<PAGE>
EXHIBIT 10.6
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
---------------------------------x
:
In re: Chapter 11
:
VENCOR, INC., et al., Case No. 99 3199(MFW)
-- --
: through 99-3327(MFW)
Debtors. : (Jointly Administered)
:
---------------------------------x
STIPULATION AND ORDER
---------------------
This stipulation and order (the "Stipulation and Order") is entered
into as of the date set forth below by and among the above-captioned debtors and
debtors-in-possession (collectively, the "Debtors"), and Ventas, Inc., on behalf
of itself and each of Ventas Realty, Limited Partnership and Ventas LP Realty,
L.L.C. (collectively, "Ventas," and, together with the Debtors, the "Parties").
WHEREAS, on May 1, 1998, Ventas, Inc. effected a corporate
reorganization (the "1998 Spin Off") pursuant to which Ventas, Inc. (then known
as Vencor, Inc.) was separated into two publicly held corporations. A new
corporation, subsequently renamed Vencor, Inc., was formed to operate the
hospital, nursing center and ancillary services businesses. The continuing
corporation, now known as Ventas, Inc., continued to hold title to substantially
all of the real property; and
WHEREAS, the 1998 Spin Off was effected through an Agreement and Plan
of Reorganization by and between Vencor, Inc. (now Ventas, Inc.) and Vencor
Healthcare, Inc. (now Vencor, Inc.) dated as of April 30, 1998 and related
agreements (the "Reorganization Agreements"); and
<PAGE>
WHEREAS, the Debtors, Ventas, Inc. and Ventas Realty, Limited
Partnership are parties to a stipulation, dated September 13, 1999 (the "Rent
and Reorganization Stip"), governing, among other things, the payment of rent
and performance under the Reorganization Agreements by the Debtors during the
pendency of the chapter 11 cases and the period in which the Rent and
Reorganization Stip is in force and effect; and
WHEREAS, the Rent and Reorganization Stip remains in full force and
effect; and
WHEREAS, on September 15, 1999, Ventas, Inc. filed its 1998
consolidated federal income tax return (the "Consolidated Return"); and
WHEREAS, pursuant to the Consolidated Return, on February 3, 2000,
Ventas received a tax refund in the total amount of $26,609,865.60 (comprised of
$25,349,528.00 in tax and $1,260,337.60 in interest) (the "Federal Refund
Proceeds"); and
WHEREAS, the Tax Refunds/1/ received by Ventas prior to the date
hereof are listed on Exhibit A hereto (such Tax Refunds listed on Exhibit A
(which includes the Federal Refund Proceeds) and any Tax Refunds received by
Ventas on or after the date hereof, together with the Interest Amount/2/
thereon, are collectively referred to herein as the "Ventas Refund Proceeds");
and
____________________
/1/ For purposes of this Stipulation and Order, "Tax Refunds" shall mean all
refunds received (including those endorsed over by one Party to the other
Party in which case such refund shall be deemed received by the Party to
which the refund was endorsed over) on or after September 13, 1999, in
respect of federal, state or local property, franchise, income, excise,
sales and use, and similar business taxes previously paid for tax years
ending prior to or including April 30, 1998; provided, however, that Tax
Refunds shall not include the refund of over payments or estimated taxes to
the extent such over payments or estimated taxes were paid by a Party after
April 30, 1998 and subsequently refunded by the applicable tax authority.
/2/ For purposes of this Stipulation and Order, "Interest Amount" shall mean,
with respect to a Tax Refund, interest on the Tax Refund computed at the
lesser of (a) the actual interest
-2-
<PAGE>
WHEREAS, simultaneously with the execution hereof, Ventas has
delivered to the Debtors a list of the Pre-Spin Refunds/3/ received by Ventas;
and
WHEREAS, the Tax Refunds received by the Debtors prior to the date
hereof are listed on Exhibit B hereof (such Tax Refunds listed on Exhibit B and
the Tax Refunds received by the Debtors on or after the date hereof, together
with the Interest Amount thereon, are collectively referred to herein as the
"Vencor Refund Proceeds" and together with the Ventas Refund Proceeds, are
referred to as the "Refund Proceeds"); and
WHEREAS, simultaneously with the execution hereof, the Debtors have
delivered to Ventas a list of the Pre-Spin Refunds received by the Debtors; and
WHEREAS, Ventas asserts that it is entitled to the Refund Proceeds on
various legal grounds, including, without limitation, pursuant to the express
terms of the Reorganization Agreements and, alternatively, that any claim of the
Debtors to the Refund Proceeds is subject to, without limitation, recoupment,
setoff and other defenses and claims of or by Ventas under the Reorganization
Agreements and the Rent and Reorganization Stip; and
WHEREAS, the Debtors assert that they are entitled to the Refund
Proceeds on various legal grounds; and
________________
earned, and (b) 3% annual interest, for the period during which such Tax
Refund is deposited in a Ventas Account or Vencor Account (as such terms
are defined below) as the case may be.
