UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

 

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported): December 7, 2016 (December 1, 2016)

 

 

 

LOGO

ENVISION HEALTHCARE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-37955   62-1493316

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

1A Burton Hills Boulevard

Nashville, Tennessee

  37215
(Address of principal executive offices)   (Zip Code)

(615) 665-1283

(Each registrant’s telephone number, including area code)

 

 

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01. Entry into a Material Definitive Agreement.

Term Loan Credit Agreement

On December 1, 2016, Envision Healthcare Corporation (formerly known as New Amethyst Corp., the “Company”) incurred term loan borrowings in an aggregate principal amount of $3,495 million that mature on December 1, 2023, as described below, by assuming the term loan borrowings made in connection with the consummation of the Mergers by the company formerly known as Envision Healthcare Corporation (the “Prior Envision Borrower”), a wholly owned subsidiary of Envision Healthcare Holdings, Inc. (“Holdings”) immediately prior to the consummation of the Mergers (as defined below).

On May 25, 2011, the Prior Envision Borrower entered into a Term Loan Credit Agreement (as amended from time to time, the “Term Loan Credit Agreement”) with Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the other financial institutions and lenders from time to time party thereto, providing for a senior secured term loan facility (the “Term Loan Facility”). In connection with the consummation of the Mergers, the Company) became the Borrower (as defined in the Term Loan Credit Agreement) under the Term Loan Facility. The Term Loan Facility consists of a senior secured term loan credit facility in the aggregate principal amount of up to $3,495 million. Immediately prior to the Mergers, on December 1, 2016, the Term Loan Facility was comprised of (i) a term loan tranche in the aggregate principal amount of $1,266 million that was scheduled to mature on May 25, 2018 (the “Initial Term Loans”) and (ii) a term loan tranche in the aggregate principal amount of $993 million that was scheduled to mature on November 12, 2022 the (the “Tranche B-2 Term Loans”). On December 1, 2016, the Borrower entered into a Seventh Amendment to Term Loan Credit Agreement (the “Seventh Amendment”), pursuant to which it incurred a term loan tranche in the aggregate principal amount of $3,495 million that matures on December 1, 2023 (the “Tranche C Term Loans”), made certain other modifications to terms of the Term Loan Facility and JPMorgan Chase Bank, N.A. replaced Deutsche Bank AG New York Branch as administrative agent and collateral agent. The Term Loan Credit Agreement provides the right for individual lenders to extend the maturity date of their loans upon the request of the Borrower and without the consent of any other lender. The proceeds of the Tranche C Term Loans were used to repay in full the Initial Term Loans and the Tranche B-2 Term Loans.

Subject to specified conditions, without the consent of the then existing lenders (but subject to the receipt of commitments), the Term Loan Facility may be expanded (or a new term loan facility or revolving credit facility added) by up to (i) $1,300 million plus (ii) an additional amount as will not cause the net first lien leverage ratio after giving effect to the incurrence of such additional amount to exceed 4.0:1.0, as calculated pursuant to the Term Loan Facility.

The Tranche C Term Loans under the Term Loan Facility bear interest initially at a rate equal to (i) LIBOR, plus 3.00% per annum, or (ii) the alternate base rate, which will be the highest of (w) the prime rate established by the administrative agent from time to time, (x) 0.50% in excess of the greater of (1) the overnight federal funds rate or (2) the composite overnight federal funds and overnight LIBOR rate, (y) the one-month LIBOR rate (adjusted for maximum reserves) plus 1.0% per annum and (z) 1.75% per annum, plus, in each case, 2.00% per annum.

The Term Loan Facility contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants contain limitations on the following, subject to customary exceptions: the incurrence of additional indebtedness; payment of dividends on, redemption or repurchase of stock or making of other distributions in respect of our capital stock; making investments; repurchase, prepayment or redemption of junior indebtedness; agreeing to payment restrictions affecting the ability of our restricted subsidiaries to pay dividends to us or make other intercompany transfers; incurrence of additional liens; transfer or sale of assets; consolidation, merger, sale or other disposition of all or substantially all of our assets; entering into certain transactions with affiliates; designating any of our subsidiaries as unrestricted subsidiaries; and making of negative pledges. There are no financial covenants included in the Term Loan Credit Agreement.

 

2


The foregoing description of the Term Loan Credit Agreement, as amended, does not purport to be a complete description and is qualified in its entirety by reference to the full text thereof, which is attached as Exhibits 10.1 through 10.8 to this report and is incorporated herein by reference.

ABL Credit Agreement

On December 1, 2016, in connection with the consummation of the Mergers, the Company assumed the Prior Envision Borrower’s asset-based revolving credit facility providing for revolving borrowings of up to $850.0 million, subject to borrowing base availability, as described below. At the completion of the Mergers, all outstanding borrowings under the ABL Facility (as defined below) of the Prior Envision Borrower were repaid.

On May 25, 2011, the Prior Envision Borrower entered into an ABL Credit Agreement (as amended from time to time, the “ABL Credit Agreement”) with Deutsche Bank AG New York Branch, as administrative agent and collateral agent and the other financial institutions and lenders from time to time party thereto, providing for an asset-based revolving credit facility (the “ABL Facility” and, together with the Term Loan Facility, the “Credit Facilities”). In connection with completion of the Mergers, on December 1, 2016, the Company became and, at the option of the Company, any of the Company’s domestic wholly-owned subsidiaries may be, a borrower (collectively, the “ABL Borrower”) under the ABL Facility. On December 1, 2016, the ABL Borrower entered into a Third Amendment to ABL Credit Agreement (the “Third Amendment” and, together with the Seventh Amendment, the “Credit Agreement Amendments”), pursuant to which all outstanding loans under the ABL Facility were repaid, the ABL Facility was increased to provide for an asset-based revolving credit facility in the amount of up to $850.0 million, subject to borrowing base availability, and letter of credit and swingline sub-facilities and JPMorgan Chase Bank, N.A. became co-collateral agent. Amounts are available under the ABL Facility in U.S. dollars. In addition, subject to certain terms and conditions, the ABL Borrower is entitled to request additional revolving credit commitments or term loans under the ABL Facility, which share in the borrowing base, up to an amount such that the aggregate amount of ABL commitments does not exceed $1,350 million. The final maturity date of the ABL Facility is December 1, 2021. The ABL Credit Agreement provides the right for individual lenders to extend the maturity date of their commitments and loans upon the request of the ABL Borrower and without the consent of any other lender.

The “borrowing base” is defined in the ABL Credit Agreement as, at any time, the sum of (i) 85% of the eligible accounts receivable of each ABL Borrower and each guarantor (the “A/R Amount”); plus (ii) the lesser of (x) 50% of the lower of cost and fair market value of the eligible inventory of the ABL Borrower and each guarantor and (y) 5% of the A/R Amount; plus (iii) the lesser of (x) accounts receivable of the ABL Borrower and each guarantor aged 180–360 days that are otherwise eligible accounts receivable and (y) 5% of the A/R Amount; minus (iv) such availability reserves as the administrative agent, in its permitted discretion, deems appropriate at such time; minus (v) the outstanding principal amount of any future term loans (if any) incurred pursuant to the ABL Credit Agreement. As of October 31, 2016, the borrowing base was approximately $657 million.

The revolving credit loans under the ABL Facility bear interest initially at a rate equal to (i) LIBOR plus, an applicable margin, which shall be determined based on the average daily excess availability, or (ii) the alternate base rate, which will be the highest of (x) the prime rate established by the administrative agent from time to time, (y) 0.50% in excess of the greater of (1) the overnight federal funds rate or (2) the composite overnight federal funds and overnight LIBOR rate, (z) the one-month LIBOR rate (adjusted for maximum reserves) plus 1.0% per annum, plus, in each case, an applicable margin, which shall be determined based on the average daily excess availability. The ABL Facility bears a commitment fee that is payable quarterly in arrears, based on the utilization of the ABL Facility, and customary letter of credit fees.

The ABL Facility contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants contain limitations on the following: incurrence of additional indebtedness or issuance of certain preferred shares; payment of dividends on, redemption or repurchase of stock or making of other distributions in respect of our capital stock; making investments; repurchase, prepayment or redemption of junior indebtedness; agreeing to payment restrictions affecting the ability of our restricted subsidiaries to pay dividends to us or make other intercompany transfers; incurrence of additional liens; transfer or sale of assets; consolidation, merger, sale or other disposition of all or substantially all of our assets; entering into certain

 

3


transactions with our affiliates; designation of any of our subsidiaries as unrestricted subsidiaries; and making of negative pledges. The negative covenants are subject to the customary exceptions and also permit the payment of dividends and distributions, investments, permitted acquisitions, payments or redemptions of junior indebtedness, asset sales and mergers, consolidations and sales of all or substantially all assets involving subsidiaries upon satisfaction of a “payment condition.” The payment condition is deemed satisfied upon 30-day specified availability and specified availability exceeding agreed upon thresholds and, in certain cases, the absence of specified events of default or known events of default and pro forma compliance with a fixed charge coverage ratio of 1.0 to 1.0.

There are no financial covenants included in the ABL Credit Agreement, other than a springing minimum fixed charge coverage ratio of at least 1.0 to 1.0, which is tested only when specified availability is less than the greater of (A) $85 million and (B) 10.0% of the lesser of (x) the then applicable borrowing base and (y) the then total effective commitments under the ABL Facility, and continuing until such time as specified availability has been in excess of such threshold for a period of 30 consecutive calendar days.

The foregoing description of the ABL Credit Agreement, as amended, does not purport to be a complete description and is qualified in its entirety by reference to the full text thereof, which is attached as Exhibits 10.9 through 10.12 to this report and is incorporated herein by reference.

2024 Indenture and Supplemental Indentures

On December 1, 2016, the Company issued $550 million aggregate principal amount of 6.25% senior unsecured notes due 2024 (the “2024 Notes”). The 2024 Notes were issued pursuant to the Indenture, dated as of December 1, 2016, as supplemented by the First and Second Supplemental Indentures thereto (together, the “2024 Indenture”), among the Company, the subsidiary guarantors party thereto and Wilmington Trust, National Association, as trustee. The 2024 Notes mature on December 1, 2024. The proceeds of the 2024 Notes were used, together with the borrowings made under the Term Loan Facility, (i) to refinance and repay, in full, the Prior Envision Borrower’s then outstanding borrowings under the Term Loan Credit Agreement and ABL Credit Agreement, (ii) to refinance and repay, in full, the aggregate principal amount of notes outstanding under the Existing AmSurg Indenture (as defined below), (iii) to refinance and repay, in full, the existing indebtedness under the Existing AmSurg Credit Agreement (as defined below), (iv) to pay transaction fees and expenses and (v) for working capital.

The 2024 Notes are unsecured senior indebtedness of the Company and are effectively subordinated to all of the Company’s secured indebtedness, including indebtedness under the Term Loan Facility and the ABL Facility, to the extent of the value of the assets securing such indebtedness. The 2024 Notes are, subject to certain exceptions, guaranteed by each of the Company’s current and future domestic subsidiaries that guarantee the Company’s obligations under the Credit Facilities. The indenture governing the 2024 Notes provides that the guarantee of such Envision Guarantor and AmSurg Guarantor (as defined below) is an unsecured senior obligation of that Envision Guarantor or AmSurg Guarantor.

The Company may redeem the 2024 Notes, in whole or in part, at any time prior to December 1, 2019, at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, plus the applicable make-whole premium. The Company may redeem the 2024 Notes, in whole or in part, at any time (i) on and after December 1, 2019 and prior to December 1, 2020, at a price equal to 104.688% of the principal amount of the 2024 Notes, (ii) on or after December 1, 2020 and prior to December 1, 2021, at a price equal to 103.125% of the principal amount of the 2024 Notes, (iii) on or after December 1, 2021 and prior to December 1, 2022, at a price equal to 101.563% of the principal amount of the 2024 Notes, and (iv) on or after December 1, 2022, at a price equal to 100.000% of the principal amount of the 2024 Notes, in each case, plus accrued and unpaid interest, if any, to the redemption date. In addition, at any time prior to December 1, 2019, the Company at its option may redeem up to 40% of the aggregate principal amount of the 2024 Notes with the proceeds of certain equity offerings at a redemption price of 106.250%, plus accrued and unpaid interest, if any, to the applicable redemption date.

 

4


The indenture governing the 2024 Notes contains covenants that, among other things, will limit the Company’s ability and the ability of its restricted subsidiaries to: incur additional indebtedness or issue certain preferred shares; pay dividends on, redeem or repurchase stock or make other distributions in respect of its capital stock; repurchase, prepay or redeem subordinated indebtedness; make investments; create restrictions on the ability of the Company’s restricted subsidiaries to pay dividends to the Company or make other intercompany transfers; create liens; transfer or sell assets; consolidate, merge or sell or otherwise dispose of all or substantially all of its assets; enter into certain transactions with affiliates; and designate subsidiaries as unrestricted subsidiaries. Upon the occurrence of certain events constituting a change of control, the Company will be required to make an offer to repurchase all of the 2024 Notes (unless otherwise redeemed) at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date. If the Company sells assets under certain circumstances, it will be required to use the proceeds to make an offer to purchase the 2024 Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

The foregoing description of the 2024 Indenture, as supplemented, does not purport to be a complete description and is qualified in its entirety by reference to the full text thereof, which is attached as Exhibits 4.1 through 4.3 to this report and is incorporated herein by reference.

Envision 2022 Indenture and Supplemental Indentures

On June 18, 2014, the Prior Envision Borrower issued $750 million aggregate principal amount of its 5.125% senior unsecured notes due 2022 (the “Envision 2022 Notes”). The Envision 2022 Notes were issued pursuant to the Indenture, dated as of June 18, 2014 (as supplemented from time to time, the “Envision 2022 Indenture”), among the Prior Envision Borrower, certain of its domestic subsidiaries (the “Envision Guarantors”) and Wilmington Trust, National Association, as trustee. On December 1, 2016, in connection with the Mergers, the Company assumed the obligations under the Envision 2022 Notes and certain of the domestic subsidiaries of AmSurg Corp. (“AmSurg”) executed a ninth supplemental indenture, pursuant to which they guaranteed the Envision 2022 Notes. The Envision 2022 Notes mature on July 1, 2022.

The Envision 2022 Notes are unsecured senior indebtedness of the Company and are effectively subordinated to all of the Company’s secured indebtedness, including indebtedness under the Term Loan Facility and the ABL Facility, to the extent of the value of the assets securing such indebtedness. The Envision 2022 Notes are, subject to certain exceptions, guaranteed by each of the Company’s current and future domestic subsidiaries that guarantee the Company’s obligations under the Credit Facilities. The indenture governing the Envision 2022 Notes provides that the guarantee of such Envision Guarantor and AmSurg Guarantor is an unsecured senior obligation of that Envision Guarantor or AmSurg Guarantor.

The Company may redeem the Envision 2022 Notes, in whole or in part, at any time prior to July 1, 2017, at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, plus the applicable make-whole premium. The Company may redeem the Envision 2022 Notes, in whole or in part, at any time (i) on and after July 1, 2017 and prior to July 1, 2018, at a price equal to 103.844% of the principal amount of the Envision 2022 Notes, (ii) on or after July 1, 2018 and prior to July 1, 2019, at a price equal to 102.563% of the principal amount of the Envision 2022 Notes, (iii) on or after July 1, 2019 and prior to July 1, 2020, at a price equal to 101.281% of the principal amount of the Envision 2022 Notes, and (iv) on or after July 1, 2020, at a price equal to 100.000% of the principal amount of the Envision 2022 Notes, in each case, plus accrued and unpaid interest, if any, to the redemption date. In addition, at any time prior to July 1, 2017, the Company at its option may redeem up to 40% of the aggregate principal amount of the Envision 2022 Notes with the proceeds of certain equity offerings at a redemption price of 105.125%, plus accrued and unpaid interest, if any, to the applicable redemption date.

The indenture governing the Envision 2022 Notes contains covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to: incur additional indebtedness or issue certain preferred shares; pay dividends on, redeem or repurchase stock or make other distributions in respect of its capital stock; repurchase, prepay or redeem subordinated indebtedness; make investments; create restrictions on the ability of the Company’s restricted subsidiaries to pay dividends to the Company or make other intercompany transfers; create liens; transfer or sell assets; consolidate, merge or sell or otherwise dispose of all or substantially all of its

 

5


assets; enter into certain transactions with affiliates; and designate subsidiaries as unrestricted subsidiaries. Upon the occurrence of certain events constituting a change of control (other than the Mergers), the Company is required to make an offer to repurchase all of the Envision 2022 Notes (unless otherwise redeemed) at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date. If the Company sells assets under certain circumstances, it will be required to use the proceeds to make an offer to purchase the Envision 2022 Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

The foregoing description of the Envision 2022 Indenture, as supplemented, does not purport to be a complete description and is qualified in its entirety by reference to the full text thereof, which is attached as Exhibits 4.4 through 4.13 to this report and is incorporated herein by reference.

AmSurg 2022 Indenture and Supplemental Indentures

On July 16, 2014, AmSurg issued $1,100 million aggregate principal amount of 5.625% senior unsecured notes due 2022 (the “AmSurg 2022 Notes”). The AmSurg 2022 Notes were issued pursuant to the Indenture, dated as of July 16, 2014 (as supplemented from time to time, the “AmSurg 2022 Indenture”), among AmSurg Escrow Corp. and U.S. Bank National Association, as trustee. The AmSurg 2022 Notes are guaranteed by certain of AmSurg’s subsidiaries (the “AmSurg Guarantors”). In connection with the Mergers, the Company assumed the obligations under the AmSurg 2022 Notes and the Envision Guarantors executed a supplemental indenture, pursuant to which they guaranteed the AmSurg 2022 Notes. The AmSurg 2022 Notes mature on July 15, 2022.

The AmSurg 2022 Notes are unsecured senior indebtedness of the Company and are effectively subordinated to all of the Company’s secured indebtedness, including indebtedness under the Term Loan Facility and the ABL Facility, to the extent of the value of the assets securing such indebtedness. The AmSurg 2022 Notes are, subject to certain exceptions, guaranteed by each of the Company’s current and future domestic subsidiaries that guarantee the Company’s obligations under the Credit Facilities or any other Capital Market Indebtedness (as defined in the AmSurg 2022 Indenture). The indenture governing the AmSurg 2022 Notes provides that the guarantee of such AmSurg Guarantor and Envision Guarantor is an unsecured senior obligation of that AmSurg Guarantor or Envision Guarantor.

The Company may redeem the AmSurg 2022 Notes, in whole or in part, at any time prior to July 15, 2017, at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, plus the applicable make-whole premium. The Company may redeem the AmSurg 2022 Notes, in whole or in part, at any time (i) on and after July 15, 2017 and prior to July 15, 2018, at a price equal to 104.219% of the principal amount of the AmSurg 2022 Notes, (ii) on or after July 15, 2018 and prior to July 15, 2019, at a price equal to 102.813% of the principal amount of the AmSurg 2022 Notes, (iii) on or after July 15, 2019 and prior to July 15, 2020, at a price equal to 101.406% of the principal amount of the AmSurg 2022 Notes, and (iv) on or after July 15, 2020, at a price equal to 100.000% of the principal amount of the AmSurg 2022 Notes, in each case, plus accrued and unpaid interest, if any, to the redemption date. In addition, at any time prior to July 15, 2017, the Company at its option may redeem up to 35% of the aggregate principal amount of the AmSurg 2022 Notes with the proceeds of certain equity offerings at a redemption price of 105.625%, plus accrued and unpaid interest, if any, to the applicable redemption date.

The indenture governing the AmSurg 2022 Notes contains covenants that, among other things, limits the Company’s ability and the ability of its restricted subsidiaries to: incur additional indebtedness or issue certain preferred shares; pay dividends on, redeem or repurchase stock or make other distributions in respect of its capital stock; repurchase, prepay or redeem subordinated indebtedness; make certain investments; create restrictions on the ability of the Company’s restricted subsidiaries to pay dividends to the Company or make other intercompany transfers; create liens; transfer or sell assets; consolidate, merge or sell or otherwise dispose of all or substantially all of its assets; enter into certain transactions with affiliates; and designate subsidiaries as unrestricted subsidiaries. Upon the occurrence of certain events constituting a change of control (other than the Mergers), the Company is required to make an offer to repurchase all of the AmSurg 2022 Notes (unless otherwise redeemed) at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date. If the Company sells assets under certain circumstances, it must use the proceeds to make an offer to purchase the AmSurg 2022 Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

 

6


The foregoing description of the AmSurg 2022 Indenture, as supplemented, does not purport to be a complete description and is qualified in its entirety by reference to the full text thereof, which is attached as Exhibits 4.14 through 4.19 to this report and is incorporated herein by reference.

Indemnification Agreements

On December 1, 2016, following the completion of the Mergers, the Company entered into Indemnification Agreements (the “Indemnification Agreements”) with each of its directors (William A. Sanger, Christopher A. Holden, Carol J. Burt, James A. Deal, Leonard M. Riggs, M.D., John T. Gawaluck, Richard J. Schnall, Steven I. Geringer, James D. Shelton, Joey A. Jacobs, Michael L. Smith, Kevin P. Lavender, Ronald A. Williams and Cynthia S. Miller). The Indemnification Agreements provide the directors with contractual rights to the indemnification and expense advancement rights provided under our amended and restated bylaws, as well as contractual rights to additional indemnification as provided in such Indemnification Agreements.

The foregoing description of the Indemnification Agreements does not purport to be complete and is subject to, and qualified in its entirety by, the full text of such agreements, a form of which is attached hereto as Exhibit 10.13 to this report and incorporated herein by reference.

Item 1.02. Termination of a Material Definitive Agreement.

On December 1, 2016, in connection with the refinancing of the Prior Envision Borrower’s existing indebtedness and the issuance of the 2024 Notes, AmSurg (a) terminated all outstanding commitments and repaid all outstanding loans under the Credit Agreement, dated as of July 16, 2014 (the “Existing AmSurg Credit Agreement”), among AmSurg, the lenders party thereto and Citibank, N.A., as administrative agent, and (b) satisfied and discharged the Indenture, dated as of November 20, 2012 (as supplemented from time to time, the “Existing AmSurg Indenture”), among AmSurg, as issuer, the subsidiary guarantors from time to time party thereto and U.S. Bank National Association, as trustee. As of December 1, 2016, immediately prior to the effectiveness of the Credit Agreement Amendments, the aggregate principal amount of the loans outstanding under the Existing AmSurg Credit Agreement and the aggregate principal amount of notes outstanding under the Existing AmSurg Indenture was $1,220 million and $250 million, respectively. Outstanding letters of credit under the Existing Credit Agreements were cash collateralized.

After giving effect to the termination of the Existing AmSurg Credit Agreement, the satisfaction and discharge of the Existing AmSurg Indenture and the entry into the Credit Agreement Amendments, (i) each of the wholly-owned AmSurg subsidiaries that previously guaranteed the AmSurg Credit Agreement guarantees each of the Term Loan Credit Agreement, ABL Credit Agreement, AmSurg 2022 Indenture, Envision 2022 Indenture and 2024 Indenture; and (ii) each of the Holdings subsidiaries that guarantee the Term Loan Credit Agreement and the ABL Credit Agreement guarantees each of the Term Loan Credit Agreement, ABL Credit Agreement, AmSurg 2022 Indenture, Envision 2022 Indenture and 2024 Indenture.

Item 2.01. Completion of Acquisition or Disposition of Assets.

On December 1, 2016, pursuant to the Agreement and Plan of Merger, dated as of June 15, 2016 (the “Merger Agreement”), by and among Holdings, AmSurg and the Company, Holdings and AmSurg completed the combination of their businesses through a merger of equals. Pursuant to the Merger Agreement, AmSurg merged with and into the Company, with the Company surviving (“Merger 1”). Immediately following Merger 1, Holdings merged with and into the Company, with the Company surviving (“Merger 2” and, together with “Merger 1,” the “Mergers”).

Under the terms of the Merger Agreement, upon completion of the Mergers, each share of AmSurg common stock was converted into one share of Company common stock, each share of AmSurg 5.250% mandatory

 

7


convertible preferred stock, Series A-1 (“AmSurg Preferred Stock”) was converted into one share of Company 5.250% mandatory convertible preferred stock, Series A-1 (“Company Preferred Stock”), and each share of Holdings common stock was converted into 0.334 shares of Company common stock. Pursuant to the Mergers, the Company issued 117,460,473 shares of common stock and 1,725,000 shares of Company Preferred Stock.

The shares of Holdings common stock were suspended from trading on the New York Stock Exchange (the “NYSE”) prior to the open of trading on December 2, 2016. The shares of AmSurg common stock and AmSurg Preferred Stock were suspended from trading on the NASDAQ prior to the open of trading on December 2, 2016.

On November 29, 2016, the Company filed a registration statement on Form 8-A, which registered the Company common stock and the Company Preferred Stock under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). On December 2, 2016, shares of Company common stock and Company Preferred Stock began trading on the NYSE under the ticker symbols “EVHC” and “EVHC PR”, respectively. In addition, pursuant to Rule 12g-3 under the Exchange Act, as successor issuer to Holdings and AmSurg, the Company common stock and Company Preferred Stock are deemed registered under 12(b) of the Exchange Act, and the Company is subject to the informational requirements of the Exchange Act and the rules and regulations promulgated thereunder.

Prior to the effective time of the Mergers, the Company was a wholly owned subsidiary of AmSurg. On December 1, 2016, upon the consummation of the Mergers, a change in control of the Company occured and all of the shares of Company common stock are now held by former holders of AmSurg common stock and Holdings common stock.

The description of the Mergers contained herein does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement, a copy of which is filed as Exhibit 2.1 to this report and incorporated herein by reference.

The information set forth in Item 3.03 of this Current Report on Form 8-K is incorporated by reference into this Item 2.01.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

Prior to the Mergers, shares of Holdings common stock were registered pursuant to Section 12(b) of the Exchange Act and listed on the NYSE, and shares of AmSurg common stock and AmSurg Preferred Stock were each registered pursuant to Section 12(b) of the Exchange Act and listed on NASDAQ. As a result of the Mergers, on December 2, 2016, at Holdings’ request, the NYSE filed a Form 25 to withdraw the shares of Holdings common stock from listing on the NYSE and on December 1, 2016, at AmSurg’s request, NASDAQ filed Form 25s to withdraw both the shares of AmSurg common stock and AmSurg Preferred Stock from listing on NASDAQ. The shares of Holdings common stock were suspended from trading on the NYSE prior to the open of trading on December 2, 2016. The shares of AmSurg common stock and AmSurg Preferred Stock were suspended from trading on the NASDAQ prior to the open of trading on December 2, 2016. Holdings expects to file a Form 15 with the SEC to terminate the registration under the Exchange Act of the shares of Holdings common stock and suspend the reporting obligations of Holdings under the Exchange Act, and AmSurg expects to file a Form 15 with the SEC to terminate the registration under the Exchange Act of the shares of AmSurg common stock and AmSurg Preferred Stock and suspend the reporting obligations of AmSurg under the Exchange Act.

Item 3.03. Material Modification to Rights of Security Holders.

In connection with the Mergers, on December 1, 2016, each share of AmSurg common stock was converted into one share of Company common stock, each share of AmSurg Preferred Stock was converted into one share of Company Preferred Stock, and each share of Holdings common stock was converted into 0.334 shares of Company common stock. The certificate of incorporation and the bylaws of the Company went into effect on December 1, 2016 upon consummation of the Mergers. As previously reported in the “Description of Newco Capital Stock” and “Comparison of Rights of AmSurg Shareholders, Envision Stockholders and Newco Stockholders” sections of the Registration Statement on Form S-4 filed by the Company on August 4, 2016 and declared effective, as subsequently amended, on October 19, 2016 (the “Joint Proxy Statement/Prospectus”), certain of the rights associated with Company common stock are different from the rights associated with AmSurg and Holdings common stock. The information set forth in the “Description of Newco Capital Stock” and “Comparison of Rights of AmSurg Shareholders, Envision Stockholders and Newco Stockholders” sections of the Joint Proxy Statement/Prospectus is incorporated by reference into this Item 3.03.

 

8


As provided in the Merger Agreement, (i) at the effective time of Merger 1, each (a) share of AmSurg restricted stock and each AmSurg stock unit (including stock units subject to time-based and performance-based vesting conditions) that was outstanding immediately prior to the consummation of Merger 1 was assumed by the Company and converted into an award of restricted stock or restricted units of the Company, as applicable, and continued to have, and be subject to, the same terms and conditions as applied to the AmSurg restricted stock/stock unit immediately prior to the consummation of the Mergers, provided that outstanding stock units subject to performance-based vesting conditions, granted on or after January 1, 2016 accelerated and settled into shares of AmSurg restricted stock pursuant to their terms immediately prior to the effective time of Merger 1, and (b) AmSurg stock option that was outstanding immediately prior to the completion of Merger 1 was assumed by the Company and converted into an option to acquire Company common stock; and (ii) at the effective time of Merger 2, after giving effect to appropriate adjustments to reflect Merger 2, each (x) Holdings stock unit that was outstanding immediately prior to the consummation of the Mergers was assumed by the Company and converted into an award of stock units of the Company and continued to have, and be subject to, the same terms and conditions as applied to the Holdings stock unit immediately prior to the consummation of Merger 2 and (y) Holdings stock option that was outstanding immediately prior to the completion of Merger 2 was assumed by the Company and converted into an option to acquire Company common stock.

The information set forth in Items 1.01, 2.01, 3.01 and 5.03 of this Current Report on Form 8-K is incorporated by reference into this Item 3.03.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Resignation and Appointment of Directors

The Company’s board of directors (the “Board”) approved an increase in the size of the Board from two to fourteen directors, effective immediately prior to the completion of Merger 2. The Board unanimously appointed William A. Sanger, Carol J. Burt, James A. Deal, John T. Gawaluck, Steven I. Geringer, Joey A. Jacobs, Kevin P. Lavender, Cynthia S. Miller, Leonard M. Riggs, Jr. M.D., Richard J. Schnall, James D. Shelton, Michael L. Smith and Ronald A. Williams to the Board, effective upon completion of Merger 2. Immediately prior to the effective time of Merger 2, Claire M. Gulmi, a member of the Board since the Company’s incorporation, tendered her letter of resignation from the Board pursuant to the terms of the Merger Agreement. Christopher A. Holden, who was previously appointed as a director of the Company, will continue to serve as a member of the Board.

 

9


Committee Appointments

Effective as of the effective time of Merger 2, the directors identified below were designated and appointed to the Nominating and Corporate Governance Committee, the Compensation Committee, the Audit Committee and the Compliance and Quality Committee, respectively, of the Board:

Nominating and Governance Committee

Carol J. Burt (Chair)

Steven I. Geringer

Joey A. Jacobs

Ronald A. Williams

Compensation Committee

Michael L. Smith (Chair)

Steven I. Geringer

Kevin P. Lavender

Ronald A. Williams

Audit Committee

James A. Deal (Chair)

Carol J. Burt

John T. Gawaluck

Cynthia S. Miller

Richard J. Schnall

Michael L. Smith

Compliance and Quality Committee

Cynthia S. Miller (Chair)

John T. Gawaluck

James D. Shelton

Leonard M. Riggs, Jr. M.D.

New Compensation Arrangement for Non-Employee Directors

On December 2, 2016, the Board approved compensation for the Company’s non-employee directors effective upon the consummation of the Mergers as follows:

 

Non-Employee Director Compensation (1)

   Board
Member
     Committee
Chair
     Committee
Member
 

Annual Cash Retainer ($)

   $ 90,000         

Audit Committee

      $ 35,000       $ 25,000   

Compensation Committee

      $ 35,000       $ 20,000   

Nominating And Corporate Governance Committee

      $ 25,000       $ 20,000   

Compliance Committee

      $ 25,000       $ 20,000   

Annual Restricted Stock Awards (2):

        

Board Membership

   $ 175,000         

 

(1) Director cash payments and stock awards may be deferred in full or in part at the Director’s election.
(2) To be paid in the form of restricted stock units , becoming fully vested on the earlier of (i) the one-year anniversary of the date of grant and (ii) the date of the next annual meeting of the stockholders following the grant.

 

10


Resignation and Appointment of Officers

Following the consummation of the Mergers, the Board appointed new executive officers of the Company. The names of the executive officers of the Company and their respective positions are indicated below:

 

William A. Sanger

  

Executive Chairman

Christopher A. Holden

  

President and Chief Executive Officer

Claire M. Gulmi

  

Executive Vice President and Chief Financial Officer

Kevin D. Eastridge

  

Senior Vice President and Chief Accounting Officer

Robert J. Coward

  

Executive Vice President and President—Physician Services Group

Randel G. Owen

  

Executive Vice President and President—Ambulatory Services Group

Patrick Solomon

  

Senior Vice President and Chief Strategy Officer

Craig A. Wilson

  

Senior Vice President, General Counsel and Secretary

Biographical information for each of the Company’s executive officers is set forth below.

 

Name

  

Biographical Information

  

Age

William A. Sanger

   William A. Sanger is the Executive Chairman and a director of the Company. Mr. Sanger previously served as a director, the President and the Chief Executive Officer of Holdings from May 2011 to December 2016 and as Chairman of Holdings’ board from November 2014 to December 2016. In addition, he has served as the Chief Executive Officer of the Prior Envision Borrower and its predecessor from February 2005 to December 2016 and the President of the Prior Envision Borrower from 2008 to December 2016. Mr. Sanger was appointed President and Chief Executive Officer of EmCare in 2001. In addition, Mr. Sanger has previously served as Chief Executive Officer of AMR. Mr. Sanger served as President and Chief Executive Officer of Cancer Treatment Centers of America, Inc. from 1997 to 2001. Mr. Sanger is also a co-founder of BIDON Companies, where he has been a Managing Partner since 1999. From 1994 to 1997, Mr. Sanger was co-founder and Executive Vice President of PhyMatrix Corp., then a publicly traded diversified health services company. In addition, Mr. Sanger was President and Chief Executive Officer of various other healthcare entities, including JFK Health Care System. Mr. Sanger serves as a director of Carestream Health, Inc. and Healogics, Inc., and previously served as Chairman of the board of directors of Vidacare Corporation, a medical device company. Mr. Sanger has more than 30 years of experience in the healthcare industry.    66

Christopher A. Holden

   Christopher A. Holden is the President and Chief Executive Officer and a director of the Company. Mr. Holden previously served as a director of AmSurg and AmSurg’s President and Chief Executive Officer from October 2007 to December 2016. He served as Senior Vice President and a Division President of Triad Hospitals, Inc. from May 1999 through July 2007. From January 1998 through May 1999, Mr. Holden served as President of the West Division of the Central Group of Columbia/HCA Healthcare Corporation, now known as HCA. Prior to January 1998, Mr. Holden served as President of the West Texas Division of the Central Group of HCA from September 1997 until January 1998 and Vice President of Administration for the Central Group of HCA from August 1994 until September 1997.    52

Claire M. Gulmi

   Claire M. Gulmi is the Executive Vice President and Chief Financial Officer of the Company. Ms. Gulmi previously served as a director of AmSurg from 2004 to December 2016 and as AmSurg’s Executive Vice President from February 2006 to December 2016 and Chief Financial Officer from September 1994 to December 2016. Prior to her appointment as Executive Vice President, Ms. Gulmi served as a Senior Vice President from March 1997 to February 2006 and as a Vice President from September 1994 through March 1997. Ms. Gulmi serves as a director of Air Methods Corporation, a medical transportation company.    63

 

11


Name

  

Biographical Information

  

Age

Kevin D. Eastridge

   Kevin D. Eastridge is the Senior Vice President and Chief Accounting Officer of the Company. Mr. Eastridge previously served as Senior Vice President of Finance of AmSurg from July 2008 to December 2016 and Chief Accounting Officer from July 2004 to December 2016. Mr. Eastridge served as Vice President of Finance of AmSurg from April 1998 to July 2008 and as Controller from March 1997 to June 2004.    51

Robert J. Coward

   Robert J. Coward is the Executive Vice President and President—Physician Services Group of the Company. Mr. Coward previously served as President—Physician Services Division and Chief Development Officer of AmSurg from November 2014 to December 2016. Mr. Coward served as President and Chief Operating Officer of Sheridan from January 2010 to July 2014, and as Chief Financial Officer and Senior Vice President of Operations of Sheridan from January 2000 to December 2009.    52

Randel G. Owen

   Randel G. Owen is the Executive Vice President and President—Ambulatory Services Group of the Company. Mr. Owen previously served as a director of Holdings from August 2011 to February 2016, the Chief Financial Officer and Executive Vice President of Holdings from May 2011 to December 2016 and the Chief Operating Officer of Holdings from September 2012 to December 2016. He also served as Chief Financial Officer from February 2005 to December 2016 and as Executive Vice President from December 2005 to December 2016 of the Prior Envision Borrower and its predecessor. In addition, Mr. Owen has previously served as Executive Vice President and Chief Financial Officer of AMR. He joined EmCare in July 1999 and served as Executive Vice President and Chief Financial Officer from June 2001 to March 2003. Mr. Owen is also a director of First Cash Financial Services, Inc. Before joining EmCare, Mr. Owen was Vice President of Group Financial Operations for PhyCor, Inc., a medical clinic operator, in Nashville, Tennessee from 1995 to 1999. Mr. Owen has more than 30 years of financial experience in the healthcare industry.    57

Patrick Solomon

   Patrick Solomon is the Senior Vice President and Chief Strategy Officer of the Company. Mr. Solomon previously served as Senior Vice President and Chief Strategy Officer of AmSurg from 2015 to December 2016. Mr. Solomon joined Sheridan in 2003, and served as Executive Vice President and Chief Development Officer of Sheridan from 2012 to 2015 and as Executive Vice President of Operations of Sheridan from 2003 to 2012.    47

Craig A. Wilson

   Craig A. Wilson is the Senior Vice President, General Counsel and Secretary of the Company. Mr. Wilson previously served as Senior Vice President, General Counsel and Secretary of Envision from May 2011 to December 2016. He also served as General Counsel of the Prior Envision Borrower from April 2010 to December 2016 and Secretary of the Prior Envision Borrower from August 2011 to December 2016. Mr. Wilson previously served as Assistant Secretary from April 2010 to August 2011 and Corporate Counsel of the Prior Envision Borrower and its predecessor from February 2005 through March 2010. Mr. Wilson was Corporate Counsel of EmCare from March 2000 through February 2005. Prior to joining EmCare in 2000, Mr. Wilson worked in the private practice of law for seven years.    48

 

12


Base Compensation and Target Bonus Opportunity for Certain Named Executive Officers

On December 2, 2016, the Board approved increased base salaries (effective as of January 1, 2017) and target bonus opportunities for 2017 for the Company’s “named executive officers” in the amounts set forth below.

 

Name

 

Title

   Base Salary      Target Bonus as a
Percentage of
Base Salary (1)
    Long-Term
Incentive
Awards (1)(2)
 

Christopher A. Holden

 

President and Chief Executive Officer

   $ 1,200,000         150   $ 6,000,000   

Claire M. Gulmi

 

Executive Vice President and Chief Financial Officer

   $ 636,000         100   $ 1,100,000   

Robert J. Coward

 

Executive Vice President and President—Physician Services Group

   $ 820,000         120   $ 1,400,000   

Randel G. Owen

 

Executive Vice President and President—Ambulatory Services Group

   $ 770,000         120   $ 1,400,000   

 

(1) The terms of any awards granted under the Company’s bonus plan and long term incentive plan for executive officers will be determined and approved by the Board at a future date.
(2) Amount represents the target value of long-term incentive awards to be granted at a future date.

Compensation information for William A. Sanger is described below in the section entitled “Employment Agreement with William A. Sanger.”

Compensatory Plans

In connection with the closing of the Mergers and pursuant to the terms of the Merger Agreement, the Company succeeded to the following compensatory plans previously sponsored or maintained by Holdings or AmSurg, as applicable: (i) Envision Healthcare Holdings, Inc. 2013 Omnibus Incentive Plan, (ii) the Amended and Restated CDRT Holding Corporation Stock Incentive Plan, as amended, (iii) the Amended and Restated AmSurg Corp. 2014 Equity and Incentive Plan and (iv) the AmSurg Corp. 2006 Stock Incentive Plan, as amended, as well as any outstanding awards granted under the applicable plan, the award agreements evidencing the grants of such awards and the remaining shares available under the applicable plan, including any awards granted to the Company’s executive officers, in each case subject to applicable adjustments in the manner set forth in the Merger Agreement to such awards. In addition, by reason of the Mergers and pursuant to the terms of the Merger Agreement, the Company succeeded to all previously reported employee compensation and benefit plans and agreements that had been sponsored or maintained by Holdings and AmSurg prior to the Mergers.

Severance and Retention Plan for Senior Management

On June 15, 2016, Holdings’ board of directors approved the terms of a senior management severance and retention program (the “ Severance Plan ”). The Severance Plan became effective on December 1, 2016 and was assumed by the Company in connection with the closing of the Mergers. The terms of the Severance Plan are substantially the same as those previously reported in the Current Report filed on Form 8-K by Holdings on June 16, 2016.

The foregoing description of the Severance Plan does not purport to be a complete description and is qualified in its entirety by reference to the full text thereof, which is attached as Exhibit 10.14 to this report and is incorporated herein by reference.

Employment Agreement with William A. Sanger

On December 1, 2016, Holdings and William A. Sanger entered into an employment agreement (the “Employment Agreement”) relating to Mr. Sanger’s service as Executive Chairman of the Board of Directors of the Company following the completion of the Mergers. The terms of Mr. Sanger’s employment agreement are

 

13


substantially the same as those set forth in the letter agreement and related term sheet entered into on June 15, 2016, between Holdings and Mr. Sanger, and as previously reported in the Current Report filed on Form 8-K by Holdings on June 16, 2016, except that Mr. Sanger has agreed that following the Mergers, he will no longer receive personal use of the Company’s corporate aircraft, which he was previously entitled to on a limited basis. In consideration for the loss of this benefit, the Company has agreed to pay Mr. Sanger approximately $420,000 representing the cash value of the accrued but unused hours of personal use to which he was entitled under the terms of his previous employment agreement, as well as for those hours of personal use to which he would have been entitled in 2017. Under the Employment Agreement, Mr. Sanger will be entitled to a base salary of $1,106,000 per year, an annual target bonus payment equal to two hundred percent (200%) of his base salary, and a one-time award of time-vesting equity interests in Company stock with a value equal to $3,000,000.

The foregoing description of the Employment Agreement does not purport to be a complete description and is qualified in its entirety by reference to the full text thereof, which is attached as Exhibit 10.15 to this report and is incorporated herein by reference.

Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

On December 1, 2016, in connection with the Mergers, the Company amended and restated its Certificate of Incorporation and Bylaws to reflect the changes contemplated by the Merger Agreement and as previously reported in the “Description of Newco Capital Stock” and “Comparison of Rights of AmSurg Shareholders, Envision Stockholders and Newco Stockholders” sections of the Joint Proxy Statement/Prospectus. Pursuant to the Company’s Amended and Restated Bylaws, the Company’s first annual meeting of stockholders is deemed to have occurred on May 26, 2016, and therefore any stockholder notice shall be delivered in accordance with the Amended and Restated Bylaws not less than 90 days nor more than 120 days prior to May 26, 2017. The information set forth in the “Description of Newco Capital Stock” and “Comparison of Rights of AmSurg Shareholders, Envision Stockholders and Newco Stockholders” sections of the Joint Proxy Statement/Prospectus is incorporated by reference into this Item 5.03.

The Second Amended and Restated Certificate of Incorporation of the Company and the Amended and Restated Bylaws of the Company are filed as Exhibits 3.1 and 3.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired.

The financial statements required by Rule 3-05 of Regulation S-X were previously reported in the Holdings and AmSurg Quarterly Reports on Form 10-Q for the three months ended September 30, 2016 and Annual Reports on Form 10-K for the year ended December 31, 2015 and are incorporated by reference into this Item 9.01(a).

(b) Pro Forma Financial Information

The pro forma financial statements required by this Item 9.01(b) were previously reported in Current Reports on Form 8-K, filed by each of Holdings and AmSurg on November 17, 2016, each of which is incorporated by reference into this Item 9.01(b).

(d)

Exhibits.

 

Exhibit
No.

  

Description of Exhibit

  2.1    Agreement and Plan of Merger, dated as of June 15, 2016, by and among Holdings, AmSurg Corp. and the Company (incorporated by reference to Annex A of the Company’s Registration Statement on Form S-4 initially filed with the SEC on August 4, 2016).

 

14


  3.1    Second Amended and Restated Certificate of Incorporation of the Company.
  3.2    Amended and Restated Bylaws of the Company.
  4.1    Indenture, dated as of December 1, 2016, by and between the Company and Wilmington Trust, National Association.
  4.2    First Supplemental Indenture, dated as of December 1, 2016, by and between the Company and Wilmington Trust, National Association.
  4.3    Second Supplemental Indenture, dated as of December 1, 2016, by and among the Company, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.
  4.4    Indenture, dated as of June 18, 2014, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Exhibit 4.1 to Holdings’ Form 8-K, dated June 19, 2014).
  4.5    First Supplemental Indenture, dated as of June 18, 2014, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto, and Wilmington Trust, National Association (Incorporated by reference to Exhibit 4.2 to Holdings’ Form 8-K, dated June 19, 2014).
  4.6    Second Supplemental Indenture, dated as of September 10, 2014, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended September 30, 2014).
  4.7    Third Supplemental Indenture, dated as of May 4, 2015, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended June 30, 2015).
  4.8    Fourth Supplemental Indenture, dated as of November 23, 2015, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Holdings’ Form 10-K for the year ended December 31, 2015).
  4.9    Fifth Supplemental Indenture, dated as of January 25, 2016, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended March 31, 2016).
  4.10    Sixth Supplemental Indenture, dated as of November 30, 2016, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.
  4.11    Seventh Supplemental Indenture, dated as of December 1, 2016, by and among Envision Healthcare Intermediate Corporation, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.
  4.12    Eighth Supplemental Indenture, dated as of December 1, 2016, by and among Holdings, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.

 

15


  4.13    Ninth Supplemental Indenture, dated as of December 1, 2016, by and among the Company, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.
  4.14    Indenture, dated as of July 16, 2014, by and among AmSurg Escrow Corp., the subsidiary guarantors listed therein and U.S. Bank National Association (Incorporated by reference to Exhibit 4.1 to AmSurg’s Form 8-K, dated July 22, 2014).
  4.15    First Supplemental Indenture, dated as of July 16, 2014, by and between AmSurg and U.S. Bank National Association (Incorporated by reference to Exhibit 4.2 to AmSurg’s Form 8-K, dated July 22, 2014).
  4.16    Supplemental Indenture, dated as of July 16, 2014, by and among AmSurg, the Subsidiary Guarantors party thereto and U.S. Bank National Association (Incorporated by reference to Exhibit 4.3 to AmSurg’s Form 8-K, dated July 22, 2014).
  4.17    Supplemental Indenture, dated as of December 1, 2016, by and among AmSurg, the Subsidiary Guarantors party thereto and U.S. Bank National Association.
  4.18    Supplemental Indenture, dated as of December 1, 2016, by and among the Company, the Subsidiary Guarantors party thereto and U.S. Bank National Association.
  4.19    Supplemental Indenture, dated as of December 1, 2016, by and among the Company, the Subsidiary Guarantors party thereto and U.S. Bank National Association.
10.1    Term Loan Credit Agreement, dated May 25, 2011, by and among CDRT Merger Sub, Inc., Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to the Prior Envision Borrower’s Form 8-K, dated June 1, 2011).
10.2    First Amendment, dated February 7, 2013, to the Term Loan Credit Agreement, dated May 25, 2011, by and among CDRT Merger Sub, Inc., Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to the Prior Envision Borrower’s Form 8-K, dated February 13, 2013).
10.3    Second Amendment, dated October 28, 2015, to the Term Loan Credit Agreement, dated May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to Holdings’ Form 8-K, dated October 30, 2015).
10.4    Third Amendment, dated November 12, 2015, to the Term Loan Credit Agreement, dated May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to Holdings’ Form 8-K, dated November 16, 2015).

 

16


10.5    Fourth Amendment, dated November 12, 2015, to the Term Loan Credit Agreement, dated May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.2 to Holdings’ Form 8-K, dated November 16, 2015).
10.6    Fifth Amendment, dated as of January 26, 2016, to the Term Loan Credit Agreement, dated as of May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the several lenders from time to time party thereto (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended March 31, 2016).
10.7    Sixth Amendment, dated as of July 25, 2016, to the Term Loan Credit Agreement, dated as of May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the several lenders from time to time party thereto (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended September 30, 2016).
10.8    Seventh Amendment, dated as of December 1, 2016, to the Term Loan Credit Agreement, dated as of May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as existing administrative agent and existing collateral agent and JPMorgan Chase Bank, N.A., as administrative agent under the Restated Credit Agreement and as collateral agent under the Restated Credit Agreement, and the several lenders from time to time party thereto.
10.9    ABL Credit Agreement, dated as of May 25, 2011, by and among CDRT Merger Sub, Inc., Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.3 to the Prior Envision Borrower’s Form 8-K, dated June 1, 2011).
10.10    First Amendment, dated as of February 27, 2013, to the ABL Credit Agreement, dated as of May 25, 2011, by and among Emergency Medical Services Corporation, Deutsche Bank AG New York Branch, as an issuing lender, swingline lender, administrative agent and collateral agent, and the several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to the Prior Envision Borrower’s Form 8-K, dated March 1, 2013).
10.11    Second Amendment to ABL Credit Agreement, dated as of February 6, 2015, among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and an additional lender, and Barclays Bank PLC, as additional lender (Incorporated by reference to the Company’s Form 10-Q for the quarter ended March 31, 2015).
10.12    Third Amendment, dated as of December 1, 2016, to the ABL Credit Agreement, dated as of May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as swingline lender, as an issuing lender, as administrative agent for the lenders and as collateral agent for the Secured Parties and JPMorgan Chase Bank, N.A., as co-collateral agent under the Restated Credit Agreement, and the several lenders from time to time party thereto.
10.13    Form of Indemnification Agreement with the Company’s directors.
10.14†    Severance and Retention Plan for Senior Management.

 

17


10.15†    Amended and Restated Employment Agreement, dated as of December 1, 2016, by and between Holdings and William A. Sanger.

 

Identifies each management compensation plan or arrangement.

 

18


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Envision Healthcare Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    ENVISION HEALTHCARE CORPORATION
December 7, 2016     By:  

/s/ Claire M. Gulmi

      Name:   Claire M. Gulmi
      Title:   Executive Vice President and Chief Financial Officer

 

19


EXHIBIT INDEX

 

Exhibit
No.

  

Description of Exhibit

  2.1    Agreement and Plan of Merger, dated as of June 15, 2016, by and among Holdings, AmSurg Corp. and the Company (incorporated by reference to Annex A of the Company’s Registration Statement on Form S-4 initially filed with the SEC on August 4, 2016).
  3.1    Second Amended and Restated Certificate of Incorporation of the Company.
  3.2    Amended and Restated Bylaws of the Company.
  4.1    Indenture, dated as of December 1, 2016, by and between the Company and Wilmington Trust, National Association.
  4.2    First Supplemental Indenture, dated as of December 1, 2016, by and between the Company and Wilmington Trust, National Association.
  4.3    Second Supplemental Indenture, dated as of December 1, 2016, by and among the Company, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.
  4.4    Indenture, dated as of June 18, 2014, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Exhibit 4.1 to Holdings’ Form 8-K, dated June 19, 2014).
  4.5    First Supplemental Indenture, dated as of June 18, 2014, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto, and Wilmington Trust, National Association (Incorporated by reference to Exhibit 4.2 to Holdings’ Form 8-K, dated June 19, 2014).
  4.6    Second Supplemental Indenture, dated as of September 10, 2014, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended September 30, 2014).
  4.7    Third Supplemental Indenture, dated as of May 4, 2015, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended June 30, 2015).
  4.8    Fourth Supplemental Indenture, dated as of November 23, 2015, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Holdings’ Form 10-K for the year ended December 31, 2015).
  4.9    Fifth Supplemental Indenture, dated as of January 25, 2016, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended March 31, 2016).
  4.10    Sixth Supplemental Indenture, dated as of November 30, 2016, by and among the Prior Envision Borrower, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.

 

20


  4.11    Seventh Supplemental Indenture, dated as of December 1, 2016, by and among Envision Healthcare Intermediate Corporation, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.
  4.12    Eighth Supplemental Indenture, dated as of December 1, 2016, by and among Holdings, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.
  4.13    Ninth Supplemental Indenture, dated as of December 1, 2016, by and among the Company, the Subsidiary Guarantors party thereto and Wilmington Trust, National Association.
  4.14    Indenture, dated as of July 16, 2014, by and among AmSurg Escrow Corp., the subsidiary guarantors listed therein and U.S. Bank National Association (Incorporated by reference to Exhibit 4.1 to AmSurg’s Form 8-K, dated July 22, 2014).
  4.15    First Supplemental Indenture, dated as of July 16, 2014, by and between AmSurg and U.S. Bank National Association (Incorporated by reference to Exhibit 4.2 to AmSurg’s Form 8-K, dated July 22, 2014).
  4.16    Supplemental Indenture, dated as of July 16, 2014, by and among AmSurg, the Subsidiary Guarantors party thereto and U.S. Bank National Association (Incorporated by reference to Exhibit 4.3 to AmSurg’s Form 8-K, dated July 22, 2014).
  4.17    Supplemental Indenture, dated as of December 1, 2016, by and among AmSurg, the Subsidiary Guarantors party thereto and U.S. Bank National Association.
  4.18    Supplemental Indenture, dated as of December 1, 2016, by and among the Company, the Subsidiary Guarantors party thereto and U.S. Bank National Association.
  4.19    Supplemental Indenture, dated as of December 1, 2016, by and among the Company, the Subsidiary Guarantors party thereto and U.S. Bank National Association.
10.1    Term Loan Credit Agreement, dated May 25, 2011, by and among CDRT Merger Sub, Inc., Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to the Prior Envision Borrower’s Form 8-K, dated June 1, 2011).
10.2    First Amendment, dated February 7, 2013, to the Term Loan Credit Agreement, dated May 25, 2011, by and among CDRT Merger Sub, Inc., Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to the Prior Envision Borrower’s Form 8-K, dated February 7, 2013).
10.3    Second Amendment, dated October 28, 2015, to the Term Loan Credit Agreement, dated May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to Holdings’ Form 8-K, dated October 30, 2015).

 

21


10.4    Third Amendment, dated November 12, 2015, to the Term Loan Credit Agreement, dated May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to Holdings’ Form 8-K, dated November 16, 2015).
10.5    Fourth Amendment, dated November 12, 2015, to the Term Loan Credit Agreement, dated May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.2 to Holdings’ Form 8-K, dated November 16, 2015).
10.6    Fifth Amendment, dated as of January 26, 2016, to the Term Loan Credit Agreement, dated as of May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the several lenders from time to time party thereto (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended March 31, 2016).
10.7    Sixth Amendment, dated as of July 25, 2016, to the Term Loan Credit Agreement, dated as of May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the several lenders from time to time party thereto (Incorporated by reference to Holdings’ Form 10-Q for the quarter ended September 30, 2016).
10.8    Seventh Amendment, dated as of December 1, 2016, to the Term Loan Credit Agreement, dated as of May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as existing administrative agent and existing collateral agent and JPMorgan Chase Bank, N.A., as administrative agent under the Restated Credit Agreement and as collateral agent under the Restated Credit Agreement, and the several lenders from time to time party thereto.
10.9    ABL Credit Agreement, dated as of May 25, 2011, by and among CDRT Merger Sub, Inc., Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.3 to the Prior Envision Borrower’s Form 8-K, dated June 1, 2011).
10.10    First Amendment, dated as of February 27, 2013, to the ABL Credit Agreement, dated as of May 25, 2011, by and among Emergency Medical Services Corporation, Deutsche Bank AG New York Branch, as an issuing lender, swingline lender, administrative agent and collateral agent, and the several lenders from time to time party thereto (Incorporated by reference to Exhibit 10.1 to the Prior Envision Borrower’s Form 8-K, dated February 27, 2013).
10.11    Second Amendment to ABL Credit Agreement, dated as of February 6, 2015, among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as administrative agent and an additional lender, and Barclays Bank PLC, as additional lender (Incorporated by reference to the Company’s Form 10-Q for the quarter ended March 31, 2015).
10.12    Third Amendment, dated as of December 1, 2016, to the ABL Credit Agreement, dated as of May 25, 2011, by and among the Prior Envision Borrower, Deutsche Bank AG New York Branch, as swingline lender, as an issuing lender, as administrative agent for the lenders and as collateral agent for the Secured Parties and JPMorgan Chase Bank, N.A., as co-collateral agent under the Restated Credit Agreement, and the several lenders from time to time party thereto.

 

22


10.13    Form of Indemnification Agreement with the Company’s directors.
10.14†    Severance and Retention Plan for Senior Management.
10.15†    Amended and Restated Employment Agreement, dated as of December 1, 2016, by and between Holdings and William A. Sanger.

 

Identifies each management compensation plan or arrangement.

 

23

Exhibit 3.1

SECOND AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

ENVISION HEALTHCARE CORPORATION

FIRST . Name . The name of the corporation is Envision Healthcare Corporation (the “ Corporation ”).

SECOND . Registered Office . The address of the Corporation’s registered office in the State of Delaware 160 Greentree Drive, Suite 101, City of Dover, County of Kent, Delaware 19904. The name of its registered agent at such address is National Registered Agents, Inc.

THIRD . Purpose . The nature of the business of the Corporation and its purpose is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware (the “ DGCL ”).

FOURTH . Capital Stock . The total number of shares of stock which the Corporation shall have authority to issue is 1,100,000,000, consisting of: ( x ) 1,000,000,000 shares of common stock, par value $0.01 per share (the “ Common Stock ”), and ( y ) 100,000,000 shares of preferred stock, par value $0.01 per share (the “ Preferred Stock ”), of which 1,725,000 shares are designated as 5.250% Mandatory Convertible Preferred Stock, Series A-1 (the “ Series A-1 Preferred Stock ”), and the remainder of which are issuable in one or more series as hereinafter provided. The number of authorized shares of the Common Stock or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of at least a majority of the voting power of the stock of the Corporation entitled to vote generally in the election of directors irrespective of the provisions of Section 242(b)(2) of the DGCL or any corresponding provision hereinafter enacted.

1. Provisions Relating to the Common Stock .

(a) Except as otherwise provided in this Second Amended and Restated Certificate of Incorporation or by the DGCL, each holder of shares of Common Stock shall be entitled, with respect to each share of Common Stock held by such holder, to one vote in person or by proxy on all matters submitted to a vote of the holders of Common Stock, whether voting separately as a class or otherwise.

(b) Subject to the preferences and rights, if any, applicable to shares of Preferred Stock or any series thereof, the holders of shares of Common Stock shall be entitled to receive such dividends and other distributions in cash, property, stock or otherwise as may be declared thereon by the Board of Directors at any time and from time to time out of assets or funds of the Corporation legally available therefor and shall share equally on a per share basis in such dividends and distributions.


(c) In the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Corporation, after payment or provision for payment of the debts and other liabilities of the Corporation, and subject to the preferences and rights, if any, applicable to shares of Preferred Stock or any series thereof, the holders of shares of Common Stock shall be entitled to receive all of the remaining assets of the Corporation available for distribution to its stockholders, ratably in proportion to the number of shares of Common Stock held by them.

2. Provisions Relating to the Preferred Stock .

(a) The terms of the Series A-1 Preferred Stock shall be set forth on Exhibit A to this Second Amended and Restated Certificate of Incorporation.

(b) One or more additional series of Preferred Stock may be issued at any time and from time to time. The Board of Directors is hereby authorized to provide for the issuance of shares out of unissued shares of Preferred Stock that have not been designated as a series in one or more additional series and, by resolution and by filing a certificate of designation pursuant to the applicable provisions of the DGCL (hereinafter referred to as a “ Preferred Stock Certificate of Designation ”), to establish from time to time the number of shares to be included in each such series, and to fix the designation, powers, preferences and the relative participating, optional or other special rights, and the qualifications, limitations and restrictions thereof, of shares of each such series, including, without limitation, dividend rights, dividend rates, conversion rights, voting rights, terms of redemption and liquidation preferences. The powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock and the qualifications, limitations and restrictions thereof, if any, may be different from those of any and all other series at any time outstanding.

(c) The Common Stock shall be subject to the express terms of the Preferred Stock and any series thereof.

(d) Except as otherwise required by law, holders of Common Stock, as such, shall not be entitled to vote on any amendment to this Second Amended and Restated Certificate of Incorporation including any Preferred Stock Certificate of Designation that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other series of Preferred Stock, to vote thereon pursuant to this Second Amended and Restated Certificate of Incorporation including any Preferred Stock Certificate of Designation or pursuant to the DGCL as currently in effect or as the same may hereafter be amended.

 

2


3. Voting in Election of Directors . Except as may be required by the DGCL or as provided in this Second Amended and Restated Certificate of Incorporation including any Preferred Stock Certificate of Designation, holders of Common Stock shall have the exclusive right to vote for the election of directors and for all other purposes, and holders of Preferred Stock shall not be entitled to vote on any matter or receive notice of any meeting of stockholders.

FIFTH . Management of Corporation . The following provisions are inserted for the management of the business, for the conduct of the affairs of the Corporation and for the purpose of creating, defining, limiting and regulating the powers of the Corporation and its directors and stockholders:

1. Except as may otherwise be provided by law, this Second Amended and Restated Certificate of Incorporation or the Amended and Restated By-laws of the Corporation, as amended from time to time (the “ By-laws ”), the business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors.

2. Except as otherwise provided in and subject to Article XI of the By-laws, and subject to any rights granted to the holders of shares of any class or series of Preferred Stock then outstanding, the number of directors of the Corporation shall be fixed, and may be altered from time to time, exclusively by resolution of the Board of Directors, but in no event may the number of directors of the Corporation be less than one.

3. The directors of the Corporation (other than those directors, if any, elected by the holders of any series of Preferred Stock provided for or fixed pursuant to the provisions of this Second Amended and Restated Certificate of Incorporation) shall be divided into three classes designated Class I, Class II and Class III. Each class shall consist, as nearly as possible, of one-third of the total number of such directors. Class I directors shall initially serve for a term expiring at the first annual meeting of stockholders of the Corporation following the effectiveness of this Second Amended and Restated Certificate of Incorporation (the “ Effective Date ”), Class II directors shall initially serve for a term expiring at the second annual meeting of stockholders following the Effective Date and Class III directors shall initially serve for a term expiring at the third annual meeting of stockholders following the Effective Date. Directors of each class shall hold office until the annual meeting at which his or her term expires and until his or her successor shall be elected and qualified, or his or her death, resignation, retirement, disqualification or removal from office. Commencing with the first annual meeting of stockholders following the Effective Date and at each succeeding annual meeting, successors to the class of directors whose term expires at that annual meeting shall be elected for a term expiring at the third succeeding annual meeting of stockholders, subject to any rights granted to holders of shares of any class or series of Preferred Stock then outstanding to elect directors. If the number of such directors is changed, any increase or decrease shall be apportioned among the classes so as to maintain the number of directors

 

3


in each class as nearly equal as possible, and any such additional director of any class elected to fill a newly created directorship resulting from an increase in such class shall hold office for a term that shall coincide with the remaining term of that class, but in no case shall a decrease in the number of directors remove or shorten the term of any incumbent director. The Board of Directors is authorized to assign members of the Board of Directors already in office to their respective class.

4. Subject to any rights granted to the holders of shares of any class or series of Preferred Stock then outstanding, a director may be removed from office only for cause and only upon the affirmative vote of the holders of at least a majority of the outstanding shares of Common Stock then entitled to vote in an election of directors.

5. Except as otherwise provided by law or as otherwise provided in or subject to Article XI of the By-laws, and subject to any rights granted to the holders of shares of any class or series of Preferred Stock then outstanding, any vacancy in the Board of Directors that results from an increase in the number of directors, from the death, disability, resignation, disqualification or removal of any director or from any other cause shall be filled solely by an affirmative vote of at least a majority of the directors then in office, even if less than a quorum, or by a sole remaining director. A director elected to fill a vacancy or a newly created directorship shall hold office until the next election of the class for which such director shall have been chosen and until his or her successor has been elected and qualified or until his or her earlier death, resignation or removal.

6. No director of the Corporation shall be liable to the Corporation or its stockholders for monetary damages for breach of his or her fiduciary duty as a director, except that such directors may be liable ( i ) for breach of the director’s duty of loyalty to the Corporation or its stockholders, ( ii ) for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, ( iii ) under Section 174 of the DGCL, or ( iv ) for any transaction from which the director derived an improper personal benefit.

7. To the fullest extent permitted by the DGCL, the Corporation shall indemnify and advance expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement, actually and reasonably incurred, to each person who is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of the fact that the person is or was a director of the Corporation, provided that, except as otherwise provided in the By-laws, the Corporation shall not be obligated to indemnify or advance expenses to a director of the Corporation in respect of an action, suit or proceeding (or part thereof) instituted by such director, unless such action, suit or proceeding (or part thereof) has been authorized by the Board of Directors. The rights provided by this Section 7 of Article FIFTH shall not limit or exclude any rights, indemnities or limitations of liability to which any director of the Corporation may be entitled, whether as a matter of law, under the By-laws, by agreement, vote of the stockholders, approval of the directors of the Corporation or otherwise.

 

4


8. Unless and except to the extent the By-laws shall so require, the election of directors of the Corporation need not be by written ballot.

SIXTH . Stockholder Action by Written Consent . Any action required or permitted to be taken at any annual or special meeting of stockholders of the Corporation may be taken only upon the vote of the stockholders at an annual or special meeting duly called and may not be taken by written consent of the stockholders.

SEVENTH . Special Meetings . Except as otherwise required by law and subject to any rights granted to holders of shares of any class or series of Preferred Stock then outstanding, special meetings of the stockholders of the Corporation for any purpose or purposes may be called only pursuant to a resolution of the Board of Directors adopted by at least a majority of the directors then in office. The stockholders of the Corporation shall not have the power to call a special meeting of the stockholders of the Corporation or to request the Secretary of the Corporation to call a special meeting of the stockholders.

EIGHTH . Amendment of the Certificate of Incorporation . The Corporation reserves the right to amend, alter or repeal any provision contained in this Second Amended and Restated Certificate of Incorporation in the manner now or hereafter prescribed by the DGCL, and all rights herein conferred upon stockholders or directors are granted subject to this reservation, provided , however , that any amendment, alteration or repeal of Sections 6 or 7 of Article FIFTH shall not adversely affect any right or protection existing under this Second Amended and Restated Certificate of Incorporation immediately prior to such amendment, alteration or repeal, including any right or protection of a director thereunder in respect of any act or omission occurring prior to the time of such amendment, alteration or repeal.

NINTH . Amendment of the By-laws . In furtherance and not in limitation of the powers conferred by law, the Board of Directors is expressly authorized to amend, alter or repeal the By-laws, without the assent or vote of stockholders of the Corporation. Any amendment, alteration or repeal of the By-laws by the Board of Directors shall require the affirmative vote of at least a majority of the directors then in office; provided that, during the period beginning at the Merger 2 Effective Time (as defined in the Agreement and Plan of Merger, dated as of June 15, 2016, by and among Envision Healthcare Holdings, Inc., AmSurg Corp. and New Amethyst Corp., as amended from time to time) and ending on the third (3rd) anniversary of the Merger 2 Effective Time, the provisions of Article XI of the By-laws may be amended, altered or repealed by the Board of Directors, and any By-law provision or other resolution inconsistent with Article XI of the By-laws may be adopted by the Board of Directors, only by the affirmative vote of three-fourths of the Board of Directors. In addition to any other vote otherwise required by law, the stockholders of the Corporation may amend, alter or repeal the By-laws only by the affirmative vote of the holders of at least a majority of the outstanding shares of Common Stock entitled to vote at any annual or special meeting of

 

5


stockholders. Notwithstanding anything to the contrary in this Article NINTH, on the third (3rd) anniversary of the Merger 2 Effective Time, Article XI of the By-laws shall, automatically and without any action on the part of the Board of Directors or the stockholders of the Corporation, become void and be of no further force or effect.

TENTH . Exclusive Jurisdiction for Certain Actions . Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (the “ Court of Chancery ”) shall, to the fullest extent permitted by law, be the sole and exclusive forum for ( a ) any derivative action or proceeding brought on behalf of the Corporation, ( b ) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, employee, agent or stockholder of the Corporation to the Corporation or the Corporation’s stockholders, ( c ) any action asserting a claim arising out of or pursuant to any provision of the DGCL, or as to which the DGCL confers jurisdiction on the Court of Chancery (including, without limitation, any action asserting a claim arising out of or pursuant to this Second Amended and Restated Certificate of Incorporation or the By-laws), or ( d ) any action asserting a claim governed by the internal affairs doctrine. Any person or entity holding, purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article TENTH.

 

6


Exhibit A

Section 1. Purpose. This Exhibit A sets forth the terms and conditions of the Corporation’s Series A-1 Preferred Stock.

Section 2. Definitions. The following terms, where used in this Exhibit A, have the following meanings:

“Accumulated Dividend Amount” shall have the meaning set forth in Section 7(d).

“Additional Conversion Amount” shall have the meaning set forth in Section 5(c).

“ADRs” shall have the meaning set forth in Section 11(e).

“Agent Members” shall have the meaning set forth in Section 21(a).

“Applicable Market Value” (i) of the Common Stock means, the Average VWAP per share of Common Stock for the 20 consecutive Trading Day period commencing on and including the 22nd Scheduled Trading Day prior to the Mandatory Conversion Date (subject to postponement as described in Section 5(a)) and (ii) with respect to any common stock or ADRs included in the Exchange Property that are traded on a U.S. national securities exchange as described in Section 11(e) shall be determined as provided in the preceding clause (i) as though a share of such common stock or a single ADR were a share of Common Stock.

“Average Price” shall have the meaning set forth in Section 4(c).

“Average VWAP” means, for any period, the average of the VWAP on each Trading Day in such period.

“Board of Directors” means the board of directors of the Corporation or, with respect to any action to be taken by such board, any committee of such board duly authorized to take such action.

“Business Day” means any day except Saturday, Sunday and any day on which banking institutions in the State of New York generally are authorized or required by law or other governmental action to close.

“By-laws” means the Amended and Restated By-laws of the Corporation, as amended from time to time.

“Certificate of Incorporation” means the Corporation’s Second Amended and Restated Certificate of Incorporation, as amended from time to time.

“Clause A Distribution” shall have the meaning set forth in Section 11(a)(iii).

“Clause B Distribution” shall have the meaning set forth in Section 11(a)(iii).

“Clause C Distribution” shall have the meaning set forth in Section 11(a)(iii).


