<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO 13D-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(Amendment No. 3) (1)
MARINER POST-ACUTE NETWORK, INC.
(Name of Issuer)
COMMON STOCK
(Title of Class of Securities)
698940 10 3
(CUSIP Number)
ROBERT W. KADLEC
SIDLEY & AUSTIN
555 WEST FIFTH STREET
LOS ANGELES, CALIFORNIA 90013-1010
(213) 896-6072
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
JANUARY 5, 2000
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box / /.
NOTE: Schedules filed in paper format shall include a signed
original and five copies of the schedule, including all exhibits. SEE
Rule 13d-7(b) for other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 11 Pages)
- --------
(1) The remainder of this cover page shall be filled out for a
reporting a person's initial filing on this form with respect to the subject
class of securities, and for any subsequent amendment containing information
which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, SEE the
NOTES).
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------- --------------------------------------------------
CUSIP NO. 698940 10 3 13D Page 2 of 11 Pages
- --------------------------------------------------- --------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
APOLLO INVESTMENT FUND III, L.P.
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/ (b) / /
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ----------------------------------------------------------------------------------------------------------------------
NUMBER 7 SOLE VOTING POWER
OF 0
SHARES -----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,821
REPORTING -----------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,821
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON
2,821
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* / /
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
0.0%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------- --------------------------------------------------
CUSIP NO.698940 10 3 13D Page 3 of 11 Pages
- --------------------------------------------------- --------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
APOLLO UK PARTNERS III, L.P
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/ (b) / /
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED KINGDOM
- ----------------------------------------------------------------------------------------------------------------------
NUMBER 7 SOLE VOTING POWER
OF 0
SHARES ------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,821
REPORTING ------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,821
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON
2,821
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* / /
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
0.0%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------- --------------------------------------------------
CUSIP NO.698940 10 3 13D Page 4 of 11 Pages
- --------------------------------------------------- --------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
APOLLO OVERSEAS PARTNERS III, L.P
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/ (b) / /
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ----------------------------------------------------------------------------------------------------------------------
NUMBER 7 SOLE VOTING POWER
OF 0
SHARES ------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,821
REPORTING ------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,821
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON
2,821
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* / /
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
0.0%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------- --------------------------------------------------
CUSIP NO.698940 10 3 13D Page 5 of 11 Pages
- --------------------------------------------------- --------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
APOLLO MANAGEMENT, L.P.
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/ (b) / /
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ----------------------------------------------------------------------------------------------------------------------
NUMBER 7 SOLE VOTING POWER
OF 0
SHARES ------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,821
REPORTING ------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,821
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON
2,821
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* / /
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
0.0%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------- --------------------------------------------------
CUSIP NO.698940 10 3 13D Page 6 of 11 Pages
- --------------------------------------------------- --------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
APOLLO ADVISORS II, L.P.
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/ (b) / /
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ----------------------------------------------------------------------------------------------------------------------
NUMBER 7 SOLE VOTING POWER
OF 0
SHARES ------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,821
REPORTING ------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,821
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON
2,821
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* / /
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
0.0%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
This Amendment No. 3 (this "Amendment") relates to the Statement on
Schedule 13D dated November 4, 1997, as amended on April 24, 1998 and as amended
on December 23, 1999 and filed with the Securities and Exchange Commission on
behalf of Apollo Investment Fund III, L.P., a Delaware limited partnership
("Fund III"), Apollo UK Partners III, L.P., a limited partnership organized
under the laws of the United Kingdom ("UK Partners"), Apollo Overseas Partners
III, L.P., a Delaware limited partnership ("Overseas Partners," and together
with Fund III and UK Partners, the "Apollo Purchasers"), Apollo Advisors II,
L.P., a Delaware limited partnership ("Apollo Advisors") and Apollo Management,
L.P., a Delaware limited partnership ("Apollo Management") (collectively, the
"Reporting Entities"), with respect to the common stock, par value $0.01 per
share (the "Common Stock"), of Mariner Post-Acute Network, Inc., a Delaware
corporation (the "Issuer").