/3/ For purposes of this Stipulation and Order, "Pre-Spin Refunds" shall mean
all refunds received (including those endorsed over by one Party to the
other Party in which case such refund shall be deemed received by the Party
to which the refund was endorsed over) on or after January 1, 1999, but
prior to September 13, 1999, in respect of federal, state or local
property, franchise, income, excise, sales and use, and similar business
taxes previously paid for tax years ending prior to or including April 30,
1998; provided, however, that Pre-Spin Refunds shall not include the refund
of over payments or estimated taxes to the extent such over payments or
estimated taxes were paid by a Party after April 30, 1998 and subsequently
refunded by the applicable tax authority.
-3-
<PAGE>
WHEREAS, each Party seeks to protect the Refund Proceeds pending
resolution of the rights of the Parties.
NOW, THEREFORE, IT IS STIPULATED AND AGREED by and between the Parties
that:
1. In the event that the Bankruptcy Court fails to approve this
Stipulation and Order on or before May 31, 2000, or such approval is
subsequently modified, rescinded or stayed, this Stipulation and Order shall
automatically terminate and be of no force and effect. Pending approval of the
Bankruptcy Court as referenced in the preceding sentence, either Party may
terminate this Stipulation and Order by providing one business day's notice
(which may be by facsimile transmission) to the other Party.
2. The Ventas Refund Proceeds shall be deposited in one or
more segregated interest-bearing accounts at a federally insured depository
institution in the name of Ventas, Inc. or Ventas Realty, Limited Partnership;
provided, however, that all or a portion of the Ventas Refund Proceeds may be
invested in a commercially reasonable manner so long as any investment of the
Ventas Refund Proceeds remains segregated from the other investments of Ventas,
Inc. and Ventas Realty, Limited Partnership (any such depository or investment
account or other investment of Ventas Refund Proceeds, a "Ventas Account").
Ventas shall provide the Debtors with notice within two business days after (a)
the opening of a Ventas Account (which notice shall specify the location of the
Ventas Account, including the account number); and/or (b) the receipt of a Tax
Refund (which notice shall specify the amount of the Tax Refund, the Ventas
Account into which such Ventas Refund Proceeds have been deposited and the facts
and circumstances giving rise to the Tax Refund and include a copy of the refund
claim). Upon request of the Debtors, Ventas shall promptly (which in no case
shall exceed two business days) provide the Debtors with the monthly written
account statements received by Ventas for each of
-4-
<PAGE>
the Ventas Accounts, it being understood that Ventas may redact any information
that is unrelated to the Ventas Accounts. If all or any portion of the Ventas
Refund Proceeds are transferred between Ventas Accounts, Ventas shall promptly
provide written notice (which in no case shall exceed two business days) to the
Debtors of the Ventas Account into which the Ventas Refund Proceeds (or portion
thereof) have been transferred. This Stipulation and Order and the terms and
conditions hereof, including the establishment and maintenance of a Ventas
Account, shall not be (a) deemed an admission by any Party in respect of any
matter whatsoever; (b) probative of the Parties' respective rights, if any, to
the Refund Proceeds or any portion thereof, including any principal or interest
component thereof; or (c) otherwise affect or impair any rights of the Parties.