“Common Equity” of any corporation means the common stock, common equity interests, ordinary shares or depositary shares or other certificates representing common equity interests of such corporation.

“Common Stock” means the common stock, par value $0.01 per share, of the Corporation.

“Conversion and Dividend Disbursing Agent” shall initially mean Computershare Trust Company N.A., the Corporation’s duly appointed conversion and dividend disbursing agent for the Series A-1 Preferred Stock, and any successor appointed under Section 20.

“Conversion Date” shall have the meaning set forth in Section 8(a).

“Conversion Rate” shall be, per share of Series A-1 Preferred Stock (excluding shares of Common Stock, if any, issued in respect of accrued and unpaid dividends pursuant to Section 4(b)), as follows, subject to adjustment pursuant to Section 11:

(i) if the Applicable Market Value of the Common Stock is equal to or greater than $55.13 (the “Threshold Appreciation Price”), then the Conversion Rate shall be 1.8141 shares of Common Stock per share of Series A-1 Preferred Stock (the “Minimum Conversion Rate”);

(ii) if the Applicable Market Value of the Common Stock is less than the Threshold Appreciation Price but greater than $45.00 (the “Initial Price”), then the Conversion Rate shall be $100 divided by the Applicable Market Value of the Common Stock; or

(iii) if the Applicable Market Value of the Common Stock is less than or equal to the Initial Price, then the Conversion Rate shall be 2.2222 shares of Common Stock per share of Series A-1 Preferred Stock (the “Maximum Conversion Rate”).

“Corporate Trust Office” means the principal corporate trust office of the Transfer Agent at which, at any particular time, its corporate trust business shall be administered.

“Corporation” means Envision Healthcare Corporation.

“Depositary” shall have the meaning set forth in Section 21(a).

“Dividend Payment Date” means January 1, April 1, July 1 and October 1 of each year, commencing on, and including, the first such date on or following the Closing Date and ending on, and including, the Mandatory Conversion Date.

“Dividend Period” means the period commencing on, and including, a Dividend Payment Date (or if no Dividend Payment Date has occurred, commencing on, and including, the Issue Date), and ending on, and including, the day immediately preceding the next succeeding Dividend Payment Date.

“DTC” means The Depository Trust Company.

 

2


“Effective Date” means, with respect to a Fundamental Change, the date upon which such Fundamental Change becomes effective.

“Event of Non-payment” shall have the meaning set forth in Section 15(b).

“Ex-Dividend Date” means the first date on which the shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive the issuance or distribution in question from the Corporation or, if applicable, from the seller of such Common Stock (in the form of due bills or otherwise) as determined by such exchange or market.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

“Exchange Property” shall have the meaning set forth in Section 11(e).

“Expiration Date” shall have the meaning set forth in Section 11(a)(v).

“Expiration Time” shall have the meaning set forth in Section 11(a)(v).

“Five-Day Average VWAP” (i) with respect to the Common Stock shall mean the Average VWAP per share of Common Stock over the five consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the applicable Effective Date and (ii) with respect to any common stock or ADRs included in the Exchange Property that are traded on a U.S. national securities exchange as described in Section 11(e) shall be determined as provided in the preceding clause (i) as though a share of such common stock or a single ADR were a share of Common Stock, subject to Section 11(c)(i).

“Fixed Conversion Rates” means, collectively, the Maximum Conversion Rate and the Minimum Conversion Rate.

“Floor Price” shall have the meaning set forth in Section 4(d).

“Fundamental Change” shall be deemed to have occurred if any of the following occurs:

(i) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act, other than the Corporation, any of the Corporation’s Subsidiaries or any of the Corporation’s or the Corporation’s Subsidiaries’ employee benefit plans, files a Schedule TO or any schedule, form or report under the Exchange Act disclosing that such person or group has become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of Common Stock representing more than 50% of the voting power of the Common Equity or the Corporation otherwise becomes aware of such ownership;

(ii) the consummation of (a) any recapitalization, reclassification or change of the Common Stock (other than a change only in par value, from par value to no par value or from no par value to par value, or changes resulting from a subdivision or combination of Common Stock) as a result of which the Common Stock would be converted into, or exchanged for, or

 

3


represent solely the right to receive, stock, other securities, other property or assets; (b) any share exchange, consolidation or merger of the Corporation pursuant to which the Common Stock will be converted into, or exchanged for, or represent solely the right to receive, stock, other securities, other property or assets; or (c) any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of the Corporation and its Subsidiaries taken as a whole, to any Person other than one of the Corporation’s wholly-owned Subsidiaries; or

(iii) stockholders approve any plan or proposal for the liquidation or dissolution of the Corporation;

(iv) the Common Stock (or other Exchange Property) ceases to be listed or quoted on any of the New York Stock Exchange, the Nasdaq Global Select Market or the Nasdaq Global Market (or any of their respective successors);

provided , however , that a transaction or transactions described in clause (ii) above will not constitute a Fundamental Change if at least 90% of the consideration received or to be received by the Corporation’s common stockholders (excluding cash payments for fractional shares or pursuant to dissenters’ rights) in connection with such transaction or transactions consists of shares of common stock that are listed or quoted on any of the New York Stock Exchange, the Nasdaq Global Select Market or the Nasdaq Global Market (or any of their respective successors), or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions, and as a result of such transaction or transactions the Series A-1 Preferred Stock becomes convertible into such consideration, excluding cash payments for fractional shares.

For the purposes of this definition of “Fundamental Change,” any transaction or event that constitutes a Fundamental Change under both clause (i) and clause (ii) above will be deemed to constitute a Fundamental Change solely under clause (ii) of this definition of “Fundamental Change.”

“Fundamental Change Conversion” shall have the meaning set forth in Section 7(a).

“Fundamental Change Conversion Date” shall have the meaning set forth in Section 8(c).

“Fundamental Change Conversion Period” shall have the meaning set forth in Section 7(a).

“Fundamental Change Conversion Rate” means, for any Fundamental Change Conversion, a number of shares of Common Stock (or, if applicable, Units of Exchange Property) determined using the table below based on the applicable Effective Date and Stock Price paid (or deemed paid) per share of Common Stock in such Fundamental Change, as set forth in the following table:

 

4


Stock Price

 

Effective Date

   $10.00      $20.00      $30.00      $40.00      $45.00      $48.00      $52.00      $55.13      $60.00      $70.00      $80.00      $90.00      $100.00      $150.00      $200.00  

July 2, 2014

     2.2286         2.1851         2.0702         1.9474         1.9006         1.8783         1.8547         1.8406         1.8248         1.8091         1.8051         1.8058         1.8077         1.8134         1.8143   

July 1, 2015

     2.2257         2.2102         2.1273         1.9962         1.9378         1.9087         1.8774         1.8585         1.8375         1.8166         1.8111         1.8108         1.8118         1.8141         1.8142   

July 1, 2016

     2.2233         2.2219         2.1916         2.0726         1.9958         1.9535         1.9061         1.8775         1.8468         1.8200         1.8144         1.8138         1.8140         1.8141         1.8141   

July 1, 2017

     2.2222         2.2222         2.2222         2.2222         2.2222         2.0833         1.9231         1.8141         1.8141         1.8141         1.8141         1.8141         1.8141         1.8141         1.8141   

The exact Stock Price and Effective Date may not be set forth in the table, in which case:

(i) if the Stock Price is between two Stock Price amounts in the table or the Effective Date is between two Effective Date dates in the table, the Fundamental Change Conversion Rate shall be determined by straight-line interpolation between the Fundamental Change Conversion Rates set forth for the higher and lower Stock Price amounts and the two Effective Date dates, as applicable, based on a 365-day year;

(ii) if the Stock Price is greater than $200.00 per share (subject to adjustment in the same manner as the Stock Prices set forth in the column headings of the table above pursuant to the immediately succeeding paragraph), then the Fundamental Change Conversion Rate shall be the Minimum Conversion Rate, subject to adjustment pursuant to Section 11; and

(iii) if the Stock Price is less than $10.00 per share (subject to adjustment in the same manner as the Stock Prices set forth in the column headings of the table above pursuant to the immediately succeeding paragraph) (the “Minimum Stock Price”), then the Fundamental Change Conversion Rate shall be determined (a) as if the Stock Price equaled the Minimum Stock Price and (b) if the Effective Date is between two Effective Date dates on the table, using straight-line interpolation, as described herein.

The Stock Prices set forth in the first row of the table (i.e., the column headers) shall be adjusted as of any date on which the Fixed Conversion Rates are adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to such adjustment multiplied by a fraction, the numerator of which is the Minimum Conversion Rate immediately prior to the adjustment giving rise to the Stock Price adjustment and the denominator of which is the Minimum Conversion Rate as so adjusted. Each of the Fundamental Change Conversion Rates in the table shall be subject to adjustment in the same manner as each Fixed Conversion Rate pursuant to Section 11.

“Fundamental Change Dividend Make-whole Amount” shall have the meaning set forth in Section 7(d).

“Global Preferred Share” shall have the meaning set forth in Section 21(a).

 

5


“Global Shares Legend” shall have the meaning set forth in Section 21(a).

“Holder” means the Person in whose name shares of the Series A-1 Preferred Stock are registered.

“Initial Liquidation Preference” means $100 per share of Series A-1 Preferred Stock.

“Initial Price” shall have the meaning set forth in the definition of Conversion Rate.

“Issue Date” shall mean the Closing Date (as defined in the Merger Agreement), which is the original issue date of the Series A-1 Preferred Stock.

“Junior Stock” means the Common Stock and each other class of capital stock or series of Preferred Stock of the Corporation established after the Issue Date, the terms of which do not expressly provide that such class or series ranks senior to, or on a parity with, the Series A-1 Preferred Stock as to dividend rights and/or rights upon liquidation, dissolution or winding up of the Corporation.

“Liquidation Preference” has the meaning set forth in Section 12(a).

“Mandatory Conversion” means a conversion pursuant to Section 5.

“Mandatory Conversion Date” means July 1, 2017.

“Market Disruption Event” means any of the following events:

(i) any suspension of, or limitation imposed on, trading by the relevant exchange or quotation system during any period or periods aggregating one half-hour or longer and whether by reason of movements in price exceeding limits permitted by the relevant exchange or quotation system or otherwise relating to the Common Stock (or any other security into which the Series A-1 Preferred Stock becomes convertible in connection with any Reorganization Event) or in futures or option contracts relating to the Common Stock (or such other security) on the relevant exchange or quotation system;

(ii) any event (other than a failure to open or a closure as described in clause (iii) of this definition of Market Disruption Event) that disrupts or impairs the ability of market participants during any period or periods aggregating one half-hour or longer in general to effect transactions in, or obtain market values for, the Common Stock (or any other security into which the Series A-1 Preferred Stock becomes convertible in connection with any Reorganization Event) on the relevant exchange or quotation system or futures or options contracts relating to the Common Stock (or such other security) on any relevant exchange or quotation system; or

(iii) the failure to open of one of the exchanges or quotation systems on which futures or options contracts relating to the Common Stock (or any other security into which the Series A-1 Preferred Stock becomes convertible in connection with any Reorganization Event) are traded or the closure of such exchange or quotation system prior to its respective scheduled closing time

 

6


for the regular trading session on such day (without regard to after-hours or other trading outside the regular trading session hours) unless such earlier closing time is announced by such exchange or quotation system at least one hour prior to the earlier of the actual closing time for the regular trading session on such day and the submission deadline for orders to be entered into such exchange or quotation system for execution at the actual closing time on such day.

For purposes of clauses (i) and (ii) of this definition of “Market Disruption Event,” the relevant exchange or quotation system will be the New York Stock Exchange; provided that if the Common Stock (or any other security into which the Series A-1 Preferred Stock becomes convertible in connection with any Reorganization Event) is not listed on the New York Stock Exchange, the relevant exchange or quotation system will be the principal national securities exchange on which the Common Stock (or such other security) is listed for trading.

“Maximum Conversion Rate” shall have the meaning set forth in the definition of Conversion Rate.

“Merger Agreement” means the Agreement and Plan of Merger, dated as of June 15, 2016, by and among Envision Healthcare Holdings, Inc., AmSurg Corp. and New Amethyst Corp., as amended from time to time.

“Minimum Conversion Rate” shall have the meaning set forth in the definition of Conversion Rate.

“Minimum Stock Price” shall have the meaning set forth in the definition of Fundamental Change Conversion Rate.

“Non-U.S. Holder” means a Holder that is not treated as a United States person for U.S. federal income tax purposes as defined under Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended from time to time.

“Officer” means the Chief Executive Officer and President, the Executive Chairman, any Vice President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Corporation.

“Officers’ Certificate” means a certificate of the Corporation that is signed on behalf of the Corporation by two authorized Officers, who must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Corporation.

“Optional Conversion” shall have the meaning set forth in Section 6(a).

“Optional Conversion Additional Conversion Amount” shall have the meaning set forth in Section 6(b). “Optional Conversion Average Price” shall have the meaning set forth in Section 6(b).

“Optional Conversion Date” shall have the meaning set forth in Section 8(c).

 

7


“Parity Stock” means any class of capital stock or series of Preferred Stock of the Corporation established after the Issue Date, the terms of which expressly provide that such class or series will rank equally with the Series A-1 Preferred Stock as to dividend rights and/or rights upon liquidation, dissolution or winding up of the Corporation, in each case without regard to whether dividends accrue cumulatively or non-cumulatively.

“Person” means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint-stock company, limited liability company or trust.

“Preferred Director” or “Preferred Directors” shall have the meaning set forth in Section 15(b).

“Preferred Stock” means any and all series of preferred stock of the Corporation, including, without limitation, the Series A-1 Preferred Stock.

“Purchased Shares” shall have the meaning set forth in Section 11(a)(v).

“Record Date” means, for purposes of a Fixed Conversion Rate adjustment pursuant to Section 11, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of holders of the Common Stock entitled to receive such cash, securities or other property.

“Record Holders” means, as to any day, the Holders of record of the Series A-1 Preferred Stock as they appear on the stock register of the Corporation at 5:00 p.m., New York City time, on such day.

“Registrar” means the Transfer Agent.

“Regular Record Date” means with respect to payment of dividends on the Series A-1 Preferred Stock, the record date fixed by the Board of Directors that is not more than 60 days nor less than 10 days prior to such Dividend Payment Date, but only to the extent a dividend has been declared to be payable on such Dividend Payment Date. The Regular Record Date shall apply regardless of whether such date is a Business Day.

“Reorganization Event” shall have the meaning set forth in Section 11(e).

“Scheduled Trading Day” means a day that is scheduled to be a Trading Day, except that if the Common Stock is not listed on a national securities exchange, “Scheduled Trading Day” means a Business Day.

“Senior Stock” shall have the meaning set forth in Section 15(c)(i).

“Series A-1 Preferred Stock” means the Corporation’s 5.250% Mandatory Convertible Preferred Stock, Series A-1.

 

8


“Share Dilution Amount” means the increase in the number of diluted shares outstanding (determined in accordance with generally accepted accounting principles in the United States, and as measured from the date of the Corporation’s consolidated financial statements most recently filed with the Securities and Exchange Commission prior to the Issue Date) resulting from the grant, vesting or exercise of equity-based compensation to employees and directors and equitably adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction.

“Shelf Registration Statement” shall mean a shelf registration statement filed with the Securities and Exchange Commission in connection with the issuance of or resales of shares of Common Stock issued as payment of a dividend, including dividends paid in connection with a conversion.

“Spin-Off’ shall have the meaning set forth in Section 11(a)(iii).

“Stock Price” means:

(i) in the case of a Fundamental Change described in clause (ii) of the definition of Fundamental Change in which the holders of Common Stock receive only cash in the Fundamental Change, the cash amount paid per share of Common Stock; and

(ii) in the case of any other Fundamental Change, the Five-Day Average VWAP.

“Subsidiary” means, with respect to the Corporation or any other Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of capital stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, general partners or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

“Threshold Appreciation Price” shall have the meaning set forth in the definition of Conversion Rate.

“Trading Day” means any day on which:

(i) there is no Market Disruption Event; and

(ii) the New York Stock Exchange is open for trading, or, if the Common Stock (or any other security into which the Series A-1 Preferred Stock becomes convertible in connection with any Reorganization Event) is not listed on the New York Stock Exchange, any day on which the principal national securities exchange on which the Common Stock (or such other security) is listed is open for trading, or, if the Common Stock (or such other security) is not listed on a national securities exchange, any Business Day.

A “Trading Day” only includes those days that have a scheduled closing time of 4:00 p.m., New York City time, or the then standard closing time for regular trading on the relevant exchange or trading system.

 

9


“Transfer Agent” means, initially, Computershare Trust Company N.A. until a successor transfer agent is appointed pursuant to Section 20 and, thereafter, means such successor. The foregoing sentence shall likewise apply to any such subsequent successor or successors.

“Trigger Event” shall have the meaning set forth in Section 11(a)(iii).

“Unit of Exchange Property” shall have the meaning set forth in Section 11(e)

“VWAP” means:

(i) per share of Common Stock, on any Trading Day, the price per share of Common Stock as displayed under the heading “Bloomberg VWAP” on Bloomberg (or any successor service) page EVHC <Equity> AQR (or its equivalent successor if such page is not available) in respect of the period from the scheduled open to 4:00 p.m., New York City time, on such Trading Day; or, if such price is not available, the market value per share of Common Stock on such Trading Day as determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm retained by the Corporation for such purpose; and

(ii) per share of capital stock (other than the Common Stock) or per ADR, in each case traded on a U.S. national securities exchange, on any Trading Day, the price per share of such capital stock or per ADR as displayed under the heading “Bloomberg VWAP” on the relevant Bloomberg page (or any successor service) in respect of the period from the scheduled open to 4:00 p.m., New York City time, on such Trading Day; or if such price is not available, the market value per share of such capital stock or per ADR on such Trading Day as determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm retained by the Corporation for such purpose.

Section 3. Dividends.

(a) Subject to the rights of Holders of any class of capital stock ranking senior to the Series A-1 Preferred Stock with respect to dividends, Holders shall be entitled to receive, when, as and if declared by the Board of Directors and to the extent lawful, cumulative dividends at a rate per year of 5.250% of the Initial Liquidation Preference (equivalent to $5.25 per year per share of Series A-1 Preferred Stock), payable in cash, by delivery of shares of Common Stock or by delivery of any combination of cash and shares of Common Stock, as determined by the Corporation in its sole discretion (subject to the limitations described in Section 4). Declared dividends on the Series A-1 Preferred Stock shall be payable quarterly on each Dividend Payment Date at such annual rate, and dividends shall accumulate from the most recent date as to which dividends shall have been paid or, if no dividends have been paid, from the Initial Issue Date, whether or not declared or in any Dividend Period or Dividend Periods, as the case may be, there have been funds or shares of Common Stock legally available for the payment of such dividends. Dividends will be payable on a Dividend Payment Date to Holders that are Record Holders on the Regular Record Date immediately preceding such Dividend Payment Date, but only to the extent a dividend has been declared to be payable on such Dividend Payment Date, except that dividends payable on the Mandatory Conversion Date will be payable to the Holders

 

10


presenting the Series A-1 Preferred Stock for conversion. If any Dividend Payment Date is not a Business Day, the dividend payable on such date shall be paid on the next Business Day without any adjustment, interest or other penalty in respect of such delay. Dividends payable on shares of Series A-1 Preferred Stock for each full Dividend Period shall be computed by dividing the annual dividend rate by four. Dividends payable on shares of Series A-1 Preferred Stock for any period other than a full Dividend Period shall be based on the number of days elapsed during such Dividend Period and computed on the basis of a 360-day year consisting of twelve 30-day months. Accumulated dividends on shares of Series A-1 Preferred Stock shall not bear interest if they are paid subsequent to the applicable Dividend Payment Date.

(b) No dividend shall be declared or paid upon, or any sum set apart for the payment of dividends upon, any outstanding share of the Series A-1 Preferred Stock with respect to any Dividend Period unless all dividends for all preceding Dividend Periods shall have been declared and paid, or declared and a sufficient sum has been set apart for the payment of such dividends, upon all outstanding shares of Series A-1 Preferred Stock. No dividend shall be paid unless and until the Board of Directors declares a dividend payable with respect to the Series A-1 Preferred Stock.

(c) Holders shall not be entitled to any dividends on the Series A-1 Preferred Stock, whether payable in cash, shares of Common Stock or any combination thereof, in excess of full cumulative dividends.

(d)

(i) So long as any share of Series A-1 Preferred Stock remains outstanding:

(A) no dividend or distribution shall be declared or paid on the Common Stock or any other shares of Junior Stock, except dividends payable solely in shares of Common Stock;

(B) no dividend or distribution shall be declared or paid on Parity Stock, except as set forth in this Section 3(d); and

(C) no Common Stock, Junior Stock or Parity Stock shall be, directly or indirectly, purchased, redeemed or otherwise acquired for consideration by the Corporation or any of its Subsidiaries,

unless all accrued and unpaid dividends for all past Dividend Periods, including the latest completed Dividend Period, on all outstanding shares of Series A-1 Preferred Stock have been or are contemporaneously declared and paid in full (or have been declared and a sum sufficient for the payment thereof has been set aside for the benefit of the Holders on the applicable Regular Record Date).

(ii) The limitations set forth in Section 3(d)(i) shall not apply to:

 

11


(A) redemptions, purchases or other acquisitions of shares of Common Stock or other Junior Stock in connection with the administration of any employee benefit plan in the ordinary course of business (including purchases of shares of Common Stock in lieu of tax withholding and purchases of shares of Common Stock to offset the Share Dilution Amount pursuant to a publicly announced repurchase plan); provided that any purchases to offset the Share Dilution Amount shall in no event exceed the Share Dilution Amount;

(B) any dividends or distributions of rights or Junior Stock in connection with a stockholders’ rights plan or any redemption or repurchase of rights pursuant to any stockholders’ rights plan;

(C) the acquisition by the Corporation or any of its Subsidiaries of record ownership in Junior Stock or Parity Stock for the beneficial ownership of any other Persons (other than for the beneficial ownership by the Corporation or any of its Subsidiaries), including as trustees or custodians; and

(D) the exchange or conversion of Junior Stock for or into other Junior Stock or of Parity Stock for or into other Parity Stock (with the same or lesser aggregate liquidation preference) or Junior Stock and, in each case, the payment of cash solely in lieu of fractional shares.

When dividends are not paid (or declared and a sum sufficient for payment thereof set aside for the benefit of the Holders thereof on the applicable Regular Record Date) on any Dividend Payment Date (or, in the case of Parity Stock having dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within a Dividend Period related to such Dividend Payment Date) in full upon the Series A-1 Preferred Stock and any shares of Parity Stock, all dividends declared on Series A-1 Preferred Stock and all such Parity Stock and payable on such Dividend Payment Date (or, in the case of Parity Stock having dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within the Dividend Period related to such Dividend Payment Date) shall be declared and paid pro rata so that the respective amounts of such dividends declared shall bear the same ratio to each other as all accrued and unpaid dividends per share on the shares of Series A-1 Preferred Stock and all Parity Stock payable on such Dividend Payment Date (or, in the case of Parity Stock having dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within the Dividend Period related to such Dividend Payment Date) (subject to their having been declared by the Board of Directors out of funds of the Corporation lawfully available and including, in the case of Parity Stock that bears cumulative dividends, all accrued but unpaid dividends) bear to each other. If the Board of Directors determines not to pay any dividend or a full dividend on a Dividend Payment Date, the Corporation will provide a 10 Business Days’ written notice to the Holders prior to such Dividend Payment Date.

Subject to the foregoing, dividends (payable in cash, securities or other property) as may be determined by the Board of Directors may be declared and paid on any securities of the Corporation, including Common Stock and other Junior Stock, from time to time out of any funds of the Corporation lawfully available for such payment, and Holders shall not be entitled to participate in any such dividends.

 

12


Section 4. Method of Payment of Dividends.

(a) Subject to the limitations described below, any declared dividend (or any portion of any declared dividend) on the Series A-1 Preferred Stock, whether or not for a current Dividend Period or any prior Dividend Period, including in connection with the payment of declared and unpaid dividends, may be paid by the Corporation, as determined in the Corporation’s sole discretion:

(i) in cash;

(ii) by delivery of shares of Common Stock; or

(iii) by delivery, of any combination of cash and shares of Common Stock;

provided that in the case of a Fundamental Change Conversion that is a Reorganization Event, dividends otherwise payable in shares of Common Stock may be paid by delivery of Units of Exchange Property in accordance with Section 11(e); and provided further that if the Board of Directors may not lawfully authorize payment of all or any portion of such accrued and unpaid dividends in cash, it shall authorize payment of such dividends in shares of Common Stock or Units of Exchange Property, as the case may be, if lawfully permitted to do so.

(b) Each payment of a declared dividend on the Series A-1 Preferred Stock shall be made in cash, except to the extent the Corporation timely elects to make all or any portion of such payment in shares of Common Stock. The Corporation shall give notice to Holders of any such election and the portions of such payment that will be made in cash and in shares of Common Stock no later than 10 Scheduled Trading Days prior to the Dividend Payment Date for such dividend; provided that if the Corporation does not provide timely notice of such election, the Corporation will be deemed to have elected to pay the relevant dividend in cash.

(c) If the Corporation elects to pay any dividend or portion thereof in shares of Common Stock, such shares of Common Stock shall be valued for such purpose at 97% of the Average VWAP per Common Share over the five consecutive Trading Day period beginning on and including the seventh Scheduled Trading Day prior to the applicable Dividend Payment Date (the “Average Price”).

(d) Notwithstanding the foregoing, in no event shall the number of shares of Common Stock to be delivered, in connection with any declared dividend on the Series A-1 Preferred Stock, including any dividend payable in connection with a conversion, exceed a number equal to the total dividend payment divided by $15.75, subject to adjustment in a manner inversely proportional to any adjustment to each Fixed Conversion Rate as set forth in Section 11 (such dollar amount, as adjusted from time to time, the “Floor Price”). To the extent that the amount of any declared dividend exceeds the product of (x) the number of shares of Common Stock delivered in connection with such declared dividend and (y) 97% of the Average Price, the Corporation shall, if it is legally able to do so, notwithstanding any notice by the Corporation to the contrary, pay such excess amount in cash.

 

13


(e) To the extent that the Corporation, in its reasonable judgment, determines that a Shelf Registration Statement is required in connection with the issuance of, or for resales of, shares of Common Stock issued as payment of a dividend on the Series A-1 Preferred Stock, including dividends paid in connection with a conversion, the Corporation shall, to the extent such a Shelf Registration Statement is not currently filed and effective, use its commercially reasonable efforts to file and maintain the effectiveness of such a Shelf Registration Statement until the earlier of such time as all such shares of Common Stock have been resold thereunder and such time as all such shares would be freely tradable without registration by holders thereof that are not “affiliates” of the Corporation for purposes of the Securities Act of 1933, as amended. To the extent applicable, the Corporation shall also use its commercially reasonable efforts to have such shares of Common Stock qualified or registered under applicable state securities laws, if required, and approved for listing on the New York Stock Exchange (or if the shares of Common Stock are not then listed on the New York Stock Exchange, on the principal other U.S. national or regional securities exchange on which the shares of Common Stock are then listed).

(f) In respect of any cash paid, shares of Common Stock issued or Units of Exchange Property delivered in payment or partial payment of a dividend to a Non-U.S. Holder, the Corporation shall withhold and, in the case of such shares of Common Stock or Units of Exchange Property, the Corporation may do so by selling (or directing the Transfer Agent or any paying agent on behalf of the Corporation to withhold and sell) such amount in cash, number of shares of Common Stock or Units of Exchange Property as the Corporation deems necessary, to result in proceeds from such sale (after deduction of customary commissions, which shall be for the account of such Non-U.S. Holder) to pay all or any part of any U.S. withholding tax obligation that the Corporation has (as determined by it in its sole discretion) in respect of the payment or partial payment of such dividend of cash, shares of Common Stock or Units of Exchange Property to such Non-U.S. Holder.

Section 5. Mandatory Conversion on the Mandatory Conversion Date.

(a) Each outstanding share of Series A-1 Preferred Stock shall automatically convert on the Mandatory Conversion Date into a number of shares of Common Stock equal to the Conversion Rate, unless such share of Series A-1 Preferred Stock has been converted prior to the Mandatory Conversion Date in the manner described in Section 6 or Section 7; provided that if the Mandatory Conversion Date is not a Business Day, the Mandatory Conversion Date shall be postponed to the following Business Day; provided further, that if the Applicable Market Value is first determinable on a date later than the Mandatory Conversion Date because there are one or more Scheduled Trading Days that are not Trading Days during the 20 consecutive Scheduled Trading Day period commencing on and including the 22nd Scheduled Trading Day prior to the Mandatory Conversion Date, the Mandatory Conversion Date shall be postponed to such later date.

(b) Each of the Fixed Conversion Rates, the Initial Price, the Threshold Appreciation Price, the Floor Price, the Fundamental Change Date, and the Applicable Market Value shall be subject to adjustment in accordance with the provisions of Section 11.

(c) If prior to the Mandatory Conversion Date the Corporation has not declared all or any portion of the accumulated dividends on the Series A-1 Preferred Stock, the Conversion Rate shall be adjusted so that Holders receive an additional number of shares of Common Stock equal

 

14


to the amount of accumulated dividends that have not been declared (the “Additional Conversion Amount”) divided by the greater of the Floor Price and 97% of the Average Price. To the extent that the Additional Conversion Amount exceeds the product of such number of additional shares of Common Stock and 97% of the Average Price, the Corporation shall, if the Corporation is legally able to do so, declare and pay such excess amount in cash pro rata to the Holders.

Section 6. Optional Conversion at the Option of the Holder.

(a) Holders shall have the right to convert their shares of Series A-1 Preferred Stock, in whole or in part (but in no event less than one share Series A-1 Preferred Stock) (any conversion pursuant to this Section 6, an “Optional Conversion”), at any time prior to the Mandatory Conversion Date, other than during the Fundamental Change Conversion Period, into shares of Common Stock at the Minimum Conversion Rate, subject to adjustment in accordance with Section 11.

(b) If as of any Optional Conversion Date the Corporation has not declared all or any portion of the accumulated and unpaid dividends for all full Dividend Periods ending on a Dividend Payment Date prior to such Optional Conversion Date, the Minimum Conversion Rate shall be adjusted, with respect to the relevant Optional Conversion, so that the converting Holder receives an additional number of shares of Common Stock equal to the amount of accumulated and unpaid dividends that have not been declared for such full Dividend Periods (the “Optional Conversion Additional Conversion Amount”), divided by the greater of the Floor Price and the Average VWAP per share of Common Stock over the 20 consecutive Trading Day period commencing on, and including, the 22nd Trading Day prior to the Optional Conversion Date (such average being referred to as the “Optional Conversion Average Price”). To the extent that the Optional Conversion Additional Conversion Amount exceeds the product of the number of additional shares and the Optional Conversion Average Price, the Corporation will not have any obligation to pay the shortfall in cash. Except as described in the first sentence of this Section 6(b), upon any Optional Conversion of any shares of the Series A-1 Preferred Stock, the Corporation shall make no payment or allowance for undeclared dividends on such shares of the Series A-1 Preferred Stock, unless such Optional Conversion occurs after the Record Date for a declared dividend and on or prior to the immediately succeeding Dividend Payment Date, in which case the Corporation shall pay such dividend on such Dividend Payment Date to the Record Holder of the converted shares as of such Record Date, in accordance with Section 3.

(c) To effect an Optional Conversion, the converting Holder shall comply with the applicable conversion procedures set forth in Section 8. The Corporation shall, in accordance with the instructions provided by the Holder thereof in the written notice of conversion provided to the Corporation pursuant to Section 8, deliver to the Holder the whole number of shares of Common Stock to which the converting Holder shall be entitled upon such Optional Conversion, together with payment of cash in lieu of any fraction of a share of Common Stock, as provided in Section 10, and any certificate or certificates, as the case may be, representing shares of Series A-1 Preferred Stock, as provided in Section 8(d)(i). Such delivery shall take place on the third Business Day succeeding the Optional Conversion Date. If applicable, the Corporation shall instruct the Transfer Agent to register the whole number of shares of Common Stock to which the converting Holder shall be entitled upon such Optional Conversion in the name or names, as the case may be, specified by such Holder in the notice of conversion.

 

15


Section 7. Fundamental Change Conversion.

(a) If a Fundamental Change occurs on or prior to the Mandatory Conversion Date, Holders, subject to adjustments in accordance with Section 11, shall have the right to:

(i) convert their Series A-1 Preferred Stock, in whole or in part (but in no event less than one Series A-1 Preferred Stock) (any such conversion pursuant to this Section 7 being a “Fundamental Change Conversion”) at any time during the period (the “Fundamental Change Conversion Period”) from and including the Effective Date of such Fundamental Change to, but excluding, the earlier of (i) the Mandatory Conversion Date and (ii) the date that is 30 calendar days after the Effective Date (any conversion pursuant to this Section 7, a “Fundamental Change Conversion”) (1) into a number of shares of Common Stock equal to the Fundamental Change Conversion Rate per share of Series A-1 Preferred Stock; or (2) if the Fundamental Change also constitutes a Reorganization Event, Units of Exchange Property in accordance with Section 11(e), based on the Fundamental Change Conversion Rate;

(ii) with respect to such converted shares, receive a Fundamental Change Dividend Make-whole Amount payable in cash or in shares of Common Stock; and

(iii) with respect to such converted shares, receive the Accumulated Dividend Amount payable in cash or in shares of Common Stock;

subject, in the case of clauses (ii) and (iii), to the Corporation’s right to deliver shares of Common Stock in lieu of all or part of such amounts as set forth in Section 7(d). Such delivery shall take place on the third Business Day following the applicable Fundamental Change Conversion Date.

Notwithstanding clauses (ii) and (iii), if such Effective Date or the relevant Fundamental Change Conversion Date falls during a Dividend Period for which the Corporation declared a dividend, the Corporation shall pay such dividend on such Dividend Payment Date to the Record Holders as of such Record Date, in accordance with Section 3, and such dividend shall not be included in the Accumulated Dividend Amount, and the Fundamental Change Dividend Make-whole Amount shall not include the present value of such dividend.

(b) To the extent practicable, at least 20 calendar days prior to the anticipated Effective Date of the Fundamental Change, but in any event not later than two Business Days following the Corporation’s becoming aware of the occurrence of a Fundamental Change, a written notice shall be sent by or on behalf of the Corporation, by first-class mail, postage prepaid, to the Record Holders. Such notice shall contain:

(i) the date on which the Fundamental Change is anticipated to be effected;

(ii) the Fundamental Change Conversion Period;

(iii) the instructions a Holder must follow to effect a Fundamental Change Conversion in connection with such Fundamental Change; and

 

16


(iv) whether the Corporation has elected to pay all or any portion of accrued and unpaid dividends in shares of Common Stock or Units of Exchange Property, as the case may be, and, if so, the portion thereof (as a percentage) that will be paid in shares of Common Stock or Units of Exchange Property.

(c) To effect a Fundamental Change Conversion, the converting Holder must submit its Series A-1 Preferred Stock for conversion and comply with the applicable conversion procedures set forth in Section 8 at any time during the Fundamental Change Conversion Period. Holders who do not submit Series A-1 Preferred Stock for conversion during the Fundamental Change Conversion Period will not be entitled to convert their Series A-1 Preferred Stock at the Fundamental Change Conversion Rate or to receive the Fundamental Change Dividend Make-whole Amount or the Accumulated Dividend Amount. To the extent a Holder does not convert its shares of Series A-1 Preferred Stock pursuant to this Section 7 and a Reorganization Event has occurred, in lieu of shares of Common Stock, the Corporation shall pay or deliver, as the case may be, to such Holder on the Mandatory Conversion Date, Units of Exchange Property as determined in accordance with Section 11(e).

(d)

(i) For any shares of Series A-1 Preferred Stock that are converted during the Fundamental Change Conversion Period, in addition to the shares of Common Stock issued upon conversion at the Fundamental Change Conversion Rate, the Corporation will at its option:

(A) pay the Holder in cash, to the extent the Corporation is legally permitted to do so, the present value, computed using a discount rate of 5.250% per year, of all dividend payments on the Holder’s Series A-1 Preferred Stock for all the remaining Dividend Periods (excluding any accumulated and unpaid dividends for all Dividend Periods ending on or prior to the Dividend Payment Date preceding the Effective Date of the Fundamental Change as well as dividends accumulated to the Effective Date of the Fundamental Change) from such Effective Date to but excluding the Mandatory Conversion Date (the “Fundamental Change Dividend Make-whole Amount”);

(B) increase the number of shares of Common Stock to be issued on conversion by a number equal to (x) the Fundamental Change Dividend Make-whole Amount divided by (y) the greater of the Floor Price and 97% of the Stock Price, or

(C) pay the Fundamental Change Dividend Make-whole Amount in a combination of cash and shares of Common Stock in accordance with the provisions of clauses (A) and (B) above.

(ii) In addition, for any Series A-1 Preferred Stock that are converted during the Fundamental Change Conversion Period, to the extent that, as of the Effective Date of the Fundamental Change, the Corporation has not declared any or all of the accumulated dividends on the Series A-1 Preferred Stock as of such Effective Date (including

 

17


accumulated and unpaid dividends for all dividend periods ending on or prior to the Dividend Payment Date preceding the Effective Date of the Fundamental Change as well as dividends accumulated to the Effective Date of the Fundamental Change, the “Accumulated Dividend Amount”), Holders who convert Series A-1 Preferred Stock within the Fundamental Change Conversion Period will be entitled to receive such Accumulated Dividend Amount upon conversion. The Accumulated Dividend Amount will be payable at the Corporation’s election in either:

(A) cash, to the extent the Corporation is legally permitted to do so,

(B) an additional number of shares of Common Stock equal to (x) the Accumulated Dividend Amount divided by (y) the greater of the Floor Price and 97% of the Stock Price, or

(C) a combination of cash and shares of Common Stock.

(iii) The Corporation shall pay the Fundamental Change Dividend Make-whole Amount and the Accumulated Dividend Amount in cash, except to the extent the Corporation elects on or prior to the second Business Day following the Effective Date of a Fundamental Change to make all or any portion of such payments in shares of Common Stock. If the Corporation elects to deliver shares of Common Stock in respect of all or any portion of the Fundamental Change Dividend Make-whole Amount or Accumulated Dividend Amount, to the extent that the Fundamental Change Dividend Make-whole Amount or the Accumulated Dividend Amount or any portion thereof paid in shares of Common Stock exceeds the product of the number of additional shares the Corporation delivers in respect thereof and 97% of the Stock Price, the Corporation shall, if it is legally able to do so, declare and pay such excess amount in cash.

(e) Not later than the second Business Day following the Effective Date, the Corporation shall notify Holders of:

(i) the Fundamental Change Conversion Rate;

(ii) the Fundamental Change Dividend Make-whole Amount and whether the Corporation will pay such amount in cash, shares of Common Stock or a combination thereof, and specifying the combination thereof, if applicable; and

(iii) the Accumulated Dividend Amount as of the Effective Date and whether the Corporation will pay such amount in cash, shares of Common Stock or a combination thereof, and if applicable, specifying the combination thereof, if applicable.

Section 8. Conversion Procedures.

(a) On the Mandatory Conversion Date, any Fundamental Change Conversion Date or any Optional Conversion Date (each, a “Conversion Date”), dividends on any shares of Series A-1 Preferred Stock converted to Common Stock shall cease to accrue and cumulate, and on the Mandatory Conversion Date (subject to postponement as described in Section 5(a)), such converted shares of Series A-1 Preferred Stock shall cease to be outstanding, in each case,

 

18


subject to the right of Holders of such shares of Series A-1 Preferred Stock to receive shares of Common Stock (or Units of Exchange Property, if applicable) into which such shares of Series A-1 Preferred Stock were converted and any accrued and unpaid dividends on such shares to which such Holders are otherwise entitled pursuant to Section 5(c), Section 6(b) or Section 7(d), as applicable.

(b) Subject to postponement as described in Section 5(a), on the Mandatory Conversion Date, pursuant to Section 5, any outstanding shares of Series A-1 Preferred Stock shall automatically convert into shares of Common Stock. The Person or Persons entitled to receive the Common Stock issuable upon any such conversion of the Series A-1 Preferred Stock shall be treated as the record holder or record holders, as the case may be, of such shares of Common Stock as of 5:00 p.m., New York City time, on the applicable Conversion Date. Except as provided under Section 11, prior to 5:00 p.m., New York City time, on such applicable Conversion Date, shares of Common Stock issuable upon conversion of any shares of Series A-1 Preferred Stock shall not be outstanding for any purpose, and Holders of shares of Series A-1 Preferred Stock shall have no rights with respect to such shares of Common Stock, including, without limitation, voting rights, rights to respond to tender offers for the Common Stock and rights to receive any dividends or other distributions on the Common Stock, by virtue of holding shares of Series A-1 Preferred Stock. No allowance or adjustment, except as set forth in Section 11, shall be made in respect of dividends payable to holders of record of Common Stock as of any date prior to such applicable Conversion Date.

(c) To effect an Optional Conversion pursuant to Section 6 or a Fundamental Change Conversion pursuant to Section 7, a Holder who

(i) holds a beneficial interest in a Global Preferred Share must deliver to DTC the appropriate instruction form for conversion pursuant to DTC’s conversion program and, if required, pay all transfer or similar taxes or duties, if any; or

(ii) holds Series A-1 Preferred Stock in definitive, certificated form must:

(A) complete and manually sign the conversion notice on the back of the Series A-1 Preferred Stock certificate or a facsimile of such conversion notice;

(B) deliver the completed conversion notice and the certificated Series A-1 Preferred Stock to be converted to the Conversion and Dividend Disbursing Agent;

(C) if required, furnish appropriate endorsements and transfer documents; and

(D) if required, pay all transfer or similar taxes or duties, if any.

(the day on which the Holder complies with such requirements, the “Optional Conversion Date” or the “Fundamental Change Conversion Date”, as the case may be); provided that, the Fundamental Change Conversion Date shall be a date no earlier than the Effective Date of the Fundamental Change and no later than 5:00 p.m., New York City time, on the last day of the Fundamental Change Conversion Period.

 

19


The issuance by the Corporation of shares of Common Stock upon an Optional Conversion shall be deemed effective immediately prior to 5:00 p.m., New York City time, on the Optional Conversion Date.

(d) With respect to any Optional Conversion or any Fundamental Change Conversion of shares of Series A-1 Preferred Stock:

(i) if there shall have been surrendered certificate or certificates, as the case may be, representing a greater number of shares of Series A-1 Preferred Stock than the number of shares of Series A-1 Preferred Stock to be converted, the Corporation shall execute and the Registrar shall countersign and deliver to such Holder or such Holder’s designee, at the expense of the Corporation, new certificate or certificates, as the case may be, representing the number of shares of Series A-1 Preferred Stock that shall not have been converted; and

(ii) if the shares of Series A-1 Preferred Stock converted are held in book-entry form through the facilities of the Depositary, promptly following the relevant Optional Conversion Date or Fundamental Change Conversion Date, as the case may be, the Corporation shall cause the Transfer Agent and Registrar to reduce the number of shares of Series A-1 Preferred Stock represented by the global certificate by making a notation on Schedule I attached to the relevant Global Preferred Share.

Section 9. Reservation of Common Stock.

(a) The Corporation shall at all times reserve and keep available out of its authorized and unissued shares of Common stock, solely for issuance, the full number of shares of Common Stock issuable upon payment of accrued and unpaid dividends and upon conversion of the Series A-1 Preferred Stock at the Maximum Conversion Rate then in effect.

(b) All shares of Common Stock delivered upon conversion of the Series A-1 Preferred Stock shall be duly authorized, validly issued, fully paid and non-assessable, free and clear of all liens, claims, charges, security interests and other encumbrances (other than liens, claims, charges, security interests and other encumbrances created by the Holders).

(c) Prior to the delivery of any securities that the Corporation shall be obligated to deliver upon conversion of the Series A-1 Preferred Stock, the Corporation shall use its reasonable best efforts to comply with all federal and state laws and regulations thereunder, if any, requiring the registration of such securities with, or any approval of or consent to the delivery thereof by, any governmental authority.

(d) The Corporation hereby covenants and agrees that, if at any time the Common Stock shall be listed on the New York Stock Exchange or any other national securities exchange or automated quotation system, the Corporation shall, if permitted by the rules of such exchange or automated quotation system, list and keep listed, so long as the Common Stock shall be so listed on such exchange or automated quotation system, all Common Stock issuable upon conversion of the Series A-1 Preferred Stock and payment of dividends thereon, if any; provided , however , that if the rules of such exchange or automated quotation system permit the

 

20


Corporation to defer the listing of such Common Stock until the first conversion of Series A-1 Preferred Stock into Common Stock in accordance with the provisions hereof, the Corporation covenants to list such Common Stock issuable upon conversion of the Series A-1 Preferred Stock in accordance with the requirements of such exchange or automated quotation system at such time.

Section 10. Fractional Shares.

(a) No fractional shares of Common Stock or any other common stock or ADRs included in the Exchange Property shall be issued to Holders, including as a result of any conversion of shares of Series A-1 Preferred Stock or as a result of any payment of dividends on the Series A-1 Preferred Stock in shares of Common Stock or Units of Exchange Property.

(b) In lieu of any fractional share of Common Stock or any other common stock or ADRs included in the Exchange Property otherwise issuable upon Mandatory Conversion, Optional Conversion or Fundamental Change Conversion (including in connection with a dividend payment), that Holder shall be entitled to receive an amount in cash (computed to the nearest cent) based on the VWAP per share of Common Stock, or, if applicable, such other common stock or ADR, on the Trading Day immediately preceding the applicable Conversion Date.

(c) If more than one share of the Series A-1 Preferred Stock is surrendered for conversion at one time by or for the same Holder, the number of full shares of Common Stock, or, if applicable, other common stock or full ADRs, issuable upon conversion thereof shall be computed on the basis of the aggregate number of shares of Series A-1 Preferred Stock so surrendered for conversion. If the Corporation pays dividends in Common Stock, other common stock or ADRs pursuant to Section 4(b) on more than one share of Series A-1 Preferred Stock held at any one time by or for the same Holder, the number of full shares of Common Stock, or, if applicable, other common stock or full ADRs, payable in connection with such dividend shall be computed on the basis of the aggregate number of shares of Series A-1 Preferred Stock so surrendered for conversion.

Section 11. Conversion Rate Adjustments to the Fixed Conversion Rates.

(a) Each Fixed Conversion Rate shall be adjusted from time to time as follows:

(i) If the Corporation issues Common Stock as a dividend or distribution to all or substantially all holders of the Common Stock, or if the Corporation effects a subdivision or combination (including, without limitation, a stock split or a reverse stock split) of the Common Stock, each Fixed Conversion Rate shall be adjusted based on the following formula:

 

CR 1  = CR 0  ×       

OS 1     

  
   OS 0   

where,

 

21


CR 0 = the Fixed Conversion Rate in effect immediately prior to 5:00 p.m., New York City time, on the Record Date for such dividend or distribution or immediately prior to 9:00 a.m., New York City time, on the effective date for such subdivision or combination, as the case may be;

CR 1 = the Fixed Conversion Rate in effect immediately after 5:00 p.m., New York City time, on such Record Date or immediately after 9:00 a.m., New York City time, on such effective date, as the case may be;

OS 0 = the number of shares of Common Stock outstanding immediately prior to 5:00 p.m., New York City time, on such Record Date or immediately prior to 9:00 a.m., New York City time, on such effective date, as the case may be (and prior to giving effect to such event); and

OS 1 = the number of shares of Common Stock that would be outstanding immediately after, and solely as a result of, such dividend, distribution, subdivision or combination.

Any adjustment made under this Section 11(a)(i) shall become effective immediately after 5:00 p.m., New York City time, on the Record Date for such dividend or distribution, or immediately after 9:00 a.m., New York City time, on the effective date for such subdivision or combination, as the case may be. If any dividend, distribution, subdivision or combination of the type described in this clause (i) is declared but not so paid or made, each Fixed Conversion Rate shall be immediately readjusted, effective as of the earlier of (a) the date the Board of Directors determines not to pay or make such dividend, distribution, subdivision or combination and (b) the date the dividend or distribution was to be paid or the date the subdivision or combination was to have been effective, to the Fixed Conversion Rate that would then be in effect if such dividend, distribution, subdivision or combination had not been declared.

(ii) If the Corporation issues to all or substantially all holders of the Common Stock any rights (other than pursuant to any stockholder rights plan), options or warrants entitling them for a period expiring 60 days or less from the date of issuance of such rights, options or warrants to subscribe for or purchase shares of Common Stock at less than the Average VWAP per share of Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement for such issuance, each Fixed Conversion Rate will be increased based on the following formula:

 

CR 1  = CR 0  ×       

OS 0 + X      

  
   OS 0 + Y   

where,

CR 0 = the Fixed Conversion Rate in effect immediately prior to 5:00 p.m., New York City time, on the Record Date for such issuance;

CR 1 = the Fixed Conversion Rate in effect immediately after 5:00 p.m., New York City time, on such Record Date;

 

22


OS 0 = the number of shares of Common Stock outstanding immediately prior to 5:00 p.m., New York City time, on such Record Date;

X = the number of shares of Common Stock issuable pursuant to such rights, options or warrants; and

Y = the aggregate price payable to exercise such rights, options or warrants, divided by the Average VWAP per share of Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement for such issuance.

Any increase in the Fixed Conversion Rates made pursuant to this Section 11(a)(ii) shall become effective immediately after 5:00 p.m., New York City time, on the Record Date for such issuance. To the extent such rights, options or warrants are not exercised prior to their expiration or termination, each Fixed Conversion Rate shall be decreased, effective as of the date of such expiration or termination, to the Fixed Conversion Rate that would then be in effect had the increase with respect to the issuance of such rights, options or warrants been made on the basis of delivery of only the number of shares of Common Stock actually delivered. If such rights, options or warrants are not so issued, each Fixed Conversion Rate shall be decreased, effective as of the earlier of (a) the date the Board of Directors determines not to issue such rights, options or warrants and (b) the date such rights, options or warrants were to have been issued, to the Fixed Conversion Rate that would then be in effect if such issuance had not been announced.

For purposes of this Section 11(a)(ii), in determining whether any rights, options or warrants entitle the holders thereof to subscribe for or purchase shares of the Common Stock at less than the Average VWAP per share of Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement for such issuance, and in determining the aggregate price payable to exercise such rights, options or warrants, there shall be taken into account any consideration the Corporation receives for such rights, options or warrants and any amount payable on exercise thereof, with the value of such consideration, if other than cash, to be determined in good faith by the Board of Directors.

(iii) If the Corporation pays a dividend or other distribution to all or substantially all holders of Common Stock of shares of the Corporation’s capital stock (other than Common Stock), evidences of the Corporation’s indebtedness, the Corporation’s assets or rights to acquire the capital stock, indebtedness or assets of the Corporation, excluding:

(1) any dividend, distribution or issuance as to which an adjustment was effected pursuant to Section 11(a)(i) or Section 11(a)(ii);

(2) dividends or distributions paid exclusively in cash as to which an adjustment was effected pursuant to Section 11(a)(iv) below;

(3) Spin-Offs as to which the provisions set forth below in this Section 11(a)(iii) apply; and

 

23


(4) any dividends or distributions in connection with a Reorganization Event that is included in Exchange Property under Section 11(e),

then each Fixed Conversion Rate shall be increased based on the following formula:

 

CR 1  = CR 0  ×   

SP 0

  
   (SP 0 - FMV)           

where,

CR 0 = the Fixed Conversion Rate in effect immediately prior to 5:00 p.m., New York City time, on the Record Date for such dividend or distribution;

CR 1 = the Fixed Conversion Rate in effect immediately after 5:00 p.m., New York City time, on such Record Date;

SP 0 = the Average VWAP per share of Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Record Date for such dividend or distribution; and

FMV = the fair market value (as determined in good faith by the Board of Directors) on the Record Date for such dividend or distribution of shares of the Corporation’s capital stock (other than Common Stock), evidences of the Corporation’s indebtedness, the Corporation’s assets or rights to acquire the capital stock, indebtedness or assets of the Corporation, expressed as an amount per share of Common Stock.

If the Board of Directors determines the “FMV” (as defined in this Section 11(a)(iii)) of any dividend or other distribution for purposes of this Section 11(a)(iii) by referring to the actual or when-issued trading market for any securities, it shall in doing so consider the prices in such market over the Average VWAP per share of Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Record Date for such dividend or distribution.

Notwithstanding the foregoing, if “FMV” (as defined in this Section 11(a)(iii)) is equal to or greater than “SP 0 ” (as defined in this Section 11(a)(iii)), in lieu of the foregoing increase, each Holder shall receive, in respect of each share of Series A-1 Preferred Stock, at the same time and upon the same terms as holders of Common Stock, the amount and kind of shares of the Corporation’s capital stock (other than Common Stock), evidences of the Corporation’s indebtedness, the Corporation’s assets or rights to acquire the capital stock, indebtedness or assets of the Corporation that such Holder would have received if such Holder owned a number of shares of Common Stock equal to the Maximum Conversion Rate in effect immediately prior to 5:00 p.m., New York City time, on the Record Date for such dividend or other distribution.

Any increase made under the portion of this Section 11(a)(iii) above shall become effective immediately after 5:00 p.m., New York City time, on the Record Date for such dividend or other distribution. If such dividend or distribution is not so paid or made, each Fixed Conversion Rate shall be decreased, effective as of the earlier of (a) the date the Board of Directors determines not to pay the dividend or other distribution and (b) the date such dividend or distribution was to have been paid, to the Fixed Conversion Rate that would then be in effect if the dividend or other distribution had not been declared.

 

24


If the transaction that gives rise to an adjustment pursuant to this Section 11(a)(iii) is one pursuant to which the payment of a dividend or other distribution on the Common Stock consists of shares of capital stock of, or similar equity interests in, a Subsidiary or other business unit of the Corporation (a “Spin-Off’) that are, or, when issued, will be, traded on a U.S. national securities exchange or a reasonably comparable non-U.S. equivalent, then each Fixed Conversion Rate shall instead be increased based on the following formula:

 

CR 1  = CR 0  ×   

    (FMV 0  +  MP 0 )    

  
   MP 0   

where,

CR 0 = the Fixed Conversion Rate in effect at 5:00 p.m., New York City time, on the tenth Trading Day immediately following, and including, the Ex-Dividend Date for such dividend or distribution;

CR 1 = the Fixed Conversion Rate in effect immediately after 5:00 p.m., New York City time, on the tenth Trading Day immediately following, and including, the Ex-Dividend Date for such dividend or distribution;

FMV 0 = the Average VWAP per share of such capital stock or similar equity interests distributed to holders of the Common Stock applicable to one share of Common Stock over the 10 consecutive Trading Day period commencing on, and including, the Ex-Dividend Date for such dividend or distribution; and

MP 0 = the Average VWAP per share of Common Stock over the 10 consecutive Trading Day period commencing on, and including, the Ex-Dividend Date for such dividend or distribution.

The adjustment to each Fixed Conversion Rate under the immediately preceding paragraph shall occur at 5:00 p.m., New York City time, on the 10th consecutive Trading Day immediately following, and including, the Ex-Dividend Date for such dividend or distribution, but will be given effect as of 9:00 a.m., New York City time, on the date immediately following the Record Date for such dividend or distribution. The Corporation shall delay the settlement of any conversion of shares of the Series A-1 Preferred Stock if the Conversion Date occurs after the Record Date for such dividend or distribution and prior to the end of such 10 consecutive Trading Day period. In such event, the Corporation shall deliver the shares of Common Stock issuable in respect of such conversion (based on the adjusted Fixed Conversion Rates as described above) on the first Business Day immediately following the last Trading Day of such 10 consecutive Trading Day period.

For purposes of this Section 11(a)(iii) (and subject in all respects to Section 11(a)(i) and Section 11(a)(ii)):

(A) rights, options or warrants distributed by the Corporation to all or substantially all holders of the Common Stock entitling them to subscribe for or purchase shares of the Corporation’s capital stock, including Common Stock (either initially or under certain circumstances), which rights, options or warrants, until the occurrence of a specified event or events (“Trigger Event”):

 

25


(i) are deemed to be transferred with such shares of the Common Stock;

(ii) are not exercisable; and

(iii) are also issued in respect of future issuances of the Common Stock, shall be deemed not to have been distributed for purposes of this Section 11(a)(iii) (and no adjustment to the Fixed Conversion Rates under this Section 11(a)(iii) shall be required) until the occurrence of the earliest Trigger Event, whereupon such rights, options or warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Fixed Conversion Rates shall be made under this Section 11(a)(iii).

(B) If any such right, option or warrant, including any such existing rights, options or warrants distributed prior to the Issue Date, are subject to events, upon the occurrence of which such rights, options or warrants become exercisable to purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and Record Date with respect to new rights, options or warrants with such rights (in which case the existing rights, options or warrants shall be deemed to terminate and expire on such date without exercise by any of the holders thereof).

(C) In addition, in the event of any distribution (or deemed distribution) of rights, options or warrants, or any Trigger Event or other event (of the type described in the immediately preceding clause (B)) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Fixed Conversion Rates under this clause (iii) was made:

(1) in the case of any such rights, options or warrants that shall all have been redeemed or repurchased without exercise by any holders thereof, upon such final redemption or repurchase (x) the Fixed Conversion Rates shall be readjusted as if such rights, options or warrants had not been issued and (y) the Fixed Conversion Rates shall then again be readjusted to give effect to such distribution, deemed distribution or Trigger Event, as the case may be, as though it were a cash distribution pursuant to Section 11(a)(iv), equal to the per share redemption or repurchase price received by a holder or holders of Common Stock with respect to such rights, options or warrants (assuming such holder had retained such rights, options or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase; and

(2) in the case of such rights, options or warrants that shall have expired or been terminated without exercise by any holders thereof, the Fixed Conversion Rates shall be readjusted as if such rights, options and warrants had not been issued.

For purposes of Section 11(a)(i), Section 11(a)(ii) and this Section 11(a)(iii), if any dividend or distribution to which this Section 11(a)(iii) is applicable includes one or both of:

(A) a dividend or distribution of shares of Common Stock to which Section 11(a)(i)is applicable (the “Clause A Distribution”); or

 

26


(B) an issuance of rights, options or warrants to which Section 11(a)(ii) is applicable (the “Clause B Distribution”),

then:

(1) such dividend or distribution, other than the Clause A Distribution and the Clause B Distribution, shall be deemed to be a dividend or distribution to which this Section 11(a)(iii) is applicable (the “Clause C Distribution”) and any Fixed Conversion Rate adjustment required by this Section 11(a)(iii) with respect to such Clause C Distribution shall then be made; and

(2) the Clause A Distribution and Clause B Distribution shall be deemed to immediately follow the Clause C Distribution and any Fixed Conversion Rate adjustment required by Section 11(a)(i) and Section 11(a)(ii) with respect thereto shall then be made, except that, if determined by the Corporation (I) the “Record Date” of the Clause A Distribution and the Clause B Distribution shall be deemed to be the Record Date of the Clause C Distribution and (II) any shares of Common Stock included in the Clause A Distribution or Clause B Distribution shall be deemed not to be “outstanding immediately prior to 5:00 p.m., New York City time, on such Record Date or immediately prior to 9:00 a.m., New York City time, on such effective date” within the meaning of Section 11(a)(i) or “outstanding immediately prior to 5:00 p.m., New York City time, on such Record Date” within the meaning of Section 11(a)(ii).

(iv) If the Corporation pays a distribution consisting exclusively of cash to all or substantially all holders of the Common Stock, each Fixed Conversion Rate shall be increased based on the following formula:

 

CR 1  = CR 0  ×   

SP 0

     
   (SP 0 - C)       where,

CR 0 = the Fixed Conversion Rate in effect immediately prior to 5:00 p.m., New York City time, on the Record Date for such distribution;

CR 1 = the Fixed Conversion Rate in effect immediately after 5:00 p.m., New York City time, on the Record Date for such distribution;

SP 0 = the Average VWAP per share of Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Record Date for such distribution; and

C = an amount of cash per share of Common Stock that the Corporation distributes to holders of the Common Stock.

Notwithstanding the foregoing, if “C” (as defined in this Section 11(a)(iv)) is equal to or greater than “SP 0 ” (as defined in this Section 11(a)(iv)), in lieu of the foregoing increase, each Holder shall receive, in respect of each share of Series A-1 Preferred Stock, at the same time and upon the same terms as holders of shares of Common Stock, the amount of cash that such Holder would have received if such Holder owned a number of shares of Common Stock equal to the Maximum Conversion Rate in effect immediately prior to 5:00 p.m., New York City time, on the Record Date for such distribution.

 

27


Any adjustment to the Fixed Conversion Rates pursuant to this Section 11(a)(iv) shall become effective immediately after 5:00 p.m., New York City time, on the Record Date for such distribution. If such distribution is not so paid, the Fixed Conversion Rates shall be decreased, effective as of the earlier of (a) the date the Board of Directors determines not to pay such dividend and (b) the date such dividend was to have been paid, to the Fixed Conversion Rates that would then be in effect if such distribution had not been declared.

(v) If the Corporation or one or more of its Subsidiaries purchases Common Stock pursuant to a tender offer or exchange offer (except as provided in Section 11(c)(iii)) and the cash and value of any other consideration included in the payment per share of Common Stock validly tendered or exchanged exceeds the Average VWAP per share of Common Stock over the 10 consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer (the “Expiration Date”), each Fixed Conversion Rate shall be increased based on the following formula:

 

CR 1  = CR 0  ×   

    (FMV + (SP 1  x OS 1 ))    

  
   (SP 1 x OS 0 )   

where,

CR 0 = the Fixed Conversion Rate in effect immediately prior to 5:00 p.m., New York City time, on the tenth Trading Day immediately following, and including, the Trading Day next succeeding the Expiration Date;

CR 1 = the Fixed Conversion Rate in effect immediately after 5:00 p.m., New York City time, on the tenth Trading Day immediately following, and including, the Trading Day next succeeding the Expiration Date;

FMV = the fair market value (as determined in good faith by the Board of Directors) as of the Expiration Date of the aggregate value of all cash and any other consideration paid or payable for shares of the Common Stock validly tendered or exchanged and not withdrawn as of the Expiration Date (the “Purchased Shares”);

OS 1 = the number of shares of Common Stock outstanding as of the last time tenders or exchanges may be made pursuant to such tender or exchange offer (the “Expiration Time”), less any Purchased Shares;

OS 0 = the number of shares of Common Stock outstanding at the Expiration Time, including any Purchased Shares; and

SP 1 = the Average VWAP per share of Common Stock for the 10 consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the Expiration Date.

 

28


The adjustment to each Fixed Conversion Rate under this Section 11(a)(v) shall occur at 5:00 p.m., New York City time, on the tenth consecutive Trading Day immediately following, and including, the Trading Day immediately following the Expiration Date, but will be given effect as of 9:00 a.m., New York City time, on the Expiration Date. The Corporation shall delay the settlement of any conversion of Series A-1 Preferred Stock if the Conversion Date occurs during such 10 consecutive Trading Day period. In such event, the Corporation shall deliver the shares of Common Stock issuable in respect of such conversion (based on the adjusted Fixed Conversion Rates) on the first Business Day immediately following the last Trading Day of such 10 consecutive Trading Day period.

(vi) If the Corporation has in effect a stockholder rights plan while any shares of Series A-1 Preferred Stock remain outstanding, Holders shall receive, upon a conversion of Series A-1 Preferred Stock, in addition to Common Stock, rights under the Corporation’s stockholder rights agreement unless, prior to such conversion, the rights have expired, terminated or been redeemed or unless the rights have separated from the Common Stock. If the rights provided for in the stockholder rights plan have separated from the Common Stock in accordance with the provisions of the applicable stockholder rights agreement so that Holders would not be entitled to receive any rights in respect of the Common Stock, if any, that the Corporation is required to deliver upon conversion of Series A-1 Preferred Stock, each Fixed Conversion Rate shall be adjusted at the time of separation as if the Corporation had distributed to all holders of the Common Stock, capital stock (other than Common Stock), evidences of the Corporation’s indebtedness, the Corporation’s assets or rights to acquire the capital stock, indebtedness or assets of the Corporation pursuant to Section 11(a)(iii) above, subject to readjustment upon the subsequent expiration, termination or redemption of the rights. A distribution of rights pursuant to a stockholder rights plan will not trigger an adjustment to the Fixed Conversion Rates pursuant to Section 11(a)(ii) or Section 11(a)(iii) above.

(b) Adjustment for Tax Reasons. The Corporation may make such increases in each Fixed Conversion Rate, in addition to any other increases required by this Section 11, if the Board of Directors deems it advisable in order to avoid or diminish any income tax to holders of the Common Stock resulting from any dividend or distribution of the Corporation’s shares (or issuance of rights or warrants to acquire shares) or from any event treated as such for income tax purposes or for any other reasons; provided that the same proportionate adjustment must be made to each Fixed Conversion Rate. If any adjustment to the Fixed Conversion Rate is treated as a distribution to any Non-U.S. Holder which is subject to withholding tax, the Corporation (or Transfer Agent or any paying agent on behalf of the Corporation) may set off any withholding tax that is required to be collected with respect to such deemed distribution against cash payments and other distributions otherwise deliverable to such Non-U.S. Holder.

(c) Calculation of Adjustments; Adjustments to Threshold Appreciation Price, Initial Price, Applicable Market Value and Five-Day Average VWAP.

(i) All required calculations will be made to the nearest cent or 1/10,000th of a share.

If an adjustment is made to the Fixed Conversion Rates pursuant to this Section 11, an inversely proportional adjustment shall also be made (x) to the Threshold Appreciation Price and the Initial Price solely for purposes of determining which of clauses (i), (ii) and (iii) of the definition of Conversion Rate shall apply on the Mandatory Conversion Date (subject to

 

29


postponement as described in Section 5(a)), and (y) to the Floor Price. Such adjustment shall be made by dividing each of the Threshold Appreciation Price and the Initial Price by a fraction, the numerator of which shall be either Fixed Conversion Rate immediately after such adjustment pursuant to clause (i), (ii), (iii), (iv) or (v) of Section 11(a) or Section 11(b) and the denominator of which shall be such Fixed Conversion Rate immediately before such adjustment. The Corporation shall make appropriate adjustments to the VWAP per share of Common Stock used to calculate the Applicable Market Value or the Five-Day Average VWAP, as the case may be, to account for any adjustments to the Fixed Conversion Rates that became effective during the period in which the Applicable Market Value or the Five-Day Average VWAP, as the case may be, is being calculated.

(ii) Notwithstanding Section 11(a), no adjustment to the Fixed Conversion Rates shall be made if Holders participate in the transaction that would otherwise require an adjustment (other than in the case of a share split or share combination), at the same time, upon the same terms and otherwise on the same basis as holders of the Common Stock and solely as a result of holding shares of Series A-1 Preferred Stock, as if such Holders held a number of shares of Common Stock equal to the Maximum Conversion Rate as of the Record Date for such transaction, multiplied by the number of shares of Series A-1 Preferred Stock held by such Holders.

(iii) The Fixed Conversion Rates shall not be adjusted except as provided herein. Without limiting the foregoing, the Fixed Conversion Rates shall not be adjusted for:

(A) the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on the Corporation’s securities and the investment of additional optional amounts in the Common Stock under any plan;

(B) the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future employee, director or consultant benefit plan, employee agreement or arrangement or program of the Corporation or any Subsidiaries of the Corporation;

(C) the issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security outstanding as of the Issue Date;

(D) a change solely in the par value of the Common Stock;

(E) stock repurchases that are not tender offers, including structured or derivative transactions;

(F) as a result of a tender offer solely to holders of fewer than 100 shares of Common Stock;

(G) a third-party tender or exchange offer; or

 

30


(H) the payment of dividends on the Series A-1 Preferred Stock, whether in cash or in shares of Common Stock.

(iv) The Corporation shall have the power to resolve any ambiguity and its action in so doing, as evidenced by a resolution of the Board of Directors, shall be final and conclusive unless clearly inconsistent with the intent hereof.

(d) Notice of Adjustment. Whenever a Fixed Conversion Rate or the Fundamental Change Conversion Rate, as applicable, is to be adjusted, the Corporation shall: (i) compute such adjusted Fixed Conversion Rate or the Fundamental Change Conversion Rate, as applicable, and prepare and transmit to the Transfer Agent an Officers’ Certificate setting forth such adjusted Fixed Conversion Rate or the Fundamental Change Conversion Rate, as applicable, the method of calculation thereof in reasonable detail and the facts requiring such adjustment and upon which such adjustment is based; (ii) as soon as practicable following the determination of a revised Fixed Conversion Rate or Fundamental Change Conversion Rate, as applicable, provide, or cause to be provided, a written notice to Holders of the occurrence of such event and (iii) as soon as practicable following the determination of a revised Fixed Conversion Rate or Fundamental Change Conversion Rate, as applicable, provide, or cause to be provided, to Holders a statement setting forth in reasonable detail the method by which the adjustment to such Fixed Conversion Rate or the Fundamental Change Conversion Rate, as applicable, was determined and setting forth such revised Fixed Conversion Rate or Fundamental Change Conversion Rate, as applicable.

(e) Recapitalizations, Reclassifications and Changes of the Common Stock. In the event of:

(A) any recapitalization, reclassification or change of the Common Stock (other than changes only in par value or resulting from a subdivision or combination);

(B) any consolidation or merger of the Corporation with or into another Person or any statutory exchange or binding share exchange; or

(C) any sale, transfer, lease or conveyance to another Person of all or substantially all of the property and assets of the Corporation and its Subsidiaries;

in each case as a result of which the shares of Common Stock are exchanged for, or converted into, other securities, property or assets (including cash or any combination thereof) (any such event, a “Reorganization Event”), then, at the effective time of such Reorganization Event, each share of Series A-1 Preferred Stock outstanding immediately prior to such Reorganization Event shall, without the consent of Holders, become convertible into the kind and amount of such other securities, property or assets (including cash or any combination thereof) that holders of the Common Stock received in such Reorganization Event (the “Exchange Property”), and, at the effective time of such Reorganization Event, the Corporation shall amend its Certificate of Incorporation to provide for such change in the convertibility of the Series A-1 Preferred Stock; provided that if the kind and amount of Exchange Property receivable upon such Reorganization Event is not the same for each share of Common Stock held immediately prior to such

 

31


Reorganization Event by a Person, then the Exchange Property receivable upon such Reorganization Event shall be deemed to be the weighted average of the types and amounts of consideration received by the holders of the Common Stock that affirmatively make an election with respect to the kind and amount of Exchange Property so receivable (or of all such holders if none makes an election). The Conversion Rate then in effect shall be applied on the applicable Conversion Date to the amount of such Exchange Property received per share of Common Stock in the Reorganization Event (a “Unit of Exchange Property”), as determined in accordance with this Section 11(e). For the purpose of determining which clause of the definition of Conversion Rate shall apply on the Mandatory Conversion Date (subject to postponement as described in Section 5(a)) and for the purpose of calculating the Conversion Rate if clause (ii) of the definition thereof is applicable, the value of a Unit of Exchange Property shall be determined in good faith by the Board of Directors, except that if a Unit of Exchange Property includes common stock or American Depositary Receipts (“ADRs”) that are traded on a U.S. national securities exchange, the value of such common stock or ADRs shall be the Applicable Market Value determined with regard to a share of such common stock or a single ADR, as the case may be (or for the purpose of determining the Stock Price on a Fundamental Change Conversion Date, the value of such common stock or ADRs shall be the Five-Day Average VWAP determined with regard to a share of such common stock or a single ADR, as the case may be). For the purpose of paying accrued and unpaid dividends in Units of Exchange Property in accordance with Section 4, the value of a Unit of Exchange Property shall equal 97% of the value determined pursuant to the immediately preceding sentence.

