AMENDMENT NO. 3 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT originally dated as of March 25, 2004 by and among THE ENSIGN GROUP, INC., ENSIGN WHITTIER WEST LLC, ENSIGN WHITTIER EAST LLC, ENSIGN SANTA ROSA LLC, ENSIGN PANORAMA LLC, ENSIGN...
Exhibit 10.21
$20,000,000.00
AMENDMENT NO. 3 TO
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
originally dated as of March 25, 2004 by and among
THE ENSIGN GROUP, INC., ENSIGN WHITTIER WEST LLC,
ENSIGN WHITTIER EAST LLC, ENSIGN SANTA XXXX LLC, ENSIGN PANORAMA LLC, XXXXXX
XXXXXX LLC, ENSIGN SAN DIMAS LLC, ENSIGN XXXXXXXXXX LLC,
ENSIGN PALM I LLC, ENSIGN SONOMA LLC, ENSIGN CLOVERDALE LLC,
ENSIGN XXXXXXX LLC, ENSIGN PLEASANTON LLC,
00XX XXXXXX HEALTHCARE ASSOCIATES LLC,
GLENDALE HEALTHCARE ASSOCIATES LLC,
ATLANTIC MEMORIAL HEALTHCARE ASSOCIATES, INC.,
XXXX XXXX HEALTHCARE ASSOCIATES, INC.,
LEMON GROVE HEALTH ASSOCIATES LLC,
PRESIDIO HEALTH ASSOCIATES LLC, XXXX VILLA CARE ASSOCIATES LLC,
XXXXXX COMMUNITY CARE LLC, XXXXX XXXXXXXX HEALTHCARE LLC,
WEST ESCONDIDO HEALTHCARE LLC, REDBROOK HEALTHCARE ASSOCIATES LLC,
HB HEALTHCARE ASSOCIATES LLC, NORTH MOUNTAIN HEALTHCARE LLC,
PARK WAVERLY HEALTHCARE LLC, SUNLAND HEALTH ASSOCIATES LLC,
VISTA XXXXX HEALTH ASSOCIATES LLC, CITY HEIGHTS HEALTH ASSOCIATES LLC,
CLAREMONT FOOTHILLS HEALTH ASSOCIATES LLC,
C STREET HEALTH ASSOCIATES LLC, XXXXXXXX XXXXXXX HEALTHCARE LLC
RADIANT HILLS HEALTH ASSOCIATES LLC, HIGHLAND HEALTHCARE LLC,
GATE THREE HEALTHCARE LLC, SOUTHLAND MANAGEMENT LLC,
MANOR PARK HEALTHCARE LLC, NORTHERN OAKS HEALTHCARE, INC.,
SALADO CREEK SENIOR CARE, INC., MCALLEN COMMUNITY HEALTHCARE, INC.,
WELLINGTON HEALTHCARE, INC.
