name Filing Jurisdiction File Date Collateral Description and
(as it appears on the UCC-1) (all are state-level unless Secured Party Name File No. Comments
noted otherwise)
----------------------------------------------------------------------------------------------------------------------------------
American Psych System, Inc. Maryland Minolta Business 7/7/1998 Leased Minolta equipment
Systems, Inc. 39100000015794
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
American Psych System, Inc. Maryland Minolta Business 1/13/1999 Leased Minolta equipment
Systems, Inc. 39100000043756
Note: It is stated that it
is a lease transaction and
that the UCC is filed for
notification purposes
only.
Westchester Behavioral Maryland NationsCredit Commercial 1/6/1999 Blanket filing
Health Network, LLC Corporation, as Agent 39100000042526
Westchester Psych Systems, Maryland NationsCredit Commercial 1/6/1999 Blanket filing
L.P. Corporation, as Agent 39100000042479
Westchester Psych Systems, New York NationsCredit Commercial 12/21/1998 Blanket filing
L.P. Corporation, as Agent 267070
* To be terminated in accordance with the Post-Closing Undertaking.
Page 9 of 9
SCHEDULE 4.02(h)
Litigation
The following could reasonably be expected to have a material and adverse affect
on (i) the assets, operations, business or condition (financial or otherwise) of
the Issuer or its Subsidiaries as a whole, (ii) the ability of the Obligors to
perform their respective Obligations hereunder or (iii) the rights and remedies
of the Purchaser:
1. COMPREHENSIVE CARE CORPORATION, INC.; COMPREHENSIVE BEHAVIORAL CARE, INC.;
AND COMPREHENSIVE HEALTH ASSOCIATES, INC. VS. XXXXXXX XXXXXX AND AMERICAN
PSYCH SYSTEMS, INC., In the Circuit Court of the Thirteenth Judicial
Circuit, In and For Hillsborough County, Florida, Case Number 99-04132.
Xxxxxxx Xxxxxx, Sr. VP of APS, was formerly employed by Comprehensive Care
Corp. ("CCC") in a senior sales position. He was responsible for bringing
the Humana of Puerto Rico contract to CCC. Xxxxxxx Xxxxxx left CCC and
several months later was hired by APS. Humana PR terminated its contract
with CCC and sent out an RFP to which APS responded. APS was awarded the
contract and CCC sued APS for tortious interference with a contract and
sued Xxxxxxx Xxxxxx for breach of his Resignation Agreement wherein
Xxxxxxx Xxxxxx had agreed not to "interfere" with CCC's existing business;
and
2. Claim by the Attorney General for the State of New York to recoup certain
Medicaid payments made to partial hospitalization programs formerly owned
and operated by certain of the Subsidiary entities. The AG claims that APS
billed for 6 hours of service when only 5 hours of service were performed
during week days. The AG further claims that APS improperly billed for
Saturday services becuase you cannot xxxx for any day in which less that
four hours of services were rendered and the AG claims APS only rendered
three hours on Saturdays.
SCHEDULE 5.01(c)
Changes to Financial Condition
NONE
SCHEDULE 5.01(d)(ii)
Material Agreements
Parent and its Subsidiaries have the following material agreements:
1. That certain Agreement for the Provision of Services, dated June 1,
2000, by and between Christiana Care Health Plans and American Psych
Systems, Inc.
2. That certain Behavioral Health Services Agreement, dated September
26, 1997, by and between American Psych Systems, Inc., an Iowa
corporation (formerly, Principal Behavioral Health Care, Inc.),
American Psych Systems Holdings, Inc., a Delaware corporation
(formerly American Psych Systems, Inc.), Principal Health Care,
Inc., an Iowa corporation, and certain listed subsidiaries of
Principal Health Care.
3. That certain State of Georgia, Department of Human Resources
Contract, dated June 10, 1999, by and between the State of Georgia
and American Psych Systems, Inc.
4. That certain Agreement for the Provision of Services, dated January
1, 2000, by and between American Psych Systems, Inc. and Xxxxxx
Xxxxxxxxxx University Health Plan, Inc.
5. That certain Mental and Behavioral Health Services Agreement (Reform
Program), dated May 1, 1999, by and between Humana Health Plans of
Puerto Rico, Inc. and American Psych Systems of Puerto Rico, Inc.
6. That certain Agreement for the Provision of Services, dated January
1, 1999, by and between Xxxxxx Foundation Health Plan of Kansas and
American Psych Systems, Inc.
7. That certain Agreement for the Provision of Services, dated January
1, 2000, by and between Partners National Health Plan of Indiana,
Inc. and American Psych Systems, Inc.
8. That certain Agreement for the Provision of Services, dated December
1, 1998, by and between Priority and American Psych Systems, Inc.
9. That certain Mental Health/Substance Abuse Services Agreement, dated
July 19, 2000, by and between the State of Maryland and American
Psych Systems, Inc.
10. That certain Contract, effective August 1, 2000, by and between the
State of West Virginia, Department of Health and Human Resources,
Bureau for Medical Services and American Psych Systems, Inc.
11. That certain Employee Assistance Program Agreement, effective
November 1, 1998, by and between Blue Cross and Blue Shield of
Montana, Inc. and Vydas Resources, Inc.
12. That certain Utilization Management Agreement, effective January 1,
1999, by and between Blue Cross and Blue Shield of Montana, Inc. and
Vydas Resources, Inc.
13. That certain BlueChip Utilization Management Agreement, effective
October 1, 1999, by and between Blue Cross and Blue Shield of
Montana, Inc. and Vydas Resources, Inc.
14. That certain Integrated Behavioral Health Program Services
Agreement, dated December 22, 1999, by and between Regence Blue
Shield of Idaho and Vydas Resources, Inc.
15. That certain Employee Assistance Program and Individual Assistance
Program Services and Profit-Sharing Agreement, effective July 1,
1999, by and between Regence Blue Shield of Idaho and Vydas
Resources, Inc.
16. That certain Contract for Services, Employee Assistance Program,
effective September 1, 1993, by and between Blue Cross and Blue
Shield of Utah and Vydas Resources, Inc.
17. That certain Employee Assistance Program Agreement, dated February
24, 1997, by and between Blue Cross and Blue Shield of North Dakota
and Vydas Resources, Inc.
18. That certain Development Services Agreement, dated March 31, 2000,
by and between XXxxx.xxx and American Psych Systems, Inc.
19. That certain Promissory Note, in the principal amount of 985,878.08,
dated March 31,2000, by and between Xxxxxxx X. Xxxxxxx, as Borrower
and American Psych Systems Holdings, Inc. as Lender.
20. That certain Employment Agreement, dated April 3, 1995, as amended
on September 26, 1997 and December 23, 1998, by and between Xxxxxxx
X. Xxxxxxx, MD and American Psych Systems, Inc.
21. Those certain Employment Agreements, dated October 18, 1999, by and
between Xxxxxxxx Xxxxxx, Xxxxx Xxxxxxx, Xxxxxxxx X. Xxxxxxxxxx and
Xxxxxx Held and American Psych Systems, Inc.
22. That certain Employment Agreement, dated January 5, 2000, by and
between Xxxxxxx Xxxxxx and American Psych Systems, Inc.
23. That certain Employment Agreement, dated March 28, 1995, by and
between Xxxxx Xxxxxxx and American Psych Systems, Inc.
24. That certain Credit Agreement, dated December 23, 1998, by and
between Bank of America, NA (successor in interest to NationsCredit
Commercial Corporation) and Psych Systems Holdings, Inc., American
Psych Systems Holdings, Inc. and the Lenders listed therein.
25. That certain Promissory Note made in favor of Xxxxxxx X. Xxxxxxx,
dated August 21, 2000, in the principal amount of $750,000 (to be
paid off at Closing).
American Psych Systems, Inc. Schedule 5.01 (e) Permits and Licenses
Parents and Subsidiaries have the following Permits and Licenses:
COMPLIANCE SUMMARY TABLE / February 14, 2001 * New License Requirement
====================================================================================================================================
STATE PHC/APS APS PPO TPA LICENSE STATUS UR LICENSE STATUS RENEWALS
START COI
------------------------------------------------------------------------------------------------------------------------------------
1. Alabama 6/1/94 Yes N/A N/A Expires 7/01/01
------------------------------------------------------------------------------------------------------------------------------------
2. Arkansas 6/30/00 Yes N/A Licensed 6/00 Expires 8/9/02 Awaiting TPA
Expires 1/1/01; Filed Renewal Certificate
Renewal 1/1/01 for 2001
------------------------------------------------------------------------------------------------------------------------------------
3. Arizona 1/1/96 Yes N/A N/A Expires 7/1/01
------------------------------------------------------------------------------------------------------------------------------------
4. Delaware 4/1/94 Yes N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
5. Florida 6/1/94 Yes N/A Licensed 6/10/99; Refiled;
Perpetual upon Expires 9/7/01
annual update filing
------------------------------------------------------------------------------------------------------------------------------------
6. Georgia 7/1/95 Yes N/A Licensed 3/20/98; Expires 6/30/01 Awaiting TPA
Active Filed renewal Certificate
Annual Report
------------------------------------------------------------------------------------------------------------------------------------
7. Idaho 7/14/00 Yes N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
8. Illinois 1/1/95 Yes PPO Filed Licensed:Expires Expires 8/13/02
5/11/99; 5/13/01
Supplemental
Response
To Be Filed
------------------------------------------------------------------------------------------------------------------------------------
9. Indiana 1/1/95 Yes PPO: since 3/97 Licensed:Expires Expires 6/30/01
6/30/01
------------------------------------------------------------------------------------------------------------------------------------
10. Iowa 1/1/96 Yes PPO: since 3/4/97 Licensed:Expires Renewed 9/99;
9/3/02 Expires with
URAC expiration
7/1/01
------------------------------------------------------------------------------------------------------------------------------------
11. Kansas 1/1/96 Yes N/A Licensed: Expires UR: Expires
5/8/01 7/1/01
------------------------------------------------------------------------------------------------------------------------------------
12. Kentucky 1/1/01 Need Unknown Filed TPA Filed UR Awaiting response
Application 1/01 Application 1/01 to 2 Application
filings
------------------------------------------------------------------------------------------------------------------------------------
13. Louisiana 8/1/94 Yes N/A Do Not Have; UR: Expires *Need To File
Need To File 3/31/01 MNRO
In the process Application ASAP
of filing now
------------------------------------------------------------------------------------------------------------------------------------
14. Maryland 4/1/94 Yes N/A Licensed;Expires UR: Expires *Contracting Provider
6/30/01 4/18/01 Registration
Expires 7/23/02
------------------------------------------------------------------------------------------------------------------------------------
15. Michigan 12/23/98 Yes N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
16. Missouri 1/1/96 Yes N/A Licensed 2/6/98; UR: 6/24/01 Renewal Date
Perpetual/Active, 3/01/01
upon annual
renewal; fee payment
------------------------------------------------------------------------------------------------------------------------------------
17. Montana 9/26/84 No N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
18. Nebraska 1/1/95 Yes N/A Licensed; UR: Expires Renewal Date
Perpetual/Active 7/6/01 3/01/01
Upon Annual
Report fee payment
------------------------------------------------------------------------------------------------------------------------------------
19. New York 1/4/00 Yes N/A No Renewed;Expires
9/1/01
------------------------------------------------------------------------------------------------------------------------------------
20. New Jersey 12/22/97 Yes N/A N/A N/A
(URAC)
------------------------------------------------------------------------------------------------------------------------------------
21. North Carolina 4/1/95 Yes N/A; Insurer Licensed:Expires N/A
Responsible 7/1/01
for UR
------------------------------------------------------------------------------------------------------------------------------------
22. Ohio 3/27/00 Yes N/A;UR for Licensed:Expires N/A
Providers Only 6/30/01
------------------------------------------------------------------------------------------------------------------------------------
23. Pennsylvania TBA Yes FILED 3/17/98; No UR: Expires
Needs Amended 10/14/02
response
------------------------------------------------------------------------------------------------------------------------------------
24. South Carolina 4/1/95 Yes N/A Licensed 7/24/97; UR:Expires Renewal Date
Active File Pending 6/30/02 3/01/01
annual renewal
------------------------------------------------------------------------------------------------------------------------------------
25 South Dakota 1/1/01 Need Unknown Working on TPA UR: Application Awaiting UR
filing now Filed 1/01 Approval; Submit
TPA Application
------------------------------------------------------------------------------------------------------------------------------------
26. Tennessee 1/1/01 Need Unknown Performed by Received UR
TN insurer Certificate 3/26/01
------------------------------------------------------------------------------------------------------------------------------------
27. Texas 12/22/97 Yes N/A Licensed 1/2/96 ; UR: Good since DOI to issue
Active Upon payment 2/13/96 Needs to be renewal forms when
of annual fee Investigated & it has completed
Updated its UR reorganization.
APS has never recv'd
update
------------------------------------------------------------------------------------------------------------------------------------
28. Utah 7/26/00 Yes N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
29. Virginia 12/22/97 Yes N/A N/A Approved; Expires
6/30/01
------------------------------------------------------------------------------------------------------------------------------------
30. Wash. D.C. 4/5/97 Yes N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
31. Washington 3/23/00 Yes N/A N/A N/A
(State)
------------------------------------------------------------------------------------------------------------------------------------
32. West Va. 9/15/99 Yes N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE 5.01(f)(i)
Corporate Structure
See Attached
[FLOW CHART]
SCHEDULE 5.01(f)(i)
ENTITY AUTHORIZED ISSUED AND OUTSTANDING QUALIFIED JURISDICTIONS
--------------------------------------------------------------------------------------------------------
American Psych
Systems Holdings, Inc.
Class A Common 37,500,000 11,591,090 Delaware, Maryland, Washington
Class B Common 2,000,000 0
Series I Preferred 8,227,050 7,067,514
Series II Preferred 2,600,000 2,500,886
Series A Preferred 1 0
Psych Systems
Holdings, Inc. 1,000 1,000** Delaware, Maryland
CHS Managed
Services, Inc. 1,000 100** Delaware
CH/ECP Systems, Inc. 10,000 5,690** New York
Psych Systems PPO, Inc. 200 100** New York
American Psych
Systems, Inc. 1,000 1,000** Alabama, Arizona, Delaware,
District Of Columbia, Florida,
Georgia, Illinois, Indiana, Iowa,
Kansas, Louisiana, Maryland,
Michigan, Missouri, Nebraska,
New Jersey, North Carolina,
Pennsylvania, South Carolina,
Texas, Virginia, West Virginia
New York Psych
Systems, Inc. 100 100** New York
Suffolk Psych
Systems, LP
Partnership interest 100% ** New York
Westchester Psych
Systems, LP
Partnership interest 100% ** New York
New York Psych
Systems, LP 83.34% ** New York
American Psych
Systems of Puerto
Rico, Inc. 1,000 1,000** Puerto Rico
American Psych
Systems of Texas, Inc.
Vydas Resources, Inc. 50,000 710** Arizona, Arkansas, Colorado,
Indiana, Montana, Nevada, New
Mexico, North Dakota, Oregon,
Utah, Washington, Wyoming,
California
AzCare, Inc. 120,000 30,000** Arizona
Psych Systems of
Westchester, Inc. 10,000 100** New York
Psych Systems of
Long Island, Inc.
Class A Common 5,000 4,200** New York
Class B Common 5,000 2,895**
(we own 83.3% of
issued and outstanding
stock)
Psych Systems of
Manhattan, Inc. 10,000 100** New York
**Stock Pledged to Bank of America, NA
SCHEDULE 5.01(f)(ii)
Owners of Pledged Securities
See Organizational Chart attached as Schedule 5.01(f)(i)
[FLOW CHART]
SCHEDULE 5.01(f)(ii)(a)
Rights of Conversion into Shares of Parent
See the following attached documents:
1. That certain Shareholder's Rights Agreement, dated October 18, 1999,
by and between American Psych Systems Holdings, Inc. and Combined
Benefits Management, Inc.
2. That certain Warrantholder's Rights Agreement, dated December 23,
1998, by and between American Psych Systems Holdings, Inc. and Bank
of America, NA (formerly Nationscredit Commercial Corporation).
3. That certain Registration Rights Agreement, dated September 26,
1997, as amended by that certain Amendment to Registration Rights
Agreement dated December 23, 1998, by and between American Psych
Systems Holdings, Inc. (formerly American Psych Systems, Inc.) (the
"Company") and Canpartners Investments IV, LLC, Nazem & Company IV,
LP and Transatlantic Venture Partners, CV. and the holders of
securities of the Company.
4. That certain Second Amended and Restated Registration Rights
Agreement, dated June 17, 1996, as amended by that certain Amendment
to the Second Amended and Restated Registration Rights Agreement on
September 26, 1997, by and between American Psych Systems Holdings,
Inc. (formerly American Psych Systems, Inc.) and Applewood
Associates, LP, Seneca Ventures, Woodland Partners, Woodland Venture
Fund, Nazem & Company IV, LP, Oxford Health Plans, Inc. and
Principal Health Care, Inc.
5. That certain Registration Rights Agreement, dated February 3, 1995,
by and between American Psych Systems Holdings, Inc. (formerly
American Psych Systems, Inc.) and KBL Healthcare, Inc. and its
scheduled designees.
6. That certain Registration Rights Agreement, dated February 3, 1995,
by and between American Psych Systems Holdings, Inc. (formerly
American Psych Systems, Inc.) and the scheduled Investors.
7. That certain Registration Rights Agreement, dated February 15, 1994,
by and between American Psych Systems Holdings, Inc. (formerly
American Psych Systems, Inc.) and KBL Healthcare, Inc. and its
scheduled designees.
8. That certain Registration Rights Agreement, dated February 14, 1994,
by and between American Psych Systems Holdings, Inc. (formerly
American Psych Systems, Inc.) and the scheduled Investors.
9. That certain Anti-dilution Rights Agreement, dated February 3, 1995,
by and between American Psych Systems Holdings, Inc. formerly
American Psych Systems, Inc.) and the scheduled Investors.
10. That certain Anti-dilution Rights Agreement, dated March 30, 1994,
by and between American Psych Systems Holdings, Inc. formerly
American Psych Systems, Inc.) and the scheduled Investors.
11. That certain Anti-dilution Rights Agreement, dated March 30, 1994,
as amended by the Amendment to the Anti-dilution Rights Agreement
and Grant of Power of Attorney dated July 17, 1997, by and between
American Psych Systems Holdings, Inc. (formerly American Psych
Systems, Inc.) and KBL Healthcare, Inc. and its scheduled designees.
12. That certain Second Amended and Restate Co-sale and Restricted Stock
Agreement, dated June 17, 1996,as amended by that certain Consent,
Waiver and Amendment Agreement dated September 26, 1997, by and
between American Psych Systems Holdings, Inc. (formerly American
Psych Systems, Inc., Applewood Associates, LP, Seneca Ventures,
Woodland Partners, Woodland Venture Fund, Nazem & Company IV, LP,
Oxford Health Plans, Inc., Xxxxxxx X. Xxxxxxx, MD and Xxxx X.
Xxxxxxx.
13. See also the Warrant Ledger and Stock Option Ledger which are
attached.
Warrants
APS Vesting Legend
05/11/00 33.33%/yr beginning on 1st anniv. date of grant
Unaudited fully vested on grant date
20%/yr beginning on 1st anniv. date of grant
20%/yr for 1st 42 months
of employment, 100% vest
thereafter. IPO, 100% vest
One year at 100% Immediate
and full vesting upon IPO
125k every 90 days after
1st anniversary of grant
date 557548 exercisable
upon 2 consecutive qtrs of
default
Extension Grant Warrants Warrants Warrants Warrants Exercise Expiration Vesting
Name Date Date Granted Exercised Rescinded Outstanding Price Date Terms
Warrants
APS Vesting Legend
05/11/00 33.33%/yr beginning on 1st anniv. date of grant
Unaudited fully vested on grant date
20%/yr beginning on 1st anniv. date of grant
20%/yr for 1st 42 months
of employment, 100% vest
thereafter. IPO, 100% vest
One year at 100% Immediate
and full vesting upon IPO
125k every 90 days after
1st anniversary of grant
date 557548 exercisable
upon 2 consecutive qtrs of
default
Extension Grant Warrants Warrants Warrants Warrants Exercise Expiration Vesting
Name Date Date Granted Exercised Rescinded Outstanding Price Date Terms
------------------------------------------------------------------------------------------------------------------------------------
1991
Xxxxxxxxx, Xxxx X. 10/15/91 90,000 90000 0 $0.00 6/30/95 B
1992
Xxxxxxx, Xxxxxx X. 01/24/00 1/24/92 30,000 30000 0 $1.00 1/24/97 A
Xxxxxxx, Xxxxxxx X. 1/24/92 30,000 30000 0 $1.00 1/24/97 A
Xxxxxx, Xxxxx 4/16/92 23,750 23750 0 $1.00 4/16/97 B
1993
Xxxxxxx, Xxx 04/01/2000 4/1/93 762,199 762199 0 $0.90 4/1/98 B
Xxxxxxx, Xxx 12/11/01 12/12/93 40,984 40984 $1.22 12/11/98 B
Xxxxxxx, Xxxxxx 04/01/2000 4/1/93 3,303 3303 0 $0.90 4/1/98 B
Xxxxxxx, Xxxx X. 04/01/2000 4/1/93 55,556 55556 0 $0.90 4/1/98 B
Xxxxxxxxx, Xxxx X. 04/01/2000 4/1/93 26,558 26558 0 $0.90 4/1/98 B
Xxxxxxx, Xxxxxxx & Xxxx 04/01/2000 4/1/93 3,320 3328 0 $0.90 4/1/98 B
Xxxxxxxx, Xxxxx & Xxxx 04/01/2000 4/1/93 8,889 8889 0 $0.90 4/1/98 B
Xxxxxxxxx, Xxxxx 04/01/2000 4/1/93 11,111 11111 0 $0.90 4/1/98 B
Xxxxxxxx, Xxxxxxx X. 04/01/2000 4/1/93 3,886 3886 0 $0.90 4/1/98 B
Xxxxxxx, Xxxxxxx X. 04/01/2000 4/1/93 42,744 42,744 0 $0.90 4/1/98 B
Xxxxxxx, Xxxxx & Xxxxx 04/01/2000 4/1/93 9,714 9,714 0 $0.90 4/1/98 B
Xxxxxxx, Xxxx X. 04/01/2000 4/1/93 3,886 3,886 0 $0.90 4/1/98 B
Xxxxxxxx, Xxxx X. 04/01/2000 4/1/93 1,660 1,660 0 $0.90 4/1/98 B
Xxxxxx, Xxxxxx & Xxxxx 04/01/2000 4/1/93 3,320 3,320 0 $0.90 4/1/98 B
Warrants
APS Vesting Legend
05/11/00 33.33%/yr beginning on 1st anniv. date of grant
Unaudited fully vested on grant date
20%/yr beginning on 1st anniv. date of grant
20%/yr for 1st 42 months
of employment, 100% vest
thereafter. IPO, 100% vest
One year at 100% Immediate
and full vesting upon IPO
125k every 90 days after
1st anniversary of grant
date 557548 exercisable
upon 2 consecutive qtrs of
default
Extension Grant Warrants Warrants Warrants Warrants Exercise Expiration Vesting
Name Date Date Granted Exercised Rescinded Outstanding Price Date Terms
------------------------------------------------------------------------------------------------------------------------------------
1994
Xxxxx, Xxxxxxx X. 3/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxxxx, Xxxx X. 02/19/01 2/19/94 448 448 $1.00 2/18/99 E
Xxxxxxx, Xxxxx & Xxxx 5/2/94 7,500 7500 0 $1.50 5/31/97 B
Xxxx, Xxxxxxx X. 6/15/94 11,133 11,133 0 $1.00 5/31/99 B
Xxxxxxx, Xxxxxx Xx. 3/30/94 12,500 12,500 0 $1.50 5/31/97 B
Xxxxxxx, Xxxxxx 2/19/01 2/19/94 892 892 $1.00 2/18/99 E
Xxxxxxx, Xxxxxx 2/19/01 2/19/94 892 892 $1.00 2/18/99 E
B&J Mgmt Corp. 3/30/94 12,500 12,500 0 $1.50 5/31/97 B
Xxxxx Family Trust 5/2/94 5,000 5,000 0 $1.50 5/31/97 B
Xxxxx, Xxxxxx X. 3/30/94 8,900 8,900 0 $1.00 5/31/99 B
Xxxxx, Xxxxxxxx 5/2/94 1,250 1,250 0 $1.50 5/31/97 B
XxXxxxxx, Xxxxxx X. 5/2/94 5,000 5,000 0 $1.50 5/31/97 B
Xxxxx, Xxxxxxx 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxxx, Xxxxxx 11/1/94 25,000 25,000 0 $1.00 10/31/99 B
Xxx, Xxxxx X. 3/30/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxx, Xxxxx X. 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxxxxx, Xxxxx 3/30/94 12,500 12,500 0 $1.50 5/31/97 B
French, Xxxxx X. 3/30/94 3,000 3,000 0 $1.00 5/31/99 B
Xxxxxxxx, Xxxxxxx X. 02/19/01 2/19/94 1,048 1,048 $1.00 2/18/99 E
Xxxxxxx, Xxxxx X. 5/2/94 5,000 5,000 0 $1.50 5/31/97 B
Xxxxxx, Xxxxxxx & Xxxxx 02/19/01 2/19/94 2,241 2,241 $1.00 2/19/99 E