3. The Vencor Refund Proceeds shall be deposited in one or
more segregated interest-bearing accounts at a federally insured depository
institution in the name of Vencor, Inc.; provided, however, that all or a
portion of the Vencor Refund Proceeds may be invested in a commercially
reasonable manner so long as investment of the Vencor Refund Proceeds remains
segregated from other investments of Vencor, Inc. and any of the other Debtors
(any such depository or investment account or other investment of Vencor Refund
Proceeds, a "Vencor Account"). The Debtors shall provide Ventas with notice
within two business days after (a) the opening of a Vencor Account (which notice
shall specify the location of the Vencor Account, including the account number);
and (b) the receipt of a Tax Refund (which notice shall specify the amount of
the Tax Refund, the Vencor Account into which such Vencor Refund Proceeds have
been deposited and the facts and circumstances giving rise to the Tax Refund and
include a copy of the refund claim). Upon request of Ventas, the Debtors shall
promptly (which in no case shall exceed two business days) provide Ventas with
the monthly written account statements received by the Debtors for each of the
Vencor Accounts, it being understood that the Debtors
-5-
<PAGE>
may redact any information that is unrelated to the Vencor Accounts. If all or
any portion of the Vencor Refund Proceeds are transferred between Vencor
Accounts, the Debtors shall promptly provide written notice (which in no case
shall exceed two business days) to Ventas of the Vencor Account into which the
Vencor Refund Proceeds (or portion thereof) have been transferred. This
Stipulation and Order and the terms and conditions hereof, including the
establishment and maintenance of a Vencor Account, shall not be (a) deemed an
admission by any Party in respect of any matter whatsoever; (b) probative of the
Parties' respective rights, if any, to the Refund Proceeds or any portion
thereof, including any principal or interest component thereof; or (c) otherwise
affect or impair any rights of the Parties.
4. Ventas or the Debtors, as the case may be, shall provide
notice (a "Notice") to the parties listed on Exhibit C by facsimile (receipt
confirmed) and overnight mail at least five (5) business days prior to
withdrawing the Refund Proceeds or any portion thereof (the "Waiting Period")
from a Ventas Account (in the case of Ventas) or a Vencor Account (in the case
of the Debtors); provided, however, that the foregoing shall not apply to the
extent that the Refund Proceeds are being transferred from one Ventas Account to
another Ventas Account or from one Vencor Account to another Vencor Account, in
which case paragraphs 2 and 3 hereof respectively shall govern; provided,
further, that the foregoing shall apply as modified below in the case of a Tax
Payment Withdrawal. A "Tax Payment Withdrawal" is a withdrawal by Ventas from a
Ventas Account or by the Debtors from a Vencor Account if such withdrawal is
made for the sole purpose of applying such amounts in payment of federal, state
or local property, franchise, income, excise, sales and use, withholding, or
similar tax liability, including interest and penalties, if any, for tax years
ending prior to or including April 30, 1998, up to the amount of the Refund
Proceeds then contained in the applicable Ventas or Vencor Account. Ventas shall
be permitted to make Tax Payment Withdrawals from Ventas Accounts and the
Debtors shall be
-6-
<PAGE>
permitted to make Tax Payment Withdrawals from Vencor Accounts upon such
withdrawing Party's delivery of Notice regarding any such withdrawal, which
shall include a copy of any applicable notice or other related documents and any
return or other form filed with the taxing authority in respect of the payment
made using the Tax Payment Withdrawal. Upon the expiry of any applicable Waiting
Period, the Party providing the Notice shall have no further obligations
pursuant to this Stipulation and Order respecting the use, maintenance, deposit
or investment of any portion of the Refund Proceeds that is the subject of such
Notice.
5. The Parties reserve all rights with respect to their claims,
defenses and contentions regarding the Refund Proceeds except as expressly
provided in paragraph 6 hereof.
6. Nothing in this Stipulation and Order shall constitute admissions
by any of the Parties or shall be used in any subsequent litigation by the
Parties or any other person or entity other than for the purpose of enforcement
of this Stipulation and Order.
7. Without limiting the provisions of paragraph 4 hereof, any
notices to be sent in accordance with this Stipulation and Order will not be
effective unless sent to the following:
To Ventas:
General Counsel
Ventas, Inc.
4360 Brownsboro Road, Suite 115
Louisville, KY 40207-1642
Fax (502) 357-9029
David Peress, Esq.
Young Conaway Stargatt & Taylor
Rodney Square North, 11th Floor
Wilmington, DE 19899-0391
Fax (302) 571-1253
Myron Trepper, Esq. and
Michael J. Kelly, Esq.
Willkie Farr & Gallagher
787 Seventh Avenue
-7-
<PAGE>
New York, New York 10019
Fax (212) 728-8111
To the Debtors:
M. Suzanne Riedman, Esq., General Counsel
Vencor, Inc.
680 South Fourth Street
Louisville, KY 40202
Fax (502) 596-4075
William H. Sudell, Jr., Esq.
Morris, Nichols, Arscht & Tunnell
1201 North Market Street
P.O. Box 1347
Wilmington, Delaware 19899
Fax (302) 658-9200
Thomas J. Moloney, Esq. and
Lindsee P. Granfield, Esq.