(collectively, "Borrower")
and
GENERAL ELECTRIC CAPITAL CORPORATION
("Lender")
Amended as of June 22, 2007
AMENDMENT NO. 3 TO AMENDED AND
RESTATED LOAN AND SECURITY AGREEMENT
THIS AMENDMENT NO. 3 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this "Amendment") is made as of this 22nd day of June 2007, by and among THE ENSIGN GROUP, INC., a Delaware corporation, ENSIGN WHITTIER WEST LLC, a Nevada limited liability company, ENSIGN WHITTIER EAST LLC, a Nevada limited liability company, ENSIGN SANTA XXXX LLC, a Nevada limited liability company, and ENSIGN PANORAMA LLC, a Nevada limited liability company, XXXXXX XXXXXX LLC, a Nevada limited liability company, ENSIGN SAN DIMAS LLC, a Nevada limited liability company, ENSIGN XXXXXXXXXX LLC, a Nevada limited liability company, ENSIGN CLOVERDALE LLC, a Nevada limited liability company, ENSIGN PALM I LLC, a Nevada limited liability company, ENSIGN SONOMA LLC, a Nevada limited liability company, ENSIGN XXXXXXX LLC, a Nevada limited liability company, ENSIGN PLEASANTON LLC, a Nevada limited liability company, 00xx XXXXXX HEALTHCARE ASSOCIATES LLC, a Nevada limited liability company, GLENDALE HEALTHCARE ASSOCIATES LLC, a Nevada limited liability company, ATLANTIC MEMORIAL HEALTHCARE ASSOCIATES, INC., a Nevada corporation, and XXXX XXXX HEALTHCARE ASSOCIATES, INC., a Nevada corporation, LEMON GROVE HEALTH ASSOCIATES LLC, a Nevada limited liability company, PRESIDIO HEALTH ASSOCIATES LLC, a Nevada limited liability company, XXXX VILLA CARE ASSOCIATES LLC, a Nevada limited liability company, XXXXXX COMMUNITY CARE LLC, a Nevada limited liability company, XXXXX XXXXXXXX HEALTHCARE LLC, a Nevada limited liability company, WEST ESCONDIDO HEALTHCARE LLC, a Nevada limited liability company, REDBROOK HEALTHCARE ASSOCIATES LLC, a Nevada limited liability company, HB HEALTHCARE ASSOCIATES LLC, a Nevada limited liability company, NORTH MOUNTAIN HEALTHCARE LLC, a Nevada limited liability company, PARK WAVERLY HEALTHCARE LLC, a Nevada limited liability company, SUNLAND HEALTH ASSOCIATES LLC, a Nevada limited liability company, VISTA XXXXX HEALTH ASSOCIATES LLC, a Nevada limited liability company, CITY HEIGHTS HEALTH ASSOCIATES LLC, a Nevada limited liability company, CLAREMONT FOOTHILLS HEALTH ASSOCIATES LLC, a Nevada limited liability company, C STREET HEALTH ASSOCIATES LLC, a Nevada limited liability company, and XXXXXXXX XXXXXXX HEALTHCARE LLC, a Nevada limited liability company, RADIANT HILLS HEALTH ASSOCIATES LLC, a Nevada limited liability company, HIGHLAND HEALTHCARE LLC, a Nevada limited liability company, GATE THREE HEALTHCARE LLC, a Nevada limited liability company, SOUTHLAND MANAGEMENT LLC, Nevada limited liability company, MANOR PARK HEALTHCARE LLC, a Nevada limited liability company, NORTHERN OAKS HEALTHCARE, INC., a Nevada corporation, SALADO CREEK SENIOR CARE, INC., a Nevada corporation, McALLEN COMMUNITY HEALTHCARE, INC., a Nevada corporation, WELLINGTON HEALTHCARE, INC., a Nevada corporation (collectively "Borrower"), and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation ("Lender").
RECITALS
A. Pursuant to that certain Amended and Restated Loan and Security Agreement dated as of March 25, 2004 by and between Borrower and Lender (as amended, modified and restated from time to time, the "Loan Agreement"), the parties have established certain financing arrangements that allow funds to be borrowed from Lender in accordance with the terms and conditions set forth in the Loan Agreement.
B. The parties now desire to amend the Loan Agreement in accordance with the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed to the following amendments to the Loan Agreement. Capitalized terms used but not defined in this Amendment shall have the meanings that are set forth in the Loan Agreement.
1. Amendment to Loan Agreement Section 2.8(a) of the Loan Agreement is hereby amended by deleting the existing Section 2.8(a) in its entirety and by inserting in lieu thereof the following new Section 2.8(a):
"(a) Subject to Lender's right to cease making Revolving Credit Loans to Borrower upon or after any Event of Default, this Agreement shall be in effect until August 1, 2007, unless terminated as provided in this Section 2.8 (the "Term"); provided, however, that notwithstanding anything set forth in this Agreement to the contrary (including, without limitation, Section 6.23), in no event shall Borrower be entitled to terminate this Agreement prior to the repayment in full of all amounts owed to Lender pursuant to the Real Estate Loan Documents."