Xxxxxxxxx, Xxx 3/30/94 12,500 12,500 0 $1.50 5/31/97 B
Xxxxxxx, Xxxx X. 02/19/01 2/19/94 15,000 15,000 $1.00 2/18/99 E
Xxxxxx, Xxxxxx X. 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxx, X. Xxxxxx 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxx, Xxxxxxx X. 5/2/94 2,500 2,500 0 $1.50 3/31/97 B
Xxxxxxx, Xxxxxxx 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxx, Xxxx 7/18/94 6,250 6,250 0 $1.50 5/31/97 B
KBL Healthcare, Inc. Transferred 3/30/94 33,400 0 $1.00 5/31/99 B
Xxxxxxx, Xxx 02/19/01 2/19/94 205,794 205,794 $1.00 2/19/99 E
Xxxxxxx, Xxx 11/08/01 11/8/94 32,670 32670 0 $1.35
Xxx Family Trust 5/2/94 6,250 6,250 0 $1.30 5/31/97 B
Xxxxxxxxx, Xxxxx X. 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxx Xxxxxxx 6/15/94 22,267 22,267 0 $1.00 5/31/99 B
Xxxxxxxxxx, Xxxx X. 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxx, Xxxxxx X. 3/30/94 4,700 4,700 0 $1.00 5/31/99 B
Xxxxxxx, Xxxx X. & Xxxxx X. 5/2/94 12,500 12,500 0 $1.50 5/31/97 B
Xxxxxxx, Xxxxxx X. 5/2/94 3,750 3,750 0 $1.50 3/31/97 B
Warrants
APS Vesting Legend
05/11/00 33.33%/yr beginning on 1st anniv. date of grant
Unaudited fully vested on grant date
20%/yr beginning on 1st anniv. date of grant
20%/yr for 1st 42 months
of employment, 100% vest
thereafter. IPO, 100% vest
One year at 100% Immediate
and full vesting upon IPO
125k every 90 days after
1st anniversary of grant
date 557548 exercisable
upon 2 consecutive qtrs of
default
Extension Grant Warrants Warrants Warrants Warrants Exercise Expiration Vesting
Name Date Date Granted Exercised Rescinded Outstanding Price Date Terms
------------------------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxxxx X. 5/2/94 12,500 12,500 0 $1.50 5/31/97 B
Xxxxxx, Xxxxxx 3/30/94 12,500 12,500 0 $1.50 5/31/97 B
Xxxxxx, Xxxxxx & Xxxxx 02/19/01 2/19/94 897 897 $1.00 2/19/99 E
Xxxxxx, Xxxxxx X. 5/2/94 2,500 2,500 0 $1.50 5/31/97 B
Xxxxxxx, Xxxxxxx X. 02/19/01 2/19/94 11,541 11,541 $1.00 2/18/99 E
Xxxx, Xxxxxx 3/30/94 6,250 6,250 0 $1.50 5/31/97 X
Xxxxxxxxx, Sundaram 7/18/94 25,000 25,000 0 $1.50 5/31/97 B
Xxxxxxx, Xxxxx & Xxxxx 02/19/01 2/19/94 2,623 2,623 $1.00 2/19/99 E
Xxxx, Xxxx 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxx, Xxxxxxx X. 5/2/94 3,750 3,750 0 $1.50 5/31/97 B
Schwab, Xxxxxx Xxxxxxxx 3/30/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxx, Xxxxxxxx X. 3/30/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxxxxx, Xxxx X. 02/19/01 2/19/94 7,171 7,171 $1.00 2/18/99 E
Xxxxxxx, Xxxxxxx 3/30/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxxxx, Xxxxxx 5/2/94 12,500 12,500 0 $1.50 5/31/97 B
Xxxxxxx, Xxxxxxx & Xxxx 02/19/01 2/19/94 897 897 $1.00 2/19/99 E
Xxxxxxxx, Xxxxxx & Xxxxxxx 5/2/94 6,250 6,250 0 $1.50 5/31/97 B
Xxxxxxxxx Xxxxxxx Partners, L.P. 3/30/94 100,000 100,000 0 $1.50 5/31/97 B
Xxxxxxxx, Xxx X. 02/19/01 2/19/94 2,400 2,400 $1.00 2/18/99 E
U.S. Group, Inc. 5/2/94 25,000 25,000 0 $1.50 5/31/97 B
Xxxxxxxxx, Xxxxx X. 02/19/01 2/19/94 3,000 3,000 $1.00 2/18/99 E
Xxxxxxxx, Xxxxxx X. 5/2/94 25,000 25,000 0 $1.50 5/31/97 B
Xxxxxxx, Xxxx X. 02/19/01 2/19/94 1,048 1,048 $1.00 2/18/99 E
Xxxxxx, Xxxxxx 5/2/94 18,750 18,750 0 $1.50 5/31/97 B
1995
Xxxxx, Xxxxxx X. 2/3/95 12,592 12,592 0 $1.35 1/31/00 B
Xxxxx, Xxxxxx X. 5/1/95 1,389 1,389 0 $1.35 1/31/00 B
XxXxxxx, Xxxxxxxx 2/3/95 3,690 3,690 0 $1.35 1/31/00 B
X.X. Xxxxx & Co. 2/3/95 37,408 37,408 0 $1.35 1/31/00 B
Xxxxx, Xxxxxxx 2/3/95 15,736 15,736 0 $1.35 1/31/00 B
Xxxxxx, Xxxxx 2/3/95 2,000 2,000 0 $1.35 1/31/00 B
GKN Securities Corp. 5/1/95 5,186 5,186 0 $1.35 1/31/00 B
Xxxxxxxxx, Xxxxxx 5/1/95 2,594 2,594 0 $1.35 1/31/00 B
Xxxxxxxxx, Xxxxx 5/1/95 2,594 2,594 0 $1.35 1/31/00 B
KBL Healthcare 5/1/95 11,550 11,550 0 $1.35 1/31/00 B
KBL Healthcare 2/3/95 71,345 71,345 0 $1.35 1/31/00 B
Xxxxxxxxx, Xxxxx 2/3/95 7,424 7,424 0 $1.35 1/31/00 B
Xxxxxxxx, Xxxxx 5/1/95 2,594 2,594 0 $1.35 1/31/00 B
Xxxxxxx, Xxxxxx 2/27/95 9,241 9,241 0 $1.35 1/31/00 B
Warrants
APS Vesting Legend
05/11/00 33.33%/yr beginning on 1st anniv. date of grant
Unaudited fully vested on grant date
20%/yr beginning on 1st anniv. date of grant
20%/yr for 1st 42 months
of employment, 100% vest
thereafter. IPO, 100% vest
One year at 100% Immediate
and full vesting upon IPO
125k every 90 days after
1st anniversary of grant
date 557548 exercisable
upon 2 consecutive qtrs of
default
Extension Grant Warrants Warrants Warrants Warrants Exercise Expiration Vesting
Name Date Date Granted Exercised Rescinded Outstanding Price Date Terms
------------------------------------------------------------------------------------------------------------------------------------
Reisley, Xxxxxx X. 5/1/95 7,437 7,437 0 $1.35 1/31/00 B
Xxxx, Xxxx 2/3/95 10,393 10,393 0 $1.35 1/31/00 B
Xxxxxxx, Xxxxxxx X. 2/3/95 14,251 14,251 0 $1.35 1/31/00 B
1996
Applewood Associates, L.P. 6/17/96 71,271 71,271 $1.22 6/17/01 B
Nazem & Company IV, L.P. 6/17/96 409,836 409,836 $1.22 6/17/01 B
Oxford Health Plus, Inc. 6/17/96 614,754 614,754 $1.22 6/17/01 B
Seneca Ventures 6/17/96 8,197 8,197 $1.22 6/17/01 B
Woodland Partners 6/17/96 10,246 10,246 $1.22 6/17/01 B
Woodland Venture Fund 6/17/96 12,295 12,295 $1.22 6/17/01 B
1997
Nazem & Co. 9/26/97 29,762 29,762 $0.01 9/26/07 B
Transatlantic Venture 9/26/97 59,524 59,524 $0.01 9/26/07 B
Canpartners, Inc. 9/26/97 910,714 910,714 $0.01 9/26/07 B
Nazem & Co. 9/26/97 29,762 29,762 $0.01 9/26/07 G
Transatlantic Venture 9/26/97 59,524 59,524 $0.01 9/26/07 G
Canpartners, Inc. 9/26/97 910,714 910,714 $0.01 9/26/07 G
Nazem & Co. 9/26/97 8,929 8,929 $3.50 9/26/03 B
Transatlantic Venture 9/26/97 17,857 17,857 $3.50 9/26/03 B
Canpartners, Inc. 9/26/97 273.214 273,214 $3.50 9/26/03 B
1998
Nations Credit 12/23/98 1,853,848 1,296,299 $0.01 12/23/08
2000
Xxxxxxx X. Xxxxxxx, M.D. 08/21/00 75,000 75,000 $0.01 8/21/05 B
Totals 7,556,963 794,869 2,076,379 4,094,774
Stock Options-FAS 123
APS Employee Status Legend Vesting Legend
12/31/99 Employee 33.33%/yr beginning on 1st anniv. date o
Unaudited Independent Contractor/Consultant fully vested on grant date
Board Member 20%/yr beginning on 1st anniv. date of gr
Terminated (date) 20%/yr for 1st 42 months of employment,
One year at 100%
Employee Grant Options Options Options Options Exercise Expiration Pd Vesting
Name Status Date Granted Exercised Rescinded Outstanding Price Date (yrs) Terms
------------------------------------------------------------------------------------------------------------------------------------
NONSTATUTORY/NONQUALIFIED
1992
Greenwood, L. C 07/22/92 8,168 0 8,168 0 $0.61 7/22/97 3 A
Xxxxxxx, P. C 08/24/92 10,891 0 10,891 0 $0.61 8/24/97 0 B
1993
Xxxxxx, R. C 06/01/93 12,251 0 12,251 0 $0.61 6/1/98 0 B
Xxxxxx, R. C 10/14/93 7,500 0 7,500 0 $1.00 10/14/98 0 B
1994
Feather, J. C 02/01/94 10,000 0 10,000 0 $1.00 2/1/99 0 B
1995
Xxxxxx, B. B 04/21/95 25,000 0 25,000 0 $1.22 4/21/00 5 C
1996
Xxxxxx, P. E 03/01/96 16,000 0 0 16,000 $1.22 3/1/01 5 C
2000
Xxxxxxx, X X 04/14/00 150,000 0 0 150,000 $2.85 4/14/05 5 F
INCENTIVE STOCK OPTIONS (ISO)
1994
Xxxxxxx, C. E 01/01/94 1,200 0 1,200 0 $1.00 1/1/99 5 C
Xxxxxx, C. E 07/18/94 6,500 0 6,500 0 $1.00 7/18/99 5 C
Kabb, G. E 09/01/94 4,000 0 4,000 0 $1.00 9/1/99 5 C
Xxxxxxxxx, W. E 09/01/94 4,000 0 4,000 0 $1.00 9/1/99 5 C
Xxxxxxxx, S. E 07/25/94 4,000 0 4,000 0 $1.00 7/25/99 5 C
Xxxxx, A. T (10/30/98) 07/28/94 4,000 0 4,000 0 $1.00 7/28/99 5 C
1995
Xxxxxxx, P. E 04/21/95 25,000 0 25,000 0 $1.22 4/21/00 3 A
Xxxxxxx, J. E 04/21/95 5,000 0 5,000 0 $1.22 4/21/00 5 C
Xxxxxxxxx, M. E 04/21/95 4,000 0 4,000 0 $1.22 4/21/00 0 X
Xxxxxxx, X. X 04/21/95 12,500 0 12,500 0 $1.22 4/21/00 5 C
Demazo, J. E 04/21/95 12,500 0 12,500 0 $1.22 4/21/00 5 C
Xxxxxx, C. T (5/31/99) 08/11/95 6,300 0 0 6300 $1.22 8/11/00 5 C
Xxxxxxx, C. E 08/11/95 6,300 0 0 6,300 $1.22 8/11/00 5 C
Xxxxxxxxx, C. E 08/11/95 175,000 5,000 0 170000 $1.22 8/11/00 5 C
Xxxxxxxxxxx, M. E 08/11/95 7,500 0 0 7,500 $1.22 8/11/00 5 C
Xxxxxxxxx, M. E 08/11/95 12,500 0 0 12,500 $1.22 8/11/00 5 C
Xxxxx, A. T (10/30/98) 10/27/95 5,000 0 5,000 0 $1.22 10/27/00 5 C
Xxxxx, A. T (10/30/98) 12/01/95 21,000 0 21,000 0 $1.22 5 C
Xxxxxx, P. E 12/15/95 50,000 0 0 50,000 $1.22 12/15/00 5 C
Chesney, S. E 12/15/95 55,000 0 0 0 $1.22 12/15/00 5 C
1996
Xxxxxxx, C. E 03/01/96 2,500 0 0 2,500 $1.22 3/1/01 5 C
Xxxxx, M. E 03/01/96 5,000 0 0 5,000 $1.22 3/1/01 5 C
XxXxxxxx, K. E 03/01/96 10,000 0 0 10,000 $1.22 3/1/01 5 C
Liss, M. E 03/01/96 2,500 0 0 2,500 $1.22 3/1/01 5 C
Xxxxxxxx, C. E 03/01/96 5,000 0 0 5,000 $1.22 3/1/01 5 C
Zazlov, M. E 03/01/96 5,000 0 0 5,000 $1.22 3/1/01 5 C
Xxxxx, A. E 05/03/96 16,000 0 0 16,000 $1.22 5/3/01 5 C
Xxxxx, A. E 05/03/96 9,435 0 0 9,435 $1.22 5/3/01 5 C
Xxxxxxxx, R. E 05/03/96 25,000 20,000 0 5,000 $1.22 5/3/01 5 C
Xxxxxxx, T. T (5/30/97) 07/19/96 35,000 7,000 28,000 0 $1.22 7/19/01 5 C
Xxxxxx, C. T (5/31/99) 07/19/96 28,500 0 0 28,500 $1.22 7/19/01 5 C
Xxxxxxxx, S. E 07/19/96 3,500 0 0 3,500 $1.22 7/19/01 5 C
McKle, P. T (10/30/98) 12/13/96 2500 0 2500 0 $1.22 12/13/01 5 C
Xxxxx, E. T (9/26/97) 12/13/96 60,000 0 60,000 0 $1.22 12/13/01 5 C
Xxxxx, R. MD C 12/13/96 12,500 0 0 12,500 $1.22 12/13/01 5 C
Xxxxx, R. MD C 12/13/96 5,000 0 0 5,000 $1.22 12/13/01 5 C
Xxxxx, R. MD C 12/13/96 7,500 0 0 7,500 $1.22 12/13/01 5 C
Xxxxx, R. MD C 12/13/96 5,000 0 0 5,000 $1.22 12/13/01 5 C
Xxxxxxxx, R. E 12/13/96 4,000 0 0 4,000 $1.22 12/13/01 5 C
Xxxxxxxxx, C. T (7/10/98) 12/13/96 20,000 0 20,000 0 $1.22 12/13/01 5 C
1997
Xxxxxx, S. E 04/18/97 50,000 0 0 50,000 $1.22 4/18/02 5 C
XxXxxxxxx, C. E 04/18/97 20,000 0 0 20,000 $1.22 4/18/02 5 C
Xxxxxxxxx, C. T (7/10/98) 09/19/97 970 0 970 0 $1.44 9/19/02 5 C
Xxxxxxxx, R. E 09/19/97 440 0 0 440 $1.44 9/19/02 5 C
Xxxxxxxx, A. E 09/19/97 4,000 0 0 4,000 $1.44 9/19/02 5 C
Xxxxxxx, X X 09/19/97 15,000 0 0 15,000 $1.44 9/19/02 5 C
Xxxxxx, H E 09/19/97 130,000 0 0 130,000 $1.44 9/19/00 3 A
Xxxxxxx, S. B 11/21/97 100,000 0 0 100,000 1.44 11/21/07 10 B
1998
Afrangui, I E 03/13/98 7,500 0 0 7,500 $1.44 3/13/03 5 C
Xxxxxx, R. T (2/8/00) 03/13/98 75,000 0 75,000 0 $1.44 3/13/03 5 C
Bucello, G. E 03/13/98 5,000 0 0 5,000 $1.44 3/13/03 5 C
Xxxxxxx, R. E 03/13/98 7,500 0 0 7,500 $1.44 3/13/03 5 C
Donhesier, G. E 03/13/98 4,100 0 0 4,100 $1.44 3/13/03 5 C
Xxxxx, K. E 03/13/98 4,000 0 0 4,000 $1.44 3/13/03 5 C
Xxxxxxxx, D. E 03/13/98 180,000 0 0 180,000 $1.44 3/13/01 3 X
Xxxxx, R. T (2/22/00) 03/13/98 15,000 0 15,000 0 $1.44 3/13/03 5 C
Xxxxxxxxxx, M. E 03/13/98 7,500 0 0 7,500 $1.44 3/13/03 5 C
Xxxxx-Xxxxxxx, C. E 03/13/98 15,000 0 0 15,000 $1.44 3/13/03 5 C
Xxxxxxxx, R. E 03/13/98 404 0 0 404 $1.44 3/13/03 5 C
Xxxxxxxxx, C. E 03/13/98 970 0 0 970 $1.44 3/13/03 5 C
Xxxxxxxx,A. E 03/13/98 6,000 0 0 6,000 $1.44 3/13/03 5 C
Van der Xxxxx, L. E 03/13/98 15,000 0 0 15,000 $1.44 3/13/03 5 C
Xxxxxx, R. E 03/13/98 7,500 0 0 7,500 $1.44 3/13/03 5 C
Xxxxxxx, E. T (9/10/99) 08/01/98 15,000 0 15,000 0 $1.44 8/1/03 5 C
Xxxxxxx, K. E 01/01/98 115,877 0 0 115,877 $1.44 1/1/01 3 A
Xxxxxx, H. E 01/01/98 11,458 0 0 11,458 $1.44 1/1/01 3 A
Xxxxxx, S. E 01/01/98 13,310 0 0 13,310 $1.44 1/1/01 3 A
DaRe, S. E 12/04/98 100,000 0 0 100,000 $1.44 12/4/03 5 C
1999
Xxxxxxx, B. E 02/19/99 7,500 0 0 7,500 $1.44 2/19/04 5 C
Xxxxxxx, E. T (9/10/99) 02/19/99 5,000 0 5,000 0 $1.44 2/19/04 5 C
DaRe, S. E 05/28/99 25,000 0 0 25,000 $1.44 5/28/04 5 C
Singh, A. E 05/28/99 5,000 0 0 5,000 $1.44 5/28/04 5 C
Xxxxxxx, K. E 05/28/99 35,000 0 0 35,000 $1.44 5/28/04 5 C
Xxxxxxxxx, M. E 05/28/99 47,000 0 0 47,000 $1.44 5/28/04 5 C
Powers, R. E 05/28/99 66,666 0 0 66,666 $1.44 5/28/04 0 B
Xxxxxx, C. T (1/3/00) 09/17/99 5,000 0 5,000 0 $1.44 9/17/04 5 C
May, D. T (6/6/00) 09/17/99 7,500 0 7,500 0 $1.44 9/17/04 5 C
Xxxxxx, A. E 09/17/99 75,000 0 0 75,000 $1.44 9/17/04 5 C
Cakora, G. E 09/17/99 2,000 0 0 2,000 $1.44 9/17/04 5 C
Xxxxxxx, B. E 09/17/99 1,500 0 0 1,500 $1.44 9/17/04 5 C
Xxxxx, B. E 12/03/99 1,000 0 0 1,000 $2.85 12/3/05 5 C
Xxxxxx, S. T (4/7/00) 12/03/99 1,000 0 1,000 0 $2.85 12/3/05 5 C
Xxxxxxx, S. E 12/03/99 1,000 0 0 1,000 $2.85 12/3/05 5 C
Xxxxxxx, S. E 12/03/99 3,000 0 0 3,000 $2.85 12/3/05 5 C
Tavener, J. E 12/03/99 1,000 0 0 1,000 $2.85 12/3/05 5 C
Xxxxxx, J. E 12/03/99 1,000 0 0 1,000 $2.85 00/0/00 0 X
Xxxxxx, X. X (4/18/00) 12/03/99 1,000 0 1000 0 $2.85 12/3/05 5 C
Xxxxxx, D. E 12/03/99 2,000 0 0 2,000 $2.85 12/3/05 5 C
XxXxxxxxx, H. T (3/10/00) 12/03/99 3,000 0 3,000 0 $2.85 12/3/05 5 C
Xxxxx, K. E 12/03/99 10,000 0 0 10,000 $
2.85 12/3/05 5 C
Xxxxxx, D. E 12/03/99 10,000 0 0 10,000 $2.85 12/3/05 5 C
Gross, C. E 12/03/99 20,000 0 0 20,000 $2.85 12/3/05 5 C
Xxxxx, N. E 12/03/99 100,000 0 0 100,000 $2.85 12/3/05 5 C
Xxxxxxxxx, R. E 03/22/99 60,000 0 0 60,000 $2.85 3/22/05 1 E
Xxxxxx, C. E 10/18/99 125,000 0 0 125,000 $2.85 12/3/05 5 C
Gianchetta, D. E 10/18/99 90,000 0 0 90,000 $2.85 12/3/05 5 C
Xxxxxxx, W. E 10/18/99 75,000 0 0 75,000 $2.85 12/3/05 5 C
Held, A. E 10/18/99 20,000 0 0 20,000 $2.85 12/3/05 5 C
2000
Xxxxxxxx, P. E 04/14/00 10,000 0 0 10,000 $2.85 4/14/05 5 C
Childers, C. E 04/14/00 10,000 0 0 10,000 $2.85 4/14/05 5 C
Cochrane, T. E 04/14/00 125,000 0 0 125,000 $2.85 4/14/05 5 C
Xxxxxxx, R. E 04/14/00 2,000 0 0 2,000 $2.85 4/14/05 5 C
Xxxxxx, L. E 04/14/00 35,000 0 0 35,000 $2.85 4/14/05 5 C
Xxxxx, J. E 04/14/00 30,000 0 0 30,000 $2.85 4/14/05 5 C
Xxxxxxx, D. E 04/14/00 10,000 0 0 10,000 $2.85 4/14/05 5 C
Xxxxxxx, L. E 04/14/00 10,000 0 0 10,000 $2.85 4/14/05 5 C
Xxxxx, S. E 04/14/00 4,000 0 0 4,000 $2.85 4/14/05 5 C
Kodora, R. E 04/14/00 150,000 0 0 150,000 $2.85 4/14/05 5 C
XxXxxxxxxx, D. E 04/14/00 7,500 0 0 7,500 $2.85 4/14/05 5 C
Xxxxxx, Xxxx E 04/14/00 5,000 0 0 5,000 $2.85 4/14/05 5 C
Xxxxxx, Xxxxx X 04/14/00 1,000 0 0 1,000 $2.85 4/14/05 5 C
Powers, R. E 04/14/00 33,333 0 0 33,333 $2.85 4/14/05 5 C
Xxxxxx, Xxxx X 04/14/00 2,500 0 0 2,500 $2.85 4/14/05 5 C
Xxxxxx, Xxxx E 04/14/00 25,000 0 0 25,000 $2.85 4/14/05 5 C
TOTAL 3,118,073 32,000 421,480 2,609,593
================================================================================
460,333
SCHEDULE 5.01(f)(ii)(b)
Rights of Conversion into Shares of Non-Parent Obligors
NONE
SCHEDULE 5.01(f)(ii)(c)
Rights of Conversion into Shares of Non-Obligor Subsidiaries
NONE
SCHEDULE 5.01(i)
Chief Executive Office of Obligors and Location of Records
The Chief Executive Office and location of the records concerning the Collateral
or any goods included in the Collateral for Parent and all of its subsidiaries,
except those specified below, is as follows:
0000 Xxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxxx, XX 00000
and
00000-X Xxxxxxxxxxx Xxx
Xxxxxx Xxxxxx, XX 00000
The location of the records concerning the Collateral or any goods included in
the Collateral for certain Obligors is as follows:
Vydas Resources, Inc. and AzCare, Inc.
0000 Xxxxxx Xxxxxx
Xxxxxxxx, XX 00000-0000
American Psych Systems of Puerto Rico, Inc.
0 Xxxxxxx Xxxxxx
Xxxxx Xxxxxxxx, 0xx Xxxxx
Xxxx Xxx, XX 00000
SCHEDULE 5.01(n)
Material Assets
See Attached
Fixed Assets Inventory List
Ranges:
Asset ID: First to Last
Description: First to Last
Asset Type: First to Last Cost Basis: First to Last
Structure ID: First to Last Accum Depr: First to Last
Class ID: First to Last Net Book: First to Last
Location ID: 02 to 02 Amort Code: First to Last
Property Type: First to Last Pl in Svc Date: First to Last
Quantity: First to Last Acquire Date: First to Last
Sorted By: Asset ID
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
Printer COMP00000000030-1 02 1 982.41 982.41 0.00
CCS Mini 230w & Backup COMP00000000031-1 02 1 2,579.02 2,579.02 0.00
Computer Proliant 6000 COMP00000000032-1 02 1 17,011.05 17,011.05 0.00
Upgrade Great Plains Software COMP00000000033-1 02 1 13,900.00 13,900.00 0.00
Compaq Smart Array 2/p COMP00000000034-1 02 1 5,217.46 5,217.46 0.00
Computers COMP00000000035-1 02 1 2,041.60 1,984.88 56.72
Computers COMP00000000036-1 02 1 7,295.56 6,890.22 405.34
Server Hard Drives COMP00000000037-1 02 1 2,355.00 2,093.36 261.64
Computer COMP00000000038-1 02 1 2,437.77 1,897.61 540.16
View- 17 inch. COMP00000000039-1 02 1 625.85 469.91 155.94
Computer- Q4550 COMP00000000040-1 02 1 1,249.50 938.12 311.38
Lap Top Computer COMP00000000041-1 02 1 3,241.40 2,433.65 807.75
Compaq DLT 15/30GB Tape Drive COMP00000000042-1 02 1 2,401.14 1,802.76 598.38
4550MB SeaGate Ultra SCSI COMP00000000043-1 02 1 566.37 425.25 141.12
CMPQ DP2000 COMP00000000044-1 02 1 1,468.00 1,102.21 365.79
RPTS Upgrade COMP00000000045-1 02 1 922.00 691.49 230.51
Call Master III COMP00000000046-1 02 1 4,725.00 3,547.53 1,177.47
Toshiba Satellite 225 CDS COMP00000000047-1 02 1 1,020.46 766.14 254.32
Compaq DeskPro 6000 COMP00000000048-1 02 1 2,934.68 2,203.33 731.35
Compaq Proliant 2500 4.3 GIG COMP00000000049-1 02 1 1,683.94 1,264.31 419.63
Compaq XXX Xxxx Xxxxx XXXX00000000000-0 00 0 2,412.00 1,810.96 601.04
View- 17 inch. COMP00000000051-1 02 1 1,176.35 883.20 293.15
X/Xxxx XXX X0 Xxxxxxx Xx XXXX00000000000-0 00 0 2,984.35 2,240.65 743.70
CMPQ DP 2000 COMP00000000053-1 02 1 2,936.00 2,204.34 731.66
View- 17 inch. COMP00000000054-1 02 1 1,117.20 838.79 278.41
CMPQ DP 400 COMP00000000055-1 02 1 4,902.00 3,680.44 1,221.56
Computer Equipment COMP00000000056-1 02 1 1,249.50 938.12 311.38
Computer Equipment COMP00000000057-1 02 1 1,246.35 935.74 310.61
Computer Equipment COMP00000000058-1 02 1 949.70 713.04 236.66
Compaq DP2000 P233X 32/2.1 COMP00000000059-1 02 1 6,228.00 4,501.50 1,726.50
Sun Data Station 175213 COMP00000000060-1 02 1 1,614.00 1,166.55 447.45
Compaq 4540 AMD K6 233MMX COMP00000000061-1 02 1 1,134.00 819.63 314.37
Pinnacle Software COMP00000000062-1 02 1 4,500.00 3,252.52 1,247.48
Belk Omni COMP00000000063-1 02 1 567.00 394.17 172.83
Arcserve v6.5 COMP00000000064-1 02 1 861.00 598.50 262.50
Compaq DeskPro COMP00000000065-1 02 1 969.00 673.64 295.36
Compaq DP2000 COMP00000000066-1 02 1 1,743.47 1,212.01 531.46
Compaq DP2000 COMP00000000067-1 02 1 1,734.47 1,205.76 528.71
Compaq DP2000 COMP00000000068-1 02 1 1,573.47 1,093.83 479.64
Compaq DP2000 COMP00000000069-1 02 1 1,573.47 1,093.83 479.64
APC UPS Office 250 and 1400 COMP00000000070-1 02 1 1,613.15 1,121.37 491.78
Compaq DeskPro COMP00000000071-1 02 1 969.00 673.64 295.36
Compaq DeskPro COMP00000000072-1 02 1 969.00 673.64 295.36
Viewsonic 17" G773 Monitor COMP00000000073-1 02 1 472.91 328.72 144.19
Viewsonic 17" G773 Monitor COMP00000000074-1 02 1 472.91 328.72 144.19
MS Office 97 std full cd COMP00000000075-1 02 1 508.78 353.65 155.13
Viewsonic 17" G773 Monitor COMP00000000076-1 02 1 472.91 328.72 144.19
Arcserve for Windows NT v6.5 COMP00000000077-1 02 1 770.91 535.89 235.02
View 17" inch .26 G773 Monitor COMP00000000078-1 02 1 666.75 463.51 203.24
ATI Xpert XL 4MB pci COMP00000000079-1 02 1 420.00 291.97 128.03
Compaq 4540 AMD K6 233MX 32 COMP00000000080-1 02 1 1,197.00 832.09 364.91
Computer Equipment COMP00000000081-1 02 1 252.00 175.21 76.79
Computer Equipment COMP00000000082-1 02 1 2,046.00 1,422.28 623.72
CallMaster III COMP00000000083-1 02 1 3,890.00 2,704.15 1,185.85
Commpaq DP2000 COMP00000000084-1 02 1 1,573.47 1,093.83 479.64
View 00" .00 X000 Xxxxxxx COMP00000000085-1 02 1 584.85 406.60 178.25
??? COMP00000000086-1 02 1 4,800.00 3,336.74 1,463.26
Internet Access COMP00000000087-1 02 1 750.00 521.37 228.63
PBH-LAN Baystack switch COMP00000000088-1 02 1 3,195.00 2,220.99 974.01
7th Floor Move, Pinnacle COMP00000000089-1 02 1 23,906.25 16,618.56 7,287.69
MS NT Server COMP00000000090-1 02 1 4,306.00 2,993.35 1,312.65
Install/Configure NT Server COMP00000000091-1 02 1 600.00 417.11 182.89
7th Floor Cabling COMP00000000092-1 02 1 5,106.40 3,549.72 1,556.68
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
7406 Plus COMP00000000093-10 02 1 3,800.00 2,641.58 1,158.42
Software Development COMP00000000094-1 02 1 3,057.00 2,125.11 931.89
Software Development COMP00000000095-1 02 1 4,497.50 3,126.48 1,371.02
Software Development COMP00000000096-1 02 1 3,080.00 2,141.09 938.91
7th Floor Move COMP00000000097-1 02 1 4,860.40 3,378.70 1,481.70
Intra-LATA T-1 Local Loop COMP00000000098-1 02 1 767.20 533.33 233.87
Open T & M COMP00000000099-1 02 1 1,041.25 723.84 317.41
Server Equipment/Labor COMP00000000100-1 02 1 6,296.62 4,377.16 1,919.46
PILLAR SOFTWARE COMP00000000101-1 02 1 30,100.00 7,536.74 22,563.26
Call Master III COMP00000000102-1 02 1 3,240.00 2,252.31 987.69
Compaq DeskPro COMP00000000103-1 02 1 1,046.53 727.53 319.00
Compaq DeskPro COMP00000000104-1 02 1 1,046.53 727.53 319.00
Compaq DeskPro COMP00000000105-1 02 1 1,046.53 727.53 319.00
Adapter Converter COMP00000000106-1 02 1 2,616.32 1,744.24 872.08
COMPUTER HARDWARE, SFTWRE, ACCES COMP00000000107-1 02 1 504.54 98.28 406.26
TekBright 500v COMP00000000108-1 02 1 962.73 641.80 320.93
Fast Etherlink XL COMP00000000109-1 02 1 392.00 261.34 130.66
Belkin OmniView COMP00000000110-1 02 1 212.05 141.36 70.69
ABMS Directory on CD-Rom COMP00000000111-1 02 1 1,740.38 1,160.23 580.15
Compaq Computer COMP00000000112-1 02 1 539.50 359.69 179.81
Belkin OmniView COMP00000000113-1 02 1 212.05 141.36 70.69
Belkin OmniView COMP00000000114-1 02 1 212.05 141.36 70.69
Belkin OmniView COMP00000000115-1 02 1 212.05 141.36 70.69
Princeton 15.8 28 MM Ultra 72 COMP00000000116-1 02 1 369.16 246.08 123.08
SeaGate Ultra Wide SCSI 9100MB COMP00000000117-1 02 1 784.16 522.76 261.40
SeaGate Ultra Wide SCSI 9100MB COMP00000000118-1 02 1 784.16 522.76 261.40
Computers COMP00000000119-1 02 1 4,514.55 3,009.67 1,504.88
Princeton 15.8 28 MM Ultra 72 COMP00000000120-1 02 1 369.16 246.08 123.08
Belk Omni COMP00000000121-1 02 1 1,380.75 920.47 460.28
Cardiff Teleform COMP00000000122-1 02 1 4,246.00 2,830.64 1,415.36
Computer Software (Telephone) COMP00000000123-1 02 1 3,090.00 2,059.98 1,030.02
Computer Software (Telephone) COMP00000000124-1 02 1 705.00 469.98 235.02
MS Windows COMP00000000125-1 02 1 3,906.00 2,604.00 1,302.00
Help Desk Tech Software COMP00000000126-1 02 1 2,685.00 1,789.98 895.02
Monitors 17" .28 COMP00000000127-1 02 1 1,409.96 940.00 469.96
DEC DLT Compaq Type IIIXT COMP00000000128-11 02 1 541.87 361.23 180.64
Inteva P233 MMX COMP00000000129-5 02 1 3,071.94 2,047.95 1,023.99
Compaq PII 233 Desktop & Softwar COMP00000000130-5 02 1 7,546.22 5,030.83 2,515.39
Compaq PII 233 Desktop COMP00000000131-5 02 1 7,177.38 4,784.91 2,392.47
Compaq PII 233 Desktop COMP00000000132-3 02 1 4,310.48 2,873.68 1,436.80
Zip Drive COMP00000000133-1 02 1 504.00 336.00 168.00
Medical Software COMP00000000134-1 02 1 2,797.50 1,787.30 1,010.20
Compaq DeskPro COMP00000000135-1 02 1 8,595.96 5,491.89 3,104.07
Proxy Exchange SQL Server COMP00000000136-1 02 1 4,020.45 2,568.63 1,451.82
Sugar Loaf Systems COMP00000000137-1 02 1 3,867.00 2,470.61 1,396.39
Compaq Proliant COMP00000000138-1 02 1 2,306.00 1,473.31 832.69
Phaser 350-Color COMP00000000139-1 02 1 2,778.00 1,774.86 1,003.14
Fast Etherlink COMP00000000140-1 02 1 415.67 265.59 150.08
Cyber Autoboot COMP00000000141-1 02 1 876.80 560.21 316.59
Compaq Proliant COMP00000000142-1 02 1 2,658.00 1,698.14 959.86
Compaq COMP00000000143-1 02 1 1,161.70 742.20 419.50
Ultrawide Pluggable COMP00000000144-1 02 1 1,640.00 1,047.81 592.19
AT&T Memory Board COMP00000000145-1 02 1 2,365.00 1,510.94 854.06
Compaq COMP00000000146-1 02 1 4,442.98 2,838.60 1,604.38
Fast Etherlink COMP00000000147-1 02 1 803.37 513.29 290.08
Inteva COMP00000000148-1 02 1 1,163.84 743.57 420.27
CMNecc Monitor COMP00000000149-1 02 1 812.24 518.92 293.32
Dynamics Btrieve Upgrade COMP00000000150-1 02 1 1,064.75 680.28 384.47
CMPQ Qicos COMP00000000151-1 02 1 7,807.25 4,771.11 3,036.14
Lotus Software COMP00000000152-1 02 1 618.00 377.69 240.31
17" Nec Monitor COMP00000000153-1 02 1 750.00 458.31 291.69
Faxphone/Symantic COMP00000000154-1 02 1 892.00 545.13 346.87
CMPQ DP EN COMP00000000155-1 02 1 7,450.00 4,552.75 2,897.25
Compaq DPro 6000 PII 233 COMP00000000156-1 02 1 1,399.00 854.94 544.06
Compaq DPro 6000 PII 233 COMP00000000157-1 02 1 1,422.41 869.24 553.17
TDPS Support COMP00000000158-1 02 1 510.00 311.69 198.31
Upgrade Visual Studios v6.0 COMP00000000159-1 02 1 929.99 568.31 361.68
9.1GB SCSI Ultrawide Compaq 1000 COMP00000000160-1 02 1 2,327.03 1,422.08 904.95
Comp USA COMP00000000161-1 02 1 2,991.70 1,828.24 1,163.46
Comp USA COMP00000000162-1 02 1 1,173.50 717.16 456.34
Viking 128MB COMP00000000163-1 02 1 1,168.00 681.30 486.70
Compaq COMP00000000164-1 02 1 7,320.30 4,270.16 3,050.14
Ultrawide COMP00000000165-1 02 1 3,971.50 2,316.71 1,654.79