Cleary, Gottlieb, Steen & Hamilton
One Liberty Plaza
New York, New York 10006
Fax (212) 225-3999
8. This Stipulation and Order shall be automatically
terminated, without further order of the Bankruptcy Court, on the earlier of the
dates on which: (a) the Rent and Reorganization Stip is terminated; and (b) the
Debtors provide notice pursuant to Paragraph 4(b) of the Rent and Reorganization
Stip.
-8-
<PAGE>
Dated: New York, New York
May __, 2000
CLEARY, GOTTLIEB, STEEN & HAMILTON
One Liberty Plaza
New York, New York 10006
(212) 225-2000
By:__________________________
Attorneys for Debtors
and Debtors in Possession
WILLKIE FARR & GALLAGHER
787 Seventh Avenue
New York, New York 10019
(212) 728-8000
By:__________________________
Attorneys for Ventas, Inc.
SO ORDERED this ____ day of May 2000:
______________________________
UNITED STATES BANKRUPTCY JUDGE
-9-
<PAGE>
EXHIBIT A
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Date From Regarding Federal ID
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
27-Sep-99 Marietta, Ohio Nationwide Care, Inc. 35-1871185
--------------------------------------------------------------------------------------------------------------------------------
18-Oct-99 Bowling Green, KY Vencor Kentucky, Inc. 61-1258030
--------------------------------------------------------------------------------------------------------------------------------
20-Oct-99 McCracken County, KY Vencor Kentucky, Inc. 61-1258030
--------------------------------------------------------------------------------------------------------------------------------
20-Oct-99 McCracken County, KY First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
21-Oct-99 Ashland, KY Vencor Kentucky, Inc. 61-1258030
--------------------------------------------------------------------------------------------------------------------------------
21-Oct-99 Elizabethtown, KY First Healthcare Corporation
--------------------------------------------------------------------------------------------------------------------------------
22-Oct-99 Chillicothe, OH First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
2-Nov-99 Madisonville, KY Vencor Kentucky, Inc. 61-1258030
--------------------------------------------------------------------------------------------------------------------------------
3-Nov-99 Village of Whitehouse First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
3-Nov-99 Hancock County, Kentucky Vencor Kentucky, Inc.
--------------------------------------------------------------------------------------------------------------------------------
5-Nov-99 Cambridge, OH Ventas, Inc. 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
8-Nov-99 Akron, Ohio First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
8-Nov-99 Cambridge, OH Nationwide Care, Inc. 35-1871185
--------------------------------------------------------------------------------------------------------------------------------
9-Nov-99 Mercer County, KY Vencor Kentucky, Inc.
--------------------------------------------------------------------------------------------------------------------------------
10-Nov-99 Logan, Ohio First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
10-Nov-99 Logan, Ohio Ventas, Inc. (fka Vencor, Inc.) 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
11-Nov-99 Bowling Green, KY First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
12-Nov-99 Owensboro, KY First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
12-Nov-99 Elizabethtown, KY Vencor Kentucky, Inc.
--------------------------------------------------------------------------------------------------------------------------------
15-Nov-99 Coshocton Ventas, Inc. 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
18-Nov-99 Morgantown Vencor Kentucky, Inc.
--------------------------------------------------------------------------------------------------------------------------------
22-Nov-99 Marion, OH First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
22-Nov-99 Springfield, OH Ventas, Inc. 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
22-Nov-99 Marion, OH Ventas, Inc. (fka Vencor, Inc.) 2100009359
--------------------------------------------------------------------------------------------------------------------------------
23-Nov-99 Summitt County Facility - Property Tax Refund From Protest
--------------------------------------------------------------------------------------------------------------------------------
1-Dec-99 Less fee for Property Tax Protest to Ambassador Research
--------------------------------------------------------------------------------------------------------------------------------
24-Nov-99 Toledo, OH First Healthcare Corporation 42-43-2780
--------------------------------------------------------------------------------------------------------------------------------
26-Nov-99 Connecticut Ventas, Inc. (FKA Vencor, Inc.) 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
2-Dec-99 Maryland Vencor Hospitals East, Inc. 61-1251013
--------------------------------------------------------------------------------------------------------------------------------
6-Dec-99 Lansing, MI First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
13-Dec-99 Lexington-Fayette Board of Ed. Vencor Kentucky, Inc. 61-1258030
--------------------------------------------------------------------------------------------------------------------------------
15-Dec-99 Dayton, OH Ventas, Inc. 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
15-Dec-99 Coshocton Nationwide Care, Inc. 35-1871185
--------------------------------------------------------------------------------------------------------------------------------
20-Dec-99 Louisiana First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
20-Dec-99 Cincinnati, OH Ventas, Inc. (fka Vencor, Inc.) 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
23-Dec-99 Wisconsin First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
27-Dec-99 Utah Vencor Inc. & Subsidiaries 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
27-Dec-99 Utah Ventas Inc. & Subsidiaries 61-1055020
--------------------------------------------------------------------------------------------------------------------------------
27-Dec-99 West Virginia Vencor Kentucky, Inc. 61-1258030
--------------------------------------------------------------------------------------------------------------------------------
29-Dec-99 Michigan First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
5-Jan-00 Newark, OH First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
10-Jan-00 Iowa First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
11-Jan-00 Louisiana Vencor Properties, Inc. 51-0352067
--------------------------------------------------------------------------------------------------------------------------------
21-Jan-00 Indiana Nationwide Care, Inc.