The above provisions of this Section 11(e) shall similarly apply to successive Reorganization Events and the provisions of Section 11(a)-(d) shall apply to any shares of capital stock of the Corporation (or of any successor) received by the holders of Common Stock in any such Reorganization Event.

The amendment to the Certificate of Incorporation providing that the Series A-1 Preferred Stock shall be convertible into Exchange Property shall also provide for anti-dilution and other adjustments that are as nearly equivalent as possible to the adjustments described under this Section 11. The Corporation shall not become a party to any Reorganization event unless the terms of such transaction are consistent with this Section 11(e).

The Corporation (or any successor) shall, as soon as reasonably practicable (but in any event within five Business Days) after the occurrence of any Reorganization Event, provide written notice to the Holders of such occurrence of such Reorganization Event and of the kind and amount of the cash, securities or other property that constitute the Exchange Property. Failure to deliver such notice shall not affect the operation of this Section 11(e).

(f) For purposes of this Section 11, the number of shares of Common Stock at any time outstanding shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.

Section 12. Liquidation Rights.

 

32


(a) Voluntary or Involuntary Liquidation. In the event of any liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, each Holder shall be entitled to receive for each share of Series A-1 Preferred Stock, out of the assets of the Corporation or proceeds thereof (whether capital or surplus) available for distribution to stockholders of the Corporation, subject to the rights of any creditors of the Corporation, before any payment or distribution of such assets or proceeds is made to or set aside for the holders of Common Stock and any other Junior Stock of the Corporation, payment in full in an amount equal to the sum of (x) the Initial Liquidation Preference and (y) an amount equal to any accrued and unpaid dividends on each share of Series A-1 Preferred Stock, whether or not declared, to (but not including) the date fixed for liquidation, dissolution or winding up (such amounts collectively, the “Liquidation Preference”).

(b) Partial Payment. If in any distribution described in Section 12(a) the assets of the Corporation or proceeds thereof are not sufficient to pay in full the amounts payable with respect to all outstanding shares of Series A-1 Preferred Stock and any Parity Stock as to such distribution, Holders and the holders of such Parity Stock shall share ratably in any such distribution in proportion to the full accrued and unpaid respective distributions to which they are entitled.

(c) Residual Distributions. After payment of the full amount of the Liquidation Preference, including an amount equal to any accrued and unpaid dividends, to which they are entitled, Holders will have no right or claim to any of the remaining assets of the Corporation (or proceeds thereof).

(d) Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this Section 12, the merger or consolidation of the Corporation with or into any other corporation or other entity, or the sale, lease or exchange (for cash, securities or other property) of all or substantially all of the assets of the Corporation, shall not constitute a liquidation, dissolution or winding up of the Corporation.

Section 13. No Sinking Fund. The Series A-1 Preferred Stock will not be subject to any mandatory redemption, sinking fund or other similar provisions.

Section 14. Status of Converted or Repurchased Shares. Shares of Series A-1 Preferred Stock that are duly converted in accordance herewith or repurchased or otherwise acquired by the Corporation shall revert to authorized but unissued shares of Preferred Stock, undesignated as to series and available for future issuance; provided that any such cancelled shares of Series A-1 Preferred Stock may be reissued only as shares of any series of Preferred Stock other than Series A-1 Preferred Stock.

Section 15. Voting Rights.

(a) General. Holders shall not have any voting rights in respect of their shares of Series A-1 Preferred Stock except as set forth below or as otherwise from time to time required by law or the Certificate of Incorporation. Except as provided herein with respect to voting rights allocated pro rata with other classes or series of Parity Stock based on the liquidation preference of each such class or series, Holders will be entitled to one vote for each such share on any matter on which Holders are entitled to vote, including any action by written consent.

 

33


(b) Preferred Directors. Whenever, at any time or times, dividends payable on the shares of Series A-1 Preferred Stock have not been paid for an aggregate of six or more Dividend Periods, whether or not consecutive (an “Event of Non-payment”), the Holders will have the right, with holders of shares of any one or more other classes or series of outstanding Parity Stock upon which like voting rights have been conferred and are exercisable at the time, voting together as a class (and with voting rights allocated pro rata based on the liquidation preference of each such class or series), to elect two directors (together, the “Preferred Directors” and each, a “Preferred Director”) at the next annual meeting or special meeting of the Corporation’s stockholders and at each subsequent annual meeting or special meeting of the Corporation’s stockholders until all accrued and unpaid dividends have been paid in full or fully set aside for payment on Series A-1 Preferred Stock, at which time such right will terminate, except as otherwise provided herein or expressly provided by law, subject to reverting in the event of each and every Event of Non-payment; provided that it will be a qualification for election for any Preferred Director that the election of such Preferred Director will not cause the Corporation to violate any corporate governance requirements of any securities exchange or other trading facility on which the Corporation’s securities may then be listed or traded that listed or traded companies, including that the Corporation have a majority of independent directors.

Upon any termination of the right set forth in the immediately preceding paragraph, the Preferred Directors shall cease to be qualified as directors, the term of office of all Preferred Directors then in office shall terminate immediately and the authorized number of directors shall be reduced by the number of Preferred Directors elected as described above.

Any Preferred Director may be removed at any time, with or without cause, and any vacancy created thereby may be filled, only at a meeting of the Corporation’s stockholders at which this is a permitted action by the affirmative vote of the Holders of a majority in voting power of the shares of Series A-1 Preferred Stock at the time outstanding voting separately as a class together with the holders of shares of Parity Stock upon which like voting rights have been conferred and are exercisable at the time (and with voting rights allocated pro rata based on the liquidation preference of each such class or series), to the extent the voting rights of such Holders described above are then exercisable. If the office of any Preferred Director becomes vacant for any reason other than removal from office as described above, the remaining Preferred Director may choose a successor who will hold office for the unexpired term in respect of which such vacancy occurred.

At any time after the right of Holders to elect Preferred Directors has become vested and is continuing but a meeting of the Corporation’s stockholders to elect such Preferred Directors has not yet been held, or if a vacancy shall exist in the office of any such Preferred Director that has not been filled by the remaining Preferred Director, the Board of Directors may, but shall not be required to, call a special meeting of Holders and the holders of any one or more classes or series of outstanding Parity Stock upon which like voting rights have been conferred and are exercisable at the time, for the purpose of electing the Preferred Directors that such Holders and holders are entitled to elect; provided that in the event the Board of Directors does not call such special meeting, such election will be held at the next annual meeting. At any such meeting held for the purpose of electing such Preferred Director or Preferred Directors, as the case may be, (whether at an annual meeting or special meeting), the presence in person or by proxy of the Holders and holders of shares representing at least a majority of the voting power of

 

34


the Series A-1 Preferred Stock and any Parity Stock having similar voting rights shall be required to constitute a quorum of the Series A-1 Preferred Stock and any Parity Stock having similar voting rights. The affirmative vote of Holders and the holders of any Parity Stock having similar voting rights constituting a majority of the voting power of such shares present at such meeting, in person or by proxy, shall be sufficient to elect any such Preferred Director.

(c) Voting Rights as to Particular Matters. So long as any shares of Series A-1 Preferred Stock are outstanding, in addition to any other vote or consent of stockholders required by law or by the Certificate of Incorporation, the affirmative vote or consent of the Holders of at least two-thirds in voting power of the shares of Series A-1 Preferred Stock at the time outstanding and all other Parity Stock having similar voting rights that are exercisable at the time, voting together as a single class (and with voting rights allocated pro rata based on the liquidation preference of each such class or series), given in person or by proxy, either by vote at any meeting called for such purpose, or by written consent in lieu of such meeting, shall be necessary for effecting or validating:

(i) Authorization of Senior Stock. Any amendment or alteration of the Certificate of Incorporation to authorize or create or increase the authorized amount of, or any issuance of, any shares of, or any securities convertible into or exchangeable or exercisable for shares of, any class or series of capital stock of the Corporation ranking senior to Series A-1 Preferred Stock with respect to either or both the payment of dividends and/or the distribution of assets on any liquidation, dissolution or winding up of the Corporation (“Senior Stock”);

(ii) Amendment of Series A-1 Preferred Stock. Any amendment, alteration or repeal of any provision of the Certificate of Incorporation (including, unless no vote on such merger or consolidation is required by Section 15(c)(iii), any amendment, alteration or repeal by means of a merger, consolidation or otherwise) so as to adversely affect the rights, preferences, privileges or voting powers of the Series A-1 Preferred Stock; or

(iii) Share Exchanges, Reclassifications, Mergers and Consolidations. Any consummation of a binding share exchange, a reclassification involving the Series A-1 Preferred Stock, or a merger or consolidation of the Corporation with or into another corporation or other entity, unless in each case (x) the Series A-1 Preferred Stock remains outstanding or, in the case of any such merger or consolidation with respect to which the Corporation is not the surviving or resulting entity, is converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (y) the Series A-1 Preferred Stock remaining outstanding or such new preference securities, as the case may be, have such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers, and limitations and restrictions thereof, of Series A-1 Preferred Stock immediately prior to such consummation, taken as a whole;

provided , however , that for all purposes of this Section 15(c), the creation and issuance, or an increase in the authorized or issued amount, whether pursuant to pre-emptive or similar rights or otherwise, of any series of Preferred Stock, or any securities convertible into or exchangeable or

 

35


exercisable for any other series of Preferred Stock (including the Series A-1 Preferred Stock), ranking equally with and/or junior to Series A-1 Preferred Stock with respect to the payment of dividends (whether such dividends are cumulative or non-cumulative) and the distribution of assets upon liquidation, dissolution or winding up of the Corporation shall not be deemed to adversely affect the rights, preferences, privileges or voting powers, and shall not require the affirmative vote or consent of, the Holders.

(d) Procedures for Voting and Consents. The rules and procedures for calling and conducting any meeting of Holders (including, without limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies at such a meeting, the obtaining of written consents and any other aspect or matter with regard to such a meeting or such consents shall be governed by any rules the Board of Directors, in its discretion, may adopt from time to time, which rules and procedures shall conform to the requirements of the Certificate of Incorporation, the By-laws, applicable law and the rules of any national securities exchange or other trading facility on which the Series A-1 Preferred Stock is listed or traded at the time.

Section 16. Record Holders. To the fullest extent permitted by applicable law, the Corporation and the Transfer Agent may deem and treat the Record Holder of any share of Series A-1 Preferred Stock as the absolute, true and lawful owner thereof for all purposes, including, without limitation, for purposes of making payment and settling conversions, to the fullest extent permitted by law and neither the Corporation nor the Transfer Agent shall be affected by any notice to the contrary.

Section 17. Notices. All notices or communications in respect of Series A-1 Preferred Stock shall be sufficiently given if given in writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as may be permitted in the Certificate of Incorporation, the By-laws or by applicable law. Notwithstanding the foregoing, if shares of Series A-1 Preferred Stock are issued in book-entry form through DTC or any similar facility, such notices may be given to the Holders in any manner permitted by such facility.

Section 18. No Pre-emptive Rights; No Redemption Right. No share of Series A-1 Preferred Stock or share of Common Stock issued upon conversion of the Series A-1 Preferred Stock shall have any rights of preemption whatsoever as to any securities of the Corporation, or any warrants, rights or options issued or granted with respect thereto, regardless of how such securities, or such warrants, rights or options, may be designated, issued or granted. The Series A-1 Preferred Stock are not redeemable.

Section 19. Replacement Stock Certificates.

(a) If physical certificates are issued, and any of the Series A-1 Preferred Stock certificates shall be mutilated, lost, stolen or destroyed, the Corporation shall, at the expense of the Holder thereof, issue, in exchange and in substitution for and upon cancellation of the mutilated Series A-1 Preferred Stock certificate, or in lieu of and substitution for the lost, stolen or destroyed Series A-1 Preferred Stock certificate, a new Series A-1 Preferred Stock certificate of like tenor and representing an equivalent amount of shares of Series A-1 Preferred Stock, but only upon receipt of evidence of such loss, theft or destruction of such Series A-1 Preferred Stock certificate and indemnity, if requested, satisfactory to the Corporation and the Transfer Agent.

 

36


(b) The Corporation is not required to issue any certificate representing the Series A-1 Preferred Stock on or after the Mandatory Conversion Date (subject to postponement as described in Section 5(a)). In lieu of the delivery of a replacement certificate following the Mandatory Conversion Date (subject to postponement as described in Section 5(a)), the Transfer Agent, upon delivery of the evidence and indemnity described in clause (a) above, shall deliver the shares of Common Stock issuable, along with any other consideration payable or deliverable, pursuant to the terms of the Series A-1 Preferred Stock formerly evidenced by the certificate.

Section 20. Transfer Agent, Registrar, Conversion and Dividend Disbursing Agent. The duly appointed Transfer Agent, Registrar, conversion and dividend disbursing agent for the Series A-1 Preferred Stock shall be Computershare Trust Company N.A. The Corporation may, in its sole discretion, remove the Transfer Agent in accordance with the agreement between the Corporation and the Transfer Agent; provided that the Corporation shall appoint a successor transfer agent who shall accept such appointment prior to the effectiveness of such removal. Upon any such removal or appointment, the Corporation shall send notice thereof by first-class mail, postage prepaid, to the Holders.

Section 21. Form.

(a) The Series A-1 Preferred Stock shall be issued in the form of one or more permanent global shares of Series A-1 Preferred Stock in definitive, fully registered form eligible for book-entry settlement with the global legend (the “Global Shares Legend”) as set forth on the form of Series A-1 Preferred Stock certificate attached hereto as Schedule G (each, a “Global Preferred Share”), which is hereby incorporated in and expressly made part of this Certificate of Incorporation. The Global Preferred Shares may have notations, legends or endorsements required by law, stock exchange rules, agreements to which the Corporation is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Corporation). The Global Preferred Shares shall be deposited on behalf of the Holders represented thereby with the Registrar, at its New York office as custodian for DTC (the “Depositary”), and registered in the name of the Depositary or a nominee of the Depositary, duly executed by the Corporation and countersigned and registered by the Registrar as hereinafter provided. The aggregate number of shares represented by each Global Preferred Share may from time to time be increased or decreased by adjustments made on the records of the Registrar and the Depositary or its nominee as hereinafter provided.

This Section 21(a) shall apply only to a Global Preferred Share deposited with or on behalf of the Depositary. The Corporation shall execute and the Registrar shall, in accordance with this Section 21(a), countersign and deliver any Global Preferred Shares that (i) shall be registered in the name of Cede & Co. or other nominee of the Depositary and (ii) shall be delivered by the Registrar to Cede & Co. or pursuant to instructions received from Cede & Co. or held by the Registrar as custodian for the Depositary pursuant to an agreement between the Depositary and the Registrar. Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Certificate of Incorporation with respect to any Global Preferred Share held on their behalf by the Depositary or by the Registrar as the custodian of the

 

37


Depositary, or under such Global Preferred Share, and the Depositary may be treated by the Corporation, the Registrar and any agent of the Corporation or the Registrar as the absolute owner of such Global Preferred Share for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Corporation, the Registrar or any agent of the Corporation or the Registrar from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its Agent Members, the operation of customary practices of the Depositary governing the exercise of the rights of a holder of a beneficial interest in any Global Preferred Share. The Holder of the Global Preferred Shares may grant proxies or otherwise authorize any Person to take any action that a Holder is entitled to take pursuant to the Global Preferred Shares or the Certificate of Incorporation.

Owners of beneficial interests in Global Preferred Shares shall not be entitled to receive physical delivery of certificated shares of Series A-1 Preferred Stock, unless (x) the Depositary notifies the Corporation that it is unwilling or unable to continue as Depositary for the Global Preferred Shares and the Corporation does not appoint a qualified replacement for the Depositary within 90 days or (y) the Depositary ceases to be a “clearing agency” registered under the Exchange Act and the Corporation does not appoint a qualified replacement for the Depositary within 90 days. In any such case, the Global Preferred Shares shall be exchanged in whole for definitive stock certificates that are not issued in global form, with the same terms and of an equal aggregate Liquidation Preference, and such definitive stock certificates shall be registered in the name or names of the Person or Persons specified by the Depositary in a written instrument to the Registrar.

(b) Signature. Two Officers permitted by applicable law shall sign each Global Preferred Share for the Corporation, in accordance with the Corporation’s Bylaws and applicable law, by manual or facsimile signature. If an Officer whose signature is on a Global Preferred Share no longer holds that office at the time the Registrar countersigned such Global Preferred Share, such Global Preferred Share shall be valid nevertheless. A Global Preferred Share shall not be valid until an authorized signatory of the Registrar manually countersigns such Global Preferred Share. Each Global Preferred Share shall be dated the date of its countersignature. The foregoing paragraph shall likewise apply to any certificate representing shares of Series A-1 Preferred Stock.

Section 22. Stock Transfer and Stamp Taxes. The Corporation shall pay any and all stock transfer and documentary stamp taxes that may be payable in respect of any issuance or delivery of shares of Series A-1 Preferred Stock or shares of Common Stock or other securities issued on account of Series A-1 Preferred Stock pursuant hereto or certificates representing such shares or securities. The Corporation shall not, however, be required to pay any such tax that may be payable in respect of any transfer involved in the issuance or delivery of shares of Series A-1 Preferred Stock or Common Stock or other securities in a name other than that in which the shares of Series A-1 Preferred Stock with respect to which such shares or other securities are issued or delivered were registered, or in respect of any payment to any Person other than a payment to the Holder thereof, and shall not be required to make any such issuance, delivery or payment unless and until the Person otherwise entitled to such issuance, delivery or payment has paid to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid or is not payable.

 

38


Section 23. Listing. The Corporation hereby covenants and agrees that, if its listing application for the Series A-1 Preferred Stock is approved, upon such listing, the Corporation shall use its reasonable best efforts to keep the Series A-1 Preferred Stock listed on the New York Stock Exchange.

If the Global Preferred Share or Global Preferred Shares, as the case maybe, or the Series A-1 Preferred Stock represented thereby shall be listed on the New York Stock Exchange or any other stock exchange, the Depositary may, with the written approval of the Corporation, appoint a registrar (acceptable to the Corporation) for registration of such Global Preferred Share or Global Preferred Shares, as the case may be, or the Series A-1 Preferred Stock represented thereby in accordance with the requirements of such exchange. Such registrar (which may be the Registrar if so permitted by the requirements of such exchange) may be removed and a substitute registrar appointed by the Registrar upon the request or with the written approval of the Corporation. If the Global Preferred Share or Global Preferred Shares, as the case may be or the Series A-1 Preferred Stock represented thereby are listed on one or more other stock exchanges, the Registrar will, at the request and expense of the Corporation, arrange such facilities for the delivery, transfer, surrender and exchange of such Global Preferred Share or Global Preferred Shares, as the case may be, or the Series A-1 Preferred Stock represented thereby as may be required by law or applicable stock exchange regulations.

Section 24. Ranking. Notwithstanding anything in this Certificate of Incorporation to the contrary, the Series A-1 Preferred Stock will, with respect to dividend rights or rights upon the liquidation, winding-up or dissolution of the Corporation rank (i) senior to any Junior Stock, (ii) on parity with any Parity Stock and (iii) junior to any Senior Stock and the Corporation’s existing and future indebtedness (including trade payables).

Section 25. Other Rights. The shares of Series A-1 Preferred Stock shall not have any rights, preferences, privileges or voting powers or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth herein or in the Certificate of Incorporation or as provided by applicable law.

 

39


Schedule G

[FORM OF FACE OF 5.250% MANDATORY CONVERTIBLE PREFERRED STOCK, SERIES A-1]

[INCLUDE FOR GLOBAL PREFERRED SHARES]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR THE TRANSFER AGENT NAMED ON THE FACE OF THIS CERTIFICATE, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE STATEMENT WITH RESPECT TO SHARES. IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE TRANSFER AGENT NAMED ON THE FACE OF THIS CERTIFICATE SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.


Certificate Number [    ]    [Initial] Number of Shares of Series A-1    Preferred Stock [    ]
      CUSIP [    ]
      ISIN [    ]

ENVISION HEALTHCARE CORPORATION

5.250% Mandatory Convertible Preferred Stock, Series A-1

(par value $0.01 per share)

(initial liquidation preference $100 per share)

ENVISION HEALTHCARE CORPORATION, a Delaware corporation (the “Corporation”), hereby certifies that [                    ] / Cede & Co. (the “Holder”), is the registered owner of [0] / [the number shown on Schedule I hereto of] fully paid and non-assessable shares of the Corporation’s designated 5.250% Mandatory Convertible Preferred Stock, Series A-1, par value $0.01 per share, initial liquidation preference of $100 per share (the “Series A-1 Preferred Stock”). The shares of Series A-1 Preferred Stock are transferable on the books and records of the Registrar, in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer. The designations, rights, privileges, restrictions, preferences and other terms and provisions of the Series A-1 Preferred Stock represented hereby are, and shall in all respects be subject to the provisions of the Second Amended and Restated Certificate of Incorporation dated December 1, 2016, as amended from time to time (the “Certificate of Incorporation”). Capitalized terms used herein but not defined shall have the meaning given them in the Certificate of Incorporation. The Corporation will provide a copy of the Certificate of Incorporation to a Holder without charge upon written request to the Corporation at its principal place of business.

Reference is hereby made to select provisions of the Series A-1 Preferred Stock set forth on the reverse hereof, and to the Certificate of Incorporation, which select provisions and the Certificate of Incorporation shall for all purposes have the same effect as if set forth at this place.

Upon receipt of this executed certificate, the Holder is bound by the Certificate of Incorporation and is entitled to the benefits thereunder.

Unless the Registrar has properly countersigned this share certificate representing the shares of Series A-1 Preferred Stock, such shares of Series A-1 Preferred Stock shall not be entitled to any benefit under the Certificate of Incorporation or be valid or obligatory for any purpose.

IN WITNESS WHEREOF, this certificate has been executed on behalf of the Corporation by an Officer of the Corporation this [    ]th day of [●] [2016].

 

ENVISION HEALTHCARE CORPORATION
By:    
Name:
Title:


REGISTRAR’S COUNTERSIGNATURE

These are shares of Series A-1 Preferred Stock referred to in the within-mentioned Certificate of Incorporation.

Dated: [                    ]

COMPUTERSHARE TRUST COMPANY N.A., as Registrar

 

By:    
Name:
Title:


[FORM OF REVERSE OF CERTIFICATE FOR SERIES A-1 PREFERRED STOCK]

Cumulative dividends on each share of Series A-1 Preferred Stock shall be payable subject to the terms and conditions of, in the manner and at the applicable rate provided in the Certificate of Incorporation.

The shares of Series A-1 Preferred Stock shall be convertible into shares of common stock, par value $0.01 per share, of the Corporation or Units of Exchange Property, as the case may be, in the manner and in accordance with the terms set forth in the Certificate of Incorporation.

The Corporation shall furnish without charge to each holder who so requests a summary of the authority of the board of directors to determine variations for future series within a class of stock and the designations, limitations, preferences and relative, participating, optional or other special rights of each class or series of share capital issued by the Corporation and the qualifications, limitations or restrictions of such preferences and/or rights.


NOTICE OF CONVERSION

(To be Executed by the Holder in order to Convert the

Mandatory Convertible Preferred Stock, Series A-1)

The undersigned hereby irrevocably elects to convert (the “Conversion”) [    ] 5.250% Mandatory Convertible Preferred Stock, Series A-1 (the “Series A-1 Preferred Stock”), of Envision Healthcare Corporation (the “Corporation”), represented by stock certificate No(s). [    ] (the “Series A-1 Preferred Stock Certificate(s)”), into shares of common stock, par value $0.01 per share, of the Corporation (the “Common Stock”) according to the conditions of the Second Amended and Restated Certificate of Incorporation establishing the terms of the Series A-1 Preferred Stock (the “Certificate of Incorporation”), as of the date written below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned shall pay all transfer taxes payable with respect thereto, if any. Each Series A-1 Preferred Stock Certificate (or evidence of loss, theft or destruction thereof) is attached hereto.

Capitalized terms used but not defined herein shall have the meanings ascribed thereto in or pursuant to the Certificate of Incorporation.

Date of Conversion:                     

Applicable Conversion Rate:                     

Number of Series A-1 Preferred Stock to be Converted:                     

Shares of Common Stock to be Issued: *                     

Signature:                     

Name:                     

Address:**                     

Fax No.:                     

 

* The Corporation is not required to issue shares of Common Stock until the original Series A-1 Preferred Stock Certificate(s) (or evidence of loss, theft or destruction thereof) to be converted are received by the Corporation or the Conversion and Dividend Disbursing Agent.
** Address where shares of Common Stock and any other payments or certificates shall be sent by the Corporation.


ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers the shares of Series A-1 Preferred Stock evidenced hereby to:

 

  
(Insert assignee’s social security or taxpayer identification, if any)

 

  
(Insert address and zip code of assignee)   

 

  
(Insert assignee’s social security or taxpayer identification, if any)

 

  
and irrevocably appoints:   

 

  

 

  

as agent to transfer the shares of Series A-1 Preferred Stock evidenced hereby on the books of the Transfer Agent. The agent may substitute another to act for him or her.

Date:

Signature:                                                              

(Sign exactly as your name appears on the other side of this Certificate)

Signature Guarantee:                                                              

(Signature must be guaranteed by an “eligible guarantor institution” that is a bank, stockbroker, savings and loan association or credit union meeting the requirements of the Transfer Agent, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.)


Schedule I l

Envision Healthcare Corporation

Global Preferred Share

5.250% Mandatory Convertible Preferred Stock, Series A-1

Certificate Number: [    ]

The number of shares of Series A-1 Preferred Stock initially represented by this Global Preferred Share shall be                      . Thereafter the Transfer Agent and Registrar shall note changes in the number of shares of Series A-1 Preferred Stock evidenced by this Global Preferred Share in the table set forth below:

 

Amount of Decrease

in Number of Shares

Represented by this

Global Preferred Share

    

Amount of Increase in
Number of Shares
Represented by this

Global Preferred Share

    

Number of Shares
Represented by this

Global Preferred

Share following

Decrease or Increase

    

Signature of

Authorized Officer of

Transfer Agent and

Registrar

              

 

1   Attach Schedule I only to Global Preferred Shares.

Exhibit 3.2

ENVISION HEALTHCARE CORPORATION

AMENDED AND RESTATED BY-LAWS

Effective as of December 1, 2016


ENVISION HEALTHCARE CORPORATION

BY-LAWS


Table of Contents

 

          Page  

ARTICLE I MEETINGS OF STOCKHOLDERS

     1   

Section 1.01.

  

Annual Meetings

     1   

Section 1.02.

  

Special Meetings

     1   

Section 1.03.

  

Participation in Meetings by Remote Communication

     1   

Section 1.04.

  

Notice of Meetings; Waiver of Notice

     2   

Section 1.05.

  

Proxies

     3   

Section 1.06.

  

Voting Lists

     3   

Section 1.07.

  

Quorum

     3   

Section 1.08.

  

Voting

     4   

Section 1.09.

  

Adjournment

     5   

Section 1.10.

  

Organization; Procedure; Inspection of Elections

     5   

Section 1.11.

  

Consent of Stockholders in Lieu of Meeting

     6   

Section 1.12.

  

Notice of Stockholder Proposals and Nominations

     6   

ARTICLE II BOARD OF DIRECTORS

     10   

Section 2.01.

  

General Powers

     10   

Section 2.02.

  

Number and Term of Office

     11   

Section 2.03.

  

Classification; Election of Directors

     11   

Section 2.04.

  

Regular Meetings

     11   

Section 2.05.

  

Special Meetings

     11   

Section 2.06.

  

Notice of Meetings; Waiver of Notice

     11   

Section 2.07.

  

Quorum; Voting

     11   

Section 2.08.

  

Action by Telephonic Communications

     11   

Section 2.09.

  

Adjournment

     12   

Section 2.10.

  

Action Without a Meeting

     12   

Section 2.11.

  

Regulations

     12   

Section 2.12.

  

Resignations of Directors

     12   

Section 2.13.

  

Removal of Directors

     12   

Section 2.14.

  

Vacancies and Newly Created Directorships

     12   

Section 2.15.

  

Compensation

     12   

Section 2.16.

  

Reliance on Accounts and Reports, etc

     12   

 

i


ARTICLE III COMMITTEES

     13   

Section 3.01.

  

How Constituted

     13   

Section 3.02.

  

Members and Alternate Members

     13   

Section 3.03.

  

Committee Procedures

     13   

Section 3.04.

  

Meetings and Actions of Committees

     14   

Section 3.05.

  

Resignations and Removals

     14   

Section 3.06.

  

Vacancies

     14   

ARTICLE IV OFFICERS

     14   

Section 4.01.

  

Officers

     14   

Section 4.02.

  

Election

     15   

Section 4.03.

  

Compensation

     15   

Section 4.04.

  

Removal and Resignation; Vacancies

     15   

Section 4.05.

  

Authority and Duties of Officers

     15   

Section 4.06.

  

Chief Executive Officer and President

     15   

Section 4.07.

  

Vice Presidents

     16   

Section 4.08.

  

Secretary

     16   

Section 4.09.

  

Treasurer

     17   

ARTICLE V CAPITAL STOCK

     18   

Section 5.01.

  

Certificates of Stock; Uncertificated Shares

     18   

Section 5.02.

  

Facsimile Signatures

     18   

Section 5.03.

  

Lost, Stolen or Destroyed Certificates

     18   

Section 5.04.

  

Transfer of Stock

     18   

Section 5.05.

  

Registered Stockholders

     19   

Section 5.06.

  

Transfer Agent and Registrar

     19   

ARTICLE VI INDEMNIFICATION

     19   

Section 6.01.

  

Indemnification

     19   

Section 6.02.

  

Advance of Expenses

     20   

Section 6.03.

  

Procedure for Indemnification

     20   

Section 6.04.

  

Burden of Proof

     20   

Section 6.05.

  

Contract Right; Non-Exclusivity; Survival

     21   

 

ii


Section 6.06.

  

Insurance

     21   

Section 6.07.

  

Employees and Agents

     21   

Section 6.08.

  

Interpretation; Severability

     21   

ARTICLE VII OFFICES

     22   

Section 7.01.

  

Registered Office

     22   

Section 7.02.

  

Other Offices

     22   

ARTICLE VIII GENERAL PROVISIONS

     22   

Section 8.01.

  

Dividends

     22   

Section 8.02.

  

Reserves

     22   

Section 8.03.

  

Execution of Instruments

     22   

Section 8.04.

  

Voting as Stockholder

     23   

Section 8.05.

  

Fiscal Year

     23   

Section 8.06.

  

Seal

     23   

Section 8.07.

  

Books and Records; Inspection

     23   

Section 8.08.

  

Electronic Transmission

     23   

ARTICLE IX AMENDMENT OF BY-LAWS

     23   

Section 9.01.

  

Amendment

     23   

ARTICLE X CONSTRUCTION

     24   

Section 10.01.

  

Construction

     24   

ARTICLE XI CERTAIN GOVERNANCE MATTERS

     24   

Section 11.01.

  

Definitions

     24   

Section 11.02.

  

Composition of the Board

     24   

Section 11.03.

  

Chairman

     25   

Section 11.04.

  

Chief Executive Officer and President

     25   

Section 11.05.

  

Required Committees

     26   

Section 11.06.

  

Amendments

     26   

Section 11.07.

  

Sunset

     26   

 

iii


ENVISION HEALTHCARE CORPORATION

AMENDED AND RESTATED BY-LAWS

As amended and restated effective December 1, 2016

ARTICLE I

MEETINGS OF STOCKHOLDERS

Section 1.01. Annual Meetings . The annual meeting of the stockholders of Envision Healthcare Corporation (the “ Corporation ”) for the election of directors to succeed directors whose terms expire and for the transaction of such other business as properly may come before such meeting shall be held each year either within or without the State of Delaware, on such date and at such place, if any, and time as exclusively may be fixed from time to time by resolution of the Corporation’s Board of Directors (the “ Board ”) and set forth in the notice or waiver of notice of the meeting. In lieu of holding an annual meeting of the stockholders at a designated place, the Board may, in its sole discretion, determine that any annual meeting of stockholders may be held solely by means of remote communication. The Board may postpone, reschedule or cancel any annual meeting of stockholders previously scheduled by the Board.

Section 1.02. Special Meetings . Special meetings of the stockholders of the Corporation may be called only in the manner set forth in the Second Amended and Restated Certificate of Incorporation of the Corporation, as amended from time to time (the “ Certificate of Incorporation ”). Notice of every special meeting of the stockholders of the Corporation shall state the purpose or purposes of such meeting. Except as otherwise required by law, the business conducted at a special meeting of stockholders of the Corporation shall be limited exclusively to the business set forth in the Corporation’s notice of meeting, and the individual or group calling such meeting shall have exclusive authority to determine the business included in such notice. Any special meeting of the stockholders shall be held either within or without the State of Delaware, at such place, if any, and on such date and time, as shall be specified in the notice of such special meeting. In lieu of holding a special meeting of the stockholders at a designated place, the Board may, in its sole discretion, determine that any special meeting of stockholders may be held solely by means of remote communication.

Section 1.03. Participation in Meetings by Remote Communication. For the purposes of these Bylaws, if authorized by the Board of Directors in its sole discretion, and subject to such guidelines and procedures as the Board of Directors may adopt, stockholders and proxyholders may, by means of remote communication:

(a) participate in a meeting of stockholders; and

(b) be deemed present in person and vote at a meeting of stockholders whether such meeting is to be held at a designated place or solely by means of remote communication, provided that (i) the Corporation shall implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of remote communication is a stockholder or proxyholder, (ii) the Corporation shall implement reasonable measures to provide such stockholders and proxyholders a reasonable opportunity to participate in the meeting and to

 

1


vote on matters submitted to the stockholders, including an opportunity to read or hear the proceedings of the meeting substantially concurrently with such proceedings, and (iii) if any stockholder or proxyholder votes or takes other action at the meeting by means of remote communication, a record of such vote or other action shall be maintained by the Corporation.

Section 1.04. Notice of Meetings; Waiver of Notice .

(a) Unless otherwise required by law, the Secretary or any Assistant Secretary shall cause notice of each meeting of stockholders to be given in a manner permitted by the DGCL not less than 10 days nor more than 60 days prior to the meeting to each stockholder of record entitled to vote at such meeting, subject to such exclusions as are then permitted by the DGCL. The notice shall specify ( i ) the place, if any, date and time of such meeting, ( ii ) the means of remote communications, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such meeting, ( iii ) the record date for determining the stockholders entitled to vote at the meeting, (iv) in the case of a special meeting, the purpose or purposes for which such meeting is called, and ( v ) such other information as may be required by law or as may be deemed appropriate by the Chairman of the Board, Secretary or the Board. If the stockholder list referred to in Section 1.06 of these Amended and Restated By-laws (the “ By-laws ”) is made accessible on an electronic network, the notice of meeting must indicate how the stockholder list can be accessed. If the meeting of stockholders is to be held solely by means of electronic communications, the notice of meeting must provide the information required to access such stockholder list during the meeting.

(b) Notice to stockholders may be given by personal delivery, mail, or, with the consent of the stockholder entitled to receive notice, by facsimile or other means of electronic transmission. If mailed, such notice shall be delivered by postage prepaid envelope directed to each stockholder at such stockholder’s address as it appears in the records of the Corporation and shall be deemed given when deposited in the United States mail. Notice given by electronic transmission pursuant to this subsection shall be deemed given: (i) if by facsimile telecommunication, when directed to a facsimile telecommunication number at which the stockholder has consented to receive notice; (ii) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice; (iii) if by posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (A) such posting and (B) the giving of such separate notice; and (iv) if by any other form of electronic transmission, when directed to the stockholder. An affidavit of the secretary or an assistant secretary or of the transfer agent or other agent of the Corporation that the notice has been given by personal delivery, by mail, or by a form of electronic transmission shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

(c) A written waiver of notice of meeting signed by a stockholder or a waiver by electronic transmission by a stockholder, whether given before or after the meeting time stated in such notice, is deemed equivalent to notice. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need be specified in a waiver of notice. Attendance of a stockholder at a meeting is a waiver of notice of such meeting, except when the stockholder attends a meeting for the express purpose of objecting at the beginning of the meeting to the transaction of any business at the meeting on the ground that the meeting is not lawfully called or convened.

 

2


Section 1.05. Proxies .

(a) Each stockholder entitled to vote at a meeting of stockholders or to express consent to or dissent from corporate action may, in writing without a meeting, authorize another person or persons to act for such stockholder as proxy.

(b) A stockholder may authorize a valid proxy by executing a written instrument signed by such stockholder, or by causing his or her signature to be affixed to such writing by any reasonable means, including but not limited to by facsimile signature, or by transmitting or authorizing an electronic transmission (as defined in Section 8.08 of these By-laws) setting forth an authorization to act as proxy for the person designated as the holder of the proxy, a proxy solicitation firm or a like authorized agent. Proxies by electronic transmission must either set forth, or be submitted with, information from which it can be determined that the electronic transmission was authorized by the stockholder. Any copy, facsimile telecommunication or other reliable reproduction of a writing or transmission created pursuant to this section may be substituted or used in lieu of the original writing or transmission for any and all purposes for which the original writing or transmission could be used if such copy, facsimile telecommunication or other reproduction is a complete reproduction of the entire original writing or transmission.

(c) No proxy may be voted or acted upon after the expiration of three years from the date of such proxy, unless such proxy provides for a longer period. Every proxy is revocable at the pleasure of the stockholder executing it unless the proxy states that it is irrevocable and applicable law makes it irrevocable. A stockholder may revoke any proxy that is not irrevocable by attending the meeting and voting in person or by filing an instrument in writing revoking the proxy or by filing another duly executed proxy bearing a later date with the Secretary.

Section 1.06. Voting Lists . The officer of the Corporation who has charge of the stock ledger of the Corporation shall prepare, at least 10 days before every meeting of the stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order and showing the address of each stockholder and the number of shares registered in the name of each stockholder. This list shall be open to the examination of any stockholder prior to and during the meeting for any purpose germane to the meeting as required by the DGCL or other applicable law on a reasonably accessible electronic network, provided the information required to gain access to such list is provided with the notice of the meeting or during ordinary business hours at the principal place of business of the Corporation. In the event that the corporation determines to make the list available on an electronic network, the Corporation may take reasonable steps to ensure that such information is available only to stockholders of the Corporation. The stock ledger shall be the only evidence as to who are the stockholders entitled by this section to examine the list required by this section or to vote in person or by proxy at any meeting of stockholders.

Section 1.07. Quorum . Except as otherwise required by law, by the Certificate of Incorporation or these By-laws, the presence in person or by proxy of the holders of record of a majority in voting power of the outstanding shares of stock entitled to vote at a meeting of stockholders shall constitute a quorum for the transaction of business at such meeting.

 

3


Section 1.08. Voting .

(a) Except as otherwise provided in the Certificate of Incorporation or by applicable law, every holder of record of shares entitled to vote at a meeting of stockholders is entitled to one vote for each share outstanding in his or her name on the books of the Corporation ( i ) at the close of business on the record date for stockholders entitled to vote at such meeting or ( ii ) if no record date has been fixed, at the close of business on the day next preceding the day on which notice of the meeting is given, or if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. All matters at any meeting at which a quorum is present shall be decided by the affirmative vote of the holders of at least a majority in voting power of the outstanding shares of stock present in person or represented by proxy at the meeting and entitled to vote on the subject matter in question, except as otherwise provided in Section 1.08(b) of these By-laws with respect to the election of directors or unless a different or minimum vote is required by the Certificate of Incorporation or these By-laws, the rules or regulations of any stock exchange applicable to the Corporation, or any law or regulation applicable to the Corporation or its securities, in which case such different or minimum vote shall be the applicable vote on the matter.

(b) Each director nominee in an uncontested election of directors (i.e., an election in which the number of director nominees does not exceed the number of directors to be elected at the meeting) shall be elected to the Board by the vote of a majority of the votes cast with respect to such director nominee’s election. In any contested election of directors (i.e., an election in which the number of director nominees exceeds the number of directors to be elected at the meeting), directors shall be elected by a plurality of the votes cast. For purposes of this section, “a majority of votes cast” means that the number of shares voted “for” a director nominee must exceed the number of votes cast “against” that director nominee’s election. “Abstentions” and “broker non-votes” shall not be counted as votes cast with respect to a director nominee’s election. Following certification of the stockholder vote in an uncontested election, any incumbent director who did not receive a majority of votes cast for his or her election shall promptly tender his or her resignation, contingent upon acceptance of such resignation by the Board in accordance with this Section 1.08(b), to the Chairman of the Board. The Chairman of the Board shall inform the Nominating and Corporate Governance Committee of such tender of resignation, and the Nominating and Corporate Governance Committee shall consider such resignation and recommend to the Board whether to accept the tendered resignation or reject it or whether any other action should be taken. In deciding upon its recommendation, the Nominating and Corporate Governance Committee shall consider all relevant factors, including without limitation the qualifications of the director who has tendered his or her resignation and the director’s contribution to the Corporation and the Board. The Board will act on the recommendation of the Nominating and Corporate Governance Committee no later than 90 days after the certification of the stockholder vote and disclose the decision by filing a Current Report on Form 8-K with the Securities and Exchange Commission. The Board shall consider the factors considered by the Nominating and Corporate Governance Committee and such additional information and factors that the Board deems relevant. An incumbent director who tenders his or her resignation to the Board pursuant to this Section 1.08(b) will not participate in the decision of the Nominating and Corporate Governance Committee or the Board. The stockholders do not have the right to cumulate their votes for the election of directors.

 

4


Section 1.09. Adjournment . Any meeting of stockholders may be adjourned from time to time, by the chairperson of the meeting or by the vote of the holders of a majority of the shares of stock present in person or represented by proxy at the meeting, to reconvene at the same or some other place, and notice need not be given of any such adjourned meeting if the place, if any, and date and time thereof (and the means of remote communication, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such meeting) are announced at the meeting at which the adjournment is taken unless the adjournment is for more than 30 days or a new record date is fixed for the adjourned meeting after the adjournment, in which case notice of the adjourned meeting in accordance with Section 1.04 of these By-laws shall be given to each stockholder of record entitled to vote at the meeting. At the adjourned meeting, the Corporation may transact any business that might have been transacted at the original meeting.

Section 1.10. Organization; Procedure; Inspection of Elections .

(a) At every meeting of stockholders the presiding person shall be the Chairman of the Board or, in the event of his or her absence or disability, the Chief Executive Officer and President or, in the event of his or her absence or disability, a presiding person chosen by resolution of the Board. The Secretary or, in the event of his or her absence or disability, the Assistant Secretary, if any, or, if there be no Assistant Secretary, in the absence of the Secretary, an appointee of the presiding person, shall act as secretary of the meeting. The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the presiding person. The Board may make such rules or regulations for the conduct of meetings of stockholders as it shall deem necessary, appropriate or convenient. Except to the extent inconsistent with such rules and regulations as adopted by the Board, the presiding person shall have the right and authority to convene and (for any or no reason) to recess and/or adjourn the meeting. Subject to any such rules and regulations of the Board, the presiding person of any meeting shall have the right and authority to prescribe rules, regulations and procedures for such meeting and to take all such actions as in the judgment of the presiding person are appropriate for the proper conduct of such meeting. Such rules, regulations or procedures, whether adopted by the Board or prescribed by the presiding person of the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to stockholders of record of the Corporation, their duly authorized and constituted proxies or such other persons as the presiding person of the meeting shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. The presiding person at any meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall, if the facts warrant, determine and declare to the meeting that a matter or business was not properly brought before the meeting and if such presiding person should so determine, such presiding person shall so declare to the meeting and any such matter of business not properly brought before the meeting shall not be transacted or considered. Unless and to the extent determined by the Board or the person presiding over the meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

 

5


(b) Preceding any meeting of the stockholders, the Board may, and when required by law shall, appoint one or more persons to act as inspectors of elections, and may designate one or more alternate inspectors. If no inspector or alternate so appointed by the Board is able to act, or if no inspector or alternate has been appointed and the appointment of an inspector is required by law, the person presiding at the meeting shall appoint one or more inspectors to act at the meeting. No director or nominee for the office of director shall be appointed as an inspector of elections. Each inspector, before entering upon the discharge of the duties of an inspector, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability. The inspector or inspectors so appointed or designated shall (i) ascertain the number of shares of capital stock of the Corporation outstanding and the voting power of each such share, (ii) determine the shares of capital stock of the Corporation represented at the meeting and the validity of proxies and ballots, (iii) count all votes and ballots, (iv) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors, and (v) certify their determination of the number of shares of capital stock of the Corporation represented at the meeting and such inspectors’ count of all votes and ballots. The inspectors shall discharge their duties in accordance with the requirements of applicable law.

Section 1.11. Consent of Stockholders in Lieu of Meeting . Stockholders may not take any action by written consent in lieu of action at an annual or special meeting of stockholders.

Section 1.12. Notice of Stockholder Proposals and Nominations .

(a) Annual Meetings of Stockholders .

(i) Nominations of persons for election to the Board and the proposal of business to be considered by the stockholders may be made at an annual meeting of stockholders only ( A ) pursuant to the Corporation’s notice of the meeting (or any supplement thereto) delivered pursuant to Section 1.04 of these By-laws, ( B ) by or at the direction of the Board or a committee of the Board appointed by the Board for such purpose or ( C ) by any stockholder of the Corporation who is entitled to vote at the meeting, who complies with the notice procedures set forth in clauses (ii) and (iii) of this Section 1.12(a) and who is a stockholder of record at the time such notice is delivered to the Secretary and at the date of the meeting.

(ii) For nominations or other business to be properly brought before an annual meeting by a stockholder pursuant to subclause (C) of Section 1.12(a)(i) of these By-laws, the stockholder must have given timely notice thereof in writing to the Secretary and, in the case of business other than nominations for persons for election to the Board, such other business must constitute a proper matter for stockholder action. To be timely, a stockholder’s notice shall be delivered to the Secretary at the principal executive offices of the Corporation not less than ninety (90) days nor more than one hundred and twenty (120) days prior to the first anniversary of the preceding year’s annual meeting (which date shall, for purposes of the Corporation’s first annual meeting of stockholders after its shares of common stock are first publicly traded, be deemed to have occurred on May 26, 2016); provided , however , that in the event that the date of the annual meeting is advanced by more than thirty (30) days or delayed by more than seventy (70) days from such anniversary date of the preceding year’s annual meeting, notice by the stockholder to be timely must be so delivered not earlier than one hundred and twenty (120) days

 

6


prior to such annual meeting and not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or the close of business on the tenth (10th) day following the day on which public announcement of the date of such meeting is first made. Such stockholder’s notice shall set forth ( A ) as to each person whom the stockholder proposes to nominate for election or re-election as a director, all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors in an election contest, or is otherwise required, in each case pursuant to and in accordance with Section 14(a) of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”) and the rules and regulations promulgated thereunder, including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected; ( B ) as to any other business that the stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and, in the event that such business includes a proposal to amend these By-laws, the text of the proposed amendment), the reasons for conducting such business at the meeting and any material interest in such business of such stockholder and of the beneficial owner, if any, on whose behalf the proposal is made; and ( C ) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made ( 1 ) the name and address of such stockholder, as they appear on the Corporation’s books, and of such beneficial owner; ( 2 ) the class or series and number of shares of capital stock of the Corporation which are owned, directly or indirectly, beneficially and of record by such stockholder and such beneficial owner; ( 3 ) a representation that the stockholder is a holder of record of the stock of the Corporation at the time of giving the notice, will be entitled to vote at such meeting and will appear in person or by proxy at the meeting to propose such business or nomination; ( 4 ) a representation whether the stockholder or the beneficial owner, if any, will be or is part of a group which will ( x ) deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation’s outstanding capital stock required to approve or adopt the proposal or elect the nominee and/or ( y ) otherwise solicit proxies from stockholders in support of such proposal or nomination; and ( 5 ) a certification regarding whether such stockholder and beneficial owner, if any, have complied with all applicable federal, state and other legal requirements in connection with the stockholder’s and/or beneficial owner’s acquisition of shares of capital stock or other securities of the Corporation and/or the stockholder’s and/or beneficial owner’s acts or omissions as a stockholder of the Corporation. Notice of a stockholder nomination or proposal shall also set forth, as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made ( A ) a description of any agreement, arrangement or understanding with respect to the nomination or proposal and/or the voting of shares of any class or series of stock of the Corporation between or among the stockholder giving notice, beneficial owner, if any, on whose behalf the nomination or proposal is made, any of their respective affiliates or associates and/or other person or persons (including their names) acting in concert with any of the foregoing (collectively, the “ proponent persons ”); ( B ) a description of any agreement, arrangement or understanding (including, without limitation, regardless of the form of settlement, any derivative, long or short positions, profit interests, forwards, futures, swaps, options, warrants, convertible securities, stock appreciation or similar rights, hedging transactions and borrowed or loaned shares) to which any proponent person is a party, the effect or intent of which is to transfer to or from any proponent person, in whole or in part, any of the economic consequences of ownership of any security of the Corporation, to increase or decrease

 

7


the voting power of any proponent person with respect to shares of any class or series of stock of the Corporation and/or to provide any proponent person, directly or indirectly, with the opportunity to profit or share in any profit derived from, or to otherwise benefit economically from, any increase or decrease in the value of any security of the Corporation (a “ Derivative Instrumen t”); ( C ) to the extent not disclosed pursuant to the immediately preceding clause (B), the principal amount of any indebtedness of the Corporation or any of its subsidiaries beneficially owned by such stockholder or by beneficial owner, if any, together with the title of the instrument under which such indebtedness was issued and a description of any Derivative Instrument entered into by or on behalf of such stockholder or such beneficial owner relating to the value or payment of any indebtedness of the Corporation or any such subsidiary; and ( D ) any other information relating to such stockholder and beneficial owner, if any, required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for, as applicable, the proposal and/or for the election of directors in an election contest pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder. The foregoing notice requirements shall be deemed satisfied by a stockholder if the stockholder has notified the Corporation of his or her intention to present a proposal at an annual meeting in compliance with Rule 14a-8 (or any successor thereof) promulgated under the Exchange Act, and such stockholder’s proposal has been included in a proxy statement that has been prepared by the Corporation to solicit proxies for such annual meeting. A stockholder providing notice of a proposed nomination for election to the Board or other business proposed to be brought before a meeting (whether given pursuant to this paragraph (a)(ii) or paragraph (b) of this Section 1.12 of these By-laws) shall update and supplement such notice from time to time to the extent necessary so that the information provided or required to be provided in such notice shall be true and correct ( x ) as of the record date for determining the stockholders entitled to notice of the meeting and ( y ) as of the date that is fifteen (15) days prior to the meeting or any adjournment or postponement thereof, provided that if the record date for determining the stockholders entitled to vote at the meeting is less than fifteen (15) days prior to the meeting or any adjournment or postponement thereof, the information shall be supplemented and updated as of such later date. Any such update and supplement shall be delivered in writing to the Secretary at the principal executive offices of the Corporation not later than five (5) days after the record date for determining the stockholders entitled to notice of the meeting (in the case of any update and supplement required to be made as of the record date for determining the stockholders entitled to notice of the meeting), not later than ten (10) days prior to the date for the meeting or any adjournment or postponement thereof (in the case of any update or supplement required to be made as of fifteen (15) days prior to the meeting or adjournment or postponement thereof) and not later than five (5) days after the record date for determining the stockholders entitled to vote at the meeting, but no later than the date prior to the meeting or any adjournment or postponement thereof (in the case of any update and supplement required to be made as of a date less than fifteen (15) days prior the date of the meeting or any adjournment or postponement thereof). The Corporation may require any proposed nominee to furnish such other information as it may reasonably require to determine the eligibility of such proposed nominee to serve as a director of the Corporation and to determine the independence of such director under the Exchange Act and rules and regulations thereunder and applicable stock exchange rules. In addition, a stockholder seeking to bring an item of business before the annual meeting shall promptly provide any other information reasonably requested by the Corporation.

 

8


(iii) Notwithstanding anything in Section 1.12(a)(ii) of these By-laws to the contrary, in the event that the number of directors to be elected to the Board at an annual meeting is increased and there is no public announcement naming all of the nominees for director or specifying the size of the increased Board made by the Corporation at least one hundred (100) calendar days prior to the first anniversary of the preceding year’s annual meeting (which date shall, for purposes of the Corporation’s first annual meeting of stockholders after its shares of common stock are first publicly traded, be deemed to have occurred on May 26, 2016), then a stockholder’s notice under this Section 1.12(a) shall also be considered timely, but only with respect to nominees for any new positions created by such increase, if it is received by the Secretary at the principal executive offices of the Corporation not later than the close of business on the tenth (10th) day following the day on which such public announcement is first made by the Corporation.

(b) Special Meetings of Stockholders . Only such business as shall have been brought before the special meeting of the stockholders pursuant to the Corporation’s notice of meeting shall be conducted at such meeting. Nominations of persons for election to the Board may be made at a special meeting of stockholders at which directors are to be elected pursuant to the Corporation’s notice of meeting ( 1 ) by or at the direction of the Board or a Committee appointed by the Board for such purpose or ( 2 ) provided that the Board has determined that directors shall be elected at such meeting, by any stockholder of the Corporation who is entitled to vote at the meeting, who complies with the notice procedures set forth in this Section 1.12(b) and who is a stockholder of record at the time such notice is delivered to the Secretary and at the date of the meeting. In the event the Corporation calls a special meeting of stockholders for the purpose of electing one or more directors of the Corporation, any stockholder entitled to vote at such meeting may nominate a person or persons, as the case may be, for election to such position(s) as specified by the Corporation, if the stockholder’s notice as required by Section 1.12(a)(ii) of these By-laws shall be delivered to the Secretary at the principal executive offices of the Corporation not earlier than the one hundred and twentieth (120th) day prior to such special meeting and not later than the close of business on the later of the ninetieth (90th) day prior to such special meeting or the tenth (10th) day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board to be elected at such meeting. In no event shall the public announcement of an adjournment or postponement of a special meeting commence a new time period (or extend any time period) for the giving of a stockholder’s notice as described above.

(c) General.

(i) Only such persons who are nominated in accordance with the procedures set forth in this Section 1.12 shall be eligible to serve as directors and only such business shall be conducted at an annual or special meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Section. Except as otherwise provided by applicable law, the Certificate of Incorporation or these By-laws, the presiding person of a meeting of stockholders shall have the power and duty ( x ) to determine whether a nomination or any business proposed to be brought before the meeting was made in accordance with the procedures set forth in this Section 1.12 (including whether the stockholder or beneficial owner, if any, on whose behalf the nomination or proposal is made, solicited (or is part of a group which solicited) or did not so solicit, as the case may be, proxies in support of such stockholder’s

 

9


nominee or proposal in compliance with such stockholder’s representation as required by clause (a)(ii)(C)(4) of this Section 1.12), and ( y ) if any proposed nomination or business is not in compliance with this Section 1.12, to declare that such defective nomination shall be disregarded or that such proposed business shall not be transacted.

(ii) If the stockholder (or a qualified representative of the stockholder) making a nomination or proposal under this Section 1.12 does not appear at a meeting of stockholders to present such nomination or proposal, the nomination shall be disregarded and/or the proposed business shall not be transacted, as the case may be, notwithstanding that proxies in favor thereof may have been received by the Corporation. For purposes of this Section 1.12, to be considered a qualified representative of the stockholder, a person must be a duly authorized officer, manager or partner of such stockholder or authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of stockholders.

(A) Whenever used in these By-laws, “ public announcement ” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act and the rules and regulations promulgated thereunder.

(B) Notwithstanding the foregoing provisions of this Section 1.12, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 1.12. Nothing in this Section 1.12 shall be deemed to affect any rights of ( x ) stockholders to request inclusion of proposals in the Corporation’s proxy statement pursuant to Rule 14a-8 under the Exchange Act or ( y ) the holders of any series of preferred stock to elect directors pursuant to any applicable provisions of the Certificate of Incorporation or of the relevant preferred stock certificate of designation.

(C) The announcement of an adjournment or postponement of an annual or special meeting does not commence a new time period (and does not extend any time period) for the giving of notice of a stockholder nomination or a stockholder proposal as described above.

ARTICLE II

BOARD OF DIRECTORS

Section 2.01. General Powers . Except as may otherwise be provided by law or the Certificate of Incorporation, the business and affairs of the Corporation shall be managed by or under the direction of the Board. The directors shall act only as a Board, and the individual directors shall have no power as such.

 

10


Section 2.02. Number and Term of Office . Except as otherwise provided in and subject to Article XI of these By-Laws, the number of directors constituting the entire Board and the term of office for each director shall be as provided for in the Certificate of Incorporation.

Section 2.03. Classification; Election of Directors . The Board shall be classified into three classes as provided by the Certificate of Incorporation. Except as otherwise provided in Section 2.14 of these By-laws, at each annual meeting of the stockholders the successors of the directors whose term expires at that meeting shall be elected.

Section 2.04. Regular Meetings . Regular meetings of the Board shall be held on such dates, and at such times and places as are determined from time to time by resolution of the Board.

Section 2.05. Special Meetings . Special meetings of the Board shall be held whenever called by the Chairman of the Board or the Chief Executive Officer and President or, in the event of the absence or disability of the Chairman of the Board and the Chief Executive Officer and President, by the Secretary, or by one-third of the directors then in office, at such place, date and time as may be specified in the respective notices or waivers of notice of such meetings. Any business may be conducted at a special meeting.

Section 2.06. Notice of Meetings; Waiver of Notice .

(a) Notices of special meetings shall be given to each director, and notice of each resolution or other action affecting the date, time or place of one or more regular meetings shall be given to each director not present at the meeting adopting such resolution or other action, subject to Section 2.09 of these By-laws. Notices shall be given confirmed by facsimile or email dispatched promptly thereafter, or by facsimile or email confirmed by a writing delivered by a recognized overnight courier service, directed to each director at the address from time to time designated by such director to the Secretary. Each such notice and confirmation must be given (received in the case of personal service or delivery of written confirmation) at least 24 hours prior to the time of a special meeting, and at least five days prior to the initial regular meeting affected by such resolution or other action, as the case may be.

(b) A written waiver of notice of meeting signed by a director or a waiver by electronic transmission by a director, whether given before or after the meeting time stated in such notice, is deemed equivalent to notice. Attendance of a director at a meeting is a waiver of notice of such meeting, except when the director attends a meeting for the express purpose of objecting at the beginning of the meeting to the transaction of any business at the meeting on the ground that the meeting is not lawfully called or convened.

Section 2.07. Quorum; Voting . At all meetings of the Board, the presence of a majority of the total authorized number of directors shall constitute a quorum for the transaction of business. Except as otherwise required by law, the Certificate of Incorporation or these By-laws, including Article XI, the affirmative vote of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board.

Section 2.08. Action by Telephonic Communications . Members of the Board may participate in a meeting of the Board by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this provision shall constitute presence in person at such meeting.

 

11


Section 2.09. Adjournment . A majority of the directors present may adjourn any meeting of the Board to another date, time or place, whether or not a quorum is present. No notice need be given of any adjourned meeting unless (a) the date, time and place of the adjourned meeting are not announced at the time of adjournment, in which case notice conforming to the requirements of Section 2.06 of these By-laws applicable to special meetings shall be given to each director, or (b) the meeting is adjourned for more than 24 hours, in which case the notice referred to in clause (a) shall be given to those directors not present at the announcement of the date, time and place of the adjourned meeting.

Section 2.10. Action Without a Meeting . Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting if all members of the Board consent thereto in writing or by electronic transmission, and such writing or writings or electronic transmissions are filed with the minutes of proceedings of the Board. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

Section 2.11. Regulations . To the extent consistent with applicable law, the Certificate of Incorporation and these By-laws, including Article XI, the Board may adopt such rules and regulations for the conduct of meetings of the Board and for the management of the affairs and business of the Corporation as the Board may deem appropriate. Except as otherwise provided in and subject to Article XI of these By-Laws, the Board may elect from among its members a chairperson and one or more vice-chairpersons to preside over meetings and to perform such other duties as may be designated by the Board.

Section 2.12. Resignations of Directors . Any director may resign at any time by submitting an electronic transmission or by delivering a written notice of resignation, signed by such director, to the Chairman of the Board or the Secretary. Subject to Section 1.08(b) of these By-laws, such resignation shall take effect upon delivery unless the resignation specifies a later effective date or an effective date determined upon the happening of a specified event.

Section 2.13. Removal of Directors . Directors may only be removed as set forth in the Certificate of Incorporation.

Section 2.14. Vacancies and Newly Created Directorships . Any vacancies or newly created directorships shall be filled as set forth in the Certificate of Incorporation.

Section 2.15. Compensation . The directors shall be entitled to compensation for their services as fixed by the Board. The Board may by resolution determine the expenses in the performance of such services for which a director is entitled to reimbursement.

Section 2.16. Reliance on Accounts and Reports, etc . A director, as such or as a member of any committee designated by the Board, shall in the performance of his or her duties be fully protected in relying in good faith upon the records of the Corporation and upon information, opinions, reports or statements presented to the Corporation by any of the

 

12


Corporation’s officers or employees, or committees designated by the Board, or by any other person as to the matters the member reasonably believes are within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

ARTICLE III

COMMITTEES

Section 3.01. How Constituted . Except as otherwise provided in and subject to Article XI of these By-Laws, the Board shall have an Audit Committee, Compensation Committee, Compliance Committee, Nominating and Corporate Governance Committee and such other committees as the Board may determine (each, a “ Committee ” and collectively, the “ Committees ”). Except as otherwise provided in and subject to Article XI of these By-Laws, each Committee shall consist of such number of directors as from time to time may be fixed by the Board and shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Corporation to the extent delegated to such Committee by the Board but no Committee shall have any power or authority as to ( a ) approving or adopting, or recommending to the stockholders, any action or matter (other than the election or removal of directors) expressly required by the DGCL to be submitted to stockholders for approval, ( b ) adopting, amending or repealing any of these By-laws or ( c ) as may otherwise be excluded by law or by the Certificate of Incorporation, and no Committee may delegate any of its power or authority to a subcommittee unless so authorized by the Board. Except as otherwise provided in and subject to Article XI of these By-Laws, any Committee may be abolished or re-designated from time to time by the Board.

Section 3.02. Members and Alternate Members . Except as otherwise provided in and subject to Article XI of these By-Laws, the members of each Committee and any alternate members shall be selected by the Board. An alternate member may replace any absent or disqualified member at any meeting of the Committee. An alternate member shall be given all notices of Committee meetings, may attend any meeting of the Committee, but may count towards a quorum and vote only if a member for whom such person is an alternate is absent or disqualified. In the absence or disqualification of a member of the committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not he, she or they constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in place of any such absent or disqualified member. Each member or alternate member of any Committee (whether designated at an annual meeting of the Board or to fill a vacancy on such Committee or otherwise) shall hold office as a Committee member or alternate member, as applicable, until his or her successor shall have been designated or until he or she shall cease to be a director, or until his or her earlier death, or resignation or removal from the Committee.

Section 3.03. Committee Procedures . A quorum for each Committee shall be a majority of its members, unless the Committee has only one or two members, in which case a quorum shall be one member, or unless a greater quorum requirement is established by the Board. The vote of a majority of the Committee members present at a meeting at which a quorum is present shall be the act of the Committee. Each Committee shall keep regular minutes of its meetings and report to the Board when required. The Board may adopt other rules and regulations for the

 

13


government of any Committee not inconsistent with the provisions of these By-laws, including Article XI, and each Committee may adopt its own rules and regulations of government, to the extent not inconsistent with these By-laws, including Article XI, or rules and regulations adopted by the Board.

Section 3.04. Meetings and Actions of Committees . Meetings and actions of each Committee shall be governed by, and held and taken in accordance with, the provisions of the following sections of these By-laws, with such By-laws being deemed to refer to the Committee and its members in lieu of the Board and its members:

(a) Section 2.04 (to the extent relating to place and time of regular meetings);

(b) Section 2.05 (relating to special meetings);

(c) Section 2.06 (relating to notice and waiver of notice);

(d) Sections 2.08 and 2.10 (relating to telephonic communication and action without a meeting); and

(e) Section 2.09 (relating to adjournment and notice of adjournment).

Special meetings of Committees may also be called by resolution of the Board.

Section 3.05. Resignations and Removals . Any member (and any alternate member) of any Committee may resign from such position at any time by delivering a notice of resignation in writing or by electronic transmission, signed by such member, to the Chairman of the Board or the Secretary. Unless otherwise specified therein, such resignation shall take effect upon delivery. Except as otherwise provided in and subject to Article XI of these By-Laws, any member (and any alternate member) of any Committee may be removed from such position by the Board at any time, either for or without cause.

Section 3.06. Vacancies . Except as otherwise provided in and subject to Article XI of these By-Laws, if a vacancy occurs in any Committee for any reason, the remaining members (and any alternate members) may continue to act if a quorum is present. A Committee vacancy may be filled only by the Board.

ARTICLE IV

OFFICERS

Section 4.01. Officers . Except as otherwise provided in and subject to Article XI of these By-Laws, the Board shall elect a Chief Executive Officer and President (which offices shall be held by the same person) and a Secretary as officers of the Corporation. Except as otherwise provided in and subject to Article XI of these By-Laws, the Board may also elect a Treasurer, one or more Vice Presidents, Assistant Secretaries and Assistant Treasurers, and such other officers and agents as the Board may determine (including a Chief Financial Officer). In addition, the Board from time to time may delegate to any officer the power to appoint subordinate officers or agents and to prescribe their respective rights, terms of office, authorities

 

14


and duties. Any action by an appointing officer may be superseded by action by the Board. Any number of offices may be held by the same person, except that one person may not hold both the offices of Chief Executive Officer and President, on the one hand, and the office of Secretary, on the other hand. No officer need be a director of the Corporation.

Section 4.02. Election . Except as otherwise provided in and subject to Article XI of these By-Laws, the officers of the Corporation elected by the Board shall serve at the pleasure of the Board. Officers and agents appointed pursuant to delegated authority as provided in Section 4.01 (or, in the case of agents, as provided in Section 4.07) shall hold their offices for such terms as may be determined from time to time by the appointing officer. Each officer shall hold office until his or her successor has been elected or appointed and qualified, or until his or her earlier death, resignation or removal.

Section 4.03. Compensation . The salaries and other compensation of all officers and agents of the Corporation shall be fixed by the Board or in the manner established by the Board.

Section 4.04. Removal and Resignation; Vacancies . Except as otherwise provided in and subject to Article XI of these By-Laws, any officer may be removed for or without cause at any time by the Board. Any officer granted the power to appoint subordinate officers and agents as provided in Section 4.01 may remove any subordinate officer or agent appointed by such officer, for or without cause. Any officer or agent may resign at any time by delivering notice of resignation, either in writing signed by such officer or by electronic transmission, to the Board or the Chief Executive Officer and President. Unless otherwise specified therein, such resignation shall take effect upon delivery. Any vacancy occurring in any office of the Corporation by death, resignation, removal or otherwise, may be filled by the Board or by the officer, if any, who appointed the person formerly holding such office.

Section 4.05. Authority and Duties of Officers . An officer of the Corporation shall have such authority and shall exercise such powers and perform such duties ( a ) as may be required by law, ( b ) to the extent not inconsistent with law or Article XI of these By-Laws, as are specified in these By-laws, ( c ) to the extent not inconsistent with law or these By-laws, including Article XI, as may be specified by resolution of the Board and ( d ) to the extent not inconsistent with any of the foregoing, as may be specified by the appointing officer with respect to a subordinate officer appointed pursuant to delegated authority under Section 4.01.

Section 4.06. Chief Executive Officer and President . The Chief Executive Officer and President shall be the chief executive officer of the Corporation, shall have general control and supervision of the policies and operations of the Corporation and shall see that all orders and resolutions of the Board are carried into effect. Unless otherwise provided by the Board, he or she shall manage and administer the Corporation’s business and affairs and shall also perform all duties and exercise all powers usually pertaining to the office of a chief executive officer of a corporation. He or she shall have the authority to sign, in the name and on behalf of the Corporation, checks, orders, contracts, leases, notes, drafts and all other documents and instruments in connection with the business of the Corporation. He or she shall have the authority to cause the employment or appointment of such employees or agents of the Corporation as the conduct of the business of the Corporation may require, to fix their compensation, and to remove or suspend any employee or any agent employed or appointed by

 

15


any officer or to suspend any agent appointed by the Board. The Chief Executive Officer and President shall have the duties and powers of the Treasurer if no Treasurer is elected and shall have such other duties and powers as the Board may from time to time prescribe.

Section 4.07. Vice Presidents . If one or more Vice Presidents have been elected, each Vice President shall perform such duties and exercise such powers as may be assigned to him or her from time to time by the Board or the Chief Executive Officer and President. In the event of absence or disability of the Chief Executive Officer and President, the duties of the Chief Executive Officer and President shall be performed, and his or her powers may be exercised, by such Vice President as shall be designated by the Board or, failing such designation, by the Vice President in order of seniority of election to that office.

Section 4.08. Secretary . Unless otherwise determined by the Board, the Secretary shall have the following powers and duties:

(a) The Secretary shall keep or cause to be kept a record of all the proceedings of the meetings of the stockholders, the Board and any Committees thereof in books provided for that purpose.

(b) The Secretary shall cause all notices to be duly given in accordance with the provisions of these By-laws and as required by law.

(c) Whenever any Committee shall be appointed pursuant to a resolution of the Board, the Secretary shall furnish a copy of such resolution to the members of such Committee.

(d) The Secretary shall be the custodian of the records and of the seal of the Corporation and cause such seal (or a facsimile thereof) to be affixed to all certificates representing shares of the Corporation prior to the issuance thereof and to all documents and instruments that the Board or any officer of the Corporation has determined should be executed under seal, may sign (together with any other authorized officer) any such document or instrument, and when the seal is so affixed he or she may attest the same.

(e) The Secretary shall properly maintain and file all books, reports, statements, certificates and all other documents and records required by law, the Certificate of Incorporation or these By-laws.