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
Viking COMP00000000166-1 02 1 505.00 294.60 210.40
Netware COMP00000000167-1 02 1 3,936.64 2,296.37 1,640.27
Sybase Two user COMP00000000168-1 02 1 1,210.00 705.83 504.17
Server 6.0 Upgrade COMP00000000169-1 02 1 5,594.00 3,263.17 2,330.83
Ultra SCSI COMP00000000170-1 02 1 556.00 324.30 231.70
Super Monaural COMP00000000171-1 02 1 1,055.00 615.45 439.55
Proc. 1 Memory Pny. COMP00000000172-1 02 1 3,625.00 2,114.55 1,510.45
CMPQ DP2000 COMP00000000173-1 02 1 5,827.50 3,399.41 2,428.09
Unlimited BMP Disk COMP00000000174-1 02 1 6,198.00 3,615.52 2,582.48
Novell 3.2 Netware COMP00000000175-1 02 1 2,834.00 1,653.15 1,180.85
Compaq COMP00000000176-1 02 1 3,331.16 1,850.63 1,480.53
Viking 128MB ECC Module COMP00000000177-1 02 1 1,926.00 1,070.00 856.00
Software & Hardware COMP00000000178-1 02 1 1,248.75 728.46 520.29
Computer Omni COMP00000000179-1 02 1 1,463.27 1,219.42 243.85
Crystal 6.0 COMP00000000180-1 02 1 2,434.00 1,352.21 1,081.79
Computer JetDirect COMP00000000181-1 02 1 1,126.78 625.99 500.79
ArcSurve COMP00000000182-1 02 1 1,285.99 714.43 571.56
HP Advanced Switching COMP00000000183-1 02 1 7,568.06 4,204.45 3,363.61
SeaGate Hornet COMP00000000184-1 02 1 559.98 311.14 248.84
Compaq DeskPro COMP00000000185-1 02 1 5,720.00 3,177.79 2,542.21
Compaq DeskPro COMP00000000186-1 02 1 1,410.66 783.74 626.92
Compaq 2266 MII300 64/4.0 COMP00000000187-1 02 1 3,837.21 2,131.79 1,705.42
Compaq Armada 3500 PII 300 COMP00000000188-1 02 1 3,759.47 2,088.60 1,670.87
Backup Agent 2.0 for MS CD COMP00000000189-1 02 1 541.99 301.14 240.85
HP Advancestack Switching Hub COMP00000000190-1 02 1 793.86 441.02 352.84
HP Mailbox 5bin w/ Stapler COMP00000000191-1 02 1 1,551.95 819.09 732.86
HPC LJet 8000 DN COMP00000000192-1 02 1 4,660.50 2,459.72 2,200.78
Compaq 1650 PII 266 64/4G 56K COMP00000000193-1 02 1 3,583.50 1,891.28 1,692.22
Fast Etherlink COMP00000000194-1 02 1 1,550.00 861.14 688.86
Princeton Ultra-72 17" COMP00000000195-5 02 1 1,479.75 780.95 698.80
Windows NT 4.0 Server COMP00000000196-1 02 1 3,525.00 1,958.36 1,566.64
NEC 120LT MGX 200 32/2.1 8 COMP00000000197-1 02 1 1,020.70 538.68 482.02
Compaq VIK 16MB DP 5133/5166 COMP00000000198-1 02 1 1,182.17 623.94 558.23
HP JetDirect 300X EtherNet 10/10 COMP00000000199-1 02 1 699.24 369.02 330.22
HP OfficeJet 300 Printer/Fax COMP00000000200-1 02 1 876.00 462.31 413.69
USR 56K STD Voice Modem COMP00000000201-6 02 1 816.78 431.09 385.69
Map Info./Map Marker v3.7 COMP00000000202-1 02 1 3,306.00 1,652.98 1,653.02
Arev. 2.12 Server License COMP00000000203-1 02 1 1,925.00 962.48 962.52
Compaq 5190 & Access COMP00000000204-1 02 1 2,407.65 1,203.83 1,203.82
3182-PLS 7406 Plus COMP00000000205-1 02 1 3,390.00 1,695.02 1,694.98
SeaGate Crystal Info. 7 COMP00000000206-1 02 1 3,415.00 1,707.49 1,707.51
Compaq 5660 PII 450 COMP00000000207-1 02 1 5,297.25 2,648.65 2,648.60
Compaqm Presario 2286 COMP00000000208-5 02 1 3,020.00 1,510.01 1,509.99
Viking 64MB SDRAM COMP00000000209-1 02 1 548.00 273.98 274.02
Viking 64MB Modules + Memory COMP00000000210-1 02 1 2,417.42 1,074.41 1,343.01
Compaq Pentium II Laptops COMP00000000211-2 02 1 3,300.00 1,375.02 1,924.98
MetaFrame and 10 User Bump Pack COMP00000000212-1 02 1 6,418.06 2,674.20 3,743.86
Computer COMP00000000213-1 02 1 2,001.72 2,001.72 0.00
Y2K Software COMP00000000214-1 02 1 514.00 185.63 328.37
Computers for Georgia COMP00000000215-1 02 1 31,830.36 11,494.32 20,336.04
HP 4000N Printer COMP00000000216-2 02 1 4,108.80 1,483.71 2,625.09
Great Plains Upgrade (from 12-16 COMP00000000217-1 02 1 4,014.94 1,449.87 2,565.07
PRN Ultra 72 17" Monitors COMP00000000218-4 02 1 894.91 298.31 596.60
RocketModed 6-port COMP00000000219-2 02 1 1,680.00 560.02 1,119.98
Compaq DeskPro PII 450 COMP00000000220-1 02 1 1,568.00 522.70 1,045.30
Computer and Right Fax Equipment COMP00000000221-1 02 1 25,449.85 8,483.28 16,966.57
SPSS Software and License COMP00000000222-1 02 1 1,826.00 608.65 1,217.35
Computer and Software COMP00000000223-1 02 1 17,571.68 5,857.21 11,714.47
PNY 128MB Compaq Proliant 2500 COMP00000000224-1 02 1 617.99 206.02 411.97
PC Equipment COMP00000000225-1 02 1 1,432.20 477.38 954.82
Misc. Comp. Parts- Upgrade COMP00000000226-1 02 1 739.69 246.58 493.11
Superstack II Dual Speed Hub COMP00000000227-5 02 1 3,080.78 941.37 2,139.41
Armada 1700 P2-300 32M8 COMP00000000228-1 02 1 2,872.95 877.82 1,995.13
MetaFrame Server, Support Pack O COMP00000000229-1 02 1 22,182.69 6,778.07 15,404.62
Simple 32MB Module-Compaq Armada COMP00000000230-1 02 1 792.00 242.00 550.00
Compaq Armada, OmniPage Scanner COMP00000000231-1 02 1 3,852.00 1,177.00 2,675.00
Paradigm Server Upgrade COMP00000000232-1 02 1 68,970.25 21,074.24 47,896.01
Compaq Computers & Accessories COMP00000000233-1 02 1 14,261.47 4,357.66 9,903.81
Compaq Armada COMP00000000234-1 02 1 2,215.56 676.95 1,538.61
Sony Z5055X PII 366 COMP00000000235-1 02 1 3,138.45 958.98 2,179.47
Compaq Computers & Accessories COMP00000000236-1 02 1 15,410.67 4,280.71 11,129.96
PC Equipment COMP00000000237-1 02 1 1,614.90 448.60 1,166.30
Computer-PRN Ultra 72 COMP00000000238-1 02 1 1,342.36 410.18 932.18
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
Right Fax/Upgrade/Software Suppo COMP00000000239-1 02 1 17,023.05 4,728.61 12,294.44
Taxes on Software License COMP00000000240-1 02 1 1,505.00 501.70 1,003.30
Laptop Computer COMP00000000241-1 02 1 2,603.99 650.98 1,953.01
PC Equipment COMP00000000242-1 02 1 1,614.90 403.74 1,211.16
DeskPro Computer/Acc. & Monitors COMP00000000243-7 02 1 7,393.51 1,848.41 5,545.10
PC Equipment & Accessories COMP00000000244-10 02 1 11,703.99 2,875.79 8,828.20
Compaq Computers 7 Accessories COMP00000000245-15 02 1 23,468.21 5,867.02 17,601.19
Windows NT Servers/MS SQL Server COMP00000000246-1 02 1 3,006.51 751.60 2,254.91
18.2GB Pluggable 10K Drive COMP00000000247-1 02 1 6,148.90 1,537.21 4,611.69
Compaq 20/40GB Int. Drive & Acc. COMP00000000248-1 02 1 4,642.55 1,160.64 3,481.91
Computer Equipment COMP00000000249-1 02 1 14,822.52 3,705.65 11,116.87
Memory kit/HD SCSI/Controller COMP00000000250-1 02 1 6,534.42 1,633.59 4,900.83
SQL Server/Internet Connection COMP00000000251-1 02 1 5,842.39 1,460.61 4,381.78
PC Equipment COMP00000000252-1 02 1 1,614.90 404.24 1,210.66
Computer Equipment-Y2K Servers COMP00000000253-1 02 1 33,276.75 8,319.16 24,957.59
SDRAM Memory Kit COMP00000000254-1 02 1 782.32 173.84 608.48
Windows NT Server 7.0 COMP00000000255-1 02 1 1,340.48 297.92 1,042.56
MS SQL Server 7.0 COMP00000000256-1 02 1 1,662.94 369.52 1,293.42
Software License-ASAP Software COMP00000000257-1 02 1 1,194.40 265.44 928.96
Y2K Upgrade COMP00000000258-1 02 1 918.00 204.00 714.00
DeskPro EN P2-350 COMP00000000259-9 02 1 8,099.91 1,800.00 6,299.91
Novell Server PLus COMP00000000260-1 02 1 878.18 195.12 683.06
Novell Server 25 User License COMP00000000261-1 02 1 2,011.07 446.88 1,564.19
256MB SDRAM DIMM Memory Kit COMP00000000262-4 02 1 3,659.92 813.28 2,846.64
Smart Array 3200 Controller COMP00000000263-1 02 1 3,702.68 822.80 2,879.88
Proliant 1600 P2-450 Tower COMP00000000264-1 02 1 3,999.64 888.80 3,110.84
ArcServeit WorkGroup/Backup COMP00000000265-1 02 1 1,099.98 244.48 855.50
DeskPro EN P2-333 Computer COMP00000000266-1 02 1 599.96 133.36 466.60
KDS VS 9e 17/16inch Monitors COMP00000000267-10 02 1 2,337.60 519.44 1,818.16
18.2GB Pluggable Wide Drive COMP00000000268-1 02 1 3,322.75 738.40 2,584.35
Armada M300 P2-333MHZ 64MB Compu COMP00000000269-1 02 1 2,329.19 517.60 1,811.59
Armada 1700 P2-300 Computer COMP00000000270-2 02 1 3,848.08 855.12 2,992.96
DeskPro EN P2-350 Computer COMP00000000271-10 02 1 8,999.90 2,000.00 6,999.90
18.2GB Pluggable Wide SCSI COMP00000000272-4 02 1 3,319.31 737.60 2,581.71
Armada 1700 P2-300 Computer COMP00000000273-2 02 1 3,848.08 855.12 2,992.96
DeskPro P3-500 COMP00000000274-4 02 1 6,671.20 1,482.48 5,188.72
17" Monitors COMP00000000275-7 02 1 1,769.60 393.28 1,376.32
Proliant 1600/128MB Memory COMP00000000276-1 02 1 3,150.80 700.16 2,450.64
9.1GB Pluggable Wide Ultra-2 COMP00000000277-5 02 1 3,092.00 687.12 2,404.88
Internal DLT Drive 20/40GB COMP00000000278-1 02 1 1,935.15 430.00 1,505.15
ArcServeit WorkGroup Backup Agen COMP00000000279-1 02 1 1,099.98 244.48 855.50
17" Monitors COMP00000000280-5 02 1 1,168.10 227.57 940.53
???? COMP00000000281-1 02 1 1,578.00 525.98 1,052.02
??? COMP00000000282-1 02 1 945.30 945.30 0.00
COMPUTER EQUIP COMP00000000283-1 02 1 110,514.64 18,425.22 92,089.42
CON SNT COMP00000000284-1 02 1 3,650.16 608.58 3,041.58
STRAND FIBERS COMP00000000285-1 02 1 8,200.00 1,367.10 6,832.90
COM DLT COMP00000000286-1 02 1 5,080.69 847.08 4,233.61
COMPUTER, FIREWALL COMP00000000287-1 02 1 4,516.91 753.06 3,763.85
COMPUTER COMP00000000288-1 02 1 20,877.73 3,480.78 17,396.95
COMPUTER COMP00000000289-1 02 1 2,110.72 351.90 1,758.82
COMPUTER COMP00000000290-1 02 1 25,051.84 4,176.72 20,875.12
COMPUTER COMP00000000291-1 02 1 3,244.83 540.96 2,703.87
COMPUTER COMP00000000292-1 02 1 2,477.03 412.98 2,064.05
Computers & Monitors COMP00000000293-1 02 1 13,112.19 2,186.10 10,926.09
Computers & Monitors COMP00000000294-1 02 1 2,540.88 423.60 2,117.28
Computers COMP00000000295-1 02 1 4,658.00 776.58 3,881.42
COMPUTER COMP00000000296-1 02 1 8,280.01 1,380.48 6,899.53
COMPUTER COMP00000000297-1 02 1 2,454.23 409.20 2,045.03
COMPUTER COMP00000000298-1 02 1 1,198.23 199.80 998.43
COMPUTER COMP00000000299-1 02 1 1,194.23 199.08 995.15
COMPUTER COMP00000000300-1 02 1 1,612.22 268.80 1,343.42
COMPUTER COMP00000000301-1 02 1 2,299.40 383.34 1,916.06
Computer COMP00000000302-1 02 1 284.95 284.95 0.00
BRAVO MS P/100 COMP00000000303-1 02 1 2,004.66 1,893.26 111.40
AST 64MB JEDEC COMP00000000304-1 02 1 1,964.12 1,855.01 109.11
AST 64MB JEDEC COMP00000000305-1 02 1 1,964.13 1,855.02 109.11
BRAVO MS P/100 COMP00000000306-1 02 1 2,004.66 1,893.26 111.40
BRAVO MS P/100 COMP00000000307-1 02 1 2,004.66 1,893.26 111.40
BRAVO MS P/100 COMP00000000308-1 02 1 2,004.66 1,893.26 111.40
BRAVO MS P/90 COMP00000000309-1 02 1 1,934.27 1,826.81 107.46
BRAVO MS P/100 COMP00000000310-1 02 1 2,004.66 1,893.26 111.40
BRAVO MS P/100 COMP00000000311-1 02 1 2,004.66 1,893.26 111.40
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
BRAVO MS P/100 COMP00000000312-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000313-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000314-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/90 COMP00000000315-1 02 1 1,934.28 1,826.82 107.46
340 MB W/ HARD DRIVE COMP00000000316-1 02 1 1,926.69 1,819.66 107.03
BRAVO MS P/90 COMP00000000317-1 02 1 1,934.27 1,832.48 101.79
BRAVO MS P/100 COMP00000000318-1 02 1 2,004.67 1,893.33 111.34
5 USER CD-ROM COMP00000000319-1 02 1 1,702.50 1,607.91 94.59
PENTIUM 166 COMP00000000320-1 02 1 1,699.10 1,604.73 94.37
PENTIUM 166 COMP00000000321-1 02 1 1,699.10 1,604.73 94.37
PENTIUM 166 COMP00000000322-1 02 1 1,699.10 1,604.73 94.37
5 USER CD-ROM COMP00000000323-1 02 1 1,702.50 1,611.02 91.48
SQL UPGRADE 4.1 COMP00000000324-1 02 1 1,813.52 1,712.80 100.72
TELEFORM MULTIU COMP00000000325-1 02 1 1,752.81 1,655.44 97.37
340MB W/ HARD DRIVE COMP00000000326-1 02 1 1,926.69 1,819.66 107.03
CORPORATE UPGRADE COMP00000000327-1 02 1 1,839.70 1,737.48 102.22
AST ASCENTIA LA COMP00000000328-1 02 1 1,852.00 1,749.08 102.92
AST XXXXX XX 5/ COMP00000000329-1 02 1 1,884.59 1,779.89 104.70
BRAVO MS P/100 COMP00000000330-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000331-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000332-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/90 COMP00000000333-1 02 1 2,163.93 2,043.72 120.21
LAPTOP COMP00000000334-1 02 1 2,041.69 1,928.24 113.45
12 PORT HUB COMP00000000335-1 02 1 2,069.35 1,954.37 114.98
486/66 COMP00000000336-1 02 1 2,105.92 1,988.94 116.98
HP LASER JET 4 COMP00000000337-1 02 1 2,163.14 2,042.99 120.15
BRAVO MS P/90 COMP00000000338-1 02 1 2,163.93 2,043.72 120.21
BRAVO MS P/90 COMP00000000339-1 02 1 2,163.93 2,043.72 120.21
BRAVO MS P/90 COMP00000000340-1 02 1 2,025.17 1,912.63 112.54
BRAVO MS P/90 COMP00000000341-1 02 1 2,163.93 2,043.72 120.21
BRAVO MS P/90 COMP00000000342-1 02 1 2,163.93 2,043.72 120.21
BRAVO MS P/90 COMP00000000343-1 02 1 2,163.93 2,043.72 120.21
BRAVO MS P/90 COMP00000000344-1 02 1 2,163.93 2,043.72 120.21
LAPTOP COMP00000000345-1 02 1 2,041.67 1,928.22 113.45
SURESTORE 6000E COMP00000000346-1 02 1 2,016.47 1,904.42 112.05
KVM SERVER SWITCH COMP00000000347-1 02 1 2,020.34 1,908.10 112.24
PENTIUM 166 COMP00000000348-1 02 1 1,699.10 1,604.73 94.37
BRAVO MS P/100 COMP00000000349-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000350-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000351-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000352-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000353-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000354-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000355-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000356-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000357-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000358-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000359-1 02 1 2,004.67 1,893.33 111.34
BRAVO MS P/100 COMP00000000360-1 02 1 2,004.67 1,893.33 111.34
PENTIUM 166 COMP00000000361-1 02 1 1,699.10 1,604.73 94.37
PENTIUM 166 COMP00000000362-1 02 1 1,699.10 1,604.73 94.37
PENTIUM 166 COMP00000000363-1 02 1 1,699.10 1,604.73 94.37
LOTUS SOFTWARE COMP00000000364-1 02 1 1,473.92 1,392.02 81.90
PENTIUM 166 COMP00000000365-1 02 1 1,465.54 1,384.13 81.41
PENTIUM 166 COMP00000000366-1 02 1 1,465.54 1,384.13 81.41
PENTIUM 166 COMP00000000367-1 02 1 1,465.54 1,384.13 81.41
SQL UPGRADE 4.1 COMP00000000368-1 02 1 1,468.88 1,387.26 81.62
LOTUS SOFTWARE COMP00000000369-1 02 1 1,473.92 1,392.02 81.90
LOTUS SOFTWARE COMP00000000370-1 02 1 1,473.92 1,392.02 81.90
PENTIUM 166 COMP00000000371-1 02 1 1,465.53 1,384.12 81.41
LOTUS SOFTWARE COMP00000000372-1 02 1 1,473.92 1,392.02 81.90
LOTUS SOFTWARE COMP00000000373-1 02 1 1,473.92 1,392.02 81.90
LOTUS SOFTWARE COMP00000000374-1 02 1 1,473.92 1,392.02 81.90
LOTUS SOFTWARE COMP00000000375-1 02 1 1,473.92 1,392.02 81.90
PENTIUM 166 COMP00000000376-1 02 1 1,465.54 1,384.13 81.41
PENTIUM 166 COMP00000000377-1 02 1 1,465.53 1,384.12 81.41
PENTIUM 166 COMP00000000378-1 02 1 1,465.53 1,384.12 81.41
LOTUS SOFTWARE COMP00000000379-1 02 1 1,473.92 1,392.02 81.90
AST BRAVO MS-L COMP00000000380-1 02 1 1,396.98 1,319.34 77.64
MULTIPORT HUB COMP00000000381-1 02 1 1,411.68 1,333.23 78.45
LASERJET COMP00000000382-1 02 1 1,457.09 1,376.11 80.98
PENTIUM 166 COMP00000000383-1 02 1 1,465.53 1,384.12 81.41
MAPINFO UPGRADE COMP00000000384-1 02 1 1,459.99 1,378.91 81.08
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
LASERJET COMP00000000385-1 02 1 1,461.39 1,380.17 81.22
SOFTWARE COMP00000000386-1 02 1 1,464.74 1,383.39 81.35
LOTUS SOFTWARE COMP00000000387-1 02 1 1,473.92 1,392.02 81.90
HP SURESTORE 20 COMP00000000388-1 02 1 1,484.92 1,402.44 82.48
BRAVO MS P/90 COMP00000000389-1 02 1 2,163.93 2,043.72 120.21
PENTIUM 166 COMP00000000390-1 02 1 1,699.09 1,604.72 94.37
PENTIUM 166 COMP00000000391-1 02 1 1,699.09 1,604.72 94.37
PENTIUM 166 COMP00000000392-1 02 1 1,699.09 1,604.72 94.37
PENTIUM 166 COMP00000000393-1 02 1 1,699.09 1,604.72 94.37
PENTIUM 166 COMP00000000394-1 02 1 1,699.09 1,604.72 94.37
PENTIUM 166 COMP00000000395-1 02 1 1,699.09 1,604.72 94.37
PENTIUM 166 COMP00000000396-1 02 1 1,699.09 1,604.72 94.37
486/66 COMP00000000397-1 02 1 1,641.67 1,550.45 91.22
PENTIUM 166 COMP00000000398-1 02 1 1,699.09 1,604.72 94.37
PENTIUM 166 COMP00000000399-1 02 1 1,699.10 1,604.73 94.37
PENTIUM 166 COMP00000000400-1 02 1 1,699.10 1,604.73 94.37
PENTIUM 166 COMP00000000401-1 02 1 1,699.10 1,604.73 94.37
MINIWRITER COMP00000000402-1 02 1 1,666.81 1,574.21 92.60
BRAVO MS-L 4/66 COMP00000000403-1 02 1 1,641.03 1,549.83 91.20
486/66 COMP00000000404-1 02 1 1,641.67 1,550.45 91.22
LASER JET 4 PLUS COMP00000000405-1 02 1 1,490.37 1,407.58 82.79
SQL SOFTWARE COMP00000000406-1 02 1 1,511.08 1,427.10 83.98
COMPAQ HARDWARE COMP00000000407-1 02 1 1,501.48 1,418.08 83.40
COMPAQ HARDWARE COMP00000000408-1 02 1 1,501.48 1,418.08 83.40
COMPAQ HARDWARE COMP00000000409-1 02 1 1,501.48 1,418.08 83.40
BRAVO LP DESKTOP COMP00000000410-1 02 1 1,510.30 1,426.38 83.92
COMPAQ 4.3 GB H COMP00000000411-1 02 1 1,546.11 1,460.23 85.88
AST BRAVO MS COMP00000000412-1 02 1 1,532.02 1,446.94 85.08
BRAVO MS DESKTOP COMP00000000413-1 02 1 1,637.40 1,546.41 90.99
COMPAQ 4.3 GB H COMP00000000414-1 02 1 1,546.11 1,460.23 85.88
BRAVO MS DESKTOP COMP00000000415-1 02 1 1,637.39 1,546.40 90.99
BRAVO MS DESKTOP COMP00000000416-1 02 1 1,637.39 1,546.40 90.99
BRAVO MS DESKTOP COMP00000000417-1 02 1 1,637.39 1,546.40 90.99
BRAVO MS P/90 COMP00000000418-1 02 1 2,163.93 2,043.72 120.21
BRAVO MS P/90 COMP00000000419-1 02 1 2,185.21 2,063.81 121.40
BRAVO MS P/90 COMP00000000420-1 02 1 2,163.93 2,043.72 120.21
POWERPLAY COMP00000000421-1 02 1 5,907.00 5,578.81 328.19
PC UPGRADES COMP00000000422-1 02 1 6,303.32 5,953.12 350.20
PC UPGRADES COMP00000000423-1 02 1 6,311.68 5,961.00 350.68
POWERPLAY COMP00000000424-1 02 1 5,071.49 4,789.71 281.78
32 PORT HUB COMP00000000425-1 02 1 6,700.45 6,328.18 372.27
OTR SOFTWARE COMP00000000426-1 02 1 6,724.00 6,350.46 373.54
ACD/BCM SOFTWARE COMP00000000427-1 02 1 6,799.59 3,855.09 2,944.50
POWERPLAY COMP00000000428-1 02 1 5,165.41 4,878.42 286.99
MAP X SOFTWARE COMP00000000429-1 02 1 4,995.00 4,717.50 277.50
PENTIUM PRO 200 COMP00000000430-1 02 1 5,038.20 4,758.30 279.90
160 MB IDE DRIVE COMP00000000431-1 02 1 7,139.12 6,742.51 396.61
COMPAQ LAPTOP COMP00000000432-1 02 1 4,437.45 4,190.91 246.54
LASER JET 5SI COMP00000000433-1 02 1 4,381.56 4,138.14 243.42
HP 5SI COMP00000000434-1 02 1 4,413.94 4,168.73 245.21
COMPAQ LAPTOP COMP00000000435-1 02 1 4,437.45 4,190.91 246.54
COMPAQ LAPTOP COMP00000000436-1 02 1 4,437.45 4,190.91 246.54
32 PORT HUB COMP00000000437-1 02 1 4,459.00 4,211.27 247.73
SHOW & TELL COMP00000000438-1 02 1 4,445.48 4,198.54 246.94
TAPE DRIVE COMP00000000439-1 02 1 4,831.86 4,563.44 268.42
DOCUPACT V 2.5 COMP00000000440-1 02 1 4,743.50 4,479.95 263.55
ASCENTIA 900N COMP00000000441-1 02 1 4,759.41 4,495.03 264.38
SOFTWARE UPGRADE COMP00000000442-1 02 1 4,791.41 4,525.19 266.22
MAP X SOFTWARE COMP00000000443-1 02 1 4,828.50 4,560.22 268.28
160 MB IDE DRIVE COMP00000000444-1 02 1 7,139.11 6,742.50 396.61
POWERPLAY LICENSE COMP00000000445-1 02 1 7,183.99 6,784.91 399.08
POWERPLAY COMP00000000446-1 02 1 4,270.93 4,033.68 237.25
WINDOWS SOFTWARE COMP00000000447-1 02 1 39,166.68 36,990.73 2,175.95
WINDOWS DEVELOP COMP00000000448-1 02 1 40,000.01 37,777.78 2,222.23
WINDOWS MIGRATION COMP00000000449-1 02 1 46,000.00 43,444.46 2,555.54
WINDOWS SOFTWARE COMP00000000450-1 02 1 74,999.99 70,833.30 4,166.69
NETWARE SERVER COMP00000000451-1 02 1 108,201.88 102,190.68 6,011.20
HARDWARE UPGRADE COMP00000000452-1 02 1 113,069.12 106,787.51 6,281.61
PBHC SYSTEM SET COMP00000000453-1 02 1 333,333.32 314,814.81 18,518.51
SERVER FOR DALL COMP00000000454-1 02 1 18,753.77 17,711.91 1,041.86
COMPAQ SERVER COMP00000000455-1 02 1 19,179.96 18,114.43 1,065.53
COMPAQ PROLIANT COMP00000000456-1 02 1 9,028.70 8,527.13 501.57
NETWARE 3.12 COMP00000000457-1 02 1 7,652.45 7,227.33 425.12
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
HARDWARE UPGRADE COMP00000000458-1 02 1 7,919.45 7,479.45 440.00
RIGHT FAX CARD COMP00000000459-1 02 1 7,947.50 7,505.95 441.55
DOCUPACT V2.5 COMP00000000460-1 02
1 8,458.80 7,988.89 469.91
MAP INFO DATA SE COMP00000000461-1 02 1 10,099.42 9,538.35 561.07
DOCUPACT COMP00000000462-1 02 1 9,666.00 9,129.00 537.00
CUBIX HARDWARE COMP00000000463-1 02 1 15,569.38 14,704.40 864.98
CLAIMS ONLINE COMP00000000464-1 02 1 10,168.92 9,603.98 564.94
PC UPGRADES COMP00000000465-1 02 1 10,298.16 9,726.04 572.12
COMPAQ LITE XXX COMP00000000466-1 02 1 10,495.49 9,912.40 583.09
POWERPLAY COMP00000000467-1 02 1 4,270.93 4,033.68 237.25
CRYSTAL INFO SO COMP00000000468-1 02 1 4,074.83 3,848.45 226.38
AST BRAVO MS-L COMP00000000469-1 02 1 1,396.94 1,319.31 77.63
36 PORT HUB COMP00000000470-1 02 1 2,671.94 2,523.50 148.44
LCD PANEL BOOK COMP00000000471-1 02 1 2,499.62 2,360.73 138.89
NETWORK MGMT MO COMP00000000472-1 02 1 2,517.50 2,377.64 139.86
NETWARE 386 COMP00000000473-1 02 1 2,570.00 2,427.23 142.77
DALLAS HUB COMP00000000474-1 02 1 2,673.18 2,524.64 148.54
EXEC PC COMP00000000475-1 02 1 2,672.76 2,524.25 148.51
POWERPLAY COMP00000000476-1 02 1 2,435.34 2,300.06 135.28
SOFTWARE COMP00000000477-1 02 1 2,687.63 2,538.34 149.29
SQL SERVER COMP00000000478-1 02 1 2,749.95 2,597.19 152.76
COMPAQ 4.3 GB H COMP00000000479-1 02 1 2,780.71 2,626.16 154.55
MAPMAKER 2.1 COMP00000000480-1 02 1 2,458.50 2,321.91 136.59
BRAVO MS P/90 COMP00000000481-1 02 1 2,387.15 2,254.53 132.62
MS SQL SERVER S COMP00000000482-1 02 1 2,435.15 2,299.84 135.31
BRAVO MS P/90 COMP00000000483-1 02 1 2,226.29 2,102.60 123.69
BRAVO MS P/90 COMP00000000484-1 02 1 2,185.21 2,063.81 121.40
DATABASE COMP00000000485-1 02 1 2,216.68 2,093.50 123.18
BRAVO MS P/90 COMP00000000486-1 02 1 2,226.29 2,102.60 123.69
BRAVO MS P/90 COMP00000000487-1 02 1 2,226.29 2,102.60 123.69
BRAVO MS P/90 COMP00000000488-1 02 1 2,226.29 2,102.60 123.69
BRAVO MS P/90 COMP00000000489-1 02 1 2,226.29 2,102.60 123.69
BRAVO MS P/90 COMP00000000490-1 02 1 2,387.15 2,254.53 132.62
BRAVO MS P/90 COMP00000000491-1 02 1 2,284.27 2,157.35 126.92
BRAVO MS P/90 COMP00000000492-1 02 1 2,284.27 2,157.35 126.92
HP LASERJET 4 COMP00000000493-1 02 1 2,323.25 2,194.15 129.10
COMPAQ 4.3 GB H COMP00000000494-1 02 1 2,780.18 2,625.75 154.43
BAY NETWORKS COMP00000000495-1 02 1 2,892.60 2,731.90 160.70
TF FILLER WORKS COMP00000000496-1 02 1 4,070.50 3,844.37 226.13
AREV SOFTWARE COMP00000000497-1 02 1 3,690.41 3,485.38 205.03
SOFTWARE COMP00000000498-1 02 1 3,492.18 3,298.14 194.04
POWERPLAY LICENSE COMP00000000499-1 02 1 3,640.00 3,437.77 202.23
AUTHLINK/MEMLIN COMP00000000500-1 02 1 3,805.42 3,594.04 211.38
LASERJET 5SI COMP00000000501-1 02 1 3,709.63 3,503.57 206.06
NOVELL LICENSE COMP00000000502-1 02 1 3,265.92 3,084.48 181.44
VOICE AUTOMATION COMP00000000503-1 02 1 3,855.59 3,641.39 214.20
COMPAQ LTE 5150 COMP00000000504-1 02 1 3,877.50 3,662.10 215.40
COMPAQ LTE 5150 COMP00000000505-1 02 1 3,877.50 3,662.10 215.40
9 TRACK TAPE COMP00000000506-1 02 1 3,892.62 3,676.38 216.24
HP LASERJET 5SI COMP00000000507-1 02 1 3,288.60 3,105.90 182.70
BRAVO MS P/90 W COMP00000000508-1 02 1 2,984.84 2,819.00 165.84
ISDN ROUTER COMP00000000509-1 02 1 3,110.35 2,937.56 172.79
GATEWAY P5/133 COMP00000000510-1 02 1 2,995.00 2,828.58 166.42
16 MB MODULE COMP00000000511-1 02 1 3,099.78 2,927.54 172.24
16 MB MODULE COMP00000000512-1 02 1 3,099.79 2,927.61 172.18
POWERBUILDER COMP00000000513-1 02 1 3,118.49 2,945.21 173.28
ISDN ROUTER COMP00000000514-1 02 1 3,110.35 2,937.56 172.79
XXXXX SOFTWARE COMP00000000515-1 02 1 3,186.43 3,009.39 177.04
POWERBUILDER COMP00000000516-1 02 1 3,118.50 2,945.22 173.28
POWERBUILDER COMP00000000517-1 02 1 3,118.50 2,945.22 173.28
POWERBUILDER COMP00000000518-1 02 1 3,118.50 2,945.22 173.28
NETWARE NFS VI COMP00000000519-1 02 1 3,124.76 2,951.17 173.59
AST BRAVO MS-L COMP00000000520-1 02 1 1,396.94 1,319.31 77.63
LOTUS SOFTWARE COMP00000000521-1 02 1 1,473.92 1,392.02 81.90
AST BRAVO MS COMP00000000522-1 02 1 1,396.84 1,319.23 77.61
?? COMP00000000523-1 02 1 1,392.33 1,315.01 77.32
PENTIUM 133 COMP00000000524-1 02 1 920.42 869.31 51.11
PENTIUM 133 COMP00000000525-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000526-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000527-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000528-1 02 1 920.42 869.31 51.11
PENTIUM 133 COMP00000000529-1 02 1 920.42 869.31 51.11
PENTIUM 133 COMP00000000530-1 02 1 905.43 855.12 50.31
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
PENTIUM 133 COMP00000000531-1 02 1 920.42 869.31 51.11
PENTIUM 133 COMP00000000532-1 02 1 920.42 869.31 51.11
PENTIUM 133 COMP00000000533-1 02 1 920.42 869.31 51.11
PENTIUM 133 COMP00000000534-1 02 1 920.42 869.31 51.11
PENTIUM 133 COMP00000000535-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000536-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000537-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000538-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000539-1 02 1 905.43 855.12 50.31.