--------------------------------------------------------------------------------------------------------------------------------
21-Jan-00 Columbus/Canal Winchester, Ohio First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
21-Jan-00 Columbus, Ohio Vencor Hospital East, Inc. 61-1251013
--------------------------------------------------------------------------------------------------------------------------------
4-Feb-00 Alabama First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
16-Feb-00 Missouri First Healthcare Corporation 04-2432780
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Date Type AMOUNT
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
27-Sep-99 Marietta Income Tax Return 1,508.00
----------------------------------------------------------------------------------------------------------------
18-Oct-99 City Net Profit License Fee Return 737.00
----------------------------------------------------------------------------------------------------------------
20-Oct-99 Annual License Fee Return 851.00
----------------------------------------------------------------------------------------------------------------
20-Oct-99 Annual License Fee Return 475.00
----------------------------------------------------------------------------------------------------------------
21-Oct-99 Net Profit License Fee Return 2,073.00
----------------------------------------------------------------------------------------------------------------
21-Oct-99 Net Profits License Fee Return 301.00
----------------------------------------------------------------------------------------------------------------
22-Oct-99 Income Tax Return 859.00
----------------------------------------------------------------------------------------------------------------
2-Nov-99 Net Profit License Fee Return 478.00
----------------------------------------------------------------------------------------------------------------
3-Nov-99 Income Tax Return 600.00
----------------------------------------------------------------------------------------------------------------
3-Nov-99 Net Profit License Fee Return 25.00
----------------------------------------------------------------------------------------------------------------
5-Nov-99 Income Tax Return 45.00
----------------------------------------------------------------------------------------------------------------
8-Nov-99 Income Tax Return 1,600.00
----------------------------------------------------------------------------------------------------------------
8-Nov-99 Income Tax Return 1,000.00
----------------------------------------------------------------------------------------------------------------
9-Nov-99 Net Profits License Fee Return 157.19
----------------------------------------------------------------------------------------------------------------
10-Nov-99 Income Tax Return 1,113.00
----------------------------------------------------------------------------------------------------------------
10-Nov-99 Income Tax Return 111.00
----------------------------------------------------------------------------------------------------------------
11-Nov-99 City Net Profit License Fee Return 620.00
----------------------------------------------------------------------------------------------------------------
12-Nov-99 Net Profit License Fee Return 506.00
----------------------------------------------------------------------------------------------------------------
12-Nov-99 Net Profits License Fee Return 69.00
----------------------------------------------------------------------------------------------------------------
15-Nov-99 Income Tax Return 85.00
----------------------------------------------------------------------------------------------------------------
18-Nov-99 License Fee Division 727.00
----------------------------------------------------------------------------------------------------------------
22-Nov-99 Income Tax Return 1,074.00
----------------------------------------------------------------------------------------------------------------
22-Nov-99 Business Income Tax Return 396.00
----------------------------------------------------------------------------------------------------------------
22-Nov-99 Income Tax Return 200.00
----------------------------------------------------------------------------------------------------------------
23-Nov-99 Property Taxes 73,816.04
----------------------------------------------------------------------------------------------------------------
1-Dec-99 Fee paid consultant for lowering taxes related to above facility (36,854.10)