2. Confirmation of Representations and Warranties. Borrower hereby (a) confirms that all of the representations and warranties set forth in Article IV of the Loan Agreement are true and correct, and (b) specifically represents and warrants to Lender that it has good and marketable title to all of its respective Collateral, free and clear of any lien or security interest in favor of any other person or entity, except as identified in Schedule 1.39 and Schedule 4.19 to the Loan Agreement, each as updated, and as otherwise permitted pursuant to the Loan Agreement.
3. Effective Date. This Amendment shall be effective Lender's receipt of this Amendment executed by a duly authorized member and/or officer of each Borrower.
4. Fees and Expenses Borrower shall be responsible for the payment of all costs and expenses incurred by Lender in connection with the preparation of this Amendment including any and all fees and expenses of Lender's in-house counsel.
5. Updated Schedules. As a condition precedent to Lender's agreement to enter into this Amendment, and in order for this Amendment to be effective, Borrower shall revise, update and deliver to Lender all Schedules to the Loan Agreement to update all information as necessary to make the Schedules previously delivered correct. Borrower hereby represents and warrants that the information set forth on the attached Schedules is true and correct as of the date of this Amendment. The attached Schedules are hereby incorporated into the Loan Agreement as if originally set forth therein.
6. Enforceability. This Amendment constitutes the legal, valid and binding obligation of each Borrower and is enforceable against each such Borrower in accordance with its terms.
7. Reference to the Effect on the Loan Agreement.
(a) Upon the effectiveness of this Amendment, each reference in the Loan Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of similar import shall mean and be a reference to the Loan Agreement as amended by this Amendment.
(b) Except as specifically amended above, the Loan Agreement and all other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.
(c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided in this Amendment, operate as a waiver of any right, power or remedy of Lender, nor constitute a waiver of any provision of the Loan Agreement or any other documents, instruments and agreements executed or delivered in connection with the Loan Agreement.
(d) This Amendment (together with any other document executed in connection herewith) is not intended to be, nor shall it be construed as, a novation of the Loan Agreement.
8. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Maryland.
9. Headings. Section headings in this Amendment are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
10. Counterparts. This Amendment may be executed in counterparts, and such counterparts taken together shall be deemed to constitute one and the same instrument.
[SIGNATURES FOLLOW]
IN WITNESS WHEREOF, intending to be legally bound, the parties have caused this Amendment to be executed as of the date first written above.
| LENDER: | ||||||
GENERAL ELECTRIC CAPITAL CORPORATION a Delaware corporation |
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By: |
/s/ XXXXXXX XXXXXX |
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| Name: | Xxxxxxx Xxxxxx | |||||
| Title: | Duly Authorized Signatory | |||||
| BORROWER: | ||||||
ATTEST/WITNESS: |
THE ENSIGN GROUP, INC. a Delaware corporation |
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By: |
/s/ XXXX X. XXXXXX, Xxxx X. Xxxxxx Vice President |
By: |
/s/ XXXXXXXXXXX X. XXXXXXXXXXX Xxxxxxxxxxx X. Xxxxxxxxxxx President |