486/33 COMP00000000540-1 02 1 902.69 852.51 50.18
PENTIUM 133 COMP00000000541-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000542-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000543-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000544-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000545-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000546-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000547-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000548-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000549-1 02 1 905.43 855.12 50.31
PENTIUM 133 COMP00000000550-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000551-1 02 1 922.51 871.29 51.22
BRAVO LP W/340 COMP00000000552-1 02 1 1,382.47 1,305.65 76.82
486/33 COMP00000000553-1 02 1 902.69 852.51 50.18
PENTIUM PRO SYSTEM COMP00000000554-1 02 1 939.46 887.30 52.16
486/33 COMP00000000555-1 02 1 927.09 875.57 51.52
PENTIUM PRO SYSTEM COMP00000000556-1 02 1 939.46 887.30 52.16
PENTIUM PRO SYSTEM COMP00000000557-1 02 1 939.46 887.30 52.16
PENTIUM PRO SYSTEM COMP00000000558-1 02 1 939.46 887.30 52.16
DEC VENT P/133 COMP00000000559-1 02 1 945.00 892.50 52.50
DEC VENT P/133 COMP00000000560-1 02 1 945.00 892.50 52.50
DEC VENT P/133 COMP00000000561-1 02 1 945.00 892.50 52.50
PENTIUM 133 COMP00000000562-1 02 1 922.51 871.29 51.22
EIS REPORTING S COMP00000000563-1 02 1 923.84 742.02 181.82
PENTIUM 133 COMP00000000564-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000565-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000566-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000567-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000568-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000569-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000570-1 02 1 922.51 871.29 51.22
PENTIUM 133 PBHC COMP00000000571-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000572-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000573-1 02 1 922.51 871.29 51.22
PENTIUM 133 COMP00000000574-1 02 1 922.51 871.29 51.22
486/33 COMP00000000575-1 02 1 902.69 852.51 50.18
PENTIUM 133 COMP00000000576-1 02 1 902.06 851.97 50.09
PENTIUM 133 COMP00000000577-1 02 1 902.06 724.50 177.56
486/33 COMP00000000578-1 02 1 661.81 531.57 130.24
BRAVO 486 SX COMP00000000579-1 02 1 848.26 801.12 47.14
AST W/MONITOR COMP00000000580-1 02 1 845.83 798.87 46.96
AST W/MONITOR COMP00000000581-1 02 1 845.83 798.87 46.96
AST W\MONITOR 582 COMP00000000582-1 02 1 845.83 798.87 46.96
AST W\MONITOR 583 COMP00000000583-1 02 1 845.83 798.87 46.96
BRAVO 486 SX COMP00000000584-1 02 1 848.26 801.12 47.14
AST W/MONITOR COMP00000000585-1 02 1 845.83 798.87 46.96
BRAVO 486 SX COMP00000000586-1 02 1 848.28 801.13 47.15
BRAVO 486 SX COMP00000000587-1 02 1 848.28 801.13 47.15
?? COMP00000000588-1 02 1 664.01 533.29 130.72
CHEYENNE ARCSER COMP00000000589-1 02 1 591.24 474.86 116.38
AST W/MONITOR COMP00000000590-1 02 1 845.83 798.87 46.96
2.1 GB HARD DRIVE COMP00000000591-1 02 1 807.50 762.64 44.86
2.1 GB HARD DRIVE COMP00000000592-1 02 1 807.51 762.64 44.87
BLC4/33 COMP00000000593-1 02 1 884.59 835.43 49.16
486/33 COMP00000000594-1 02 1 661.81 625.02 36.79
?? COMP00000000595-1 02 1 664.01 627.09 36.92
??? COMP00000000596-1 02 1 664.01 627.09 36.92
HP JETSTORE 600 COMP00000000597-1 02 1 777.15 733.99 43.16
?? COMP00000000598-1 02 1 664.01 627.09 36.92
LASERJET COMP00000000599-1 02 1 685.70 647.63 38.07
NW3.12 COMP00000000600-1 02 1 718.64 678.70 39.94
CHEYENNE ARCSER COMP00000000601-1 02 1 720.00 680.00 40.00
BLC4/33 COMP00000000602-1 02 1 884.59 835.43 49.16
PENTIUM 133 COMP00000000603-1 02 1 888.34 713.51 174.83
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
PENTIUM 133 COMP00000000604-1 02 1 888.34 839.02 49.32
PENTIUM 133 COMP00000000605-1 02 1 902.05 851.96 50.09
PENTIUM 133 COMP00000000606-1 02 1 898.35 848.41 49.94
PENTIUM 133 COMP00000000607-1 02 1 898.35 848.41 49.94
PENTIUM 133 COMP00000000608-1 02 1 898.35 721.50 176.85
PENTIUM 133 COMP00000000609-1 02 1 898.35 848.41 49.94
PENTIUM 133 COMP00000000610-1 02 1 898.35 848.41 49.94
PENTIUM 133 COMP00000000611-1 02 1 898.35 698.74 199.61
PENTIUM 133 COMP00000000612-1 02 1 892.66 843.10 49.56
PENTIUM 133 COMP00000000613-1 02 1 898.35 848.41 49.94
PENTIUM 133 COMP00000000614-1 02 1 898.35 848.41 49.94
PENTIUM 133 COMP00000000615-1 02 1 902.05 851.96 50.09
PENTIUM 133 COMP00000000616-1 02 1 902.05 851.96 50.09
PENTIUM 133 COMP00000000617-1 02 1 892.66 843.10 49.56
PENTIUM 133 COMP00000000618-1 02 1 892.66 843.10 49.56
PENTIUM 133 COMP00000000619-1 02 1 892.66 843.10 49.56
PENTIUM 133 COMP00000000620-1 02 1 888.34 839.02 49.32
PENTIUM 133 COMP00000000621-1 02 1 888.34 839.02 49.32
PENTIUM 133 COMP00000000622-1 02 1 888.34 839.02 49.32
PENTIUM 133 COMP00000000623-1 02 1 888.34 839.02 49.32
PENTIUM 133 COMP00000000624-1 02 1 888.34 839.02 49.32
PENTIUM 133 COMP00000000625-1 02 1 888.34 839.02 49.32
4GB TAPE BACKUP COMP00000000626-1 02 1 892.33 842.78 49.55
PENTIUM 133 COMP00000000627-1 02 1 892.66 843.10 49.56
4GB TAPE BACKUP COMP00000000628-1 02 1 892.33 842.78 49.55
PENTIUM 133 COMP00000000629-1 02 1 892.66 843.10 49.56
PENTIUM 133 COMP00000000630-1 02 1 892.66 843.10 49.56
PENTIUM 133 COMP00000000631-1 02 1 892.66 843.10 49.56
PENTIUM 133 COMP00000000632-1 02 1 922.51 871.29 51.22
AST LP4/66 COMP00000000633-1 02 1 1,180.44 1,114.86 65.58
BRAVO MS-L 4/66 COMP00000000634-1 02 1 1,157.47 1,093.15 64.32
BRAVO LP W/340 COMP00000000635-1 02 1 1,382.47 1,305.65 76.82
BRAVO LP W/340 COMP00000000636-1 02 1 1,382.47 1,305.65 76.82
SPSS STATS PACK COMP00000000637-1 02 1 1,162.48 1,097.89 64.59
??? COMP00000000638-1 02 1 1,183.66 1,117.91 65.75
BRAVO MS-L 4/66 COMP00000000639-1 02 1 1,157.47 1,093.15 64.32
AST LP4/66 COMP00000000640-1 02 1 1,198.95 1,132.31 66.64
AST LP4/66 COMP00000000641-1 02 1 1,198.96 1,132.32 66.64
HP LASERJET 5P COMP00000000642-1 02 1 1,201.65 1,134.90 66.75
BRAVO LP W/340 COMP00000000643-1 02 1 1,382.46 1,305.65 76.81
BRAVO MS-L 4/66 COMP00000000644-1 02 1 1,157.47 1,093.15 64.32
BRAVO MS -L 4/66 COMP00000000645-1 02 1 1,157.46 1,093.15 64.31
WG FOR LOTUS NO COMP00000000646-1 02 1 1,256.33 1,186.55 69.78
BRAVO LP DESKTOP COMP00000000647-1 02 1 1,110.78 1,049.04 61.74
BLC4/33 COMP00000000648-1 02 1 1,105.24 1,043.83 61.41
BLC4/33 COMP00000000649-1 02 1 1,105.24 1,043.83 61.41
AST LP4/66 COMP00000000650-1 02 1 1,107.43 1,045.89 61.54
486/33 COMP00000000651-1 02 1 1,108.21 1,046.62 61.59
3.0 GB HARD DRIVE COMP00000000652-1 02 1 1,137.05 1,073.85 63.20
AST 4/33 COMP00000000653-1 02 1 1,146.17 1,082.51 63.66
3.0 GB HARD DRIVE COMP00000000654-1 02 1 1,137.05 1,073.85 63.20
AST 4/33 COMP00000000655-1 02 1 1,146.17 1,082.51 63.66
SCANNING SOFTWARE COMP00000000656-1 02 1 1,258.32 1,188.39 69.93
?? COMP00000000657-1 02 1 1,057.07 998.32 58.75
AST BRAVO LP DE COMP00000000658-1 02 1 1,361.44 1,285.82 75.62
BRAVO LP DESKTOP COMP00000000659-1 02 1 1,350.23 1,275.24 74.99
BRAVO MS-L 4/66 COMP00000000660-1 02 1 1,355.01 1,279.74 75.27
AST BRAVO LP DE COMP00000000661-1 02 1 1,361.44 1,285.82 75.62
AST BRAVO LP DE COMP00000000662-1 02 1 1,361.44 1,285.82 75.62
AST BRAVO LP DE COMP00000000663-1 02 1 1,361.44 1,285.82 75.62
AST BRAVO LP DE COMP00000000664-1 02 1 1,361.44 1,285.82 75.62
AST BRAVO LP DE COMP00000000665-1 02 1 1,361.44 1,285.82 75.62
BRAVO MS-L 4/66 COMP00000000666-1 02 1 1,355.01 1,279.74 75.27
BRAVO MS - L4/66 COMP00000000667-1 02 1 1,355.02 1,279.75 75.27
AST BRAVO LP DE COMP00000000668-1 02 1 1,361.44 1,285.82 75.62
AST BRAVO LP DE COMP00000000669-1 02 1 1,361.44 1,280.81 80.63
200MHZ PRO INTE COMP00000000670-1 02 1 1,331.42 1,257.43 73.99
MINIWRITER COMP00000000671-1 02 1 1,302.38 1,230.05 72.33
2.1 GB HARD DRIVE COMP00000000672-1 02 1 1,321.41 1,248.03 73.38
2.1 GB HARD DRIVE COMP00000000673-1 02 1 1,321.41 1,248.03 73.38
2.1 GB HARD DRIVE COMP00000000674-1 02 1 1,321.41 1,248.03 73.38
4.29 GB HARD DRIVE COMP00000000675-1 02 1 1,377.09 1,300.57 76.52
2.1 GB HARD DRIVE COMP00000000676-1 02 1 1,321.41 1,248.03 73.38
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
KVM 12 TO 1 SER COMP00000000677-1 02 1 1,323.57 1,250.07 73.50
200MHZ PRO INTE COMP00000000678-1 02 1 1,331.42 1,257.43 73.99
HP SURESTORE 60 COMP00000000679-1 02 1 1,327.34 1,253.60 73.74
AST BRAVO LP DE COMP00000000680-1 02 1 1,361.44 1,285.82 75.62
200MHZ PRO INTE COMP00000000681-1 02 1 1,331.42 1,257.43 73.99
200 MHZ PRO INTE COMP00000000682-1 02 1 1,331.42 1,257.43 73.99
NETWARE 2.1 COMP00000000683-1 02 1 1,093.32 1,032.58 60.74
AST BRAVO LP DE COMP00000000684-1 02 1 1,361.44 1,285.82 75.62
AST LP4/66 COMP00000000685-1 02 1 1,054.25 995.65 58.60
AST LP4/66 COMP00000000686-1 02 1 1,054.25 995.65 58.60
32 MB ROM DRIVE COMP00000000687-1 02 1 1,005.49 949.63 55.86
PENTIUM 133 COMP00000000688-1 02 1 1,001.50 945.87 55.63
PENTIUM 133 COMP00000000689-1 02 1 1,001.50 945.87 55.63
PENTIUM 133 COMP00000000690-1 02 1 1,001.50 945.87 55.63
AST LP4/66 COMP00000000691-1 02 1 1,012.10 955.85 56.25
AST LP4/66 COMP00000000692-1 02 1 1,012.10 955.85 56.25
PENTIUM 133 COMP00000000693-1 02 1 1,001.50 945.87 55.63
486/33 COMP00000000694-1 02 1 1,028.17 971.05 57.12
486/33 COMP00000000695-1 02 1 1,028.17 971.05 57.12
PENTIUM 133 COMP00000000696-1 02 1 1,001.50 945.87 55.63
PENTIUM 133 COMP00000000697-1 02 1 1,001.50 945.87 55.63
486/33 COMP00000000698-1 02 1 1,028.17 971.05 57.12
486/33 COMP00000000699-1 02 1 957.72 904.49 53.23
AST 4/33 COMP00000000700-1 02 1 952.64 899.70 52.94
AST 4/33 COMP00000000701-1 02 1 952.64 899.70 52.94
486/33 COMP00000000702-1 02 1 957.72 904.49 53.23
HP SCANJET 4C COMP00000000703-1 02 1 986.50 931.68 54.82
32 PORT ETHERHU COMP00000000704-1 02 1 980.44 925.94 54.50
PENTIUM 133 COMP00000000705-1 02 1 1,001.50 945.87 55.63
MAPINFO UPGRADE COMP00000000706-1 02 1 990.00 935.00 55.00
WINDOWS NT LISCENSE COMP00000000707-1 02 1 991.63 936.57 55.06
32 PORT ETHERHU COMP00000000708-1 02 1 994.52 939.30 55.22
486/33 COMP00000000709-1 02 1 1,028.17 971.05 57.12
PENTIUM 133 COMP00000000710-1 02 1 1,001.50 945.87 55.63
BRAVO LP W/340 COMP00000000711-1 02 1 1,382.47 1,305.65 76.82
486/33 COMP00000000712-1 02 1 1,028.17 971.05 57.12
BRAVO LP W/340 COMP00000000713-1 02 1 1,382.47 1,305.65 76.82
486/33 COMP00000000714-1 02 1 1,028.17 971.05 57.12
AST LP 4/66 COMP00000000715-1 02 1 1,053.86 995.29 58.57
AST LP4/66 COMP00000000716-1 02 1 1,054.25 995.65 58.60
COMPUTER COMP00000000717-1 02 1 9,613.20 8,008.67 1,604.53
CABELING COMP00000000718-1 02 1 395.00 351.10 43.90
SOFTWARE COMP00000000719-1 02 1 670.00 595.55 74.45
3 LUCENT CALLMASTERS COMP00000000720-1 02 1 3,890.00 3,137.14 752.86
SOFTWARE UPGRADE COMP00000000721-1 02 1 313.95 270.34 43.61
COMPUTER EQUIP COMP00000000722-1 02 1 258.30 222.46 35.86
SOFTWARE COMP00000000723-1 02 1 3,870.00 3,332.50 537.50
HARD DRIVES COMP00000000724-1 02 1 1,648.00 1,419.13 228.87
COMPUTER COMP00000000725-1 02 1 4,243.35 3,653.99 589.36
HARD DRIVES COMP00000000726-1 02 1 1,416.45 1,219.75 196.70
COMPUTER COMP00000000727-1 02 1 1,894.18 1,631.13 263.05
COMPUTER COMP00000000728-1 02 1 917.70 790.23 127.47
COMPUTER COMP00000000729-1 02 1 2,925.90 2,519.56 406.34
SOFTWARE COMP00000000730-1 02 1 1,600.00 1,377.75 222.25
BACKUP SOFTWARE COMP00000000731-1 02 1 745.06 641.61 103.45
MEMORY732 COMP00000000732-1 02 1 2,097.40 1,806.09 291.31
BACK UP SOFTWARE COMP00000000733-1 02 1 2,830.58 2,437.46 393.12
COMPUTER COMP00000000734-1 02 1 1,770.40 1,524.53 245.87
3 COMPUTERS/CD COMPONENTS COMP00000000735-1 02 1 7,794.96 6,286.44 1,508.52
MONITORS COMP00000000736-1 02 1 4,341.75 3,738.70 603.05
SOFTWARE COMP00000000737-1 02 1 2,162.00 1,861.75 300.25
COMPUTER COMP00000000738-1 02 1 1,770.45 1,524.56 245.89
COMPUTER COMP00000000739-1 02 1 1,400.75 1,206.20 194.55
SOFTWARE AND CABLES COMP00000000740-1 02 1 1,459.50 1,177.03 282.47
NOVELL SOFTWARE COMP00000000741-1 02 1 3,083.61 2,655.36 428.25
SOFTWARE COMP00000000742-1 02 1 540.75 465.64 75.11
CABLING 743 COMP00000000743-1 02 1 1,837.50 1,582.28 255.22
PRINTER COMP00000000744-1 02 1 3,709.65 3,194.45 515.20
MEMORY COMP00000000745-1 02 1 5,679.50 4,890.65 788.85
HARD DRIVES COMP00000000746-1 02 1 1,207.50 1,039.78 167.72
COMPUTER COMP00000000747-1 02 1 82.95 69.10 13.85
COMPUTER COMP00000000748-1 02 1 1,785.00 959.91 825.09
COMPUTER COMP00000000749-1 02 1 3,663.75 3,052.21 611.54
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
COMPUTER COMP00000000750-1 02 1 875.00 728.92 146.08
COMPUTER COMP00000000751-1 02 1 99.00 82.50 16.50
COMPUTER COMP00000000752-1 02 1 10.50 8.74 1.76
COMPUTER COMP00000000753-1 02 1 1,087.50 905.98 181.52
COMPUTER COMP00000000754-1 02 1 10.50 8.74 1.76
COMPUTER COMP00000000755-1 02 1 1,511.00 1,258.80 252.20
COMPUTER COMP00000000756-1 02 1 4,560.15 3,799.00 761.15
COMPUTER COMP00000000757-1 02 1 380.30 316.82 63.48
COMPUTER COMP00000000758-1 02 1 6,054.30 5,043.75 1,010.55
COMPUTER COMP00000000759-1 02 1 5,384.96 4,486.12 898.84
COMPUTER COMP00000000760-1 02 1 189.00 157.43 31.57
COMPUTER COMP00000000761-1 02 1 1,770.35 1,474.83 295.52
COMPUTER COMP00000000762-1 02 1 3,319.15 2,765.13 554.02
COMPUTER COMP00000000763-1 02 1 442.25 368.44 73.81
COMPUTER COMP00000000764-1 02 1 1,116.20 929.92 186.28
COMPUTER COMP00000000765-1 02 1 2,046.73 1,705.09 341.64
COMPUTER COMP00000000766-1 02 1 3,129.00 2,606.75 522.25
COMPUTER COMP00000000767-1 02 1 888.30 740.01 148.29
COMPUTER COMP00000000768-1 02 1 4,458.30 3,714.19 744.11
10 FAX CARTRIDGES COMP00000000769-1 02 1 787.50 635.11 152.39
3 COMPUTER MEMORIES COMP00000000770-1 02 1 3,663.75 2,954.71 709.04
2 COMPAQ COMPUTERS COMP00000000771-1 02 1 2,436.00 1,964.53 471.47
3 CARE MGR COMPUTERS COMP00000000772-1 02 1 2,869.67 2,314.32 555.35
10 PRINTER TONERS COMP00000000773-1 02 1 1,335.06 1,076.69 258.37
COMPUTER\MOTHERBROADS COMP00000000774-1 02 1 3,184.65 2,568.34 616.31
CRYTAL INFO SOFTWARE COMP00000000775-1 02 1 3,174.00 2,559.73 614.27
2 computers/monitors/cables COMP00000000776-1 02 1 4,924.50 3,130.02 1,794.48
COMPAQ COMPUTER COMP00000000777-1 02 1 2,157.75 1,740.17 417.58
5 CPU'S COMP00000000778-1 02 1 2,152.50 1,735.91 416.59
2 MONITORS/9 CPU'S COMP00000000779-1 02 1 4,972.80 4,010.39 962.41
3 COMPUTERS/MEMORIES COMP00000000780-1 02 1 3,663.75 2,954.71 709.04
COMPUTER EQUIPMENT COMP00000000781-1 02 1 3,940.00 3,177.50 762.50
CALLMASTER III COMP00000000782-1 02 1 2,095.00 1,689.57 405.43
LUCENT CALLMASTER III COMP00000000783-1 02 1 5,610.00 4,524.32 1,085.68
CABLE COMP00000000784-1 02 1 4.20 3.41 0.79
COMPUTER EQUIPMENT COMP00000000785-1 02 1 12,937.50 10,433.74 2,503.76
MONITOR COMP00000000786-1 02 1 552.30 445.39 106.91
2 COMPUTERS ETC COMP00000000787-1 02 1 2,294.25 1,850.25 444.00
JAZ DRIVE AND XXXXXX COMP00000000788-1 02 1 612.15 493.65 118.50
CPU COMP00000000789-1 02 1 246.75 199.02 47.73
COMPUTER/MEMORY ET. AL COMP00000000790-1 02 1 1,221.25 984.88 236.37
4 CMPQ 4550/K6 233 MMX 48 COMP00000000791-1 02 1 5,028.00 2,348.15 2,679.85
3 SEAG BARACUDA 4.55GB COMP00000000792-1 02 1 1,821.75 1,192.01 629.74
8 CMPQ 4550/K6 233MMX 48 COMP00000000793-1 02 1 13,120.40 6,127.38 6,993.02
CMPQ 4550/K6 233 MMX 48 COMP00000000794-1 02 1 2,499.00 1,167.04 1,331.96
EPSON STYLUS 1520&HP500 PRINTER COMP00000000795-1 02 1 1,356.60 633.57 723.03
LUCENT CALLMASTER III/4-7406 PLU COMP00000000796-1 02 1 4,685.00 2,187.92 2,497.08
MCSE SUITE #5 & DEVELOPER PK. COMP00000000797-1 02 1 1,802.00 841.54 960.46
SERVICE-EP6000 COMP00000000798-1 02 1 1,328.05 869.00 459.05
SOFTWARE COMP00000000799-1 02 1 4,530.00 2,115.54 2,414.46
SUN DATA STN 175213 COMP00000000800-1 02 1 1,612.54 708.59 903.95
10 3COM ELINK-XL PCI 10/100 COMP00000000801-1 02 1 965.00 450.66 514.34
?? COMP00000000802-1 02 1 942.00 549.89 392.11
25 PL-H51 SUPRA MON 2B3 COMP00000000803-1 02 1 1,379.40 644.21 735.19
APL PMG3/266 COMPUTER COMP00000000804-1 02 1 4,764.90 2,225.27 2,539.63
4 VIEW 17 MONITORS COMP00000000805-1 02 1 2,066.40 965.02 1,101.38
?? COMP00000000806-1 02 1 2,490.20 2,422.91 67.29
?? COMP00000000807-1 02 1 833.36 486.47 346.89
200 ANTI-STATIC WIPES COMP00000000808-1 02 1 390.86 182.51 208.35
MEM CR-W620 REWRITER COMP00000000809-1 02 1 472.50 309.16 163.34
MAXT 8.4GB HARD DRIVE COMP00000000810-1 02 1 586.95 274.10 312.85
PENTIUM 133 COMP00000000811-1 02 1 922.51 871.29 51.22
PROTEGE P-2 300 6.4 GB COMPUTER COMP00000000812-1 02 1 2,500.74 487.13 2,013.61
RIGHT FAX NT UPGRADE COMP00000000813-1 02 1 16,204.85 3,156.72 13,048.13
DESK PRO COMPUTERS P3-450 COMP00000000814-30 02 1 32,448.50 6,320.93 26,127.57
TSU LT SA T1/FT1 DSU/CSU SGL V 9 COMP00000000815-1 02 1 650.75 90.85 559.90
XXXXXX X000 X0 000 00XX COMP00000000816-1 02 1 3,302.22 461.00 2,841.22
TRACK IT(MULTI-USER) COMP00000000817-1 02 1 2,401.00 335.20 2,065.80
ADOBE PUBLISH COLLECTION COMP00000000818-1 02 1 1,897.94 264.95 1,632.99
DESKPRO EN SFF P3-500 64MB(20) COMP00000000819-20 02 1 23,601.60 3,294.75 20,306.85
MSOL VISUAL STUDIO V6.0(QTY20) COMP00000000820-1 02 1 22,718.60 3,171.50 19,547.10
DESKPRO EN P3-500MHZ 10 0GB 64MB COMP00000000821-7 02 1 8,946.30 1,248.90 7,697.40
ARMADA 1750 P2-366 64/6.4 24CD 1 COMP00000000822-2 02 1 4,750.00 663.10 4,086.90
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
ARMADA M300 P2-333MHZ 64MB 6.4HD COMP00000000823-1 02 1 2,569.99 358.75 2,211.24
NOVELL NETWARES 10 USER ADDITIVE COMP00000000824-1 02 1 1,255.32 175.25 1,080.07
CA ARCSERVEIT COMP00000000825-1 02 1 1,389.95 194.05 1,195.90
PROLIANT 5500/6400R P3-500 XEO M COMP00000000826-2 02 1 3,452.00 481.90 2,970.10
COMPUTER SUPPLIES COMP00000000827-1 02 1 1,920.82 268.15 1,652.67
RFP MACHINE VERSION 4.05 COMP00000000828-5 02 1 6,009.00 838.85 5,170.15
DESKPRO EN SFF P3-500 COMP00000000829-1 02 1 1,227.09 136.96 1,090.13
DESKPRO EN SFF P3-500 COMP00000000830-1 02 1 1,182.48 132.00 1,050.48
COMPAQ M300 PII 333 (2) COMP00000000831-2 02 1 5,122.00 571.72 4,550.28
MS OFF PREMIUM 2000 WIN32 COMP00000000832-1 02 1 770.52 86.00 684.52
NOVELL NETWARE COMP00000000833-1 02 1 2,563.85 277.32 2,286.53
SMART ARRAY/PROLIANT 3200 COMPUT COMP00000000834-1 02 1 24,261.72 2,708.04 21,553.68
INTERNAL DRIVE COMP00000000835-1 02 1 13,197.87 1,473.12 11,724.75
Laptop Computer (1 of 2) COMP00000000836-1 02 1 1,380.00 154.04 1,225.96
Laptops (2 of 2) COMP00000000836-2 02 1 1,380.00 154.04 1,225.96
Novell Upgrade (3.12) COMP00000000838-1 02 1 1,680.00 1,680.00 0.00
COMPUTER 486DX50 COMP00000000839-1 02 1 1,249.50 1,249.50 0.00
TELEPHONE UPGRADE COMP00000000840-1 02 1 2,297.93 2,297.93 0.00
COMPUTER 486DX40 COMP00000000841-1 02 1 2,410.80 2,410.80 0.00
MEMORY SWAP COMP00000000842-1 02 1 693.00 693.00 0.00
NETWORK UPGRADE COMP00000000843-1 02 1 1,272.60 1,272.60 0.00
REPLACEMENT MONITORS COMP00000000844-1 02 1 861.00 861.00 0.00
MEG TAPE BACKUP COMP00000000845-1 02 1 1,522.50 1,522.50 0.00
FILE SERVER COMP00000000846-1 02 1 3,981.20 3,981.20 0.00
NOVELL 312 COMP00000000847-1 02 1 1,627.50 1,627.50 0.00
NET WORK COMP00000000848-1 02 1 551.25 551.25 0.00
CCS COMPUTER 230 W COMP00000000849-1 02 1 2,768.52 2,768.52 0.00
CCS COMPUTER 230W COMP00000000850-1 02 1 2,675.07 2,675.07 0.00
HP FAX COMP00000000851-1 02 1 734.90 734.90 0.00
CCS COMPUTER 230 W COMP00000000852-1 02 1 2,513.37 2,513.37 0.00
SOFTWARE COMP00000000853-1 02 1 1,353.50 1,353.50 0.00
COMPUTER SOFTWARE COMP00000000854-1 02 1 7,980.00 7,980.00 0.00
COMPUTER SOFTWARE COMP00000000855-1 02 1 600.00 600.00 0.00
COMPUTER SOFTWARE COMP00000000856-1 02 1 6,980.00 6,980.00 0.00
COMPUTER SOFTWARE COMP00000000857-1 02 1 6,980.00 6,980.00 0.00
COMPUTER SOFTWARE COMP00000000858-1 02 1 5,795.00 5,795.00 0.00
COMPUTER SOFTWARE COMP00000000859-1 02 1 5,795.00 5,795.00 0.00
CCS COMPUTER CASE 230W COMP00000000860-1 02 1 2,995.00 2,995.00 0.00
000X XXXX XXXXX COMP00000000861-1 02 1 660.45 660.45 0.00
COMPUTER COMP00000000862-1 02 1 563.42 563.42 0.00
COMPUTER SOFTWARE COMP00000000863-1 02 1 2,518.95 2,518.95 0.00
COMPUTER SOFTWARE COMP00000000864-1 02 1 3,637.20 3,637.20 0.00
COMPUTER COMP00000000865-1 02 1 1,566.60 1,566.60 0.00
MEDICAL SOFTWARE COMP00000000866-1 02 1 2,518.95 2,518.95 0.00
MON COMPUTER COMP00000000867-1 02 1 5,400.00 5,400.00 0.00
CREATIVELAB SOUNDLAS COMP00000000868-1 02 1 660.45 660.45 0.00
COMPUTER NETWORK SYSTEMS COMP00000000869-1 02 1 1,093.80 1,093.80 0.00
D LINK DE 812 TP COMP00000000870-1 02 1 1,207.05 1,207.05 0.00
THREE COMPUTERS COMP00000000871-1 02 1 8,772.75 8,772.75 0.00
NOVELL NETWEAR COMP00000000872-1 02 1 2,579.90 2,579.90 0.00
Computer Tape Drives COMP00000000873-2 02 2 4,121.52 345.81 3,775.71
MEMORY & SCI HAED DR COMP00000000874-1 02 1 2,336.25 2,336.25 0.00
HP LASERJET PRINTER COMP00000000875-1 02 1 3,622.50 3,622.50 0.00
HP JETDIRECT EX COMP00000000876-1 02 1 1,618.05 1,618.05 0.00
COMPUTER 486 DX COMP00000000877-1 02 1 1,499.40 1,499.40 0.00
ELECTRONICS SOFTWARE COMP00000000878-1 02 1 2,270.00 2,270.00 0.00
LOTUS 123 V 5 COMP00000000879-1 02 1 1,358.70 1,358.70 0.00
GREAT PLAIN UP GRADE COMP00000000880-1 02 1 793.80 793.80 0.00
CCS COMPUTER COMP00000000881-1 02 1 7,536.90 7,536.90 0.00
CCS COMPUTER MIDDLE TOWER COMP00000000882-1 02 1 3,995.10 3,995.10 0.00
COM MEMORY SIMM COMP00000000883-1 02 1 523.95 523.95 0.00
COMPUTER COMP00000000884-1 02 1 3,097.50 3,097.50 0.00
PERSONAL COMMUNICATOR COMP00000000885-1 02 1 518.49 518.49 0.00
COMPUTER 8120 P COMP00000000886-1 02 1 3,503.86 3,503.86 0.00
COMPUTER COMP00000000887-1 02 1 1,711.50 1,711.50 0.00
PIN SIM 16M RAM COMP00000000888-1 02 1 500.00 500.00 0.00
GROPEWISE V4.1 COMP00000000889-1 02 1 2,655.25 2,655.25 0.00
COMPUTER EQUIP COMP00000000890-1 02 1 1,854.30 1,854.30 0.00
MEDICAL SOFTWARE COMP00000000891-1 02 1 2,249.83 2,249.83 0.00
NOVELL UPGRADE COMP00000000892-1 02 1 1,829.10 1,829.10 0.00
SOFTWARE GREAT PLAINS COMP00000000893-1 02 1 729.75 729.75 0.00
COMPUTER EQUIP COMP00000000894-1 02 1 3,995.00 3,995.00 0.00
COMPUTER EQUIP COMP00000000895-1 02 1 2,347.80 2,347.80 0.00
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
COMPUTER COMP00000000896-1 02 1 1,041.95 1,041.95 0.00
CASE MID TOWER (2) COMP00000000897-1 02 1 4,588.50 4,588.50 0.00
0 XX XXXX XXXX XXXX XXXXX COMP00000000898-1 02 1 714.00 714.00 0.00
COMPUTER COMP00000000899-1 02 1 761.90 761.90 0.00
GREAT PLAINS EXPAN KIT COMP00000000900-1 02 1 595.00 595.00 0.00
HARD DRIVE 4 GIG 15230N COMP00000000901-1 02 1 1,247.40 1,247.40 0.00
CABLE THERNET RG 58 (2) COMP00000000902-1 02 1 735.00 735.00 0.00
CCS SYSTEMS 2 COMP00000000903-1 02 1 2,014.95 2,014.95 0.00
COMPUTER SOFTWARE COMP00000000904-1 02 1 745.50 745.50 0.00
COMPUTER COMP00000000905-1 02 1 551.50 551.50 0.00
PRINTER FOR CHMS COMP00000000906-1 02 1 2,992.50 2,992.50 0.00
ACCOUNTING SOFTWARE COMP00000000907-1 02 1 2,600.94 2,600.94 0.00
INSTALLATION OF NETWORK COMP00000000909-1 02 1 1,586.67 1,586.67 0.00
COMPUDYNE COMPUTER 486DX33 COMP00000000910-1 02 1 717.49 717.49 0.00
NETWORK CARD, NOVELL MIRCO DYNE COMP00000000911-1 02 1 374.06 374.06 0.00
NEW HARDDRIVE FOR NETWORK COMP00000000912-1 02 1 546.44 546.44 0.00
COMPUTER 486DX50 COMP00000000913-1 02 1 1,406.87 1,406.87 0.00