----------------------------------------------------------------------------------------------------------------
24-Nov-99 Income Tax Return 1,000.00
----------------------------------------------------------------------------------------------------------------
26-Nov-99 Combined Corporation Business Tax Return 18,331.00
----------------------------------------------------------------------------------------------------------------
2-Dec-99 Corporation Income Tax Return 1,151.00
----------------------------------------------------------------------------------------------------------------
6-Dec-99 Income Tax-1998 Corporation Return 403.00
----------------------------------------------------------------------------------------------------------------
13-Dec-99 Net Profits License Fee Return 478.00
----------------------------------------------------------------------------------------------------------------
15-Dec-99 City Income Tax Return 185.00
----------------------------------------------------------------------------------------------------------------
15-Dec-99 Income Tax Return 1,600.17
----------------------------------------------------------------------------------------------------------------
20-Dec-99 Corporation Income Tax Return 1,925.00
----------------------------------------------------------------------------------------------------------------
20-Dec-99 Income Tax Return 16.00
----------------------------------------------------------------------------------------------------------------
23-Dec-99 Corporation Franchise or Income Tax Return 82,617.00
----------------------------------------------------------------------------------------------------------------
27-Dec-99 06-95 to 05-96 Corporate Franchise Tax Resulting From Automatic NOL Carryback 33,829.00
----------------------------------------------------------------------------------------------------------------
27-Dec-99 06-96 to 12-96 Corporate Franchise Tax Resulting From Automatic NOL Carryback 15,306.00
----------------------------------------------------------------------------------------------------------------
27-Dec-99 Business Franchise Tax Return 11.00
----------------------------------------------------------------------------------------------------------------
29-Dec-99 Single Business Tax Annual Return 43,644.91
----------------------------------------------------------------------------------------------------------------
5-Jan-00 Business Tax Return 1,947.00
----------------------------------------------------------------------------------------------------------------
10-Jan-00 Iowa Corporate Income Tax Return 152.40
----------------------------------------------------------------------------------------------------------------
11-Jan-00 Louisiana Corporation Income Tax Return 626.00
----------------------------------------------------------------------------------------------------------------
21-Jan-00 Sales Tax Audit 15,638.64
----------------------------------------------------------------------------------------------------------------
21-Jan-00 City Income Tax Return / Business Return 1,921.00
----------------------------------------------------------------------------------------------------------------
21-Jan-00 City Income Tax Return / Business Return 3,500.00
----------------------------------------------------------------------------------------------------------------
4-Feb-00 Corporation Income Tax Return 18,693.15
----------------------------------------------------------------------------------------------------------------
16-Feb-00 Corporation Income Tax Return 9,350.25
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
EXHIBIT A
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Date From Regarding Federal ID
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
8-Mar-00 Georgia Ventas, Inc. (FKA Vencor, Inc.) 61-1055020
-----------------------------------------------------------------------------------------------------------
13-Mar-00 Lexington-Fayette Urban Co. Govt Vencor Kentucky, Inc. 61-1258030
-----------------------------------------------------------------------------------------------------------
30-Mar-00 Vermont Ventas, Inc. & Affiliates 61-1055020
-----------------------------------------------------------------------------------------------------------
3-Apr-00 Village of West Lafayette First Healthcare Corporation 04-2432780
-----------------------------------------------------------------------------------------------------------
3-Apr-00 North Carolina Ventas, Inc.
-----------------------------------------------------------------------------------------------------------