(f) The Secretary shall have charge of the stock books and ledgers of the Corporation and shall cause the stock and transfer books to be kept in such manner as to show at any time the number of shares of stock of the Corporation of each class or series issued and outstanding, the names (alphabetically arranged) and the addresses of the holders of record of such shares, the number of shares held by each holder and the date as of which each such holder became a holder of record.

(g) The Secretary shall sign (unless the Treasurer, an Assistant Treasurer or an Assistant Secretary shall have signed) certificates representing shares of the Corporation the issuance of which shall have been authorized by the Board.

 

16


(h) The Secretary shall perform, in general, all duties incident to the office of secretary and such other duties as may be specified in these By-laws or as may be assigned to the Secretary from time to time by the Board or the Chief Executive Officer and President.

Section 4.09. Treasurer . Unless otherwise determined by the Board, and except as otherwise provided in and subject to Article XI of these By-Laws, the Treasurer, if there be one, shall be the chief financial officer of the Corporation and shall have the following powers and duties:

(a) The Treasurer shall have charge and supervision over and be responsible for the moneys, securities, receipts and disbursements of the Corporation, and shall keep or cause to be kept full and accurate records thereof.

(b) The Treasurer shall cause the moneys and other valuable effects of the Corporation to be deposited in the name and to the credit of the Corporation in such banks or trust companies or with such bankers or other depositaries as shall be determined by the Board or the Chief Executive Officer and President, or by such other officers of the Corporation as may be authorized by the Board or the Chief Executive Officer and President to make such determinations.

(c) The Treasurer shall cause the moneys of the Corporation to be disbursed by checks or drafts (signed by such officer or officers or such agent or agents of the Corporation, and in such manner, as the Board or the Chief Executive Officer and President may determine from time to time) upon the authorized depositaries of the Corporation and cause to be taken and preserved proper vouchers for all moneys disbursed.

(d) The Treasurer shall render to the Board or the Chief Executive Officer and President, whenever requested, a statement of the financial condition of the Corporation and of the transactions of the Corporation, and render a full financial report at the annual meeting of the stockholders, if called upon to do so.

(e) The Treasurer shall be empowered from time to time to require from all officers or agents of the Corporation reports or statements giving such information as he or she may desire with respect to any and all financial transactions of the Corporation.

(f) The Treasurer may sign (unless an Assistant Treasurer or the Secretary or an Assistant Secretary shall have signed) certificates representing shares of stock of the Corporation the issuance of which shall have been authorized by the Board.

(g) The Treasurer shall perform, in general, all duties incident to the office of treasurer and such other duties as may be specified in these By-laws or as may be assigned to the Treasurer from time to time by the Board or the Chief Executive Officer and President.

 

17


ARTICLE V

CAPITAL STOCK

Section 5.01. Certificates of Stock; Uncertificated Shares . The shares of the Corporation shall be represented by certificates, except to the extent that the Board has provided by resolution or resolutions that some or all of any or all classes or series of the stock of the Corporation shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the Corporation. Every holder of stock in the Corporation represented by certificates shall be entitled to have, and the Board may in its sole discretion permit a holder of uncertificated shares to receive upon request, a certificate signed by the appropriate officers of the Corporation, certifying the number and class of shares owned by such holder. Such certificate shall be in such form as the Board may determine, to the extent consistent with applicable law, the Certificate of Incorporation and these By-laws.

Section 5.02. Facsimile Signatures . Any or all signatures on the certificates referred to in Section 5.01 of these By-laws may be in facsimile form. If any officer, transfer agent or registrar who has signed, or whose facsimile signature has been placed upon, a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he or she were such officer, transfer agent or registrar at the date of issue.

Section 5.03. Lost, Stolen or Destroyed Certificates . A new certificate may be issued in place of any certificate theretofore issued by the Corporation alleged to have been lost, stolen or destroyed only upon delivery to the Corporation of an affidavit of the owner or owners (or their legal representatives) of such certificate, setting forth such allegation, and a bond or other undertaking as may be satisfactory to a financial officer of the Corporation designated by the Board to indemnify the Corporation against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of any such new certificate.

Section 5.04. Transfer of Stock .

(a) Transfer of shares shall be made on the books of the Corporation upon surrender to the Corporation of a certificate for shares, duly endorsed or accompanied by appropriate evidence of succession, assignment or authority to transfer, and otherwise in compliance with applicable law. Shares that are not represented by a certificate shall be transferred in accordance with applicable law. Within a reasonable time after the transfer of uncertificated stock, the Corporation shall send to the registered owner thereof a written notice containing the information required to be set forth or stated on certificates pursuant to Sections 151, 156, 202(a) and 218(a) of the DGCL. Subject to applicable law, the provisions of the Certificate of Incorporation and these By-laws, the Board may prescribe such additional rules and regulations as it may deem appropriate relating to the issue, transfer and registration of shares of the Corporation.

(b) The Corporation may enter into agreements with stockholders to restrict the transfer of stock of the Corporation in any manner not prohibited by the DGCL.

 

18


Section 5.05. Registered Stockholders . Prior to due surrender of a certificate for registration of transfer, the Corporation may treat the registered owner as the person exclusively entitled to receive dividends and other distributions, to vote, to receive notice and otherwise to exercise all the rights and powers of the owner of the shares represented by such certificate, and the Corporation shall not be bound to recognize any equitable or legal claim to or interest in such shares on the part of any other person, whether or not the Corporation shall have notice of such claim or interests. If a transfer of shares is made for collateral security, and not absolutely, this fact shall be so expressed in the entry of the transfer if, when the certificates are presented to the Corporation for transfer or uncertificated shares are requested to be transferred, both the transferor and transferee request the Corporation to do so.

Section 5.06. Transfer Agent and Registrar . The Board may appoint one or more transfer agents and one or more registrars, and may require all certificates representing shares to bear the signature of any such transfer agents or registrars.

ARTICLE VI

INDEMNIFICATION

Section 6.01. Indemnification .

(a) In General . The Corporation shall indemnify, to the full extent permitted by the DGCL and other applicable law, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (each, a “ proceeding ”) by reason of the fact that ( x ) such person is or was serving or has agreed to serve as a director or officer of the Corporation, or ( y ) such person, while serving as a director or officer of the Corporation, is or was serving or has agreed to serve at the request of the Corporation as a director, officer, employee, manager or agent of another corporation, partnership, joint venture, trust or other enterprise or ( z ) such person is or was serving or has agreed to serve at the request of the Corporation as a director, officer or manager of another corporation, partnership, joint venture, trust or other enterprise, or by reason of any action alleged to have been taken or omitted by such person in such capacity, and who satisfies the applicable standard of conduct set forth in the DGCL or other applicable law:

(i) in a proceeding other than a proceeding by or in the right of the Corporation, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person or on such person’s behalf in connection with such proceeding and any appeal therefrom, or

(ii) in a proceeding by or in the right of the Corporation to procure a judgment in its favor, against expenses (including attorneys’ fees) actually and reasonably incurred by such person or on such person’s behalf in connection with the defense or settlement of such proceeding and any appeal therefrom.

(b) Indemnification in Respect of Successful Defense . To the extent that a present or former director or officer of the Corporation has been successful on the merits or otherwise in defense of any proceeding referred to in Section 6.01(a) or in defense of any claim, issue or matter therein, such person shall be indemnified by the Corporation against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection therewith.

 

19


(c) Indemnification in Respect of Proceedings Instituted by Indemnitee . Notwithstanding anything herein to the contrary, Section 6.01(a) does not require the Corporation to indemnify a present or former director or officer of the Corporation in respect of a proceeding (or part thereof) instituted by such person on his or her own behalf, unless such proceeding (or part thereof) has been authorized by the Board or the indemnification requested is pursuant to the last sentence of Section 6.03 of these By-laws.

Section 6.02. Advance of Expenses . The Corporation shall to the fullest extent permitted by law advance all expenses (including reasonable attorneys’ fees) incurred by a present or former director or officer in defending any proceeding prior to the final disposition of such proceeding upon written request of such person and delivery of an undertaking by such person to repay such amount if it shall ultimately be determined that such person is not entitled to be indemnified by the Corporation under this Article VI or otherwise. The Corporation may authorize any counsel for the Corporation to represent (subject to applicable conflict of interest considerations) such present or former director or officer in any proceeding, whether or not the Corporation is a party to such proceeding.

Section 6.03. Procedure for Indemnification . Any indemnification under Section 6.01 of these By-laws or any advance of expenses under Section 6.02 of these By-laws shall be made only against a written request therefor (together with supporting documentation) submitted by or on behalf of the person seeking indemnification or advance. Indemnification may be sought by a person under Section 6.01 of these By-laws in respect of a proceeding only to the extent that both the expenses and liabilities for which indemnification is sought and all portions of the proceeding relevant to the determination of whether the person has satisfied any appropriate standard of conduct have become final. A person seeking indemnification or advance of expenses may seek to enforce such person’s rights to indemnification or advance of expenses (as the case may be) in the Delaware Court of Chancery to the extent all or any portion of a requested indemnification has not been granted within 90 days of, or to the extent all or any portion of a requested advance of expenses has not been granted within 20 days of, the submission of such request. All expenses (including reasonable attorneys’ fees) incurred by such person in connection with successfully establishing such person’s right to indemnification or advancement of expenses under this Article, in whole or in part, shall also be indemnified by the Corporation.

Section 6.04. Burden of Proof .

(a) In any proceeding brought to enforce the right of a person to receive indemnification to which such person is entitled under Section 6.01 of these By-laws, the Corporation has the burden of demonstrating that the standard of conduct applicable under the DGCL or other applicable law was not met. A prior determination by the Corporation (including its Board or any Committee thereof, its independent legal counsel, or its stockholders) that the claimant has not met such applicable standard of conduct does not itself constitute evidence that the claimant has not met the applicable standard of conduct.

 

20


(b) In any proceeding brought to enforce a claim for advances to which a person is entitled under Section 6.02 of these By-laws, the person seeking an advance need only show that he or she has satisfied the requirements expressly set forth in Section 6.02 of these By-laws.

Section 6.05. Contract Right; Non-Exclusivity; Survival .

(a) The rights to indemnification and advancement of expenses provided by this Article VI shall be deemed to be separate contract rights between the Corporation and each director and officer who serves in any such capacity at any time while these provisions as well as the relevant provisions of the DGCL are in effect, and no repeal or modification of any of these provisions or any relevant provisions of the DGCL shall adversely affect any right or obligation of such director or officer existing at the time of such repeal or modification with respect to any state of facts then or previously existing or any proceeding previously or thereafter brought or threatened based in whole or in part upon any such state of facts. Such “contract rights” may not be modified retroactively as to any present or former director or officer without the consent of such director or officer.

(b) The rights to indemnification and advancement of expenses provided by this Article VI shall not be deemed exclusive of any other indemnification or advancement of expenses to which a present or former director or officer of the Corporation seeking indemnification or advancement of expenses may be entitled by any agreement, vote of stockholders or disinterested directors, or otherwise.

(c) The rights to indemnification and advancement of expenses provided by this Article VI to any present or former director or officer of the Corporation shall inure to the benefit of the heirs, executors and administrators of such person.

Section 6.06. Insurance . The Corporation may purchase and maintain insurance on behalf of any person who is or was or has agreed to become a director or officer of the Corporation, or is or was serving at the request of the Corporation as a director or officer of another Corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person or on such person’s behalf in any such capacity, or arising out of such person’s status as such, whether or not the Corporation would have the power to indemnify such person against such liability under the provisions of this Article.

Section 6.07. Employees and Agents . The Board, or any officer authorized by the Board generally or in the specific case to make indemnification decisions, may cause the Corporation to indemnify any present or former employee or agent of the Corporation in such manner and for such liabilities as the Board may determine, up to the fullest extent permitted by the DGCL and other applicable law.

Section 6.08. Interpretation; Severability . Terms defined in Sections 145(h) or (i) of the DGCL have the meanings set forth in such sections when used in this Article VI. If this Article or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Corporation shall nevertheless indemnify each director or officer of the Corporation as to costs, charges and expenses (including attorneys’ fees), judgments, fines and amounts paid in

 

21


settlement with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of the Corporation, to the fullest extent permitted by any applicable portion of this Article that shall not have been invalidated and to the fullest extent permitted by applicable law.

ARTICLE VII

OFFICES

Section 7.01. Registered Office . The registered office of the Corporation in the State of Delaware shall be located at the location provided in the Certificate of Incorporation.

Section 7.02. Other Offices . The Corporation may maintain offices or places of business at such other locations within or without the State of Delaware as the Board may from time to time determine or as the business of the Corporation may require.

ARTICLE VIII

GENERAL PROVISIONS

Section 8.01. Dividends .

(a) Subject to any applicable provisions of law and the Certificate of Incorporation, dividends upon the shares of the Corporation may be declared by the Board and any such dividend may be paid in cash, property or shares of the Corporation’s stock out of its surplus, as defined in the DGCL, or in the case there shall be no such surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year.

(b) A member of the Board, or a member of any Committee designated by the Board, shall be fully protected in relying in good faith upon the records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of its officers or employees, or Committees of the Board, or by any other person as to matters the director reasonably believes are within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation, as to the value and amount of the assets, liabilities and/or net profits of the Corporation, or any other facts pertinent to the existence and amount of surplus or other funds from which dividends might properly be declared and paid.

Section 8.02. Reserves . There may be set apart out of any funds of the Corporation available for dividends such sum or sums as the Board from time to time may determine proper as a reserve or reserves for meeting contingencies, equalizing dividends, repairing or maintaining any property of the Corporation or for such other purpose or purposes as the Board may determine conducive to the interest of the Corporation, and the Board may similarly modify or abolish any such reserve.

Section 8.03. Execution of Instruments . Except as otherwise required by law or the Certificate of Incorporation, the Board or any officer of the Corporation authorized by the Board may authorize any other officer or agent of the Corporation to enter into any contract or execute

 

22


and deliver any instrument in the name and on behalf of the Corporation, and such execution or signature shall be binding upon the Corporation. Any such authorization must be in writing or by electronic transmission and may be general or limited to specific contracts or instruments.

Section 8.04. Voting as Stockholder . Unless otherwise determined by resolution of the Board, the Chief Executive Officer and President or any Vice President shall have full power and authority on behalf of the Corporation to attend any meeting of stockholders of any entity in which the Corporation may hold stock or other securities, and to act, vote (or execute proxies to vote) and exercise in person or by proxy all other rights, powers and privileges incident to the ownership of such stock or other securities at any such meeting, or through action without a meeting. The Board may by resolution from time to time confer such power and authority (in general or confined to specific instances) upon any other person or persons.

Section 8.05. Fiscal Year . Unless otherwise fixed by the Board, the fiscal year of the Corporation shall commence on the first day of January of each year and shall terminate in each case on December 31.

Section 8.06. Seal . The seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the year of its incorporation and the words “Corporate Seal” and “Delaware”. The form of such seal shall be subject to alteration by the Board. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or reproduced or may be used in any other lawful manner.

Section 8.07. Books and Records; Inspection . Except to the extent otherwise required by law, the books and records of the Corporation shall be kept at such place or places within or without the State of Delaware as may be determined from time to time by the Board.

Section 8.08. Electronic Transmission . “Electronic transmission”, as used in these By-laws, means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

ARTICLE IX

AMENDMENT OF BY-LAWS

Section 9.01. Amendment . Except as otherwise provided in and subject to Article XI of these By-Laws, and subject to the provisions of the Certificate of Incorporation, these By-laws may be amended, altered or repealed:

(a) by the affirmative vote of at least a majority of the directors then in office; or

(b) by the affirmative vote of the holders of at least a majority of the outstanding shares of common stock entitled to vote at any annual or special meeting of stockholders if, in the case of such special meeting only, notice of such amendment, alteration or repeal is contained in the notice or waiver of notice of such meeting.

 

23


Notwithstanding the foregoing, no amendment, alteration or repeal of Article VI of these By-laws shall adversely affect any right or protection existing under these By-laws immediately prior to such amendment, alteration or repeal, including any right or protection of a present or former director or officer thereunder in respect of any act or omission occurring prior to the time of such amendment.

ARTICLE X

CONSTRUCTION

Section 10.01. Construction . In the event of any conflict between the provisions of these By-laws as in effect from time to time and the provisions of the Certificate of Incorporation of the Corporation as in effect from time to time, the provisions of such Certificate of Incorporation shall be controlling.

ARTICLE XI

CERTAIN GOVERNANCE MATTERS

Section 11.01. Definitions . The following definitions shall apply to this Article XI:

(a) “ Entire Board of Directors ” shall mean a total of fourteen (14) directors, including all of the AmSurg Designees (as hereinafter defined) and all of the Holdings Designees (as hereinafter defined); provided, however, that if any vacancy has not been filled pursuant to Article XI, Section 11.02 below and the remaining directors determine, by action of a majority of the directors then in office (so long as there is a quorum of the Board) that, in the good faith exercise of their fiduciary duties, immediate action is required to avoid material harm to the Corporation, then the “Entire Board of Directors” shall mean the remaining directors.

(b) “ Merger 2 Effective Time ” has the meaning specified in the Merger Agreement.

(c) “ Merger Agreement ” shall mean the Agreement and Plan of Merger, dated as of June 15, 2016, by and among Envision Healthcare Holdings, Inc., AmSurg Corp. and New Amethyst Corp., as amended from time to time.

(d) “ Specified Period ” shall mean the period beginning at the Merger 2 Effective Time and ending on the third (3rd) anniversary of the Merger 2 Effective Time.

Section 11.02. Composition of the Board .

(a) From and after the Merger 2 Effective Time, the Board shall be comprised of fourteen (14) directors, seven (7) of whom shall be designated prior to the Closing Date (as defined in the Merger Agreement) by the AmSurg Board (as defined in the Merger Agreement) and each of whom shall be a director of the Corporation immediately prior to the Merger 2 Effective Time (each, an “ AmSurg Designee ” and collectively, the “ AmSurg Designees ”), and seven (7) of whom shall be designated by the Holdings Board (as defined in the Merger Agreement) prior to the Closing Date and each of whom shall be a director of Holdings (as defined in the Merger Agreement) immediately prior to the Merger 2 Effective Time (each, a “ Holdings Designee ” and collectively, the “ Holdings Designees ”). The AmSurg Designees and Holdings Designees shall be apportioned among the classes of the Board as nearly as evenly as possible.

 

24


(b) From the Merger 2 Effective Time until the first anniversary thereof, altering the composition of the Board set forth in Section 11.02(a) of these By-laws shall require the affirmative vote of three-fourths of the Entire Board of Directors.

Section 11.03. Chairman .

(a) The Current Holdings CEO (as defined in the Merger Agreement) shall serve as Executive Chairman of the Board for a term of one year from and after the Merger 2 Effective Time (such term, the “ Executive Chairman Term ”); provided , that if the Current Holdings CEO is not willing or able as of the Merger 2 Effective Time to serve as Executive Chairman of the Board, then the Entire Board of Directors shall determine whether the Corporation should have an Executive Chairman of the Board and, if so, shall appoint a person to serve to serve as Executive Chairman of the Board. The Executive Chairman of the Board shall be an officer of the Corporation.

(b) Upon the expiration of the Executive Chairman Term, the Board shall take all necessary action to cause the Current Holdings CEO to be appointed as non-executive Chairman of the Board for a term to end as of the end of the Specified Period; provided , that if the Current Holdings CEO is not willing or able as of the end of the Executive Chairman Term to serve as non-executive Chairman of the Board, then the Entire Board of Directors shall appoint a person to serve as non-executive Chairman of the Board. The office of Executive Chairman of the Board shall cease to exist at such time as the Current Holdings CEO ceases to serve as Executive Chairman of the Board.

(c) During the Specified Period, the affirmative vote of three-fourths of the Entire Board of Directors shall be required (A) prior to the end of the Executive Chairman Term, to remove the Current Holdings CEO as Executive Chairman of the Board, (B) prior to the end of the Executive Chairman Term, to alter the responsibilities and authorities of the Executive Chairman of the Board as set forth in the Corporate Governance Guidelines of the Corporation, as amended from time to time (the “ Corporate Governance Guidelines ”), (C) to remove the Current Holdings CEO as non-executive Chairman of the Board or (D) to determine not to re-nominate the Current Holdings CEO as a director of the Corporation.

Section 11.04. Chief Executive Officer and President .

(a) From and after the Merger 2 Effective Time, the Current AmSurg CEO (as defined in the Merger Agreement) shall serve as the Chief Executive Officer and President of the Corporation; provided , that if the Current AmSurg CEO is not willing or able as of the Merger 2 Effective Time to serve as Chief Executive Officer and President, then the Entire Board of Directors shall appoint a person to serve as the Chief Executive Officer and President. The Chief Executive Officer and President shall be a director of the Corporation.

 

25


(b) During the Specified Period, the affirmative vote of three-fourths of the Entire Board of Directors shall be required to remove the Current AmSurg CEO as Chief Executive Officer and President.

(c) During the Specified Period, in the event of any conflict between the terms of Section 4.06 of these By-laws, on the one hand, and the terms of Exhibit A to the Corporate Governance Guidelines, on the other hand, the terms of Exhibit A to the Corporate Governance Guidelines (which is hereby incorporated by reference herein) shall govern and control.

Section 11.05. Required Committees .

(a) During the Specified Period, the Board shall have the following four committees, in addition to any other committees as determined by the Board from time to time by the affirmative vote of three-fourths of the Entire Board of Directors: Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee, Compliance Committee (the “ Required Committees ”).

(b) During the Specified Period, (i) the Audit Committee shall be comprised of two (2) AmSurg Designees and two (2) Holdings Designees, with one such AmSurg Designee to act as the chairperson of the Audit Committee, (ii) the Compensation Committee shall be comprised of two (2) AmSurg Designees and two (2) Holdings Designees, with one such Holdings Designee to act as the chairperson of the Compensation Committee, (iii) the Nominating and Corporate Governance Committee shall be comprised of two (2) AmSurg Designees and two (2) Holdings Designees, with one such Holdings Designee to act as the chairperson of the Nominating and Corporate Governance Committee and (iv) the Compliance Committee shall be comprised of two (2) AmSurg Designees and two (2) Holdings Designees, with one such AmSurg Designee to act as the chairperson of the Compliance Committee.

(c) During the Specified Period, replacing the chairperson or altering the composition of any of the Required Committees set forth in Section 11.05(b) of these By-laws shall require the affirmative vote of three-fourths of the Entire Board of Directors.

Section 11.06. Amendments . During the Specified Period, the provisions of this Article XI and the Corporate Governance Guidelines of the Corporation may be modified, amended or repealed by the Board, and any By-law provision or other resolution inconsistent with this Article XI or the Corporate Governance Guidelines of the Corporation may be adopted by the Board, only by an affirmative vote of three-fourths of the Entire Board of Directors; provided , for the avoidance of doubt, that this Section 11.06 shall not affect the right of the stockholders of the Corporation to modify, amend or repeal any By-law provision in the manner and subject to the requirements set forth in the Certificate of Incorporation. During the Specified Period, in the event of any inconsistency between any other provision of these By-laws and any provision of this Article XI, the provisions of this Article XI shall govern and control.

Section 11.07. Sunset . Following the end of the Specified Period, this Article XI shall automatically and without further action become void and be of no further force or effect.

 

26

Exhibit 4.1

EXECUTION VERSION

NEW AMETHYST CORP.

and

the Subsidiary Guarantors from time to time parties hereto

and

WILMINGTON TRUST, NATIONAL ASSOCIATION

as Trustee

 

 

INDENTURE

DATED AS OF DECEMBER 1, 2016

 

 

PROVIDING FOR ISSUANCE OF NOTES IN SERIES


TABLE OF CONTENTS

Page

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

Section 101.

  Definitions      1   

Section 102.

  Other Definitions      48   

Section 103.

  Rules of Construction      49   

Section 104.

  [Reserved]      50   

Section 105.

  [Reserved]      50   

Section 106.

  Compliance Certificates and Opinions      50   

Section 107.

  Form of Documents Delivered to Trustee      51   

Section 108.

  Acts of Noteholders; Record Dates      51   

Section 109.

  Notices, Etc., to Trustee and Company      54   

Section 110.

  Notices to Holders; Waiver      54   

Section 111.

  Effect of Headings and Table of Contents      55   

Section 112.

  Successors and Assigns      55   

Section 113.

  Separability Clause      55   

Section 114.

  Benefits of Indenture      55   

Section 115.

  GOVERNING LAW      55   

Section 116.

  Legal Holidays      56   

Section 117.

  No Personal Liability of Directors, Officers, Employees, Incorporators and Stockholders      56   

Section 118.

  Exhibits and Schedules      56   

Section 119.

  Counterparts      56   

Section 120.

  Force Majeure      56   

Section 121.

  Limited Condition Acquisition      57   
ARTICLE II   
NOTE FORMS   

Section 201.

  Forms Generally      58   

Section 202.

  Form of Trustee’s Certificate of Authentication      60   

Section 203.

  Restrictive and Global Note Legends      61   
ARTICLE III   
THE NOTES   

Section 301.

  Amount Unlimited; Issuable in Series      64   

 

i


Table of Contents

(continued)

Page

 

Section 302.

  Denominations      65   

Section 303.

  Execution, Authentication and Delivery and Dating      65   

Section 304.

  Temporary Notes      66   

Section 305.

  Note Registrar and Paying Agent      66   

Section 306.

  Mutilated, Destroyed, Lost and Stolen Notes      67   

Section 307.

  Payment of Interest Rights Preserved      68   

Section 308.

  Persons Deemed Owners      69   

Section 309.

  Cancellation      70   

Section 310.

  Computation of Interest      70   

Section 311.

  CUSIP Numbers, ISINs, Etc      70   

Section 312.

  Book-Entry Provisions for Global Notes      70   

Section 313.

  Special Transfer Provisions      72   

Section 314.

  Payment of Additional Interest      75   
ARTICLE IV   
COVENANTS   

Section 401.

  Payment of Principal, Premium and Interest      75   

Section 402.

  Maintenance of Office or Agency      76   

Section 403.

  Money for Payments to Be Held in Trust      76   

Section 404.

  [Reserved]      77   

Section 405.

  SEC Reports      77   

Section 406.

  Statement as to Default      81   

Section 407.

  Limitation on Indebtedness      81   

Section 408.

  [Reserved]      86   

Section 409.

  Limitation on Restricted Payments      86   

Section 410.

  Limitation on Restrictions on Distributions from Restricted Subsidiaries      90   

Section 411.

  Limitation on Sales of Assets and Subsidiary Stock      92   

Section 412.

  Limitation on Transactions with Affiliates      96   

Section 413.

  Limitation on Liens      97   

Section 414.

  Future Subsidiary Guarantors      98   

Section 415.

  Purchase of Notes Upon a Change of Control      98   

Section 416.

  Suspension of Covenants on Achievement of Investment Grade Rating      100   
ARTICLE V   
SUCCESSORS   

Section 501.

  When the Company May Merge, Etc      101   

Section 502.

  Successor Company Substituted      103   

 

ii


Table of Contents

(continued)

Page

 

ARTICLE VI   
REMEDIES   

Section 601.

  Events of Default      103   

Section 602.

  Acceleration of Maturity; Rescission and Annulment      105   

Section 603.

  Other Remedies; Collection Suit by Trustee      106   

Section 604.

  Trustee May File Proofs of Claim      106   

Section 605.

  Trustee May Enforce Claims Without Possession of Notes      107   

Section 606.

  Application of Money Collected      107   

Section 607.

  Limitation on Suits      107   

Section 608.

  [Reserved]      108   

Section 609.

  Restoration of Rights and Remedies      108   

Section 610.

  Rights and Remedies Cumulative      108   

Section 611.

  Delay or Omission Not Waiver      108   

Section 612.

  Control by Holders      108   

Section 613.

  Waiver of Past Defaults      109   

Section 614.

  Undertaking for Costs      109   

Section 615.

  Waiver of Stay, Extension or Usury Laws      110   
ARTICLE VII   
THE TRUSTEE   

Section 701.

  Certain Duties and Responsibilities      110   

Section 702.

  Notice of Defaults      111   

Section 703.

  Certain Rights of Trustee      111   

Section 704.

  Not Responsible for Recitals or Issuance of Notes      112   

Section 705.

  May Hold Notes      112   

Section 706.

  Money Held in Trust      113   

Section 707.

  Compensation and Reimbursement      113   

Section 708.

  Conflicting Interests      113   

Section 709.

  Corporate Trustee Required; Eligibility      114   

Section 710.

  Resignation and Removal; Appointment of Successor      114   

Section 711.

  Acceptance of Appointment by Successor      115   

Section 712.

  Merger, Conversion, Consolidation or Succession to Business      116   

Section 713.

  Preferential Collection of Claims Against the Company      116   

Section 714.

  Appointment of Authenticating Agent      116   
ARTICLE VIII   
HOLDERS’ LISTS AND REPORTS BY   
TRUSTEE AND THE COMPANY   

Section 801.

  The Company to Furnish Trustee Names and Addresses of Holders      116   

 

iii


Table of Contents

(continued)

Page

 

Section 802.

  Preservation of Information; Communications to Holders      117   

Section 803.

  Reports by Trustee      117   
ARTICLE IX   
AMENDMENT, SUPPLEMENT OR WAIVER   

Section 901.

  Without Consent of Holders      117   

Section 902.

  With Consent of Holders      119   

Section 903.

  Execution of Amendments, Supplements or Waivers      120   

Section 904.

  Revocation and Effect of Consents      120   

Section 905.

  [Reserved]      121   

Section 906.

  Notation on or Exchange of Notes      121   
ARTICLE X   
REDEMPTION OF NOTES   

Section 1001.

  Applicability of Article      121   

Section 1002.

  [Reserved]      121   

Section 1003.

  Election to Redeem; Notice to Trustee      121   

Section 1004.

  Selection by Trustee of Notes to Be Redeemed      122   

Section 1005.

  Notice of Redemption      122   

Section 1006.

  Deposit of Redemption Price      123   

Section 1007.

  Notes Payable on Redemption Date      124   

Section 1008.

  Notes Redeemed in Part      124   
ARTICLE XI   
SATISFACTION AND DISCHARGE   

Section 1101.

  Satisfaction and Discharge of Indenture      125   

Section 1102.

  Satisfaction and Discharge of Notes of a Series      126   

Section 1103.

  Application of Trust Money      127   
ARTICLE XII   
DEFEASANCE OR COVENANT DEFEASANCE   

Section 1201.

  The Company’s Option to Effect Defeasance or Covenant Defeasance      128   

Section 1202.

  Defeasance and Discharge      128   

Section 1203.

  Covenant Defeasance      128   

Section 1204.

  Conditions to Defeasance or Covenant Defeasance      129   

Section 1205.

  Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions      131   

 

iv


Table of Contents

(continued)

Page

 

Section 1206.

  Reinstatement      131   

Section 1207.

  Repayment to the Company      131   
ARTICLE XIII   
SUBSIDIARY GUARANTEES   

Section 1301.

  Guarantees Generally      132   

Section 1302.

  Continuing Guarantees      134   

Section 1303.

  Release of Subsidiary Guarantees      134   

Section 1304.

  [Reserved]      135   

Section 1305.

  Waiver of Subrogation      135   

Section 1306.

  Notation Not Required      136   

Section 1307.

  Successors and Assigns of Subsidiary Guarantors      136   

Section 1308.

  Execution and Delivery of Subsidiary Guarantees      136   

Section 1309.

  Notices      136   

 

Exhibit A    

   Form of Initial Note

Exhibit B

   [Reserved]

Exhibit C

   Form of Certificate of Beneficial Ownership

Exhibit D

   Form of Regulation S Certificate

Exhibit E

   Form of Supplemental Indenture in Respect of Subsidiary Guarantees

Exhibit F

   Form of Certificate from Acquiring Institutional Accredited Investors

Exhibit G

   Form of Supplemental Indenture Establishing a Series of Notes

 

v


INDENTURE, dated as of December 1, 2016 (as amended, supplemented or otherwise modified from time to time, this “ Indenture ”), among New Amethyst Corp., a corporation organized under the laws of the State of Delaware, as issuer, the Subsidiary Guarantors from time to time parties hereto, and Wilmington Trust, National Association, a national banking association, as Trustee.

RECITALS OF THE COMPANY

The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of the Notes.

All things necessary to make this Indenture a valid agreement of the Company in accordance with the terms of the Initial Notes and this Indenture have been done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually agreed, for the benefit of all Holders of the Notes, as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 101. Definitions .

Acquired Indebtedness ” means Indebtedness of a Person ( i ) existing at the time such Person becomes a Subsidiary or ( ii ) assumed in connection with the acquisition of assets from such Person, in each case other than Indebtedness Incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such acquisition. Acquired Indebtedness shall be deemed to be Incurred on the date of the related acquisition of assets from any Person or the date the acquired Person becomes a Subsidiary.

Additional Assets ” means ( i ) any property or assets that replace the property or assets that are the subject of an Asset Disposition; ( ii ) any property or assets (other than Indebtedness and Capital Stock) used or to be used by the Company or a Restricted Subsidiary or otherwise useful in a Related Business, and any capital expenditures in respect of any property or assets already so used; ( iii ) the Capital Stock of a Person that is engaged in a Related Business and becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Company or another Restricted Subsidiary; or ( iv ) Capital Stock of any Person that at such time is a Restricted Subsidiary acquired from a third party.

 

1


Additional Notes ” means any notes issued under this Indenture in addition to the Initial Notes (other than any Notes issued pursuant to Section 304 , 305 , 306 , 312(d) , 312(e) or 1008 ).

Affiliate ” of any specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “ control ” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “ controlling ” and “ controlled ” have meanings correlative to the foregoing.

Asset Disposition ” means any sale, lease, transfer or other disposition of shares of Capital Stock of a Restricted Subsidiary (other than directors’ qualifying shares, or (in the case of a Foreign Subsidiary) to the extent required by applicable law), property or other assets (each referred to for the purposes of this definition as a “ disposition ”) by the Company or any of its Restricted Subsidiaries (including any disposition by means of a merger, consolidation or similar transaction) other than ( i ) a disposition to the Company or a Restricted Subsidiary, ( ii ) a disposition in the ordinary course of business, ( iii ) a disposition of Cash Equivalents, Investment Grade Securities or Temporary Cash Investments, ( iv ) the sale or discount (with or without recourse, and on customary or commercially reasonable terms, as determined by the Company in good faith) of accounts receivable or notes receivable arising in the ordinary course of business, or the conversion or exchange of accounts receivable for notes receivable, ( v ) any Restricted Payment Transaction, ( vi ) a disposition that is governed by Article V , ( vii ) any Financing Disposition, ( viii ) any “fee in lieu” or other disposition of assets to any Governmental Authority that continue in use by the Company or any Restricted Subsidiary, so long as the Company or any Restricted Subsidiary may obtain title to such assets upon reasonable notice by paying a nominal fee, ( ix ) any exchange of property pursuant to or intended to qualify under Section 1031 (or any successor section) of the Code, or any exchange of equipment to be leased, rented or otherwise used in a Related Business, ( x ) any financing transaction with respect to property built or acquired by the Company or any Restricted Subsidiary after the Issue Date, including without limitation any sale/leaseback transaction or asset securitization, ( xi ) any disposition arising from foreclosure, condemnation, eminent domain or similar action with respect to any property or other assets, or exercise of termination rights under any lease, license, concession or other agreement, or necessary or advisable (as determined by the Company in good faith) in order to consummate any acquisition of any Person, business or assets, or pursuant to buy/sell arrangements under any joint venture or similar agreement or arrangement, or of non-core assets acquired in connection with any acquisition of any Person, business or assets or any Investment, ( xii ) any disposition of Capital Stock, Indebtedness or other securities of an Unrestricted Subsidiary, ( xiii ) a disposition of Capital Stock of a Restricted Subsidiary pursuant to an agreement or other obligation with or to a Person (other than the Company or a Restricted Subsidiary) from whom such Restricted Subsidiary was acquired, or from whom such Restricted Subsidiary acquired its business and assets (having been newly formed in connection with such acquisition), entered into in connection with such acquisition, ( xiv ) a disposition of not more than 5.0% of the outstanding Capital Stock of a Foreign Subsidiary that has been approved by

 

2


the Board of Directors, ( xv ) any disposition or series of related dispositions for aggregate consideration not to exceed $100.0 million, ( xvi ) the abandonment or other disposition of patents, trademarks or other intellectual property that are, in the reasonable judgment of the Company, no longer economically practicable to maintain or useful in the conduct of the business of the Company and its Subsidiaries taken as a whole, ( xvii ) any license, sublicense or other grant of rights in or to any trademark, copyright, patent or other intellectual property, ( xviii ) any disposition arising from foreclosure or similar action with respect to any property or assets subject to a Municipal Contract Lien, ( xix ) the conversion of any Restricted Subsidiary into a Related Professional Corporation in a manner consistent with past practices on or prior to the Issue Date or in the ordinary course of business, including the entry into applicable Related Corporation Contracts in connection therewith, or ( xx ) the creation or granting of any Lien permitted under the Indenture.

Authenticating Agent ” means any Person authorized by the Trustee pursuant to Section 714 to act on behalf of the Trustee to authenticate Notes of one or more series.

Bank Products Agreement ” means any agreement pursuant to which a bank or other financial institution agrees to provide ( a ) treasury services, ( b ) credit card, merchant card, purchasing card or stored value card services (including, without limitation, the processing of payments and other administrative services with respect thereto), ( c ) cash management services (including, without limitation, controlled disbursements, automated clearinghouse transactions, return items, netting, overdrafts, depository, lockbox, stop payment, electronic funds transfer, information reporting, wire transfer and interstate depository network services) and ( d ) other banking products or services as may be requested by the Company or any Restricted Subsidiary (other than letters of credit and other than loans and advances except indebtedness arising from services described in clauses (a) through (c) of this definition).

Bank Products Obligations ” of any Person means the obligations of such Person pursuant to any Bank Products Agreement.

Board of Directors ” means, for any Person, the board of directors or other governing body of such Person or, if such Person does not have such a board of directors or other governing body and is owned or managed by a single entity, the board of directors or other governing body of such entity or, in either case, any committee thereof duly authorized to act on behalf of such board of directors or other governing body. Unless otherwise provided, “Board of Directors” means the Board of Directors of the Company.

Borrowing Base ” means the sum of ( 1 ) 80.0% of the book value of Inventory of the Company and its Restricted Subsidiaries, ( 2 ) 85.0% of the book value of Receivables of the Company, its Restricted Subsidiaries and Related Corporations, and ( 3 ) cash, Cash Equivalents and Temporary Cash Investments of the Company and its Restricted Subsidiaries (in each case, determined as of the end of the most recently ended fiscal month of the Company for which internal consolidated financial statements of the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under Section 405) are available, and, in the case of any determination relating to any Incurrence of Indebtedness, on a pro forma basis including ( x ) any property or assets of a type described above acquired since the end of such fiscal month and ( y ) any property or assets of a type described above being acquired in connection therewith).

 

3


Business Day ” means a day other than a Saturday, Sunday or other day on which commercial banking institutions are authorized or required by law to close in New York City (or any other city in which a Paying Agent maintains its office).

Capital Market Indebtedness ” means any series of capital market Indebtedness with an aggregate principal amount outstanding in excess of $300.0 million.

Capital Stock ” of any Person means any and all shares or units of, rights to purchase, warrants or options for, or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity.

Capitalized Lease Obligation ” means an obligation that is required to be classified and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP. The Stated Maturity of any Capitalized Lease Obligation shall be the date of the last payment of rent or any other amount due under the related lease.

Captive Insurance Subsidiary ” means any Subsidiary of the Company that is subject to regulation as an insurance company (or any Subsidiary thereof), including EMCA Insurance Company, Ltd. and Marblehead Surety & Reinsurance Company, Ltd.

Cash Equivalents ” means any of the following: ( a ) money, ( b ) securities issued or fully guaranteed or insured by the United States of America, Canada or a member state of the European Union or any agency or instrumentality of any thereof, ( c ) time deposits, certificates of deposit or bankers’ acceptances of ( i ) any bank or other institutional lender under any Senior Credit Facilities or any affiliate thereof or ( ii ) any commercial bank having capital and surplus in excess of $500.0 million (or the foreign currency equivalent thereof as of the date of such investment) and the commercial paper of the holding company of which is rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s (or, if at such time neither is issuing ratings, a comparable rating of another nationally recognized rating agency), ( d ) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (b) and (c) above entered into with any financial institution meeting the qualifications specified in clause (c)(i) or (c)(ii) above, ( e ) money market instruments, commercial paper or other short-term obligations rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s (or, if at such time neither is issuing ratings, a comparable rating of another nationally recognized rating agency), ( f ) investments in money market funds subject to the risk limiting conditions of Rule 2a-7 or any successor rule of the SEC under the Investment Company Act of 1940, as amended, ( g ) investments similar to any of the foregoing denominated in foreign currencies approved by the Board of Directors, and ( h ) solely with respect to any Captive Insurance Subsidiary, any investment that person is permitted to make in accordance with applicable law.

 

4


CHAMPVA ” shall have the meaning assigned thereto in the Senior ABL Agreement, as in effect on the Issue Date.

Change of Control ” means:

(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50.0% of the total voting power of the Voting Stock of the Company; provided that so long as the Company is a Subsidiary of any Parent, no “person” shall be deemed to be or become a “beneficial owner” of more than 50.0% of the total voting power of the Voting Stock of the Company unless such “person” shall be or become a “beneficial owner” of more than 50.0% of the total voting power of the Voting Stock of such Parent; or

(ii) the Company sells or transfers, in one or a series of related transactions, all or substantially all of the assets of the Company and its Restricted Subsidiaries to, another Person and any “person” (as defined in clause (i) above), other than any Parent, is or becomes the “beneficial owner” (as so defined), directly or indirectly, of more than 50.0% of the total voting power of the Voting Stock of the transferee Person in such sale or transfer of assets, as the case may be; provided that so long as such transferee Person is a Subsidiary of a parent Person, no “person” shall be deemed to be or become a “beneficial owner” of more than 50.0% of the total voting power of the Voting Stock of such transferee Person unless such “person” shall be or become a “beneficial owner” of more than 50.0% of the total voting power of the Voting Stock of such parent Person.

For the purpose of this definition, so long as at the time of any Minority Business Disposition or any Minority Business Offering the Minority Business Disposition Condition is met, the Minority Business Assets shall not be deemed at any time to constitute all or substantially all of the assets of the Company and its Restricted Subsidiaries, and any sale or transfer of all or any part of the Minority Business Assets (whether directly or indirectly, whether by sale or transfer of any such assets, or of any Capital Stock or other interest in any Person holding such assets, or by merger or consolidation, or any combination thereof, and whether in one or more transactions, or otherwise, including any Minority Business Offering or any Minority Business Disposition) shall not be deemed at any time to constitute a sale or transfer of all or substantially all of the assets of the Company and its Restricted Subsidiaries.

Clearstream ” means Clearstream Banking, société anonyme, or any successor securities clearing agency.

Code ” means the Internal Revenue Code of 1986, as amended from time to time.

Commodities Agreement ” means, in respect of a Person, any commodity futures contract, forward contract, option or similar agreement or arrangement (including derivative agreements or arrangements), as to which such Person is a party or beneficiary.

 

5


Company ” means New Amethyst Corp., a Delaware corporation, the name of which will be changed to Envision Healthcare Corporation, a Delaware corporation, on or about the Merger Date, and any successor in interest thereto.

Company Request ” and “ Company Order ” mean, respectively, a written request, order or consent signed in the name of the Company by an Officer of the Company.

Consolidated Coverage Ratio ” as of any date of determination means the ratio of ( i ) the aggregate amount of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under Section 405) are available to ( ii ) Consolidated Interest Expense for such four fiscal quarters; provided that

(1) if, since the beginning of such period, the Company or any Restricted Subsidiary has Incurred any Indebtedness that remains outstanding on such date of determination or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred on the first day of such period (except that in making such computation, the amount of Indebtedness under any revolving credit facility outstanding on the date of such calculation shall be computed based on ( A ) the average daily balance of such Indebtedness during such four fiscal quarters or such shorter period for which such facility was outstanding or ( B ) if such facility was created after the end of such four fiscal quarters, the average daily balance of such Indebtedness during the period from the date of creation of such facility to the date of such calculation),

(2) if, since the beginning of such period, the Company or any Restricted Subsidiary has repaid, repurchased, redeemed, defeased or otherwise acquired, retired or discharged any Indebtedness that is no longer outstanding on such date of determination (each, a “ Discharge ”) or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio involves a Discharge of Indebtedness (in each case other than Indebtedness Incurred under any revolving credit facility unless such Indebtedness has been repaid with an equivalent permanent reduction in commitments thereunder), Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving effect on a pro forma basis to such Discharge of such Indebtedness, including with the proceeds of such new Indebtedness, as if such Discharge had occurred on the first day of such period,

(3) if, since the beginning of such period, the Company or any Restricted Subsidiary shall have disposed of any company, any business or any group of assets constituting an operating unit of a business, including any such disposition occurring in connection with a transaction causing a calculation to be made hereunder, or designated any Restricted Subsidiary as an Unrestricted Subsidiary (any such disposition or

 

6


designation, a “ Sale ”), the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period and Consolidated Interest Expense for such period shall be reduced by an amount equal to ( A ) the Consolidated Interest Expense attributable to any Indebtedness of the Company or any Restricted Subsidiary repaid, repurchased, redeemed, defeased or otherwise acquired, retired or discharged with respect to the Company and its continuing Restricted Subsidiaries in connection with such Sale for such period (including but not limited to through the assumption of such Indebtedness by another Person) plus ( B ) if the Capital Stock of any Restricted Subsidiary that is disposed of in such Sale or any Restricted Subsidiary is designated as an Unrestricted Subsidiary, the Consolidated Interest Expense for such period attributable to the Indebtedness of such Restricted Subsidiary to the extent the Company and its continuing Restricted Subsidiaries are no longer liable for such Indebtedness after such Sale,

(4) if, since the beginning of such period, the Company or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made an Investment in any Person that thereby becomes a Restricted Subsidiary, or otherwise acquired any company, any business or any group of assets constituting an operating unit of a business, including any such Investment or acquisition occurring in connection with a transaction causing a calculation to be made hereunder, or designated any Unrestricted Subsidiary as a Restricted Subsidiary (any such Investment, acquisition or designation, a “ Purchase ”), Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto (including the Incurrence of any related Indebtedness) as if such Purchase occurred on the first day of such period, and

(5) if, since the beginning of such period, any Person became a Restricted Subsidiary or was merged or consolidated with or into the Company or any Restricted Subsidiary, and since the beginning of such period such Person shall have Discharged any Indebtedness or made any Sale or Purchase that would have required an adjustment pursuant to clause (2), (3) or (4) above if made by the Company or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto as if such Discharge, Sale or Purchase occurred on the first day of such period;

provided that, for purposes of the foregoing calculations, (x) (in the event that the Company shall classify Indebtedness Incurred on the date of determination as Incurred in part under Section 407(a) and in part under Section 407(b) , as provided in Section 407(c)(iii) ) any such pro forma calculation of Consolidated Interest Expense shall not give effect to any such Incurrence of Indebtedness on the date of determination pursuant to Section 407(b) (other than Section 407(b)(x) ) or to any Discharge of Indebtedness from the proceeds of any such Incurrence pursuant to Section 407(b) (other than Section 407(b)(x) ), and (y) (in the event that the Company shall classify Indebtedness Incurred on the date of determination as Incurred in part pursuant to

 

7


Section 407(b)(x) (other than by reason of subclause (2) of Section 407(b)(x) ) and in part pursuant to one or more other clauses of Section 407(b) , as provided in Section 407(c)(ii) ) any pro forma calculation of Consolidated Interest Expense shall not give effect to any such Incurrence of Indebtedness on the date of determination pursuant to such other clauses of Section 407(b) or to any Discharge of Indebtedness from the proceeds of any such Incurrence pursuant to such other clauses of Section 407(b) .

For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto and the amount of Consolidated Interest Expense associated with any Indebtedness Incurred or repaid, repurchased, redeemed, defeased or otherwise acquired, retired or discharged in connection therewith, the pro forma calculations in respect thereof (including without limitation in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other transaction) shall be as determined in good faith by the Chief Financial Officer or an authorized Officer of the Company; provided that with respect to cost savings or synergies relating to any Sale, Purchase or other transaction, the related actions are expected by the Company to be taken no later than 18 months after the date of determination. If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest expense on such Indebtedness shall be calculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account any Interest Rate Agreement applicable to such Indebtedness). If any Indebtedness bears, at the option of the Company or a Restricted Subsidiary, a rate of interest based on a prime or similar rate, a eurocurrency interbank offered rate or other fixed or floating rate, and such Indebtedness is being given pro forma effect, the interest expense on such Indebtedness shall be calculated by applying such optional rate as the Company or such Restricted Subsidiary may designate. If any Indebtedness that is being given pro forma effect was Incurred under a revolving credit facility, the interest expense on such Indebtedness shall be computed based upon the average daily balance of such Indebtedness during the applicable period. Interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate determined in good faith by a responsible financial or accounting officer of the Company to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP.

Consolidated EBITDA ” means, for any period, the Consolidated Net Income for such period, plus ( x ) the following to the extent deducted in calculating such Consolidated Net Income, without duplication: ( i ) provision for all taxes (whether or not paid, estimated or accrued) based on income, profits or capital (including penalties and interest, if any), ( ii ) Consolidated Interest Expense and any Special Purpose Financing Fees, ( iii ) depreciation, ( iv ) amortization (including but not limited to amortization of goodwill and intangibles and amortization and write-off of financing costs), ( v ) any non-cash charges or non-cash losses, ( vi ) any expenses or charges related to any Equity Offering, Investment or Indebtedness permitted by this Indenture (whether or not consummated or incurred, and including any offering or sale of Capital Stock to the extent the proceeds thereof were intended to be contributed to the equity capital of the Company or its Restricted Subsidiaries), ( vii ) the amount of any loss attributable to non-controlling interests, ( viii ) all deferred financing costs written off and premiums paid in connection with any early extinguishment of Hedging Obligations or other derivative

 

8


instruments, and ( ix ) [reserved], plus ( y ) the amount of net cost savings projected by the Company in good faith to be realized as the result of actions taken or to be taken on or prior to the date that is 18 months after the Issue Date, or 18 months after the initiation or consummation of any operational change, respectively (calculated on a pro forma basis as though such cost savings had been realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions (which adjustments may be incremental to pro forma adjustments made pursuant to the proviso to the definition of “ Consolidated Coverage Ratio ”, “ Consolidated Secured Leverage Ratio ” or “ Consolidated Total Leverage Ratio ”).

Consolidated Interest Expense ” means, for any period, ( i ) the total interest expense of the Company and its Restricted Subsidiaries to the extent deducted in calculating Consolidated Net Income, net of any interest income of the Company and its Restricted Subsidiaries, including without limitation, any such interest expense consisting of ( A ) interest expense attributable to Capitalized Lease Obligations, ( B ) amortization of debt discount, ( C ) interest in respect of Indebtedness of any other Person that has been Guaranteed by the Company or any Restricted Subsidiary, but only to the extent that such interest is actually paid by the Company or any Restricted Subsidiary, ( D ) non-cash interest expense, ( E ) the interest portion of any deferred payment obligation, and ( F ) commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, plus ( ii ) Preferred Stock dividends paid in cash in respect of Disqualified Stock of the Company held by Persons other than the Company or a Restricted Subsidiary (for the avoidance of doubt, other than, on or prior to July 1, 2017, dividends paid in cash in respect of the Existing Mandatory Convertible Preferred), and minus ( iii ) to the extent otherwise included in such interest expense referred to in clause (i) above, amortization or write-off of financing costs, in each case under clauses (i) through (iii) above as determined on a Consolidated basis in accordance with GAAP;  provided that gross interest expense shall be determined after giving effect to any net payments made or received by the Company and its Restricted Subsidiaries with respect to Interest Rate Agreements.

Consolidated Net Income ” means, for any period, the net income (loss) of the Company and its Restricted Subsidiaries, determined on a Consolidated basis in accordance with GAAP and before any reduction in respect of Preferred Stock dividends; provided that, without duplication, there shall not be included in such Consolidated Net Income:

(i) any net income (loss) of any Person if such Person is not the Company or a Restricted Subsidiary, except that ( A ) the Company’s or any Restricted Subsidiary’s net income for such period shall be increased by the aggregate amount actually distributed by such Person during such period to the Company or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution to a Restricted Subsidiary, to the limitations contained in clause (ii) below), to the extent not already included therein, and ( B ) the Company’s or any Restricted Subsidiary’s equity in the net loss of such Person shall be included to the extent of the aggregate Investment of the Company or any of its Restricted Subsidiaries in such Person;

 

9


(ii) solely for purposes of determining the amount available for Restricted Payments under Section 409(a)(3)(A) , any net income (loss) of any Restricted Subsidiary that is not a Subsidiary Guarantor if such Restricted Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of similar distributions by such Restricted Subsidiary, directly or indirectly, to the Company by operation of the terms of such Restricted Subsidiary’s charter or any agreement, instrument, judgment, decree, order, statute or governmental rule or regulation applicable to such Restricted Subsidiary or its stockholders (other than ( x ) restrictions that have been waived or otherwise released, ( y ) restrictions pursuant to the Notes or this Indenture, and ( z ) restrictions in effect on the Issue Date with respect to a Restricted Subsidiary and other restrictions with respect to such Restricted Subsidiary that, taken as a whole, are not materially less favorable to the Noteholders than such restrictions in effect on the Issue Date as determined by the Company in good faith), except that ( A ) the Company’s equity in the net income of any such Restricted Subsidiary for such period shall be included in such Consolidated Net Income up to the aggregate amount of any dividend or distribution that was or that could have been made by such Restricted Subsidiary during such period to the Company or another Restricted Subsidiary (subject, in the case of a dividend that could have been made to another Restricted Subsidiary, to the limitation contained in this clause (ii)) and ( B ) the net loss of such Restricted Subsidiary shall be included to the extent of the aggregate Investment of the Company or any of its other Restricted Subsidiaries in such Restricted Subsidiary;

(iii) any gain or loss realized upon the sale or other disposition of any asset of the Company or any Restricted Subsidiary (including pursuant to any sale/leaseback transaction) that is not sold or otherwise disposed of in the ordinary course of business (as determined in good faith by the Board of Directors);

(iv) any item classified as an extraordinary, unusual or nonrecurring gain, loss or charge (including fees, expenses and charges associated with the Transactions and any acquisition, merger or consolidation after the Issue Date);

(v) the cumulative effect of a change in accounting principles;

(vi) all deferred financing costs written off and premiums paid in connection with any early extinguishment of Indebtedness;

(vii) any unrealized gains or losses in respect of Hedge Agreements;

(viii) any unrealized foreign currency transaction gains or losses in respect of Indebtedness of any Person denominated in a currency other than the functional currency of such Person;

(ix) any non-cash compensation charge arising from any grant of stock, stock options or other equity based awards;

 

10


(x) to the extent otherwise included in Consolidated Net Income, any unrealized foreign currency translation or transaction gains or losses in respect of Indebtedness or other obligations of the Company or any Restricted Subsidiary owing to the Company or any Restricted Subsidiary;

(xi) any non-cash charge, expense or other impact attributable to application of the purchase or recapitalization method of accounting (including the total amount of depreciation and amortization, cost of sales or other non-cash expense resulting from the write-up of assets to the extent resulting from such purchase or recapitalization accounting adjustments); and

(xii) expenses related to the conversion of various employee benefit programs in connection with the Transactions, and non-cash compensation related expenses;

provided , further , that the exclusion of any item pursuant to the foregoing clauses (i) through (xii) shall also exclude the tax impact of any such item, if applicable.

In the case of any unusual or nonrecurring gain, loss or charge not included in Consolidated Net Income pursuant to clause (iv) above in any determination thereof, the Company will deliver an Officer’s Certificate to the Trustee promptly after the date on which Consolidated Net Income is so determined, setting forth the nature and amount of such unusual or nonrecurring gain, loss or charge. Notwithstanding the foregoing, for the purpose of Section 409(a)(3)(A) only, there shall be excluded from Consolidated Net Income, without duplication, any income consisting of dividends, repayments of loans or advances or other transfers of assets from Unrestricted Subsidiaries to the Company or a Restricted Subsidiary, and any income consisting of return of capital, repayment or other proceeds from dispositions or repayments of Investments consisting of Restricted Payments, in each case to the extent such income would be included in Consolidated Net Income and such related dividends, repayments, transfers, return of capital or other proceeds are applied by the Company to increase the amount of Restricted Payments permitted under Section 409(a)(3)(C) or Section 409(a)(3)(D) .

Consolidated Secured Indebtedness ” means, as of any date of determination, ( i ) an amount equal to the Consolidated Total Indebtedness (without regard to clause (ii) of the definition thereof) as of such date that, in each case, is then secured by Liens on property or assets of the Company and its Restricted Subsidiaries (other than property or assets held in a defeasance or similar trust or arrangement for the benefit of the Indebtedness secured thereby), minus ( ii ) the sum of ( A ) the amount of such Indebtedness consisting of Indebtedness of a type referred to in, or Incurred pursuant to, Section 407(b)(ix) and ( B ) cash, Cash Equivalents and Temporary Cash Investments held by the Company and its Restricted Subsidiaries as of the end of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under Section 405) are available.

Consolidated Secured Leverage Ratio ” means, as of any date of determination, the ratio of ( i ) Consolidated Secured Indebtedness as at such date (after giving effect to any

 

11


Incurrence or Discharge of Indebtedness on such date) to ( ii ) the aggregate amount of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under Section 405) are available, provided that:

(1) if, since the beginning of such period, the Company or any Restricted Subsidiary shall have made a Sale (including any Sale occurring in connection with a transaction causing a calculation to be made hereunder), the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period;

(2) if, since the beginning of such period, the Company or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made a Purchase (including any Purchase occurring in connection with a transaction causing a calculation to be made hereunder), Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day of such period; and

(3) if, since the beginning of such period, any Person became a Restricted Subsidiary or was merged or consolidated with or into the Company or any Restricted Subsidiary, and since the beginning of such period such Person shall have made any Sale or Purchase that would have required an adjustment pursuant to clause (1) or (2) above if made by the Company or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Sale or Purchase occurred on the first day of such period;

provided that, in the event that the Company shall classify Indebtedness Incurred on the date of determination as secured in part pursuant to clause (r) of the “Permitted Liens” definition and in part pursuant to one or more other clauses of such definition (as provided in clause (x) of the final paragraph of such definition) any calculation of Consolidated Secured Indebtedness shall not include any such Indebtedness (and shall not give effect to any Discharge of Consolidated Secured Indebtedness from the proceeds thereof) to the extent secured pursuant to any such other clause of such definition.

For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof (including, without limitation, in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other transaction) shall be as determined in good faith by the Chief Financial Officer or another authorized Officer of the Company; provided that with respect to cost savings or synergies relating to any Sale, Purchase or other transaction, the related actions are expected by the Company to be taken no later than 18 months after the date of determination.

 

12


Consolidated Total Indebtedness ” means, as of any date of determination, an amount equal to ( i ) the aggregate principal amount of outstanding Indebtedness of the Company and its Restricted Subsidiaries as of such date consisting of (without duplication) Indebtedness for borrowed money (including Purchase Money Obligations and unreimbursed outstanding drawn amounts under funded letters of credit); Capitalized Lease Obligations; debt obligations evidenced by bonds, debentures, notes or similar instruments; Disqualified Stock; and (in the case of any Restricted Subsidiary that is not a Subsidiary Guarantor) Preferred Stock, determined on a Consolidated basis in accordance with GAAP (excluding items eliminated in Consolidation, and for the avoidance of doubt, excluding Hedging Obligations) minus ( ii ) the sum of ( A ) the amount of such Indebtedness consisting of Indebtedness of a type referred to in, or Incurred pursuant to, Section 407(b)(ix) and ( B ) cash, Cash Equivalents and Temporary Cash Investments held by the Company and its Restricted Subsidiaries as of the end of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under Section 405) are available.

Consolidated Total Leverage Ratio ” means, as of any date of determination, the ratio of ( i ) Consolidated Total Indebtedness as at such date (after giving effect to any Incurrence or Discharge of Indebtedness on such date) to ( ii ) the aggregate amount of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under Section 405) are available, provided that:

(1) if, since the beginning of such period, the Company or any Restricted Subsidiary shall have made a Sale (including any Sale occurring in connection with a transaction causing a calculation to be made hereunder), the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period;

(2) if, since the beginning of such period, the Company or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made a Purchase (including any Purchase occurring in connection with a transaction causing a calculation to be made hereunder), Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day of such period; and

(3) if, since the beginning of such period, any Person became a Restricted Subsidiary or was merged or consolidated with or into the Company or any Restricted Subsidiary, and since the beginning of such period such Person shall have made any Sale or Purchase that would have required an adjustment pursuant to clause (1) or (2) above if made by the Company or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Sale or Purchase occurred on the first day of such period.

 

13


For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof (including, without limitation, in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other transaction) shall be as determined in good faith by the Chief Financial Officer or another authorized Officer of the Company; provided that with respect to cost savings or synergies relating to any Sale, Purchase or other transaction, the related actions are expected by the Company to be taken no later than 18 months after the date of determination.

Consolidation ” means the consolidation of the accounts of each of the Restricted Subsidiaries with those of the Company in accordance with GAAP;  provided that “Consolidation” will not include consolidation of the accounts of any Unrestricted Subsidiary, but the interest of the Company or any Restricted Subsidiary in any Unrestricted Subsidiary will be accounted for as an investment. The term “ Consolidated ” has a correlative meaning.

Contribution Amounts ” means the aggregate amount of capital contributions applied by the Company to permit the Incurrence of Contribution Indebtedness pursuant to Section 407(b)(xi) .

Contribution Indebtedness ” means Indebtedness of the Company or any Restricted Subsidiary in an aggregate principal amount not greater than twice the aggregate amount of cash contributions (other than Excluded Contributions, the proceeds from the issuance of Disqualified Stock or contributions by the Company or any Restricted Subsidiary) made to the capital of the Company or such Restricted Subsidiary after the Issue Date (whether through the issuance or sale of Capital Stock or otherwise); provided that such Contribution Indebtedness ( a ) is Incurred within 180 days after the receipt of the related cash contribution and ( b ) is so designated as Contribution Indebtedness pursuant to an Officer’s Certificate on the date of Incurrence thereof.

Corporate Trust Office ” means the office of the Trustee at which at any particular time its corporate trust business related to this Indenture shall be administered, which office on the Issue Date is located at 246 Goose Lane, Suite 105, Guilford, Connecticut 06437.

Credit Facilities ” means one or more of ( i ) the Senior Term Facility, ( ii ) the Senior ABL Facility, and ( iii ) any other facilities or arrangements designated by the Company, in each case with one or more banks or other lenders or institutions providing for revolving credit loans, term loans, receivables, inventory or real estate financings (including without limitation through the sale of receivables, inventory, real estate and/or other assets to such institutions or to special purpose entities formed to borrow from such institutions against such receivables, inventory, real estate and/or other assets or the creation of any Liens in respect of such receivables, inventory, real estate and/or other assets in favor of such institutions), letters of credit or other Indebtedness, in each case, including all agreements, instruments and documents

 

14


executed and delivered pursuant to or in connection with any of the foregoing, including but not limited to any notes and letters of credit issued pursuant thereto and any guarantee and collateral agreement, patent, trademark and copyright security agreement, mortgages or letter of credit applications and other guarantees, pledge agreements, security agreements and collateral documents, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time, or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original banks, lenders or institutions or other banks, lenders or institutions or otherwise, and whether provided under any original Credit Facility or one or more other credit agreements, indentures, financing agreements or other Credit Facilities or otherwise). Without limiting the generality of the foregoing, the term “ Credit Facility ” shall include any agreement ( i ) changing the maturity of any Indebtedness Incurred thereunder or contemplated thereby, ( ii ) adding Subsidiaries as additional borrowers or guarantors thereunder, ( iii ) increasing the amount of Indebtedness Incurred thereunder or available to be borrowed thereunder or ( iv ) otherwise altering the terms and conditions thereof.

Credit Facility Indebtedness ” means any and all amounts, whether outstanding on the Issue Date or thereafter Incurred, payable under or in respect of any Credit Facility, including without limitation principal, premium (if any), interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company or any Restricted Subsidiary whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, guarantees, other monetary obligations of any nature and all other amounts payable thereunder or in respect thereof.

Currency Agreement ” means, in respect of a Person, any foreign exchange contract, currency swap agreement or other similar agreement or arrangements (including derivative agreements or arrangements), as to which such Person is a party or a beneficiary.

Default ” means any event or condition that is, or after notice or passage of time or both would be, an Event of Default.

Depositary ” means The Depository Trust Company, its nominees and successors.

Designated Noncash Consideration ” means the Fair Market Value of noncash consideration received by the Company or one of its Restricted Subsidiaries in connection with an Asset Disposition that is so designated as Designated Noncash Consideration pursuant to an Officer’s Certificate, setting forth the basis of such valuation.

Designated Senior Indebtedness ” means with respect to a Person ( i ) the Credit Facility Indebtedness under or in respect of the Senior Credit Facilities and ( ii ) any other Senior Indebtedness of such Person that, at the date of determination, has an aggregate principal amount equal to or under which, at the date of determination, the holders thereof are committed to lend up to, at least $50.0 million and is specifically designated by such Person in an agreement or instrument evidencing or governing such Senior Indebtedness as “Designated Senior Indebtedness” for purposes of this Indenture.

 

15


Disinterested Directors ” means, with respect to any Affiliate Transaction, one or more members of the Board of Directors of the Company, or one or more members of the Board of Directors of a Parent, having no material direct or indirect financial interest in or with respect to such Affiliate Transaction. A member of any such Board of Directors shall not be deemed to have such a financial interest by reason of such member’s holding Capital Stock of the Company or any Parent or any options, warrants or other rights in respect of such Capital Stock or by reason of such member receiving any compensation in respect of such member’s role as director.

Disqualified Stock ” means, with respect to any Person, any Capital Stock (other than Management Stock) that by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable) or upon the happening of any event (other than following the occurrence of a Change of Control or other similar event described under such terms as a “change of control,” or an Asset Disposition or other disposition) ( i ) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise, ( ii ) is convertible or exchangeable for Indebtedness or Disqualified Stock or ( iii ) is redeemable at the option of the holder thereof (other than following the occurrence of a Change of Control or other similar event described under such terms as a “change of control,” or an Asset Disposition or other disposition), in whole or in part, in each case on or prior to the final Stated Maturity of the Notes; provided that Capital Stock issued to any employee benefit plan, or by any such plan to any employees of the Company or any Subsidiary, shall not constitute Disqualified Stock solely because it may be required to be repurchased or otherwise acquired or retired in order to satisfy applicable statutory or regulatory obligations.

Domestic Subsidiary ” means any Restricted Subsidiary of the Company other than a Foreign Subsidiary.

Equity Offering ” means a sale of Capital Stock ( x ) that is a sale of Capital Stock of the Company (other than Disqualified Stock or sales to Subsidiaries of the Company) or ( y ) proceeds of which in an amount equal to or exceeding the Redemption Amount are contributed to the equity capital of the Company or any of its Restricted Subsidiaries (other than proceeds from a sale to Subsidiaries of Capital Stock of the Company).

Euroclear ” means Euroclear Bank S.A./N.V., as operator of the Euroclear System, or any successor securities clearing agency.

Exchange Act ” means the Securities Exchange Act of 1934, as amended from time to time.

Excluded Contribution ” means Net Cash Proceeds, or the Fair Market Value (as of the date of contribution) of property or assets, received by the Company as capital contributions to the Company after the Issue Date or from the issuance or sale (other than to a Restricted Subsidiary) of Capital Stock (other than Disqualified Stock) of the Company, in each case to the extent designated as an Excluded Contribution pursuant to an Officer’s Certificate of the Company and not previously included in the calculation set forth in Section 409(a)(3)(B)(x) for purposes of determining whether a Restricted Payment may be made.

 

16


Existing Mandatory Convertible Preferred ” means the Company’s 5.25% Mandatory Convertible Preferred Stock, Series A-1, with a liquidation preference of $100 per share, issued on July 16, 2014.

Fair Market Value ” means, with respect to any asset or property, the fair market value of such asset or property as determined in good faith by senior management of the Company or the Board of Directors, whose determination shall be conclusive.

Financing Disposition ” means any sale, transfer, conveyance or other disposition of, or creation or incurrence of any Lien on, property or assets by the Company or any Subsidiary thereof to or in favor of any Special Purpose Entity, or by any Special Purpose Subsidiary, in each case in connection with the Incurrence by a Special Purpose Entity of Indebtedness, or obligations to make payments to the obligor on Indebtedness, which may be secured by a Lien in respect of such property or assets.

Fixed GAAP Date ” means the Reference Date, provided that at any time after the Issue Date, the Company may by written notice to the Trustee elect to change the Fixed GAAP Date to be the date specified in such notice, and upon such notice, the Fixed GAAP Date shall be such date for all periods beginning on and after the date specified in such notice.

Fixed GAAP Terms ” means ( a ) the definitions of the terms “Borrowing Base”, “Capitalized Lease Obligations”, “Consolidated Coverage Ratio”, “Consolidated EBITDA”, “Consolidated Interest Expense”, “Consolidated Net Income”, “Consolidated Secured Indebtedness”, “Consolidated Secured Leverage Ratio”, “Consolidated Total Indebtedness”, “Consolidated Total Leverage Ratio”, “Consolidation”, “Four Quarter Consolidated EBITDA”, “Inventory” or “Receivables”, ( b ) all defined terms in this Indenture to the extent used in or relating to any of the foregoing definitions, and all ratios and computations based on any of the foregoing definitions, and ( c ) any other term or provision of this Indenture or the Notes that, at the Company’s election, may be specified by the Company by written notice to the Trustee from time to time.

Foreign Subsidiary ” means any Subsidiary of the Company ( a ) that is not organized under the laws of the United States of America or any state thereof or the District of Columbia and any Subsidiary of such Foreign Subsidiary (including, for the avoidance of doubt, any Subsidiary of the Company which is organized and existing under the laws of Puerto Rico or any other territory of the United States of America) or ( b ) that has no material assets other than securities or indebtedness of one or more Foreign Subsidiaries (or Subsidiaries thereof), intellectual property relating to such Foreign Subsidiaries (or Subsidiaries thereof) and other assets (including cash, Cash Equivalents and Temporary Cash Investments) relating to an ownership interest in any such securities, indebtedness, intellectual property or Subsidiaries.