COMPUDYNE 486DX50 COMP00000000914-1 02 1 793.87 793.87 0.00
COMPUTER SYSTEMS COMP00000000915-1 02 1 881.99 881.99 0.00
MEMORY CHIPS COMP00000000916-1 02 1 284.36 284.36 0.00
TELEPHONE SYSTEM COMP00000000917-1 02 1 1,546.82 1,546.82 0.00
HP LASERJET IIIP COMP00000000918-1 02 1 254.88 254.88 0.00
TOSHIBA 4700 FAX MACHINE COMP00000000919-1 02 1 105.00 105.00 0.00
SURVEY SOFTWARE COMP00000000920-1 02 1 2,156.00 2,156.00 0.00
COMPUDYNE 486 DXDX33 COMP00000000921-1 02 1 277.00 277.00 0.00
HP LASERJET III COMP00000000922-1 02 1 253.57 253.57 0.00
COMPUDYNE 386SX25 COMP00000000923-1 02 1 160.01 160.01 0.00
HP LASERJET IIIP COMP00000000924-1 02 1 172.32 172.32 0.00
DELL S325SX PC & NETWORK S/W COMP00000000925-1 02 1 302.51 302.51 0.00
MEMORY CHIPS COMP00000000926-1 02 1 111.67 111.67 0.00
CD DRIVE, ETC COMP00000000927-1 02 1 554.40 554.40 0.00
COMPUDYNE 486DX33 COMP00000000928-1 02 1 486.49 486.49 0.00
COMPUDYNE SOHO
386SX25 COMP00000000929-1 02 1 280.86 280.86 0.00
MEMORY UPGRADE COMP00000000930-1 02 1 232.09 232.09 0.00
CCS SYSTEM2 COMP00000000932-1 02 1 1,319.67 1,319.67 0.00
COMPUTER 486DX33 COMP00000000933-1 02 1 827.75 827.75 0.00
Computer Software and License COMP00000000935-2 02 2 6,696.10 561.84 6,134.26
Computer, Controller and Interna COMP00000000936-4 02 4 9,248.61 776.01 8,472.60
Computer Drive COMP00000000937-1 02 1 791.45 66.42 725.03
Computer Controller COMP00000000938-1 02 1 818.22 68.64 749.58
Compaq Computer COMP00000000939-1 02 1 1,139.99 95.64 1,044.35
Deskpro Computers COMP00000000940-3 02 3 3,552.89 298.11 3,254.78
Deskpro Computer COMP00000000941-1 02 1 1,197.46 100.47 1,096.99
Intel Laptop station COMP00000000942-1 02 1 750.00 62.94 687.06
Computers COMP00000000943-5 02 5 14,277.60 1,197.96 13,079.64
Deskpro Computer COMP00000000944-1 02 1 1,299.00 108.99 1,190.01
Intel Laptop Station COMP00000000945-4 02 4 3,101.69 260.25 2,841.44
Computer COMP00000000947-1 02 1 2,997.43 167.38 2,830.05
Computers COMP00000000949-3 02 3 3,947.56 110.56 3,837.00
Software License COMP00000000950-1 02 1 1,064.00 29.80 1,034.20
COMPUTER COMP00000000952-1 02 1 5,080.69 0.00 5,080.69
Head Phones EQUIP0000000026-1 02 1 424.20 424.20 0.00
Teleconference Systems EQUIP0000000027-1 02 1 1,094.00 1,094.00 0.00
Fax Machine EQUIP0000000028-1 02 1 472.49 394.00 78.49
Canon 8500 Fax EQUIP0000000029-1 02 1 2,020.00 1,137.28 882.72
7th FLoor Move EQUIP0000000000-1 02 1 21,717.00 12,324.70 9,392.30
Equipment EQUIP0000000031-1 02 1 1,195.75 648.18 547.57
Equipment EQUIP0000000032-1 02 1 1,513.38 820.39 692.99
CBCSC60-SCI 6.0 EQUIP0000000033-2 02 1 3,910.00 2,119.54 1,790.46
Equipment EQUIP0000000034-1 02 1 15,642.20 8,479.30 7,162.90
Sundata Station 175213 EQUIP0000000035-1 02 1 3,252.87 1,695.76 1,557.11
7406PLUS/HEADSET EQUIP0000000036-1 02 1 1,007.50 105.50 902.00
Equipment Finance EQUIP0000000037-1 02 1 3,275.94 1,707.77 1,568.17
Canon 9000 EQUIP0000000038-1 02 1 2,243.75 1,169.71 1,074.04
Canon 9000 EQUIP0000000039-1 02 1 2,243.75 1,169.71 1,074.04
Call Master III EQUIP0000000040-1 02 1 1,196.67 623.82 572.85
Lucent 7406 Plus EQUIP0000000041-1 02 1 846.67 441.40 405.27
Call Master III EQUIP0000000042-1 02 1 1,196.67 624.53 572.14
??? EQUIP0000000043-1 02 1 750.00 375.04 374.96
??? EQUIP0000000044-1 02 1 1,274.39 637.20 637.19
??? EQUIP0000000045-1 02 1 6,491.59 3,245.78 3,245.81
Transtalk Pocket Phone EQUIP0000000046-2 02 1 2,085.00 1,042.52 1,042.48
Various Telephone Equipment EQUIP0000000047-1 02 1 2,781.65 1,390.82 1,390.83
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
AT&T Announcement Module EQUIP0000000000-1 02 1 3,645.00 1,746.58 1,898.42
Digital Line Circuit Card 0614 EQUIP0000000049-1 02 1 2,795.00 1,281.05 1,513.95
Digital Line Circuit Card 0714 EQUIP0000000050-1 02 1 2,795.00 1,281.05 1,513.95
AT&T ISDN Module EQUIP0000000051-1 02 1 2,785.00 1,276.45 1,508.55
Princeton/Faxphone EQUIP0000000052-1 02 1 851.96 390.49 461.47
Telephones EQUIP0000000053-1 02 1 3,815.00 1,748.55 2,066.45
Announcement Board EQUIP0000000054-1 02 1 3,905.00 1,789.76 2,115.24
Telephone Equipment EQUIP0000000000-1 02 1 21,772.78 9,979.19 11,793.59
Call Master III EQUIP0000000056-1 02 1 2,330.00 1,164.99 1,165.01
Priority Equipment EQUIP0000000057-1 02 1 25,807.00 10,752.95 15,054.05
Intra LATA T-1 Local Loop & Xxxx EQUIP0000000058-1 02 1 3,263.85 1,291.96 1,971.89
SugarLoaf EQUIP0000000059-1 02 1 119,571.50 47,330.37 72,241.13
ITF EQUIP0000000060-1 02 1 71,300.00 28,222.94 43,077.06
GE Capital EQUIP0000000061-1 02 1 49,023.96 19,405.30 29,618.66
Integrity EQUIP0000000062-1 02 1 9,028.00 3,573.56 5,454.44
NorthStar EQUIP0000000000-1 02 1 149,216.50 59,064.89 90,151.61
Att. ISDN Relay Module EQUIP0000000064-1 02 1 3,785.00 1,419.35 2,365.65
Medical Manager Software EQUIP0000000065-1 02 1 6,795.00 2,548.11 4,246.89
Compaq 5220 EQUIP0000000066-1 02 1 3,087.00 1,093.30 1,993.70
Nec 120ft MGX EQUIP0000000067-1 02 1 1,197.77 424.19 773.58
System Software Development EQUIP0000000068-1 02 1 975.00 345.30 629.70
Nec 120lt MGX EQUIP0000000069-1 02 1 1,012.50 358.57 653.93
SYSTEM UPGRADE - MAINTENANCE EQUIP0000000070-1 02 1 3,995.00 1,497.10 2,497.90
Viking Upgrade EQUIP0000000000-1 02 1 1,076.47 381.27 695.20
Access EQUIP0000000072-1 02 1 750.00 265.66 484.34
Fiber Optic Jumpers EQUIP0000000073-1 02 1 487.50 172.68 314.82
Software System EQUIP0000000074-1 02 1 1,010.00 357.70 652.30
Viking Upgrade Kits EQUIP0000000075-1 02 1 2,017.00 672.33 1,344.67
Paradigm Software EQUIP0000000076-1 02 1 4,780.00 1,593.31 3,186.69
Belkin Pro/32K Cavier Ultra DMA EQUIP0000000077-1 02 1 1,116.62 372.19 744.43
Compaq DeskPro EnCeleron EQUIP0000000078-1 02 1 6,817.38 2,272.47 4,544.91
HP LaserJet IV Printer EQUIP0000000079-1 02 1 1,549.38 566.87 982.51
Telephone System for Georgia EQUIP0000000080-1 02 1 11,290.00 3,057.72 8,232.28
Telephone System EQUIP0000000081-1 02 1 11,935.47 2,983.90 8,951.57
Software License EQUIP0000000082-1 02 1 25,000.00 5,729.14 19,270.86
Phones, Headsets & Accessories EQUIP0000000083-1 02 1 2,915.00 668.03 2,246.97
Cabling-Parts & Service EQUIP0000000084-1 02 1 1,286.22 294.79 991.43
Telephone System EQUIP0000000085-1 02 1 4,130.00 946.45 3,183.55
Phone Switch Upgrade EQUIP0000000086-1 02 1 48,318.25 10,066.30 38,251.95
500A Telephone handset & Accesso EQUIP0000000087-10 02 1 3,227.00 605.07 2,621.93
Teleform Elite Computer Software EQUIP0000000088-1 02 1 6,015.00 1,127.80 4,887.20
Installation changes-Tleform Xxx EQUIP0000000000-1 02 1 4,200.00 787.50 3,412.50
HP3SI Recon Printer EQUIP0000000090-1 02 1 630.00 118.30 511.70
Fax Machines EQUIP0000000091-4 02 1 4,746.00 792.72 3,953.28
Telephone Equipment EQUIP0000000092-1 02 1 1,120.00 187.06 932.94
Fax Machine EQUIP0000000093-1 02 1 2,373.00 396.36 1,976.64
Telephone Equipment EQUIP0000000094-1 02 1 3,169.15 509.06 2,660.09
Telephone Equipment & Accessorie EQUIP0000000095-1 02 1 51,912.46 7,586.11 44,326.35
Medical Manager Data Converter EQUIP0000000096-1 02 1 3,800.00 555.31 3,244.69
Telephone Equipment EQUIP0000000000-1 02 1 607.00 88.69 518.31
Phones EQUIP0000000099-1 02 1 5,790.00 724.14 5,065.86
Fax machine EQUIP0000000100-1 02 1 884.25 110.58 773.67
FAX MACHINE EQUIP0000000101-1 02 1 1,869.70 1,060.05 809.65
CANON 550 FAX EQUIP0000000102-1 02 1 1,418.03 803.94 614.09
CANON 550 FAX EQUIP0000000103-1 02 1 1,418.03 803.94 614.09
CANON 550 FAX EQUIP0000000104-1 02 1 1,418.03 803.94 614.09
FAX MODEL 9300 EQUIP0000000000-1 02 1 1,429.93 810.70 619.23
FAX MODEL 9300 EQUIP0000000106-1 02 1 1,458.55 826.94 631.61
ANNOUNCEMENT BO EQUIP0000000107-1 02 1 5,553.88 3,935.92 1,617.96
PHONE EQUIPMENT EQUIP0000000108-1 02 1 6,345.00 4,496.56 1,848.44
XEROX 5680 COPIER EQUIP0000000109-1 02 1 34,892.54 19,782.57 15,109.97
AT&T EQUIPMENT EQUIP0000000110-1 02 1 22,819.43 16,171.57 6,647.86
CMS UPGRADE EQUIP0000000111-1 02 1 31,826.13 22,554.40 9,271.73
COPIER EQUIP0000000112-1 02 1 10,631.59 6,027.63 4,603.96
KVA MATRIX EQUIP0000000000-1 02 1 2,713.81 1,923.21 790.60
TELE COMM EQUIP0000000114-1 02 1 2,886.81 1,636.67 1,250.14
CMS FORECASTING EQUIP0000000115-1 02 1 3,346.86 2,371.84 975.02
CMS TERMINAL EQUIP0000000116-1 02 1 3,395.56 2,406.37 989.19
CMS TERMINAL EQUIP00000001171 02 1 3,265.60 2,314.23 951.37
CMS TERMINAL EQUIP0000000118-1 02 1 3,265.60 2,314.23 951.37
8 PORT DIGITAL EQUIP0000000119-1 02 1 3,003.73 2,128.64 875.09
4 PORT VOICE CA EQUIP0000000120-1 02 1 925.00 655.55 269.45
4 PORT VOICE CA EQUIP0000000000-1 02 1 925.00 655.55 269.45
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
4 PORT VOICE CA EQUIP0000000122-1 02 1 925.00 655.55 269.45
4 PORT VOICE CA EQUIP0000000123-1 02 1 925.00 655.55 269.45
DIGITAL LINE CA EQUIP0000000124-1 02 1 949.22 538.17 411.05
PHONE EQUIP0000000125-1 02 1 881.74 499.89 381.85
DIGITAL LINE CIRC C EQUIP0000000126-1 02 1 949.21 601.58 347.63
DIGITAL LINE CIR C EQUIP0000000127-1 02 1 951.31 674.20 277.11
FAX MODEL 9300 EQUIP0000000128-1 02 1 1,141.43 647.13 494.30
FAX MODEL 9300 EQUIP0000000129-1 02 1 1,141.43 946.33 195.10
DIGITAL LINE CIRC C EQUIP0000000130-1 02 1 951.32 674.21 277.11
9300 FAX MACHINE EQUIP0000000131-1 02 1 1,017.87 577.11 440.76
TELEPHONE EQUIP0000000132-1 02 1 851.05 630.14 220.91
EQUIPMENT EQUIP0000000133-1 02 1 4,734.30 4,208.28 526.02
PHONE EQUIP EQUIP0000000134-1 02 1 1,102.25 949.17 153.08
PHONE EQUIPMENT EQUIP0000000135-1 02 1 3,082.00 2,653.94 428.06
COMPAQ PROSIGNA 200 PII 233 EQUIP0000000136-1 02 1 1,949.00 1,137.80 811.20
COMPAQ PROSIGNIA EQUIP0000000137-1 02 1 2,791.83 1,629.81 1,162.02
3 4550MB SEAGATE ULTRA SCSI EQUIP0000000138-1 02 1 2,038.53 1,190.06 848.47
CANON FAX ANNUAL BASE EQUIP0000000000-1 02 1 315.00 183.87 131.13
TOSHIBA TECRA 750CDM P233 MMX EQUIP0000000140-1 02 1 4,971.17 2,902.05 2,069.12
??? EQUIP0000000141-1 02 1 79.00 46.11 32.89
??? EQUIP0000000142-1 02 1 2,358.77 1,376.99 981.78
??? EQUIP0000000143-1 02 1 10,287.19 6,005.44 4,281.75
LJ31 ALL-IN-ONE COPIER/PRINTER/F EQUIP0000000144-1 02 1 641.89 67.20 574.69
HP LASERJET EQUIP0000000145-1 02 1 1,379.97 144.50 1,235.47
HP LASERJET 4050 N EQUIP0000000146-1 02 1 1,379.97 144.50 1,235.47
SMART ARRAY 3200 CONTOLLER EQUIP0000000000-1 02 1 1,970.10 206.30 1,763.80
Phones- Installation and Labor EQUIP0000000148-1 02 1 726.13 48.60 677.53
HP LASERJET/COLOR PRINTER/ZIP EQUIP0000000149-1 02 1 1,409.35 117.92 1,291.43
WAVE CAMERA EQUIP0000000150-1 02 1 975.00 81.56 893.44
MULTIMEDIA VIDEO KIT EQUIP0000000151-1 02 1 2,142.00 179.20 1,962.80
(3)CANON CFX L4000 FAX MACHINE EQUIP0000000152-3 02 1 2,942.25 246.12 2,696.13
TELEPHONE CABLING EQUIP0000000000-1 02 1 722.40 722.40 0.00
TELEPHONE UPGRADE EQUIP0000000155-1 02 1 1,636.42 1,636.42 0.00
CABLE&JACK FOR TELEPHONE EQUIP0000000156-1 02 1 568.05 568.05 0.00
COPY MACHINE EQUIP0000000157-1 02 1 734.99 734.99 0.00
ELE BILLING SYSTENS EQUIP0000000158-1 02 1 2,020.00 2,020.00 0.00
ENCORE H.R. & NETWORK EQUIP0000000159-1 02 1 1,575.00 1,575.00 0.00
MEDICAL MANAGER SYSTEM EQUIP0000000160-1 02 1 6,051.03 6,051.03 0.00
COPIER XXXXXX EQUIP0000000161-1 02 1 699.12 699.12 0.00
Phone Switch EQUIP0000000000-1 02 1 804.95 50.61 754.34
Medley model 64 Phone EQUIP0000000163-1 02 1 613.64 25.68 587.96
Wall Panel Installation FURN00000000030-1 02 1 4,052.46 4,052.46 0.00
Furniture Settlement FURN00000000031-1 02 1 145,610.04 63,145.40 82,464.64
Guest Chairs-Deliver & Install FURN00000000032-8 02 1 736.00 122.69 613.31
???? FURN00000000033-1 02 1 2,247.05 411.95 1,835.10
LARGE FURNITURE FURN00000000034-1 02 1 6,325.77 3,586.43 2,739.34
LARGE FURNITURE FURN00000000035-1 02 1 6,518.76 3,695.88 2,822.88
LARGE FURNITURE FURN00000000036-1 02 1 6,932.05 3,930.16 3,001.89
OFFICE FURNITURE FURN00000000037-1 02 1 57,066.64 32,354.35 24,712.29
LARGE FURNITURE FURN00000000038-1 02 1 94,955.71 53,835.85 41,119.86
CIRCUIT PACKS FURN00000000039-1 02 1 7,633.41 4,327.81 3,305.60
AIRCONDITIONER FURN00000000040-1 02 1 2,491.35 1,412.52 1,078.83
LARGE FURNITURE FURN00000000041-1 02 1 2,359.80 1,337.92 1,021.88
WALLPAPER & INSTALLATION FURN00000000042-1 02 1 621.00 52.00 569.00
CONSOLE FURN00000000043-1 02 1 870.90 493.76 377.14
LATERAL FILE,EXEC WRK CTR,EXEC C FURN00000000046-1 02 1 577.47 48.35 529.12
Visual board and video cabinet FURN00000000047-1 02 1 4,707.23 315.08 4,392.15
Glass Table Tops for Conference FURN00000000051-1 02 1 660.50 0.00 660.50
Leasehold Improvements LEASE0000000013-1 02 1 973.80 973.80 0.00
Telephone Improvement LEASE0000000000-1 02 1 1,690.65 1,268.29 422.36
Lease Hold LEASE0000000015-1 02 1 1,949.38 1,651.20 298.18
Lease Hold LEASE0000000016-1 02 1 1,050.00 878.29 171.71
Lease Hold LEASE0000000017-1 02 1 1,100.00 788.52 311.48
Lease Hold LEASE0000000018-1 02 1 5,325.00 3,817.09 1,507.91
Electrical Work LEASE0000000019-1 02 1 2,415.00 1,690.71 724.29
Telephone Cable LEASE0000000020-1 02 1 5,634.41 3,852.65 1,781.76
Electrical Sub Panel LEASE0000000021-1 02 1 1,850.00 1,264.98 585.02
LeaseHold Improvements LEASE0000000000-1 02 1 5,597.03 2,427.24 3,169.79
90% Payment of Contract LEASE0000000023-1 02 1 5,532.00 2,307.03 3,224.97
Site Inspections/Contract Quest. LEASE0000000024-1 02 1 371.39 148.56 222.83
Leasehold Improvement LEASE0000000025-1 02 1 7,491.00 2,996.40 4,494.60
Rewire Phones & Computers LEASE0000000026-1 02 1 2,500.00 958.36 1,541.64
Interior wall painting at 6705 R LEASE0000000027-1 02 1 4,225.00 212.40 4,012.60
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
LEASEHOLD IMPROVEMENTS LEASE0000000000-1 02 1 966.25 966.25 0.00
LEASEHOLD LEASE0000000031-1 02 1 951.00 951.00 0.00
DOUBLE WALL CONSTRUCTION IN HALL LEASE0000000032-1 02 1 381.22 381.22 0.00
SPACE PLANNING LEASE0000000033-1 02 1 422.05 422.05 0.00
Construction at Corporate Office LEASE0000000034-1 02 1 21,938.00 850.08 21,087.92
----- ------------- ------------- -------------
1,090 Assets 1,106 $4,868,908.67 $3,023,654.47 $1,845,254.20
===== ============= ============= =============
Ranges:
Asset ID: First to Last
Description: First to Last
Asset Type: First to Last Cost Basis: First to Last
Structure ID: First to Last Accum Depr: First to Last
Class ID: First to Last Net Book: First to Last
Location ID: 35 to 35 Amort Code: First to Last
Property Type: First to Last Pl in Svc Date: First to Last
Quantity: First to Last Acquire Date: First to Last
Sorted By: Asset ID
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
95 Ford Aerostar AUTO00000000001-1 35 1 10,857.94 4,483.05 6,374.89
HP-1170CXIHP COMP00000000001-4 35 1 2,806.86 1,093.11 1,713.75
HP-300HP Office Jet 300 COMP00000000002-11 35 1 4,983.14 1,940.61 3,042.53
HP Office Jet 600 COMP00000000003-4 35 1 1,738.32 579.46 1,158.86
APC UPS COMP00000000004-8 35 1 3,689.01 1,229.64 2,459.37
Viking Module COMP00000000005-2 35 1 464.00 154.69 309.31
Maxell DLT IV 20/40GB COMP00000000006-1 35 1 1,563.57 434.31 1,129.26
Computers & Accessories COMP00000000007-1 35 1 9,018.70 2,505.20 6,513.50
Multi-Server COMP00000000008-1 35 1 847.31 211.85 635.46
DeskPro Computers COMP00000000009-6 35 1 9,791.80 2,175.92 7,615.88
Computers & Accessories COMP00000000948-1 35 1 41,300.00 13,810.65 27,489.35
CPY Machine EQUIP0000000001-1 35 1 5,670.00 5,670.00 0.00
Cellphones EQUIP0000000002-1 35 1 3,980.00 1,162.47 2,817.53
Cellphones EQUIP0000000003-1 35 1 1,923.65 561.86 1,361.79
Phone System EQUIP0000000004-1 35 1 21,000.00 5,332.74 15,667.26
Phone System EQUIP0000000005-1 35 1 40,725.00 10,197.16 30,527.84
Phone System EQUIP0000000000-1 35 1 11,000.00 2,754.29 8,245.71
Phone System EQUIP0000000007-1 35 1 59,394.50 14,871.83 44,522.67
Telephone Equipment EQUIP0000000008-1 35 1 1,283.19 214.33 1,068.86
Air Conditioning Units EQUIP0000000009-5 35 1 8,700.00 1,453.08 7,246.92
Fax Machine EQUIP0000000010-1 35 1 1,835.00 306.47 1,528.53
HP ProCurve EQUIP0000000011-3 35 1 1,494.00 249.53 1,244.47
Electronic Scale EQUIP0000000098-1 35 1 652.00 81.54 570.46
PHONES- IDS/DIGITAL STATION CARD EQUIP0000000153-1 35 1 2,178.20 182.24 1,995.96
Laser Printer and Accessories EQUIP0000000165-1 35 1 4,177.75 1,311.12 2,866.63
Telephone Equipment EQUIP0000000166-1 35 1 10,824.00 2,715.24 8,108.76
Telephone Equipment EQUIP0000000167-1 35 1 4,099.20 1,028.34 3,070.86
Telephone Units (Qty 2) EQUIP0000000169-2 35 1 960.00 0.00 960.00
Office Supplies/ File Cabinets FURN00000000001-1 35 1 10,230.00 2,567.30 7,662.70
Cubicles & Chair Sets FURN00000000002-40 35 1 34,000.00 8,510.03 25,489.97
Cubicles & Chair Sets Assembly FURN00000000003-1 35 1 5,000.00 1,251.45 3,748.55
Chairs and Desks FURN00000000004-1 35 1 10,230.00 2,389.59 7,840.41
Air Conditioning Units FURN00000000005-2 35 1 2,800.00 607.46 2,192.54
Air Conditioning Units FURN00000000006-2 35 1 1,151.14 249.72 901.42
Air Conditioning Units FURN00000000007-2 35 1 1,439.45 312.30 1,127.15
Air Conditioning Units FURN00000000008-2 35 1 1,504.70 326.45 1,178.25
Air Conditioning Units FURN00000000009-2 35 1 1,300.00 260.30 1,039.70
Chairs FURN00000000010-1 35 1 2,147.00 394.08 1,752.92
Desk FURN00000000011-1 35 1 606.00 111.24 494.76
Office Furniture FURN00000000012-1 35 1 15,737.00 2,101.81 13,635.19
Additional Parts for Ext. Cubicl FURN00000000013-1 35 1 32,000.00 4,273.92 27,726.08
Office Tables and Chairs FURN00000000014-1 35 1 2,620.00 306.18 2,313.82
Executive Hi-Chair FURN00000000015-1 35 1 179.00 20.93 158.07
Office Chairs FURN00000000016-15 35 1 975.00 113.96 861.04
BOOKCASES FURN00000000044-1 35 1 653.00 54.70 598.30
Air Conditioner IS DEpt. FURN00000000045-1 35 1 2,900.00 242.85 2,657.15
CHAIRS FOR NARANJITO CLINIC FURN00000000048-1 35 1 800.00 53.56 746.44
REFRIGERATOR FURN00000000049-1 35 1 519.00 34.72 484.28
Office Furniture FURN00000000050-8 35 8 3,360.80 786.43 2,574.37
Leasehold Improvement LEASE0000000001-1 35 1 5,535.00 1,015.87 4,519.13
Leasehold Improvement LEASE0000000002-1 35 1 2,590.30 475.44 2,114.86
Leasehold Improvement LEASE0000000003-1 35 1 1,536.60 282.06 1,254.54
Hurricane Shutters LEASE0000000004-1 35 1 1,056.00 156.26 899.74
Construction of Bathroom LEASE0000000005-1 35 1 270.27 40.58 229.69
Office Space Remodeling LEASE0000000000-1 35 1 85,425.00 11,409.39 74,015.61
Additions to Phone System LEASE0000000007-1 35 1 14,825.00 1,976.64 12,848.36
De-Install/Re-Install Telephone LEASE0000000008-1 35 1 3,715.41 496.20 3,219.21
IMPROVEMENT TO OFFICES NARANJI LEASE0000000028-1 35 1 9,500.00 2,939.52 6,560.48
ADDITION COST REMODELING AT NARA LEASE0000000029-1 35 1 1,250.00 386.76 863.24
Construction at Hato Ray P.R. LEASE0000000035-1 35 1 875.00 50.85 824.15
Leasehold Improvement LEASE0000000036-2 35 2 3,500.00 471.68 3,028.32
Leasehold Improvement at Naranji LEASE0000000037-1 35 1 750.00 69.70 680.30
Leasehold Improvement at Naranji LEASE0000000038-1 35 1 601.55 55.90 545.65
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
Leasehold Improvement LEASE0000000039-1 35 1 0.00 0.00 0.00
---- ----------- ----------- -----------
64 Assets 72 $528,539.36 $121,506.56 $407,032.80
==== =========== =========== ===========
Ranges:
Asset ID: First to Last
Description: First to Last
Asset Type: First to Last Cost Basis: First to Last
Structure ID: First to Last Accum Depr: First to Last
Class ID: First to Last Net Book: First to Last
Location ID: 06 to 06 Amort Code: First to Last
Property Type: First to Last Pl in Svc Date: First to Last
Quantity: First to Last Acquire Date: First to Last
Sorted By: Asset ID
Description Asset ID Location ID Qty Cost Basis Accum Depr Net Book
------------------------------------------------------------------------------------------------------------------------------------
Computer COMP00000000010-1 06 1 5,241.26 5,241.26 0.00
Computer Software COMP00000000011-1 06 1 36,500.00 36,500.00 0.00
Computer Software COMP00000000012-1 06 1 40,000.00 40,000.00 0.00
Memory Upgrade COMP00000000013-1 06 1 4,650.83 4,650.83 0.00
Laser Jet Printer COMP00000000014-1 06 1 1,768.26 1,768.26 0.00
Computer COMP00000000015-1 06 1 2,090.38 2,036.78 53.60
Computers COMP00000000016-2 06 1 3,394.47 3,343.54 50.93
Computer 486 COMP00000000017-1 06 1 1,425.60 1,394.30 31.30
Computer 486 COMP00000000018-1 06 1 1,425.60 1,394.30 31.30
Computer 486 COMP00000000019-1 06 1 1,512.64 1,479.45 33.19
Computer COMP00000000020-1 06 1 1,570.84 1,516.07 54.77
Memory COMP00000000021-1 06 1 519.75 519.75 0.00
Memory COMP00000000022-1 06 1 2,042.24 2,042.24 0.00
Novell Upgrade Netware COMP00000000023-1 06 1 2,654.40 2,654.40 0.00
Computer COMP00000000024-1 06 1 9,564.45 9,564.45 0.00
Computer COMP00000000025-1 06 1 4,665.58 4,665.58 0.00
Computer COMP00000000026-1 06 1 6,782.96 6,782.96 0.00
Computer COMP00000000027-1 06 1 1,692.60 1,692.60 0.00
Software v6 COMP00000000028-1 06 1 1,509.00 1,509.00 0.00
Color Printer COMP00000000029-1 06 1 740.35 740.35 0.00
Computer and Ether Card COMP00000000946-1 06 1 1,602.92 134.49 1,468.43
LAP TOP-ACER AMERICA ALTOS SERVE COMP00000000951-1 06 1 1,131.00 126.24 1,004.76
A/P Trans Register EQUIP0000000012-1 06 1 3,139.25 3,139.25 0.00
Telephone Systems EQUIP0000000013-1 06 1 4,184.67 4,184.67 0.00
Telephone Systems EQUIP0000000000-1 06 1 5,931.29 5,931.29 0.00
Button Display EQUIP0000000015-1 06 1 3,794.16 3,794.16 0.00
Telrad Digital 128 EQUIP0000000016-1 06 1 5,710.19 5,710.19 0.00
Telephone Systems EQUIP0000000017-1 06 1 833.53 781.47 52.06
Equipment EQUIP0000000018-1 06 1 936.56 936.56 0.00
Fax Machine EQUIP0000000019-1 06 1 440.77 440.77 0.00
Telephone System EQUIP0000000020-1 06 1 2,170.34 2,137.77 32.57
Software & Network EQUIP0000000021-1 06 1 1,051.65 1,028.60 23.05
Laser Jet 4p EQUIP0000000000-1 06 1 930.19 909.80 20.39
Cable Install EQUIP0000000023-1 06 1 4,877.11 4,572.32 304.79
Cable EQUIP0000000024-1 06 1 570.00 487.26 82.74
Cat. Cables and Port Patch EQUIP0000000025-5 06 1 3,572.25 1,936.43 1,635.82
Telephone Equipment EQUIP0000000168-1 06 1 2,539.20 53.30 2,485.90
Record Assets FURN00000000017-1 06 1 2,429.00 2,429.00 0.00
Refrigerator FURN00000000018-1 06 1 510.94 408.92 102.02
Art Printing FURN00000000019-1 06 1 952.60 762.38 190.22
Conference Tables & Chairs FURN00000000020-1 06 1 2,056.75 1,577.41 479.34
Fabricate & Install FURN00000000021-1 06 1 1,639.99 1,257.79 382.20
Furniture FURN00000000022-1 06 1 1,020.00 853.18 166.82
Furniture FURN00000000023-1 06 1 910.08 761.24 148.84
Panel System FURN00000000024-1 06 1 832.96 688.33 144.63
Furniture FURN00000000025-1 06 1 1,866.90 1,214.22 652.68
Wall to Ceiling Unitized Wall Sy FURN00000000026-1 06 1 25,153.72 15,100.01 10,053.71
APS Staff Furniture at CHS FURN00000000027-1 06 1 16,499.47 9,628.67 6,870.80
Furniture FURN00000000028-1 06 1 3,757.68 2,067.58 1,690.10
Shelves FURN00000000029-1 06 1 1,813.19 997.68 815.51
Lease Hold LEASE0000000009-1 06 1 2,298.72 1,686.27 612.45
Lease Hold LEASE0000000010-1 06 1 1,190.75 774.51 416.24
Leasehold Improvements LEASE0000000011-1 06 1 2,128.00 887.46 1,240.54
Leasehold Improvements LEASE0000000012-1 06 1 713.07 297.36 415.71
---- ----------- ----------- ----------
54 Assets 54 $238,940.11 $207,192.70 $31,747.41
==== =========== =========== ==========
AZCARE ASSETS
Accum. Net Depr.