3-Apr-00 Maryland Vencor Hospital East, Inc. 61-1251013
-----------------------------------------------------------------------------------------------------------
3-Apr-00 Board of Commissioners - Pasco Co. Ventas Realty 99014053
-----------------------------------------------------------------------------------------------------------
17-Apr-00 North Carolina First Healthcare Corporation 04-2432780
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
SUBTOTAL
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
3-Feb-00 Federal Tax Refund
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
TOTAL
===========================================================================================================
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Date Type AMOUNT
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
8-Mar-00 Corporation Tax Returns 9,770.00
-----------------------------------------------------------------------------------------------------------
13-Mar-00 Net Profits License Fee Return 1,625.00
-----------------------------------------------------------------------------------------------------------
30-Mar-00 57,662.00
-----------------------------------------------------------------------------------------------------------
3-Apr-00 Corporation, Partnership or Fiduciary Income Tax Return 400.00
-----------------------------------------------------------------------------------------------------------
3-Apr-00 1998 Corporate Income Tax Refund 141.34
-----------------------------------------------------------------------------------------------------------
3-Apr-00 1998 Withholding 70.52
-----------------------------------------------------------------------------------------------------------
3-Apr-00 Refund of Solid Waste Refund for 1999 (Pasco County, Dade City, Florida) 53.26
-----------------------------------------------------------------------------------------------------------
17-Apr-00 Corporate Franchise and Income Tax Return 129,460.22
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
504,079.99
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
3-Feb-00 26,609,865.60
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
27,113,945.59
===========================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
REFUND ANALYSIS EXHIBIT B
Refunds from Tax Return Periods 5/1/98 and Prior
September 13, 1999 through May 22, 2000
REFUNDS REFUNDS REFUNDS REFUNDS REFUNDS
RECEIVED RECEIVED RECEIVED RECEIVED RECEIVED
DESCRIPTION @ 9/13 - 9/30/99 @ 10/31/99 @ 11/30/99 @ 12/31/99 @ 01/31/00
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCOME/FRANCHISE TAX REFUNDS:
IRS - Hillhaven Corp 33 0 0 0 0
IRS - Transitional Hospitals Corporation 143,067 0 0 0 0
IRS - TheraTx, Inc. 0 0 0 0 0
HAWAII - Theratx, Inc. 0 0 0 825 0
HAWAII - Vencare, Inc. 0 0 0 300 0
INDIANA - Vencor Home Hospice 0 0 0 15,281 0
INDIANA - Vencor Insurance Company 0 0 1,346 0 0
INDIANA - Ventech Systems, Inc. 451 0 0 0 0
IOWA - Vencare, Inc. 0 0 0 49,848 0
LOUISIANA - CPC of Louisisana, Inc. 4,888 0 0 0 0
LOUISIANA - Medisave Pharmacies, Inc. 0 0 0 0 39,970
ARIZONA - American X-Rays, Inc. Refund 178 0 0 0 0
INDIANA - Ventech Systems, Inc. Interest 31 0 0 0 0
LOUISIANA - CPC of La., Inc. - Interest 10 0 0 0 0
LOUISIANA - CPC of La., Inc. - Refund 223,935 0 0 0 0
TEXAS - Respiratory Care Services, Inc. - Refund 0 489 0 0 0
LOUISIANA - CPC of La., Inc. - Refund 0 1,289 0 0 0
TEXAS - Medisave Pharmacy, Inc. - Refund 0 0 31 0 0
MISSISSIPPI - CPC Properties of Ms., Inc. - Refund 0 0 4,584 0 0
HAWAII - Vencare, Inc. - Interest 0 0 0 2 0
HAWAII - Theratx, Inc. - Interest 0 0 0 6 0
INDIANA - Vencor Hospice, Inc. - Interest 0 0 0 2,670 0
IOWA - Vencare, Inc. - Interest 0 0 0 5,184 0
LOUISIANA - Medisave Pharmacy, Inc. - Interest 0 0 0 0 951
SOUTH CAROLINA - Vencare, Inc. - Interest 0 0 0 0 0
--------------------------------------------------------------------------------------------------------------------------------
Total Income/Franchise Tax Refunds Rec. 372,593 1,778 5,961 74,116 40,921
--------------------------------------------------------------------------------------------------------------------------------
SALES /USE TAX REFUNDS:
Indiana - Ventas 19,548
--------------------------------------------------------------------------------------------------------------------------------
Total Sales/Use Tax Refunds Received 0 19,548 0 0 0
--------------------------------------------------------------------------------------------------------------------------------
PROPERTY TAX REFUNDS:
Kentucky - TheraTx, Inc.
Illinois - Vencor Hospitals Illinois, Inc.