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ENSIGN WHITTIER WEST LLC ENSIGN WHITTIER EAST LLC ENSIGN PANORAMA LLC LEMON GROVE HEALTH ASSOCIATES LLC XXXX VILLA CARE ASSOCIATES LLC XXXXXX COMMUNITY CARE LLC XXXXX XXXXXXXX HEALTHCARE LLC WEST ESCONDIDO HEALTHCARE LLC HB HEALTHCARE ASSOCIATES LLC VISTA XXXXX HEALTH ASSOCIATES LLC CITY HEIGHTS HEALTH ASSOCIATES LLC C STREET HEALTH ASSOCIATES LLC XXXXXXXX XXXXXXX HEALTH CARE LLC GATE THREE HEALTHCARE LLC SOUTHLAND MANAGEMENT LLC MANOR PARK HEALTHCARE LLC each, a Nevada limited liability company |
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ATTEST/WITNESS: |
By: |
The Flagstone Group, Inc. Its Sole Member |
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By: |
/s/ SOON XXXXXX Soon Xxxxxx Treasurer |
By: |
/s/ V. XXX XXXXX, V. Xxx Xxxxx President |
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ENSIGN SANTA XXXX LLC ENSIGN XXXXXXXXXX LLC ENSIGN CLOVERDALE LLC ENSIGN SONOMA LLC ENSIGN XXXXXXX LLC ENSIGN PLEASANTON LLC each, a Nevada limited liability company |
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ATTEST/WITNESS: |
By: |
Northern Pioneer Healthcare, Inc. Its Sole Member |
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By: |
/s/ SOON XXXXXX Soon Xxxxxx Treasurer |
By: |
/s/ XXXX X. XXXXXXX Xxxx X. Xxxxxxx President |
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ENSIGN SAN DIMAS LLC ENSIGN PALM I LLC REDBROOK HEALTHCARE ASSOCIATES LLC CLAREMONT FOOTHILLS HEALTH ASSOCIATES LLC each, a Nevada limited liability company |
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ATTEST/WITNESS: |
By: |
Touchstone Care, Inc. Its Sole Member |
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By: |
/s/ SOON XXXXXX Soon Xxxxxx Treasurer |
By: |
/s/ XXXX XXXXXXXXXXX Xxxx Xxxxxxxxxxx President |
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XXXXXX XXXXXX LLC 00XX XXXXXX HEALTHCARE ASSOCIATES LLC GLENDALE HEALTHCARE ASSOCIATES LLC PRESIDIO HEALTH ASSOCIATES LLC NORTH MOUNTAIN HEALTHCARE LLC PARK WAVERLY HEALTHCARE LLC SUNLAND HEALTH ASSOCIATES LLC RADIANT HILLS HEALTH ASSOCIATES LLC HIGHLAND HEALTHCARE LLC each, a Nevada limited liability company |
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ATTEST/WITNESS: |
By: |
Bandera Healthcare, Inc. Its Sole Member |
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By: |
/s/ SOON XXXXXX Soon Xxxxxx Treasurer |
By: |
/s/ XXXXXXX X. XXXXXX Xxxxxxx X. Xxxxxx President |
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ATLANTIC MEMORIAL HEALTHCARE ASSOCIATES, INC. XXXX XXXX HEALTHCARE ASSOCIATES, INC. |
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| ATTEST/WITNESS: | each, a Nevada corporation | |||||
By: |
/s/ SOON XXXXXX Soon X. Xxxxxx |
By: |
/s/ XXXXXXXXXXX X. XXXXXXXXXXX Xxxxxxxxxxx X. Xxxxxxxxxxx President |
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NORTHERN OAKS HEALTHCARE, INC. SALADO CREEK SENIOR CARE, INC. MCALLEN COMMUNITY HEALTHCARE, INC. WELLINGTON HEALTHCARE, INC. |
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| ATTEST/WITNESS: | each, a Nevada corporation | |||||
By: |
/s/ SOON XXXXXX Soon X. Xxxxxx |
By: |
/s/ XXXXXXXXXXX X. XXXXXXXXXXX Xxxxxxxxxxx X. Xxxxxxxxxxx President |
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LIST OF SCHEDULES
Schedule 1.39—Permitted Liens
Schedule 4.1—Subsidiaries
Schedule 4.5—Litigation
Schedule 4.13—Non-Compliance with Law
Schedule 4.14—Environmental Matters
Schedule 4.15—Places of Business with patient census
Schedule 4.16—Licenses
Schedule 4.17—Stock Ownership
Schedule 4.19—Borrowings and Guarantees
Schedule 4.21—Trade Names
Schedule 4.22—Joint Ventures
Schedule 7.12—Transactions with Affiliates