Acquisition Asset Depr. Asset Expense
Description M L Date 06/30/99 12/31/99 Value 1/1-12/31
2 Hon Side Chair SL 7 08/01/94 190.00 146.96 43.04 27.12
5 Office Chairs SL 7 08/01/94 475.00 367.42 107.58 67.80
Hon Armless Task Chair SL 7 08/01/94 169.95 131.41 38.54 24.24
21x25 Oak End Table SL 7 08/01/94 89.95 69.58 20.37 12.84
8 Hon Arm Chair SL 7 08/01/94 760.00 588.17 171.83 108.60
8' Table Top SL 7 08/01/94 349.00 269.92 79.08 49.80
High Back Swivel Chair SL 7 08/01/94 169.95 131.41 38.54 24.24
30x60 Drop Desk SL 7 08/01/94 349.00 269.92 79.08 49.80
36x72 Desk SL 7 08/01/94 299.00 231.38 67.62 42.72
20x72 Credenza SL 7 08/01/94 299.00 231.39 67.61 42.72
20x42 Pedestal Desk SL 7 08/01/94 119.00 92.24 26.76 17.04
Maverick Keyboard SL 7 08/01/94 39.00 29.98 9.02 5.52
Upholstered Loveseat SL 7 08/01/94 399.00 308.76 90.24 57.00
2 - 486 Computers SL 5 7/18/1994 10,222.78 10,222.78 - -
2 Computers SL 5 10/1/1995 5,137.44 4,366.69 770.75 770.75
Phone System SL 5 10/4/1995 4,049.92 3,374.98 674.94 674.94
------------------------------------------------
23,117.99 20,832.99 2,285.00 1,975.13
Schedule of Fixed Asset Purchases
Jan 00 to July 00
Asset Date Purchased Location Dept Amt
---------------------------------------------------------------------------------------------------------
Gateway E3200-500 PC 1/18/2000 Missoula RES 2,622.00
Gateway E1400-433 PC 1/21/2000 Missoula ICM 1,253.00
2 Cisco ethernet routers 1/24/2000 Missoula INF 13,152.97
HP DLT-718 tape drive, software 1/31/2000 Missoula INF 12,868.00
2 Compaq laptops 1/31/2000 Missoula INF 3,999.98
HP paper pick up assembly for 8500 printer 2/1/2000 Missoula OVE 902.50
6 Gateway E1400-433 PCs 2/21/2000 Missoula PRO 5,586.2 purchased for temps
HP Netserver Fileserver 2/29/2000 Missoula PRO 6,150.00
Gateway E1400-433 PC 3/9/2000 Missoula OVE 988.00
Gateway E1400-433 PC 3/17/2000 Missoula PMS 1,413.50
Gateway E1400-433 PC 3/17/2000 Helena PMS 1,413.50
Toshiba laptop 3/23/2000 Lewiston MKT 1,380.00
Toshiba laptop 3/23/2000 Boise MKT 1,380.00
Toshiba laptop 3/23/2000 Spokane MKT 1,380.00
Toshiba laptop 3/23/2000 Lynnwood MKT 1,380.00
Toshiba laptop 3/23/2000 Xxxxxx MKT 1,380.00
Toshiba laptop 3/23/2000 Xxxxxx MKT 1,380.00
Toshiba laptop 3/23/2000 Fargo MKT 1,380.00
Toshiba laptop 3/23/2000 Bismarck MKT 1,380.00
Toshiba laptop 3/23/2000 Helena MKT 1,380.00
Toshiba laptop 3/23/2000 Missoula MKT 1,380.00
Toshiba laptop 3/23/2000 Missoula MKT 1,380.00
Graphite computer desk 3/28/2000 Helena INF 574.96
Cisco Routers/Network Modules 4/21/2000 Missoula OVE 13,650.00
Gateway E1400-433 PC 4/24/2000 Helena EAP 898.00
HP Laserjet fax/scanner/copier 4/26/2000 Helena PSY 549.99
Gateway E-1400-433 PC 5/19/2000 Xxxxxxxx XXX 898.00
Gateway E-3200-550 PC 5/22/2000 Helena INF 1,842.00
Gateway E-1400-433 PC 5/25/2000 Missoula MKT 904.00
Gateway E-1400-433 PC 5/27/2000 Missoula INF 924.00
Gateway E-1400-433 PC 5/27/2000 Missoula INF 924.00
Lucent 8434DX Phone 6/1/2000 Missoula PSY 1,066.50
Lucent 8434DX Phone 6/1/2000 Missoula PSY 1,066.50
Toshiba laptop 2180CDT 6/1/2000 Xxxxxx MKT 1,142.35
Toshiba laptop 2180CDT 6/1/2000 AzCare EAP 1,142.35
LCD Projector 6/6/2000 Xxxxxx MKT 3,109.24
Gateway E1400-500 6/26/2000 Billings ICM 823.00
LH4 Server 6/30/2000 Missoula EAP 21,923.00
Gateway E-1400-433 PC 7/31/2000 Missoula PSY 998.50
Gateway E-1400-433 PC 7/31/2000 Missoula PSY 998.50
TOTAL $118,964.46
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Report Totals By Location
Sec179 Prior Yr Current Annual Depr
Loc Description Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
BISM Bismarck, ND 19,673 0 5,278 4,602 9,793 867
BLGS Billings, MT 52,360 0 31,766 8,825 11,769 000
XXXXX Xxxxx, XX 65,976 0 48,327 7,484 10,165 565
XXXX Bozeman, MT 4,175 0 2,796 552 827 46
BUTTE Butte, MT 9,755 0 9,490 000 000 0
XXXXX Xxxxx, XX 1,219 0 609 174 436 9
FARGO Fargo, ND 119,333 0 95,556 9,128 14,649 000
XXXXX Xxxxx Xxxxx, XX 1,417 0 202 347 868 28
GRTFA Great Falls, MT 12,549 0 9,670 1,151 1,728 95
HEL Helena, MT 190,753 0 61,445 22,142 107,166 1,775
KAL Kalispell, MT 26,076 0 23,260 1,702 1,114 000
XXX Xxxxxxxx, XX 58,626 0 9,683 7,219 41,724 000
XXXX Xxxxxxxx, XX 119,419 0 87,089 11,991 20,339 000
XXXX Xxxxx Xxxx, XX 00000 0 10,845 8,913 24,805 769
MINOT Minot, ND 1,585 0 1,110 317 158 31
MSLA Missoula, MT 1,405,821 0 567,656 334,926 503,239 30,768
XXXX Murray, UT 66,564 0 44,087 10,006 12,471 000
XXXXX Xxxxx, XX 7,437 0 5,638 1,046 000 00
XXXXX Xxxxx, XX 7,478 0 6,230 831 417 72
RES Resource Center 22,919 0 14,807 3,374 4,738 000
XXXXX Xx. Xxxxxx, XX 532 0 477 55 0 0
SPOK Spokane, WA 25,514 0 13,340 5,486 6,688 000
XXX Xxxx Xxxxxx Xxxx, XX 3,175 0 2,045 621 509 49
========= ==== ========= ======= ======= ====== ===
** Report Totals *** 2,249,061 0 1,051,406 440,998 774,515 40,078
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Bismarck, ND
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00632 Minolta EP2010 Copier 11/18/99 MACRS 5 5,774 0 0 1,155 4,619 577
------ --- ----- ----- ----- ---
35 - FURNITURE & EQUIPMENT 5,774 0 0 1,155 4,619 577
00305 Gateway P5-166 09/01/96 S/L 5 2,914 0 1,457 583 874 44
00375 Xxxxxxx X0-000 PC 04/22/97 MACRS 5 5 1,001 0 725 350 526 31
00428 Toshiba 430 CDT Laptops 07/31/97 MACRS 5 5 1,810 0 730 432 648 36
00441 XX0-000 XXXXXXX COMPUTER 09/16/97 MACRS 5 5 1,209 0 629 232 348 23
00458 XXXXXXX XXXX XXXXX 00/00/00 XXXXX 0 0 1,450 0 754 278 418 25
00488 HP LaserJet 4000 printer 03/27/98 MACRS 5 5 1,170 0 234 374 562 33
------ --- ----- ----- ----- ---
40 - COMPUTERS/PRINTERS/WIRING 10,154 0 4,529 2,249 3,376 192
00533 Sharp data projector 12/11/98 MACRS 5 5 3,745 0 749 1,198 1,798 98
------ --- ----- ----- ----- ---
60 - Video/Photo Equipment 3,745 0 749 1,198 1,798 98
====== === ===== ===== ===== ===
LOCATION BISM TOTAL 19,673 0 5,278 4,602 9,793 867
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Billings, MT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00011 Phone system 06/30/95 S/L 6 7,840 0 4,574 1,307 1,959 108
00017 Xxxxxx Tape backup/adapt 12/01/95 S/L 5 736 0 515 000 00 00
00020 PHONE SYSTEM-BILLINGS 11/09/90 S/L 10 1,954 0 1,571 195 188 19
00021 PHONES 08/25/92 S/L 6 2,838 0 2,838 0 0 0
00051 FAX-BILLINGS 01/01/89 MACRS 5 5 1,460 0 1,460 0 0 0
00060 FAX - MILES CITY 06/18/91 S/L 5 700 0 700 0 0 0
00068 RICOH 2500L FAX-BILLINGS 03/31/94 S/L 5 1,971 0 1,773 198 0 0
00116 Fax Machine-Brother 02/01/96 S/L 5 900 0 450 180 270 15
00522 frame relay hardware 05/01/98 MACRS 5 5 3,895 0 779 1,246 1,870 102
------ --- ----- ----- ----- ---
15 - FAX MACHINES/PHONES 22,294 0 14,660 3,273 4,361 259
00007 NT server software 12/01/95 S/L 3 619 0 619 0 0 0
00022 NETWORK SOFTWARE-BILLING 10/01/94 S/L 5 610 0 549 61 0 0
------ --- ----- ----- ----- ---
20 - SOFTWARE 1,229 0 1,168 61 0 0
00020 TRANSCRIBER 07/31/87 S/L 7 499 0 499 0 0 0
00021 SHREDDER 12/10/92 S/L 6 898 0 898 0 0 0
00022 TYPEWRITER 10/07/87 MACRS 7 7 745 0 745 0 0 0
00023 CREDENZA 11/01/90 S/L 10 383 0 307 38 38 5
00024 DESK 10/12/87 MACRS 7 7 478 0 478 0 0 0
00025 TRANSCRIBER 11/11/87 MACRS 7 7 549 0 549 0 0 0
00528 Xxxxxxx exec chair 10/27/98 MACRS 5 5 539 0 108 172 259 18
------ --- ----- ----- ----- ---
35 - FURNITURE & EQUIPMENT 4,091 0 3,584 210 297 23
00031 Toshiba laptop 11/01/96 S/L 5 1,400 0 700 280 420 27
00165 NETWORK WIRING-BILLINGS 10/01/94 S/L 5 968 0 873 95 0 0
00194 486 computer 06/30/95 S/L 5 1,585 0 1,110 317 158 31
00218 Gateway Pentium w/CD Rom 12/01/95 S/L 5 2,244 0 1,571 449 224 42
00226 Gateway 486DX2 12/01/95 S/L 5 951 0 665 190 96 14
00239 Gateway 486DX2/17" monit 12/01/95 S/L 5 1,425 0 998 285 142 21
00248 HP4 Plus Laser Printer 04/01/96 S/L 5 1,457 0 728 291 438 27
00294 Xxxxxxx X0-000 08/01/96 S/L 5 1,629 0 815 326 488 29
00297 Network Hub - 24 port 08/01/96 S/L 5 860 0 430 172 258 18
00315 Xxxxxxx X0-000 08/01/96 S/L 5 1,810 0 905 362 543 32
00316 Xxxxxxx X0-000 08/01/96 S/L 5 1,810 0 905 362 543 32
00317 Xxxxxxx X0-000 08/01/96 S/L 5 1,810 0 905 362 543 32
00418 GP5-166 to Xx. Xxxxxxx 11/26/97 MACRS 5 5 1,698 0 883 326 489 29
00445 XX0-000 XXXXXXX COMPUTER 09/16/97 MACRS 5 5 1,209 0 629 232 348 23
00448 CRYSTAL SCAN 17" MONITOR 09/19/97 MACRS 5 5 455 0 237 87 131 10
00583 Gateway E1200C computer 06/25/99 MACRS 3 3 837 0 0 279 558 39
00584 Gateway E1200C computer 06/25/99 MACRS 3 3 837 0 0 279 558 39
00585 Gateway E1200C computer 06/25/99 MACRS 3 3 837 0 0 279 558 39
00000 Xxxxxxx X0000 500 comput 09/22/99 MACRS 3 3 924 0 0 308 616 77
------ --- ----- ----- ----- ---
40 - COMPUTERS/PRINTERS/WIRING 24,746 0 12,354 5,281 7,111 561
====== === ===== ===== ===== ===
LOCATION BLGS TOTAL 52,360 0 31,766 8,825 11,769 843
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Boise, ID
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00007 Additional phones 05/31/95 S/L 6 790 0 462 132 196 11
00018 Xxxxxx tape backup/adapt 12/01/95 S/L 5 735 0 515 147 73 15
00022 UPGRADE PHONE SYS 11/16/93 S/L 6 2,215 0 2,030 185 0 0
00023 PHONES 08/18/92 S/L 6 1,464 0 1,464 0 0 0
00052 RICOH FAX 2500-BOISE 09/08/93 S/L 5 1,971 0 1,971 0 0 0
00070 FAX-RICHFIELD 06/01/94 S/L 5 532 0 477 55 0 0
00571 Brother4450 fax/copy/prn 02/02/99 MACRS 5 5 544 0 0 109 435 9
------ --- ----- ----- ----- ---
15 - FAX MACHINES/PHONES 8,251 0 6,919 628 704 35
00006 Systat Software 11/30/95 S/L 3 910 0 910 0 0 0
00008 NT server software 12/01/95 S/L 3 619 0 619 0 0 0
------ --- ----- ----- ----- ---
20 - SOFTWARE 1,529 0 1,529 0 0 0
00027 2 DESKS, 1 CREDENZA 08/25/92 S/L 7 1,950 0 1,813 137 0 0
00028 VCR/MONITOR 08/09/93 S/L 7 619 0 484 88 47 11
00029 STORAGE CREDENZA 12/06/93 S/L 7 709 0 556 101 52 13
00031 BLINDS 10/16/92 S/L 7 546 0 507 39 0 0
00032 EXEC DESK & RETURN 12/06/93 S/L 7 1,024
0 803 146 75 14
00033 DESK 12/22/92 S/L 7 682 0 632 50 0 6
00034 SOFAS 10/16/92 S/L 7 1,682 0 1,561 121 0 0
00035 COPIER 08/25/92 S/L 6 4,439 0 4,439 0 0 0
00036 RECEPTION DESK 07/22/92 S/L 7 1,584 0 1,470 114 0 0
00038 UPGRADE PHONE SYS 07/30/93 S/L 6 1,409 0 1,275 134 0 0
00039 POWERSHRED 150-BOISE 12/08/93 S/L 6 590 0 540 50 0 0
00040 2 EXEC DESKS 12/06/93 S/L 7 1,365 0 1,073 195 97 19
00089 EXEC DESK-NAMPA 04/09/93 S/L 7 824 0 649 118 57 8
00175 Conference tbl, 8 chairs 05/31/95 S/L 7 1,437 0 718 205 514 18
00180 Oak executive desk 06/30/95 S/L 7 829 0 413 118 298 8
00181 Oak credenza 06/30/95 S/L 7 902 0 451 129 322 8
00184 Oak credenza & tray 06/30/95 S/L 7 861 0 430 123 308 13
00209 Desk 05/01/96 S/L 7 735 0 263 105 367 6
00236 Display Unit w/lights 09/01/96 S/L 7 1,197 0 427 171 599 17
00240 Projector w/case 08/01/96 S/L 7 4,190 0 1,497 599 2,094 49
------ --- ----- ----- ----- ---
35 - FURNITURE & EQUIPMENT 27,574 0 20,001 2,743 4,830 190
00033 Toshiba laptop 11/01/96 S/L 5 1,400 0 700 280 420 27
00045 Xxxxxxx X0-000 11/01/96 S/L 5 1,810 0 905 362 543 32
00075 DELL 486-BOISE 11/18/93 S/L 5 3,492 0 3,492 0 0 0
00078 HPIII LASER-BOISE 08/08/92 S/L 5 1,500 0 1,500 0 0 0
00080 DELL 486 COMPUTER-BOISE 08/16/93 S/L 5 2,188 0 2,188 0 0 0
00082 HP 4L LASER PRINTER-BOIS 12/06/93 S/L 5 741 0 741 0 0 0
00206 Toshiba laptop w/case 12/01/95 S/L 5 2,623 0 1,837 525 261 41
00217 Gateway Pentium w/CD Rom 12/01/95 S/L 5 2,244 0 1,571 449 224 42
00219 Toshiba laptop 12/01/95 5/L 5 2,811 0 1,967 562 282 45
00270 P5-75 Workstation 05/01/96 5/L 5 1,776 0 888 355 533 25
00296 Xxxxxxx X0-000 08/01/96 S/L 5 1,594 0 797 319 478 22
00302 Toshiba Laptop 09/01/96 S/L 5 1,500 0 750 300 450 25
00321 P133 3GB CrystalScan 17" 01/17/97 MACRS 5 5 1,717 0 865 341 511 33
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Boise, ID
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00411 HP Deskjet 1600C 09/24/97 MACRS 5 5 1,416 0 736 272 408 19
00427 Toshiba 430 CDT Laptops 07/31/97 MACRS 5 5 1,810 0 941 348 521 29
------ --- ----- ----- ----- ---
40 - COMPUTERS/PRINTERS/WIRING 28,622 0 19,878 4,113 4,631 340
====== === ===== ===== ===== ===
LOCATION BOISE TOTAL 65,976 0 48,327 7,484 10,165 565
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Bozeman, MT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00053 FAX-BOZEMAN 12/14/90 S/L 5 699 0 699 0 0 0
00113 Fax Machine - Brother 02/01/96 S/L 5 900 0 450 180 270 15
------ --- ----- ----- ----- ---
15 - FAX MACHINES/PHONES 1,599 0 1,149 180 270 15
00041 SHREDDER 12/10/92 S/L 6 559 0 559 0 0 0
00118 DESK AND RETURN-BOZEMAN 08/01/94 S/L 7 550 0 355 79 116 2
------ --- ----- ----- ----- ---
35 - FURNITURE & EQUIPMENT 1,109 0 914 79 116 2
00247 Toshiba Laptop-VR Bozema 04/01/96 S/L 5 1,467 0 733 293 441 29
------ --- ----- ----- ----- ---
40 - COMPUTERS/PRINTERS/WIRING 1,467 0 733 293 441 29
====== === ===== ===== ===== ===
LOCATION XXXX TOTAL 4,175 0 2,796 552 827 46
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Butte, MT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00024 PHONES 08/25/92 S/L 6 1,600 0 1,600 0 0 0
00025 PHONE SYSTEM-BUTTE 10/22/87 MACRS 7 7 970 0 970 0 0 0
00026 PHONE SYSTEM 05/05/87 MACRS 7 7 900 0 900 0 0 0
00054 FAX 12/14/90 S/L 5 699 0 699 0 0 0
00082 Fax Machine 10/01/96 S/L 5 530 0 265 106 159 7
------ --- ----- ----- ----- ---
15 - FAX MACHINES/PHONES 4,699 0 4,434 106 159 7
00006 MITA COPIER 05/17/91 S/L 5 795 0 795 0 0 0
00045 COPIER 10/27/87 MACRS 7 7 995 0 995 0 0 0
00046 OFFICE FURN 05/19/87 MACRS 7 7 350 0 350 0 0 0
00047 DESK 03/17/87 MACRS 7 7 319 0 319 0 0 0
00048 BLINDS 02/01/89 MACRS 7 7 574 0 574 0 0 0
00049 SHREDDER 12/10/92 S/L 6 559 0 559 0 0 0
00050 DESK 04/08/88 MACRS 7 7 350 0 350 0 0 0
------ --- ----- ----- ----- ---
35 - FURNITURE & EQUIPMENT 3,942 0 3,942 0 0 0
00000 XXXXXX LASER 05/19/92 S/L 5 1,114 0 1,114 0 0 0
------ --- ----- ----- ----- ---
40 - COMPUTERS/PRINTERS/WIRING 1,114 0 1,114 0 0 0
====== === ===== ===== ===== ===
LOCATION BUTTE TOTAL 9,755 0 9,490 106 159 7
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Delta, UT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00186 Office furniture 07/31/95 S/L 7 1,219 0 609 174 436 9
------ --- ----- ----- ----- ---
35 - FURNITURE & EQUIPMENT 1,219 0 609 174 436 9
====== === ===== ===== ===== ===
LOCATION DELTA TOTAL 1,219 0 609 174 436 9
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Fargo, ND
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00084 Phone system 06/30/85 ACRS 5 5 3,025 0 3,025 0 0 0
00085 Telephone System 06/04/93 MACRS 7 7 2,665 0 2,665 0 0 0
------- --- ------ ----- ------ ---
00326 Nitsuko Voicemail System 05/28/97 MACRS 7 7 1,850 0 717 000 000 00
15 - FAX MACHINES/PHONES 7,540 0 6,407 324 809 27
00002 Improvements - Architect 06/30/85 S/L 18 922 0 686 51 185 7
00003 Improvements - Electrica 06/30/85 S/L 18 1,865 0 1,390 104 371 5
00004 Improvements - Walls 06/30/85 S/L 18 1,121 0 833 62 226 7
00005 Improvements - Wallpaper 06/30/85 S/L 18 659 0 493 37 129 4
00006 Improvements - Cupboards 06/30/85 S/L 18 900 0 670 50 180 6
------- --- ------ ----- ------ ---
31 - LEASEHOLD IMPROVEMENTS 5,467 0 4,072 304 1,091 29
00125 Desks & Credenzas 06/30/85 ACRS 5 5 4,296 0 4,296 0 0 0
00126 Vertical Blinds 06/30/85 ACRS 5 5 565 0 565 0 0 0
00127 Chairs, Loveseat, Bookca 06/30/85 ACRS 5 5 6,507 0 6,507 0 0 0
00128 Conference Table 06/30/85 ACRS 5 5 932 0 932 0 0 0
00129 Plum & Rot Patcraft Carp 06/30/85 ACRS 5 5 1,752 0 1,752 0 0 0
00130 Pictures 06/30/85 ACRS 5 5 838 0 838 0 0 0
00131 Prairie Rose Carpet 06/30/85 ACRS 5 5 774 0 774 0 0 0
00132 Air Conditioner 06/30/85 ACRS 5 5 1,773 0 1,773 0 0 0
00133 Chairs 06/30/85 ACRS 5 5 322 0 322 0 0 0
00134 Microwave/Refrigerator 06/30/85 ACRS 5 5 364 0 364 0 0 0
00135 Transcriber 06/30/85 ACRS 5 5 471 0 471 0 0 0
00136 Computer Stand 06/30/85 ACRS 5 5 151 0 151 0 0 0
00137 Typewriter & Interface 06/30/85 ACRS 5 5 1,190 0 1,190 0 0 0
00138 Filing cabinet 06/30/85 ACRS 5 5 146 0 146 0 0 0
00139 Desk 06/30/85 ACRS 5 5 933 0 933 0 0 0
00141 Carpet & Vinyl 06/30/85 ACRS 5 5 2,991 0 2,991 0 0 0
00142 Cupboards 09/12/85 ACRS 5 5 600 0 600 0 0 0
00143 Film 06/30/85 ACRS 5 5 605 0 605 0 0 0
00144 Overhead Projector 04/26/88 MACRS 7 7 449 0 449 0 0 0
00145 Fax & Copier 12/31/90 MACRS 5 5 3,823 0 3,823 0 0 0
00146 VCR & TV 12/31/90 MACRS 5 5 418 0 418 0 0 0
00147 Table 12/31/90 MACRS 7 7 208 0 208 0 0 0
00150 Files 01/31/91 MACRS 7 7 1,074 0 1,074 0 0 0
00151 Office Furniture 07/11/91 MACRS 7 7 1,652 0 1,652 0 0 0
00155 Office Furniture 12/10/92 MACRS 7 7 1,776 0 1,776 0 0 0
00158 Shelves 11/01/93 MACRS 7 7 373 0 373 0 0 0
00159 Desk/file/chairs/table 02/01/94 MACRS 7 7 2,277 0 2,277 0 0 0
00160 Cabinets/countertop/sink 04/26/94 MACRS 7 7 1,136 0 1,136 0 0 0
00161 Files 05/25/94 MACRS 7 7 2,035 0 2,035 0 0 0
00195 Carpet 08/31/94 MACRS 7 7 2,565 0 2,565 0 0 0
00196 Desk (Xxxxx) 08/31/94 MACRS 7 7 678 0 678 0 0 0
00197 Copier 09/09/94 MACRS 7 7 5,800 0 5,800 0 0 0
00198 Window Shades 09/27/94 MACRS 7 7 284 0 284 0 0 0
00199 Furniture 12/31/95 MACRS 7 7 2,160 0 2,160 0 0 0
00213 Office Furniture 10/06/96 MACRS 7 7 509 0 509 0 0 0
00396 Brother EM-605 Typewrite 11/29/89 MACRS 7 7 426 0 426 0 0 0
00397 Drapes 11/30/90 MACRS 7 7 362 0 362 0 0 0
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Fargo, ND
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00398 Furniture 10/31/90 MACRS 7 7 1,000 0 1,000 0 0 0
00399 2 Chairs, Tables, Lamps 12/31/90 MACRS 7 7 2,677 0 2,677 0 0 0
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 56,892 0 56,892 0 0 0
00376 Superstack II Hub 10 04/02/97 MACRS 5 5 893 0 420 189 284 13
00377 Amorphous Silicon Proj 04/02/97 MACRS 5 5 3,850 0 1,810 816 1,224 68
00378 Ethernet Modem 5 Pack 04/02/97 MACRS 5 5 1,350 0 635 286 429 22
00379 Ultra Barracuda 7200RPM 04/02/97 MACRS 5 5 840 0 395 178 267 13
00380 Gateway P5 - 133 Pentium P 04/02/97 MACRS 5 5 1,808 0 849 384 575 32
00381 Gateway P5 - 133 Pentium P 04/02/97 MACRS 5 5 1,808 0 849 384 575 32
00382 Gateway P5 - 133 Pentium P 04/02/97 MACRS 5 5 1,808 0 849 384 575 32
00383 Gateway P5 - 133 Pentium P 04/02/97 MACRS 5 5 1,808 0 849 384 575 32
00384 HP 1600C Deskjet Printer 04/02/97 MACRS 5 5 1,299 0 611 275 413 22
00385 Toshiba 155CS Laptop 03/27/97 MACRS 5 5 1,332 0 626 282 424 18
00386 Toshiba 155CS Laptop 03/27/97 MACRS 5 5 1,332 0 626 282 424 18
00387 Toshiba 155CS Laptop 03/27/97 MACRS 5 5 1,332 0 626 282 424 18
00390 Gateway P5 - 166 Prof PC 04/02/97 MACRS 5 5 2,064 0 970 438 656 31
00391 Copier & Stand 06/30/85 ACRS 5 5 1,679 0 1,679 0 0 0
00395 Printer 06/06/89 MACRS 5 5 501 0 501 0 0 0
00396 Computer Desk & Shelves 12/31/90 MACRS 7 7 1,959 0 1,959 0 0 0
00399 Printer 07/07/92 MACRS 5 5 530 0 530 0 0 0
00402 Gateway 2000 Computer 04/10/96 MACRS 5 5 2,741 0 2,741 0 0 0
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 28,934 0 17,525 4,564 6,845 351
00004 1997 Pontiac Grd Prix SE 07/01/97 MACRS 5 5 20,500 0 10,660 3,936 5,904 328
------- --- ------ ----- ------ ---
45 - VEHICLES 20,500 0 10,660 3,936 5,904 328
======= === ====== ===== ====== ===
LOCATION FARGO TOTAL 119,333 0 95,556 9,128 14,649 735
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Grand Forks, ND
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00559 2 Solid core doors 06/05/98 MACRS 7 7 1,417 0 202 347 868 28
------- --- ------ ----- ------ ---
31 - LEASEHOLD IMPROVEMENTS 1,417 0 202 347 868 28
======= === ====== ===== ====== ===
LOCATION GNDFO TOTAL 1,417 0 202 347 868 28
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxx Xxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00027 TEL PLUS PHONES 07/31/87 MACRS 7 7 2,887 0 2,887 0 0 0
00028 PHONE SYSTEM 04/24/87 MACRS 7 7 962 0 962 0 0 0
00055 FAX 09/01/89 MACRS 5 5 1,290 0 1,290 0 0 0
00056 FAX-HAVRE 11/23/90 S/L 5 749 0 749 0 0 0
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 5,888 0 5,888 0 0 0
00051 2 DESKS 11/02/87 MACRS 7 7 525 0 525 0 0 0
00052 DESK 05/24/87 MACRS 7 7 274 0 274 0 0 0
00054 CHAIR 11/02/87 MACRS 7 7 206 0 206 0 0 0
00055 POSTAGE SCALE 11/27/87 MACRS 7 7 275 0 275 0 0 0
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 1,280 0 1,280 0 0 0
00246 Toshiba Laptop-VR GrtFal 04/01/96 S/L 5 1,467 0 733 293 441 29
00263 Toshiba 486 Laptop-VR-GF 05/01/96 S/L 5 1,475 0 738 295 442 20
00318 Gateway P5 - 133 08/01/96 S/L 5 1,810 0 905 362 543 32
00530 LaserJet 4 printer 11/10/98 MACRS 5 5 629 0 126 201 302 14
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 5,381 0 2,502 1,151 1,728 95
======= === ====== ===== ====== ===
LOCATION GRTFA TOTAL 12,549 0 9,670 1,151 1,728 95
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Helena, MT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00029 PHONE SYSTEM 08/01/89 MACRS 7 7 750 0 750 0 0 0
00057 FAX 01/01/89 MACRS 5 5 1,460 0 1,460 0 0 0
00072 RICOH 2500 FAX-HELENA 07/01/94 S/L 5 1,986 0 1,787 199 0 0
00073 SAVIN FAX-HELENA 11/01/94 S/L 2 342 0 342 0 0 0
00120 Phone Wiring 07/01/96 S/L 6 5,380 0 2,242 897 2,241 72
00323 Richo Fax 2400L 02/19/97 MACRS15 15 2,495 0 653 184 1,658 19
00324 Handset Type 100 02/19/97 MACRS 5 5 60 0 29 12 19 1
00523 frame relay hardware 05/01/98 MACRS 5 5 3,614 0 723 1,156 1,735 100
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 16,087 0 7,986 2,448 5,653 192
00028 Attachmate Software-netw 05/01/96 S/L 3 3,654 0 3,045 609 0 0
00029 Windows NT Server/20 Lic 05/01/96 S/L 3 1,108 0 923 185 0 0
------- --- ------ ----- ------ ---
20 - SOFTWARE 4,762 0 3,968 794 0 0
00001 Leasehold Improvements 07/01/96 S/L 28 90,538 0 8,078 3,234 79,226 264
------- --- ------ ----- ------ ---
31 - LEASEHOLD IMPROVEMENTS 90,538 0 8,078 3,234 79,226 264
00019 SAVIN COPIER 10/10/91 S/L 5 4,500 0 4,500 0 0 0
00057 TYPEWRITER 12/15/87 MACRS 7 7 449 0 449 0 0 0
00058 TRANSCRIBER 11/13/87 MACRS 7 7 330 0 330 0 0 0
00059 TRANSCRIBER 10/07/87 MACRS 7 7 319 0 319 0 0 0
00060 CHAIR 10/22/87 MACRS 7 7 317 0 317 0 0 0
00149 OAK DESK AND RETURN-HELE 11/01/94 S/L 2 325 0 325 0 0 0
00152 5 DRAWER LATERAL-HELENA 11/01/94 S/L 3 442 0 442 0 0 0
00153 5 DRAWER LATERAL-HELENA 11/01/94 S/L 3 478 0 478 0 0 0
00154 RECORDER DICTAPHONE-HELE 11/01/94 S/L 5 4,155 0 3,740 415 0 0
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 11,315 0 10,900 415 0 0
00099 DELL 486 COMPUTER 09/21/93 S/L 5 1,845 0 1,845 0 0 0
00228 Gateway 486DX2 12/01/95 S/L 5 951 0 665 190 96 14
00245 Toshiba Laptop-MC Helena 04/01/96 S/L 5 1,467 0 733 293 441 29
00249 Gateway P4D-66 ComputerM 01/01/96 S/L 5 1,195 0 598 239 358 19
00262 Toshiba 486 Laptop-ID Mg 05/01/96 S/L 5 1,475 0 738 295 442 20
00266 24-Port Hub- Network 05/01/96 S/L 5 898 0 450 180 268 15
00267 Exabyte 0000XX Xxxx Xxxx 05/01/96 S/L 5 2,076 0 1,038 415 623 30
00269 Gateway P5-server 05/01/96 S/L 5 3,108 0 1,658 622 828 50