Massachusetts
Texas 15
Colorado 82
Colorado 1,704
Colorado 273
Colorado 4,430
Washington - First Healthcare Corporation 29,947
Washington - First Healthcare Corporation 31,687
Washington - First Healthcare Corporation 10,581
Washington - First Healthcare Corporation 37,909
Washington - First Healthcare Corporation 3,009
Washington - First Healthcare Corporation 10,074
Tennessee
Tennessee 240
--------------------------------------------------------------------------------------------------------------------------------
Total Property Tax Refunds Received 125,008 4,703 0 0 240
--------------------------------------------------------------------------------------------------------------------------------
Total Tax Refunds Received 497,601 26,029 5,961 74,116 41,161
================================================================================================================================
<CAPTION>
REFUNDS REFUNDS REFUNDS REFUNDS Total Refunds
RECEIVED RECEIVED RECEIVED RECEIVED Rec'd 9/13/99 to
DESCRIPTION @ 02/28/00 @ 03/31/00 @ 04/30/00 @ 05/01 - 05/22/00 05/22/00
---------------------------------------------------------------------------------------------------------------- ----------------
<S> <C> <C> <C> <C> <C>
INCOME/FRANCHISE TAX REFUNDS:
IRS - Hillhaven Corp 0 0 0 0 33
IRS - Transitional Hospitals Corporation 0 0 213,255 97,165 453,487
IRS - TheraTx, Inc. 1,330,682 0 0 0 1,330,682
HAWAII - Theratx, Inc. 0 0 0 0 825
HAWAII - Vencare, Inc. 0 0 0 0 300
INDIANA - Vencor Home Hospice 0 0 0 0 15,281
INDIANA - Vencor Insurance Company 0 0 0 0 1,346
INDIANA - Ventech Systems, Inc. 0 0 0 0 451
IOWA - Vencare, Inc. 0 0 0 0 49,848
LOUISIANA - CPC of Louisisana, Inc. 0 0 0 0 4,888
LOUISIANA - Medisave Pharmacies, Inc. 0 0 0 0 39,970
ARIZONA - American X-Rays, Inc. Refund 0 0 0 0 178
INDIANA - Ventech Systems, Inc. Interest 0 0 0 0 31
LOUISIANA - CPC of La., Inc. - Interest 0 0 0 0 10
LOUISIANA - CPC of La., Inc. - Refund 0 0 0 0 223,935
TEXAS - Respiratory Care Services, Inc. - Refund 0 0 0 0 489
LOUISIANA - CPC of La., Inc. - Refund 0 0 0 0 1,289
TEXAS - Medisave Pharmacy, Inc. - Refund 0 0 0 0 31
MISSISSIPPI - CPC Properties of Ms., Inc. - Refund 0 0 0 0 4,584
HAWAII - Vencare, Inc. - Interest 0 0 0 0 2
HAWAII - Theratx, Inc. - Interest 0 0 0 0 6
INDIANA - Vencor Hospice, Inc. - Interest 0 0 0 0 2,670
IOWA - Vencare, Inc. - Interest 0 0 0 0 5,184
LOUISIANA - Medisave Pharmacy, Inc. - Interest 0 0 0 0 951
SOUTH CAROLINA - Vencare, Inc. - Interest 0 0 1,343 0 1,343
---------------------------------------------------------------------------------------------------------------- ----------------
Total Income/Franchise Tax Refunds Rec. 1,330,682 0 214,598 97,165 2,137,814
---------------------------------------------------------------------------------------------------------------- ----------------
SALES /USE TAX REFUNDS:
Indiana - Ventas 19,548
---------------------------------------------------------------------------------------------------------------- ----------------
Total Sales/Use Tax Refunds Received 0 0 0 0 19,548
---------------------------------------------------------------------------------------------------------------- ----------------
PROPERTY TAX REFUNDS:
Kentucky - TheraTx, Inc.
Illinois - Vencor Hospitals Illinois, Inc. 11,127 11,127
Massachusetts 5,083 5,083
Texas 15
Colorado 82
Colorado 1,704
Colorado 273
Colorado 4,430
Washington - First Healthcare Corporation 29,947
Washington - First Healthcare Corporation 31,687
Washington - First Healthcare Corporation 10,581
Washington - First Healthcare Corporation 37,909
Washington - First Healthcare Corporation 3,009
Washington - First Healthcare Corporation 10,074
Tennessee 16,390 16,390
Tennessee 16,843 17,083
---------------------------------------------------------------------------------------------------------------- ----------------
Total Property Tax Refunds Received 16,210 0 33,233 0 179,394
---------------------------------------------------------------------------------------------------------------- ----------------
Total Tax Refunds Received 1,346,892 0 247,831 97,165 2,336,756
================================================================================================================ ================
</TABLE>
<PAGE>
Exhibit C
---------
Vencor Bank Group
-----------------
Mr. Houston Stebbins
Morgan Guaranty Trust Company
DIP Agent
60 Wall Street, 23/rd/ floor
New York, New York 10260
Karen Wagner, Esq.
Davis, Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
Joel B. Zweibel, Esq.
O'Melveny & Myers, LLP
Citicorp Center
153 E. 53/rd/ Street
New York, New York 10022
Official Committee of Unsecured Creditors
-----------------------------------------
Chaim J. Fortgang, Esq.
Wachtell, Lipton, Rosen & Katz
51 West 52/nd/ Street
New York, New York 10019
The Office of the United States Trustee
---------------------------------------
John D. McLaughlin, Jr., Esq.
Office of the U.S. Trustee
601 Walnut Street
The Curtis Center
Suite 950 West
Philadelphia, PA 19106