 

17


Four Quarter Consolidated EBITDA ” means, as of any date of determination, the aggregate amount of Consolidated EBITDA for the period of the most recent four fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under Section 405) are available, provided that:

(1) if, since the beginning of such period, the Company or any Restricted Subsidiary shall have made a Sale (including any Sale occurring in connection with a transaction causing a calculation to be made hereunder), the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period;

(2) if, since the beginning of such period, the Company or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made a Purchase (including any Purchase occurring in connection with a transaction causing a calculation to be made hereunder), Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day of such period; and

(3) if, since the beginning of such period, any Person became a Restricted Subsidiary or was merged or consolidated with or into the Company or any Restricted Subsidiary, and since the beginning of such period such Person shall have made any Sale or Purchase that would have required an adjustment pursuant to clause (1) or (2) above if made by the Company or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Sale or Purchase occurred on the first day of such period.

For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof (including, without limitation, in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other transaction) shall be as determined in good faith by the Chief Financial Officer or another authorized Officer of the Company; provided that with respect to cost savings or synergies relating to any Sale, Purchase or other transaction, the related actions are expected by the Company to be taken no later than 18 months after the date of determination.

GAAP ” means generally accepted accounting principles in the United States of America as in effect on the Fixed GAAP Date (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other purposes under this Indenture), including those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession, and subject to the following sentence. If at any time the SEC permits or requires U.S. domiciled companies subject to the reporting requirements of the

 

18


Exchange Act to use IFRS in lieu of GAAP for financial reporting purposes, the Company (or, any applicable Parent whose financial statements satisfy the Company’s reporting obligations under Section 405) may elect by written notice to the Trustee to so use IFRS in lieu of GAAP and, upon any such notice, references herein to GAAP shall thereafter be construed to mean ( a ) for periods beginning on and after the date specified in such notice, IFRS as in effect on the date specified in such notice (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other purposes under this Indenture) and ( b ) for prior periods, GAAP as defined in the first sentence of this definition. All ratios and computations based on GAAP contained in this Indenture shall be computed in conformity with GAAP.

Governmental Authority ” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational bodies such as the European Union or the European Central Bank).

Guarantee ” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other obligation of any other Person; 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.

Guarantor Subordinated Obligations ” means, with respect to a Subsidiary Guarantor, any Indebtedness of such Subsidiary Guarantor (whether outstanding on the Issue Date or thereafter Incurred) that is expressly subordinated in right of payment to the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee pursuant to a written agreement.

Guarantor Supplemental Indenture ” means a Supplemental Indenture, to be entered into substantially in the form attached hereto as Exhibit E .

Hedge Agreements ” means, collectively, Interest Rate Agreements, Currency Agreements and Commodities Agreements.

Hedging Obligations ” of any Person means the obligations of such Person pursuant to any Interest Rate Agreement, Currency Agreement or Commodities Agreement.

Holder ” or “ Noteholder ” means the Person in whose name a Note is registered in the Note Register.

Hospital Joint Venture ” shall mean a Person that ( a ) is owned solely by ( i ) the Company or any Restricted Subsidiary and ( ii ) a hospital or health system or an Affiliate thereof; ( b ) owns more than 50% of the outstanding Capital Stock of an Operating Entity and ( c ) is not subject to any contractual obligation that limits the ability of such Person to pay dividends or make any other distribution on any of such Person’s Capital Stock or other equity interests

 

19


owned by the Company or any Restricted Subsidiary, other than restrictions comparable to those described in Section 410 (except transactions described in Section 410(1) , Section 410(4)(G) , Section 410(5) or Section 410(6) ); provided , however, that the Company or any Restricted Subsidiary must own no less than 40% of the outstanding Capital Stock of such Person.

IFRS ” means International Financial Reporting Standards and applicable accounting requirements set by the International Accounting Standards Board or any successor thereto (or the Financial Accounting Standards Board, the Accounting Principles Board of the American Institute of Certified Public Accountants, or any successor to either such board, or the SEC, as the case may be), as in effect from time to time.

Incur ” means issue, assume, enter into any Guarantee of, incur or otherwise become liable for; and the terms “ Incurs ,” “ Incurred ” and “ Incurrence ” shall have a correlative meaning; provided that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Subsidiary at the time it becomes a Subsidiary. Accrual of interest, the accretion of accreted value, the payment of interest in the form of additional Indebtedness, and the payment of dividends on Capital Stock constituting Indebtedness in the form of additional shares of the same class of Capital Stock, will not be deemed to be an Incurrence of Indebtedness. Any Indebtedness issued at a discount (including Indebtedness on which interest is payable through the issuance of additional Indebtedness) shall be deemed Incurred at the time of original issuance of the Indebtedness at the initial accreted amount thereof.

Indebtedness ” means, with respect to any Person on any date of determination (without duplication):

(i) the principal of indebtedness of such Person for borrowed money;

(ii) the principal of obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

(iii) all reimbursement obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar instruments (the amount of such obligations being equal at any time to the aggregate then undrawn and unexpired amount of such letters of credit, bankers’ acceptances or other instruments plus the aggregate amount of drawings thereunder that have not then been reimbursed);

(iv) all obligations of such Person to pay the deferred and unpaid purchase price of property (except Trade Payables), which purchase price is due more than one year after the date of placing such property in final service or taking final delivery and title thereto;

(v) all Capitalized Lease Obligations of such Person;

 

20


(vi) the redemption, repayment or other repurchase amount of such Person with respect to any Disqualified Stock of such Person or (if such Person is a Subsidiary of the Company other than a Subsidiary Guarantor) any Preferred Stock of such Subsidiary, but excluding, in each case, any accrued dividends (the amount of such obligation to be equal at any time to the maximum fixed involuntary redemption, repayment or repurchase price for such Capital Stock, or if less (or if such Capital Stock has no such fixed price), to the involuntary redemption, repayment or repurchase price therefor calculated in accordance with the terms thereof as if then redeemed, repaid or repurchased, and if such price is based upon or measured by the fair market value of such Capital Stock, such fair market value shall be as determined in good faith by senior management of the Company, the Board of Directors of the Company or the Board of Directors of the issuer of such Capital Stock);

(vii) all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person; provided that the amount of Indebtedness of such Person shall be the lesser of ( A ) the Fair Market Value of such asset at such date of determination and ( B ) the amount of such Indebtedness of such other Persons;

(viii) all Guarantees by such Person of Indebtedness of other Persons, to the extent so Guaranteed by such Person; and

(ix) to the extent not otherwise included in this definition, net Hedging Obligations of such Person (the amount of any such obligation to be equal at any time to the termination value of such agreement or arrangement giving rise to such Hedging Obligation that would be payable by such Person at such time).

The amount of Indebtedness of any Person at any date shall be determined as set forth above or as otherwise provided for in this Indenture, or otherwise shall equal the amount thereof that would appear as a liability on a balance sheet of such Person (excluding any notes thereto) prepared in accordance with GAAP.

Initial Additional Notes ” means Additional Notes issued in an offering not registered under the Securities Act (and any Notes issued in respect thereof pursuant to Section 304 , 305 , 306 , 312(d) , 312(e) or 1008 ).

Initial Notes ” means the 6.25% Senior Notes due 2024 of the Company issued on the Issue Date pursuant to the first Notes Supplemental Indenture, dated as of December 1, 2016 (and any Notes issued in respect thereof pursuant to Section 304 , 305 , 306 , 312(d) , 312(e) or 1008 ).

interest ,” with respect to the Notes, means interest on the Notes and, except for purposes of Article IX , additional or special interest pursuant to the terms of any Note.

 

21


Interest Payment Date ” means, when used with respect to any Note and any installment of interest thereon, the date specified in such Note as the fixed date on which such installment of interest is due and payable, as set forth in such Note.

Interest Rate Agreement ” means, with respect to any Person, any interest rate protection agreement, future agreement, option agreement, swap agreement, cap agreement, collar agreement, hedge agreement or other similar agreement or arrangement (including derivative agreements or arrangements), as to which such Person is a party or a beneficiary.

Inventory ” means goods held for sale, lease or use by a Person in the ordinary course of business, net of any reserve for goods that have been segregated by such Person to be returned to the applicable vendor for credit, as determined in accordance with GAAP.

Investment ” in any Person by any other Person means any direct or indirect advance, loan or other extension of credit (other than to customers, dealers, licensees, franchisees, suppliers, consultants, directors, officers or employees of any Person in the ordinary course of business) or capital contribution (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others) to, or any purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by, such Person. For purposes of the definition of “Unrestricted Subsidiary” and Section 409 only, ( i ) “Investment” shall include the portion (proportionate to the Company’s equity interest in such Subsidiary) of the Fair Market Value of the net assets of any Subsidiary of the Company at the time that such Subsidiary is designated an Unrestricted Subsidiary, provided that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company shall be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to ( x ) the Company’s “Investment” in such Subsidiary at the time of such redesignation less ( y ) the portion (proportionate to the Company’s equity interest in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time of such redesignation, and ( ii ) any property transferred to or from an Unrestricted Subsidiary shall be valued at its fair market value (as determined in good faith by the Company) at the time of such transfer and ( iii ) for purposes of Section 409(a)(3)(C) , the amount resulting from the redesignation of any Unrestricted Subsidiary as a Restricted Subsidiary shall be the Fair Market Value of the Investment in such Unrestricted Subsidiary at the time of such redesignation. Guarantees shall not be deemed to be Investments. The amount of any Investment outstanding at any time shall be the original cost of such Investment, reduced (at the Company’s option) by any dividend, distribution, interest payment, return of capital, repayment or other amount or value received in respect of such Investment; provided that to the extent that the amount of Restricted Payments outstanding at any time pursuant to Section 409(a) is so reduced by any portion of any such amount or value that would otherwise be included in the calculation of Consolidated Net Income, such portion of such amount or value shall not be so included for purposes of calculating the amount of Restricted Payments that may be made pursuant to Section 409(a) .

 

22


Investment Grade Rating ” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or any equivalent rating by any other Rating Agency.

Investment Grade Securities ” means ( i ) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (other than Cash Equivalents); ( ii ) debt securities or debt instruments with an Investment Grade Rating, but excluding any debt securities or instruments constituting loans or advances among the Company and its Subsidiaries; ( iii ) investments in any fund that invests exclusively in investments of the type described in clauses (i) and (ii) above, which fund may also hold cash pending investment or distribution; and ( iv ) corresponding instruments in countries other than the United States customarily utilized for high quality investments.

Issue Date ” means the first date on which Initial Notes are issued.

Liabilities ” means, collectively, any and all claims, obligations, liabilities, causes of action, actions, suits, proceedings, investigations, judgments, decrees, losses, damages, fees, costs and expenses (including without limitation interest, penalties and fees and disbursements of attorneys, accountants, investment bankers and other professional advisors), in each case whether incurred, arising or existing with respect to third parties or otherwise at any time or from time to time.

Lien ” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof).

Limited Condition Acquisition ” means any acquisition by one or more of the Company and its Restricted Subsidiaries of any assets, business or Person or any other Investment permitted by this Indenture whose consummation is not conditioned on the availability of, or on obtaining, third party financing.

Management Advances ” means ( 1 ) loans or advances made to directors, management members, officers, employees or consultants of any Parent, the Company or any Restricted Subsidiary or to Related Physicians ( x ) in respect of travel, entertainment or moving related expenses incurred in the ordinary course of business, ( y ) in respect of moving related expenses incurred in connection with any closing or consolidation of any facility, or ( z ) in the ordinary course of business and (in the case of this clause (z)) not exceeding $25.0 million in the aggregate outstanding at any time, ( 2 ) promissory notes of Management Investors acquired in connection with the issuance of Management Stock to such Management Investors, ( 3 ) Management Guarantees, or ( 4 ) other Guarantees of borrowings by Management Investors in connection with the purchase of Management Stock, which Guarantees are permitted under Section 407 .

Management Guarantees ” means guarantees ( x ) of up to an aggregate principal amount outstanding at any time of $50.0 million of borrowings by Management Investors in

 

23


connection with their purchase of Management Stock or ( y ) made on behalf of, or in respect of loans or advances made to, directors, officers or employees of any Parent, the Company or any Restricted Subsidiary or to any Related Physicians ( 1 ) in respect of travel, entertainment and moving related expenses incurred in the ordinary course of business, or ( 2 ) in the ordinary course of business and (in the case of this clause (2)) not exceeding $25.0 million in the aggregate outstanding at any time.

Management Indebtedness ” means Indebtedness Incurred to ( a ) any Person other than a Management Investor of up to an aggregate principal amount outstanding at any time of $50.0 million, and ( b ) any Management Investor, in each case, to finance the repurchase or other acquisition of Capital Stock of the Company, any Restricted Subsidiary or any Parent (including any options, warrants or other rights in respect thereof) from any Management Investor, which repurchase or other acquisition of Capital Stock is permitted by Section 409 .

Management Investors ” means the management members, officers, directors, employees and other members of the management of any Parent, the Company or any of their respective Subsidiaries, and Related Physicians, or family members or relatives of any of the foregoing, or trusts, partnerships or limited liability companies for the benefit of any of the foregoing, or any of their heirs, executors, successors and legal representatives, who at any date beneficially own or have the right to acquire, directly or indirectly, Capital Stock of the Company, any Restricted Subsidiary or any Parent.

Management Stock ” means Capital Stock of the Company, any Restricted Subsidiary or any Parent (including any options, warrants or other rights in respect thereof) held by any of the Management Investors.

Mandatory Redemption Event ” shall have the meaning assigned thereto in the Notes Supplemental Indenture establishing the series of Initial Notes.

Medicaid ” shall have the meaning assigned thereto in the Senior ABL Agreement, as in effect on the Issue Date.

Medicare ” shall have the meaning assigned thereto in the Senior ABL Agreement, as in effect on the Issue Date.

Mergers ” means the Mergers (as defined in the Merger Agreement) and all other transactions relating to any of the foregoing (including payment of fees and expenses related thereto).

Merger Agreement ” means that certain Agreement and Plan of Merger among Envision Healthcare Holdings, Inc., AmSurg Corp., a Tennessee corporation, and the Company, pursuant to which AmSurg Corp. and Envision Healthcare Holdings, Inc. will combine in an all stock merger of equals.

Merger Date ” means the date the Mergers are consummated.

 

24


Minority Business ” means any business unit of the Company that represents less than 50.0% of the Consolidated EBITDA of the Company and its Restricted Subsidiaries for and as of the end of the last four fiscal quarters for which financial statements have been delivered pursuant to Section 405 .

Minority Business Assets ” means the assets of the Company and its Subsidiaries, including Capital Stock of Subsidiaries, that relate to or form part of a Minority Business.

Minority Business Disposition ” means ( i ) any sale or other disposition of Capital Stock of any Minority Business Subsidiary (whether by issuance or sale of Capital Stock, merger, or otherwise) to one or more Persons (other than the Company or a Restricted Subsidiary) in any transaction or series of related transactions following the consummation of which such Minority Business Subsidiary is no longer a Restricted Subsidiary of the Company (excluding any Minority Business Offering) or ( ii ) any sale or other disposition of any assets of any Minority Business Subsidiary, including all or substantially all of the assets of any Minority Business Subsidiary, to one or more Persons (other than the Company or a Restricted Subsidiary) in any transaction or series of related transactions.

Minority Business Disposition Condition ” means at any date of determination after giving effect to the Minority Business Disposition or Minority Business Offering, either ( 1 ) the Company could Incur at least $1.00 of Indebtedness pursuant to Section 407(a) or ( 2 ) the Consolidated Coverage Ratio of the Company would equal or exceed the Consolidated Coverage Ratio of the Company immediately prior to giving effect thereto.

Minority Business Offering ” means a public offering of Capital Stock of any Minority Business Subsidiary pursuant to a registration statement filed with the SEC.

Minority Business Subsidiary ” means any of the Company’s Subsidiaries and successors in interest thereto to the extent any of such Subsidiaries form part of the relevant Minority Business.

Moody’s ” means Moody’s Investors Service, Inc., and its successors.

Municipal Contract Lien ” means any Lien incurred in connection with any of the Company’s or its Subsidiaries’ contracts with Governmental Authorities, including municipalities, providing for emergency 911 ambulance services.

Net Available Cash ” from an Asset Disposition means an amount equal to the cash payments received (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise, but only as and when received, but excluding any other consideration received in the form of assumption by the acquiring Person of Indebtedness or other obligations relating to the properties or assets that are the subject of such Asset Disposition or received in any other non-cash form) therefrom, in each case net of ( i ) all legal, title and recording tax expenses, commissions and other fees and expenses incurred, and all federal, state, provincial, foreign and local taxes required to be paid or

 

25


to be accrued as a liability under GAAP, in each case as a consequence of, or in respect of, such Asset Disposition (including as a consequence of any transfer of funds in connection with the application thereof in accordance with Section 411 ), ( ii ) all payments made, and all installment payments required to be made, on any Indebtedness ( x ) that is secured by any assets subject to such Asset Disposition, in accordance with the terms of any Lien upon such assets, or ( y ) that must by its terms, or in order to obtain a necessary consent to such Asset Disposition, or by applicable law, be repaid out of the proceeds from such Asset Disposition, including but not limited to any payments required to be made to increase borrowing availability under any revolving credit facility, ( iii ) all distributions and other payments required to be made to minority interest holders in Subsidiaries or joint ventures as a result of such Asset Disposition, or to any other Person (other than the Company or a Restricted Subsidiary) owning a beneficial interest in the assets disposed of in such Asset Disposition, ( iv ) any liabilities or obligations associated with the assets disposed of in such Asset Disposition and retained, indemnified or insured by the Company or any Restricted Subsidiary after such Asset Disposition, including without limitation pension and other post-employment benefit liabilities, liabilities related to environmental matters, and liabilities relating to any indemnification obligations associated with such Asset Disposition, and ( v ) the amount of any purchase price or similar adjustment ( x ) claimed by any Person to be owed by the Company or any Restricted Subsidiary, until such time as such claim shall have been settled or otherwise finally resolved, or ( y ) paid or payable by the Company or any Restricted Subsidiary, in either case in respect of such Asset Disposition.

Net Cash Proceeds ” means, with respect to any issuance or sale of any securities of the Company or any Subsidiary by the Company or any Subsidiary, or any capital contribution, means the cash proceeds of such issuance, sale, contribution or Incurrence net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and other fees actually incurred in connection with such issuance, sale, contribution or Incurrence and net of all taxes paid or payable as a result, or in respect, thereof.

Non-U.S. Person ” means a Person who is not a U.S. person, as defined in Regulation S.

Notes ” means the Initial Notes, any Additional Notes and any notes issued in respect thereof pursuant to Section 304 , 305 , 306 , 312(d) , 312(e) or 1008 .

Notes Supplemental Indenture ” means a supplemental indenture pursuant to which the Company issues Notes in accordance with Section 301 , which may be substantially in the form attached hereto as Exhibit G , or in such other form as the Company may determine in accordance with Section 301 .

Obligations ” means, with respect to any Indebtedness, any principal, premium (if any), interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company or any Restricted Subsidiary whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, Guarantees of such Indebtedness (or of Obligations in respect thereof), other monetary obligations of any nature and all other amounts payable thereunder or in respect thereof.

 

26


Offering Memorandum ” means the confidential Offering Memorandum of the Company, dated November 16, 2016, relating to the offering of the Initial Notes.

Officer ” means, with respect to the Company or any other obligor upon the Notes, the Chairman of the Board, the President, the Chief Executive Officer, the Chief Financial Officer, any Vice President, the Controller, the Treasurer or the Secretary ( a ) of such Person or ( b ) if such Person is owned or managed by a single entity, of such entity (or any other individual designated as an “Officer” for the purposes of this Indenture by the Board of Directors).

Officer’s Certificate ” means, with respect to the Company or any other obligor upon the Notes, a certificate signed by one Officer of such Person. Unless otherwise specified, any requirement to provide an Officer’s Certificate hereunder shall mean an Officer’s Certificate of the Company.

Operating Entity ” shall mean a Person ( i ) that is an ambulatory surgery center, ( ii ) as to which the Company or any Restricted Subsidiary or any Hospital Joint Venture owns more than 50% of the outstanding Capital Stock and as to which a Person other than the Company or a Restricted Subsidiary or a Hospital Joint Venture has a noncontrolling or minority ownership interest and ( iii ) that is not subject to any contractual obligation that limits the ability of such Person to pay dividends or make any other distribution on any of such Person’s Capital Stock owned by the Company or any Restricted Subsidiary or any Hospital Joint Venture, other than restrictions comparable to those described in Section 410 (except transactions described in Section 410(1) , Section 410(4)(G) , Section 410(5) or Section 410(6) ).

Opinion of Counsel ” means a written opinion from legal counsel who is reasonably acceptable to the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

Outstanding ” or “ outstanding ,” when used with respect to Notes means, as of the date of determination, all Notes theretofore authenticated and delivered under this Indenture, except:

(i) Notes theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

(ii) Notes for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent in trust for the Holders of such Notes, provided that, if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor reasonably satisfactory to the Trustee has been made; and

 

27


(iii) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to this Indenture.

A Note does not cease to be Outstanding because the Company or any Affiliate of the Company holds the Note (and such Note shall be deemed to be outstanding for purposes of this Indenture), provided that in determining whether the Holders of the requisite amount of Outstanding Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by the Company or any Affiliate of the Company shall be disregarded and deemed not to be Outstanding, except that, for the purpose of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Notes which a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the reasonable satisfaction of the Trustee the pledgee’s right to act with respect to such Notes and that the pledgee is not the Company or an Affiliate of the Company.

Parent ” means any Other Parent, and any other Person that is a Subsidiary of any Other Parent and of which the Company is a Subsidiary. As used herein, “ Other Parent ” means a Person of which the Company becomes a Subsidiary after the Issue Date that is designated by the Company as an “Other Parent,” provided that either ( x ) immediately after the Company first becomes a Subsidiary of such Person, more than 50.0% of the Voting Stock of such Person shall be held by one or more Persons that held more than 50.0% of the Voting Stock of the Company or a Parent of the Company immediately prior to the Company first becoming such Subsidiary or ( y ) such Person shall be deemed not to be an Other Parent for the purpose of determining whether a Change of Control shall have occurred by reason of the Company first becoming a Subsidiary of such Person. The Company shall not in any event be deemed to be a “ Parent ”,

Parent Expenses ” means ( i ) costs (including all professional fees and expenses) incurred by any Parent in connection with maintaining its existence or in connection with its reporting obligations under, or in connection with compliance with, applicable laws or applicable rules of any governmental, regulatory or self-regulatory body or stock exchange, this Indenture or any other agreement or instrument relating to Indebtedness of the Company or any Restricted Subsidiary, including in respect of any reports filed with respect to the Securities Act, the Exchange Act or the respective rules and regulations promulgated thereunder, ( ii ) expenses incurred by any Parent in connection with the acquisition, development, maintenance, ownership, prosecution, protection and defense of its intellectual property and associated rights (including but not limited to trademarks, service marks, trade names, trade dress, patents, copyrights and similar rights, including registrations and registration or renewal applications in respect thereof; inventions, processes, designs, formulae, trade secrets, know-how, confidential information, computer software, data and documentation, and any other intellectual property rights; and licenses of any of the foregoing) to the extent such intellectual property and associated rights relate to the business or businesses of the Company or any Subsidiary thereof, ( iii ) indemnification obligations of any Parent owing to directors, officers, employees or other Persons under its charter or by-laws or pursuant to written agreements with or for the benefit of

 

28


any such Person, or obligations in respect of director and officer insurance (including premiums therefor), ( iv ) other administrative and operational expenses of any Parent incurred in the ordinary course of business, and ( v ) fees and expenses incurred by any Parent in connection with any offering of Capital Stock or Indebtedness, ( w ) which offering is not completed, or ( x ) where the net proceeds of such offering are intended to be received by or contributed or loaned to the Company or a Restricted Subsidiary, or ( y ) in a prorated amount of such expenses in proportion to the amount of such net proceeds intended to be so received, contributed or loaned, or ( z ) otherwise on an interim basis prior to completion of such offering so long as any Parent shall cause the amount of such expenses to be repaid to the Company or the relevant Restricted Subsidiary out of the proceeds of such offering promptly if completed.

Patient Receivables ” means, with respect to any Restricted Subsidiary, the patient accounts receivable of such Restricted Subsidiary existing or hereafter created, any and all rights to receive payments due on such accounts receivable from any Governmental Authority payor under or in respect of such accounts receivable (including, without limitation, Medicare, Medicaid, CHAMPVA and TRICARE), and all proceeds of or in any way derived, whether directly or indirectly, from any of the foregoing (including, without limitation, all interest, finance charges and other amounts payable by any Governmental Authority, directly or indirectly, in respect thereof).

Paying Agent ” means any Person authorized by the Company to pay the principal of (and premium, if any) or interest on any Notes on behalf of the Company; provided that neither the Company nor any of its Affiliates shall act as Paying Agent for purposes of Section 1103 or Section 1205 . The Trustee will initially act as Paying Agent for the Notes.

Permitted Investment ” means an Investment by the Company or any Restricted Subsidiary in, or consisting of, any of the following:

(i) a Restricted Subsidiary, the Company, or a Person that will, upon the making of such Investment, become a Restricted Subsidiary (and any Investment held by such Person that was not acquired by such Person in contemplation of so becoming a Restricted Subsidiary);

(ii) another Person if as a result of such Investment such other Person is merged or consolidated with or into, or transfers or conveys all or substantially all its assets to, or is liquidated into, the Company or a Restricted Subsidiary (and, in each case, any Investment held by such other Person that was not acquired by such Person in contemplation of such merger, consolidation or transfer);

(iii) Temporary Cash Investments, Investment Grade Securities or Cash Equivalents;

(iv) receivables owing to the Company or any Restricted Subsidiary, if created or acquired in the ordinary course of business;

 

29


(v) any securities or other Investments received as consideration in, or retained in connection with, sales or other dispositions of property or assets, including Asset Dispositions made in compliance with Section 411 ;

(vi) securities or other Investments received in settlement of debts created in the ordinary course of business and owing to, or of other claims asserted by, the Company or any Restricted Subsidiary, or as a result of foreclosure, perfection or enforcement of any Lien, or in satisfaction of judgments, including in connection with any bankruptcy proceeding or other reorganization of another Person;

(vii) Investments in existence or made pursuant to legally binding written commitments in existence on the Issue Date;

(viii) Currency Agreements, Interest Rate Agreements, Commodities Agreements and related Hedging Obligations, which obligations are Incurred in compliance with Section 407 ;

(ix) pledges or deposits ( x ) with respect to leases or utilities provided to third parties in the ordinary course of business or ( y ) otherwise described in the definition of “Permitted Liens” or made in connection with Liens permitted under Section 413 ;

(x) ( 1 ) Investments in or by any Special Purpose Subsidiary, or in connection with a Financing Disposition by, to, in or in favor of any Special Purpose Entity, including Investments of funds held in accounts permitted or required by the arrangements governing such Financing Disposition or any related Indebtedness, or ( 2 ) any promissory note issued by the Company, or any Parent, provided that if such Parent received cash from the relevant Special Purpose Entity in exchange for such note, an equal cash amount is contributed by any Parent to the Company;

(xi) bonds secured by assets leased to and operated by the Company or any Restricted Subsidiary that were issued in connection with the financing of such assets so long as the Company or any Restricted Subsidiary may obtain title to such assets at any time by paying a nominal fee, canceling such bonds and terminating the transaction;

(xii) the Notes;

(xiii) any Investment to the extent made using Capital Stock of the Company (other than Disqualified Stock) or Capital Stock of any Parent, as consideration;

(xiv) Management Advances;

(xv) Investments in Related Businesses in an aggregate amount outstanding at any time not to exceed an amount equal to the greater of $550.0 million and 42.5% of Four Quarter Consolidated EBITDA;

 

30


(xvi) any transaction to the extent it constitutes an Investment that is permitted by and made in accordance with Section 412(b) (except transactions described in clauses (i), (ii)(4), (iii), (v), (vi), (ix) and (xi) of Section 412(b)) , including any Investment pursuant to any transaction described in clause (ii) of such paragraph (whether or not any Person party thereto is at any time an Affiliate of the Company);

(xvii) any Investment by any Captive Insurance Subsidiary in connection with the provision of insurance to the Company or any of its Subsidiaries, which Investment is made in the ordinary course of business of such Captive Insurance Subsidiary, or by reason of applicable law, rule, regulation or order, or that is required or approved by any regulatory authority having jurisdiction over such Captive Insurance Subsidiary or its business, as applicable;

(xviii) other Investments in an aggregate amount outstanding at any time not to exceed an amount equal to the greater of $550.0 million and 42.5% of Four Quarter Consolidated EBITDA;

(xix) loans and advances to and other Investments in Related Corporations ( a ) made on a basis consistent with past practices on or prior to the Issue Date or made in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts, including obtaining letters of credit on behalf of Related Corporations or ( b ) in connection with the acquisition of, or Investment in, any Person that becomes a Related Corporation (promptly following such acquisition or investment), in any such case by the Related Corporation in which such loans, advances or other Investments were made in or to on a basis consistent with past practices on or prior to the Issue Date or made in the ordinary course of business, including the entry into applicable Related Corporation Contracts in connection therewith; and

(xx) Investments in Hospital Joint Ventures to the extent such Investments, when taken together with all other Investments made pursuant to this clause (xx) and outstanding on the date such Investment was made (measured on the date such Investments are made and without giving effect to subsequent changes in value) in an amount not to exceed at any one time outstanding 100% of Four Quarter Consolidated EBITDA.

If any Investment pursuant to clause (xv) or (xviii) above, or Section 409(b)(vi) , as applicable, is made in any Person that is not a Restricted Subsidiary and such Person thereafter ( A ) becomes a Restricted Subsidiary or ( B ) is merged or consolidated into, or transfers or conveys all or substantially all of its assets to, or is liquidated into, the Company or a Restricted Subsidiary, then such Investment shall thereafter be deemed to have been made pursuant to clause (i) or (ii) above, respectively, and not clause (xv) or (xviii) above, or Section 409(b)(vi) , as applicable.

 

31


Permitted Liens ” means:

(a) Liens for taxes, assessments or other governmental charges not yet delinquent or the nonpayment of which in the aggregate would not reasonably be expected to have a material adverse effect on the Company and its Restricted Subsidiaries or that are being contested in good faith and by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of the Company or a Subsidiary thereof, as the case may be, in accordance with GAAP;

(b) Liens with respect to outstanding motor vehicle fines and carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business in respect of obligations that are not overdue for a period of more than 60 days or that are bonded or that are being contested in good faith and by appropriate proceedings;

(c) pledges, deposits or Liens in connection with workers compensation, professional liability insurance, insurance programs, unemployment insurance and other social security and other similar legislation or other insurance-related obligations (including, without limitation, pledges or deposits securing liability to insurance carriers under insurance or self-insurance arrangements);

(d) pledges, deposits or Liens to secure the performance of bids, tenders, trade, government or other contracts (other than for borrowed money), obligations for utilities, leases, licenses, statutory obligations, completion guarantees, surety, judgment, appeal or performance bonds, other similar bonds, instruments or obligations, and other obligations of a like nature incurred in the ordinary course of business;

(e) easements (including reciprocal easement agreements), rights-of-way, building, zoning and similar restrictions, utility agreements, covenants, reservations, restrictions, encroachments, charges, and other similar encumbrances or title defects incurred, or leases or subleases granted to others, in the ordinary course of business, which do not in the aggregate materially interfere with the ordinary conduct of the business of the Company and its Subsidiaries, taken as a whole;

(f) Liens existing on, or provided for under written arrangements existing on, the Issue Date, or (in the case of any such Liens securing Indebtedness of the Company or any of its Subsidiaries existing or arising under written arrangements existing on the Issue Date) securing any Refinancing Indebtedness in respect of such Indebtedness (other than Indebtedness Incurred under Section 407(b)(i) and secured under clause (k)(1) of this definition) so long as the Lien securing such Refinancing Indebtedness is limited to all or part of the same property or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or under such written arrangements could secure) the original Indebtedness;

 

32


(g) ( i ) mortgages, liens, security interests, restrictions, encumbrances or any other matters of record that have been placed by any developer, landlord or other third party on property over which the Company or any Restricted Subsidiary of the Company has easement rights or on any leased property and subordination or similar agreements relating thereto and ( ii ) any condemnation or eminent domain proceedings affecting any real property;

(h) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof) consisting of Hedging Obligations, Bank Products Obligations, Purchase Money Obligations or Capitalized Lease Obligations Incurred in compliance with Section 407 ;

(i) Liens arising out of judgments, decrees, orders or awards in respect of which the Company or any Restricted Subsidiary shall in good faith be prosecuting an appeal or proceedings for review, which appeal or proceedings shall not have been finally terminated, or if the period within which such appeal or proceedings may be initiated shall not have expired;

(j) leases, subleases, licenses or sublicenses to or from third parties;

(k) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof) consisting of ( 1 ) Indebtedness Incurred in compliance with Section 407(b)(i) , Section 407(b)(iv) , Section 407(b)(v) , Section 407(b)(vii) , Section 407(b)(viii) , or Section 407(b)(xv) (limited, in the case of Section 407(b)(xv) , to Liens on the property and assets held by such Restricted Subsidiary, partnership or joint venture incurring such Indebtedness) or Section 407(b)(iii) (other than Refinancing Indebtedness Incurred in respect of Indebtedness described in Section 407(a) ), ( 2 ) Credit Facility Indebtedness Incurred in compliance with Section 407(b) , ( 3 ) the Notes, ( 4 ) Indebtedness of any Restricted Subsidiary that is not a Subsidiary Guarantor (limited, in the case of this clause (4), to Liens on any of the property and assets of any Restricted Subsidiary that is not a Subsidiary Guarantor), or ( 5 ) obligations in respect of Management Advances or Management Guarantees; in each case under the foregoing clauses (1) through (5) including Liens securing any Guarantee of any thereof;

(l) Liens existing on property or assets of a Person at the time such Person becomes a Subsidiary of the Company (or at the time the Company or a Restricted Subsidiary acquires such property or assets, including any acquisition by means of a merger or consolidation with or into the Company or any Restricted Subsidiary); provided , however , that such Liens are not created in connection with, or in contemplation of, such other Person becoming such a Subsidiary (or such acquisition of such property or assets), and that such Liens are limited to all or part of the same property or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or, under the written arrangements under which such Liens arose, could secure) the obligations to which such Liens relate; provided , further , that for purposes of this clause (l), if a Person other than the Company is the Successor Company

 

33


with respect thereto, any Subsidiary thereof shall be deemed to become a Subsidiary of the Company, and any property or assets of such Person or any such Subsidiary shall be deemed acquired by the Company or a Restricted Subsidiary, as the case may be, when such Person becomes such Successor Company;

(m) Liens on Capital Stock, Indebtedness or other securities of an Unrestricted Subsidiary that secure Indebtedness or other obligations of such Unrestricted Subsidiary;

(n) any encumbrance or restriction (including, but not limited to, pursuant to put and call agreements or buy/sell arrangements) with respect to Capital Stock of any joint venture or similar arrangement pursuant to any joint venture or similar agreement;

(o) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof) consisting of Refinancing Indebtedness Incurred in respect of any Indebtedness (other than Indebtedness Incurred under Section 407(b)(i) and secured under clause (k)(1) of this definition) secured by, or securing any refinancing, refunding, extension, renewal or replacement (in whole or in part) of any other obligation secured by, any other Permitted Liens; provided that any such new Lien is limited to all or part of the same property or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or, under the written arrangements under which the original Lien arose, could secure) the obligations to which such Liens relate;

(p) Liens ( 1 ) arising by operation of law (or by agreement to the same effect) in the ordinary course of business, including Liens arising under or by reason of the Perishable Agricultural Commodities Act of 1930, as amended from time to time, ( 2 ) on property or assets under construction (and related rights) in favor of a contractor or developer or arising from progress or partial payments by a third party relating to such property or assets, ( 3 ) on receivables (including related rights), ( 4 ) on cash set aside at the time of the Incurrence of any Indebtedness or government securities purchased with such cash, in either case to the extent that such cash or government securities prefund the payment of interest on such Indebtedness and are held in an escrow account or similar arrangement to be applied for such purpose, ( 5 ) securing or arising by reason of any netting or set-off arrangement entered into in the ordinary course of banking or other trading activities (including in connection with purchase orders and other agreements with customers), ( 6 ) in favor of the Company or any Subsidiary (other than Liens on property or assets of the Company or any Subsidiary Guarantor in favor of any Subsidiary that is not a Subsidiary Guarantor), ( 7 ) arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into in the ordinary course of business, ( 8 ) on inventory or other goods and proceeds securing obligations in respect of bankers’ acceptances issued or created to facilitate the purchase, shipment or storage of such inventory or other goods, ( 9 ) relating to pooled deposit or sweep accounts to permit satisfaction of overdraft, cash pooling or similar obligations incurred in the ordinary course of business, ( 10 ) attaching to commodity trading or other brokerage accounts incurred in the ordinary course of business or ( 11 ) arising in connection with repurchase agreements permitted under Section 407 on assets that are the subject of such repurchase agreements;

 

34


(q) other Liens securing Indebtedness or other obligations that in the aggregate do not exceed an amount equal to the greater of $350.0 million and 27.5% of Four Quarter Consolidated EBITDA at the time of Incurrence of such Indebtedness or other obligations;

(r) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof) consisting of Indebtedness Incurred in compliance with Section 407 provided that on the date of the Incurrence of such Indebtedness which is secured by Liens and after giving effect to such Incurrence (or on the date of the initial borrowing of such Indebtedness or entry into the definitive agreement providing the commitment to fund such Indebtedness after giving pro forma effect to the Incurrence of the entire committed amount of such Indebtedness, in which case such committed amount may thereafter be borrowed and reborrowed, in whole or in part, from time to time, without further compliance with this clause), the Consolidated Secured Leverage Ratio shall not exceed 4.00:1.00;

(s) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof) or other obligations of, or in favor of, any Special Purpose Entity, or in connection with a Special Purpose Financing or otherwise Incurred pursuant to Section 407(b)(ix) ;

(t) Retained Rights; and

(u) Municipal Contract Liens.

For purposes of determining compliance with this definition, ( t ) a Lien need not be incurred solely by reference to one category of Permitted Liens described in this definition but may be incurred under any combination of such categories (including in part under one such category and in part under any other such category), ( u ) the principal amount of Indebtedness secured by a Lien under any category of Permitted Liens shall be determined after giving effect to the application of proceeds of any such Indebtedness to refinance any such other Indebtedness, ( v ) in the event that a Lien (or any portion thereof) meets the criteria of one or more of such categories of Permitted Liens, the Company shall, in its sole discretion, classify or reclassify such Lien (or any portion thereof) in any manner that complies with this definition, ( w ) any Lien securing Indebtedness that was permitted to secure such Indebtedness at the time of the Incurrence of such Indebtedness shall also be permitted to secure any increase in the amount of such Indebtedness in connection with the accrual of interest, the accretion of accreted value, the payment of interest in the form of additional Indebtedness and the payment of dividends on Capital Stock constituting Indebtedness in the form of additional shares of the same class of Capital Stock, ( x ) in the event that a portion of Indebtedness secured by a Lien could be classified as secured in part pursuant to clause (r) above (giving effect to the Incurrence of such portion of such Indebtedness), the Company, in its sole discretion, may classify such portion of

 

35


such Indebtedness (and any Obligations in respect thereof) as having been secured pursuant to clause (r) above and the remainder of the Indebtedness as having been secured pursuant to one or more of the other clauses of this definition, ( y ) if any Liens securing Indebtedness are Incurred to refinance Liens securing Indebtedness initially Incurred (or, to refinance Liens Incurred to refinance Liens initially Incurred) in reliance on a basket measured by reference to a percentage of Four Quarter Consolidated EBITDA at the time of Incurrence of such Indebtedness or other obligations, and is refinanced by any Indebtedness or other obligation secured by any Lien incurred by reference to such category of Permitted Liens, and such refinancing would cause the percentage of Four Quarter Consolidated EBITDA restriction to be exceeded if calculated based on the Four Quarter Consolidated EBITDA on the date of such refinancing, such percentage of Four Quarter Consolidated EBITDA restriction shall not be deemed to be exceeded (and such refinancing Lien shall be deemed permitted) so long as the principal amount of such Indebtedness secured by such Liens does not exceed the principal amount of such Indebtedness secured by such Liens being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing and ( z ) if any Indebtedness or other obligation is secured by any Lien outstanding under any category of Permitted Liens measured by reference to a dollar amount, and is refinanced by any Indebtedness or other obligation secured by any Lien Incurred by reference to such category of Permitted Liens, and such refinancing would cause such dollar amount to be exceeded, such dollar amount shall not be deemed to be exceeded (and such refinancing Lien shall be deemed permitted) so long as the principal amount of such refinancing Indebtedness or other obligation does not exceed an amount equal to the principal amount of such Indebtedness being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing.

Person ” means any individual, corporation, partnership, joint venture, association, joint stock company, limited liability company, professional corporation, professional association, service corporation, personal service corporation, other professional group, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity.

Place of Payment ” means a city or any political subdivision thereof in which any Paying Agent appointed pursuant to Article III is located.

Predecessor Notes ” of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purposes of this definition, any Note authenticated and delivered under Section 306 in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

Preferred Stock ” as applied to the Capital Stock of any corporation or company means Capital Stock of any class or classes (however designated) that by its terms is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation or company, over Capital Stock of any other class of such corporation or company.

 

36


Purchase Agreement ” means the Purchase Agreement, dated as of November 16, 2016, between the Company and the initial purchasers of the Notes, as the same may be amended, supplemented, waived or otherwise modified from time to time.

Purchase Money Obligations ” means any Indebtedness Incurred to finance or refinance the acquisition, leasing, construction or improvement of property (real or personal) or assets, and whether acquired through the direct acquisition of such property or assets or the acquisition of the Capital Stock of any Person owning such property or assets, or otherwise.

QIB ” means a “qualified institutional buyer,” as that term is defined in Rule 144A.

Rating Agency ” means Moody’s or S&P or, if Moody’s or S&P or both shall not make a rating on the Notes publicly available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company which shall be substituted for Moody’s or S&P or both, as the case may be.

Receivable ” means a right to receive payment pursuant to an arrangement with another Person pursuant to which such other Person is obligated to pay, as determined in accordance with GAAP.

Redemption Amount ” means with respect to any series of Notes, “Redemption Amount” as such term is defined in the Notes Supplemental Indenture establishing such series of Notes.

Redemption Date ,” when used with respect to any Note to be redeemed or purchased, means the date fixed for such redemption or purchase by or pursuant to this Indenture and the Notes.

Redemption Price ” means with respect to any series of Notes, “Redemption Price” as such term is defined in the Notes Supplemental Indenture establishing such series of Notes.

Reference Date ” means May 25, 2011.

refinance ” means refinance, refund, replace, renew, repay, modify, restate, defer, substitute, supplement, reissue, resell or extend (including pursuant to any defeasance or discharge mechanism); and the terms “ refinances ,” “ refinanced ” and “ refinancing ” as used for any purpose in this Indenture shall have a correlative meaning.

Refinancing Indebtedness ” means Indebtedness that is Incurred to refinance any Indebtedness (or unutilized commitment in respect of Indebtedness) existing on the Issue Date or

 

37


Incurred (or established) in compliance with this Indenture (including Indebtedness of the Company that refinances Indebtedness of any Restricted Subsidiary (to the extent permitted in this Indenture) and Indebtedness of any Restricted Subsidiary that refinances Indebtedness of the Company or of another Restricted Subsidiary) including Indebtedness that refinances Refinancing Indebtedness, and Indebtedness Incurred pursuant to a commitment that refinances any Indebtedness or unutilized commitment; provided , that ( 1 ) if the Indebtedness being refinanced is Subordinated Obligations or Guarantor Subordinated Obligations, the Refinancing Indebtedness has a final Stated Maturity at the time such Refinancing Indebtedness is Incurred that is equal to or greater than the final Stated Maturity of the Indebtedness being refinanced (or if shorter, the Notes), ( 2 ) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with original issue discount, an aggregate issue price) that is equal to or less than the sum of ( x ) the aggregate principal amount then outstanding of the Indebtedness being refinanced, plus ( y ) an amount equal to any unutilized commitment relating to the Indebtedness being refinanced or otherwise then outstanding under a Credit Facility or other financing arrangement being refinanced to the extent the unutilized commitment being refinanced could be drawn in compliance with Section 407 immediately prior to such refinancing, plus ( z ) fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such Refinancing Indebtedness and ( 3 ) Refinancing Indebtedness shall not include ( x ) Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor that refinances Indebtedness of the Company, or a Subsidiary Guarantor that could not have been initially Incurred by such Restricted Subsidiary pursuant to Section 407 or ( y ) Indebtedness of the Company or a Restricted Subsidiary that refinances Indebtedness of an Unrestricted Subsidiary.

Regular Record Date ” means with respect to any series of Notes, “Regular Record Date” as such term is defined in the Notes Supplemental Indenture establishing such series of Notes.

Regulation S ” means Regulation S under the Securities Act.

Regulation S Certificate ” means a certificate substantially in the form attached hereto as Exhibit D .

Related Billing Entity ” means any Person whose only substantial activity is invoicing and collecting payments for professional medical services on behalf of a Related Professional Corporation or a Subsidiary of the Company.

Related Business ” means those businesses in which the Company or any of its Subsidiaries is engaged on the Issue Date, or that are similar, related, complementary, incidental or ancillary thereto or extensions, developments or expansions thereof.

Related Corporation ” means ( i ) a Related Professional Corporation, ( ii ) a Related Billing Entity, ( iii ) a Related PC JV, ( iv ) a Hospital Joint Venture or ( v ) an Operating Entity.

 

38


Related Corporation Contracts ” means management, practice support, consulting and similar agreements, entered into on a basis consistent with past practices on or prior to the Issue Date or in the ordinary course of business, with Related Corporations.

Related PC JV ” means any Person that is jointly owned by ( i ) the Company and/or one or more of its Restricted Subsidiaries and ( ii ) a healthcare system or healthcare facility operator, in each case to whom a Subsidiary of the Company or another Related Professional Corporation (other than another Related PC JV) provides management services pursuant to a management services, practice support or similar agreement.

Related Physicians ” means physicians or independent contractors that own, are employed by, or are under contract with, a Related Professional Corporation or a Subsidiary of the Company.

Related Professional Corporation ” means any Person that is owned by one or more physicians and/or independent contractor physicians, in each case to whom a Subsidiary of the Company or another Related Professional Corporation provides management services pursuant to a management services, practice support or similar agreement.

Related Taxes ” means ( x ) any taxes, charges or assessments, including but not limited to sales, use, transfer, rental, ad valorem , value added, stamp, property, consumption, franchise, license, capital, net worth, gross receipts, excise, occupancy, intangibles or similar taxes, charges or assessments (other than federal, state or local taxes measured by income and federal, state or local withholding imposed by any government or other taxing authority on payments made by any Parent other than to another Parent), required to be paid by any Parent by virtue of its being incorporated or having Capital Stock outstanding (but not by virtue of owning stock or other equity interests of any corporation or other entity other than the Company, any of its Subsidiaries or any Parent), or being a holding company parent of the Company, any of its Subsidiaries or any Parent or receiving dividends from or other distributions in respect of the Capital Stock of the Company, any of its Subsidiaries or any Parent, or having guaranteed any obligations of the Company or any Subsidiary thereof, or having made any payment in respect of any of the items for which the Company or any of its Subsidiaries is permitted to make payments to any Parent pursuant to Section 409 , or acquiring, developing, maintaining, owning, prosecuting, protecting or defending its intellectual property and associated rights (including but not limited to receiving or paying royalties for the use thereof) relating to the business or businesses of the Company or any Subsidiary thereof, ( y ) any taxes attributable to any taxable period (or portion thereof) ending on or prior to the Issue Date, or to the consummation of any of the Transactions, or to any Parent’s receipt of (or entitlement to) any payment in connection with the Transactions, including any payment received after the Issue Date pursuant to any agreement related to the Transactions or ( z ) any other federal, state, foreign, provincial or local taxes measured by income for which any Parent is liable up to an amount not to exceed, with respect to federal taxes, the amount of any such taxes that the Company and its Subsidiaries would have been required to pay on a separate company basis, or on a consolidated basis as if the Company had filed a consolidated return on behalf of an affiliated group (as defined in Section 1504 of the

 

39


Code) of which it were the common parent, or with respect to state and local taxes, the amount of any such taxes that the Company and its Subsidiaries would have been required to pay on a separate company basis, or on a consolidated, combined, unitary or affiliated basis as if the Company had filed a consolidated, combined, unitary or affiliated return on behalf of an affiliated group (as defined in the applicable state or local tax laws for filing such return) consisting only of the Company and its Subsidiaries. Taxes include all interest, penalties and additions relating thereto.

Resale Restriction Termination Date ” means, with respect to any Note, the date that is one year (or such other period as may hereafter be provided under Rule 144 under the Securities Act or any successor provision thereto as permitting the resale by non-affiliates of Restricted Securities without restriction) after the later of the original issue date in respect of such Note and the last date on which the Company or any Affiliate of the Company was the owner of such Note (or any Predecessor Note thereto).

Responsible Officer ” when used with respect to the Trustee means the chairman or vice-chairman of the board of directors, the chairman or vice-chairman of the executive committee of the board of directors, the president, any vice president or assistant vice president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the cashier, any assistant cashier, any trust officer or assistant trust officer, the controller and any assistant controller or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

Restricted Payment Transaction ” means any Restricted Payment permitted pursuant to Section 409 , any Permitted Payment, any Permitted Investment, or any transaction specifically excluded from the definition of the term “Restricted Payment” (including pursuant to the exception contained in clause (i) of such definition and the parenthetical exclusions contained in clauses (ii) and (iii) of such definition).

Restricted Period ” means the 40-day distribution compliance period as defined in Regulation S.

Restricted Security ” has the meaning assigned to such term in Rule 144(a)(3) under the Securities Act; provided , however , that the Trustee shall be entitled to receive, at its request, and conclusively rely on an Opinion of Counsel with respect to whether any Note constitutes a Restricted Security.

Restricted Subsidiary ” means any Subsidiary of the Company other than an Unrestricted Subsidiary. For the purposes of the Notes and the Indenture, and the interpretation thereof, for all periods prior to the consummation of the Mergers, the Subsidiaries of AmSurg Corp. and Envision Healthcare Holdings, Inc. that will be Subsidiaries of the Company upon consummation of the Mergers will be deemed to have been Restricted Subsidiaries of the Company.

 

40


Retained Rights ” means, with respect to any Patient Receivable owing from any Governmental Authority, the rights of any payee granted by applicable law and regulation over such Patient Receivable, which in the absence of a court order in the manner expressly contemplated by applicable state and federal law are subject to restrictions on assignment, pledging or are otherwise encumbered by applicable law or regulation, including, without limitation, and as applicable, restrictions on the collection thereof and discretion over the transfer thereof, to any party and restrictions on any such party’s ability to enforce the claim giving rise to such Patient Receivable against such Governmental Authority.

Rule 144A ” means Rule 144A under the Securities Act.

S&P ” means Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., and its successors.

SEC ” means the United States Securities and Exchange Commission.

Securities Act ” means the Securities Act of 1933, as amended from time to time.

Senior ABL Agreement ” means the Credit Agreement, dated as of the Reference Date, among the Company, the other borrowers party thereto from time to time, the lenders and other financial institutions party thereto from time to time, and Deutsche Bank AG New York Branch, as administrative agent and collateral agent thereunder, as such agreement may be amended, supplemented, waived or otherwise modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original administrative agent and lenders or other agents and lenders or otherwise, and whether provided under the original Senior ABL Agreement or one or more other credit agreements or otherwise, unless such agreement, instrument or other document expressly provides that it is not intended to be and is not a Senior ABL Agreement). Any reference to the Senior ABL Agreement hereunder shall be deemed a reference to each Senior ABL Agreement then in existence.

Senior ABL Facility ” means the collective reference to the Senior Credit Agreement, any Loan Documents (as defined therein), any notes and letters of credit issued pursuant thereto and any guarantee and collateral agreement, patent and trademark security agreement, mortgages, letter of credit applications and other guarantees, pledge agreements, security agreements and collateral documents, and other instruments and documents, executed and delivered pursuant to or in connection with any of the foregoing, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time, or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original agent and lenders or other agents and lenders or otherwise, and whether provided under the original Senior ABL Agreement or one or more other credit agreements, indentures (including this Indenture) or financing agreements or otherwise, unless such agreement, instrument or document expressly provides that it is not intended to be and is not a Senior ABL Facility). Without limiting the generality of the foregoing, the term “Senior ABL Facility” shall include any agreement ( i ) changing the maturity

 

41


of any Indebtedness Incurred thereunder or contemplated thereby, ( ii ) adding Subsidiaries of the Company as additional borrowers or guarantors thereunder, ( iii ) increasing the amount of Indebtedness Incurred thereunder or available to be borrowed thereunder or ( iv ) otherwise altering the terms and conditions thereof.

Senior Credit Agreements ” means, collectively, the Senior ABL Agreement and the Senior Term Facility.

Senior Credit Facilities ” means, collectively, the Senior ABL Facility and the Senior Term Facility.

Senior Indebtedness ” means any Indebtedness of the Company or any Restricted Subsidiary other than, ( x ) in the case of the Company, Subordinated Obligations and ( y ) in the case of any Subsidiary Guarantor, Guarantor Subordinated Obligations.

Senior Term Agreement ” means the Credit Agreement, dated as of the Reference Date, among the Company, the lenders and other financial institutions party thereto from time to time, and Deutsche Bank AG New York Branch, as administrative agent, as such agreement may be amended, supplemented, waived or otherwise modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original administrative agent and lenders or other agents and lenders or otherwise, and whether provided under the original Senior Term Agreement or one or more other credit agreements or otherwise, unless such agreement, instrument or document expressly provides that it is not intended to be and is not a Senior Term Agreement). Any reference to the Senior Term Agreement hereunder shall be deemed a reference to each Senior Term Agreement then in existence.

Senior Term Facility ” means the collective reference to the Senior Term Agreement, any Loan Documents (as defined therein), any notes and letters of credit issued pursuant thereto and any guarantee and collateral agreement, patent and trademark security agreement, mortgages, letter of credit applications and other guarantees, pledge agreements, security agreements and collateral documents, and other instruments and documents, executed and delivered pursuant to or in connection with any of the foregoing, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time, or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original agent and lenders or other agents and lenders or otherwise, and whether provided under the original Senior Term Agreement or one or more other credit agreements, indentures (including this Indenture) or financing agreements or otherwise, unless such agreement, instrument or document expressly provides that it is not intended to be and is not a Senior Term Facility). Without limiting the generality of the foregoing, the term “Senior Term Facility” shall include any agreement ( i ) changing the maturity of any Indebtedness Incurred thereunder or contemplated thereby, ( ii ) adding Subsidiaries of the Company as additional borrowers or guarantors thereunder, ( iii ) increasing the amount of Indebtedness Incurred thereunder or available to be borrowed thereunder or ( iv ) otherwise altering the terms and conditions thereof.

 

42


Significant Subsidiary ” means any Restricted Subsidiary that would be a “significant subsidiary” of the Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the SEC, as such Regulation is in effect on the Issue Date.

Special Purpose Entity ” means ( x ) any Special Purpose Subsidiary or ( y ) any other Person that is engaged in the business of ( i ) acquiring, selling, collecting, financing or refinancing Receivables, accounts (as defined in the Uniform Commercial Code as in effect in any jurisdiction from time to time), other accounts and/or other receivables, and/or related assets and/or ( ii ) financing or refinancing in respect of Capital Stock of any Special Purpose Subsidiary.

Special Purpose Financing ” means any financing or refinancing of assets consisting of or including Receivables of the Company or any Restricted Subsidiary that have been transferred to a Special Purpose Entity or made subject to a Lien in a Financing Disposition (including any financing or refinancing in respect of Capital Stock of a Special Purpose Subsidiary held by another Special Purpose Subsidiary).

Special Purpose Financing Fees ” means distributions or payments made directly or by means of discounts with respect to any participation interest issued or sold in connection with, and other fees paid to a Person that is not a Restricted Subsidiary in connection with, any Special Purpose Financing.

Special Purpose Financing Undertakings ” means representations, warranties, covenants, indemnities, guarantees of performance and (subject to clause (y) of the proviso below) other agreements and undertakings entered into or provided by the Company or any of its Restricted Subsidiaries that the Company determines in good faith (which determination shall be conclusive) are customary or otherwise necessary or advisable in connection with a Special Purpose Financing or a Financing Disposition; provided that ( x ) it is understood that Special Purpose Financing Undertakings may consist of or include ( i ) reimbursement and other obligations in respect of notes, letters of credit, surety bonds and similar instruments provided for credit enhancement purposes, ( ii ) Hedging Obligations, or other obligations relating to Interest Rate Agreements, Currency Agreements or Commodities Agreements entered into by the Company or any Restricted Subsidiary, in respect of any Special Purpose Financing or Financing Disposition, or ( iii ) any Guarantee in respect of customary recourse obligations (as determined in good faith by the Company, which determination shall be conclusive) in connection with any Special Purpose Financing or Financing Disposition, including in respect of Liabilities in the event of any involuntary case commenced with the collusion of any Special Purpose Subsidiary or any Affiliate thereof, or any voluntary case commenced by any Special Purpose Subsidiary, under any applicable bankruptcy law, and ( y ) subject to the preceding clause (x), any such other agreements and undertakings shall not include any Guarantee of Indebtedness of a Special Purpose Subsidiary by the Company or a Restricted Subsidiary that is not a Special Purpose Subsidiary.

Special Purpose Subsidiary ” means any Subsidiary of the Company that ( a ) is engaged solely in ( x ) the business of ( i ) acquiring, selling, collecting, financing or refinancing

 

43


Receivables, accounts (as defined in the Uniform Commercial Code as in effect in any jurisdiction from time to time) and other accounts and receivables (including any thereof constituting or evidenced by chattel paper, instruments or general intangibles), all proceeds thereof and all rights (contractual and other), collateral and other assets relating thereto, and/or ( ii ) owning or holding Capital Stock of any Special Purpose Subsidiary and/or engaging in any financing or refinancing in respect thereof, and ( y ) any business or activities incidental or related to such business, and ( b ) is designated as a “Special Purpose Subsidiary” by the Company.

Special Record Date ” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 307 .

Stated Maturity ” means, with respect to any Indebtedness, the date specified in such Indebtedness as the fixed date on which the payment of principal of such Indebtedness is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase or repayment of such Indebtedness at the option of the holder thereof upon the happening of any contingency).

Strategic Investors ” means physicians, hospitals, health systems, other healthcare providers, other healthcare companies and other similar strategic joint venture partners which joint venture partners are actively involved in the day-to-day operations of providing surgical care and surgery-related services, or, in the case of physicians, that have retired therefrom, individuals who are former owners or employees of surgical care facilities purchased by the Company, any of its Restricted Subsidiaries, and consulting firms that receive common stock solely as consideration for consulting services performed.

Subordinated Obligations ” means any Indebtedness of the Company (whether outstanding on the date of this Indenture or thereafter Incurred) that is expressly subordinated in right of payment to the Notes pursuant to a written agreement.

Subsidiary ” of any Person means any corporation, association, partnership or other business entity of which more than 50.0% of the total voting power of shares of Capital Stock or other equity interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by ( i ) such Person or ( ii ) one or more Subsidiaries of such Person. The term “ Subsidiary ” shall not include any Related Corporation; provided that, for the avoidance of doubt, nothing in this sentence shall limit or otherwise affect the treatment of Related Corporations (including with respect to consolidation) for financial reporting purposes under and in accordance with GAAP.

Subsidiary Guarantee ” means any guarantee of the Notes that may from time to time be entered into by a Restricted Subsidiary of the Company on the Issue Date or after the Issue Date pursuant to Section 414 . As used in this Indenture, “Subsidiary Guarantee” refers to a Subsidiary Guarantee of the Notes.

 

44


Subsidiary Guarantor ” means any Restricted Subsidiary of the Company that enters into a Subsidiary Guarantee, in each case, unless and until such Subsidiary is released from such Subsidiary Guarantee in accordance with the terms of this Indenture.

Temporary Cash Investments ” means any of the following: ( i ) any investment in ( x ) direct obligations of the United States of America, Canada, a member state of the European Union or any country in whose currency funds are being held pending their application in the making of an investment or capital expenditure by the Company or a Restricted Subsidiary in that country or with such funds, or any agency or instrumentality of any thereof, or obligations Guaranteed by the United States of America or a member state of the European Union or any country in whose currency funds are being held pending their application in the making of an investment or capital expenditure by the Company or a Restricted Subsidiary in that country or with such funds, or any agency or instrumentality of any of the foregoing, or obligations guaranteed by any of the foregoing or ( y ) direct obligations of any foreign country recognized by the United States of America rated at least “A” by S&P or “A-1” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), ( ii ) overnight bank deposits, and investments in time deposit accounts, certificates of deposit, bankers’ acceptances and money market deposits (or, with respect to foreign banks, similar instruments) maturing not more than one year after the date of acquisition thereof issued by ( x ) any bank or other institutional lender under a Credit Facility or any affiliate thereof or ( y ) a bank or trust company that is organized under the laws of the United States of America, any state thereof or any foreign country recognized by the United States of America having capital and surplus aggregating in excess of $250.0 million (or the foreign currency equivalent thereof) and whose long term debt is rated at least “A” by S&P or “A-1” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization) at the time such Investment is made, ( iii ) repurchase obligations with a term of not more than 30 days for underlying securities or instruments of the types described in clause (i) or (ii) above entered into with a bank meeting the qualifications described in clause (ii) above, ( iv ) Investments in commercial paper, maturing not more than 270 days after the date of acquisition, issued by a Person (other than that of the Company or any of its Subsidiaries), with a rating at the time as of which any Investment therein is made of “P-2” (or higher) according to Moody’s or “A-2” (or higher) according to S&P (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), ( v ) Investments in securities maturing not more than one year after the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P or “A” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), ( vi ) Indebtedness or Preferred Stock (other than of the Company or any of its Subsidiaries) having a rating of “A” or higher by S&P or “A2” or higher by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized

 

45


rating organization), ( vii ) investment funds investing 95.0% of their assets in securities of the type described in clauses (i) through (vi) above (which funds may also hold cash pending investment and/or distribution), ( viii ) any money market deposit accounts issued or offered by a domestic commercial bank or a commercial bank organized and located in a country recognized by the United States of America, in each case, having capital and surplus in excess of $250.0 million (or the foreign currency equivalent thereof), or investments in money market funds subject to the risk limiting conditions of Rule 2a-7 (or any successor rule) of the SEC under the Investment Company Act of 1940, as amended, and ( ix ) similar investments approved by the Board of Directors in the ordinary course of business.

TIA ” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of this Indenture, except as otherwise provided herein.

Trade Payables ” means, with respect to any Person, any accounts payable or any indebtedness or monetary obligation to trade creditors created, assumed or guaranteed by such Person arising in the ordinary course of business in connection with the acquisition of goods or services.

Transaction Agreements ” means, collectively, ( i ) the Merger Agreement, ( ii ) [reserved], ( iii ) the seventh amendment to the Senior Term Facility, ( iv ) the third amendment to the Senior ABL Facility and ( v ) customary director indemnification agreements.

Transactions ” means, collectively, any or all of the following: ( i ) the entry into this Indenture, the Purchase Agreement and the offer and issuance of the Notes, ( ii ) the entry into the seventh amendment to the Senior Term Facility and the Incurrence of “Term Loans” thereunder, ( iii ) the entry into the third amendment to the Senior ABL Facility and the establishment of new commitments thereunder, ( iv ) the consummation of the Mergers, ( v ) the repayment, refinancing, defeasance and/or redemption of certain Indebtedness of each of Envision Healthcare Holdings, Inc. and its Subsidiaries and AmSurg Corp. in connection with the foregoing and ( vi ) all other transactions relating to any of the foregoing (including payment of fees and expenses related to any of the foregoing).

Treasury Securities ” means any investment in obligations issued or guaranteed by the United States government or any agency thereof, in each case, maturing no later than the Outside Date.

TRICARE ” shall have the meaning assigned thereto in the Senior ABL Agreement, as in effect on the Issue Date.

Trust Officer ” means any corporate trust officer or any other officer or assistant officer of the Trustee customarily performing functions similar to those performed by the persons who at the time shall be such corporate trust officers who shall have direct responsibility for the administration of this Indenture, or any other officer of the Trustee to whom a corporate trust matter is referred because of his or her knowledge of and familiarity with the particular subject.

 

46


Trustee ” means Wilmington Trust, National Association, or any other party named as such in this Indenture until a successor replaces it and, thereafter, means the successor.

Uniform Commercial Code ” means the Uniform Commercial Code as in effect in the state of New York from time to time.

Unrestricted Subsidiary ” means ( i ) any Subsidiary of the Company that at the time of determination is an Unrestricted Subsidiary, as designated by the Board of Directors in the manner provided below, and ( ii ) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors may designate any Subsidiary of the Company (including any newly acquired or newly formed Subsidiary of the Company) to be an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any Lien on any property of, the Company or any other Restricted Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so designated; provided , that ( A ) such designation was made at or prior to the Issue Date, or ( B ) the Subsidiary to be so designated has total consolidated assets of $1,000 or less or ( C ) if such Subsidiary has consolidated assets greater than $1,000, then such designation would be permitted under Section 409 . The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided , that immediately after giving effect to such designation ( x ) the Company could Incur at least $1.00 of additional Indebtedness under Section 407(a) or ( y ) the Consolidated Coverage Ratio would be greater than it was immediately prior to giving effect to such designation or ( z ) such Subsidiary shall be a Special Purpose Subsidiary with no Indebtedness outstanding other than Indebtedness that can be Incurred (and upon such designation shall be deemed to be Incurred and outstanding) pursuant to Section 407(b) . Any such designation by the Board of Directors shall be evidenced to the Trustee by promptly filing with the Trustee a copy of the resolution of the Company’s Board of Directors giving effect to such designation and an Officer’s Certificate of the Company certifying that such designation complied with the foregoing provisions.

U.S. Government Obligation ” means ( x ) any security that is ( i ) a direct obligation of the United States of America for the payment of which the full faith and credit of the United States of America is pledged or ( ii ) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case under the preceding clause (i) or (ii) is not callable or redeemable at the option of the issuer thereof, and ( y ) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any U.S. Government Obligation that is specified in clause (x) above and held by such bank for the account of the holder of such depositary receipt, or with respect to any specific payment of principal of or interest on any U.S. Government Obligation that is so specified and held, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of principal or interest evidenced by such depositary receipt.

 

47


Voting Stock ” of an entity means all classes of Capital Stock of such entity then outstanding and normally entitled to vote in the election of directors or all interests in such entity with the ability to control the management or actions of such entity.

Section 102. Other Definitions .

 

Term

   Defined in
Section

“Act”

   108

“Affiliate Transaction”

   412

“Agent Members”

   312

“Amendment”

   410

“Authentication Order”

   303

“Bankruptcy Law”

   601

“Certificate of Beneficial Ownership”

   313

“Change of Control Offer”

   415

“Covenant Defeasance”

   1203

“Custodian”

   601

“Declined Excess Proceeds”

   411

“Defaulted Interest”

   307

“Defeasance”

   1202

“Defeased Notes”

   1201

“Discharge”

   101

“Event of Default”

   601

“Excess Proceeds”

   411

“Expiration Date”

   108

“Global Notes”

   201

“Initial Agreement”

   410

“Initial Lien”

   413

“LCA Election”

   121

“LCA Test Date”

   121

“Minimum Denomination”

   302

“Note Register” and “Note Registrar”

   305

“Notice of Default”

   601

“Offer”

   411

“Permanent Regulation S Global Notes”

   201

“Permitted Payment”

   409

“Physical Notes”

   201

“Private Placement Legend”

   203

“Purchase”

   101

“Refinancing Agreement”

   410

“Regulation S Global Notes”

   201

“Regulation S Note Exchange Date”

   313

 

48


Term

   Defined in
Section

“Regulation S Physical Notes”

   201

“Reporting Date”

   405

“Restricted Payment”

   409

“Reversion Date”

   416

“Rule 144A Global Notes”

   201

“Rule 144A Physical Notes”

   201

“Subsidiary Guaranteed Obligations”

   1301

“Sale”

   101

“Successor Company”

   501

“Suspended Covenants”

   416

“Suspension Date”

   416

“Suspension Period”

   416

“Temporary Regulation S Global Notes”

   201

“Total Leverage Excess Proceeds”

   411

Section 103. Rules of Construction . For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

(1) the terms defined in this Indenture have the meanings assigned to them in this Indenture;

(2) “ or ” is not exclusive;

(3) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP;

(4) the words “ herein ,” “ hereof ” and “ hereunder ” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision;

(5) all references to “ $ ” or “ dollars ” shall refer to the lawful currency of the United States of America;

(6) the words “ include ,” “ included ” and “ including ,” as used herein, shall be deemed in each case to be followed by the phrase “ without limitation ,” if not expressly followed by such phrase or the phrase “ but not limited to ”;

(7) words in the singular include the plural, and words in the plural include the singular;

 

49


(8) references to sections of, or rules under, the Securities Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the SEC from time to time;

(9) any reference to a Section, Article or clause refers to such Section, Article or clause of this Indenture; and

(10) notwithstanding any provision of this Indenture, no provision of the TIA shall apply or be incorporated by reference into this Indenture or the Notes, except as specifically set forth in this Indenture.

Section 104. [Reserved].

Section 105. [Reserved].

Section 106. Compliance Certificates and Opinions . Upon any application or request by the Company or by any other obligor upon the Notes (including any Subsidiary Guarantor) to the Trustee to take any action under any provision of this Indenture, the Company or such other obligor (including any Subsidiary Guarantor), as the case may be, shall furnish to the Trustee such certificates and opinions as may be required under this Indenture. Each such certificate or opinion shall be given in the form of one or more Officer’s Certificates, if to be given by an Officer, or an Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of this Indenture. Notwithstanding the foregoing, in the case of any such request or application as to which the furnishing of any Officer’s Certificate or Opinion of Counsel is specifically required by any provision of this Indenture relating to such particular request or application, no additional certificate or opinion need be furnished.

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (except for certificates provided for in Section 406 ) shall include:

(1) a statement that the individual signing such certificate or opinion has read such covenant or condition, as applicable, and the definitions herein relating thereto;

(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

(3) a statement that, in the opinion of such individual, he or she made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition, as applicable, has been complied with; and

 

50


(4) a statement as to whether, in the opinion of such individual, such condition or covenant, as applicable, has been complied with.

Section 107. Form of Documents Delivered to Trustee . In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

Any certificate or opinion of an Officer may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such Officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an Officer or Officers to the effect that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows that the certificate or opinion or representations with respect to such matters are erroneous.

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

Section 108. Acts of Noteholders; Record Dates . (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee, and, where it is hereby expressly required, to the Company, as the case may be. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “ Act ” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 701 ) conclusive in favor of the Trustee, the Company, and any other obligor upon the Notes, if made in the manner provided in this Section 108 .