00271 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00272 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00273 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00274 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00275 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00276 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00277 P5-75 Computer 05/01/96 S/L 5 1,776 0 947 355 474 25
00278 P5-75 computer 05/01/96 S/L 5 1,776 0 947 355 474 25
00279 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00280 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00281 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Helena, MT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00282 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00283 P5-75 Computer 05/01/96 S/L 5 1,776 0 888 355 533 25
00285 Toshiba 486Dx4/75 05/01/96 S/L 5 1,470 0 735 294 441 19
00286 Toshiba 486Dx4/75-IS-Xxx 05/01/96 S/L 5 1,470 0 735 294 441 19
00310 2.1 G Hard Drive 10/01/96 S/L 5 567 0 283 113 171 14
00314 Xxxxxxx X0-000 08/01/96 S/L 5 1,810 0 905 362 543 32
00319 Xxxxxxx X0-000 08/01/96 S/L 5 1,810 0 905 362 543 32
00320 Xxxxxxx X0-000 08/01/96 S/L 5 1,810 0 905 362 543 32
00326 2MB Memory 02/19/97 MACRS 5 5 320 0 155 66 99 0
00327 Toshiba 100CS Laptop 01/13/97 MACRS 5 5 1,550 0 806 298 446 23
00374 Xxxxxxx X0-000 Desktop 03/22/97 MACRS 5 5 1,402 0 659 297 446 22
00416 TN 2181 16 Port Digital 10/13/97 MACRS 5 5 2,295 0 1,193 441 661 34
00419 GP6-233 for PCMS Server 11/29/97 MACRS 5 5 2,270 0 1,180 436 654 40
00430 TOSHIBA 430 CDT LAPTOP 07/31/97 MACRS 5 5 1,810 0 941 348 521 29
00546 Toshiba satellite 430CDS 01/01/98 MACRS 3 3 1,460 0 487 649 324 55
00547 Toshiba satellite 430CDS 01/01/98 MACRS 3 3 1,460 0 487 649 324 55
00586 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00587 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00588 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00589 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00590 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00591 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00592 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00593 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 64,303 0 29,763 14,052 20,488 1,220
00524 S10/02/98 MACRS 5 5 3,748 0 750 1,199 1,799 99
------- --- ------ ----- ------ ---
60 - Video/Photo Equipment 3,748 0 750 1,199 1,799 99
======= === ====== ===== ====== ===
LOCATION HEL TOTAL 190,753 0 61,445 22,142 107,166 1,775
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00031 PHONE SYSTEM-KALISPELL 09/23/93 S/L 6 2,853 0 2,617 236 0 0
00043 Telephone 01/01/94 S/L 2 241 0 241 0 0 0
00067 HP FAX-KALISPELL 02/11/94 S/L 5 800 0 720 80 0 0
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 3,894 0 3,578 316 0 0
00066 DESK-KALISPELL 10/07/87 MACRS 7 7 279 0 279 0 0 0
00067 DESK-KALISPELL 10/07/87 MACRS 7 7 239 0 239 0 0 0
00068 DESK-KALISPELL 10/08/87 MACRS 7 7 319 0 319 0 0 0
00069 DESK CHAIR-KALISPELL 10/22/87 MACRS 7 7 357 0 357 0 0 0
00070 CREDENZA-KALISPELL 10/07/87 MACRS 7 7 349 0 349 0 0 0
00071 POSTAGE SCALE-KALISPELL 11/27/87 MACRS 7 7 275 0 275 0 0 0
00072 CONF TABLE-KALISPELL 10/07/87 MACRS 7 7 299 0 299 0 0 0
00074 DESK CHAIR-KALISPELL 10/07/87 MACRS 7 7 291 0 291 0 0 0
00075 VIDEO RECORDER-KALISPELL 02/28/87 MACRS 7 7 507 0 507 0 0 0
00076 CABINETS-KALISPELL 01/01/89 MACRS 7 7 696 0 696 0 0 0
00077 SHREDDER-KALISPELL 12/10/92 S/L 6 559 0 559 0 0 0
00107 DESK 10/07/87 MACRS 7 7 349 0 349 0 0 0
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 4,519 0 4,519 0 0 0
00106 MITA COPIER-KALIPELL 06/18/91 S/L 5 6,998 0 6,998 0 0 0
00108 DELL 486 COMPUTER-KALISP 08/11/92 S/L 5 2,553 0 2,553 0 0 0
00110 LASER PRINTER 09/29/88 MACRS 5 5 1,739 0 1,739 0 0 0
00192 486 computer 06/30/95 S/L 5 1,585 0 1,109 317 159 31
00235 Gateway 486DX2/17" monit 12/01/95 S/L 5 1,525 0 1,067 305 153 30
00236 Gateway 486DX2/17" monit 12/01/95 S/L 5 1,525 0 1,067 305 153 30
00237 Gateway 486DX2 12/01/95 S/L 5 901 0 630 180 91 15
00582 Gateway E1200C computer 07/01/99 MACRS 3 3 837 0 0 279 558 44
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 17,663 0 15,163 1,386 1,114 150
======= === ====== ===== ====== ===
LOCATION KAL TOTAL 26,076 0 23,260 1,702 1,114 150
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Lewiston, ID
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00059 RICOH FAX 2500 09/08/93 S/L 5 1,971 0 1,971 0 0 0
00118 Phone System 07/01/96 S/L 6 3,104 0 1,293 517 1,294 44
15 - FAX MACHINES/PHONES 5,075 0 3,264 517 1,294 44
00607 Rmdl desks, laminate top 06/09/99 MACRS 7 7 2,000 0 0 286 1,714 40
00611 Rmdl solid core doors 06/09/99 MACRS 7 7 3,040 0 0 434 2,606 62
00612 Rmdl carpet/base trim 06/09/99 MACRS 7 7 4,234 0 0 605 3,629 89
00613 Rmdl electrical work 06/09/99 MACRS 5 5 3,500 0 0 700 2,800 100
00614 Rmdl-walls, paint, etc 06/09/99 S/L 39 22,030 0 0 330 21,700 48
------- --- ------ ----- ------ ---
31 - LEASEHOLD IMPROVEMENTS 34,804 0 0 2,355 32,449 339
00078 LOVE SEAT-LEWISTON 06/08/93 S/L 7 625 0 490 89 46 12
00207 Loveseat & Chair 04/01/96 S/L 7 546 0 195 78 273 1
00208 Loveseat 04/01/96 S/L 7 661 0 235 94 332 6
00210 Guest Chairs (7) 07/01/96 S/L 7 955 0 340 136 479 15
00211 Loveseat & End Tables 07/01/96 S/L 7 763 0 273 109 381 10
00497 Canon copier NP6012F 04/08/98 MACRS 5 5 1,690 0 338 541 811 46
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 5,240 0 1,871 1,047 2,322 90
00362 Gateway P133 w/3 GB Driv 02/10/97 MACRS 5 5 1,566 0 788 311 467 25
00370 MS NT 4.0 w/10 Client 03/20/97 MACRS 5 5 976 0 458 207 311 20
00371 Xxxxxxx X0-000 PC 03/21/97 MACRS 5 5 1,717 0 808 364 545 34
00372 Xxxxxxx X0-000 PC 03/21/97 MACRS 5 5 1,717 0 808 364 545 34
00373 Xxxxxxx X0-000 PC 03/21/97 MACRS 5 5 1,717 0 808 364 545 34
00576 HP Lasejet 5 refurb prnt 03/31/99 MACRS 5 5 785 0 0 157 628 13
00577 HP 2000CSE color printer 03/31/99 MACRS 5 5 639 0 0 128 511 11
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 9,117 0 3,670 1,895 3,552 171
00525 Proxima data projector 10/02/98 MACRS 5 5 4,390 0 878 1,405 2,107 118
------- --- ------ ----- ------ ---
60 - Video/Photo Equipment 4,390 0 878 1,405 2,107 118
======= === ====== ===== ====== ===
LOCATION LEW TOTAL 58,626 0 9,683 7,219 41,724 762
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Lynnwood, WA
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00001 XXXXXXX SET 04/21/87 MACRS 7 7 376 0 376 0 0 0
------- --- ------ ----- ------ ---
25 - LIBRARY 376 0 376 0 0 0
00014 CABINETS 12/01/88 MACRS 7 7 696 0 696 0 0 0
00554 Tiles, carpet, wiring 02/02/98 MACRS 7 7 2,842 0 406 696 1,740 58
------- --- ------ ----- ------ ---
31 - LEASEHOLD IMPROVEMENTS 3,538 0 1,102 696 1,740 58
00079 MISC SEE 1984 SCHEDULE 01/01/84 MACRS 5 5 14,663 0 14,663 0 0 0
00080 MISC SEE 1986 SCHEDULE 01/01/86 MACRS 5 5 40,510 0 40,510 0 0 0
00081 MISC SEE 1985 SCHEDULE 01/01/85 MACRS 5 5 13,110 0 13,110 0 0 0
00400 Furniture/Chairs 07/01/97 MACRS 7 7 3,084 0 1,196 539 1,349 44
00401 Furniture/Fixtures 07/01/97 MACRS 7 7 2,713 0 1,052 475 1,186 35
00402 Shredder, Powershred, 22 08/02/97 MACRS 7 7 539 0 209 94 236 6
00403 Desk, Cabinets, Work Count 10/10/97 MACRS 7 7 1,873 0 727 327 819 30
00471 balance on desk #403 01/05/98 MACRS 5 5 2,194 0 439 702 1,053 53
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 78,686 0 71,906 2,137 4,643 168
00030 Toshiba Laptop 11/01/96 S/L 5 1,400 0 700 280 420 27
00256 Gateway P4D-66 Computer 01/01/96 S/L 5 1,195 0 598 239 358 19
00389 Toshiba 155CS Laptop 03/27/97 MACRS 5 5 1,332 0 626 282 424 18
00404 Computer Hardware/Softwa 07/01/97 MACRS 5 5 23,300 0 8,621 5,872 8,807 493
00410 Xxxxxxx XX0-000 with MMX 09/23/97 MACRS 5 5 1,909 0 993 366 550 25
00434 TOSHIBA 430 CDT LAPTOP 09/16/97 MACRS 5 5 1,912 0 994 367 551 26
00482 HP 1600C Color inkjet 03/02/98 MACRS 5 5 1,352 0 270 433 649 37
00509 Exabyte 000XX xxxx xxxxx 00/00/00 XXXXX 3 3 1,419 0 473 631 315 48
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 33,819 0 13,275 8,470 12,074 693
00002 ART 01/29/88 None 40 850 0 0 0 850 0
------- --- ------ ----- ------ ---
50 - ARTWORK 850 0 0 0 850 0
00483 Proxima LB10 projector 03/03/98 MACRS 5 5 2,150 0 430 688 1,032 61
------- --- ------ ----- ------ ---
60 - Video/Photo Equipment 2,150 0 430 688 1,032 61
======= === ====== ===== ====== ===
LOCATION XXXX TOTAL 119,419 0 87,089 11,991 20,339 980
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Miles City, MT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00204 486 laptop 10/31/95 S/L 5 2,737 0 1,915 547 275 41
40 - COMPUTERS/PRINTERS/WIRING 2,737 1,915 547 275 41
------- --- ------ ----- ------ ---
00005 1996 Ford Taurus 04/01/96 S/L 5 SOLD 4/00 0 8,930 3,572 5,356 294
00572 1999 Ford F150 pickup 02/08/99 MACRS 5 5 23,968 0 0 4,794 19,174 434
------- --- ------ ----- ------ ---
45 - VEHICLES 41,826 0 8,930 8,366 24,530 728
======= === ====== ===== ====== ===
LOCATION MILE TOTAL 26,705 0 10,845 8,913 24,805 769
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Minot, ND
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00193 486 computer 06/30/95 S/L 5 1,585 0 1,110 317 158 31
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 1,585 0 1,110 317 158 31
======= === ====== ===== ====== ===
LOCATION MINOT TOTAL 1,585 0 1,110 317 158 31
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00002 Additional phones 01/28/95 S/L 6 1,180 0 689 000 000 00
00003 Canon Fax machine 04/30/95 S/L 5 1,595 0 1,117 319 159 22
00004 Additional phones 03/31/95 S/L 6 1,709 0 997 000 000 00
00005 Telcom Phones 05/31/95 S/L 6 4,937 0 2,880 823 1,234 64
00006 Brother Fax Machine 04/30/95 S/L 5 780 0 546 000 00 00
00008 Phone system - Mgd care 05/31/95 S/L 6 2,561 0 1,494 427 640 31
00009 Phone system backup 05/31/95 S/L 6 514 0 301 86 127 9
00012 Additional phones 06/30/95 S/L 6 1,670 0 973 000 000 00
00013 FAX-MSLA 09/03/92 S/L 6 1,995 0 1,995 0 0 0
00014 Phone system trunk cards 12/01/95 S/L 6 826 0 483 138 205 6
00015 LCD display 12/01/95 S/L 5 3,050 0 2,135 610 305 49
00016 Overhead projector 12/01/95 S/L 5 604 0 423 121 60 11
00019 Additional phones 12/01/95 S/L 6 2,240 0 1,306 373 561 32
00030 PHONE SYSTEM-MSLA 12/08/93 S/L 6 4,266 0 3,809 457 0 0
00035 PHONES 05/18/92 S/L 6 4,076 0 4,076 0 0 0
00036 UPGRADE PHONE SYSTEM 12/08/93 S/L 6 550 0 492 58 0 0
00037 PHONES 03/31/94 S/L 6 634 0 477 106 51 7
00039 PHONE SYSTEM 12/01/94 S/L 6 7,048 0 5,287 1,000 000 00
00040 PHONE SYSTEM 12/01/94 S/L 6 1,571 0 1,179 262 130 20
00041 PHONE SYSTEM BLACKFOOT 12/01/94 S/L 6 12,536 0 9,401 2,089 1,046 175
00069 HP FAX-MSLA 06/01/94 S/L 5 800 0 720 80 0 0
00081 Used Phone System 08/01/96 S/L 6 700 0 292 117 291 7
00083 Additional Phones 12/01/96 S/L 6 1,965 0 820 000 000 00
00112 PHONES 02/09/94 S/L 6 907 0 680 151 76 8
00115 Brother 4400 Fax- MC 04/01/96 S/L 5 900 0 450 180 270 15
00117 Voicemail 05/01/96 S/L 6 8,244 0 3,435 1,374 3,435 109
00119 Additional Phone & Board 07/01/96 S/L 6 1,006 0 420 000 000 00
00325 Richo Fax 2700L 04/11/97 MACRS 5 5 2,875 0 1,351 610 914 49
00327 Brother 5500ML Fax 07/03/97 MACRS 5 5 600 0 312 000 000 0
00328 Fax 10/18/97 MACRS 5 5 580 0 302 111 167 12
00459 Brother Fax 5550 12/31/97 MACRS 5 5 580 0 302 111 167 12
00472 Brother Fax MC4450 01/06/98 MACRS 5 5 580 0 116 186 278 10
00487 Polycom teleconf unit 03/14/98 MACRS 5 5 798 0 160 255 383 24
00532 Telrad 818 w/voice mail 12/01/98 MACRS 5 5 3,483 0 697 1,114 1,672 91
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 78,360 0 50,117 12,860 15,383 990
00001 Network software 01/30/95 S/L 3 1,786 0 1,786 0 0 0
00003 Quark Software 03/31/95 S/L 3 600 0 600 0 0 0
00004 Windows NT Software 03/31/95 S/L 3 2,225 0 2,225 0 0 0
00005 Gr. Plains upgrade 05/31/95 S/L 3 507 0 507 0 0 0
00009 PARADOX SOFTWARE 03/04/91 S/L 5 506 0 506 0 0 0
00010 UNIX UPGRADE 12/29/93 S/L 5 675 0 675 0 0 0
00011 SOFTWARE-G PLAINS 01/01/89 MACRS 5 5 1,250 0 1,250 0 0 0
00015 OASYS SOFTWARE 08/16/88 MACRS 5 5 5,350 0 5,350 0 0 0
00020 XENIX WORKPERFECT-MSLA 02/11/94 S/L 5 501 0 450 51 0 0
00023 GREAT PLAINS SOFT-MSLA 12/01/94 S/L 5 1,124 0 1,012 112 0 0
00024 MedDecision Software- MC 02/01/96 S/L 3 76,727 0 63,940 12,787 0 0
00025 Integrity Software 02/01/96 S/L 3 15,000 0 14,583 417 0 0
00030 Win Help Office 95 05/01/96 S/L 3 621 0 518 103 0 0
00031 Backup Software 08/01/96 S/L 3 779 0 650 129 0 0
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00035 Windows NT v 3.51 08/01/96 S/L 3 619 0 515 104 0 0
00036 Dynamics Accounting Soft 08/01/96 S/L 3 8,400 0 7,000 1,400 0 0
00037 Direct Deposit Software 08/01/96 S/L 3 1,495 0 1,245 250 0 0
00038 Oracle Software 11/01/96 S/L 3 87,132 0 72,610 14,522 0 0
00040 CMS Planner 11/01/96 S/L 3 1,288 0 1,073 215 0 0
00575 HBOC Case Mmgt Software 03/17/99 MACRS 3 3 287,840 0 0 95,947 191,893 9,592
------- --- ------ ----- ------ ---
20 - SOFTWARE 494,425 0 176,495 126,037 191,893 9,592
00460 Security System 11/19/97 MACRS 7 7 8,021 0 3,110 1,403 3,508 116
00461 Construction - improvemn 12/16/97 MACRS 7 7 684 0 167 148 369 16
00462 Cabinets 12/15/97 MACRS 7 7 34,702 0 13,456 6,070 15,176 504
00463 Custom Built Closets 12/15/97 MACRS 7 7 6,045 0 2,344 1,057 -2,644 89
00464 Office Supply Room 12/10/97 MACRS 7 7 1,167 0 453 204 510 17
00465 Signage 12/15/97 MACRS 7 7 2,864 0 1,110 501 1,253 39
00466 Walkway 12/15/97 MACRS15 15 6,800 0 986 581 5,233 53
00467 Wiring - lights, phones, e 12/15/97 MACRS 7 7 18,943 0 4,679 4,075 10,189 335
00468 Wiring - CAT 5 computers 12/15/97 MACRS 7 7 30,000 0 11,633 5,248 13,119 441
00469 Security System - Xxxxxx 05/30/97 MACRS 7 7 1,694 0 657 296 741 21
00553 Cabinets:build/instl Plm 01/05/98 MACRS 7 7 1,380 0 197 338 845 30
00555 Cabinets, cntrtop SFe 02/06/98 MACRS 7 7 1,253 0 179 307 767 21
00556 Workstation, closets Plm 02/17/98 MACRS 7 7 1,816 0 259 445 1,112 38
00557 Countertop, cabinets Plmr 02/17/98 MACRS 7 7 1,175 0 168 288 719 24
00558 Cabinets, video stand SF 03/19/98 MACRS 7 7 2,724 0 389 667 1,668 51
00560 Cabinets, bld/inst Plmr 12/21/98 MACRS 7 7 3,827 0 547 937 2,343 79
00608 Plmr rmdl elec, labor, mis 01/15/99 S/L 39 2,403 0 0 62 2,341 7
00000 Xxxx xxxx xxxxx, xxx, xx 01/15/99 S/L 39 4,748 0 0 122 4,626 12
00610 Plmr rmdl cool, carp, el 01/15/99 S/L 39 6,735 0 0 173 6,562 19
------- --- ------ ----- ------ ---
31 - LEASEHOLD IMPROVEMENTS 136,981 0 40,334 22,922 73,725 1,912
00001 MITA COPIER 11/21/88 MACRS 5 5 3,200 0 3,200 0 0 0
00003 FIRE SAFE 05/24/88 MACRS 7 7 370 0 370 0 0 0
00011 SHREDDER-MSLA 08/25/92 S/L 6 1,450 0 1,450 0 0 0
00012 RICOH COPIER-MSLA 05/10/93 S/L 6 13,495 0 12,370 1,125 0 0
00026 VIDEO CAMERA 05/01/89 MACRS 5 5 1,000 0 1,000 0 0 0
00062 MINOLTA COPIER 10/14/93 S/L 6 2,520 0 2,310 210 0 0
00063 CONFERENCE TABLE-MSLA 10/14/93 S/L 7 900 0 709 129 62 8
00099 COPIER AND SORTER 11/30/87 MACRS 7 7 7,245 0 7,245 0 0 0
00102 3 CREDENZAS 07/21/87 MACRS 7 7 897 0 897 0 0 0
00106 VACUUM CLEANER 07/11/87 MACRS 7 7 250 0 250 0 0 0
00110 MEMORYWRITER TYPE 07/01/87 MACRS 7 7 853 0 853 0 0 0
00116 SHREDDER 05/01/94 S/L 6 550 0 414 92 44 4
00117 DISPLAY BOARD 05/01/94 S/L 5 1,165 0 1,049 116 0 0
00123 CABINETS 12/01/94 S/L 7 15,000 0 9,643 2,143 3,214 174
00124 SIGN 12/01/94 S/L 7 1,850 0 1,188 264 398 22
00140 RECORDER DICTAPHONE 11/01/94 S/L 5 3,991 0 3,591 400 0 0
00148 RECORDER DICTAPHONE 11/01/94 S/L 5 714 0 643 71 0 0
00156 Transcriber 01/01/94 S/L 2 279 0 279 0 0 0
00157 Microcassette Recorder 01/01/94 S/L 2 143 0 143 0 0 0
00162 Dictaphone 01/01/94 S/L 2 100 0 100 0 0 0
00163 Blinds 01/01/95 S/L 7 4,880 0 2,440 697 1,743 59
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00164 Signs 01/01/95 S/L 7 845 0 423 121 301 11
00165 Shelving 02/28/95 S/L 7 1,950 0 976 279 695 26
00166 Credenza 01/31/95 S/L 7 500 0 249 71 180 5
00167 Cabinets & lighting 03/31/95 S/L 7 14,637 0 7,319 2,091 5,227 177
00168 Kitchen appliances 03/31/95 S/L 7 2,903 0 1,452 415 1,036 30
00169 Ceiling insulation 03/31/95 S/L 7 625 0 312 89 224 12
00170 Table & 4 chairs 04/30/95 S/L 7 1,050 0 550 150 350 7
00171 2 corner tables, 6 chair 04/30/95 S/L 7 983 0 490 140 353 8
00172 Task chair, 2 side chair 04/30/95 S/L 7 600 0 301 86 213 9
00173 Work Stations 04/30/95 S/L 7 5,400 0 2,699 771 1,930 67
00174 Conference board 05/31/95 S/L 7 1,325 0 662 189 474 13
00176 Electric Upgrade 05/31/95 S/L 7 1,274 0 637 182 455 17
00177 Work stations 05/31/95 S/L 7 5,400 0 2,699 771 -1,930 67
00178 Blinds 05/31/95 S/L 7 874 0 437 125 312 15
00179 Occasional Tables - 2 05/31/95 S/L 7 640 0 319 91 230 3
00185 Air conditioning bsmt 08/31/95 S/L 7 1,903 0 952 272 679 19
00187 Chairs - 6 08/31/95 S/L 7 1,020 0 511 146 363 14
00188 Shelving - basement 08/31/95 S/L 7 1,455 0 728 208 519 21
00189 Cabinets - 2 09/30/95 S/L 7 2,000 0 1,001 286 713 22
00190 Satellite dish 10/31/95 S/L 7 1,567 0 784 224 559 15
00192 Cabinets/shelving/counte 12/01/95 S/L 7 879 0 441 126 312 5
00193 Shelving units 12/01/95 S/L 5 1,137 0 762 227 148 18
00202 Workstation - MC recepti 01/01/96 S/L 7 2,104 0 752 301 1,051 26
00203 Cabinets-Cliff's Office 03/01/96 S/L 7 508 0 182 73 253 7
00204 Cabinets- Xxxx & Xxx 04/01/96 S/L 7 1,020 0 365 146 509 14
00205 Cabinets-repair workroom 04/01/96 S/L 6 650 0 355 108 187 9
00206 Oak Desk & Bookcase 04/01/96 S/L 7 955 0 340 136 479 15
00212 Round Conference Table 12/01/96 S/L 7 670 0 240 96 334 8
00239 Projector w/case 08/01/96 S/L 7 4,190 0 1,497 599 2,094 49
00474 Sticklye chair side tabl 01/28/98 MACRS 5 5 616 0 123 197 296 21
00475 Mica table lamp 01/28/98 MACRS 5 5 615 0 123 197 295 21
00489 xxxx computer workstatio 03/28/98 MACRS 5 5 1,437 0 287 460 690 42
00490 xxxx computer workstatio 03/28/98 MACRS 5 5 1,437 0 287 460 690 42
00494 blue storage cabinet 04/01/98 MACRS 5 5 1,500 0 300 480 720 40
00521 5 dwr lateral file 08/31/98 MACRS 7 7 665 0 95 163 407 9
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 126,186 0 79,794 15,723 30,669 1,151
00005 HP4 LASER 11/17/92 S/L 5 1,537 0 1,537 0 0 0
00032 Toshiba Laptop 11/01/96 S/L 5 1,400 0 700 280 420 27
00041 Xxxxxxx X0-000 11/01/96 S/L 5 1,845 0 923 369 553 28
00042 Xxxxxxx X0-000 11/01/96 S/L 5 1,845 0 923 369 553 28
00043 Xxxxxxx X0-000 11/01/96 S/L 5 1,810 0 905 362 543 32
00044 Xxxxxxx X0-000 11/01/96 S/L 5 1,810 0 905 362 543 32
00046 9.0 GB Hard Drive 12/01/96 S/L 5 1,960 0 980 392 588 29
00047 9.0 GB Hard Drive 12/01/96 S/L 5 1,960 0 980 392 588 29
00048 9.0 GB Hard Drive 12/01/96 S/L 5 1,960 0 980 392 588 29
00049 CDROM Drive-4X Read/Writ 12/01/96 S/L 5 660 0 330 132 198 11
00051 Xxxxxxx X0-000 12/01/96 S/L 5 1,810 0 905 362 543 32
00052 Xxxxxxx X0-000 12/01/96 S/L 5 1,810 0 905 362 543 32
00053 Xxxxxxx X0-000 12/01/96 S/L 5 1,810 0 905 362 543 32
00054 Xxxxxxx X0-000 12/01/96 S/L 5 1,810 0 905 362 543 32
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00055 Toshiba Laptop 12/01/96 S/L 5 1,500 0 750 300 450 25
00056 Toshiba laptop 12/01/96 S/L 5 1,500 0 750 300 450 25
00060 HPIII LASER PRINTER 07/08/91 S/L 5 1,550 0 1,550 0 0 0
00148 HP4 LASER PRINTER-MSLA 02/28/94 S/L 5 1,360 0 1,224 136 0 0
00151 DELL 486 COMPUTER 04/01/94 S/L 5 2,369 0 2,133 236 0 0
00155 GATEWAY COMPUTE-MSLA 04/01/94 S/L 5 989 0 891 98 0 0
00164 HP LASER PRINTER-MSLA 09/01/94 S/L 5 1,376 0 1,238 138 0 0
00170 WIRING-CORPORATE 12/01/94 S/L 6 6,793 0 5,094 1,132 567 98
00173 Laser printer 01/01/94 S/L 2 1,860 0 1,860 0 0 0
00174 Network cards 01/30/95 S/L 5 3,474 0 2,432 695 347 57
00179 Network Server 03/31/95 S/L 5 10,876 0 7,613 2,175 1,088 184
00180 HP Laserjet printer 03/31/95 S/L 5 1,370 0 959 274 137
21
00185 Laptop - colorbook 04/30/95 S/L 5 3,723 0 2,607 745 -371 63
00186 Laptop - colorbook 04/30/95 S/L 5 3,723 0 2,607 745 371 63
00187 IBM Laptop 04/30/95 S/L 5 3,633 0 2,544 727 362 56
00189 Color monitor 17 inch 05/31/95 S/L 5 625 0 438 125 62 15
00190 486 computer 05/31/95 S/L 5 1,755 0 1,229 351 175 32
00191 486 computer 06/30/95 S/L 5 1,585 0 1,110 317 158 31
00195 HP Deskjet color printer 06/30/95 S/L 5 501 0 350 100 51 12
00199 Toshiba laptop 08/31/95 S/L 5 2,350 0 1,645 470 235 41
00202 network cards for future 08/31/95 S/L 5 1,200 0 840 240 120 20
00208 Toshiba laptop 12/01/95 S/L 5 2,592 0 1,813 518 261 45
00209 Disk drive 4.3G 12/01/95 S/L 5 1,470 0 1,029 294 147 19
00210 Disk drive 4.3G 12/01/95 S/L 5 1,479 0 1,036 296 147 21
00211 Network Hub 12/01/95 S/L 5 929 0 651 186 92 10
00212 Network Cards 12/01/95 S/L 5 866 0 606 173 87 19
00215 Gateway 486 w/17" monito 12/01/95 S/L 5 1,445 0 1,012 289 144 25
00221 Network Hub 12/01/95 S/L 5 929 0 651 186 92 10
00223 Network Cards 12/01/95 S/L 5 1,566 0 1,096 313 157 27
00224 Print servers (2) 12/01/95 S/L 5 878 0 616 176 86 11
00225 Print Servers (4) 12/01/95 S/L 5 1,756 0 1,229 351 176 32
00227 Gateway 17" monitor 12/01/95 S/L 5 524 0 367 105 52 6
00229 Gateway 17" monitor 12/01/95 S/L 5 524 0 367 105 52 6
00230 Gateway 486DX2/17" monit 12/01/95 S/L 5 1,425 0 998 285 142 21
00231 Gateway 486DX2/17" monit 12/01/95 S/L 5 1,425 0 998 285 142 21
00232 Gateway 486DX2/17" monit 12/01/95 S/L 5 1,525 0 1,068 305 152 30
00233 Gateway 486DX2/17" monit 12/01/95 S/L 5 1,525 0 1,067 305 153 30
00234 Gateway 486DX2/17" monit 12/01/95 S/L 5 1,525 0 1,067 305 153 30
00238 Gateway 17" monitor 12/01/95 S/L 5 524 0 367 105 52 6
00240 HP 551 Laserjet Printer 02/01/96 S/L 5 4,639 0 2,320 928 1,391 81
00241 Automatic Paper Folder 04/01/96 S/L 5 525 0 263 105 157 6
00242 Sheet Feeder for HP5si 04/01/96 S/L 5 876 0 438 175 263 10
00243 Memory upgrade-16mz (Art) 04/01/96 S/L 5 530 0 265 106 159 7
00244 Toshiba Laptop 04/01/96 S/L 5 1,467 0 733 293 441 29
00250 Gateway P4D-66 Computer 01/01/96 S/L 5 1,195 0 598 239 358 19
00252 Gateway P4D-66 Computer 01/01/96 S/L 5 1,195 0 598 239 358 19
00253 Gateway P4D-66 Computer 01/01/96 S/L 5 1,195 0 598 239 358 19
00254 Gateway P4D-66 Computer 01/01/96 S/L 5 1,195 0 598 239 358 19
00255 Gateway P4D-66 Computer 01/01/96 S/L 5 1,195 0 598 239 358 19
00257 Xxxxxxx Xxxxxxx X0-000 01/01/96 S/L 5 2,644 0 1,322 529 793 45
00258 Xxxxxxx Xxxxxxx X0-000 01/01/96 S/L 5 2,644 0 1,322 529 793 45
00259 Toshiba 486-75 Laptop-EA 01/01/96 S/L 5 1,961 0 980 392 589 29
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00261 Toshiba Laptop-Xxxxx 04/01/96 S/L 5 1,550 0 775 310 465 24
00268 Toshiba 4860X4/75 05/01/96 S/L 5 1,500 0 750 300 450 25
00284 Toshiba 486DX4/75-ProvRe 05/01/96 S/L 5 1,470 0 735 294 441 19
00287 IBM Thinkpad, 16mb ram 07/01/96 S/L 5 2,188 0 1,095 438 655 31
00288 Toshiba+ 16mb ram, zip DC 07/01/96 S/L 5 2,498 0 1,250 500 748 38
00289 AST Pentium Lptop, 8mb ra 07/01/96 S/L 5 2,528 0 1,265 506 757 44
00290 Xxxxxxx X0-000,x/xxx 32m 07/01/96 S/L 5 3,164 0 1,582 633 949 50