Item 3 is hereby amended to add the following:
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATIONS
As previously reported, pursuant to the Proxy and Voting Agreement,
dated as of November 4, 1997 (the "Voting Agreement"), Apollo Management was
granted a three year irrevocable proxy (the "Proxy") to vote the shares of
Common Stock (the "Proxy Shares") owned by Chase Equity Associates, L.P., a
California limited partnership ("Chase"), Healthcare Equity Partners, L.P., a
Delaware limited partnership ("Healthcare"), Healthcare Equity QP Partners,
L.P., a Delaware limited partnership ("Healthcare QP"), Key Capital
Corporation, a Delaware corporation ("Key"), Key Equity Partners 97, a
Delaware limited partnership ("Key Equity"), Drax Holdings, L.P., a Delaware
limited partnership ("Drax"), Walnut Growth Partners Limited Partnership, a
Delaware limited partnership ("Walnut"), and their respective successors and
assigns (collectively, the "Remaining Purchasers" and together with the
Apollo Purchasers, the "Purchasers") (including transferees) on matters as to
which the Remaining Purchasers are entitled to vote.
As previously reported, Apollo Management, the Apollo Purchasers,
Chase, Healthcare, Healthcare QP, Key, Key Equity, Drax and Walnut were all of
the parties to that certain Stockholders Agreement (the "Stockholders
Agreement") dated as of November 4, 1997, amended as of April 13, 1998 and
amended and restated as of November 25, 1998.
Pursuant to a Termination of Amended and Restated Stockholders
Agreement and Proxy and Voting Agreement, dated as of December 20, 1999 and
executed by all of the parties thereto on or before January 5, 2000
("Termination Agreement") by and among the Issuer, Apollo Management, the
Apollo Purchasers, Chase, Drax, Walnut, and Patrician Corporation (as the
successor to Healthcare, Healthcare QP, Key, Key Equity) (collectively, the
"Terminating Parties"), the Terminating Parties (i) terminated the Voting
Agreement and, thus, the Proxy and (ii) terminated the Stockholders
Agreement. Accordingly, the Reporting Entities no longer are entitled to
direct the voting of and are no longer the beneficial owners of the Proxy
Shares.
Page 7 of 11
<PAGE>
As previously reported, the Apollo Purchasers and Chase entered into
a Warrant Purchase Agreement, dated as of September 17, 1997, and on November
4, 1997, the Apollo Purchasers (on a pro rata basis) granted to Chase a
warrant (the "Warrant") evidencing the right to purchase a total of 592,593
shares of Common Stock (after giving effect to a 3-for-1 stock split
effective December 30, 1997) at a price of $0.00033 per share (after giving
effect to the stock split). Effective December 20, 1999, Chase exercised the
Warrant and, as a result, the Apollo Purchasers transferred 592,593 shares of
Common Stock of the Issuer to Chase (the "Chase Transfer"). In connection
therewith, Chase transferred 2,821 shares of Common Stock to the Apollo
Purchasers in payment of the Warrant exercise price. After giving effect to
the Termination Agreement and the Chase Transfer, the Apollo Purchasers are
the record owners of 2,821 shares of Common Stock, held as follows: 2,572
shares by Fund III, 95 shares by UK Partners and 154 shares by Overseas
Partners.
Item 4 is hereby amended to add the following:
ITEM 4. PURPOSE OF TRANSACTION
As a result of the Termination Agreement, the Apollo Purchasers are no
longer entitled to direct the voting of the Proxy Shares.
Item 5 is hereby amended to read in its entirety:
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) and (b)
The responses to Items 1 through 11 on the cover pages of this Schedule 13D are
incorporated herein. The Common Stock owned by the Apollo Purchasers is held
as follows: 2,572 shares by Fund III, 95 shares by UK Partners and 154 shares
by Overseas Partners.
(c) The responses to Items 3 and 4 of this Schedule 13D are incorporated herein.
(d) Not applicable.
(e) As of January 5, 2000, the Reporting Entities ceased to be the beneficial
owners of more than five percent of the Common Stock.
Item 6 is hereby amended to add:
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.
Page 8 of 11
<PAGE>
The responses to Items 3 and 4 of this Schedule 13D are incorporated
herein.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A: Termination of Amended and Restated Stockholders
Agreement and Proxy and Voting Agreement, dated as of
December 20, 1999.
Page 9 of 11
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of his knowledge and belief,
the undersigned certifies that the information set forth in this statement is
true, complete, and correct.
Dated as of this __ day of January, 2000.
APOLLO INVESTMENT FUND III, L.P.
By: Apollo Advisors II, L.P.,
Its General Partner
By: Apollo Capital Management II, Inc.,
Its General Partner
By: /s/ Michael D. Weiner
---------------------------------------
Name: Michael D. Weiner
Title: Vice President
APOLLO OVERSEAS PARTNERS III, L.P.