(b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by the certificate of any

 

51


notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by an officer of a corporation or a member of a partnership or other legal entity other than an individual, on behalf of such corporation or partnership or entity, such certificate or affidavit shall also constitute sufficient proof of such Person’s authority. The fact and date of the execution of any such instrument or writing, or the authority of the person executing the same, may also be proved in any other manner that the Trustee deems sufficient.

(c) The ownership of Notes shall be proved by the Note Register.

(d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Note shall bind the Holder of every Note issued upon the transfer thereof or in exchange therefor or in lieu thereof, in respect of anything done, suffered or omitted to be done by the Trustee, the Company or any other obligor upon the Notes in reliance thereon, whether or not notation of such action is made upon such Note.

(e) (i) The Company may set any day as a record date for the purpose of determining the Holders of Outstanding Notes entitled to give, make or take any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by Holders of Notes, provided that the Company may not set a record date for, and the provisions of this paragraph shall not apply with respect to, the giving or making of any notice, declaration, request or direction referred to in the next paragraph. If any record date is set pursuant to this paragraph, the Holders of Outstanding Notes on such record date (or their duly designated proxies), and no other Holders, shall be entitled to take the relevant action, whether or not such Persons remain Holders after such record date; provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Notes on such record date. Nothing in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Notes on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Company, at its expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee in writing and to each Holder of Notes in the manner set forth in Section 110 .

(ii) The Trustee may set any day as a record date for the purpose of determining the Holders of Outstanding Notes entitled to join in the giving or making of ( A ) any Notice of Default, ( B ) any declaration of acceleration referred to in Section 602 , ( C ) any request to institute proceedings referred to in Section 607(ii) or ( D ) any direction referred to in Section 612 , in each case with respect to Notes. If any record date is set pursuant to this paragraph, the Holders of Outstanding Notes on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether or not such Holders

 

52


remain Holders after such record date; provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Notes on such record date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Notes on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Company in writing and to each Holder of Notes in the manner set forth in Section 110 .

(iii) With respect to any record date set pursuant to this Section 108 , the party hereto that sets such record dates may designate any day as the “ Expiration Date ” and from time to time may change the Expiration Date to any earlier or later day; provided that no such change shall be effective unless notice of the proposed new Expiration Date is given to the Company or the Trustee, whichever such party is not setting a record date pursuant to this Section 108(e) in writing, and to each Holder of Notes in the manner set forth in Section 110 , on or prior to the existing Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to this Section 108 , the party hereto that set such record date shall be deemed to have initially designated the 180th day after such record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day after the applicable record date.

(iv) Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular Note may do so with regard to all or any part of the principal amount of such Note or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such principal amount.

(v) Without limiting the generality of the foregoing, a Holder, including the Depositary, that is the Holder of a Global Note, may make, give or take, by a proxy or proxies duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in this Indenture to be made, given or taken by Holders, and the Depositary, as the Holder of a Global Note, may provide its proxy or proxies to the beneficial owners of interests in any such Global Note through such depositary’s standing instructions and customary practices.

(vi) The Company may fix a record date for the purpose of determining the persons who are beneficial owners of interests in any Global Note held by the Depositary entitled under the procedures of such depositary to make, give or take, by a proxy or proxies duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in this Indenture to be made, given or taken by Holders. If such a record

 

53


date is fixed, the Holders on such record date or their duly appointed proxy or proxies, and only such persons, shall be entitled to make, give or take such request, demand, authorization direction, notice consent, waiver or other action, whether or not such Holders remain Holders after such record date. No such request, demand, authorization, direction, notice, consent, waiver or other action shall be valid or effective if made, given or taken more than 90 days after such record date.

Section 109. Notices, Etc., to Trustee and Company . Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with,

(1) the Trustee by any Holder or by the Company or by any other obligor upon the Notes shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at 246 Goose Lane, Suite 105, Guilford, Connecticut 06437, Attention: Corporate Trust Department (telephone: (203) 453-4130; telecopier: (203) 453-1183) or at any other address furnished in writing to the Company by the Trustee,

(2) the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder if in writing and mailed, first class postage prepaid, to the Company at 1 Burton Hills Blvd., Nashville, TN 37215, Attention: General Counsel; with copies to Debevoise & Plimpton LLP at 919 Third Avenue, New York, New York 10022, Attention: Jeffrey E. Ross, Esq., or at any other address furnished in writing to the Trustee by the Company, or

(3) the Company or the Trustee, by notice to the others, may designate additional or different addresses for subsequent notices or communications.

Section 110. Notices to Holders; Waiver . Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first class postage prepaid, or by overnight air courier guaranteeing next day delivery, to each Holder affected by such event, at such Holder’s address as it appears in the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders.

Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

54


In case, by reason of the suspension of regular mail service, or by reason of any other cause, it shall be impossible to mail notice of any event as required by any provision of this Indenture, then such notification as shall be made with the approval of the Trustee (such approval not to be unreasonably withheld) shall constitute a sufficient notification for every purpose hereunder.

Notwithstanding any other provision of this Indenture or any Note, where this Indenture or any Note provides for notice of any event (including any notice of redemption) to a Holder of a Global Note (whether by mail or otherwise), such notice shall be sufficiently given if given to the Depositary for such Note (or its designee) pursuant to the customary procedures of such Depositary (including delivery by electronic mail).

Section 111. Effect of Headings and Table of Contents . The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

Section 112. Successors and Assigns . All covenants and agreements in this Indenture by the Company shall bind its respective successors and assigns, whether so expressed or not. All agreements of the Trustee in this Indenture shall bind its successors.

Section 113. Separability Clause . In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 114. Benefits of Indenture . Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any Paying Agent and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

Section 115. GOVERNING LAW . THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES.

 

55


Section 116. Legal Holidays . In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Note shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Notes) payment of interest or principal and premium (if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, and no interest shall accrue on such payment for the intervening period.

Section 117. No Personal Liability of Directors, Officers, Employees, Incorporators and Stockholders . No director, officer, employee, incorporator or stockholder of the Company, any Subsidiary Guarantor or any Subsidiary of any thereof shall have any liability for any obligation of the Company or any Subsidiary Guarantor under this Indenture, the Notes or any Subsidiary Guarantee, or for any claim based on, in respect of, or by reason of, any such obligation or its creation. Each Noteholder, by accepting the Notes, waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

Section 118. Exhibits and Schedules . All exhibits and schedules attached hereto are by this reference made a part hereof with the same effect as if herein set forth in full.

Section 119. Counterparts . This Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Indenture and of signature pages by facsimile transmission, PDF or other similar electronic transmission shall constitute effective execution and delivery of this Indenture as to all the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile transmission, PDF or other similar electronic transmission shall be deemed to be their original signatures for all purposes.

Section 120. Force Majeure . To the extent permitted by the TIA, in no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services (it being understood that the Trustee shall use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances).

 

56


Section 121. Limited Condition Acquisition . In connection with any action being taken in connection with a Limited Condition Acquisition and any related transactions (including any financing thereof), for purposes of determining compliance with any provision of this Indenture which requires that no Default, Event of Default or specified Event of Default, as applicable, has occurred, is continuing or would result from any such action, as applicable, such condition shall, at the option of the Company, be deemed satisfied, so long as no Default, Event of Default or specified Event of Default, as applicable, exists on the date a definitive agreement for such Limited Condition Acquisition is entered into. For the avoidance of doubt, if the Company has exercised its option under the first sentence of this Section 121 , and any Default or Event of Default occurs following the date the definitive agreements for the applicable Limited Condition Acquisition were entered into and prior to the consummation of such Limited Condition Acquisition, any such Default or Event of Default shall be deemed to not have occurred or be continuing for purposes of determining whether any action being taken in connection with such Limited Condition Acquisition is permitted hereunder.

In connection with any action being taken in connection with a Limited Condition Acquisition and any related transactions (including any financing thereof), for purposes of:

(i) determining compliance with any provision of this Indenture which requires the calculation of the Consolidated Coverage Ratio, the Consolidated Secured Leverage Ratio or the Consolidated Total Leverage Ratio; or

(ii) testing any basket or ratio set forth in this Indenture (including baskets measured as a percentage of Four Quarter Consolidated EBITDA);

in each case, at the option of the Company (the Company’s election to exercise such option in connection with any Limited Condition Acquisition, an “ LCA Election ”), the date of determination of whether any such action is permitted hereunder, shall be deemed to be the date the definitive agreements for such Limited Condition Acquisition are entered into (the “ LCA Test Date ”), and if, after giving pro forma effect to the Limited Condition Acquisition and the other transactions to be entered into in connection therewith (including any Incurrence of Indebtedness and the use of proceeds thereof) as if they had occurred at the beginning of the most recent four consecutive fiscal quarters ending prior to the LCA Test Date for which consolidated financial statements of the Company are available, the Company could have taken such action on the relevant LCA Test Date in compliance with such ratio, basket and/or percentage, such ratio, basket and/or percentage shall be deemed to have been complied with. For the avoidance of doubt, if the Company has made an LCA Election and any of the ratios, baskets, amounts and/or percentages for which compliance was determined or tested as of the LCA Test Date are exceeded as a result of fluctuations in any such ratio, basket and/or percentage, including due to fluctuations in Consolidated EBITDA of the Company or the Person subject to such Limited Condition Acquisition or any applicable currency exchange rate, at or prior to the consummation of the relevant transaction or action, such ratios, baskets, amounts and/or percentages will not be deemed to have been exceeded as a result of such fluctuations. If

 

57


the Company has made an LCA Election for any Limited Condition Acquisition, then in connection with any subsequent calculation of any ratio or basket availability and/or percentage with respect to the Incurrence of Indebtedness or Liens, or the making of Restricted Payments, mergers, the conveyance, lease or other transfer of all or substantially all of the assets of the Company or the designation of an Unrestricted Subsidiary on or following the relevant LCA Test Date and prior to the earlier of the date on which such Limited Condition Acquisition is consummated or the definitive agreement for such Limited Condition Acquisition is terminated or expires without consummation of such Limited Condition Acquisition, any such ratio, basket and/or percentage shall be calculated on a pro forma basis assuming such Limited Condition Acquisition and other transactions in connection therewith (including any Incurrence of Indebtedness and the use of proceeds thereof) have been consummated.

ARTICLE II

NOTE FORMS

Section 201. Forms Generally . The Initial Notes and Initial Additional Notes and the Trustee’s certificate of authentication relating thereto shall be in substantially the forms set forth, or referenced, in this Article II and Exhibit A attached hereto (as such forms may be modified in accordance with Section 301 ). Any Additional Notes that are not Initial Additional Notes and the Trustee’s certificate of authentication relating thereto shall be in substantially the form set forth, or referenced, in this Article II and Exhibit A attached hereto (as such forms may be modified in accordance with Section 301 ). Exhibit A is hereby incorporated in and expressly made a part of this Indenture. The Notes may have such appropriate insertions, omissions, substitutions, notations, legends, endorsements, identifications and other variations as are required or permitted by law, stock exchange rule or depositary rule or usage, agreements to which the Company is subject, if any, or other customary usage, or as may consistently herewith be determined by the Officers of the Company executing such Notes, as evidenced by such execution ( provided always that any such notation, legend, endorsement, identification or variation is in a form acceptable to the Company). Each Note shall be dated the date of its authentication. The terms of the Notes set forth in Exhibit A are part of the terms of this Indenture. Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note. For the avoidance of doubt, no Opinion of Counsel shall be required on the Issue Date for the Trustee’s authentication of the Initial Notes.

Initial Notes and any Initial Additional Notes offered and sold in reliance on Rule 144A shall, unless the Company otherwise notifies the Trustee in writing, be issued in the form of one or more permanent global Notes substantially in the form attached hereto as Exhibit A (as such form may be modified in accordance with Section 301 ), except as otherwise permitted herein. Such Global Notes shall be referred to collectively herein as the “ Rule 144A Global Notes ,” and shall be deposited with the Trustee, as custodian for the Depositary or its nominee, for credit to an account of an Agent Member, and shall be duly executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of a Rule 144A Global Note may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee, as hereinafter provided.

 

58


Initial Notes and any Initial Additional Notes offered and sold in offshore transactions in reliance on Regulation S under the Securities Act shall, unless the Company otherwise notifies the Trustee in writing, be issued in the form of one or more temporary global Notes substantially in the form attached hereto as Exhibit A (as such form may be modified in accordance with Section 301 ), except as otherwise permitted herein. Such Global Notes shall be referred to herein as the “ Temporary Regulation S Global Notes ,” and shall be deposited with the Trustee, as custodian for the Depositary or its nominee for the accounts of designated Agent Members holding on behalf of Euroclear or Clearstream and shall be duly executed by the Company and authenticated by the Trustee as hereinafter provided.

Following the expiration of the distribution compliance period set forth in Regulation S with respect to any Temporary Regulation S Global Note, beneficial interests in such Temporary Regulation S Global Note shall be exchanged as provided in Sections 312 and 313 for beneficial interests in one or more permanent global Notes substantially in the form attached hereto as Exhibit A (as such form may be modified in accordance with Section 301 ), except as otherwise permitted herein. Such Global Notes shall be referred to herein as the “ Permanent Regulation S Global Notes ” and, together with the Temporary Regulation S Global Notes, as the “ Regulation S Global Notes .” The Permanent Regulation S Global Notes shall be deposited with the Trustee, as custodian for the Depositary or its nominee for credit to the account of an Agent Member and shall be duly executed by the Company and authenticated by the Trustee as hereinafter provided. Simultaneously with the authentication of a Permanent Regulation S Global Note, the Trustee shall cancel the related Temporary Regulation S Global Note. The aggregate principal amount of a Regulation S Global Note may from time to time be increased or decreased by adjustments made in the records of the Trustee, as custodian for the Depositary or its nominee, as hereinafter provided.

Subject to the limitations on the issuance of certificated Notes set forth in Sections 312 and 313 , Initial Notes and any Initial Additional Notes issued pursuant to Section 305 in exchange for or upon transfer of beneficial interests ( x ) in a Rule 144A Global Note shall be in the form of permanent certificated Notes substantially in the form attached hereto as Exhibit A (as such form may be modified in accordance with Section 301 ) (the “ Rule 144A Physical Notes ”) or ( y ) in a Regulation S Global Note (if any), on or after the Regulation S Note Exchange Date with respect to such Regulation S Global Note, shall be in the form of permanent certificated Notes in substantially the form attached hereto as Exhibit A (as such form may be modified in accordance with Section 301 ) (the “ Regulation S Physical Notes ”), respectively, as hereinafter provided.

The Rule 144A Physical Notes and Regulation S Physical Notes shall be construed to include any certificated Notes issued in respect thereof pursuant to Section 304 , 305 , 306 or 1008 , and the Rule 144A Global Notes and Regulation S Global Notes shall be

 

59


construed to include any global Notes issued in respect thereof pursuant to Section 304 , 305 , 306 or 1008 . The Rule 144A Physical Notes and the Regulation S Physical Notes, together with any other certificated Notes issued and authenticated pursuant to this Indenture, are sometimes collectively herein referred to as the “ Physical Notes .” The Rule 144A Global Notes and the Regulation S Global Notes, together with any other global Notes that are issued and authenticated pursuant to this Indenture, are sometimes collectively referred to as the “ Global Notes .”

Section 202. Form of Trustee’s Certificate of Authentication . The Notes will have endorsed thereon a Trustee’s certificate of authentication in substantially the following form:

This is one of the Notes referred to in the within-mentioned Indenture.

 

 
 
as Trustee
By:    
  Authorized Officer

Dated:

If an appointment of an Authenticating Agent is made pursuant to Section 714 , the Notes may have endorsed thereon, in lieu of the Trustee’s certificate of authentication, an alternative certificate of authentication in substantially the following form:

This is one of the Notes referred to in the within-mentioned Indenture.

 

[NAME]
 
as Trustee
By:    
  As Authenticating Agent
   
By:    
  Authorized Officer

Dated:

 

60


Section 203. Restrictive and Global Note Legends . Each Global Note and Physical Note (and all Notes issued in exchange therefor or substitution thereof) shall bear the following legend set forth below (the “ Private Placement Legend ”) on the face thereof until the Private Placement Legend is removed or not required in accordance with Section 313(4) :

“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES ACT ”), OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER OR ANOTHER EXEMPTION UNDER THE SECURITIES ACT.

BY ITS ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE ( 1 ) REPRESENTS THAT ( A ) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), ( B ) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR ( C ) IT IS AN “INSTITUTIONAL” ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3), OR (7) UNDER REGULATION D PROMULGATED UNDER THE SECURITIES ACT (AN “ ACCREDITED INVESTOR ”) AND ( 2 ) AGREES THAT IT WILL NOT WITHIN [ONE YEAR— FOR NOTES ISSUED PURSUANT TO RULE 144A ][40 DAYS— FOR NOTES ISSUED IN OFFSHORE TRANSACTIONS PURSUANT TO REGULATION S ] AFTER THE LATER OF THE DATE OF THE ORIGINAL ISSUANCE OF THIS NOTE AND THE DATE ON WHICH THE COMPANY OR ANY OF ITS RESPECTIVE AFFILIATES OWNED THIS NOTE, OFFER, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT ( A ) ( I ) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, ( II ) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, ( III ) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT IS ACQUIRING THE NOTES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE NOTES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR THE OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, AND THAT PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS

 

61


BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS NOTE), ( IV ) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT (IF AVAILABLE), ( V ) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), ( VI ) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), OR ( VII ) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ( B ) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. BY ITS ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE FURTHER AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS NOTE PURSUANT TO SUBCLAUSES (III) TO (VI) OF CLAUSE (A) ABOVE THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.”

Each Global Note, whether or not an Initial Note, shall also bear the following legend on the face thereof:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“ DTC ”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

62


TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTIONS 312 AND 313 OF THE INDENTURE (AS DEFINED HEREIN).”

[BY ITS ACQUISITION OF THIS NOTE, THE HOLDER THEREOF WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER (A) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE AND/OR HOLD THIS NOTE OR ANY INTEREST HEREIN CONSTITUTES THE ASSETS OF ANY (I) EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), (II)              PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR PROVISIONS UNDER ANY OTHER FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR (III) ENTITY THE UNDERLYING ASSETS OF WHICH ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT, OR (B) THE ACQUISITION AND/OR HOLDING OF THIS NOTE OR ANY INTEREST HEREIN BY SUCH HOLDER WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.”]

Each Temporary Regulation S Global Note shall also bear the following legend on the face thereof:

“BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON, NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON, AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT.

EXCEPT AS SPECIFIED IN THE INDENTURE, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL NOTE OR ANY OTHER NOTE REPRESENTING AN INTEREST IN THE NOTES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40 DAY DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S UNDER THE SECURITIES ACT). DURING SUCH 40 DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE MAY NOT BE SOLD, PLEDGED OR TRANSFERRED TO A U.S. PERSON OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON.”

 

63


ARTICLE III

THE NOTES

Section 301. Amount Unlimited; Issuable in Series . The aggregate principal amount of Notes that may be authenticated and delivered and Outstanding under this Indenture is not limited. The Notes may be issued from time to time in one or more series. Except as provided in Section 902 , all Notes will vote (or consent) as a class with the other Notes and otherwise be treated as Notes for all purposes of this Indenture.

The following matters shall be established with respect to each series of Notes issued hereunder in a Notes Supplemental Indenture:

(1) the title of the Notes of the series (which title shall distinguish the Notes of the series from all other series of Notes);

(2) any limit (if any) upon the aggregate principal amount of the Notes of the series that may be authenticated and delivered under this Indenture (which limit shall not pertain to Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes of the series pursuant to Section 304 , 305 , 306 , 312(d) , 312(e) or 1008 );

(3) the date or dates on which the principal of and premium, if any, on the Notes of the series is payable or the method of determination and/or extension of such date or dates, and the amount or amounts of such principal and premium, if any, payments and methods of determination thereof;

(4) the rate or rates at which the Notes of the series shall bear interest, if any, or the method of calculating and/or resetting such rate or rates of interest, the date or dates from which such interest shall accrue or the method by which such date or dates shall be determined, and the Interest Payment Dates on which any such interest shall be payable;

(5) the period or periods within which, the price or prices at which, and other terms and conditions upon which Notes of the series ( i ) may be redeemed, in whole or in part, at the option of the Company, if the Company is to have the option or ( ii ) shall be redeemed, in whole or in part, upon the occurrence of specified events set forth herein, if the Notes shall be subject to a mandatory redemption provision;

 

64


(6) if other than the principal amount thereof, the portion of the principal amount of Notes of the series that shall be payable upon declaration of acceleration of maturity thereof pursuant to Section 602 or the method by which such portion shall be determined;

(7) in the case of any Notes, other than Initial Notes, any addition to or change in the Events of Default which apply to any Notes of the series and any change in the right of the Trustee or the requisite Holders of such Notes to declare the principal amount thereof due and payable pursuant to Section 602 ;

(8) in the case of any Notes, other than Initial Notes, any addition to or change in the covenants set forth in Articles IV and V ; and

(9) in the case of any Notes, other than Initial Notes, any addition to or change in the definitions in Section 101 related to additions or changes contemplated by the foregoing clauses (7) and (8).

The form of the Notes of such series, as set forth in Exhibit A , may be modified to reflect such matters as so established in such Notes Supplemental Indenture.

Such matters may also be established in a Notes Supplemental Indenture for any Additional Notes issued hereunder that are to be of the same series as any Notes previously issued hereunder. Notes that have the same terms described in the foregoing clauses (1) through (9) will be treated as the same series, unless otherwise designated by the Company.

Section 302. Denominations . The Notes shall be issuable only in fully registered form, without coupons, and only in minimum denominations of $2,000 (the “ Minimum Denomination ”) and integral multiples of $1,000 in excess thereof.

Section 303. Execution, Authentication and Delivery and Dating . The Notes shall be executed on behalf of the Company by one Officer of the Company. The signature of any such Officer on the Notes may be manual or by facsimile.

Notes bearing the manual or facsimile signature of an individual who was at any time an Officer of the Company shall bind the Company, notwithstanding that such individual has ceased to hold such office prior to the authentication and delivery of such Notes or did not hold such office at the date of such Notes.

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Notes executed by the Company to the Trustee for authentication; and the Trustee shall authenticate and deliver ( i ) Initial Notes for original issue in the aggregate principal amount not to exceed $550.0 million and ( ii ) Additional Notes in one or

 

65


more series (which may be of the same series as any Notes previously issued hereunder, or of a different series) from time to time for original issue in aggregate principal amounts specified by the Company, in each case specified in clauses (i) and (ii) above, upon a written order of the Company in the form of an Officer’s Certificate of the Company (an “ Authentication Order ”). Such Officer’s Certificate shall specify the amount of Notes to be authenticated and the date on which the Notes are to be authenticated, the “CUSIP”, “ISIN”, “Common Code” or other similar identification numbers of such Notes, if any, whether the Notes are to be Initial Notes or Additional Notes and whether the Notes are to be issued as one or more Global Notes or Physical Notes and such other information as the Company may include or the Trustee may reasonably request.

All Notes shall be dated the date of their authentication.

No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Note a certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder.

Section 304. Temporary Notes . Until definitive Notes are ready for delivery, the Company may prepare and upon receipt of an Authentication Order the Trustee shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of definitive Notes but may have variations that the Company considers appropriate for temporary Notes. If temporary Notes are issued, the Company will cause definitive Notes to be prepared without unreasonable delay. After the preparation of definitive Notes, the temporary Notes shall be exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of the Company in a Place of Payment, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Notes, the Company shall execute and upon receipt of an Authentication Order the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Notes of authorized denominations. Until so exchanged the temporary Notes shall in all respects be entitled to the same benefits under this Indenture as definitive Notes of the same series and tenor.

Section 305. Note Registrar and Paying Agent . The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register (the register maintained in such office and in any other office or agency of the Company in a Place of Payment being herein sometimes collectively referred to as the “ Note Register ”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Notes and of transfers of Notes. The Company may have one or more co-registrars. The term “ Note Registrar ” includes any co-registrars.

The Company initially appoints the Trustee as “Note Registrar” and “Paying Agent” in connection with the Notes, until such time as it has resigned or a successor has been

 

66


appointed. The Company may have one or more additional paying agents, and the term “Paying Agent” shall include any additional Paying Agent. The Company may change the Paying Agent or Note Registrar without prior notice to the Holders of Notes. The Company may enter into an appropriate agency agreement with any Note Registrar or Paying Agent not a party to this Indenture. Any such agency agreement shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee in writing of the name and address of any such agent. If the Company fails to appoint or maintain a Note Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 707 . The Company or any wholly-owned Domestic Subsidiary of the Company may act as Paying Agent (except for purposes of Section 1103 or Section 1205 ) or Note Registrar.

Upon surrender for transfer of any Note at the office or agency of the Company in a Place of Payment, in compliance with all applicable requirements of this Indenture and applicable law, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of the same series, of any authorized denominations and of a like aggregate principal amount.

At the option of the Holder, Notes may be exchanged for other Notes of the same series, of any authorized denominations and of a like tenor and aggregate principal amount, upon surrender of the Notes to be exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes that the Holder making the exchange is entitled to receive.

All Notes issued upon any transfer or exchange of Notes shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such transfer or exchange.

Every Note presented or surrendered for transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company duly executed, by the Holder thereof or such Holder’s attorney duly authorized in writing.

No service charge shall be made for any registration, transfer or exchange of Notes, but the Company may require payment of a sum sufficient to cover any transfer tax or other governmental charge that may be imposed in connection therewith.

The Company shall not be required ( i ) to issue, transfer or exchange any Note during a period beginning at the opening of business 15 Business Days before the day of the sending of a notice of redemption (or purchase) of Notes selected for redemption (or purchase) under Section 1004 and ending at the close of business on the day of such mailing, or ( ii ) to transfer or exchange any Note so selected for redemption (or purchase) in whole or in part.

Section 306. Mutilated, Destroyed, Lost and Stolen Notes . If a mutilated Note is surrendered to the Note Registrar

 

67


or if the Holder of a Note claims that the Note has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Note if the requirements of Section 8-405 of the Uniform Commercial Code are met, such that the Holder ( a ) notifies the Company or the Trustee within a reasonable time after such Holder has notice of such loss, destruction or wrongful taking and the Note Registrar does not register a transfer prior to receiving such notification, ( b ) makes such request to the Company or the Trustee prior to the Note being acquired by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code and ( c ) satisfies any other reasonable requirements of the Company. If required by the Trustee or the Company, such Holder shall furnish an indemnity bond sufficient in the judgment of ( i ) the Trustee to protect the Trustee and ( ii ) the Company to protect the Company, the Trustee, a Paying Agent and the Note Registrar, from any loss that any of them may suffer if a Note is replaced.

In case any such mutilated, destroyed, lost or stolen Note has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Note, pay such Note.

Upon the issuance of any new Note under this Section 306 , the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

Every new Note issued pursuant to this Section 306 in lieu of any destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and ratably with any and all other Notes duly issued hereunder.

The provisions of this Section 306 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes.

Section 307. Payment of Interest Rights Preserved . Interest on any Note that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the Regular Record Date for such interest specified in Section 4 of the applicable Notes Supplemental Indenture.

 

68


Unless otherwise specified for Notes of any series in the applicable Notes Supplemental Indenture, as contemplated by Section 301 , any interest on any Note that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “ Defaulted Interest ”) shall forthwith cease to be payable to the registered Holder on the relevant Regular Record Date by virtue of having been such Holder; and such Defaulted Interest may be paid by the Company, at its election, as provided in clause (1) or clause (2) below:

(1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner: The Company shall notify the Trustee and Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment, and the Company shall deposit with the Trustee or Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements reasonably satisfactory to the Trustee or Paying Agent for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as provided in this clause (1). Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee and the Paying Agent of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first class postage prepaid, to each Holder at such Holder’s address as it appears in the Note Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered on such Special Record Date and shall no longer be payable pursuant to the following clause (2).

(2) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange.

Subject to the foregoing provisions of this Section 307 , each Note delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Note shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Note.

Section 308. Persons Deemed Owners . The Company, any Subsidiary Guarantor, the Trustee, the Paying Agent and any agent of any of them may treat the Person in whose name any Note is registered as the owner of such Note for the purpose of receiving payment of principal of (and premium, if any), and (subject to Section 307 ) interest on, such Note and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Company, any Subsidiary Guarantor, the Trustee, the Paying Agent nor any agent of any of them shall be affected by notice to the contrary.

 

69


Section 309. Cancellation . All Notes surrendered for payment, redemption, transfer, exchange or conversion shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and, if not already cancelled, shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Notes previously authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section 309 , except as expressly permitted by this Indenture. All cancelled Notes held by the Trustee shall be disposed of by the Trustee in accordance with its customary procedures (subject to the record retention requirements of the Exchange Act).

Section 310. Computation of Interest . Unless otherwise specified for Notes of any series in the applicable Notes Supplemental Indenture, as contemplated by Section 301 , interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months.

Section 311. CUSIP Numbers, ISINs, Etc . The Company in issuing the Notes may use “CUSIP” numbers, ISINs and “Common Code” numbers (if then generally in use), and if so, the Trustee may use the CUSIP numbers, ISINs and “Common Code” numbers in notices of redemption or exchange as a convenience to Holders; provided , however , that any such notice may state that no representation is made as to the correctness or accuracy of such numbers printed in the notice or on the Notes; that reliance may be placed only on the other identification numbers printed on the Notes; and that any redemption shall not be affected by any defect in or omission of such numbers.

Section 312. Book-Entry Provisions for Global Notes . (a) Each Global Note initially shall ( i ) be registered in the name of the Depositary for such Global Note or the nominee of such Depositary, in each case for credit to the account of an Agent Member, and ( ii ) be delivered to the Trustee as custodian for such Depositary. None of the Company, any agent of the Company or the Trustee shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Note, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

(b) Members of, or participants in, the Depositary (“ Agent Members ”) shall have no rights under this Indenture with respect to any Global Note held on their behalf by the Depositary, or its custodian, or under such Global Notes. The Depositary may be treated by the Company, any other obligor upon the Notes, the Trustee and any agent of any of them as the absolute owner of the Global Notes for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, any other obligor upon the Notes, the Trustee or any

 

70


agent of any of them from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a beneficial owner of any Note. The Holder of a Global Note may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action that a Holder is entitled to take under this Indenture or the Notes.

(c) Transfers of a Global Note shall be limited to transfers of such Global Note in whole, but, subject to the immediately succeeding sentence, not in part, to the Depositary, its successors or their respective nominees. Interests of beneficial owners in a Global Note may not be transferred or exchanged for Physical Notes unless ( i ) the Company has consented thereto in writing, or such transfer or exchange is made pursuant to the next sentence, and ( ii ) such transfer or exchange is in accordance with the applicable rules and procedures of the Depositary and the provisions of Section 305 and Section 313 . Subject to the limitation on issuance of Physical Notes set forth in Section 313(3) , Physical Notes shall be transferred to all beneficial owners in exchange for their beneficial interests in the relevant Global Note, if ( i ) the Depositary notifies the Company at any time that it is unwilling or unable to continue as Depositary for the Global Notes and a successor depositary is not appointed within 120 days; ( ii ) the Depositary ceases to be registered as a “Clearing Agency” under the Exchange Act and a successor depositary is not appointed within 120 days; ( iii ) the Company, at its option, notifies the Trustee that it elects to cause the issuance of Physical Notes; or ( iv ) an Event of Default shall have occurred and be continuing with respect to the Notes and the Trustee has received a written request from the Depositary to issue Physical Notes.

(d) In connection with any transfer or exchange of a portion of the beneficial interest in any Global Note to beneficial owners for Physical Notes pursuant to Section 312(c) , the Note Registrar shall record on its books and records the date and a decrease in the principal amount of such Global Note in an amount equal to the beneficial interest in the Global Note being transferred, and the Company shall execute, and the Trustee shall authenticate and deliver, one or more Physical Notes of like tenor and principal amount of authorized denominations.

(e) In connection with a transfer of an entire Global Note to beneficial owners for Physical Notes pursuant to Section 312(c) , the applicable Global Note shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the Depositary, in exchange for its beneficial interest in the applicable Global Note, an equal aggregate principal amount of Rule 144A Physical Notes (in the case of any Rule 144A Global Note) or Regulation S Physical Notes (in the case of any Regulation S Global Note), as the case may be, of authorized denominations.

(f) The transfer and exchange of a Global Note or beneficial interests therein shall be effected through the Depositary, in accordance with this Indenture (including applicable restrictions on transfer set forth in Section 313 ) and the procedures therefor of the Depositary. Any beneficial interest in one of the Global Notes that is transferred to a Person who takes delivery in the form of an interest in a different Global Note will, upon transfer, cease to be an

 

71


interest in such Global Note and become an interest in the other Global Note and, accordingly, will thereafter be subject to all transfer restrictions, if any, and other procedures applicable to beneficial interests in such other Global Note for as long as it remains such an interest. A transferor of a beneficial interest in a Global Note shall deliver to the Note Registrar a written order given in accordance with the Depositary’s procedures containing information regarding the participant account of the Depositary to be credited with a beneficial interest in the relevant Global Note. Subject to Section 313 , the Note Registrar shall, in accordance with such instructions, instruct the Depositary to credit to the account of the Person specified in such instructions a beneficial interest in such Global Note and to debit the account of the Person making the transfer the beneficial interest in the Global Note being transferred.

(g) Any Physical Note delivered in exchange for an interest in a Global Note pursuant to Section 312(c) shall, unless such exchange is made on or after the Resale Restriction Termination Date applicable to such Note and except as otherwise provided in Section 203 and Section 313 , bear the Private Placement Legend.

(h) Notwithstanding the foregoing, through the Restricted Period, a beneficial interest in a Regulation S Global Note may be held only through designated Agent Members holding on behalf of Euroclear or Clearstream unless delivery is made in accordance with the applicable provisions of Section 313 .

Section 313. Special Transfer Provisions .

(1) Transfers to Non-U.S. Persons . The following provisions shall apply with respect to the registration of any proposed transfer of a Note that is a Restricted Security to any Non-U.S. Person: The Note Registrar shall register such transfer if it complies with all other applicable requirements of this Indenture (including Section 305 ) and,

(a) if ( x ) such transfer is after the relevant Resale Restriction Termination Date with respect to such Note or ( y ) the proposed transferor has delivered to the Note Registrar and the Company and the Trustee a Regulation S Certificate and, unless otherwise agreed by the Company, an opinion of counsel, certifications and other information satisfactory to the Company, and

(b) if the proposed transferor is or is acting through an Agent Member holding a beneficial interest in a Global Note, upon receipt by the Note Registrar and the Company and the Trustee of ( x ) the certificate, opinion, certifications and other information, if any, required by clause (a) above and ( y ) written instructions given in accordance with the procedures of the Note Registrar and of the Depositary;

whereupon ( i ) the Note Registrar shall reflect on its books and records the date and (if the transfer does not involve a transfer of any Outstanding Physical Note) a decrease in the principal amount of the relevant Global Note in an amount equal to the principal amount of the beneficial interest in the relevant Global Note to be transferred, and ( ii ) either ( A ) if the proposed transferee

 

72


is or is acting through an Agent Member holding a beneficial interest in a relevant Regulation S Global Note, the Note Registrar shall reflect on its books and records the date and an increase in the principal amount of such Regulation S Global Note in an amount equal to the principal amount of the beneficial interest being so transferred or ( B ) otherwise the Company shall execute and (upon receipt of an Authentication Order) the Trustee shall authenticate and deliver one or more Physical Notes of like tenor and amount.

(2) Transfers to QIBs . The following provisions shall apply with respect to the registration of any proposed transfer of a Note that is a Restricted Security to a QIB (excluding transfers to Non-U.S. Persons): The Note Registrar shall register such transfer if it complies with all other applicable requirements of this Indenture (including Section 305 ) and,

(a) if such transfer is being made by a proposed transferor who has checked the box provided for on the form of such Note stating, or has otherwise certified to the Note Registrar and the Company and the Trustee in writing, that the sale has been made in compliance with the provisions of Rule 144A to a transferee who has signed the certification provided for on the form of such Note stating, or has otherwise certified to Note Registrar and the Company and the Trustee in writing, that it is purchasing such Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a QIB within the meaning of Rule 144A, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as it has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A; and

(b) if the proposed transferee is an Agent Member, and the Note to be transferred consists of a Physical Note that after transfer is to be evidenced by an interest in a Global Note or consists of a beneficial interest in a Global Note that after the transfer is to be evidenced by an interest in a different Global Note, upon receipt by the Note Registrar of written instructions given in accordance with the Depositary’s and the Note Registrar’s procedures, whereupon the Note Registrar shall reflect on its books and records the date and an increase in the principal amount of the transferee Global Note in an amount equal to the principal amount of the Physical Note or such beneficial interest in such transferor Global Note to be transferred, and the Trustee shall cancel the Physical Note so transferred or reflect on its books and records the date and a decrease in the principal amount of such transferor Global Note, as the case may be.

(3) Limitation on Issuance of Physical Notes . No Physical Note shall be exchanged for a beneficial interest in any Global Note, except in accordance with Section 312 and this Section 313 .

A beneficial owner of an interest in a Temporary Regulation S Global Note (and, in the case of any Additional Notes for which no Temporary Regulation S Global Note is issued,

 

73


any Regulation S Global Note) shall not be permitted to exchange such interest for a Physical Note or (in the case of such interest in a Temporary Regulation S Global Note) an interest in a Permanent Regulation S Global Note until a date, which must be after the end of the Restricted Period, on which the Company receives a certificate of beneficial ownership substantially in the form attached hereto as Exhibit C from such beneficial owner (a “ Certificate of Beneficial Ownership ”). Such date, as it relates to a Regulation S Global Note, is herein referred to as the “ Regulation S Note Exchange Date .”

(4) Private Placement Legend . Upon the transfer, exchange or replacement of Notes not bearing the Private Placement Legend, the Note Registrar shall deliver Notes that do not bear the Private Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the Private Placement Legend, the Note Registrar shall deliver only Notes that bear the Private Placement Legend unless ( i ) the requested transfer is after the relevant Resale Restriction Termination Date with respect to such Notes, ( ii ) upon written request of the Company after there is delivered to the Note Registrar an opinion of counsel (which opinion and counsel are satisfactory to the Company) to the effect that neither such legend nor the related restrictions on transfer are required in order to maintain compliance with the provisions of the Securities Act, ( iii ) with respect to a Regulation S Global Note (on or after the Regulation S Note Exchange Date with respect to such Regulation S Global Note) or Regulation S Physical Note, in each case with the agreement of the Company, or ( iv ) such Notes are sold or exchanged pursuant to an effective registration statement under the Securities Act.

(5) Other Transfers . The Note Registrar shall effect and register, upon receipt of a written request from the Company to do so, a transfer not otherwise permitted by this Section 313 , such registration to be done in accordance with the otherwise applicable provisions of this Section 313 , upon the furnishing by the proposed transferor or transferee of a written opinion of counsel (which opinion and counsel are satisfactory to the Company) to the effect that, and such other certifications or information as the Company may require (including, in the case of a transfer to an Accredited Investor (as defined in Rule 501(a)(1), (2), (3) or (7) under Regulation D promulgated under the Securities Act), a certificate substantially in the form attached hereto as Exhibit F ) to confirm that, the proposed transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

A Note that is a Restricted Security may not be transferred other than as provided in this Section 313 . A beneficial interest in a Global Note that is a Restricted Security may not be exchanged for a beneficial interest in another Global Note other than through a transfer in compliance with this Section 313 .

(6) General . By its acceptance of any Note bearing the Private Placement Legend, each Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as provided in this Indenture.

 

74


The Note Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 312 or this Section 313 (including all Notes received for transfer pursuant to this Section 313 ). The Company shall have the right to require the Note Registrar to deliver to the Company, at the Company’s expense, copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable written notice to the Note Registrar.

In connection with any transfer of any Note, the Trustee, the Note Registrar and the Company shall be entitled to receive, shall be under no duty to inquire into, may conclusively presume the correctness of, and shall be fully protected in relying upon the certificates, opinions and other information referred to herein (or in the forms provided herein, attached hereto or to the Notes, or otherwise) received from any Holder and any transferee of any Note regarding the validity, legality and due authorization of any such transfer, the eligibility of the transferee to receive such Note and any other facts and circumstances related to such transfer.

Section 314. Payment of Additional Interest . (a) Under certain circumstances, the Company will be obligated to pay certain additional amounts of interest to the Holders of certain Initial Notes, as more particularly set forth in such Initial Notes.

(b) Under certain circumstances the Company may be obligated to pay certain additional amounts of interest to the Holders of certain Initial Additional Notes, as may be more particularly set forth in such Initial Additional Notes.

(c) Prior to any Interest Payment Date on which any such additional interest is payable, the Company shall give notice to the Trustee of the amount of any such additional interest due on such Interest Payment Date. The Trustee shall have no obligation to independently determine whether additional interest is payable or to confirm the amount of additional interest that is in fact payable.

ARTICLE IV

COVENANTS

Section 401. Payment of Principal, Premium and Interest . The Company shall duly and punctually pay the principal of (and premium, if any) and interest on the Notes in accordance with the terms of the Notes and this Indenture. Principal amount (and premium, if any) and interest on the Notes shall be considered paid on the date due if the Company shall have deposited with the Paying Agent (if other than the Company or a wholly-owned Domestic Subsidiary of the Company) as of 12:00 p.m. New York City time on the due date money in immediately available funds and designated for and sufficient to pay all principal amount (and premium, if any) and interest then due. At the option of the Company, payment of Interest on a Note may be made through the Paying Agent by wire transfer of immediately available funds to the account designated to the Company by the Person entitled thereto or by check mailed to the address of the Person entitled thereto as such address shall appear in the Note Register.

 

75


Section 402. Maintenance of Office or Agency . (a) The Company shall maintain in the United States an office or agency where Notes may be presented or surrendered for payment, where Notes may be surrendered for transfer or exchange and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Company shall give prompt written notice to the Trustee of the location, and of any change in the location, of such office or agency. If at any time the Company shall fail to maintain such office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee; provided that no service of legal process may be made against the Company at any office of the Trustee.

(b) The Company may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all purposes and may from time to time rescind such designations.

The Company hereby designates the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance with Section 305 .

Section 403. Money for Payments to Be Held in Trust . If the Company shall at any time act as Paying Agent, it shall, on or before 12:00 p.m., New York City time, on each due date of the principal of (and premium, if any) or interest on, any of the Notes, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and shall promptly notify the Trustee in writing of its action or failure so to act.

If the Company is not acting as Paying Agent, it shall, on or prior to 12:00 p.m., New York City time, on each due date of the principal of (and premium, if any) or interest on, any Notes, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest, so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the Company shall promptly notify the Trustee in writing of its action or failure so to act.

If the Company is not acting as Paying Agent, the Company shall cause any Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section 403 , that such Paying Agent shall

(1) hold all sums held by it for the payment of principal of (and premium, if any) or interest on Notes of such series in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

76


(2) give the Trustee notice of any default by the Company (or any other obligor upon the Notes) in the making of any such payment of principal (and premium, if any) or interest;

(3) at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent; and

(4) acknowledge, accept and agree to comply in all respects with the provisions of this Indenture relating to the duties, rights and liabilities of such Paying Agent.

The Company may at any time, for the purpose of obtaining the satisfaction and discharge of such Notes, this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of principal of (and premium, if any) or interest on any Note and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof unless an applicable abandoned property law designates another Person, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease.

Section 404. [Reserved] .

Section 405. SEC Reports . So long as any Notes are outstanding:

(a) At any time prior to such time as the Company first becomes required to be subject to the reporting requirements of Section 13(a) or 15(d) of the Exchange Act, the Company shall furnish to the Trustee (if not publicly available on EDGAR):

(i) ( 1 ) within 90 days following the end of each fiscal year of the Company, beginning with the fiscal year ending December 31, 2016, the consolidated financial

 

77


statements of the Company for such year prepared in accordance with GAAP, together with a report thereon by the Company’s independent auditors, and a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” with respect to such financial statements substantially similar to that which would be included in an Annual Report on Form 10-K (as in effect on the Issue Date) filed with the SEC by the Company (if the Company were required to prepare and file such form); it being understood that ( x ) the Company shall not be required to include any separate consolidating financial information with respect to the Company, any Subsidiary Guarantor, any Related Corporation or any other affiliate of the Company, or any separate financial statements or information for the Company, any Subsidiary Guarantor, any Related Corporation or any other affiliate of the Company and ( y ) the consolidated financial statements of the Company or any similar reference shall, in each case, include each variable interest entity (including, without limitation, any Related Corporation to the extent applicable) that the Company would otherwise be required to consolidate under GAAP;

(ii) within 60 days after the end of each of the first three fiscal quarters in each fiscal year of the Company beginning with the fiscal quarter ending March 31, 2017, the condensed consolidated financial statements of the Company for such quarter prepared in accordance with GAAP, together with a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” with respect to such financial statements substantially similar to that which would be included in a Quarterly Report on Form 10-Q (as in effect on the Issue Date) filed with the SEC by the Company (if the Company were required to prepare and file such form); it being understood that ( x ) the Company shall not be required to include any separate consolidating financial information with respect to the Company, any Subsidiary Guarantor, any Related Corporation or any other affiliate of the Company, or any separate financial statements or information for the Company, any Subsidiary Guarantor, any Related Corporation or any other affiliate of the Company and ( y ) the consolidated financial statements of the Company or any similar reference shall, in each case, include each variable interest entity (including, without limitation, any Related Corporation to the extent applicable) that the Company is required to consolidate under GAAP; and

(iii) information substantially similar to the information that would be required to be included in a Current Report on Form 8-K (as in effect on the Issue Date) filed with the SEC by the Company (if the Company were required to prepare and file such form) pursuant to Item 1.03 (Bankruptcy or Receivership), 2.01 (Completion of Acquisition or Disposition of Assets) or 5.01 (Changes in Control of Registrant) of such form (and in any event excluding, for the avoidance of doubt, the financial statements, pro forma financial information and exhibits, if any, that would be required by Item 9.01 (Financial Statements and Exhibits) of such form), within 15 days after the date of filing that would have been required for a current report on Form 8-K.

 

78


In addition, to the extent not satisfied by the foregoing, for so long as the Notes remain subject to this paragraph (a), the Company will furnish to Holders thereof and prospective investors in such Notes, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) (as in effect on the Issue Date). In connection with this Section 405(a) , it being understood that the Company shall not be required to ( a ) comply with Section 302, Section 404 and Section 906 of the Sarbanes Oxley Act of 2002, as amended, or related items 307, 308 and 308T of Regulation S-K under the Securities Act or ( b ) comply with Rule 3-10 and Rule 3-16 of Regulation S-X under the Securities Act.

(b) Substantially concurrently with the furnishing or making available to the Trustee of the information specified in paragraph (a) above pursuant thereto, the Company shall also ( 1 ) use its commercially reasonable efforts ( i ) to post copies of such reports on such website as may be then maintained by the Company, or ( ii ) to post copies of such reports on a website (which may be nonpublic) to which access is given to Holders, prospective investors in the Notes (which prospective investors shall be limited to “qualified institutional buyers” within the meaning of Rule 144A of the Securities Act that certify their status as such to the reasonable satisfaction of the Company), and securities analysts (to the extent providing research and analysis of investment in the Notes to investors and prospective investors therein) and market-making financial institutions reasonably satisfactory to the Company, or ( iii ) otherwise to provide substantially comparable availability of such reports (as determined by the Company in good faith) (it being understood that, without limitation, making such reports available on Bloomberg or another private electronic information service shall constitute substantially comparable availability), or ( 2 ) to the extent the Company determines in good faith that it cannot make such reports available in the manner described in the preceding clause (1) after the use of its commercially reasonable efforts, furnish such reports to the Holders of the Notes, upon their request.

(c) Notwithstanding the foregoing, at any time following such time as the Company first becomes required to be subject to the reporting requirements of Section 13(a) or 15(d) of the Exchange Act, notwithstanding that the Company may not be required to be or remain subject to the reporting requirements of Section 13(a) or 15(d) of the Exchange Act, the Company will file with the SEC (unless such filing is not permitted under the Exchange Act or by the SEC), so long as the Notes are outstanding, the annual reports, information, documents and other reports that the Company is required to file with the SEC pursuant to such Section 13(a) or 15(d) or would be so required to file if the Company were so subject.

(d) If, at any time, any audited or reviewed financial statements or information required to be included in any such statement or filing pursuant to clauses (a) or (c) above are not reasonably available on a timely basis as a result of the Company’s (or, any Parent whose financial statements satisfy the Company’s reporting obligations under this Section 405) accountants not being “independent” (as defined pursuant to the Exchange Act and the rules and regulations of the SEC thereunder), the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under this Section 405) may, in lieu of

 

79


making such filing or transmitting or making available the financial statements or information, documents and reports so required to be filed, transmitted or made available, as the case may be, elect to make a filing on an alternative form or transmit or make available unaudited or unreviewed financial statements or information substantially similar to such required audited or reviewed financial statements or information, provided that ( i ) the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under this Section 405) shall in any event be required to make such filing and so transmit or make available, as applicable, such audited or reviewed financial statements or information no later than the first anniversary of the date on which the same was otherwise required pursuant to the preceding provisions of this paragraph (such initial date, the “ Reporting Date ”) and ( ii ) if the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under this Section 405) makes such an election and such filing has not been made, or such information, documents and reports have not been transmitted or made available, as the case may be, within 90 days after such Reporting Date, liquidated damages will accrue on the Notes at a rate of 0.50% per annum from the date that is 90 days after such Reporting Date to the earlier of ( x ) the date on which such filing has been made, or such information, documents and reports have been transmitted or made available, as the case may be, and ( y ) the first anniversary of such Reporting Date ( provided that not more than 0.50% per annum in liquidated damages shall be payable for any period regardless of the number of such elections by the Company). The Trustee shall have no independent responsibility to determine if liquidated damages are due or the amount of any such liquidated damages.

The Company will be deemed to have satisfied the requirements of this Section 405 if any Parent, in the case of paragraph (a), furnishes or makes available information regarding Parent of the type otherwise so required with respect to the Company under such paragraph (a) ( provided , that in the case of the financial statements required to be delivered pursuant to clauses (i) and (ii) of paragraph (a), the financial statements of Parent shall include a footnote depicting condensed consolidating financial information for the periods presented with a separate column for ( i ) the Parent and its Subsidiaries (other than the Company and its Subsidiaries) on a combined basis, ( ii ) the Company and its Subsidiaries on a combined basis, ( iii ) consolidating adjustments, and ( iv ) the total consolidated amounts), and in the case of paragraph (c), files and provides reports, documents and information regarding Parent of the types otherwise so required with respect to Company, in each case in filings with the SEC within the applicable time periods.

Subject to Article VII , delivery of reports, information and documents to the Trustee under this Section 405 is for informational purposes only and the Trustee’s receipt (or constructive receipt) of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate). Subject to Article VII , the Trustee is not obligated to confirm that the Company has complied with its obligations contained in this Section 405 to file such reports with the SEC or post such reports and information on its website.

 

80


Section 406. Statement as to Default . The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company commencing with the Company’s fiscal year ending December 31, 2016, an Officer’s Certificate to the effect that to the best knowledge of the signer thereof (on behalf of the Company) the Company is or is not in default in the performance and observance of any of the terms, provisions and conditions of this Indenture applicable to the Company (without regard to any period of grace or requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof of which such signer may have knowledge.

Section 407. Limitation on Indebtedness . (a) The Company will not, and will not permit any Restricted Subsidiary to, Incur any Indebtedness; provided , however , that the Company or any Restricted Subsidiary may Incur Indebtedness if on the date of the Incurrence of such Indebtedness, after giving effect to the Incurrence thereof, the Consolidated Coverage Ratio would be equal to or greater than 2.00:1.00.

(b) Notwithstanding the foregoing Section 407(a) , the Company and its Restricted Subsidiaries may Incur the following Indebtedness:

(i) Indebtedness Incurred pursuant to any Credit Facility (including, but not limited to, in respect of letters of credit or bankers’ acceptances issued or created thereunder) and Indebtedness Incurred other than pursuant to any Credit Facility, and (without limiting the foregoing), in each case, any Refinancing Indebtedness in respect thereof, in a maximum principal amount at any time outstanding not exceeding in the aggregate the amount equal to ( A ) $4,795.0 million, plus ( B ) the amount equal to the greater of ( x ) $1,000.0 million and ( y ) an amount equal to ( 1 ) the Borrowing Base less ( 2 ) the aggregate principal amount of Indebtedness Incurred by Special Purpose Entities that are Restricted Subsidiaries and then outstanding pursuant to clause (ix) of this paragraph (b), plus ( C ) in the event of any refinancing of any such Indebtedness, the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing;

(ii) Indebtedness ( A ) of any Restricted Subsidiary to the Company, or ( B ) of the Company or any Restricted Subsidiary to any Restricted Subsidiary; provided that, in the case of this Section 407(b)(ii) , any subsequent issuance or transfer of any Capital Stock of such Restricted Subsidiary to which such Indebtedness is owed, or other event, that results in such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of such Indebtedness (except to the Company or a Restricted Subsidiary) will be deemed, in each case, an Incurrence of such Indebtedness by the issuer thereof not permitted by this Section 407(b)(ii) ;

(iii) Indebtedness represented by the Notes (other than Additional Notes), any Indebtedness (other than the Indebtedness under the Senior Credit Facilities described in Section 407(b)(i) ) outstanding (or Incurred pursuant to any commitment outstanding) on the Issue Date and any Refinancing Indebtedness Incurred in respect of any Indebtedness described in this Section 407(b)(iii)  or Section 407(a) ;

 

81


(iv) Purchase Money Obligations, Capitalized Lease Obligations, and, in each case, any Refinancing Indebtedness with respect thereto; provided that the aggregate principal amount of such Purchase Money Obligations Incurred to finance the acquisition of Capital Stock of any Person at any time outstanding pursuant to this clause shall not exceed an amount equal to the greater of $325.0 million and 25.0% of Four Quarter Consolidated EBITDA;

(v) Indebtedness ( A ) supported by a letter of credit issued pursuant to any Credit Facility in a principal amount not exceeding the face amount of such letter of credit or ( B ) consisting of accommodation guarantees for the benefit of trade creditors of the Company or any of its Restricted Subsidiaries;

(vi) ( A ) Guarantees by the Company or any Restricted Subsidiary of Indebtedness or any other obligation or liability of the Company or any Restricted Subsidiary (other than any Indebtedness Incurred by the Company or such Restricted Subsidiary, as the case may be, in violation of this Section 407 ), or ( B ) without limiting Section 413 , Indebtedness of the Company or any Restricted Subsidiary arising by reason of any Lien granted by or applicable to such Person securing Indebtedness of the Company or any Restricted Subsidiary (other than any Indebtedness Incurred by the Company or such Restricted Subsidiary, as the case may be, in violation of this Section 407) ;

(vii) Indebtedness of the Company or any Restricted Subsidiary ( A ) arising from the honoring of a check, draft or similar instrument of such Person drawn against insufficient funds in the ordinary course of business, or ( B ) consisting of guarantees, indemnities, obligations in respect of earnouts or other purchase price adjustments, or similar obligations, Incurred in connection with the acquisition or disposition of any business, assets or Person;

(viii) Indebtedness of the Company or any Restricted Subsidiary in respect of ( A ) letters of credit, bankers’ acceptances or other similar instruments or obligations issued, or relating to liabilities or obligations incurred, in the ordinary course of business (including those issued to governmental entities in connection with self-insurance under applicable workers’ compensation statutes), ( B ) completion guarantees, surety, judgment, appeal or performance bonds, or other similar bonds, instruments or obligations, provided, or relating to liabilities or obligations incurred, in the ordinary course of business, ( C ) Hedging Obligations entered into for bona fide hedging purposes, ( D ) Management Guarantees or Management Indebtedness, ( E ) the financing of insurance premiums in the ordinary course of business, ( F ) take-or-pay obligations under supply arrangements incurred in the ordinary course of business, ( G ) netting, overdraft protection and other arrangements arising under standard business terms of any bank at which the Company or any Restricted Subsidiary maintains an overdraft, cash pooling or other similar facility or arrangement or ( H ) Bank Products Obligations;

 

82


(ix) Indebtedness ( A ) of a Special Purpose Subsidiary secured by a Lien on all or part of the assets disposed of in, or otherwise Incurred in connection with, a Financing Disposition or ( B ) otherwise Incurred in connection with a Special Purpose Financing; provided that ( 1 ) such Indebtedness is not recourse to the Company or any Restricted Subsidiary that is not a Special Purpose Subsidiary (other than with respect to Special Purpose Financing Undertakings); ( 2 ) in the event such Indebtedness shall become recourse to the Company or any Restricted Subsidiary that is not a Special Purpose Subsidiary (other than with respect to Special Purpose Financing Undertakings), such Indebtedness will be deemed to be, and must be classified by the Company as, Incurred at such time (or at the time initially Incurred) under one or more of the other provisions of this Section 407 for so long as such Indebtedness shall be so recourse; and ( 3 ) in the event that at any time thereafter such Indebtedness shall comply with the provisions of the preceding subclause (1), the Company may classify such Indebtedness in whole or in part as Incurred under this Section 407(b)(ix) ;

(x) Indebtedness of ( A ) the Company or any Restricted Subsidiary Incurred to finance or refinance, or otherwise Incurred in connection with, any acquisition of assets (including Capital Stock), business or Person, or any merger or consolidation of any Person with or into the Company or any Restricted Subsidiary, or ( B ) any Person that is acquired by or merged or consolidated with or into the Company or any Restricted Subsidiary (including Indebtedness thereof Incurred in connection with any such acquisition, merger or consolidation), provided that on the date of such acquisition, merger or consolidation, after giving effect thereto, either ( 1 ) the Company could Incur at least $1.00 of additional Indebtedness pursuant to Section 407(a) or ( 2 ) the Consolidated Coverage Ratio of the Company would equal or exceed the Consolidated Coverage Ratio of the Company immediately prior to giving effect thereto; and any Refinancing Indebtedness with respect to any such Indebtedness;

(xi) Contribution Indebtedness and any Refinancing Indebtedness with respect thereto;

(xii) Indebtedness issuable upon the conversion or exchange of shares of Disqualified Stock issued in accordance with Section 407(a) , and any Refinancing Indebtedness with respect thereto;

(xiii) Indebtedness of the Company or any Restricted Subsidiary in an aggregate principal amount at any time outstanding not exceeding an amount equal to the greater of $775.0 million and 60.0% of Four Quarter Consolidated EBITDA;

(xiv) ( A ) Indebtedness of the Company or any Restricted Subsidiary to any Related Corporation, incurred consistent with past practices on or prior to the Issue Date or in the ordinary course of business, pursuant to or in connection with Related

 

83


Corporation Contracts, ( B ) Guarantees by the Company or any Restricted Subsidiary of Indebtedness or any other obligation or liability of any Related Corporation, incurred consistent with past practices on or prior to the Issue Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts, ( C ) without limiting Section 407 , Indebtedness of the Company or any Restricted Subsidiary arising by reason of any Lien granted by or applicable to such Person securing Indebtedness of any Related Corporation, incurred consistent with past practices on or prior to the Issue Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts, and ( D ) Indebtedness of the Company or any Restricted Subsidiary in respect of letters of credit, banker’s acceptances or other similar instruments or obligations, issued, or relating to liabilities or obligations incurred on behalf of any Related Corporation, incurred consistent with past practices on or prior to the Issue Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts; and

(xv) Indebtedness representing Guarantees of Indebtedness of partnerships or joint ventures of the Company or of any of its Restricted Subsidiaries in an aggregate amount, when added to all other Indebtedness Incurred pursuant to this clause (xv) and then outstanding, not to exceed the greater of $260.0 million and 20.0% of Four Quarter Consolidated EBITDA.

(c) For purposes of determining compliance with, and the outstanding principal amount of any particular Indebtedness Incurred pursuant to and in compliance with, this Section 407 , ( i ) any other obligation of the obligor on such Indebtedness (or of any other Person who could have Incurred such Indebtedness under this Section 407 ) arising under any Guarantee, Lien or letter of credit, bankers’ acceptance or other similar instrument or obligation supporting such Indebtedness shall be disregarded to the extent that such Guarantee, Lien or letter of credit, bankers’ acceptance or other similar instrument or obligation secures the principal amount of such Indebtedness; ( ii ) in the event that Indebtedness meets the criteria of more than one of the types of Indebtedness described in Section 407(b) , the Company, in its sole discretion, shall classify such item of Indebtedness and may include the amount and type of such Indebtedness in one or more of the clauses of Section 407(b)  (including in part under one such clause and in part under another such clause); provided that (if the Company shall so determine) any Indebtedness Incurred pursuant to Section 407(b)(xiii) shall cease to be deemed Incurred or outstanding for purposes of such clause but shall be deemed Incurred for the purposes of Section 407(a) from and after the first date on which the Company or any Restricted Subsidiary could have Incurred such Indebtedness under Section 407(a) without reliance on such clause; ( iii ) in the event that Indebtedness could be Incurred in part under Section 407(a) , the Company, in its sole discretion, may classify a portion of such Indebtedness as having been Incurred under Section 407(a) and the remainder of such Indebtedness as having been Incurred under Section 407(b) ; ( iv ) the amount of Indebtedness issued at a price that is less than the principal amount thereof shall be equal to the amount of the liability in respect thereof determined in accordance with GAAP; ( v ) the principal amount of Indebtedness outstanding under any clause of Section 407(b)  shall be determined after giving effect to the application of proceeds of any such Indebtedness to refinance any such other Indebtedness; ( vi ) if any Indebtedness is Incurred

 

84


to refinance Indebtedness initially Incurred (or, Indebtedness Incurred to refinance Indebtedness initially Incurred) in reliance on a basket measured by reference to a percentage of Four Quarter Consolidated EBITDA at the time of Incurrence, and such refinancing would cause the percentage of Four Quarter Consolidated EBITDA restriction to be exceeded if calculated based on the Four Quarter Consolidated EBITDA on the date of such refinancing, such percentage of Four Quarter Consolidated EBITDA restriction shall not be deemed to be exceeded (and such refinancing Indebtedness shall be deemed permitted) so long as the principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing; and ( vii ) if any Indebtedness is Incurred to refinance Indebtedness initially Incurred (or, Indebtedness Incurred to refinance Indebtedness initially Incurred) in reliance on any provision of Section 407(b) measured by a dollar amount, such dollar amount shall not be deemed to be exceeded (and such refinancing Indebtedness shall be deemed permitted) to the extent the principal amount of such newly Incurred Indebtedness does not exceed the principal amount of such Indebtedness being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing.

Notwithstanding anything herein to the contrary, Indebtedness Outstanding on the Issue Date under the Senior Credit Facilities shall be classified as Incurred under Section 407(b) , and not under Section 407(a) .

(d) For purposes of determining compliance with any dollar denominated restriction on the Incurrence of Indebtedness denominated in a foreign currency, the dollar equivalent principal amount of such Indebtedness Incurred pursuant thereto shall be calculated based on the relevant currency exchange rate in effect on the date that such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in the case of revolving or deferred draw Indebtedness, provided that ( x ) the dollar equivalent principal amount of any such Indebtedness outstanding on the Issue Date shall be calculated based on the relevant currency exchange rate in effect on the Issue Date, ( y ) if such Indebtedness is Incurred to refinance other Indebtedness denominated in a foreign currency (or in a different currency from such Indebtedness so being Incurred), and such refinancing would cause the applicable dollar denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such dollar denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed ( i ) the outstanding or committed principal amount (whichever is higher) of such Indebtedness being refinanced plus ( ii ) the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing and ( z ) the dollar equivalent principal amount of Indebtedness denominated in a foreign currency and Incurred pursuant to the Senior Credit Facilities shall be calculated based on the relevant currency exchange rate in effect on, at the Company’s option, ( A ) the Issue Date, ( B ) any date on which any of the respective commitments under the applicable Senior Credit Facilities shall be reallocated between or among facilities or

 

85


subfacilities thereunder, or on which such rate is otherwise calculated for any purpose thereunder, or ( C ) the date of such Incurrence. The principal amount of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a different currency from the Indebtedness being refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on the date of such refinancing.

Section 408. [Reserved].

Section 409. Limitation on Restricted Payments . (a) The Company shall not, and shall not permit any Restricted Subsidiary, directly or indirectly, to ( i ) declare or pay any dividend or make any distribution on or in respect of its Capital Stock (including any such payment in connection with any merger or consolidation to which the Company is a party) except ( x ) dividends or distributions payable solely in its Capital Stock (other than Disqualified Stock) and ( y ) dividends or distributions payable to the Company or any Restricted Subsidiary (and, in the case of any such Restricted Subsidiary making such dividend or distribution, to other holders of its Capital Stock on no more than a pro rata basis, measured by value), ( ii ) purchase, redeem, retire or otherwise acquire for value any Capital Stock of the Company held by Persons other than the Company or a Restricted Subsidiary (other than any acquisition of Capital Stock deemed to occur upon the exercise of options if such Capital Stock represents a portion of the exercise price thereof), ( iii ) voluntarily purchase, repurchase, redeem, defease or otherwise voluntarily acquire or retire for value, prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any Subordinated Obligations (other than a purchase, repurchase, redemption, defeasance or other acquisition or retirement for value in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of such purchase, repurchase, redemption, defeasance or other acquisition or retirement) or ( iv ) make any Investment (other than a Permitted Investment) in any Person (any such dividend, distribution, purchase, repurchase, redemption, defeasance, other acquisition or retirement or Investment being herein referred to as a “ Restricted Payment ”), if at the time the Company or such Restricted Subsidiary makes such Restricted Payment after giving effect thereto:

(1) a Default shall have occurred and be continuing (or would result therefrom);

(2) the Company could not Incur at least an additional $1.00 of Indebtedness pursuant to Section 407(a) ; or

 

86


(3) the aggregate amount of such Restricted Payment and all other Restricted Payments (the amount so expended, if other than in cash, to be as determined in good faith by the Board of Directors, whose determination shall be conclusive and evidenced by a resolution of the Board of Directors) declared or made subsequent to the Issue Date and then outstanding would exceed, without duplication, the sum of:

(A) ( i ) $275.0 million plus ( ii ) 50.0% of the Consolidated Net Income accrued during the period (treated as one accounting period) beginning on October 1, 2016 to the end of the most recent fiscal quarter ending prior to the date of such Restricted Payment for which consolidated financial statements of the Company (or, any Parent whose financial statements satisfy the Company’s reporting obligations under Section 405 ) are available (or, in case such Consolidated Net Income shall be a negative number, 100.0% of such negative number);

(B) the aggregate Net Cash Proceeds and the fair value (as determined in good faith by the Company) of property or assets received ( x ) by the Company as capital contributions to the Company after the Issue Date or from the issuance or sale (other than to a Restricted Subsidiary) of its Capital Stock (other than Disqualified Stock) after the Issue Date (other than Excluded Contributions and Contribution Amounts) or ( y ) by the Company or any Restricted Subsidiary from the Incurrence by the Company or any Restricted Subsidiary after the Issue Date of Indebtedness that shall have been converted into or exchanged for Capital Stock of the Company (other than Disqualified Stock) or Capital Stock of any Parent, plus the amount of any cash and the fair value (as determined in good faith by the Company) of any property or assets, received by the Company or any Restricted Subsidiary upon such conversion or exchange;

(C) ( i ) the aggregate amount of cash and the fair value (as determined in good faith by the Company) of any property or assets received from dividends, distributions, interest payments, return of capital, repayments of Investments or other transfers of assets to the Company or any Restricted Subsidiary from any Unrestricted Subsidiary, including dividends or other distributions related to dividends or other distributions made pursuant to Section 409(b)(ix) plus ( ii ) the aggregate amount resulting from the redesignation of any Unrestricted Subsidiary as a Restricted Subsidiary (valued in each case as provided in the definition of “Investment”); and

(D) in the case of any disposition or repayment of any Investment constituting a Restricted Payment (without duplication of any amount deducted in calculating the amount of Investments at any time outstanding included in the amount of Restricted Payments), the aggregate amount of cash and the fair value (as determined in good faith by the Company) of any property or assets received by the Company or a Restricted Subsidiary with respect to all such dispositions and repayments.