00291 Gateway x0-000 (Xxxx) 07/01/96 S/L 5 1,849 0 925 370 554 29
00292 Xxxxxxx X0-000 07/01/96 S/L 5 1,849 0 925 370 554 29
00293 2.1 G. Hard Drive 10/01/96 S/L 5 573 0 287 115 171 5
00295 Xxxxxxx x0-000 08/01/96 S/L 5 1,629 0 815 326 488 29
00298 Xxxxxxx X0-000 08/01/96 S/L 5 1,789 0 895 358 536 28
00299 Xxxxxxx X0-000 08/01/96 S/L 5 1,789 0 895 358 -536 28
00300 Xxxxxxx X0-000 08/01/96 S/L 5 1,789 0 895 358 536 28
00000 Xxxxxxxx Xxxx Xxxxx 08/01/96 S/L 5 2,099 0 1,050 420 629 35
00303 Toshiba Laptop 09/01/96 S/L 5 1,500 0 750 300 450 25
00304 Toshiba Laptop 09/01/96 S/L 5 1,500 0 750 300 450 25
00306 HP Deskjet - Color 09/01/96 S/L 5 1,346 0 673 269 404 27
00307 Xxxxxxx X0-000 w/32 m ra 10/01/96 S/L 5 2,854 0 1,427 571 856 43
00309 Xxxxxxx X0-000 10/01/96 S/L 5 1,824 0 912 365 547 35
00311 HP Laserjet 5 Printer 10/01/96 S/L 5 1,325 0 663 265 397 23
00312 HP5 Laser Printer 10/01/96 S/L 5 1,299 0 650 260 389 18
00313 Xxxxxxx X0-000 08/01/96 S/L 5 1,810 0 905 362 543 32
00322 Xxxxxxx Xxx -00 xxxx 00/00/00 X/X 0 000 0 420 168 252 14
00323 External Tape Drive 09/01/96 S/L 5 2,025 0 1,013 405 607 31
00324 Toshiba Laptop 10/01/96 S/L 5 1,500 0 750 300 450 25
00325 Toshiba laptop 10/01/96 S/L 5 1,500 0 750 300 450 25
00329 Xxxxxx 000XX Xxxx-000 01/17/97 MACRS 5 5 1,527 0 769 303 455 28
00330 Superstack II Hub 01/17/97 MACRS 5 5 780 0 393 155 232 12
00331 Superstack II Hub 01/17/97 MACRS 5 5 780 0 393 155 232 12
00332 NT Server Windows 01/20/97 MACRS 5 5 976 0 491 194 291 18
00334 Toshiba Satellite Pro 01/29/97 MACRS 5 5 5,133 0 2,583 1,020 1,530 85
00335 Toshiba Laptop 420CDS 02/06/97 MACRS 5 5 1,705 0 859 338 508 30
00336 Toshiba Laptop 420CDS 02/06/97 MACRS 5 5 1,705 0 859 338 508 30
00337 IBM 2.0GB Hard Drives 12 02/18/97 MACRS 5 5 509 0 248 104 157 5
00338 IBM 2.0GB Hard Drives 12 02/18/97 MACRS 5 5 509 0 248 104 157 5
00339 Superstack II Switch 02/21/97 MACRS 5 5 1,832 0 891 376 565 35
00340 Past Etherlink XL 10/100 02/21/97 MACRS 5 5 405 0 198 83 124 6
00341 Past Etherlink 02/21/97 MACRS 5 5 405 0 198 83 124 6
00342 Fast Ethernet-Offc Conne 02/21/97 MACRS 5 5 646 0 315 132 199 11
00343 Lineintaccs 1400VS-MSO S 02/27/97 MACRS 5 5 556 0 271 114 171 4
00344 G6-200 3.8 4MB Card 12x 02/27/97 MACRS 5 5 4,032 0 1,962 828 1,242 69
00345 Toshiba Laptop 100CS 01/10/97 MACRS 5 5 1,550 0 806 298 446 23
00346 Apex II 512K Laser Kit 03/12/97 MACRS 5 5 1,809 0 881 371 557 30
00347 G6-200 PC 03/14/97 MACRS 5 5 1,592 0 775 327 490 30
00348 Xxxxxxx X0-000 PC 03/27/97 MACRS 5 5 1,820 0 855 386 579 34
00349 Toshiba 420CDS 03/31/97 MACRS 5 5 1,680 0 790 356 534 26
00350 Toshiba 420CDS 03/31/97 MACRS 5 5 1,680 0 790 356 534 26
00351 HP 5 Laser Printer 04/09/97 MACRS 5 5 1,349 0 634 286 429 22
00352 Ultra Barracuda 4.3GB 04/17/97 MACRS 5 5 851 0 385 186 280 10
00353 Xxxxxxx X0-000 PC 04/22/97 MACRS 5 5 1,595 0 723 349 523 30
00354 Xxxxxxx X0-000 PC 04/22/97 MACRS 5 5 1,595 0 723 349 523 30
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00355 Gateway P5-133 PC 04/22/97 MACRS 5 5 1,595 0 723 349 523 30
00356 Xxxxxxx X0-000 PC 04/22/97 MACRS 5 5 1,640 0 744 358 538 28
00357 Toshiba Satellite 200CDS 04/25/97 MACRS 5 5 1,510 0 684 330 496 22
00358 Toshiba Satellite 200CDS 04/25/97 MACRS 5 5 1,510 0 684 330 496 22
00359 Xxxxxxx X0-000 PC 04/22/97 MACRS 5 5 1,961 0 889 429 643 33
00360 Digi Acceleport 05/08/97 MACRS 5 5 505 0 229 110 166 11
00407 Brother MFC4550 laser 08/22/97 MACRS 5 5 701 0 364 135 202 14
00408 HP Laserjet 5se 08/20/97 MACRS 5 5 1,243 0 647 238 358 18
00409 Brother MFC4550 laser 08/22/97 MACRS 5 5 745 0 387 143 215 11
00412 Toshiba Laptop T430CD 06/19/97 MACRS 5 5 2,170 0 1,128 417 625 32
00413 HP5 laser printer 09/18/97 MACRS 5 5 1,080 0 562 207 311 20
00414 Intel 200Mhz Pentium Pro 06/11/97 MACRS 5 5 544 0 283 104 157 5
00415 Smart UPS 700XLNET 700 V 06/12/97 MACRS15 15 538 0 78 46 -414 2
00417 5 - GP5-166 to Res Cen 11/26/97 MACRS 5 5 8,490 0 4,415 1,630 2,445 134
00420 3 - GP6-233 for Oracle 12/04/97 MACRS 5 5 10,017 0 5,209 1,923 2,885 163
00421 GP5-166 10/24/97 MACRS 5 5 1,264 0 657 243 364 23
00422 GP5-200 for Provider Rel 12/22/97 MACRS 5 5 1,848 0 961 355 532 25
00423 4 - GP5-200 for training 12/22/97 MACRS 5 5 7,392 0 3,844 1,419 2,129 121
00424 GP5-200 for marketing 12/22/97 MACRS 5 5 1,848 0 961 355 532 25
00425 GP5-200 for Overhead -Am 12/22/97 MACRS 5 5 1,848 0 961 355 532 25
00426 HP 5 Laser Printer 04/24/97 MACRS 5 5 1,339 0 696 257 386 26
00429 Toshiba 430 CDT Laptop 07/31/97 MACRS 5 5 1,810 0 941 348 521 29
00431 TOSHIBA 430 CDT LAPTOP 07/31/97 MACRS 5 5 1,810 0 941 348 521 29
00432 TOSHIBA 430 CDS LAPTOP 08/05/97 MACRS 5 5 1,462 0 760 281 421 28
00433 TOSHIBA 430 CDS LAPTOP 08/05/97 MACRS 5 5 1,462 0 760 281 421 28
00436 TOSHIBA 430 CDT LAPTOP 09/16/97 MACRS 5 5 1,912 0 994 367 551 26
00437 TOSHIBA 430 CDT LAPTOP 09/16/97 MACRS 5 5 1,912 0 994 367 551 26
00438 TOSHIBA 430 CDT LAPTOP 09/16/97 MACRS 5 5 1,912 0 994 367 551 26
00439 XX0-000 XXXXXXX COMPUTER 09/16/97 MACRS 5 5 1,209 0 629 232 348 23
00440 XX0-000 XXXXXXX COMPUTER 09/16/97 MACRS 5 5 1,209 0 629 232 348 23
00442 XX0-000 XXXXXXX COMPUTER 09/16/97 MACRS 5 5 1,209 0 629 232 348 23
00443 XX0-000 XXXXXXX COMPUTER 09/16/97 MACRS 5 5 1,209 0 629 232 348 23
00444 XX-000 XXXXXXX XXXXXXXX 00/00/00 XXXXX 0 0 1,209 0 629 232 348 23
00446 XX0-000 XXXXXXX COMPUTER 09/16/97 MACRS 5 5 1,209 0 629 232 348 23
00447 XX0-000 XXXXXXX COMPUTER 09/16/97 MACRS 5 5 1,209 0 629 232 348 23
00449 CRYSTAL SCAN 17" MONITOR 09/19/97 MACRS 5 5 455 0 237 87 131 10
00450 CRYSTAL SCAN 17" MONITOR 09/19/97 MACRS 5 5 455 0 237 87 131 10
00451 CRYSTAL SCAN 17" MONITOR 09/19/97 MACRS 5 5 455 0 237 87 131 10
00452 CRYSTAL SCAN 17"MONITOR 09/19/97 MACRS 5 5 455 0 237 87 131 10
00453 CRYSTAL SCAN 17" MONITOR 09/19/97 MACRS 5 5 455 0 237 87 131 10
00454 EV 500 15" MONITOR 09/19/97 MACRS 5 5 255 0 133 49 73 5
00455 EV 500 15" MONITOR 09/19/97 MACRS 5 5 255 0 133 49 73 5
00456 MS NT SERVER 4.0 09/25/97 MACRS 5 5 690 0 359 132 199 11
00457 HP LASERJET 5 09/25/97 MACRS 5 5 1,060 0 551 204 305 17
00470 LABTOP COMPUTER 04/30/97 MACRS 5 5 1,250 0 400 340 510 32
00473 3Com Switch 3000 Superst 01/12/98 MACRS 3 3 2,431 0 810 1,081 540 91
00476 HP LaserJet 4000 01/28/98 MACRS 5 5 1,149 0 230 368 551 27
00479 Gateway 266, EV700 17"mo 02/24/98 MACRS 3 3 3,305 0 1,102 1,469 734 127
00480 Gateway 266, EV700 17"mo 02/24/98 MACRS 3 3 3,305 0 1,102 1,469 734 127
00481 Gateway 333, EV700 17"mo 02/24/98 MACRS 3 3 2,925 0 975 1,300 650 112
00484 Gateway 300, EV700 17"mo 03/04/98 MACRS 3 3 2,325 0 775 1,033 517 87
00485 Gateway 300, EV700 17"mo 03/04/98 MACRS 3 3 2,325 0 775 1,033 517 87
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00491 HP LJ4 printer 03/31/98 MACRS 5 5 750 0 150 240 360 20
00492 HP LJ4 printer 03/31/98 MACRS 5 5 750 0 150 240 360 20
00495 Toshiba laptop Tecra510C 04/02/98 MACRS 3 3 1,659 0 553 737 369 66
00496 Toshiba laptop Tecra510C 04/02/98 MACRS 3 3 1,659 0 553 737 369 66
00498 Gateway 266, EV700 17"mo 04/19/98 MACRS 3 3 1,908 0 636 848 424 67
00499 Gateway 266, EV700 17"mo 04/19/98 MACRS 3 3 1,908 0 636 848 424 67
00501 NS7000 333MHz Server 05/19/98 MACRS 3 3 3,685 0 1,228 1,638 819 131
00502 XX0-000 x/Xxxxxxx 00"xxx 05/21/98 MACRS 3 3 3,092 0 1,031 1,374 687 109
00504 GP6-300; EV700 17" monit 05/27/98 MACRS 3 3 1,957 0 652 870 435 67
00505 GP6-300, EV700 17" monit 05/27/98 MACRS 3 3 1,957 0 652 870 435 67
00506 GP6-300, EV700 17"monito 05/27/98 MACRS 3 3 1,957 0 652 870 435 67
00507 GP6-300, EV700 17"monito 05/27/98 MACRS 3 3 1,956 0 652 869 435 77
00510 Exabyte 000 xxxx xxxxx 06/09/98 MACRS 3 3 1,509 0 503 671 -335 55
00511 Exabyte 000 xxxx xxxxx 06/09/98 MACRS 3 3 1,508 0 503 670 335 54
00512 remanuf 200MHz, 15"mon 07/10/98 MACRS 3 3 891 0 297 396 198 33
00513 remanuf 200MHz, 15"mon 07/10/98 MACRS 3 3 891 0 297 396 198 33
00514 remanuf 200MHZ, 15" mon 07/10/98 MACRS 3 3 891 0 297 396 198 33
00515 remanuf 200MHz, 15" mon 07/10/98 MACRS 3 3 891 0 297 396 198 33
00516 remanuf 000 XXx 00" moni 07/10/98 MACRS 3 3 890 0 297 395 198 32
00517 remanuf 200MHz 15" monit 07/10/98 MACRS 3 3 890 0 297 395 198 32
00518 HP LaserJet 4 printer 08/10/98 MACRS 5 5 825 0 165 264 396 22
00519 Oracle7 wrkgrp server V7 08/17/98 MACRS 3 3 3,540 0 1,180 1,573 787 132
00520 Oracle appl server EntEd 08/17/98 MACRS 3 3 3,120 0 1,040 1,387 693 111
00526 Compaq laptop 7790DMT 10/12/98 MACRS 3 3 2,514 0 838 1,117 559 94
00527 4GB HD, 48MB module 10/12/98 MACRS 3 3 791 0 264 351 176 32
00531 HP LaserJet 8500DN print 12/01/98 MACRS 5 5 8,700 0 1,740 2,784 4,176 232
00534 GP6-233 w/EV700 monitor 03/30/98 MACRS 3 3 1,969 0 656 875 438 72
00535 GP6-233 w/EV700 monitor 03/30/98 MACRS 3 3 1,969 0 656 875 438 72
00536 GP6-266 w/EV700 monitor 03/04/98 MACRS 3 3 2,044 0 681 909 454 73
00537 GP6-266 w/EV700 monitor 03/04/98 MACRS 3 3 2,044 0 681 909 454 73
00538 Toshiba Tecra 510CDT 1pt 05/11/98 MACRS 3 3 1,353 0 451 601 301 51
00539 Toshiba Tecra 510CDT 1pt 05/11/98 MACRS 3 3 1,353 0 451 601 301 51
00540 Toshiba Tecra 510CDT 1pt 05/11/98 MACRS 3 3 1,353 0 451 601 301 51
00541 Toshiba Tecra 510CDT 1pt 05/11/98 MACRS 3 3 1,353 0 451 601 301 51
00542 GP5-166 system 01/01/98 MACRS 3 3 1,209 0 403 537 269 42
00543 Toshiba 430CDT laptop 06/02/98 MACRS 3 3 1,799 0 600 799 400 62
00544 Toshiba satellite 430CDS 01/01/98 MACRS 3 3 1,455 0 485 647 323 53
00545 Toshiba satellite 430CDS 01/01/98 MACRS 3 3 1,460 0 487 649 324 55
00548 Toshiba satellite 430CDS 01/01/98 MACRS 3 3 1,460 0 487 649 324 55
00549 Toshiba Tecra 510CDT 1pt 04/02/98 MACRS 3 3 1,659 0 553 737 369 66
00550 Toshiba Tecra 510CDT 1pt 04/02/98 MACRS 3 3 1,659 0 553 737 369 66
00551 Toshiba Tecra 510CDT 1pt 04/02/98 MACRS 3 3 1,658 0 553 737 368 66
00552 Toshiba Tecra 510CDT 1pt 04/02/98 MACRS 3 3 1,658 0 553 737 368 66
00561 Cisco 1601 router 12/04/98 MACRS 3 3 1,090 0 363 485 242 45
00562 Cisco 1601 router 12/04/98 MACRS 3 3 1,090 0 363 485 242 45
00563 Toshiba 430CDS laptop 12/01/98 MACRS 3 3 1,516 0 195 881 440 78
00564 Toshiba 430CDS laptop 12/01/98 MACRS 3 3 1,462 0 187 850 425 69
00565 Toshiba 430CDS laptop 12/01/98 MACRS 3 3 1,516 0 195 881 440 78
00566 Tecra laptop 12/01/98 MACRS 3 3 1,353 0 174 786 393 60
00567 Tecra laptop 12/01/98 MACRS 3 3 1,353 0 174 786 393 60
00568 OQ XX-Xxxx XX, 000 Xxx 00/00/00 XXXXX 3 3 2,869 0 0 956 1,913 76
00000 Xxxxxxx X0000 333C 01/21/99 MACRS 3 3 1,357 0 0 452 905 34
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00573 Compaq 7790 laptop 01/10/99 MACRS 3 3 2,730 0 0 910 1,820 74
00574 Compaq 7790 laptop 02/10/99 MACRS 3 3 2,730 0 0 910 1,820 80
00578 HP Srvr PII CCMS, ram, hd 03/31/99 MACRS 3 3 7,974 0 0 2,658 5,316 264
00579 HP swap harddrive, CCMS 04/30/99 MACRS 3 3 980 0 0 327 653 39
00581 HP LH4 srvr, CCMS produc 04/20/99 MACRS 3 3 15,758 0 0 5,253 10,505 581
00594 Gateway E1200C computer 06/29/99 MACRS 3 3 837 0 0 279 558 39
00595 Gateway E1200C computer 06/18/99 MACRS 3 3 837 0 0 279 558 39
00596 Gateway E1200C computer 06/29/99 MACRS 3 3 837 0 0 279 558 39
00597 Gateway E1200C computer 06/29/99 MACRS 3 3 837 0 0 279 558 39
00598 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00599 Gateway E1200C computer 06/29/99 MACRS 3 3 837 0 0 279 558 39
00600 Gateway E1200C computer 06/29/99 MACRS 3 3 837 0 0 279 558 39
00601 Gateway E1200C computer 06/15/99 MACRS 3 3 837 0 0 279 558 39
00602 Gateway E1200C computer 06/14/99 MACRS 3 3 837 0 0 279 558 39
00603 Gateway E1200C computer 06/16/99 MACRS 3 3 837 0 0 279 558 39
00604 Gateway E1200C computer 06/14/99 MACRS 3 3 837 0 0 279 558 39
00605 Gateway E1200C computer 06/18/99 MACRS 3 3 837 0 0 279 558 39
00606 Gateway E1200C computer 06/15/99 MACRS 3 3 837 0 0 279 558 39
00615 Canon laser network fax 07/01/99 MACRS 3 3 2,595 0 0 865 1,730 145
00616 Cisco 1600 router 07/01/99 MACRS 3 3 1,230 0 0 410 820 70
00617 Compaq Armada 7790 lapto 07/31/99 MACRS 3 3 1,835 0 0 612 1,223 102
00618 Gateway 433C computer 08/01/99 MACRS 3 3 1,075 0 0 358 717 70
00619 Cisco 2524 router 08/06/99 MACRS 3 3 700 0 0 233 467 45
00620 6 HP 9.1 swap hard drive 08/19/99 MACRS 3 3 5,010 0 0 1,670 3,340 334
00621 Gateway 433C computer 08/31/99 MACRS 3 3 907 0 0 302 605 62
00622 HP 4050TN Laser printer 09/01/99 MACRS 3 3 1,380 0 0 460 920 115
00000 Xxxxxxx X0000 433c compu 09/01/99 MACRS 3 3 1,067 0 0 356 711 89
00000 Xxxxxxx X0000 450 comput 10/09/99 MACRS 3 3 1,309 0 0 436 873 146
00000 Xxxxxxx X0000 333 comput 01/01/99 MACRS 3 3 1,158 0 0 386 772 34
00000 Xxxxxxx X0000 333 comput 01/01/99 MACRS 3 3 1,158 0 0 386 772 34
00000 Xxxxxxx X0000 333 comput 01/01/99 MACRS 3 3 1,158 0 0 386 772 34
00629 SS 24 port switch & upgr 10/01/99 MACRS 3 3 3,475 0 0 1,158 2,317 386
00630 Gateway E1200C computer 09/17/99 MACRS 3 3 837 0 0 279 558 69
00631 Gateway E1200C computer 07/19/99 MACRS 3 3 838 0 0 279 559 44
00633 HP Netserver LH3 PIII 12/03/99 MACRS 3 3 3,200 0 0 1,067 2,133 1,067
00634 4 HP 18GB disks ultra2 12/03/99 MACRS 3 3 3,592 0 0 1,197 2,395 1,197
00635 3 128MB Sdram Netserver 12/07/99 MACRS 3 3 1,041 0 0 347 694 347
00636 Upgrd Exchange Srvr V5.5 12/16/99 MACRS 3 3 730 0 0 243 487 243
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 468,494 0 191,946 127,636 148,912 14,635
00001 1995 Toyota Camry 10/31/95 S/L 5 18,832 0 13,181 3,766 1,885 312
00496 1998 Chevrolet Suburban 04/06/98 MACRS 5 5 38,305 0 7,661 12,258 18,386 1,016
00503 1998 Toyota Avalon 05/26/98 MACRS 5 5 28,500 0 5,700 9,120 13,680 760
00580 1997 EZ Go Golf Cart 04/08/99 MACRS 5 5 3,600 0 0 720 2,880 80
------- --- ------ ----- ------ ---
45 - VEHICLES 89,237 0 26,542 25,864 36,831 2,168
00477 Sony 32" TV KV - 32S36 02/13/98 MACRS 5 5 898 0 180 287 431 23
00478 Sony 35" TV KV - 35S36 02/13/98 MACRS 5 5 1,350 0 270 432 648 36
00486 Proxmia LB10 projector 03/04/98 MACRS 5 5 2,150 0 430 688 1,032 61
00493 Canon ES970 camcorder 03/31/98 MACRS 5 5 740 0 148 237 355 17
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Xxxxxxxx, XX
Xxx000 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00529 Security system install 12/08/98 MACRS 5 5 7,000 0 1,400 2,240 3,360 183
60 - Video/Photo Equipment 12,138 0 2,428 3,884 5,826 320
========= === ====== ===== ====== ======
LOCATION MSLA TOTAL 1,405,821 0 567,656 334,926 503,239 30,768
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Murray, UT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00032 2 PHONES-XXXXXX 12/31/93 S/L 6 537 0 482 55 0 0
00033 PHONE SYSTEM-XXXXXX 08/14/93 S/L 6 2,607 0 2,392 215 0 0
00038 PHONES-XXXXXX 05/01/94 S/L 6 537 0 406 90 41 2
00061 RICOH FAX 2500 09/08/93 S/L 5 1,971 0 1,971 0 0 0
00063 BROTHER 650 FAX 10/20/93 S/L 5 565 0 565 0 0 0
00066 BROTHER 650 FAX-VERNAL 10/20/93 S/L 5 565 0 565 0 0 0
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 6,782 0 6,381 360 41 2
00039 SPSS Statistical Softwar 11/01/96 S/L 3 695 0 580 115 0 0
------- --- ------ ----- ------ ---
20 - SOFTWARE 695 0 580 115 0 0
00082 VCR/MONITOR-XXXXXX 09/21/93 S/L 7 583 0 457 83 43 6
00083 SHREDDER-XXXXXX 09/21/93 S/L 6 556 0 511 45 0 0
00085 CONFERENCE TABLES-XXXXXX 11/16/93 S/L 7 1,400 0 1,100 200 100 13
00087 MISC FURN-XXXXXX 08/09/93 S/L 7 13,830 0 10,868 1,976 986 161
00088 RICOH 4421 COPIER-XXXXXX 09/08/93 S/L 6 5,893 0 5,402 491 0 0
00092 MISC FURN-PRICE 09/08/93 S/L 7 575 0 451 82 42 5
00182 Promo display unit 05/31/95 S/L 7 1,330 0 665 190 475 14
00201 Xxxxxx tape backup 08/31/95 S/L 5 534 0 374 107 53 8
00238 Projector w/case 08/01/96 S/L 7 4,503 0 1,608 643 2,252 49
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 29,204 0 21,436 3,817 3,951 256
00116 HP 4L LASER PRINT-XXXXXX 09/13/93 S/L 5 855 0 855 0 0 0
00149 HP4 LASER PRINTER-XXXXXX 03/04/94 S/L 5 1,465 0 1,318 147 0 0
00177 HP laserjet printer 03/31/95 S/L 5 1,454 0 1,018 291 145 27
00200 Computer 08/31/95 S/L 5 2,364 0 1,655 473 236 44
00201 Xxxxxxx xxx & xxxxx 00/00/00 X/X 0 000 0 683 195 98 19
00203 Network cabling 08/31/95 S/L 5 1,295 0 907 259 129 17
00207 Toshiba laptop w/case 12/01/95 S/L 5 2,623 0 1,837 525 261 41
00361 Gateway P133 w/3 GB Driv 02/10/97 MACRS 5 5 1,566 0 788 311 467 25
00363 Superstack II Hub 03/07/97 MACRS 5 5 780 0 380 160 240 17
00364 Xxxxxxx X0-000 PC 03/07/97 MACRS 5 5 1,795 0 873 369 553 28
00365 Xxxxxxx X0-000 PC 03/07/97 MACRS 5 5 1,795 0 873 369 553 28
00366 SCSI Fast 4.26GB 03/10/97 MACRS 5 5 976 0 475 200 301 13
00367 Xxxxxxx X0-000 PC 03/07/97 MACRS 5 5 1,795 0 873 369 553 28
00368 Xxxxxxx X0-000 03/07/97 MACRS 5 5 1,795 0 873 369 553 28
00369 HP 1600C Deskjet Printer 03/07/97 MACRS 5 5 1,359 0 662 279 418 26
00388 Toshiba 155CS Laptop 03/27/97 MACRS 5 5 1,332 0 626 282 424 18
00435 TOSHIBA 430 CDT LAPTOP 09/16/97 MACRS 5 5 1,912 0 994 367 551 26
00569 Sharp proxima projector 01/08/99 MACRS 5 5 3,746 0 0 749 2,997 67
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 29,883 0 15,690 5,714 8,479 452
======= === ====== ===== ====== ===
LOCATION XXXX TOTAL 66,564 0 44,087 10,006 12,471 710
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Ogden, UT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00034 PHONE SYSTEM-OGDEN 08/20/93 S/L 6 1,509 0 1,385 124 0 0
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 1,509 0 1,385 124 0 0
00090 MISC FURN-OGDEN 08/09/93 S/L 7 4,401 0 3,459 629 313 57
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 4,401 0 3,459 629 313 57
00328 Laptop 100CS 810MB 01/15/97 MACRS 5 5 1,527 0 794 293 440 29
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 1,527 0 794 293 440 29
======= === ====== ===== ====== ===
LOCATION OGDEN TOTAL 7,437 0 5,638 1,046 753 86
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Provo, UT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00001 Brother Fax Machine 02/28/95 S/L 5 780 0 546 000 00 00
00064 RICOH FAX 2500-PROVO 09/08/93 S/L 5 1,971 0 1,971 0 0 0
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 2,751 0 2,517 156 78 13
00093 MISC FURN-PROVO 08/09/93 S/L 7 4,727 0 3,713 675 339 59
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 4,727 0 3,713 675 339 59
======= === ====== ===== ====== ===
LOCATION PROVO TOTAL 7,478 0 6,230 831 417 72
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Provo, UT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
Resource Center
00010 Brother Fax machine 05/31/95 S/L 5 780 0 546 000 00 00
00042 PHONE SYSTEM UPGRADE 12/01/94 S/L 6 6,522 0 4,892 1,000 000 00
00058 FAX 01/01/89 MACRS 5 5 1,460 0 1,460 0 0 0
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 8,762 0 6,898 1,243 621 99
00183 Shelving/counter top 06/30/95 S/L 7 2,985 0 1,491 426 1,068 30
00191 Workstations 12/01/95 S/L 7 3,445 0 1,722 492 1,231 41
00194 Resource Center walls 12/04/95 S/L 7 3,334 0 1,666 476 1,192 36
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 9,764 0 4,879 1,394 3,491 107
00105 HP 4L LASER PRINTER 12/29/93 S/L 5 699 0 699 0 0 0
00222 Gateway pentium 12/01/95 S/L 5 2,395 0 1,677 479 239 39
00333 HP 5 Laser Printer 01/24/97 MACRS 5 5 1,299 0 654 258 387 16
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 4,393 0 3,030 737 626 55
======= === ====== ===== ====== ===
LOCATION RES TOTAL 22,919 0 14,807 3,374 4,738 261
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
St. Xxxxxx, UT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00071 FAX-ST XXXXXX 06/01/94 S/L 5 532 0 477 55 0 0
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 532 0 477 55 0 0
======= === ====== ===== ====== ===
LOCATION SGEOR TOTAL 532 0 477 55 0 0
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Spokane, WA
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00080 Phones 01/01/96 S/L 5 643 0 322 129 192 8
00114 Brother 4400 Fax 04/01/96 S/L 5 973 0 487 195 291 19
------- --- ------ ----- ------ ---
15 - FAX MACHINES/PHONES 1,616 0 809 324 483 27
00200 Display Unit w/lights 09/01/96 S/L 7 1,197 0 427 171 599 17
00231 Camcorder 01/01/96 S/L 4 432 0 270 108 54 9
00232 TV/VCR 01/01/96 S/L 4 304 0 190 76 38 10
00233 Furniture 01/01/96 S/L 5 1,058 0 530 212 316 14
00234 Copier 01/01/96 S/L 4 774 0 485 194 95 18
00235 Desks 01/01/96 S/L 5 744 0 372 149 223 17
00404 Proxima Projector & Case 10/31/97 MACRS 5 5 3,023 0 1,572 580 871 52
00500 modular reception desk 05/05/98 MACRS 5 5 2,586 0 517 828 1,241 69
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 10,118 0 4,363 2,318 3,437 206
00050 Gateway P5-133 12/01/96 S/L 5 1,904 0 952 381 571 29
00140 Computer 01/01/96 S/L 4 3,086 0 1,930 772 384 68
00141 Computer 01/01/96 S/L 3 893 0 745 148 0 16
00142 Computer 01/01/96 S/L 3 740 0 617 123 0 13
00178 486 computer 03/31/95 S/L 5 1,575 0 1,103 315 157 29
00251 Gateway P4D-66 Computer 01/01/96 S/L 5 1,195 0 598 239 358 19
00264 Toshiba 486 Laptop- (Art) 05/01/96 S/L 5 1,475 0 738 295 442 20
00265 Toshiba 486 Laptop- Xxxx 05/01/96 S/L 5 1,475 0 738 295 442 20
00403 Windows NT Server 4.0 07/07/97 MACRS 5 5 687 0 357 132 198 11
00406 Closeout P90 07/12/97 MACRS 5 5 750 0 390 144 216 12
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 13,780 0 8,168 2,844 2,768 237
======= === ====== ===== ====== ===
LOCATION SPOK TOTAL 25,514 0 13,340 5,486 6,688 470
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
West Valley City, UT
Sec179 Prior Yr Current Annual Depr
Num Description Date Svc Method Lf Cost Bonus Accum Dep Year Dep Net Book Cur Per 1
00322 Sofa Sleeper - Blue 01/06/97 MACRS 7 7 563 0 218 99 246 11
------- --- ------ ----- ------ ---
35 - FURNITURE & EQUIPMENT 563 0 218 99 246 11
00220 Toshiba laptop 12/01/95 S/L 5 2,612 0 1,827 522 263 38
------- --- ------ ----- ------ ---
40 - COMPUTERS/PRINTERS/WIRING 2,612 0 1,827 522 263 30
======= === ====== ===== ====== ===
LOCATION WVC TOTAL 3,175 0 2,045 621 509 49
VRI
DEPRECIATION SCHEDULE BY LOCATION
For the Fiscal Year through 12/31/99
Book Schedule
Report Totals By Year
Sec179 Prior Yr Current
Cost Bonus Accum Dep Year Dep
Calendar Year 1999 466,128 0 0 136,650
========= === ====== ========
** Report Totals ** 466,128 0 0 136,650
SCHEDULE 5.01(T)(I)
Indebtedness of Obligors
See Attached
Schedule 5.01(t)(i)
American Psych Systems, Inc.
Schedule of Outstanding Indebtedness 7/31/00
Total Debt
@ 7/31/00
-----------
Bank of America (Psyc Systems Holdings, Inc. and the Guarantors defined
as such in the Credit Agreement, dated December 23, 1998)
Line of Credit $ 2,500,000
Acquisition Line 5,850,000
Term Loan 5,200,000
-----------
Gross loan 13,550,000
Letters of Credit 1,036,000
-----------
Subtotal 14,586,000
VRI - Olympic 75,552
-----------
Total Debt $14,661,552
===========
Intercompany Debt:
APS Holdings Due to APS Puerto Rico $ 384,113
===========