By: Apollo Advisors II, L.P.,
Its General Partner
By: Apollo Capital Management II, Inc.,
Its General Partner
By: /s/ Michael D. Weiner
---------------------------------------
Name: Michael D. Weiner
Title: Vice President
APOLLO UK PARTNERS III, L.P.
By: Apollo Advisors II, L.P.,
Its General Partner
By: Apollo Capital Management II, Inc.,
Its General Partner
By: /s/ Michael D. Weiner
---------------------------------------
Name: Michael D. Weiner
Title: Vice President
Page 10 of 11
<PAGE>
APOLLO ADVISORS II, L.P.
By: Apollo Capital Management II, Inc.,
Its General Partner
By: /s/ Michael D. Weiner
---------------------------------------
Name: Michael D. Weiner
Title: Vice President
APOLLO MANAGEMENT, L.P.
By: AIF III Management, Inc.,
Its General Partner
By: /s/ Michael D. Weiner
---------------------------------------
Name: Michael D. Weiner
Title: Vice President
Page 11 of 11
<PAGE>
TERMINATION OF
AMENDED AND RESTATED STOCKHOLDERS AGREEMENT AND
PROXY AND VOTING AGREEMENT
This TERMINATION OF AMENDED AND RESTATED STOCKHOLDERS AGREEMENT AND
PROXY AND VOTING AGREEMENT (the "Termination"), dated as of December 20, 1999,
by and among Apollo Management, L.P., a Delaware limited partnership ("Apollo
Management" and together with its affiliates and managed investment funds,
"Apollo"), Mariner Post-Acute Network, Inc., a Delaware corporation (the
"Company") and the stockholders (including Apollo) listed on the signature pages
attached hereto (the "Stockholders").
W I T N E S S E T H:
WHEREAS, the parties hereto are all of the parties to that certain
Stockholders Agreement, dated as of November 4, 1997, amended as of April 13,
1998 and amended and restated as of November 25, 1998 (the "Stockholders
Agreement") pursuant to which the parties provided for certain rights and
obligations in respect of the Shares (defined in the Stockholders Agreement);
WHEREAS, in addition to the Stockholders Agreement, the Stockholders
provided for certain voting rights and obligations in respect to Shares pursuant
to that certain Proxy and Voting Agreement, dated as November 4, 1997 (the
"Proxy Agreement"), by and among Apollo Management and the Other Stockholders
(defined in the Stockholders Agreement);
WHEREAS, each Stockholder party hereto owns the number of shares of
common stock, par value $.01 per share ("Common Stock") set forth under its name
on the signature pages attached hereto, and the Stockholders party hereto
collectively beneficially own all of the shares of Common Stock currently
subject to the Stockholders Agreement and the Proxy Agreement;
WHEREAS, in connection with the sale of the shares of Common Stock
owned by Apollo to Credit Suisse First Boston Management Corporation ("CSFBMC")
pursuant to a Transfer Agreement between CSFBMC and Apollo (the "Sale
Transaction"), Apollo, the Stockholders and the Company have agreed to enter
into this Termination to become effective (the "Effective Time") (i) with
respect to the Stockholders Agreement immediately upon its execution by Apollo,
the Company and Stockholders holding the requisite number of shares, and (ii)
with respect to the shares of Common Stock owned by each Other Stockholder
subject to the Proxy Agreement, immediately upon its execution by Apollo
Management and such Other Stockholder; and
NOW, THEREFORE, the parties hereto agree as follows:
1. REPRESENTATION AND WARRANTIES. Each party hereto represents
and warrants to the other party as follows:
(a) AUTHORITY RELATIVE TO THIS TERMINATION. Each party hereto has
the requisite
1
<PAGE>
power and authority to execute and deliver this Termination and to consummate
the transactions contemplated hereby. The execution and delivery of this
Termination and the consummation of the transactions contemplated hereby have
been duly and validly authorized by such party and no other proceedings on the
part of such party are necessary to authorize this Termination or to consummate
the transactions so contemplated. This Termination has been duly and validly
executed and delivered by such party, and assuming that this Termination has
been duly and validly authorized, executed and delivered by the other parties
hereto, this Termination constitutes a valid and binding obligation of such
party, enforceable against such party in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency and
similar laws affecting creditor's rights generally and to general principles of
equity (whether considered in a proceeding in equity or at law).