(b) The provisions of Section 409(a) do not prohibit any of the following (each, a “ Permitted Payment ”):

(i) any purchase, redemption, repurchase, defeasance or other acquisition or retirement of Capital Stock of the Company or Subordinated Obligations made by

 

87


exchange (including any such exchange pursuant to the exercise of a conversion right or privilege in connection with which cash is paid in lieu of the issuance of fractional shares) for, or out of the proceeds of the issuance or sale of, Capital Stock of the Company (other than Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary) or a capital contribution to the Company, in each case other than Excluded Contributions and Contribution Amounts; provided that the Net Cash Proceeds from such issuance, sale or capital contribution shall be excluded in subsequent calculations under Section 409(a)(3)(B) ;

(ii) any dividend paid or redemption made within 60 days after the date of declaration thereof or of the giving of notice thereof, as applicable, if at such date of declaration or the giving of such notice, such dividend or redemption would have complied with this Section 409 ;

(iii) Investments or other Restricted Payments in an aggregate amount outstanding at any time not to exceed the amount of Excluded Contributions;

(iv) loans, advances, dividends or distributions by the Company to any Parent to permit any Parent to repurchase or otherwise acquire its Capital Stock (including any options, warrants or other rights in respect thereof), or payments by the Company to repurchase or otherwise acquire Capital Stock of any Parent or the Company (including any options, warrants or other rights in respect thereof), in each case from Management Investors (including any repurchase or acquisition by reason of the Company or any Parent retaining any Capital Stock, option, warrant or other right in respect of tax withholding obligations, and any related payment in respect of any such obligation), such payments, loans, advances, dividends or distributions not to exceed in any calendar year (net of repayments of any such loans or advances) $100.0 million (with unused amounts in any calendar year being carried over to the next two succeeding calendar years; provided that if any amount is so carried over, the application of the amount available in any calendar year under this clause (b)(iv) will be applied ( 1 ) first, from any amount carried over from the second preceding calendar year, ( 2 ) second, from any amount carried over from the immediately preceding calendar year, and ( 3 ) third, from the amount for such calendar year); provided that such amount in any calendar year may be increased by an amount not to exceed ( x ) the Net Cash Proceeds received by the Company since the Issue Date from, or as a capital contribution from, the issuance or sale to Management Investors of Capital Stock (including any options, warrants or other rights in respect thereof), to the extent such Net Cash Proceeds are not included in any calculation under Section 409(a)(3)(B)(x) , plus ( y ) the cash proceeds of key man life insurance policies received by the Company or any Restricted Subsidiary (or by any Parent and contributed to the Company) since the Issue Date to the extent such cash proceeds are not included in any calculation under Section 409(a)(3)(A) ; provided that any cancellation of Indebtedness owing to the Company or any Restricted Subsidiary by any Management Investor in connection with any repurchase or other acquisition of Capital Stock (including any options, warrants or other rights in respect thereof) from any Management Investor shall not constitute a Restricted Payment for purposes of this covenant or any other provision of this Indenture;

 

88


(v) the payment by the Company of, or loans, advances, dividends or distributions by the Company to any Parent to pay, dividends on the common stock, units or equity of the Company or any Parent in an amount not to exceed the greater of $75.0 million and 5.5% of Four Quarter Consolidated EBITDA in any fiscal year;

(vi) Restricted Payments (including loans or advances) in an aggregate amount outstanding at any time not to exceed an amount (net of repayments of any such loans or advances) equal to the greater of $425.0 million and 33.0% of Four Quarter Consolidated EBITDA;

(vii) loans, advances, dividends or distributions to any Parent or other payments by the Company or any Restricted Subsidiary ( A ) to satisfy or permit any Parent to satisfy obligations under the Transaction Agreements or ( B ) to pay or permit any Parent to pay (but without duplication) any Parent Expenses or any Related Taxes;

(viii) payments by the Company, or loans, advances, dividends or distributions by the Company to any Parent to make payments, to holders of Capital Stock of the Company or any Parent in lieu of issuance of fractional shares of such Capital Stock;

(ix) dividends or other distributions of, or Investments paid for or made with, Capital Stock, Indebtedness or other securities of Unrestricted Subsidiaries;

(x) any Restricted Payment pursuant to or in connection with the Transactions;

(xi) the declaration and payment of dividends to holders of any class or series of Disqualified Stock, or of any Preferred Stock of a Restricted Subsidiary, Incurred in accordance with the terms of Section 407 ;

(xii) any purchase, redemption, repurchase, defeasance or other acquisition or retirement of Subordinated Obligations ( x ) made by exchange for, or out of the proceeds of the Incurrence of, Indebtedness of the Company or Refinancing Indebtedness Incurred in compliance with Section 407 , ( y ) following the occurrence of a Change of Control (or other similar event described therein as a “ change of control ”), but only if the Company shall have complied with Section 415 and, if required, purchased all Notes tendered pursuant to the offer to repurchase all the Notes required thereby, prior to purchasing or repaying such Subordinated Obligations or ( z ) constituting Acquired Indebtedness;

(xiii) Restricted Payments in an aggregate amount outstanding not to exceed an amount equal to the sum of Total Leverage Excess Proceeds and Declined Excess Proceeds;

 

89


(xiv) any purchase, redemption or other acquisition or retirement for value of shares of Capital Stock of a Restricted Subsidiary owned by a Strategic Investor if such purchase, redemption or other acquisition or retirement for value is made for consideration not in excess of the fair market value (as determined in good faith by the Company) of such Capital Stock;

(xv) on or prior to July 1, 2017, the declaration and payment of dividends with respect to the Existing Mandatory Convertible Preferred in accordance with the terms thereof as in effect on the Issue Date; and

(xvi) any Restricted Payment; provided that on a pro forma basis after giving effect to such Restricted Payment the Consolidated Total Leverage Ratio would be equal to or less than 3.75:1.00;

provided that ( A ) in the case of clauses (ii), (v) and (viii) of this Section 409(b) , the net amount of any such Permitted Payment shall be included in subsequent calculations of the amount of Restricted Payments, ( B ) in all cases other than pursuant to clause (A) immediately above, the net amount of any such Permitted Payment shall be excluded in subsequent calculations of the amount of Restricted Payments, and ( C ) solely with respect to clauses (vi), (xiii) and (xvi) of this Section 409(b) , no Default or Event of Default shall have occurred and be continuing at the time of any such Permitted Payment after giving effect thereto. The Company, in its sole discretion, may classify any Investment or other Restricted Payment as being made in part under one of the clauses or subclauses of this Section 409 (or, in the case of any Investment, the clauses or subclauses of Permitted Investments) and in part under one or more other such clauses or subclauses (or, as applicable, clauses or subclauses).

Section 410. Limitation on Restrictions on Distributions from Restricted Subsidiaries . The Company will not, and will not permit any Restricted Subsidiary to, create or otherwise cause to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to ( i ) pay dividends or make any other distributions on its Capital Stock or pay any Indebtedness or other obligations owed to the Company, ( ii ) make any loans or advances to the Company or ( iii ) transfer any of its property or assets to the Company ( provided that dividend or liquidation priority between classes of Capital Stock, or subordination of any obligation (including the application of any remedy bars thereto) to any other obligation, will not be deemed to constitute such an encumbrance or restriction), except any encumbrance or restriction:

(1) pursuant to an agreement or instrument in effect at or entered into on the Issue Date, any Credit Facility, this Indenture or the Notes;

(2) pursuant to any agreement or instrument of a Person, or relating to Indebtedness or Capital Stock of a Person, which Person is acquired by or merged or consolidated with or into the Company or any Restricted Subsidiary, or which agreement or instrument is assumed by the Company or any Restricted Subsidiary in connection

 

90


with an acquisition of assets from such Person, or any other transaction entered into in connection with any such acquisition, merger or consolidation, as in effect at the time of such acquisition, merger, consolidation or transaction (except to the extent that such Indebtedness was incurred to finance, or otherwise in connection with, such acquisition, merger, consolidation or transaction); provided that for purposes of this clause (2), if a Person other than the Company is the Successor Company with respect thereto, any Subsidiary thereof or agreement or instrument of such Person or any such Subsidiary shall be deemed acquired or assumed, as the case may be, by the Company or a Restricted Subsidiary, as the case may be, when such Person becomes such Successor Company;

(3) pursuant to an agreement or instrument (a “ Refinancing Agreement ”) effecting a refinancing of Indebtedness Incurred or outstanding pursuant or relating to, or that otherwise extends, renews, refunds, refinances or replaces, any agreement or instrument referred to in clause (1) or (2) of this Section 410 or this clause (3) (an “ Initial Agreement ”) or that is, or is contained in, any amendment, supplement or other modification to an Initial Agreement or Refinancing Agreement (an “ Amendment ”); provided , however , that the encumbrances and restrictions contained in any such Refinancing Agreement or Amendment taken as a whole are not materially less favorable to the Holders of the Notes than encumbrances and restrictions contained in the Initial Agreement or Initial Agreements to which such Refinancing Agreement or Amendment relates (as determined in good faith by the Company);

(4) ( A ) pursuant to any agreement or instrument that restricts in a customary manner the assignment or transfer thereof, or the subletting, assignment or transfer of any property or asset subject thereto, ( B ) by virtue of any transfer of, agreement to transfer, option or right with respect to, or Lien on, any property or assets of the Company or any Restricted Subsidiary not otherwise prohibited by this Indenture, ( C ) contained in mortgages, pledges or other security agreements securing Indebtedness or other obligations of the Company or a Restricted Subsidiary to the extent restricting the transfer of the property or assets subject thereto, ( D ) pursuant to customary provisions restricting dispositions of real property interests set forth in any reciprocal easement agreements of the Company or any Restricted Subsidiary, ( E ) pursuant to Purchase Money Obligations that impose encumbrances or restrictions on the property or assets so acquired, ( F ) on cash or other deposits, net worth or inventory imposed by customers or suppliers under agreements entered into in the ordinary course of business, ( G ) pursuant to customary provisions contained in agreements and instruments entered into in the ordinary course of business (including but not limited to leases and licenses) or in joint venture and other similar agreements or in shareholder, partnership, limited liability company and other similar agreements in respect of non-wholly owned Restricted Subsidiaries, ( H ) that arises or is agreed to in the ordinary course of business and does not detract from the value of property or assets of the Company or any Restricted Subsidiary in any manner material to the Company or such Restricted Subsidiary, (I) pursuant to Hedging Obligations or Bank Products Obligations or (J) pursuant to Related Corporation Contracts;

 

91


(5) with respect to any agreement for the direct or indirect disposition of Capital Stock of any Person, property or assets, imposing restrictions with respect to such Person, Capital Stock, property or assets pending the closing of such sale or disposition;

(6) by reason of any applicable law, rule, regulation or order, or required by any regulatory authority having jurisdiction over the Company or any Restricted Subsidiary or any of their businesses, including any such law, rule, regulation, order or requirement applicable in connection with such Restricted Subsidiary’s status (or the status of any Subsidiary of such Restricted Subsidiary) as a Captive Insurance Subsidiary; or

(7) pursuant to an agreement or instrument ( A ) relating to any Indebtedness permitted to be Incurred subsequent to the Issue Date pursuant to Section 407 ( i ) if the encumbrances and restrictions contained in any such agreement or instrument taken as a whole are not materially less favorable to the Holders of the Notes than the encumbrances and restrictions contained in the Initial Agreements (as determined in good faith by the Company) or ( ii ) if such encumbrance or restriction is not materially more disadvantageous to the Holders of the Notes than is customary in comparable financings (as determined in good faith by the Company) and either ( x ) the Company determines in good faith that such encumbrance or restriction will not materially affect the Company’s ability to make principal or interest payments on the Notes or ( y ) such encumbrance or restriction applies only if a default occurs in respect of a payment or financial covenant relating to such Indebtedness, ( B ) relating to any sale of receivables by or Indebtedness of a Foreign Subsidiary or ( C ) relating to Indebtedness of or a Financing Disposition by or to or in favor of any Special Purpose Entity.

Section 411. Limitation on Sales of Assets and Subsidiary Stock . (a) The Company will not, and will not permit any Restricted Subsidiary to, make any Asset Disposition unless:

(i) the Company or such Restricted Subsidiary receives consideration (including by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise) at the time of such Asset Disposition at least equal to the fair market value of the shares and assets subject to such Asset Disposition, as such fair market value (on the date a legally binding commitment for such Asset Disposition was entered into) may be determined (and shall be determined, to the extent such Asset Disposition or any series of related Asset Dispositions involves aggregate consideration in excess of $100.0 million) in good faith by the Company, whose determination shall be conclusive (including as to the value of all noncash consideration);

 

92


(ii) in the case of any Asset Disposition (or series of related Asset Dispositions) having a Fair Market Value (on the date a legally binding commitment for such Asset Disposition was entered into) of $100.0 million or more, at least 75.0% of the consideration therefor (excluding, in the case of an Asset Disposition (or series of related Asset Dispositions), any consideration by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise, that are not Indebtedness) received by the Company or such Restricted Subsidiary is in the form of cash; and

(iii) an amount equal to 100.0% (as may be adjusted pursuant to clause (3) of the last proviso to this Section 411(a)(iii) ) of the Net Available Cash from such Asset Disposition is applied by the Company (or any Restricted Subsidiary, as the case may be) as follows:

(A) first , either ( x ) to the extent the Company or such Restricted Subsidiary elects (or is required by the terms of any Credit Facility Indebtedness, any Senior Indebtedness of the Company or any Subsidiary Guarantor or any Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor), to prepay, repay or purchase any such Indebtedness or (in the case of letters of credit, bankers’ acceptances or other similar instruments) cash collateralize any such Indebtedness (in each case other than Indebtedness owed to the Company or a Restricted Subsidiary) within 450 days after the later of the date of such Asset Disposition and the date of receipt of such Net Available Cash, or ( y ) to the extent the Company or such Restricted Subsidiary elects, to invest in Additional Assets (including by means of an investment in Additional Assets by a Restricted Subsidiary with an amount equal to Net Available Cash received by the Company or another Restricted Subsidiary) within 450 days from the later of the date of such Asset Disposition and the date of receipt of such Net Available Cash, or, if such investment in Additional Assets is a project authorized by the Board of Directors that will take longer than such 450 days to complete, the period of time necessary to complete such project;

(B) second , to the extent of the balance of such Net Available Cash after application in accordance with clause (A) above (such balance, the “ Excess Proceeds ”), to make an offer to purchase the Notes and (to the extent the Company or such Restricted Subsidiary elects, or is required by the terms thereof) to make an offer to purchase, redeem or repay and/or to purchase, redeem or repay any other Senior Indebtedness of the Company or a Restricted Subsidiary, pursuant and subject to Section 411(b) and Section 411(c) and the agreements governing such other Indebtedness; provided the offer to purchase the Notes shall be on no less than a pro rata basis with such other Senior Indebtedness; and

(C) third , to the extent of the balance of such Net Available Cash after application in accordance with clauses (A) and (B) above (the aggregate of any

 

93


such amounts, “ Declined Excess Proceeds ”), to fund (to the extent consistent with any other applicable provision of this Indenture) any general corporate purpose (including but not limited to the repurchase, repayment or other acquisition or retirement of any Subordinated Obligations and the making of other Restricted Payments);

provided however , that ( 1 ) in connection with any prepayment, repayment or purchase of Indebtedness pursuant to clause (A)(x) or (B) above, the Company or such Restricted Subsidiary will retire such Indebtedness and will cause the related loan commitment (if any) to be permanently reduced in an amount equal to the principal amount so prepaid, repaid or purchased; ( 2 ) the Company (or any Restricted Subsidiary, as the case may be) may elect to invest in Additional Assets prior to receiving the Net Available Cash attributable to any given Asset Disposition ( provided that such investment shall be made no earlier than the earliest of notice to the Trustee of the relevant Asset Disposition, execution of a definitive agreement for the relevant Asset Disposition, and consummation of the relevant Asset Disposition) and deem the amount so invested to be applied pursuant to and in accordance with clause (A)(y) above with respect to such Asset Disposition; and ( 3 ) the foregoing percentage in this Section 411(a)(iii) shall be reduced to 50% if the Consolidated Total Leverage Ratio would be equal to or less than 3.50:1.00 after giving pro forma effect to any application of such Net Available Cash as set forth herein (any Net Available Cash in respect of Asset Dispositions not required to be applied in accordance with this clause (iii) as a result of the application of this proviso shall collectively constitute “ Total Leverage Excess Proceeds ”).

Notwithstanding the foregoing provisions of this Section 411 , the Company and the Restricted Subsidiaries shall not be required to apply any Net Available Cash or equivalent amount in accordance with this Section 411 except to the extent that the aggregate Net Available Cash from all Asset Dispositions or equivalent amount that is not applied in accordance with this Section 411 (excluding all Total Leverage Excess Proceeds) exceeds $100.0 million. If the aggregate principal amount of Notes and/or other Indebtedness of the Company or a Restricted Subsidiary validly tendered and not withdrawn (or otherwise subject to purchase, redemption or repayment) in connection with an offer pursuant to clause (B) above exceeds the Excess Proceeds, the Excess Proceeds will be apportioned between such Notes and such other Indebtedness of the Company or a Restricted Subsidiary, with the portion of the Excess Proceeds payable in respect of such Notes to equal the lesser of ( x ) the Excess Proceeds amount multiplied by a fraction, the numerator of which is the outstanding principal amount of such Notes and the denominator of which is the sum of the outstanding principal amount of the Notes and the outstanding principal amount of the relevant other Indebtedness of the Company or a Restricted Subsidiary, and ( y ) the aggregate principal amount of Notes validly tendered and not withdrawn.

For the purposes of Section 411(a)(ii) , the following are deemed to be cash: ( 1 ) Temporary Cash Investments and Cash Equivalents; ( 2 ) the assumption of Indebtedness of the Company (other than Disqualified Stock of the Company) or any Restricted Subsidiary and the release of the Company or such Restricted Subsidiary from all liability on payment of the principal amount of such Indebtedness in connection with such Asset Disposition;

 

94


( 3 ) Indebtedness of any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of such Asset Disposition, to the extent that the Company and each other Restricted Subsidiary are released from any Guarantee of payment of the principal amount of such Indebtedness in connection with such Asset Disposition; ( 4 ) securities received by the Company or any Restricted Subsidiary from the transferee that are converted by the Company or such Restricted Subsidiary into cash within 180 days; ( 5 ) consideration consisting of Indebtedness of the Company or any Restricted Subsidiary; ( 6 ) Additional Assets; and ( 7 ) any Designated Noncash Consideration received by the Company or any of its Restricted Subsidiaries in an Asset Disposition having an aggregate Fair Market Value, taken together with all other Designated Noncash Consideration received pursuant to this clause, not to exceed an aggregate amount at any time outstanding equal to the greater of $425.0 million and 33.0% of Four Quarter Consolidated EBITDA (with the Fair Market Value of each item of Designated Noncash Consideration being measured on the date a legally binding commitment for such disposition (or, if later, for the payment of such item) was entered into and without giving effect to subsequent changes in value).

(b) In the event of an Asset Disposition that requires the purchase of Notes pursuant to Section 411(a)(iii)(B) , the Company will be required to purchase Notes tendered pursuant to an offer by the Company for the Notes (the “ Offer ”) at a purchase price of 100.0% of their principal amount plus accrued and unpaid interest to the date of purchase in accordance with the procedures (including prorating in the event of oversubscription) set forth in Section 411(c) . If the aggregate purchase price of the Notes tendered pursuant to the Offer is less than the Net Available Cash allotted to the purchase of Notes, the remaining Net Available Cash will be available to the Company and the Restricted Subsidiaries for use in accordance with Section 411(a)(iii)(B) (to repay other Indebtedness of the Company or a Restricted Subsidiary) or Section 411(a)(iii)(C) . The Company shall not be required to make an Offer for Notes pursuant to this Section 411 if the Net Available Cash available therefor (after application of the proceeds as provided in Section 411(a)(iii)(A) ) is less than $100.0 million for any particular Asset Disposition (which lesser amounts shall be carried forward for purposes of determining whether an Offer is required with respect to the Net Available Cash from any subsequent Asset Disposition). No Note will be repurchased in part if less than the Minimum Denomination in original principal amount of such Note would be left outstanding.

(c) The Company shall, not later than 45 days after the Company becomes obligated to make an Offer pursuant to this Section 411 , send a notice to each Holder with a copy to the Trustee stating: ( 1 ) that an Asset Disposition that requires the purchase of a portion of the Notes has occurred and that such Holder has the right (subject to the prorating described below) to require the Company to purchase a portion of such Holder’s Notes at a purchase price in cash equal to 100.0% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of Holders of record on a record date to receive interest on the relevant Interest Payment Date falling prior to or on the purchase date); ( 2 ) the repurchase date (which shall be no earlier than 10 days nor later than 60 days from the date such notice is sent); ( 3 ) the instructions determined by the Company, consistent with this Section 411 , that a Holder must follow in order to have its Notes purchased; and ( 4 ) the amount of the Offer. If,

 

95


upon the expiration of the period for which the Offer remains open, the aggregate principal amount of Notes surrendered by Holders exceeds the amount of the Offer, the Company shall select the Notes to be purchased on a pro rata basis (with such adjustments as may be deemed appropriate by the Company so that only Notes in the Minimum Denomination or integral multiples of $1,000 in excess thereof shall be purchased).

(d) The Company will comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations in connection with the repurchase of Notes pursuant to this Section 411 . To the extent that the provisions of any securities laws or regulations conflict with provisions of this Section 411 , the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 411 by virtue thereof.

Section 412. Limitation on Transactions with Affiliates . (a) The Company will not, and will not permit any Restricted Subsidiary to, directly or indirectly, enter into or conduct any transaction or series of related transactions (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate of the Company (an “ Affiliate Transaction ”) involving aggregate consideration in excess of $50.0 million unless ( i ) the terms of such Affiliate Transaction are not materially less favorable to the Company or such Restricted Subsidiary, as the case may be, than those that could be obtained at the time in a transaction with a Person who is not such an Affiliate and ( ii ) if such Affiliate Transaction involves aggregate consideration in excess of $100.0 million, the terms of such Affiliate Transaction have been approved by a majority of the Board of Directors. For purposes of this Section 412(a) , any Affiliate Transaction shall be deemed to have satisfied the requirements set forth in this Section 412(a) if ( x ) such Affiliate Transaction is approved by a majority of the Disinterested Directors or ( y ) in the event there are no Disinterested Directors, a fairness opinion is provided by a nationally recognized appraisal or investment banking firm with respect to such Affiliate Transaction.

(b) The provisions of Section 412(a) will not apply to:

(i) any Restricted Payment Transaction,

(ii) ( 1 ) the entering into, maintaining or performance of any employment or consulting contract, collective bargaining agreement, benefit plan, program or arrangement, related trust agreement or any other similar arrangement for or with any current or former management member, employee, officer or director or consultant of or to the Company, any Restricted Subsidiary or any Parent heretofore or hereafter entered into in the ordinary course of business, including vacation, health, insurance, deferred compensation, severance, retirement, savings or other similar plans, programs or arrangements, ( 2 ) payments, compensation, performance of indemnification or contribution obligations, the making or cancellation of loans in the ordinary course of business to any such management members, employees, officers, directors or consultants, ( 3 ) any issuance, grant or award of stock, options, other equity related interests or other

 

96


securities, to any such management members, employees, officers, directors or consultants, ( 4 ) the payment of reasonable fees to directors of the Company or any of its Subsidiaries or any Parent (as determined in good faith by the Company, such Subsidiary or such Parent), or ( 5 ) Management Advances and payments in respect thereof (or in reimbursement of any expenses referred to in the definition of such term),

(iii) any transaction between or among any of the Company, one or more Restricted Subsidiaries, or one or more Special Purpose Entities,

(iv) any transaction arising out of agreements or instruments in existence on the Issue Date, and any payments made pursuant thereto,

(v) any transaction in the ordinary course of business on terms that are fair to the Company and its Restricted Subsidiaries in the reasonable determination of the Board of Directors or senior management of the Company, or are not materially less favorable to the Company or the relevant Restricted Subsidiary than those that could be obtained at the time in a transaction with a Person who is not an Affiliate of the Company,

(vi) any transaction in the ordinary course of business, or approved by a majority of the Board of Directors, between the Company or any Restricted Subsidiary and any Affiliate of the Company controlled by the Company that is a joint venture or similar entity,

(vii) [reserved],

(viii) the Transactions, all transactions in connection therewith (including but not limited to the financing thereof), and all fees and expenses paid or payable in connection with the Transactions,

(ix) any issuance or sale of Capital Stock (other than Disqualified Stock) of the Company or any capital contribution to the Company,

(x) [reserved], and

(xi) any transaction between or among the Company or any Restricted Subsidiary and any Related Corporation pursuant to or in connection with a Related Corporation Contract.

Section 413. Limitation on Liens . The Company shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, create or permit to exist any Lien (other than Permitted Liens) on any of its property or assets (including Capital Stock of any other Person), whether owned on the date of this Indenture or thereafter acquired, securing any Indebtedness (the “ Initial Lien ”), unless contemporaneously therewith effective provision is made to secure the Indebtedness due under this Indenture and the Notes or, in respect of Liens on

 

97


any Restricted Subsidiary’s property or assets, any Subsidiary Guarantee of such Restricted Subsidiary, equally and ratably with (or on a senior basis to, in the case of Subordinated Obligations or Guarantor Subordinated Obligations) such obligation for so long as such obligation is so secured by such Initial Lien. Any such Lien thereby created in favor of the Notes or any such Subsidiary Guarantee will be automatically and unconditionally released and discharged upon ( i ) the release and discharge of the Initial Lien to which it relates, ( ii ) in the case of any such Lien in favor of any such Subsidiary Guarantee, upon the termination and discharge of such Subsidiary Guarantee in accordance with the terms of Section 1303 or ( iii ) any sale, exchange or transfer (other than a transfer constituting a transfer of all or substantially all of the assets of the Company that is governed by Section 501 ) to any Person not an Affiliate of the Company of the property or assets secured by such Initial Lien, or of all of the Capital Stock held by the Company or any Restricted Subsidiary in, or all or substantially all the assets of, any Restricted Subsidiary creating such Initial Lien.

Section 414. Future Subsidiary Guarantors . The Company will cause each Domestic Subsidiary that guarantees payment by the Company or any Subsidiary Guarantor of any Indebtedness of the Company or any such Subsidiary Guarantor under either of the Senior Credit Facilities or any Capital Market Indebtedness (including by reason of being a borrower under the Senior ABL Facility on a joint and several basis with the Company) to execute and deliver to the Trustee within 30 days a supplemental indenture or other instrument pursuant to which such Domestic Subsidiary will guarantee payment of the Notes, whereupon such Domestic Subsidiary will become a Subsidiary Guarantor for all purposes under this Indenture. In addition, the Company may, at its option, elect to cause any Subsidiary that is not a Subsidiary Guarantor to guarantee payment of the Notes and become a Subsidiary Guarantor.

Section 415. Purchase of Notes Upon a Change of Control . (a) Upon the occurrence after the Issue Date of a Change of Control, each Holder of Notes will have the right to require the Company to repurchase all or any part of such Notes at a purchase price in cash equal to 101.0% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of repurchase (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the purchase date and pursuant to Section 307 ); provided , however , that the Company shall not be obligated to repurchase Notes pursuant to this Section 415 in the event that it has exercised its right to redeem all of the Notes as provided in Article X .

(b) In the event that, at the time of such Change of Control, the terms of any Credit Facility Indebtedness constituting Designated Senior Indebtedness restrict or prohibit the repurchase of the Notes pursuant to this Section 415 , then prior to the sending of the notice to Holders provided for in Section 415(c) but in any event not later than 30 days following the date the Company obtains actual knowledge of any Change of Control (unless the Company has exercised its right to redeem all the Notes as provided in Article X ), the Company shall, or shall

 

98


cause one or more of its Subsidiaries to, ( i ) repay in full all such Credit Facility Indebtedness subject to such terms or offer to repay in full all such Credit Facility Indebtedness and repay the Credit Facility Indebtedness of each lender who has accepted such offer or ( ii ) obtain the requisite consent under the agreements governing such Credit Facility Indebtedness to permit the repurchase of the Notes as provided for in Section 415(c) . The Company shall first comply with the provisions of the immediately preceding sentence before it shall be required to repurchase Notes pursuant to the provisions set forth in this Section 415 . The Company’s failure to comply with the provisions of this Section 415(b) or Section 415(c) shall constitute an Event of Default under Section 601(iv) and not under Section 601(ii) .

(c) Unless the Company has exercised its right to redeem all the Notes as described in Article X , the Company shall, not later than 30 days following the date the Company obtains actual knowledge of any Change of Control having occurred, send a notice (a “ Change of Control Offer ”) to each Holder with a copy to the Trustee stating: ( 1 ) that a Change of Control has occurred or may occur and that such Holder has, or upon such occurrence will have, the right to require the Company to purchase such Holder’s Notes at a purchase price in cash equal to 101.0% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of Holders of record on a record date to receive interest on the relevant Interest Payment Date falling prior to or on the purchase date); ( 2 ) the repurchase date (which shall be no earlier than 10 days nor later than 60 days from the date such notice is sent, except that such notice may be delivered more than 60 days prior to the purchase date if the purchase date is delayed as provided in clause (4) of this Section 415(c) ); ( 3 ) the instructions determined by the Company, consistent with this Section 415 , that a Holder must follow in order to have its Notes purchased; and ( 4 ) if such notice is sent prior to the occurrence of a Change of Control, that such offer is conditioned on the occurrence of such Change of Control and that the purchase date may, in the Company’s discretion, be delayed until such time as the Change of Control has occurred. No Note will be repurchased in part if less than the Minimum Denomination in original principal amount of such Note would be left outstanding.

(d) The Company will not be required to make a Change of Control Offer upon a Change of Control if a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer.

(e) If Holders of not less than 90% in aggregate principal amount of the outstanding Notes of any series validly tender and do not withdraw such Notes in a Change of Control Offer and the Company, or any third party making a Change of Control Offer in lieu of the Company as described in Section 415(d) , purchases all of the Notes of such series validly tendered and not withdrawn by such Holders, the Company or such third party will have the right, upon not less than 10 nor more than 60 days’ prior notice, given not more than 30 days following such purchase pursuant to such Change of Control Offer, to redeem all Notes of such series that remain outstanding following such purchase at a price in cash equal to 101% of the principal amount thereof plus accrued and unpaid interest to but excluding the date of such redemption (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the Redemption Date).

 

99


(f) The Company will comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations in connection with the repurchase of Notes pursuant to this Section 415 . To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 415 , the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 415 by virtue thereof.

Section 416. Suspension of Covenants on Achievement of Investment Grade Rating . (a) If on any day following the Issue Date ( a ) the Notes have Investment Grade Ratings from both Rating Agencies, and ( b ) no Default has occurred and is continuing under this Indenture, then, beginning on that day (the “ Suspension Date ”) subject to the provisions of the following paragraph, the covenants listed under Section 407 , Section 409 , Section 410 , Section 411 , Section 412 , Section 414 , Section 501(a)(iii) and Section 501(a)(iv) (collectively, the “ Suspended Covenants ”) will be suspended. During any period that the foregoing covenants have been suspended, the Board of Directors may not designate any of the Company’s Subsidiaries as Unrestricted Subsidiaries unless such designation would have complied with Section 409 as if Section 409 would have been in effect during such period.

(b) If on any subsequent date one or both of the Rating Agencies downgrade the ratings assigned to the Notes below an Investment Grade Rating, the foregoing covenants will be reinstated as of and from the date of such rating decline (any such date, a “ Reversion Date ”). The period of time between the Suspension Date and the Reversion Date is referred to as the “ Suspension Period .” Upon such reinstatement, all Indebtedness Incurred during the Suspension Period will be deemed to have been Incurred under the exception provided by Section 407(b)(iii) . With respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments will be calculated as if Section 409 had been in effect prior to, but not during, the Suspension Period. For purposes of Section 411 , upon the occurrence of a Reversion Date the amount of Net Available Cash not applied in accordance with such covenant will be deemed to be reset to zero. In addition, for purposes of Section 412 , all agreements and arrangements entered into by the Company and any Restricted Subsidiary with an Affiliate of the Company during the Suspension Period prior to such Reversion Date will be deemed to have been entered into on or prior to the Issue Date, and for purposes of Section 410 , all contracts entered into during the Suspension Period prior to such Reversion Date that contain any of the encumbrances or restrictions subject to such covenant will be deemed to have been existing on the Issue Date. The Subsidiary Guarantees of the Subsidiary Guarantors will be suspended during the Suspension Period.

 

100


(c) During the Suspension Period, any reference in the definitions of “Permitted Liens” and “Unrestricted Subsidiary” to Section 407 or any provision thereof shall be construed as if such covenant were in effect during the Suspension Period.

Notwithstanding that the Suspended Covenants may be reinstated, no Default or Event of Default will be deemed to have occurred as a result of any actions taken by the Company or any Subsidiary (including for the avoidance of doubt any failure to comply with the Suspended Covenants) or other events that occurred during any Suspension Period (or upon termination of the Suspension Period or after that time arising out of events that occurred or actions taken during the Suspension Period) and the Company and any Subsidiary will be permitted, without causing a Default or Event of Default or breach of any kind under this Indenture, to honor, comply with or otherwise perform any contractual commitments or obligations entered into during a Suspension Period following a Reversion Date and to consummate the transactions contemplated thereby.

(d) The Company shall deliver promptly to the Trustee an Officer’s Certificate notifying it of the occurrence of any Suspension Date or any Reversion Date, but failure to so notify the Trustee shall not invalidate the occurrence of any Suspension Date or Reversion Date and shall not constitute a Default or Event of Default by the Company. The Trustee shall have no independent obligation to determine if a Suspension Period has commenced or terminated or to notify Holders regarding the same.

ARTICLE V

SUCCESSORS

Section 501. When the Company May Merge, Etc . (a) The Company will not consolidate with or merge with or into, or convey, lease or otherwise transfer all or substantially all its assets to, any Person, unless:

(i) the resulting, surviving or transferee Person (the “ Successor Company ”) will be a Person organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and the Successor Company (if not the Company) will expressly assume all the obligations of the Company under the Notes and this Indenture by executing and delivering to the Trustee a supplemental indenture or one or more other documents or instruments;

(ii) immediately after giving effect to such transaction (and treating any Indebtedness that becomes an obligation of the Successor Company or any Restricted Subsidiary as a result of such transaction as having been Incurred by the Successor Company or such Restricted Subsidiary at the time of such transaction), no Default will have occurred and be continuing;

 

101


(iii) immediately after giving effect to such transaction, either ( A ) the Company (or, if applicable, the Successor Company with respect thereto) could Incur at least $1.00 of additional Indebtedness pursuant to Section 407(a) or ( B ) the Consolidated Coverage Ratio of the Company (or, if applicable, the Successor Company with respect thereto) would equal or exceed the Consolidated Coverage Ratio of the Company immediately prior to giving effect to such transaction;

(iv) each Subsidiary Guarantor (other than ( x ) any Subsidiary Guarantor that will be released from its obligations under its Subsidiary Guarantee in connection with such transaction and ( y ) any party to any such consolidation or merger) shall have delivered a supplemental indenture or other document or instrument, confirming its Subsidiary Guarantee (other than any Subsidiary Guarantee that will be discharged or terminated in connection with such transaction); and

(v) the Company will have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each to the effect that such consolidation, merger or transfer complies with the provisions described in this Section 501(a) , provided that ( x ) in giving such opinion such counsel may rely on an Officer’s Certificate as to compliance with the foregoing clauses (ii) and (iii) and as to any matters of fact, and ( y ) no Opinion of Counsel will be required for a consolidation, merger or transfer described in Section 501(b) .

Any Indebtedness that becomes an obligation of the Company (or, if applicable, the Successor Company with respect thereto) or any Restricted Subsidiary (or that is deemed to be Incurred by any Restricted Subsidiary that becomes a Restricted Subsidiary) as a result of any such transaction undertaken in compliance with this Section 501 , and any Refinancing Indebtedness with respect thereto, shall be deemed to have been Incurred in compliance with Section 407 .

(b) Clauses (ii) and (iii) of Section 501(a) will not apply to any transaction in which the Company consolidates or merges with or into or transfers all or substantially all its properties and assets to ( x ) an Affiliate incorporated or organized for the purpose of reincorporating or reorganizing the Company in another jurisdiction or changing its legal structure to a corporation or other entity or ( y ) a Restricted Subsidiary of the Company so long as all assets of the Company and the Restricted Subsidiaries immediately prior to such transaction (other than Capital Stock of such Restricted Subsidiary) are owned by such Restricted Subsidiary and its Restricted Subsidiaries immediately after the consummation thereof. Section 501(a) will not apply to ( 1 ) any transaction in which any Restricted Subsidiary consolidates with, merges into or transfers all or part of its assets to the Company or ( 2 ) the Transactions.

(c) For purposes of this Section 501 , so long as at the time of any Minority Business Disposition or any Minority Business Offering the Minority Business Disposition Condition is met, the Minority Business Assets shall not be deemed at any time to constitute all or substantially all of the assets of the Company, and any sale or transfer of all or any part of the Minority Business Assets (whether directly or indirectly, whether by sale or transfer of any such assets, or of any Capital Stock or other interest in any Person holding such assets, or any

 

102


consolidation or merger, or any combination thereof, and whether in one or more transactions, or otherwise, including any Minority Business Offering or any Minority Business Disposition) shall not be deemed at any time to constitute a consolidation with or merger with or into, or conveyance, transfer or lease of all or substantially all of the assets of the Company to, any Person.

Section 502. Successor Company Substituted . Upon any transaction involving the Company in accordance with Section 501 in which the Company is not the Successor Company, the Successor Company will succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture, and thereafter the predecessor Company shall be relieved of all obligations and covenants under this Indenture, except that the predecessor Company in the case of a lease of all or substantially all its assets shall not be released from the obligation to pay the principal of and interest on the Notes.

ARTICLE VI

REMEDIES

Section 601. Events of Default . An “ Event of Default ” means the occurrence of the following:

(i) a default in any payment of interest on any Note when due, continued for a period of 30 days;

(ii) a default in the payment of principal of any Note when due, whether at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration of acceleration or otherwise;

(iii) the failure by the Company to comply with its obligations under Section 501(a) ;

(iv) the failure by the Company to comply for 30 days after the notice specified in the penultimate paragraph of this Section 601 with any of its obligations under Section 415 (other than a failure to purchase the Notes);

(v) the failure by the Company to comply for ( x ) 180 days after notice with any of its obligations under the covenant described under Section 405 or ( y ) 60 days after the notice specified in the penultimate paragraph of this Section 601 with its other agreements contained in the Notes or this Indenture;

(vi) the failure by any Subsidiary Guarantor to comply for 45 days after the notice specified in the penultimate paragraph of this Section 601 with its obligations under its Subsidiary Guarantee;

 

103


(vii) the failure by the Company or any Restricted Subsidiary to pay any Indebtedness for borrowed money (other than Indebtedness owed to the Company or any Restricted Subsidiary) within any applicable grace period after final maturity or the acceleration of any such Indebtedness by the holders thereof because of a default, if the total amount of such Indebtedness so unpaid or accelerated exceeds $150.0 million or its foreign currency equivalent; provided that no Default or Event of Default will be deemed to occur with respect to any such Indebtedness that is paid or otherwise acquired or retired (or for which such failure to pay or acceleration is waived or rescinded) within 20 Business Days after such failure to pay or such acceleration;

(viii) the taking of any of the following actions by the Company or a Significant Subsidiary, pursuant to or within the meaning of any Bankruptcy Law:

(A) the commencement of a voluntary case;

(B) the consent to the entry of an order for relief against it in an involuntary case;

(C) the consent to the appointment of a Custodian of it or for any substantial part of its property; or

(D) the making of a general assignment for the benefit of its creditors;

(ix) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

(A) is for relief against the Company or any Significant Subsidiary in an involuntary case;

(B) appoints a Custodian of the Company or any Significant Subsidiary or for any substantial part of its property; or

(C) orders the winding up or liquidation of the Company or any Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 days;

(x) the rendering of any judgment or decree for the payment of money in an amount (net of any insurance or indemnity payments actually received in respect thereof prior to or within 90 days from the entry thereof, or to be received in respect thereof in the event any appeal thereof shall be unsuccessful) in excess of $150.0 million or its foreign currency equivalent against the Company or a Significant Subsidiary that is not discharged, or bonded or insured by a third Person, if such judgment or decree remains outstanding for a period of 90 days following such judgment or decree and is not discharged, waived or stayed; or

 

104


(xi) the failure of any Subsidiary Guarantee by a Subsidiary Guarantor that is a Significant Subsidiary to be in full force and effect (except as contemplated by the terms thereof or of this Indenture) or the denial or disaffirmation in writing by any Subsidiary Guarantor that is a Significant Subsidiary of its obligations under this Indenture or any Subsidiary Guarantee (other than by reason of the termination of this Indenture or such Subsidiary Guarantee or the release of such Subsidiary Guarantee in accordance with such Subsidiary Guarantee or this Indenture), if such Default continues for 10 days.

The foregoing will constitute Events of Default whatever the reason for any such Event of Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body.

The term “ Bankruptcy Law ” means Title 11, United States Code, or any similar Federal, state or foreign law for the relief of debtors. The term “ Custodian ” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

However, a Default under Section 601(iv) , Section 601(v)  or Section 601(vi)  will not constitute an Event of Default until the Trustee or the Holders of at least 30.0% in principal amount of the Outstanding Notes (which contain such Defaults) notify the Company in writing of the Default and the Company does not cure such Default within the time specified in such clause after receipt of such notice. Such notice must specify the Default, demand that it be remedied and state that such notice is a “ Notice of Default .” When a Default or an Event of Default is cured, it ceases.

The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written notice in the form of an Officer’s Certificate of any Event of Default under Section 601(vii)  or Section 601(x)  and any event that with the giving of notice or the lapse of time would become an Event of Default under Section 601(iv) , Section 601(v)  or Section 601(vi) , its status and what action the Company is taking or proposes to take with respect thereto.

Section 602. Acceleration of Maturity; Rescission and Annulment . If an Event of Default (other than an Event of Default specified in Section 601(viii) or Section 601(ix) , with respect to the Company) occurs and is continuing, unless otherwise specified for Notes of any series in the applicable Notes Supplemental Indenture, as contemplated by Section 301 , the Trustee by written notice to the Company, or the Holders of at least 30.0% in principal amount of the Outstanding Notes (which contain such Defaults) by written notice to the Company and the Trustee, in either case specifying in such notice the respective Event of Default and that such notice is a “notice of acceleration,” may declare the principal of and accrued but unpaid interest on all the Notes to be due and payable. Upon the effectiveness of such a declaration, such principal and interest will be due and payable immediately.

 

105


Notwithstanding the foregoing, if an Event of Default specified in Section 601(viii) or Section 601(ix) , with respect to the Company, occurs and is continuing, unless otherwise specified for Notes of any series in the applicable Notes Supplemental Indenture, as contemplated by Section 301 , the principal of and accrued but unpaid interest on all the Outstanding Notes will ipso facto become immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

The Holders of a majority in principal amount of the Outstanding Notes (which contain such Event of Default which has been accelerated) by notice to the Company and the Trustee may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or waived except non-payment of principal or interest that has become due solely because of such acceleration. No such rescission shall affect any subsequent Default or impair any right consequent thereto.

Section 603. Other Remedies; Collection Suit by Trustee . If an Event of Default occurs and is continuing, the Trustee may, but is not obligated under this Section 603 to, pursue any available remedy to collect the payment of principal of or interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture. If an Event of Default specified in Section 601(i) or 601(ii) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount then due and owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided for in Section 707 .

Section 604. Trustee May File Proofs of Claim . The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and the Holders allowed in any judicial proceedings relative to the Company or any other obligor upon the Notes, its creditors or its property and, unless prohibited by law or applicable regulations, may vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other amounts due the Trustee under Section 707 .

No provision of this Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

106


Section 605. Trustee May Enforce Claims Without Possession of Notes . All rights of action and claims under this Indenture or the Notes may be prosecuted and enforced by the Trustee without the possession of any of the Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Notes in respect of which such judgment has been recovered.

Section 606. Application of Money Collected . Any money or property collected by the Trustee pursuant to this Article VI shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money or property on account of principal (or premium, if any) or interest, upon presentation of the Notes and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

First : to the payment of all amounts due the Trustee under Section 707 ;

Second : to the payment of the amounts then due and unpaid upon the Notes for principal (and premium, if any) and interest, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Notes for principal (and premium, if any) and interest, respectively; and

Third : to the Company.

Section 607. Limitation on Suits . Subject to Section 608 , no Holder may pursue any remedy with respect to this Indenture or the Notes unless:

(i) such Holder has previously given the Trustee written notice that an Event of Default is continuing;

(ii) Holders of at least 30.0% in principal amount of the Outstanding Notes (which contain such Event of Default) have requested the Trustee in writing to pursue the remedy;

(iii) such Holder or Holders have offered to the Trustee security or indemnity satisfactory to it against any loss, liability or expense;

(iv) the Trustee has not complied with the request within 60 days after receipt of the request and the offer of security or indemnity; and

(v) the Holders of a majority in principal amount of the Outstanding Notes have not given the Trustee a written direction inconsistent with the request within such 60-day period.

 

107


A Holder may not use this Indenture to affect, disturb or prejudice the rights of another Holder, to obtain a preference or priority over another Holder or to enforce any right under this Indenture except in the manner herein provided and for the equal and ratable benefit of all Holders.

Section 608. [Reserved] .

Section 609. Restoration of Rights and Remedies . If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture or any Note and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case the Company, any other obligor upon the Notes, the Trustee and the Holders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

Section 610. Rights and Remedies Cumulative . No right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

Section 611. Delay or Omission Not Waiver . No delay or omission of the Trustee or of any Holder of any Note to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article VI or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

Section 612. Control by Holders . The Holders of not less than a majority in aggregate principal amount of the Outstanding Notes (which contain the Event of Default for which a remedy is being enforced) shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee, provided that

(1) such direction shall not be in conflict with any rule of law or with this Indenture, and

 

108


(2) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.

However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or, subject to Section 701 , that the Trustee determines is unduly prejudicial to the rights of any other Holder or that would involve the Trustee in personal liability; provided , however , that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction. Prior to taking any action under this Indenture, the Trustee shall be entitled to indemnification satisfactory to it in its sole discretion against all losses and expenses caused by taking or not taking such action.

Section 613. Waiver of Past Defaults . The Holders of not less than a majority in aggregate principal amount of the Outstanding Notes (which contain such Default) may on behalf of the Holders of all the Notes waive any past Default hereunder and its consequences, except a Default

(1) in the payment of principal of or interest on any Note (which may only be waived with the consent of each Holder of Notes affected), or

(2) in respect of a covenant or provision hereof that pursuant to the second paragraph of Section 902 cannot be modified or amended without the consent of the Holder of each Outstanding Note affected.

Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. In case of any such waiver, the Company, any other obligor upon the Notes, the Trustee and the Holders shall be restored to their former positions and rights hereunder and under the Notes, respectively.

Section 614. Undertaking for Costs . All parties to this Indenture agree, and each Holder of any Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture or the Notes, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant. This Section 614 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10.0% in principal amount of the Outstanding Notes (which contain the applicable Event of Default), or to any suit instituted by any Holder for the enforcement of the payment of principal of (or premium, if any) or interest on any Note on or after the respective Stated Maturity or Interest Payment Dates expressed in such Note.

 

109


Section 615. Waiver of Stay, Extension or Usury Laws . The Company agrees (to the extent that it may lawfully do so) that it shall not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other similar law wherever enacted, now or at any time hereafter in force, that would prohibit or forgive the Company from paying all or any portion of the principal of (or premium, if any) or interest on the Notes contemplated herein or in the Notes or that may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

ARTICLE VII

THE TRUSTEE

Section 701. Certain Duties and Responsibilities . (a) Except during the continuance of an Event of Default,

(1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

(2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture, but need not verify the contents thereof.

(b) In case an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

(c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that ( i ) this paragraph does not limit the effect of Section 701(a) ; ( ii ) the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and ( iii ) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 612 .

 

110


(d) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

(e) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 701 and Section 703 .

Section 702. Notice of Defaults . If a Default occurs and is continuing and is known to the Trustee, the Trustee must send within 90 days after it occurs, to all Holders as their names and addresses appear in the Note Register, notice of such Default hereunder known to the Trustee unless such Default shall have been cured or waived; provided , however , that, except in the case of a Default in the payment of principal of, or premium, if any, or interest on any Note, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Holders.

Section 703. Certain Rights of Trustee . Subject to the provisions of Section 701 :

(1) the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

(2) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order thereof, and any resolution of any Person’s board of directors shall be sufficiently evidenced if certified by an Officer of such Person as having been duly adopted and being in full force and effect on the date of such certificate;

(3) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s Certificate of the Company;

(4) the Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

 

111


(5) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction;

(6) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, other evidence of indebtedness or other paper or document;

(7) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

(8) to the extent permitted by applicable law, the Trustee shall not be liable to any Person for special, punitive, indirect, consequential or incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the likelihood of such loss or damage; and

(9) the permissive rights of the Trustee to do things enumerated in this Indenture shall not be construed as a duty unless so specified herein.

Section 704. Not Responsible for Recitals or Issuance of Notes . The recitals contained herein and in the Notes, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Notes, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Notes and perform its obligations hereunder and that the statements made by it in a Statement of Eligibility and Qualification on Form T-1 supplied to the Company and any other obligor upon the Notes in connection with the registration of any Notes or Subsidiary Guarantees issued hereunder are and will be true and accurate subject to the qualifications set forth therein. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of the Notes or the proceeds thereof.

Section 705.  May Hold Notes . The Trustee, any Authenticating Agent, any Paying Agent, any Note Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Notes and, subject to Section 708 and Section 713 , may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Note Registrar or such other agent.

 

112


Section 706. Money Held in Trust . Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Company.

Section 707. Compensation and Reimbursement . The Company agrees,

(1) to pay to the Trustee from time to time the reasonable compensation agreed to by the Company in writing for all services rendered by the Trustee hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

(2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable out-of-pocket expenses incurred by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or willful misconduct; and

(3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or willful misconduct on the Trustee’s part, arising out of or in connection with the administration of the trust or trusts hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder.

The Company need not pay for any settlement made without its consent (which consent shall not be unreasonably withheld). The provisions of this Section 707 shall survive the termination of this Indenture or the resignation and removal of the Trustee.

The Trustee shall have a claim prior to the Notes for payment of all amounts due the Trustee under this Section 707 on all money or property held or collected by the Trustee, other than money or property held in trust to pay the principal of and interest on any Notes.

Section 708. Conflicting Interests . If the Trustee has or shall acquire a conflicting interest within the meaning of the TIA, the Trustee shall eliminate such interest, apply to the SEC for permission to continue as Trustee with such conflict or resign, to the extent and in the manner provided by, and subject to the provisions of, the TIA and this Indenture. The Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under this Indenture with respect to Initial Notes and Additional Notes, or a trustee under any other indenture between the Company and the Trustee.

 

113


Section 709. Corporate Trustee Required; Eligibility . There shall at all times be one (and only one) Trustee hereunder. The Trustee shall be a Person that is eligible pursuant to the TIA to act as such and has a combined capital and surplus of at least $50.0 million. If any such Person publishes reports of condition at least annually, pursuant to law or to the requirements of its supervising or examining authority, then for the purposes of this Section 709 and to the extent permitted by the TIA, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 709 , it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

Section 710. Resignation and Removal; Appointment of Successor . No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 711 .

The Trustee may resign at any time by giving written notice thereof to the Company. If the instrument of acceptance by a successor Trustee required by Section 711 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee.

The Trustee may be removed at any time by Act of the Holders of a majority in principal amount of the Outstanding Notes delivered to the Trustee and to the Company.

If at any time:

(1) the Trustee shall fail to comply with Section 708 after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Note for at least six months, or

(2) the Trustee shall cease to be eligible under Section 709 and shall fail to resign after written request therefor by the Company or by any such Holder, or

(3) the Trustee shall become incapable of acting or shall be adjudged bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,

then, in any such case, ( A ) the Company may remove the Trustee, or ( B ) subject to Section 614 , any Holder who has been a bona fide Holder of a Note for at least six months may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

 

114


If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, the Company shall promptly appoint a successor Trustee and shall comply with the applicable requirements of Section 711 . If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Notes delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 711 , become the successor Trustee and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee shall have been so appointed by the Company or the Holders and accepted appointment in the manner required by Section 711 , then, subject to Section 614 , any Holder who has been a bona fide Holder of a Note for at least six months may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee.

The Company shall give notice of each resignation and each removal of the Trustee and each appointment of a successor Trustee to all Holders in the manner provided in Section 110 . Each notice shall include the name of the successor Trustee and the address of its Corporate Trust Office.

Notwithstanding the replacement of the Trustee pursuant to this Section 710 , the Company’s obligations under Section 707 shall continue for the benefit of the retiring Trustee.

Section 711. Acceptance of Appointment by Successor . In case of the appointment hereunder of a successor Trustee, every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder.

Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to above.

No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article VII .

 

115


Section 712. Merger, Conversion, Consolidation or Succession to Business . Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article VII , without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Notes shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Notes so authenticated with the same effect as if such successor Trustee had itself authenticated such Notes.

Section 713. Preferential Collection of Claims Against the Company . If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Notes), the Trustee shall be subject to the provisions of the TIA regarding the collection of claims against the Company (or any such other obligor) or realizing on certain property received by it in respect of such claims.

Section 714. Appointment of Authenticating Agent . The Trustee may appoint an Authenticating Agent acceptable to the Company to authenticate the Notes. Any such appointment shall be evidenced by an instrument in writing signed by a Trust Officer, a copy of which instrument shall be promptly furnished to the Company. Unless limited by the terms of such appointment, an Authenticating Agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication (or execution of a certificate of authentication) by the Trustee includes authentication (or execution of a certificate of authentication) by such Authenticating Agent. An Authenticating Agent has the same rights as any Note Registrar, Paying Agent or agent for service of notices and demands.

ARTICLE VIII

HOLDERS’ LISTS AND REPORTS BY

TRUSTEE AND THE COMPANY

Section 801. The Company to Furnish Trustee Names and Addresses of Holders . The Company will furnish or cause to be furnished to the Trustee

(1) semi-annually, not more than 10 days after each Regular Record Date, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders of such series as of such Regular Record Date, and

 

116


(2) at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished;

provided , however , that if and to the extent and so long as the Trustee shall be the Note Registrar, no such list need be furnished pursuant to this Section 801 .

Section 802. Preservation of Information; Communications to Holders . The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list, if any, furnished to the Trustee as provided in Section 801 and the names and addresses of Holders received by the Trustee in its capacity as Note Registrar; provided , however , that if and so long as the Trustee shall be the Note Registrar, the Note Register shall satisfy the requirements relating to such list. None of the Company, any Subsidiary Guarantor or the Trustee or any other Person shall be under any responsibility with regard to the accuracy of such list. The Trustee may destroy any list furnished to it as provided in Section 801 upon receipt of a new list so furnished.

The rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Notes, and the corresponding rights and privileges of the Trustee, shall be as provided by the TIA.

Every Holder of Notes, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company, nor the Trustee, nor any agent of any of them, shall be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the TIA.

Section 803. Reports by Trustee . Within 60 days after each December 1, beginning with December 1, 2017, the Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the TIA at the times and in the manner provided pursuant thereto for so long as any Notes remain outstanding. A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee or any applicable listing agent with each stock exchange upon which any Notes are listed, with the SEC and with the Company. The Company shall notify the Trustee in writing when any Notes are listed on any stock exchange, but any failure to so notify the Trustee shall not constitute a Default or Event of Default by Company.

ARTICLE IX

AMENDMENT, SUPPLEMENT OR WAIVER

Section 901. Without Consent of Holders . Without the consent of the Holders of any Notes, the Company, the Trustee and (as applicable) any Subsidiary Guarantor may amend or supplement this Indenture or the Notes for any of the following purposes:

(1) to cure any ambiguity, mistake, omission, defect or inconsistency,

 

117


(2) to provide for the assumption by a successor of the obligations of the Company, or a Subsidiary Guarantor under this Indenture or the Notes,

(3) to provide for uncertificated Notes in addition to or in place of certificated Notes,

(4) to secure the Notes,

(5) to evidence a successor Trustee,

(6) to add Guarantees with respect to the Notes, or to confirm and evidence the release, termination or discharge of any Guarantee or Lien with respect to or securing the Notes when such release, termination or discharge is provided for under this Indenture or the Notes,

(7) to add to the covenants of the Company for the benefit of the Holders or to surrender any right or power conferred upon the Company,

(8) to provide for or confirm the issuance of Initial Notes or Additional Notes,

(9) to conform the text of this Indenture (including any supplemental indenture or any other instrument pursuant to which Additional Notes are issued), the Notes (including any Additional Notes), or any Subsidiary Guarantee to any provision of the “Description of Notes” section of the Offering Memorandum, or, with respect to any Additional Notes and any supplemental indenture or other instrument pursuant to which such Additional Notes are issued, to the “Description of Notes” section of the offering memorandum relating to the issuance of such Additional Notes solely to the extent that such “Description of Notes” section provides for terms of such Additional Notes that differ from the terms of the Initial Notes, in accordance with Section 301 ,

(10) to increase the minimum denomination of the Notes to equal the dollar equivalent of €1,000 rounded up to the nearest $1,000 (including for purposes of redemption or repurchase of any Note in part),

(11) to make any change that does not materially adversely affect the rights of any Holder under the Notes or this Indenture, or

(12) to comply with any requirement of the SEC in connection with the qualification of this Indenture under the TIA or otherwise.

 

118


Section 902. With Consent of Holders . Subject to Section 608 , the Company, the Trustee and (as applicable) any Subsidiary Guarantor may amend or supplement this Indenture or the Notes with the written consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Notes (including consents obtained in connection with a tender offer or exchange offer for Notes) and the Holders of not less than a majority in aggregate principal amount of the Outstanding Notes by written notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer for Notes) may waive any existing Default or Event of Default or compliance by the Company, or any Subsidiary Guarantor with any provision of this Indenture, the Notes or any Subsidiary Guarantee; provided that ( x ) if any such amendment or waiver will only affect one series of Notes (or less than all series of Notes) then outstanding under this Indenture, then only the consent of the Holders of a majority in principal amount of the Notes of such series then outstanding (including, in each case, consents obtained in connection with a tender offer or exchange offer for Notes) shall be required and ( y ) if any such amendment or waiver by its terms will affect a series of Notes in a manner different and materially adverse relative to the manner such amendment or waiver affects other series of Notes, then the consent of the Holders of a majority in principal amount of the Notes of such series then outstanding (including, in each case, consents obtained in connection with a tender offer or exchange offer for Notes) shall be required.

Notwithstanding the provisions of this Section 902 , without the consent of each Holder affected, an amendment or waiver, including a waiver pursuant to Section 613 , may not:

(i) reduce the principal amount of the Notes whose Holders must consent to an amendment or waiver;

(ii) reduce the rate of or extend the time for payment of interest on any Note;

(iii) reduce the principal of or extend the Stated Maturity of any Note;

(iv) reduce the premium payable upon the redemption of any Note or change the date on which any Note may be redeemed as described in Section 6 of the applicable Notes Supplemental Indenture;

(v) make any Note payable in money other than that stated in such Note;

(vi) amend or waive the legal right of any Holder of any Note to receive payment of principal of and interest on such Note on or after the respective Stated Maturity for such principal or Interest Payment Date for such interest expressed in such Note, or to institute suit for the enforcement of any such payment on or after such respective Stated Maturity or Interest Payment Date; or

(vii) make any change in the amendment or waiver provisions described in this paragraph.

 

119


It shall not be necessary for the consent of the Holders under this Section 902 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such consent approves the substance thereof.

After an amendment, supplement or waiver under this Section 902 becomes effective, the Company shall send to the Holders, with a copy to the Trustee, a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to send such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any supplemental indenture or the effectiveness of any such amendment, supplement or waiver.

Section 903. Execution of Amendments, Supplements or Waivers . The Trustee shall sign any amendment, supplement or waiver authorized pursuant to this Article IX if the amendment, supplement or waiver does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign it. In signing or refusing to sign such amendment, supplement or waiver, the Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Officer’s Certificate and an Opinion of Counsel to the effect that the execution of such amendment, supplement or waiver is authorized or permitted or complies with this Indenture, that all conditions precedent to such amendment, supplement or waiver required by this Indenture have been complied with and that such amendment, supplement or waiver is a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms. For the avoidance of doubt, no Officer’s Certificate or Opinion of Counsel shall be required on the Issue Date for the execution of any Note Supplemental Indenture, supplemental indenture pursuant to Section 501(a)(i) or Guarantor Supplemental Indenture.

Section 904. Revocation and Effect of Consents . Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of that Note or any Note that evidences all or any part of the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. Subject to the following paragraph of this Section 904 , any such Holder or subsequent Holder may revoke the consent as to such Holder’s Note by written notice to the Trustee or the Company, received by the Trustee or the Company, as the case may be, before the date on which the Trustee receives an Officer’s Certificate from the Company certifying that the Holders of the requisite principal amount of Notes have consented (and not theretofore revoked such consent) to the amendment, supplement or waiver. The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment, supplement or waiver as set forth in Section 108 .

After an amendment, supplement or waiver becomes effective, it shall bind every Holder of Notes, unless it makes a change described in any of clauses (i) through (vii) of the second paragraph of Section 902 . In that case, the amendment, supplement or waiver shall bind each Holder of a Note who has consented to it and every subsequent Holder of such Note or any Note that evidences all or any part of the same debt as the consenting Holder’s Note.

 

120


Section 905. [Reserved] .

Section 906. Notation on or Exchange of Notes . If an amendment, supplement or waiver changes the terms of a Note, the Trustee shall (if required by the Company and in accordance with the specific direction of the Company) request the Holder of the Note to deliver it to the Trustee. The Trustee shall (if required by the Company and in accordance with the specific direction of the Company) place an appropriate notation on the Note about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver.

ARTICLE X

REDEMPTION OF NOTES

Section 1001. Applicability of Article . Notes of or within any series that are redeemable in whole or in part before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified for Notes of any series in the applicable Notes Supplemental Indenture, as contemplated by Section 301 ) in accordance with this Article X .

Section 1002. [ Reserved ].

Section 1003. Election to Redeem; Notice to Trustee . In case of any redemption at the election of the Company of less than all of the Notes of any series, the Company should, at least two Business Days (but not more than 60 days) (except that such notice may be delivered more than 60 days prior to the Redemption Date if such notice is issued in connection with the defeasance of Notes pursuant to Section 1201 or satisfaction and discharge of this Indenture pursuant to Section 1101 or if the Redemption Date is delayed as provided in Section 6 of the applicable Notes Supplemental Indenture) prior to the date on which notice is required to be sent or caused to be sent to Holders pursuant to Section 1005 , notify the Trustee of such Redemption Date and of the principal amount of Notes to be redeemed, but failure to so notify the Trustee shall not invalidate any notice given in accordance with Section 1005 and shall not constitute a Default or Event of Default by the Company.

 

121


Section 1004. Selection by Trustee of Notes to Be Redeemed . Unless otherwise specified for Notes of any series in the applicable Notes Supplemental Indenture, as contemplated by Section 301 , in the case of any partial redemption, selection of the Notes for redemption will be made by the Trustee not more than 60 days prior to the Redemption Date (except that such notice may be delivered more than 60 days prior to the Redemption Date if such notice is issued in connection with the defeasance of Notes pursuant to Section 1201 or a satisfaction and discharge of this Indenture pursuant to Section 1101 or if the Redemption Date is delayed as provided in Section 6 of the applicable Notes Supplemental Indenture) on a pro rata basis, by lot or by such other method as the Trustee shall deem to be fair and appropriate, and in the case of global notes, in accordance with the procedures of the Depositary, in integral multiples of $1,000, although no Note of the Minimum Denomination in original principal amount or less will be redeemed in part.

The Trustee shall promptly notify the Company in writing of the Notes selected for redemption and, in the case of any Note selected for partial redemption, the principal amount thereof to be redeemed. On and after the Redemption Date, interest will cease to accrue on Notes or portions thereof called for redemption.

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Notes shall relate, in the case of any Note redeemed or to be redeemed only in part, to the portion of the principal amount of such Note that has been or is to be redeemed.

Section 1005. Notice of Redemption . Subject to the final paragraph of Section 110 , unless otherwise specified for Notes of any series in the applicable Notes Supplemental Indenture, as contemplated by Section 301 , notice of redemption or purchase as provided in Section 1001 shall be given electronically or, at the Company’s option, by first-class mail, postage prepaid, sent not less than 10 nor more than 60 days prior to the Redemption Date (except that such notice may be delivered more than 60 days prior to the Redemption Date if such notice is issued in connection with the defeasance of Notes pursuant to Section 1201 or satisfaction and discharge of this Indenture pursuant to Section 1101 or if the Redemption Date is delayed as provided in Section 6 of the applicable Notes Supplemental Indenture) to each Holder of Notes to be redeemed, at such Holder’s address appearing in the Note Register.

Any such notice shall state:

(1) the expected Redemption Date,

(2) the redemption price (or the formula by which the redemption price will be determined),

 

122


(3) if less than all Outstanding Notes are to be redeemed, the identification (and, in the case of partial redemption, the portion of the respective principal amounts) of the Notes to be redeemed,

(4) that, on the Redemption Date, the redemption price will become due and payable upon each such Note, and that, unless the Company defaults in making such redemption payment or the Paying Agent is prohibited from making such payment pursuant to the terms of this Indenture, interest thereon shall cease to accrue from and after said date, and

(5) the place where such Notes are to be surrendered for payment of the redemption price.

In addition, if such redemption, purchase or notice is subject to satisfaction (or, waiver by the Company in its sole discretion) of one or more conditions precedent, as permitted by Section 6 of the applicable Notes Supplemental Indenture, such notice shall describe each such condition, and if applicable, shall state that, in the Company’s discretion, the Redemption Date may be delayed until such time as any or all such conditions shall be satisfied (or waived by the Company in its sole discretion), or such redemption or purchase may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been (or, in the Company’s sole determination, may not be) satisfied (or waived by the Company in its sole discretion) by the Redemption Date, or by the Redemption Date as so delayed.

The Company may provide in such notice that payment of the redemption price and the performance of the Company’s obligations with respect to such redemption may be performed by another Person.

Notice of such redemption or purchase of Notes to be so redeemed or purchased at the election of the Company shall be given by the Company or, at the Company’s request (made to the Trustee at least 15 days (or such shorter period as shall be reasonably satisfactory to the Trustee) prior to the Redemption Date), by the Trustee in the name and at the expense of the Company. Any such request will set forth the information to be stated in such notice, as provided by this Section 1005 .

The notice if sent in the manner herein provided shall be conclusively presumed to have been given, whether or not the Holder receives such notice. In any case, failure to give or send or any defect in the notice to the Holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note.

Section 1006. Deposit of Redemption Price . Unless otherwise specified for Notes of any series in the applicable Notes Supplemental Indenture, as contemplated by Section 301 , on or prior to 12:00 p.m., New York City time, on any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the

 

123


Company is acting as its own Paying Agent, the Company shall segregate and hold in trust as provided in Section 403 ) an amount of money sufficient to pay the redemption price of, and any accrued and unpaid interest on, all the Notes or portions thereof which are to be redeemed on that date.

Section 1007. Notes Payable on Redemption Date . Notice of redemption having been given as provided in this Article X or in the applicable Notes Supplemental Indenture, the Notes so to be redeemed shall, on the Redemption Date, become due and payable at the redemption price specified herein or in the applicable Notes Supplemental Indenture and from and after such date (unless the Company shall default in the payment of the redemption price or the Paying Agent is prohibited from paying the redemption price pursuant to the terms of this Indenture) such Notes shall cease to bear interest. Upon surrender of such Notes for redemption in accordance with such notice, such Notes shall be paid by or on behalf of the Company at the redemption price. Installments of interest whose Interest Payment Date is on or prior to the Redemption Date shall be payable to the Holders of such Notes registered as such on the relevant Regular Record Dates according to their terms and the provisions of Section 307 .

On and after any Redemption Date, if money sufficient to pay the redemption price of and any accrued and unpaid interest on Notes called for redemption shall have been made available in accordance with Section 1006 , the Notes (or the portions thereof) called for redemption will cease to accrue interest and the only right of the Holders of such Notes (or portions thereof) will be to receive payment of the redemption price of and, subject to the last sentence of the preceding paragraph, any accrued and unpaid interest on such Notes (or portions thereof) to the Redemption Date. If any Note (or portion thereof) called for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest from the Redemption Date at the rate borne by the Note (or portion thereof).

Section 1008. Notes Redeemed in Part . Any Note that is to be redeemed only in part shall be surrendered at the Place of Payment (with due endorsement by, or a written instrument of transfer in form satisfactory to the Company duly executed by, the Holder thereof or its attorney duly authorized in writing) and the Company shall execute and (upon receipt of an Authentication Order) the Trustee shall authenticate and deliver to the Holder of such Note without service charge, a new Note or Notes, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Note so surrendered (or if the Note is a Global Note, an adjustment shall be made to the schedule attached thereto).

 

124


ARTICLE XI

SATISFACTION AND DISCHARGE

Section 1101. Satisfaction and Discharge of Indenture . This Indenture and the Outstanding Notes shall be discharged and shall cease to be of further effect, and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture and the Outstanding Notes, when

(i) either

(a) all Notes theretofore authenticated and delivered (other than ( i ) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 306 , and ( ii ) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 403 ) have been cancelled or delivered to the Trustee for cancellation; or

(b) all such Notes not theretofore cancelled or delivered to the Trustee for cancellation

(1) have become due and payable,

(2) will become due and payable at their Stated Maturity within one year, or

(3) have been called for redemption or are to be called for redemption within one year under arrangements reasonably satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company,

(ii) the Company has irrevocably deposited or caused to be deposited with the Trustee money, U.S. Government Obligations or a combination thereof, sufficient (without reinvestment) to pay and discharge the entire Indebtedness on such Notes not previously cancelled or delivered to the Trustee for cancellation, for principal (and premium, if any) and interest to the date of such deposit (in the case of Notes that have become due and payable), or to the Stated Maturity or Redemption Date, as the case may be ( provided that if such redemption shall be pursuant to Section 6(d) of the applicable Notes Supplemental Indenture, ( x ) the amount of money or U.S. Government Obligations, or a combination thereof, that the Company must irrevocably deposit or cause to be deposited shall be determined using an assumed Applicable Premium calculated as of the date of such deposit, as calculated by the Company in good faith, and ( y ) the Company must irrevocably deposit or cause to be deposited additional money in trust on the Redemption Date, as required by Section 1006 , as necessary to pay the Applicable Premium as determined on such date);

(iii) the Company has paid or caused to be paid all other sums then payable hereunder by the Company; and

 

125


(iv) the Company has delivered to the Trustee an Officer’s Certificate of the Company and an Opinion of Counsel each to the effect that all conditions precedent provided for in this Section 1101 relating to the satisfaction and discharge of this Indenture have been complied with, provided that any such counsel may rely on any Officer’s Certificate as to matters of fact (including as to compliance with the foregoing clauses (i), (ii) and (iii)).

Notwithstanding the satisfaction and discharge of this Indenture, ( a ) the obligations of the Company to the Trustee under Section 707 and, if money shall have been deposited with the Trustee pursuant to Section 1101(ii) , the obligations of the Trustee under Section 1103 shall survive such satisfaction and discharge, and ( b ) if such satisfaction and discharge is effected through redemption in accordance with Section 1101(i)(b)(3) , the provisions of Section 1007 shall survive such satisfaction and discharge, and the other provisions of Article X (and Section 6 of each applicable Notes Supplemental Indenture) shall survive such satisfaction and discharge until the Redemption Date shall have occurred.

Section 1102. Satisfaction and Discharge of Notes of a Series . The Outstanding Notes of any series shall be discharged and shall cease to be of further effect, and the Trustee, on demand of and at the expense of the Company, shall execute such instruments reasonably requested by the Company acknowledging satisfaction and discharge of the Outstanding Notes of such series, when

(i) either

(a) all Notes of such series theretofore authenticated and delivered (other than ( x ) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 306 , and ( y ) Notes of such series for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 403 ) have been cancelled or delivered to the Trustee for cancellation; or

(b) all Notes of such series not theretofore cancelled or delivered to the Trustee for cancellation

(1) have become due and payable,

(2) will become due and payable at their Stated Maturity within one year, or

(3) have been called for redemption, or are to be called for redemption within one year under arrangements reasonably satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company;

 

126


(ii) the Company has irrevocably deposited or caused to be deposited with the Trustee money, U.S. Government Obligations or a combination thereof, sufficient (without reinvestment) to pay and discharge the entire Indebtedness on such Notes of such series not previously cancelled or delivered to the Trustee for cancellation, for principal (and premium, if any) and interest to the date of such deposit (in the case of Notes of such series that have become due and payable), or to the Stated Maturity or Redemption Date, as the case may be ( provided that if such redemption shall be pursuant to Section 6(c) of the applicable Notes Supplemental Indenture, ( x ) the amount of money or U.S. Government Obligations, or a combination thereof, that the Company must irrevocably deposit or cause to be deposited shall be determined using an assumed Applicable Premium calculated as of the date of such deposit, as calculated by the Company in good faith (which calculation shall be conclusive), and ( y ) the Company must irrevocably deposit or cause to be deposited additional money in trust on the Redemption Date, as required by Section 1006 , as necessary to pay the Applicable Premium as determined on such date);

(iii) the Company has paid or caused to be paid all other sums with respect to Notes of such series then payable hereunder by the Company; and

(iv) the Company has delivered to the Trustee an Officer’s Certificate of the Company and an Opinion of Counsel, each to the effect that all conditions precedent provided for in this Section 1102 relating to the satisfaction and discharge of such Notes of such series have been complied with, provided that any such counsel may rely on any Officer’s Certificate as to matters of fact (including as to compliance with the foregoing clauses (i), (ii) and (iii)).