(b) NO CONFLICTS. Neither the execution and delivery of
this Termination nor the consummation of the transactions contemplated hereby
will conflict with or constitute a violation of or default under any contract,
commitment, agreement, arrangement or restriction of any kind to which such
party is a party or by which such party is bound. Other than the Stockholders
Agreement and the Proxy Agreement there are no other agreements or
understandings with respect to the voting of the Shares.
2. TERMINATION OF RIGHTS AND OBLIGATIONS. As of the applicable
Effective Time, the rights and obligations of (i) Apollo, the Company and the
Stockholders under the Stockholders Agreement and (ii) Apollo Management and
each of the Other Stockholders under the Proxy Agreement (including, without
limitation, the irrevocable proxy granted by each of the Other Stockholders to
Apollo Management), shall be deemed to be terminated and of no further effect
with respect to any shares of Common Stock beneficially owned by any of Apollo,
the Stockholders, or the Other Stockholders, as the case may be. Notwithstanding
anything herein to the contrary, this Section 2 shall not terminate or interfere
with any Other Stockholder's right to exercise its "tag-along rights" pursuant
to Section 6.2 of the Stockholders Agreement with respect to the Sale
Transaction.
3. GOVERNING LAW. This Termination shall be governed in all
respects, including validity, interpretation and effect, by the laws of the
State of Delaware (without giving effect to the provisions thereof relating to
conflicts of law).
4. COUNTERPARTS. This Termination may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement.
5. DESCRIPTIVE HEADINGS. The headings herein are inserted for
convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this Termination.
2
<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this Termination
as of the date first above written.
MARINER POST-ACUTE
NETWORK, INC.
By: /s/ Francis W. Cash
----------------------------------
Name: Francis W. Cash
Title:
Date: January 5, 2000
APOLLO MANAGEMENT, L.P.,
on behalf of one or more managed
investment funds
By: AIF III Management, Inc.
Its General Partner
By: /s/ Michael D. Weiner
------------------------------------
Name: Michael D. Weiner
Title: Vice President
Date: December 20, 1999
APOLLO INVESTMENT FUND III, L.P.
By: Apollo Advisors II, L.P.
Its General Partner
By: Apollo Capital Management II, Inc.
Its General Partner
By: /s/ Michael D. Weiner
------------------------------------
Name: Michael D. Weiner
Title: Vice President
13,100,370 Shares of Common Stock
Date: December 20, 1999
3
<PAGE>
APOLLO UK PARTNERS III, L.P.
By: Apollo Advisors II, L.P.
Its General Partner
By: Apollo Capital Management II, Inc.
Its General Partner
By: /s/ Michael D. Weiner
------------------------------------
Name: Michael D. Weiner
Title: Vice President
484,188 Shares of Common Stock
Date: December 20, 1999
APOLLO OVERSEAS PARTNERS III, L.P.
By: Apollo Advisors II, L.P.
Its General Partner
By: Apollo Capital Management II, Inc.
Its General Partner
By: /s/ Michael D. Weiner
------------------------------------
Name: Michael D. Weiner
Title: Vice President
783,033 Shares of Common Stock
Date: December 20, 1999
4
<PAGE>
CHASE EQUITY ASSOCIATES, L.P.
By: Chase Capital Partners
Its General Partner
By: /s/ Christopher C. Behrens
-------------------------------------
Partner
2,592,594 Shares of Common Stock
Date: December 30, 1999
5
<PAGE>
DRAX HOLDINGS L.P.
By: Inman Corporation
Its General Partner
By: /s/ Linda Hamilton
------------------------------------
Name: Linda Hamilton
Title: Executive Vice President
75,000 Shares of Common Stock
Date: December 30, 1999
6
<PAGE>
WALNUT GROWTH PARTNERS LIMITED
PARTNERSHIP
By: Walnut GP, L.L.C.
Its General Partner
By: Walnut Funds, Inc.
By: /s/ Joel Kanter
---------------------------------
Name: Joel Kanter
Title: President
74,073 Shares of Common Stock
Date: December 28, 1999
7
<PAGE>
PATRICIAN CORPORATION
(as successor to Healthcare Equity Partners,
L.P., Healthcare Equity QP Partners, L.P.,
Key Capital Corporation, and Key Equity
Partners 97)
By: /s/ John Power
-----------------------------------
Its: President
1,111,113 Shares of Common Stock
Date: January 5, 2000
8