Notwithstanding the satisfaction and discharge of the Notes of any series, the obligations of the Company to the Trustee under Section 707 and, if money shall have been deposited with the Trustee pursuant to Section 1102(ii) , the obligations of the Trustee under Section 1103 shall survive such satisfaction and discharge.

Section 1103. Application of Trust Money . Subject to the provisions of the last paragraph of Section 403 , all money and/or U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee pursuant to Section 1101 or Section 1102 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest on the Notes; but such money need not be segregated from other funds except to the extent required by law.

 

127


ARTICLE XII

DEFEASANCE OR COVENANT DEFEASANCE

Section 1201. The Company’s Option to Effect Defeasance or Covenant Defeasance . The Company may, at its option, at any time, elect to have terminated the obligations of the Company with respect to Outstanding Notes and to have terminated all of the obligations of the Subsidiary Guarantors with respect to the Subsidiary Guarantees, in each case, as set forth in this Article XII , and elect to have either Section 1202 or Section 1203 be applied to all of the Outstanding Notes (the “ Defeased Notes ”), upon compliance with the conditions set forth below in Section 1204 . Either Section 1202 or Section 1203 may be applied to the Defeased Notes to any Redemption Date or the Stated Maturity of the Notes.

Section 1202. Defeasance and Discharge . Upon the Company’s exercise under Section 1201 of the option applicable to this Section 1202 , the Company shall be deemed to have been released and discharged from its obligations with respect to the Defeased Notes and the Subsidiary Guarantors shall be deemed to have been released and discharged from their obligations with respect to the Subsidiary Guarantees on the date the relevant conditions set forth in Section 1204 are satisfied (hereinafter, “ Defeasance ”). For this purpose, such Defeasance means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by the Defeased Notes, which shall thereafter be deemed to be “Outstanding” only for the purposes of Section 1205 and the other Sections of this Indenture referred to in clauses (a) and (b) below, and the Company, and each of the Subsidiary Guarantors shall be deemed to have satisfied all other obligations under such Notes, Subsidiary Guarantees and this Indenture insofar as such Notes are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following, which shall survive until otherwise terminated or discharged hereunder: ( a ) the rights of Holders of Defeased Notes to receive, solely from the trust fund described in Section 1204 and as more fully set forth in such Section, payments in respect of principal of and premium, if any, and interest on such Notes when such payments are due, ( b ) the Company’s obligations with respect to such Defeased Notes under Sections 304 , 305 , 306 , 402 , and 403 , ( c ) the rights, powers, trusts, duties and immunities of the Trustee hereunder, including the Trustee’s rights (and the Company’s obligations) under Section 707 , and ( d ) this Article XII . If the Company exercises its option under this Section 1202 , payment of the Notes may not be accelerated because of an Event of Default with respect thereto. Subject to compliance with this Article XII , the Company may, at its option and at any time, exercise its option under this Section 1202 notwithstanding the prior exercise of its option under Section 1203 with respect to the Notes.

Section 1203. Covenant Defeasance . Upon the Company’s exercise under Section 1201 of the option applicable to this Section 1203 , ( a ) the Company and the

 

128


Subsidiary Guarantors shall be released from its obligations under any covenant or provision contained in Section 405 , Sections 407 through 415 , and the provisions of clauses (iii), (iv) and (v) of Section 501(a) shall not apply, and ( b ) the occurrence of any event specified in clause (iv), (v) (with respect to Section 405 , Sections 407 through 415 , inclusive), (vi), (vii), (viii) (with respect to Subsidiaries), (ix) (with respect to Subsidiaries), (x) or (xi) of Section 601 shall be deemed not to be or result in an Event of Default, in each case with respect to the Defeased Notes on and after the date the conditions set forth below are satisfied (hereinafter, “ Covenant Defeasance ”), and the Notes shall thereafter be deemed not to be “Outstanding” for the purposes of any direction, waiver, consent or declaration or Act of Holders (and the consequences of any thereof) in connection with such covenants or provisions, but shall continue to be deemed “Outstanding” for all other purposes hereunder. For this purpose, such Covenant Defeasance means that, with respect to the Outstanding Notes, the Company and the Subsidiary Guarantors may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant or provision, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or provision or by reason of any reference in any such covenant or provision to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 601 , but, except as specified above, the remainder of this Indenture and such Outstanding Notes shall be unaffected thereby.

Section 1204. Conditions to Defeasance or Covenant Defeasance . The following shall be the conditions to application of either Section 1202 or Section 1203 to the Outstanding Notes:

(1) The Company shall have irrevocably deposited or caused to be deposited with the Trustee, in trust, money or U.S. Government Obligations, or a combination thereof, in amounts as will be sufficient (without reinvestment), to pay and discharge the principal of, and premium, if any, and interest on the Defeased Notes to the Stated Maturity or relevant Redemption Date in accordance with the terms of this Indenture and the Notes ( provided that if such redemption shall be pursuant to Section 6(d) of the applicable Notes Supplemental Indenture, ( x ) the amount of money or U.S. Government Obligations or a combination thereof that the Company must irrevocably deposit or cause to be deposited shall be determined using an assumed Applicable Premium calculated as of the date of such deposit, as calculated by the Company in good faith and ( y ) the Company must irrevocably deposit or cause to be deposited additional money in trust on the Redemption Date, as required by Section 1006 , as necessary to pay the Applicable Premium as determined on such date);

(2) No Default or Event of Default shall have occurred and be continuing on the date of such deposit;

 

129


(3) Such deposit shall not result in a breach or violation of, or constitute a Default or Event of Default under, this Indenture or any other material agreement or instrument to which the Company is a party or by which it is bound;

(4) In the case of an election under Section 1202 , the Company shall have delivered to the Trustee an Opinion of Counsel from Debevoise & Plimpton LLP or other counsel in the United States to the effect that ( x ) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or ( y ) since the Issue Date, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm to the effect that, the Holders of the Outstanding Notes will not recognize income, gain or loss for Federal income tax purposes as a result of such Defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Defeasance had not occurred; provided that such Opinion of Counsel need not be delivered if all Notes theretofore authenticated and delivered (other than ( i ) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 306 , and ( ii ) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 403 ) not theretofore delivered to the Trustee for cancellation have become due and payable, will become due and payable at their Stated Maturity within one year, or have been called for redemption or are to be called for redemption within one year under arrangements reasonably satisfactory to the Trustee in the name, and at the expense, of the Company;

(5) In the case of an election under Section 1203 , the Company shall have delivered to the Trustee an Opinion of Counsel from Debevoise & Plimpton LLP or other counsel in the United States to the effect that the Holders of the Outstanding Notes will not recognize income, gain or loss for Federal income tax purposes as a result of such Covenant Defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; and

(6) The Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel from Debevoise & Plimpton LLP or other counsel in the United States, each to the effect that all conditions precedent provided for in this Section 1204 relating to either the Defeasance under Section 1202 or the Covenant Defeasance under Section 1203 , as the case may be, have been complied with. In rendering such Opinion of Counsel, counsel may rely on an Officer’s Certificate as to compliance with the foregoing clauses (1), (2) and (3) of this Section 1204 or as to any matters of fact.

 

130


Section 1205. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions . Subject to the provisions of the last paragraph of Section 403 , all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or such other Person that would qualify to act as successor trustee under Article VII , collectively and solely for purposes of this Section 1205 , the “ Trustee ”) pursuant to Section 1204 in respect of the Defeased Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

The Company shall pay and indemnify the Trustee and its agents and hold them harmless against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited pursuant to Section 1204 , or the principal, premium, if any, and interest received in respect thereof, other than any such tax, fee or other charge that by law is for the account of the Holders of the Defeased Notes.

Anything in this Article XII to the contrary notwithstanding, the Trustee shall deliver to the Company from time to time, upon Company Request, any money or U.S. Government Obligations held by it as provided in Section 1204 that, in the opinion of a nationally recognized accounting or investment banking firm expressed in a written certification thereof to the Trustee, are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Defeasance or Covenant Defeasance. Subject to Article VII , the Trustee shall not incur any liability to any Person by relying on such opinion.

Section 1206. Reinstatement . If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with Section 1202 or 1203 , as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the obligations of the Company and each of the Subsidiary Guarantors under this Indenture, the Notes and the Subsidiary Guarantees shall be revived and reinstated as though no deposit had occurred pursuant to Section 1202 or 1203 , as the case may be, until such time as the Trustee or Paying Agent is permitted to apply all such money and U.S. Government Obligations in accordance with Section 1202 or 1203 , as the case may be; provided , however , that if the Company or any Subsidiary Guarantor makes any payment of principal, premium, if any, or interest on any Note following the reinstatement of its obligations, the Company or Subsidiary Guarantor, as the case may be, shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money and U.S. Government Obligations held by the Trustee or Paying Agent.

Section 1207. Repayment to the Company . The Trustee shall pay to the Company upon Company Request any money held by it for the payment of principal or interest that remains unclaimed for two years after the Stated Maturity or the Redemption Date, as the

 

131


case may be. After payment to the Company, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another Person and all liability of the Trustee or Paying Agent with respect to such money shall thereupon cease.

ARTICLE XIII

SUBSIDIARY GUARANTEES

Section 1301. Guarantees Generally .

(a) Guarantee of Each Subsidiary Guarantor . From and after the Merger Date, each Subsidiary Guarantor from time to time party hereto, as primary obligor and not merely as surety, hereby jointly and severally, irrevocably and fully and unconditionally Guarantees, on an unsecured senior basis, the punctual payment when due, whether at Stated Maturity, by acceleration or otherwise, of all monetary obligations of the Company under this Indenture and the Notes, whether for principal of or interest on the Notes, expenses, indemnification or otherwise (all such obligations guaranteed by such Subsidiary Guarantors being herein called the “ Subsidiary Guaranteed Obligations ”).

The obligations of each Subsidiary Guarantor will be limited to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor (including but not limited to any Guarantee by it of any Credit Facility Indebtedness) and after giving effect to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in respect of the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to its contribution obligations under this Indenture, result in the obligations of such Subsidiary Guarantor under the Subsidiary Guarantee not constituting a fraudulent conveyance or fraudulent transfer under applicable law, or being void or unenforceable under any law relating to insolvency of debtors.

(b) Further Agreements of Each Subsidiary Guarantor . (i) Each Subsidiary Guarantor hereby agrees that (to the fullest extent permitted by law) its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of this Indenture, the Notes or the obligations of the Company or any other Subsidiary Guarantor to the Holders or the Trustee hereunder or thereunder, the absence of any action to enforce the same, any waiver or consent by any Holder with respect to any provisions hereof or thereof, any release of any other Subsidiary Guarantor, the recovery of any judgment against the Company, any action to enforce the same, whether or not a notation concerning its Subsidiary Guarantee is made on any particular Note, or any other circumstance that might otherwise constitute a legal or equitable discharge or defense of a Subsidiary Guarantor.

(ii) Each Subsidiary Guarantor hereby waives (to the fullest extent permitted by law) the benefit of diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first

 

132


against the Company, protest, notice and all demands whatsoever and covenants that (except as otherwise provided in Section 1303 ) its Subsidiary Guarantee will not be discharged except by complete performance of the obligations contained in the Notes, this Indenture and this Subsidiary Guarantee. Such Subsidiary Guarantee is a guarantee of payment and not of collection. Each Subsidiary Guarantor further agrees (to the fullest extent permitted by law) that, as between it, on the one hand, and the Holders of Notes and the Trustee, on the other hand, subject to this Article XIII , ( 1 ) the maturity of the obligations guaranteed by its Subsidiary Guarantee may be accelerated as and to the extent provided in Article VI for the purposes of such Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed by such Subsidiary Guarantee, and ( 2 ) in the event of any acceleration of such obligations as provided in Article VI , such obligations (whether or not due and payable) shall forthwith become due and payable by such Subsidiary Guarantor in accordance with the terms of this Section 1301 for the purpose of such Subsidiary Guarantee. Neither the Trustee nor any other Person shall have any obligation to enforce or exhaust any rights or remedies or to take any other steps under any security for the Subsidiary Guaranteed Obligations or against the Company or any other Person or any property of the Company or any other Person before the Trustee is entitled to demand payment and performance by any or all Subsidiary Guarantors of their obligations under their respective Subsidiary Guarantees or under this Indenture.

(iii) Until terminated in accordance with Section 1303 , each Subsidiary Guarantee shall remain in full force and effect and continue to be effective should any petition be filed by or against the Company for liquidation or reorganization, should the Company become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of the Company’s assets, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Notes are, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee on such Notes, whether as a “voidable preference,” “fraudulent transfer” or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Notes shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

(c) Each Subsidiary Guarantor that makes a payment or distribution under its Subsidiary Guarantee shall have the right to seek contribution from the Company or any non-paying Subsidiary Guarantor that has also Guaranteed the relevant Subsidiary Guaranteed Obligations in respect of which such payment or distribution is made, so long as the exercise of such right does not impair the rights of the Holders under the Subsidiary Guarantees.

(d) Each Subsidiary Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by this Indenture and that its Subsidiary Guarantee, and the waiver set forth in Section 1305 , are knowingly made in contemplation of such benefits.

 

133


(e) Each Subsidiary Guarantor, pursuant to its Subsidiary Guarantee, also hereby agrees to pay any and all reasonable out-of-pocket expenses (including reasonable counsel fees and expenses) incurred by the Trustee or the Holders in enforcing any rights under its Subsidiary Guarantee.

Section 1302. Continuing Guarantees . (a) Each Subsidiary Guarantee shall be a continuing Guarantee and shall ( i ) subject to Section 1303 , remain in full force and effect until payment in full of the principal amount of all Outstanding Notes (whether by payment at maturity, purchase, redemption, defeasance, retirement or other acquisition) and all other Subsidiary Guaranteed Obligations then due and owing, ( ii ) be binding upon such Subsidiary Guarantor and ( iii ) inure to the benefit of and be enforceable by the Trustee, the Holders and their permitted successors, transferees and assigns.

(b) The obligations of each Subsidiary Guarantor hereunder shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment which would otherwise have reduced or terminated the obligations of any Subsidiary Guarantor hereunder and under its Subsidiary Guarantee (whether such payment shall have been made by or on behalf of the Company, or by or on behalf of a Subsidiary Guarantor) is rescinded or reclaimed from any of the Holders upon the insolvency, bankruptcy, liquidation or reorganization of the Company, or any Subsidiary Guarantor or otherwise, all as though such payment had not been made.

Section 1303. Release of Subsidiary Guarantees . Notwithstanding the provisions of Section 1302 , Subsidiary Guarantees will be subject to termination and discharge under the circumstances described in this Section 1303 . Any Subsidiary Guarantor will automatically and unconditionally be released from all obligations under its Subsidiary Guarantee, and such Subsidiary Guarantee shall thereupon terminate and be discharged and of no further force or effect, ( i ) concurrently with any direct or indirect sale or disposition (by merger or otherwise) of any Subsidiary Guarantor or any interest therein, or any other transaction, in accordance with the terms of this Indenture (including Section 411 and Section 501 ), following which such Subsidiary Guarantor is no longer a Restricted Subsidiary of the Company, ( ii ) at any time that such Subsidiary Guarantor is (or, substantially concurrently with the release of the Subsidiary Guarantee of such Subsidiary Guarantor or if as a result of the release of the Subsidiary Guarantee of such Subsidiary Guarantor, will be) released from all of its obligations under its Guarantee of payment by the Company and all other Subsidiary Guarantors of any Indebtedness of the Company and such other Subsidiary Guarantors under the Senior Credit Facilities or any Capital Market Indebtedness, including by reason of ceasing to be a borrower under the Senior ABL Facility on a joint and several basis with the Company and (in the case of such Capital Market Indebtedness) when initially granted resulted in such Subsidiary’s obligation to Guarantee the Notes pursuant to Section 414 (it being understood that a release subject to contingent reinstatement is still a release, and that if any such Guarantee is so reinstated, such Subsidiary Guarantee shall also be reinstated to the extent that such Subsidiary Guarantor would then be required to provide a

 

134


Subsidiary Guarantee pursuant to Section 414 ), ( iii ) upon the merger or consolidation of any Subsidiary Guarantor with and into the Company or another Subsidiary Guarantor that is the surviving Person in such merger or consolidation, or upon the liquidation of such Subsidiary Guarantor following the transfer of all of its assets to the Company or another Subsidiary Guarantor, ( iv ) concurrently with any Subsidiary Guarantor becoming an Unrestricted Subsidiary, ( v ) during the Suspension Period, upon the merger or consolidation of any Subsidiary Guarantor with and into another Subsidiary that is not a Subsidiary Guarantor with such other Subsidiary being the surviving Person in such merger or consolidation, or upon liquidation of such Subsidiary Guarantor following the transfer of all of its assets to a Subsidiary that is not a Subsidiary Guarantor (it being understood that on a Reversion Date, such Subsidiary Guarantee shall also be reinstated to the extent that such Subsidiary would then be required to provide a Subsidiary Guarantee pursuant to Section 414 ), ( vi ) upon Defeasance or Covenant Defeasance of the Company’s obligations, or satisfaction and discharge of this Indenture pursuant to Section 1101 , or ( vii ) subject to Section 1302(b) , upon payment in full of the aggregate principal amount of all Notes then Outstanding and all other Subsidiary Guaranteed Obligations then due and owing. In addition, the Company will have the right, upon 10 days’ notice to the Trustee (or such shorter period as agreed to by the Trustee in its sole discretion), to cause any Subsidiary Guarantor that has not guaranteed payment by the Company or another Subsidiary Guarantor of any Indebtedness of the Company or such other Subsidiary Guarantor under the Senior Credit Facilities or any Capital Market Indebtedness to be unconditionally released from all obligations under its Subsidiary Guarantee, and such Subsidiary Guarantee shall thereupon terminate and be discharged and of no further force or effect.

Upon any such occurrence specified in this Section 1303 , the Trustee shall, at the Company’s expense, execute any documents reasonably requested by the Company in order to evidence such release, discharge and termination in respect of the applicable Subsidiary Guarantee.

Section 1304. [Reserved].

Section 1305. Waiver of Subrogation . Each Subsidiary Guarantor hereby irrevocably waives any claim or other rights that it may now or hereafter acquire against the Company that arise from the existence, payment, performance or enforcement of the Company’s obligations under the Notes and this Indenture or such Subsidiary Guarantor’s obligations under its Subsidiary Guarantee and this Indenture, including any right of subrogation, reimbursement, exoneration, indemnification, and any right to participate in any claim or remedy of any Holder of Notes against the Company, whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, until this Indenture is discharged and all of the Notes are discharged and paid in full. If any amount shall be paid to any Subsidiary Guarantor in violation of the preceding sentence and the Notes shall not have been paid in full, such amount shall be deemed to have been paid to such Subsidiary Guarantor for the benefit of, and held in trust for the benefit of, the Holders of the Notes, and shall forthwith be paid to the Trustee for the benefit of such Holders to be credited and applied upon the Notes, whether matured or unmatured, in accordance with the terms of this Indenture.

 

135


Section 1306. Notation Not Required . Neither the Company nor any Subsidiary Guarantor shall be required to make a notation on the Notes to reflect any Subsidiary Guarantee or any release, termination or discharge thereof.

Section 1307. Successors and Assigns of Subsidiary Guarantors . All covenants and agreements in this Indenture by each Subsidiary Guarantor shall bind its respective successors and assigns, whether so expressed or not.

Section 1308. Execution and Delivery of Subsidiary Guarantees . The Company shall cause each Restricted Subsidiary that is required to become a Subsidiary Guarantor pursuant to Section 414 , and each Subsidiary of the Company that the Company causes to become a Subsidiary Guarantor pursuant to Section 414 , to promptly execute and deliver to the Trustee a Guarantor Supplemental Indenture, or a supplemental indenture otherwise in form reasonably satisfactory to the Trustee, evidencing its Subsidiary Guarantee on substantially the terms set forth in this Article XIII . Concurrently therewith, the Company shall deliver to the Trustee an Opinion of Counsel to the effect that such Guarantor Supplemental Indenture has been duly authorized or permitted or complies with this Indenture, that all conditions precedent to such Guarantor Supplemental Indenture required by this Indenture have been complied with and that such Guarantor Supplemental Indenture is a valid and binding agreement of the applicable Subsidiary Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms.

Section 1309. Notices . Notice to any Subsidiary Guarantor shall be sufficient if addressed to such Subsidiary Guarantor care of the Company at the address, place and manner provided in Section 109 .

 

136


IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as of the date first written above.

 

NEW AMETHYST CORP.
By:   /s/ Claire A. Gulmi
  Name:   Claire A. Gulmi
  Title:   Vice President and Secretary

 

[Signature Page to Indenture]


WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
By:   /s/ Joseph P. O’Donnell
  Name:   Joseph P. O’Donnell
  Title:   Vice President

 

[Signature Page to Indenture]


EXHIBIT A

Form of Initial Note 1

(FACE OF NOTE)

NEW AMETHYST CORP.

[    ]% Senior Notes due 20[    ]

CUSIP No. [            ] 2 / [            ] 3

No.              $             

NEW AMETHYST CORP., a corporation duly organized and existing under the laws of the state of Delaware (and its successors and assigns, the “ Company ”) hereby promises to pay to                  , or its registered assigns, the principal sum of $              ([            ] United States Dollars) [(or such lesser or greater amount as shall be outstanding hereunder from time to time in accordance with Sections 312 and 313 of the Indenture referred to on the reverse hereof)] 4 (the “ Principal Amount ”) on [            ], 20[    ]. The Company hereby promises to pay interest semi-annually in arrears on [            ] and [            ] in each year, commencing [            ], 20[    ], at the rate of [            ]% per annum (subject to adjustment as provided below), until the Principal Amount is paid or made available for payment. [Interest on this Note will accrue from the most recent date to which interest on this Note or any of its Predecessor Notes has been paid or duly provided for or, if no interest has been paid, from the Issue Date.] 5 [Interest on this Note will accrue (or will be deemed to have accrued) from the most recent date to which interest on this Note or any of its Predecessor Notes has been paid or duly provided for or, if no such interest has been paid, from                  ,          6 .] 7 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Note (or one or more

 

1   Insert any applicable legends as provided in Article II of the Indenture.
2   Insert for Rule 144A Note only.
3   Insert for Regulation S Note only.
4   Include only if the Note is issued in global form.
5   Include only for Initial Notes.
6   Insert applicable date.
7  

Include only for Additional Notes.

 

A-1


Predecessor Notes) is registered at the close of business on the Regular Record Date for such interest, which shall be the [            ] or [            ] (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

Payment of principal of (and premium, if any) and interest on this Note will be made at the Corporate Trust Office of the Trustee, or such other office or agency of the Company maintained for that purpose; provided, however, that at the option of the Company payment of interest may be made through the Paying Agent by wire transfer of immediately available funds to the account designated to the Company by the Person entitled thereto or by check mailed to the address of the Person entitled thereto as such address shall appear in the Note Register.

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

A-2


IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

NEW AMETHYST CORP.
By:    
  Name:
  Title:

 

A-3


This is one of the Notes referred to in the within-mentioned Indenture.

 

WILMINGTON TRUST, NATIONAL ASSOCIATION

as Trustee

By:    
  Authorized Officer

Dated:

 

A-4


(REVERSE OF NOTE)

This Note is one of the duly authorized issue of [            ]% Senior Notes due 20[    ] of the Company (herein called the “ Notes ”), issued under an Indenture, dated as of December 1, 2016 (the “ Indenture ,” which term shall have the meaning assigned to it in such instrument), among the Company, as issuer, the Subsidiary Guarantors from time to time parties thereto, and Wilmington Trust, National Association, in its capacity as Trustee (herein called the “ Trustee ,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, any other obligor upon this Note, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. The terms of the Notes include those stated in the Indenture. The Notes are subject to all such terms, and Holders are referred to the Indenture for a statement of such terms. To the maximum extent permitted by law, in the case of any conflict between the provisions of this Note and the Indenture, the provisions of the Indenture shall control. Additional Notes may be issued from time to time in one or more series under the Indenture and (except as provided in Section 902 of the Indenture) will vote as a class with the Notes and otherwise be treated as Notes for purposes of the Indenture.

All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in the Indenture.

This Note may hereafter be entitled to certain other senior Subsidiary Guarantees made for the benefit of the Holders. Reference is made to Article XIII of the Indenture for terms relating to such Subsidiary Guarantees, including the release, termination and discharge thereof. Neither the Company nor any Subsidiary Guarantor shall be required to make any notation on this Note to reflect any Subsidiary Guarantee or any such release, termination or discharge.

The Notes are redeemable, at the Company’s option, in whole or in part, as provided in the Indenture and the [[            ] Supplemental Indenture, dated as of [            ], 20[    ], [between][among] the Company [, the Subsidiary Guarantors party thereto] and the Trustee]. 8

The Indenture provides (as and to the extent set forth therein) that, upon the occurrence after the Issue Date of a Change of Control, each Holder will have the right to require that the Company repurchase all or any part of such Holder’s Notes at a purchase price in cash equal to 101.0% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of such repurchase (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the purchase date); provided , however , that the Company shall not be obligated to repurchase Notes in the event it has exercised its right to redeem all the Notes as provided in the Indenture.

 

8   Revise to reflect appropriate parties.

 

A-5


The Notes will not be entitled to the benefit of a sinking fund.

The Indenture contains provisions for defeasance at any time of the entire Indebtedness of this Note or certain restrictive covenants and certain Events of Default with respect to this Note, in each case upon compliance with certain conditions set forth in the Indenture.

[If an Event of Default with respect to the Notes shall occur and be continuing, the principal of and accrued but unpaid interest on the Notes may be declared due and payable in the manner and with the effect provided in the Indenture.] 9

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes to be effected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of at least a majority in principal amount of the Notes at the time Outstanding to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive compliance by the Company and its Subsidiaries with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

As provided in and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Notes, the Holders of not less than 30.0% in principal amount of the Notes at the time Outstanding (which contain such Event of Default) shall have made written request to the Trustee to pursue such remedy in respect of such Event of Default as Trustee and offered the Trustee security or indemnity satisfactory to it against any loss, liability or expense, and the Trustee shall not have received from the Holders of a majority in principal amount of Notes at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of security or indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

As provided in the Indenture and subject to certain limitations and other provisions therein set forth, ( a ) the transfer of this Note is registrable in the Note Register, upon

 

9  

Include unless otherwise provided in the Notes Supplemental Indenture establishing the applicable series of Notes.

 

A-6


surrender of this Note for registration of transfer at the office or agency of the Company in a Place of Payment, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees, ( b ) the Notes are issuable only in fully registered form without coupons in minimum denominations of $2,000 and any integral multiple of $1,000 in excess thereof, and ( c ) the Notes are exchangeable for a like aggregate principal amount of Notes of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration, transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or other governmental charge payable in connection therewith.

Prior to due presentment of this Note for registration or transfer, the Company, any other obligor in respect of this Note, the Trustee and any agent of any of them may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and none of the Company, any other obligor in respect of this Note, the Trustee nor any such agent shall be affected by notice to the contrary.

No director, officer, employee, incorporator or stockholder, as such, of the Company, any Subsidiary Guarantor or any other obligor in respect of any Note or any Subsidiary of any thereof shall have any liability for any obligation of the Company, any Subsidiary Guarantor or any other obligor in respect of any Note under the Indenture, the Notes, or any Subsidiary Guarantee, or for any claim based on, in respect of, or by reason of, any such obligation or its creation. Each Holder, by accepting this Note, hereby waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THIS NOTE AND (BY ITS ACCEPTANCE OF THIS NOTE) THE HOLDER HEREOF AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THIS NOTE, OR THE SUBSIDIARY GUARANTEES.

 

A-7


[FORM OF CERTIFICATE OF TRANSFER]

FOR VALUE RECEIVED the undersigned holder hereby sell(s), assign(s) and transfer(s) unto

Insert Taxpayer Identification No.

 

(Please print or typewrite name and address including zip code of assignee)  

 

 

 

 

 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing  

 

 

attorney to transfer such Note on the books of the Company with full power of substitution in the premises.

Check One

 

[    ] (a) this Note is being transferred in compliance with the exemption from registration under the Securities Act of 1933, as amended, provided by Rule 144A thereunder.

or

 

[    ] (b) this Note is being transferred other than in accordance with (a) above and documents are being furnished which comply with the conditions of transfer set forth in this Note and the Indenture.

If neither of the foregoing boxes is checked, the Trustee or other Note Registrar shall not be obligated to register this Note in the name of any Person other than the Holder hereof unless and until the conditions to any such transfer of registration set forth herein and in Section 313 of the Indenture shall have been satisfied.

 

Date:    

 

 

A-8


      NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change whatsoever.
Signature Guarantee:   

 

  

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“ STAMP ”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

A-9


TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

The undersigned represents and warrants that it is purchasing this Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A.

 

Dated:

 

 

     

 

  
        NOTICE: To be executed by an executive officer

 

A-10


OPTION OF HOLDER TO ELECT PURCHASE

If you wish to have this Note purchased by the Company pursuant to Section 411 or Section 415 of the Indenture, check the box: [    ].

If you wish to have a portion of this Note purchased by the Company pursuant to Section 411 or Section 415 of the Indenture, state the amount (in principal amount) below:

                                         $                         

Date:                         

Your Signature:                         

(Sign exactly as your name appears on the other side of this Note)

Signature Guarantee:                         

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“ STAMP ”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

A-11


SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

The following increases or decreases in this Global Note have been made:

 

Date of Exchange

 

Amount of decreases in
Principal Amount of this
Global Note

 

Amount of increases

in Principal Amount of

this Global Note

 

Principal amount of this Global
Note following such decreases
or increases

 

Signature of authorized

officer of Trustee

 

A-12


EXHIBIT B

[RESERVED].

 

B-1


EXHIBIT C

Form of Certificate of Beneficial Ownership

On or after [                  ], 20[    ]

WILMINGTON TRUST, NATIONAL ASSOCIATION

[address]

Attention: 10

Re: NEW AMETHYST CORP. (the “ Company ”)

[            ]% Senior Notes due [            ], 20[    ] (the “[            ] Notes”)

Ladies and Gentlemen:

This letter relates to $                  principal amount of Notes represented by the offshore [temporary] global note certificate (the “ [Temporary] Regulation S Global Note ”). Pursuant to Section 313(3) of the Indenture dated as of December 1, 2016, relating to the Notes (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), we hereby certify that ( 1 ) we are the beneficial owner of such principal amount of Notes represented by the [Temporary] Regulation S Global Note and ( 2 ) we are either ( i ) a Non-U.S. Person to whom the Notes could be transferred in accordance with Rule 903 or 904 of Regulation S (“ Regulation S ”) promulgated under the Securities Act of 1933, as amended (the “ Act ”) or ( ii ) a U.S. Person who purchased securities in a transaction that did not require registration under the Act.

You, the Company, and counsel for the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the meanings set forth in Regulation S.

 

Very truly yours,
[Name of Holder]
By:    
  Authorized Signature

 

10   Insert successor address or Trustee, as applicable.

 

C-1


EXHIBIT D

Form of Regulation S Certificate

WILMINGTON TRUST, NATIONAL ASSOCIATION

[address]

Attention: 11

Re: New Amethyst Corp. (the “ Company )

[            ]% Senior Notes due [            ], 20[    ] (the “Notes”)

Ladies and Gentlemen:

In connection with our proposed sale of $                  aggregate principal amount of Notes, we confirm that such sale has been effected pursuant to and in accordance with Regulation S (“ Regulation S ”) under the Securities Act of 1933, as amended (the “ Securities Act ”), and accordingly, we hereby certify as follows:

1. The offer of the Notes was not made to a person in the United States (unless such person or the account held by it for which it is acting is excluded from the definition of “U.S. person” pursuant to Rule 902(k) of Regulation S under the circumstances described in Rule 902(h)(3) of Regulation S) or specifically targeted at an identifiable group of U.S. citizens abroad.

2. Either ( a ) at the time the buy order was originated, the buyer was outside the United States or we and any person acting on our behalf reasonably believed that the buyer was outside the United States or ( b ) the transaction was executed in, on or through the facilities of a designated offshore securities market, and neither we nor any person acting on our behalf knows that the transaction was pre-arranged with a buyer in the United States.

3. No directed selling efforts have been made in the United States in contravention of the requirements of Rule 903(a)(2) or Rule 904(a)(2) of Regulation S, as applicable.

4. The proposed transfer of Notes is not part of a plan or scheme to evade the registration requirements of the Securities Act.

5. If we are a dealer or a person receiving a selling concession or other fee or remuneration in respect of the Notes, and the proposed transfer takes place before end of the distribution compliance period under Regulation S, or we are an officer or director of the Company or a distributor, we certify that the proposed transfer is being made in accordance with the provisions of Rules 903 and 904 of Regulation S.

 

11   Insert successor address or Trustee, as applicable.

 

D-1


6. If the proposed transfer takes place before the end of the distribution compliance period under Regulation S, the beneficial interest in the Notes so transferred will be held immediately thereafter through Euroclear (as defined in such Indenture) or Clearstream (as defined in such Indenture).

7. We have advised the transferee of the transfer restrictions applicable to the Notes.

You, the Company, and counsel for the Company are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the meanings set forth in Regulation S.

 

Very truly yours,
[NAME OF SELLER]
By:    
  Name:
  Title:
  Address:

Date of this Certificate:                  , 20     

 

D-2


EXHIBIT E

Form of Supplemental Indenture in Respect of Subsidiary Guarantees

SUPPLEMENTAL INDENTURE, dated as of [                  ] (this “ Supplemental Indenture ”), among [name of Guarantor(s)] (the “ Subsidiary Guarantor(s) ”), [name of Company] (the “ Company ”), and each other then existing Subsidiary Guarantor under the Indenture referred to below (the “ Existing Guarantors ”), and [NAME], as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, the Company, any Existing Guarantors and the Trustee have heretofore become parties to an Indenture, dated as of December 1, 2016 (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), providing for the issuance of Notes in series;

WHEREAS, Section 1308 of the Indenture provides that the Company is required to cause the Subsidiary Guarantors to execute and deliver to the Trustee a supplemental indenture pursuant to which the Subsidiary Guarantors shall guarantee the Company’s Subsidiary Guaranteed Obligations under the Notes pursuant to a Subsidiary Guarantee on the terms and conditions set forth herein and in Article XIII of the Indenture;

WHEREAS, each Subsidiary Guarantor desires to enter into such supplemental indenture for good and valuable consideration, including substantial economic benefit in that the financial performance and condition of such Subsidiary Guarantor is dependent on the financial performance and condition of the Company, the obligations hereunder of which such Subsidiary Guarantor has guaranteed, and on such Subsidiary Guarantor’s access to working capital through the Company’s access to revolving credit borrowings under the Senior ABL Facility; and

WHEREAS, pursuant to Section 901 of the Indenture, the parties hereto are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Subsidiary Guarantors, the Company, the Existing Guarantors and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows:

1. Defined Terms . As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

 

E-1


2. Agreement to Guarantee . [The] [Each] Subsidiary Guarantor hereby agrees, jointly and severally with [all] [any] other Subsidiary Guarantors and fully and unconditionally, to guarantee the Subsidiary Guaranteed Obligations under the Indenture and the Notes on the terms and subject to the conditions set forth in Article XIII of the Indenture and to be bound by (and shall be entitled to the benefits of) all other applicable provisions of the Indenture as a Subsidiary Guarantor.

3. Termination, Release and Discharge . [The] [Each] Subsidiary Guarantor’s Subsidiary Guarantee shall terminate and be of no further force or effect, and [the] [each] Subsidiary Guarantor shall be released and discharged from all obligations in respect of such Subsidiary Guarantee, as and when provided in Section 1303 of the Indenture.

4. Parties . Nothing in this Supplemental Indenture is intended or shall be construed to give any Person, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of [the] [each] Subsidiary Guarantor’s Subsidiary Guarantee or any provision contained herein or in Article XIII of the Indenture.

5. Governing Law . THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

6. Ratification of Indenture; Supplemental Indentures Part of Indenture . Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

7. Counterparts . The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile transmission, PDF or other similar electronic transmission shall constitute effective execution and delivery of this Supplemental Indenture as to all the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile transmission, PDF or other similar electronic transmission shall be deemed to be their original signatures for all purposes.

 

E-2


8. Headings . The section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

E-3


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

[NAME OF SUBSIDIARY GUARANTOR(S)], as Subsidiary Guarantor
By:    
  Name:
  Title:

 

[NAME OF COMPANY]
By:    
  Name:
  Title:

 

[NAME], as Trustee
By:    
  Authorized Officer

 

E-4


EXHIBIT F

Form of Certificate from Acquiring Institutional Accredited Investors

WILMINGTON TRUST, NATIONAL ASSOCIATION

[address]

Attention: 12

Re: New Amethyst Corp. (the “ Company ”)

[            ]% Senior Notes due [            ], 20[    ] (the “Notes”)

Ladies and Gentlemen:

In connection with our proposed sale of $                  aggregate principal amount of Notes, we confirm that:

1. We understand that any subsequent transfer of the Notes is subject to certain restrictions and conditions set forth in the Indenture dated as of December 1, 2016, relating to the Notes (as amended, supplemented, waived or otherwise modified, the “ Indenture ”) and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the “ Securities Act ”).

2. We understand that the Notes have not been registered under the Securities Act or any other applicable securities law, and that the Notes may not be offered, sold or otherwise transferred except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should offer, sell, transfer, pledge, hypothecate or otherwise dispose of any Notes within one year after the original issuance of the Notes, we will do so only ( A ) to the Company or a Subsidiary, ( B ) inside the United States to a “qualified institutional buyer” in compliance with Rule 144A under the Securities Act, ( C ) inside the United States to an institutional “accredited investor” (as defined below) that, prior to such transfer, furnishes to you a signed letter substantially in the form of this letter, ( D ) outside the United States to a foreign person in compliance with Rule 904 of Regulation S under the Securities Act, ( E ) pursuant to the exemption from registration provided by Rule 144 under the Securities Act (if available), or ( F ) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person purchasing any of the Notes from us a notice advising such purchaser that resales of the Notes are restricted as stated herein and in the Indenture.

3. We understand that, on any proposed transfer of any Notes prior to the later of the original issue date of the Notes and the last date the Notes were held by an affiliate of the Company pursuant to paragraphs 2(C), 2(D) and 2(E) above, we will be required to furnish to

 

12  

Insert successor address or Trustee, as applicable.

 

F-1


you and the Company such certifications, legal opinions and other information as you and the Company may reasonably require to confirm that the proposed transfer complies with the foregoing restrictions. We further understand that the Notes purchased by us will bear a legend to the foregoing effect.

4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are acting are acquiring the Notes for investment purposes and not with a view to, or offer or sale in connection with, any distribution in violation of the Securities Act, and we are each able to bear the economic risk of our or its investment.

5. We are acquiring the Notes purchased by us for our own account or for one or more accounts (each of which is an institutional “ accredited investor ”) as to each of which we exercise sole investment discretion.

You, the Company and counsel to the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby.

 

Very truly yours,
(Name of Transferee)
By:    
  Authorized Signature

 

F-2


EXHIBIT G

FORM OF SUPPLEMENTAL INDENTURE ESTABLISHING A SERIES OF NOTES

[NAME OF COMPANY]

as Issuer

and

the Subsidiary Guarantors from time to time party to the Indenture

and

[NAME]

as Trustee

 

 

[            ] SUPPLEMENTAL INDENTURE

DATED AS OF [                ], 20[    ]

 

 

[        ]% Senior Notes Due 20[    ]

 

G-1


EXHIBIT G

[                 ] 13 SUPPLEMENTAL INDENTURE, dated as of [                  ], 20[      ] (this “ Supplemental Indenture ”), among [name of Company] (the “ Company ”), as issuer, the Subsidiary Guarantors under the Indenture referred to below (the “ Subsidiary Guarantors ”), and [NAME], as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, the Company, the Subsidiary Guarantors and the Trustee, are party to an Indenture, dated as of December 1, 2016 (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), relating to the issuance from time to time by the Company of Notes;

WHEREAS, Section 901(8) of the Indenture provides that the Company may provide for the issuance of Notes of any series as permitted by Section 301 therein;

WHEREAS, in connection with the issuance of the [            ] Notes (as defined herein), the Company has duly authorized the execution and delivery of this Supplemental Indenture to establish the forms and terms of the [            ] Notes as hereinafter described; and

WHEREAS, pursuant to Section 901 of the Indenture, the parties hereto are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company, the Subsidiary Guarantors and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows:

1. Defined Terms . As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as so defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

2. Title of Notes . There shall be a series of Notes of the Company designated the “[    ]% 14 Senior Notes due 20[    ]” 15 (the “ [            ] 16 Notes ”).

 

13   Insert supplement number.
14   Insert interest rate.
15   Insert year during which the maturity date falls.
16   Insert title of notes.

 

G-2


3. Maturity Date . The final Stated Maturity of the [            ] Notes shall be [[                ], 20[    ]]. 17

4. Interest and Interest Rates . Interest on the Outstanding principal amount of [            ] Notes will accrue at the rate of [        ]% 18 per annum and will be payable semi-annually in arrears on [[            ] and [            ]] 19 in each year, commencing on [[                ], 20[    ]], 20 to holders of record on the immediately preceding [[            ] and [            ]], 21 respectively (each such [            ] and [            ], a “ Regular Record Date ”). Interest on the [             ] Notes will accrue from the most recent date to which interest has been paid or provided for or, if no interest has been paid, from [            ], 20[     ], except that interest on any Additional [            ] Notes (as defined below) issued on or after the first Interest Payment Date will accrue (or will be deemed to have accrued) from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid on such Additional [            ] Notes, from the Interest Payment Date immediately preceding the date of issuance of such Additional [            ] Notes (or if the date of issuance of such Additional [            ] Notes is an Interest Payment Date, from such date of issuance); provided that if any [            ] Note issued in exchange therefor is surrendered for exchange on or after a record date for an Interest Payment Date that will occur on or after the date of such exchange, interest on such Note received in exchange thereof will accrue from such Interest Payment Date.

5. [No] Limitation on Aggregate Principal Amount . The aggregate principal amount of [            ] Notes that may be authenticated and delivered and Outstanding under the Indenture is [not limited][limited to $[            ]]. 22 [The aggregate principal amount of the [             ] Notes shall initially be $[            ] 23 million.] 24 [The aggregate principal amount of the [            ] Notes issued pursuant to this Supplemental Indenture shall be $[            ] million.] 25 Subject to Section 407 of the Indenture, the Company may from time to time, without the consent of the Holders, create

 

17   Insert Maturity Date.
18   Insert interest rate.
19   Insert Interest Payment Dates.
20   Insert First Interest Payment Date.
21   Insert Record Dates.
22   Insert whether the applicable series of Notes will be limited or not.
23   Insert principal amount of issuance.
24   Insert for the initial Notes of any applicable series.
25  

Insert for the Additional Notes of any applicable series.

 

G-3


and issue Additional Notes having the same terms and conditions as the [            ] Notes in all respects or in all respects except for issue date, issue price and, if applicable, the first date on which interest accrues and the first payment of interest thereon. Additional Notes issued in this manner will be consolidated with, and will form a single series with, the [            ] Notes (any such Additional Notes, “ Additional [            ] Notes ”), unless otherwise specified for Additional Notes in an applicable Notes Supplemental Indenture, or otherwise designated by the Company, as contemplated by Section 301 of the Indenture.

6. Redemption . (a) The [            ] Notes will be redeemable, at the Company’s option, in whole or in part, at any time and from time to time on and after [[            ], 20[    ]] 26 and prior to maturity at the applicable redemption price set forth below. Such redemption may be made upon notice sent to each Holder’s registered address in accordance with Section 1005 of the Indenture, and, if applicable, the Company should notify the Trustee of such Redemption Date, and the principal amount of Notes to be redeemed, in accordance with Section 1003 of the Indenture, but the failure to so notify the Trustee shall not invalidate any notice given in accordance with Section 1005 of the Indenture and shall not constitute a Default or Event of Default by the Company. The Company may provide in such notice that payment of the redemption price and the performance of the Company’s obligations with respect to such redemption may be performed by another Person. Any such redemption and notice may, in the Company’s discretion, be subject to the satisfaction of one or more conditions precedent, including but not limited to the occurrence of a Change of Control. The [            ] Notes will be so redeemable at the following redemption prices (expressed as a percentage of principal amount), plus accrued and unpaid interest, if any, to, but not including, the relevant Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the Redemption Date pursuant to Section 307 of the Indenture), if redeemed during the 12-month period commencing on [            ] 27 of the years set forth below:

 

Redemption Period 28

   Price 29  

20[    ]

     [     ]% 

20[    ]

     [     ]% 

20[    ]

     [     ]% 

20[    ] and thereafter

     100.000

(c) In addition, at any time and from time to time [on or] prior to [            ], 20[    ], 30 the Company at its option may redeem [            ] Notes in an aggregate principal amount

 

26   Insert date upon which the Notes are callable.
27   Insert date upon which the Notes are callable.
28   Insert years, adding or deleting lines if applicable.
29   Insert prices.
30  

Insert date until which equity clawback is applicable.

 

G-4


equal to up to [            ]% 31 of the original aggregate principal amount of the Notes (including the principal amount of any Additional [            ] Notes, or any other Additional Notes of the same series as the [            ] Notes), with funds in an equal aggregate amount (the “ Redemption Amount ”) not exceeding the aggregate proceeds of one or more Equity Offerings, at a redemption price (expressed as a percentage of principal amount thereof) of [            ]%, 32 plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the Redemption Date pursuant to Section 307 of the Indenture); 33 provided , however , that an aggregate principal amount of [            ] Notes equal to at least [    ]% of the original aggregate principal amount of [            ] Notes (including the principal amount of any Additional [            ] Notes, or any other Additional Notes of the same series as the [            ] Notes) must remain outstanding immediately after each such redemption.

The Company may make such redemption upon notice sent to each Holder’s registered address in accordance with Section 1005 of the Indenture, and, if applicable, the Company should notify the Trustee of such Redemption Date, and the principal amount of Notes to be redeemed, in accordance with Section 1003 of the Indenture (but in no event more than 180 days after the completion of the related Equity Offering). The Company may provide in such notice that payment of the redemption price and performance of the Company’s obligations with respect to such redemption may be performed by another Person. Any such notice may be given prior to the completion of the related Equity Offering, and any such redemption or notice may, at the Company’s discretion, be subject to the satisfaction of one or more conditions precedent, including but not limited to the completion of the related Equity Offering.

(d) At any time prior to [[                ], 20[    ]], 34 [            ] Notes may also be redeemed in whole or in part, at the Company’s option, at a price (the “ Redemption Price ”) equal to 100.0% of the principal amount thereof plus the Applicable Premium as of, and accrued but unpaid interest, if any, to, but not including, the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the Redemption Date pursuant to Section 307 of the Indenture). Such redemption may be made upon notice sent to each Holder’s registered address in accordance with Section 1005 of the Indenture, and, if applicable, the Company should notify the Trustee of such Redemption Date, and the principal amount of Notes to be redeemed, in accordance with Section 1003 of the Indenture. The Company may provide in such notice that

 

31   Insert maximum percentage for equity clawback.
32   Insert premium.
33   Insert minimum amount required to remain outstanding.
34  

Insert date upon which the Notes are callable.

 

G-5


payment of the Redemption Price and performance of the Company’s obligations with respect to such redemption may be performed by another Person. Any such redemption or notice may, at the Company’s discretion, be subject to the satisfaction of one or more conditions precedent, including but not limited to the occurrence of a Change of Control.

Applicable Premium ” means, with respect to an [            ] Note at any Redemption Date, the greater of ( i ) 1.00% of the principal amount of such [            ] Note and ( ii ) the excess of ( A ) the present value at such Redemption Date, calculated as of the date of the applicable redemption notice, of ( 1 ) the redemption price of such [            ] Note on [[            ], 20[    ]] 35 (such redemption price being that described in Section 6(a) ), plus ( 2 ) all required remaining scheduled interest payments due on such [            ] Note through such date (excluding accrued and unpaid interest to the Redemption Date), computed using a discount rate equal to the Treasury Rate plus 50 basis points, over ( B ) the principal amount of such [            ] Note on such Redemption Date, as calculated by the Company or on behalf of the Company by such Person as the Company shall designate; provided that such calculation shall not be a duty or obligation of the Trustee.

Treasury Rate ” means, with respect to a Redemption Date, the weekly average yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15(519) that has become publicly available at least two Business Days prior to the date of the applicable redemption notice (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from such Redemption Date to [[            ], 20[    ]]; 36 provided , however , that if the period from the Redemption Date to such date is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given, except that if the period from the Redemption Date to such date is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used.

(e) Notwithstanding clauses (a), (b), (c) and (d) of this Section 6 , in connection with any tender for the [            ] Notes, if Holders of not less than 90% in the aggregate principal amount of the outstanding [            ] Notes (including the principal amount of any Additional [            ] Notes, or any other Additional Notes of the same series as the [            ] Notes) validly tender and do not withdraw such Notes in such tender offer and the Company, or any other Person making such tender offer, purchases all of the [            ] Notes (including any Additional [            ] Notes and any Additional Notes of the same series as the [            ] Notes) validly tendered and not withdrawn by such Holders, the Company will have the right, upon notice given not more than 30 days following such purchase pursuant to such tender offer, to redeem all of the [            ] Notes that remain outstanding following such purchase at a price in

 

35   Insert date upon which the Notes are callable.
36  

Insert date upon which the Notes are callable.

 

G-6


cash equal to the price offered to each Holder in such tender offer, plus, to the extent not included in the tender offer payment, accrued and unpaid interest to, but excluding, the Redemption Date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant Interest Payment Date falling prior to or on the Redemption Date).

(f) Any redemption of Notes pursuant to this Section 6 may be made upon notice sent electronically or, at the Company’s option, mailed by first-class mail to each Holder’s registered address in accordance with Section 1005 of the Indenture. The Company may provide in any redemption notice that payment of the redemption price and the performance of the Company’s obligations with respect to such redemption may be performed by another Person.

(g) Any redemption of Notes pursuant to this Section 6 (including in connection with an Equity Offering) or notice thereof may, at the Company’s discretion, be subject to the satisfaction (or, waiver by the Company in its sole discretion) of one or more conditions precedent, which may include consummation of any related Equity Offering or the occurrence of a Change of Control. If such redemption or notice is subject to satisfaction of one or more conditions precedent, such notice may state that, in the Company’s discretion, the Redemption Date may be delayed until such time as any or all such conditions shall be satisfied (or waived by the Company in its sole discretion), or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been (or, in the Company’s sole determination, may not be) satisfied (or waived by the Company in its sole discretion) by the Redemption Date, or by the Redemption Date so delayed.

7. [            ] 37

8. Form . The [            ] Notes shall be issued substantially in the form set forth, or referenced, in Article II of the Indenture, and Exhibit A attached to the Indenture, in each case as provided for in Section 201 of the Indenture (as such form may be modified in accordance with Section 301 of the Indenture).

9. Governing Law . THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

10. Ratification of Indenture; Supplemental Indentures Part of Indenture . Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the

 

37  

Include appropriate provisions in accordance with Section 301(7), Section 301(8) and/or Section 301(9) of the Indenture.

 

G-7


terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

11. Counterparts . The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile transmission, PDF or other similar electronic transmission shall constitute effective execution and delivery of this Supplemental Indenture as to all the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile transmission, PDF or other similar electronic transmission shall be deemed to be their original signatures for all purposes.

12. Headings . The section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

G-8


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

[NAME OF COMPANY]
By:    
  Name:
  Title:

 

[ SUBSIDIARY GUARANTORS:
[                                ]
By:    
  Name:
  Title:] 38

 

[NAME], as Trustee
By:    
  Authorized Officer

 

38   Include if applicable.

 

G-9

Exhibit 4.2

EXECUTION VERSION

FIRST SUPPLEMENTAL INDENTURE, dated as of December 1, 2016 (this “ Supplemental Indenture ”), among New Amethyst Corp. (the “ Company ”), as issuer, and Wilmington Trust, National Association, as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, the Company and the Trustee, are party to an Indenture, dated as of December 1, 2016 (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), relating to the issuance from time to time by the Company of Notes;

WHEREAS, Section 901(8) of the Indenture provides that the Company may provide for the issuance of Notes of any series as permitted by Section 301 therein;

WHEREAS, in connection with the issuance of the 2024 Notes (as defined herein), the Company has duly authorized the execution and delivery of this Supplemental Indenture to establish the forms and terms of the 2024 Notes as hereinafter described; and

WHEREAS, pursuant to Section 901 of the Indenture, the parties hereto are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows:

1. Defined Terms . As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as so defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

2. Title of Notes . There shall be a series of Notes of the Company designated the “6.25% Senior Notes due 2024” (the “ 2024 Notes ”).

3. Maturity Date . The final Stated Maturity of the 2024 Notes shall be December 1, 2024.

4. Interest and Interest Rates . Interest on the Outstanding principal amount of 2024 Notes will accrue at the rate of 6.25% per annum and will be payable semi-annually in arrears on June 1 and December 1 in each year, commencing on June 1, 2017, to holders of record on the immediately preceding May 15 and November 15, respectively


(each such May 15 and November 15, a “ Regular Record Date ”). Interest on the 2024 Notes will accrue from the most recent date to which interest has been paid or provided for or, if no interest has been paid, from December 1, 2016, except that interest on any Additional 2024 Notes (as defined below) issued on or after the first Interest Payment Date will accrue (or will be deemed to have accrued) from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid on such Additional 2024 Notes, from the Interest Payment Date immediately preceding the date of issuance of such Additional 2024 Notes (or if the date of issuance of such Additional 2024 Notes is an Interest Payment Date, from such date of issuance); provided that if any 2024 Note issued in exchange therefore is surrendered for exchange on or after a record date for an Interest Payment Date that will occur on or after the date of such exchange, interest on such Note received in exchange thereof will accrue from such Interest Payment Date.

5. No Limitation on Aggregate Principal Amount . The aggregate principal amount of 2024 Notes that may be authenticated and delivered and Outstanding under the Indenture is not limited. The aggregate principal amount of the 2024 Notes shall initially be $550.0 million. Subject to Section 407 of the Indenture, the Company may from time to time, without the consent of the Holders, create and issue Additional Notes having the same terms and conditions as the 2024 Notes in all respects or in all respects except for issue date, issue price and, if applicable, the first date on which interest accrues and the first payment of interest thereon. Additional Notes issued in this manner will be consolidated with, and will form a single series with, the 2024 Notes (any such Additional Notes, “ Additional 2024 Notes ”), unless otherwise specified for Additional Notes in an applicable Notes Supplemental Indenture, or otherwise designated by the Company, as contemplated by Section 301 of the Indenture.

6. Redemption . (a) The 2024 Notes will be redeemable, at the Company’s option, in whole or in part, at any time and from time to time on and after December 1, 2019 and prior to maturity at the applicable redemption price set forth below. Such redemption may be made upon notice sent to each Holder’s registered address in accordance with Section 1005 of the Indenture, and, if applicable, the Company should notify the Trustee of such Redemption Date, and the principal amount of Notes to be redeemed, in accordance with Section 1003 of the Indenture, but the failure to so notify the Trustee shall not invalidate any notice given in accordance with Section 1005 of the Indenture and shall not constitute a Default or Event of Default by the Company. The Company may provide in such notice that payment of the redemption price and the performance of the Company’s obligations with respect to such redemption may be performed by another Person. Any such redemption and notice may, in the Company’s discretion, be subject to the satisfaction of one or more conditions precedent, including but not limited to the occurrence of a Change of Control. The 2024 Notes will be so redeemable at the following redemption prices (expressed as a percentage of principal amount), plus accrued and unpaid interest, if any, to, but not including, the relevant

 

2


Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the Redemption Date pursuant to Section 307 of the Indenture), if redeemed during the 12-month period commencing on December 1 of the years set forth below:

 

Redemption Period

   Price  

2019

     104.688

2020

     103.125

2021

     101.563

2022 and thereafter

     100.000

(c) In addition, at any time and from time to time prior to December 1, 2019, the Company at its option may redeem 2024 Notes in an aggregate principal amount equal to up to 40.0% of the original aggregate principal amount of the Notes (including the principal amount of any Additional 2024 Notes, or any other Additional Notes of the same series as the 2024 Notes), with funds in an equal aggregate amount (the “ Redemption Amount ”) not exceeding the aggregate proceeds of one or more Equity Offerings, at a redemption price (expressed as a percentage of principal amount thereof) of 106.250%, plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the Redemption Date pursuant to Section 307 of the Indenture); provided , however , that an aggregate principal amount of 2024 Notes equal to at least 50.0% of the original aggregate principal amount of 2024 Notes (including the principal amount of any Additional 2024 Notes, or any other Additional Notes of the same series as the 2024 Notes) must remain outstanding immediately after each such redemption.

The Company may make such redemption upon notice sent to each Holder’s registered address in accordance with Section 1005 of the Indenture, and, if applicable, the Company should notify the Trustee of such Redemption Date, and the principal amount of Notes to be redeemed, in accordance with Section 1003 of the Indenture (but in no event more than 180 days after the completion of the related Equity Offering). The Company may provide in such notice that payment of the redemption price and performance of the Company’s obligations with respect to such redemption may be performed by another Person. Any such notice may be given prior to the completion of the related Equity Offering, and any such redemption or notice may, at the Company’s discretion, be subject to the satisfaction of one or more conditions precedent, including but not limited to the completion of the related Equity Offering.

(d) At any time prior to December 1, 2019, 2024 Notes may also be redeemed in whole or in part, at the Company’s option, at a price (the “ Redemption Price ”) equal to 100.0% of the principal amount thereof plus the Applicable Premium as of, and accrued but unpaid interest, if any, to, but not including, the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date to receive interest due on the

 

3


relevant Interest Payment Date falling prior to or on the Redemption Date pursuant to Section 307 of the Indenture). Such redemption may be made upon notice sent to each Holder’s registered address in accordance with Section 1005 of the Indenture, and, if applicable, the Company should notify the Trustee of such Redemption Date, and the principal amount of Notes to be redeemed, in accordance with Section 1003 of the Indenture. The Company may provide in such notice that payment of the Redemption Price and performance of the Company’s obligations with respect to such redemption may be performed by another Person. Any such redemption or notice may, at the Company’s discretion, be subject to the satisfaction of one or more conditions precedent, including but not limited to the occurrence of a Change of Control.

Applicable Premium ” means, with respect to a 2024 Note at any Redemption Date, the greater of ( i ) 1.00% of the principal amount of such 2024 Note and ( ii ) the excess of ( A ) the present value at such Redemption Date, calculated as of the date of the applicable redemption notice, of ( 1 ) the redemption price of such 2024 Note on December 1, 2019 (such redemption price being that described in Section 6(a) ), plus ( 2 ) all required remaining scheduled interest payments due on such 2024 Note through such date (excluding accrued and unpaid interest to the Redemption Date), computed using a discount rate equal to the Treasury Rate plus 50 basis points, over ( B ) the principal amount of such 2024 Note on such Redemption Date, as calculated by the Company or on behalf of the Company by such Person as the Company shall designate; provided that such calculation shall not be a duty or obligation of the Trustee.

Treasury Rate ” means, with respect to a Redemption Date, the weekly average yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15(519) that has become publicly available at least two Business Days prior to the date of the applicable redemption notice (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from such Redemption Date to December 1, 2019; provided , however , that if the period from the Redemption Date to such date is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given, except that if the period from the Redemption Date to such date is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used.

(e) Notwithstanding clauses (a), (b), (c) and (d) of this Section 6 , in connection with any tender for the 2024 Notes, if Holders of not less than 90% in the aggregate principal amount of the outstanding 2024 Notes (including the principal amount of any Additional 2024 Notes, or any other Additional Notes of the same series as the 2024 Notes) validly tender and do not withdraw such Notes in such tender offer

 

4


and the Company, or any other Person making such tender offer, purchases all of the 2024 Notes (including any Additional 2024 Notes and any Additional Notes of the same series as the 2024 Notes) validly tendered and not withdrawn by such Holders, the Company will have the right, upon notice given not more than 30 days following such purchase pursuant to such tender offer, to redeem all of the 2024 Notes that remain outstanding following such purchase at a price in cash equal to the price offered to each Holder in such tender offer, plus, to the extent not included in the tender offer payment, accrued and unpaid interest to, but excluding, the Redemption Date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant Interest Payment Date falling prior to or on the Redemption Date).

(f) Any redemption of Notes pursuant to this Section 6 may be made upon notice sent electronically or, at the Company’s option, mailed by first-class mail to each Holder’s registered address in accordance with Section 1005 of the Indenture. The Company may provide in any redemption notice that payment of the redemption price and the performance of the Company’s obligations with respect to such redemption may be performed by another Person.

(g) Any redemption of Notes pursuant to this Section 6 (including in connection with an Equity Offering) or notice thereof may, at the Company’s discretion, be subject to the satisfaction (or, waiver by the Company in its sole discretion) of one or more conditions precedent, which may include consummation of any related Equity Offering or the occurrence of a Change of Control. If such redemption or notice is subject to satisfaction of one or more conditions precedent, such notice may state that, in the Company’s discretion, the Redemption Date may be delayed until such time as any or all such conditions shall be satisfied (or waived by the Company in its sole discretion), or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been (or, in the Company’s sole determination, may not be) satisfied (or waived by the Company in its sole discretion) by the Redemption Date, or by the Redemption Date so delayed.

7. [Reserved].

8. Form . The 2024 Notes shall be issued substantially in the form set forth, or referenced, in Article II of the Indenture, and Exhibit A attached to the Indenture, in each case as provided for in Section 201 of the Indenture (as such form may be modified in accordance with Section 301 of the Indenture).

9. Governing Law . THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

 

5


10. Ratification of Indenture; Supplemental Indentures Part of Indenture . Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

11. Counterparts . The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile transmission, PDF or other similar electronic transmission shall constitute effective execution and delivery of this Supplemental Indenture as to all the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile transmission, PDF or other similar electronic transmission shall be deemed to be their original signatures for all purposes.

12. Headings . The section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

6


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

NEW AMETHYST CORP.
By:   /s/ Claire M. Gulmi
  Name:   Claire M. Gulmi
  Title:   Vice President and Secretary

 

[Signature Page to First Supplemental Indenture]


WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
By:   /s/ Joseph P. O’Donnell
  Name: Joseph P. O’Donnell
  Title:   Authorized Officer

 

[Signature Page to First Supplemental Indenture]

Exhibit 4.3

EXECUTION VERSION

Supplemental Indenture in Respect of Subsidiary Guarantees

December 1, 2016

SECOND SUPPLEMENTAL INDENTURE, dated as of December 1, 2016 (this “ Supplemental Indenture ”), among the Subsidiaries listed on Schedule A hereto (the “ New Subsidiary Guarantors ” and each, a “ New Subsidiary Guarantor ”), Envision Healthcare Corporation (f/k/a New Amethyst Corp.) (together with its successors and assigns, the “ Company ”) and Wilmington Trust, National Association, as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, the Company and the Trustee, are party to an Indenture, dated as of December 1, 2016 (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), relating to the issuance from time to time by the Company of Notes;

WHEREAS, Section 1308 of the Indenture provides that the Company is required to cause the New Subsidiary Guarantors to execute and deliver to the Trustee a supplemental indenture pursuant to which the New Subsidiary Guarantors shall guarantee the Company’s Subsidiary Guaranteed Obligations under the Notes pursuant to a Subsidiary Guarantee on the terms and conditions set forth herein and in Article XIII of the Indenture;

WHEREAS, each New Subsidiary Guarantor desires to enter into such supplemental indenture for good and valuable consideration, including substantial economic benefit in that the financial performance and condition of such New Subsidiary Guarantor is dependent on the financial performance and condition of the Company, the obligations hereunder of which such New Subsidiary Guarantor has guaranteed, and on such New Subsidiary Guarantor’s access to working capital through the Company’s access to revolving credit borrowings under the Senior ABL Facility; and

WHEREAS, pursuant to Section 901 of the Indenture, the parties hereto are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Subsidiary Guarantors, the Company and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows:

1. Defined Terms . As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as so defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.


2. Agreement to Guarantee . Each New Subsidiary Guarantor hereby agrees, jointly and severally with the other New Subsidiary Guarantors fully and unconditionally, to guarantee the Subsidiary Guaranteed Obligations under the Indenture and the Notes on the terms and subject to the conditions set forth in Article XIII of the Indenture and to be bound by (and shall be entitled to the benefits of) all other applicable provisions of the Indenture as a Subsidiary Guarantor.

3. Termination, Release and Discharge . Each New Subsidiary Guarantor’s Subsidiary Guarantee shall terminate and be of no further force or effect, and each New Subsidiary Guarantor shall be released and discharged from all obligations in respect of such Subsidiary Guarantee, as and when provided in Section 1303 of the Indenture.

4. Parties . Nothing in this Supplemental Indenture is intended or shall be construed to give any Person, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of any New Subsidiary Guarantor’s Subsidiary Guarantee or any provision contained herein or in Article XIII of the Indenture.

5. Governing Law . THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

6. Ratification of Indenture; Supplemental Indentures Part of Indenture . Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

7. Counterparts . The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile transmission, PDF or other similar electronic transmission shall constitute effective execution and delivery of this Supplemental Indenture as to all the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile transmission, PDF or other similar electronic transmission shall be deemed to be their original signatures for all purposes.

8. Headings . The section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

2


ENVISION GUARANTORS :
CLINICAL PARTNERS MANAGEMENT COMPANY, LLC
NORTHWOOD ANESTHESIA ASSOCIATES, L.L.C.
  By:   /s/ William A. Sanger
         Name:   William A. Sanger
         Title:   Manager

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):

A1 LEASING, INC.

ABBOTT AMBULANCE, INC.

ACCENT HOME HEALTH CARE INC.

ADAM TRANSPORTATION SERVICE, INC.

AFFILION, INC.

AIR AMBULANCE SPECIALISTS, INC.

AMBULANCE ACQUISITION, INC.

AMERICAN EMERGENCY PHYSICIANS MANAGEMENT, INC.

AMERICAN INVESTMENT ENTERPRISES, INC.

AMERICAN MEDICAL PATHWAYS, INC.

AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC.

AMERICAN MEDICAL RESPONSE HOLDINGS, INC.

AMERICAN MEDICAL RESPONSE MANAGEMENT, INC.

AMERICAN MEDICAL RESPONSE MID-ATLANTIC, INC.

AMERICAN MEDICAL RESPONSE NORTHWEST, INC.

AMERICAN MEDICAL RESPONSE OF COLORADO, INC.

AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INCORPORATED

AMERICAN MEDICAL RESPONSE OF GEORGIA, INC.

AMERICAN MEDICAL RESPONSE OF ILLINOIS, INC.

AMERICAN MEDICAL RESPONSE OF INLAND EMPIRE

AMERICAN MEDICAL RESPONSE OF MASSACHUSETTS, INC.

AMERICAN MEDICAL RESPONSE OF NORTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF OKLAHOMA, INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):

AMERICAN MEDICAL RESPONSE OF SOUTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF SOUTHERN CALIFORNIA

AMERICAN MEDICAL RESPONSE OF TENNESSEE, INC.

AMERICAN MEDICAL RESPONSE OF TEXAS, INC.

AMERICAN MEDICAL RESPONSE WEST

AMERICAN MEDICAL RESPONSE, INC.

AMR BAY STATE, LLC

AMR HOLDCO, INC.

AMR OF CENTRAL TEXAS I, LLC

AMR OF CENTRAL TEXAS II, LLC

APH LABORATORY SERVICES, INC.

ARIZONA EMS HOLDINGS, INC.

ASSOCIATED AMBULANCE SERVICE, INC.

ATLANTIC AMBULANCE SERVICES ACQUISITION, INC.

ATLANTIC/KEY WEST AMBULANCE, INC.

ATLANTIC/PALM BEACH AMBULANCE, INC.

BEACON TRANSPORTATION, INC.

BESTPRACTICES, INC.

BLYTHE AMBULANCE SERVICE

BOWERS COMPANIES, INC.

BROWARD AMBULANCE, INC.

COMMUNITY AUTO AND FLEET SERVICES L.L.C.

COMMUNITY EMS, INC.

COMTRANS AMBULANCE SERVICE, INC.

COMTRANS, INC.

CORNING AMBULANCE SERVICE INC.

DESERT VALLEY MEDICAL TRANSPORT, INC.

DONLOCK, LTD.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):

E.M.S. VENTURES, INC.

EASTERN AMBULANCE SERVICE, INC.

EASTERN PARAMEDICS, INC.

EHR MANAGEMENT CO.

EMCARE ANESTHESIA PROVIDERS, INC.

EMCARE HOLDCO, INC.

EMCARE HOLDINGS INC.

EMCARE OF CALIFORNIA, INC.

EMCARE PHYSICIAN PROVIDERS, INC.

EMCARE PHYSICIAN SERVICES, INC.

EMCARE, INC.

EMERGENCY MEDICAL SERVICES LP CORPORATION

EMERGENCY MEDICAL TRANSPORT, INC.

EMERGENCY MEDICAL TRANSPORTATION, INC.

EMERGENCY MEDICINE EDUCATION SYSTEMS, INC.

EMS VENTURES OF SOUTH CAROLINA, INC.

EPSILON MANAGEMENT GROUP, INC.

FIVE COUNTIES AMBULANCE SERVICE, INC.

FLORIDA EMERGENCY PARTNERS, INC.

FOUNTAIN AMBULANCE SERVICE, INC.

GILA HOLDCO LLC

GOLD COAST AMBULANCE SERVICE

GOLD CROSS AMBULANCE SERVICE OF PA., INC.

GOLD CROSS AMBULANCE SERVICES, INC.

GRACE BEHAVIORAL HEALTH, L.L.C.

GREATER PINELLAS TRANSPORTATION MANAGEMENT SERVICES, INC.

GUARDIAN HEALTH CARE, INC.

GUARDIAN HEALTHCARE GROUP, INC.

GUARDIAN HEALTHCARE HOLDINGS, INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):

HANK’S ACQUISITION CORP.

HEALTH PRIORITY HOME CARE, INC.

HEALTHCARE ADMINISTRATIVE SERVICES, INC.

HEMET VALLEY AMBULANCE SERVICE, INC.

HERREN ENTERPRISES, INC.

HOLIDAY ACQUISITION COMPANY, INC.

INTERNATIONAL LIFE SUPPORT, INC.

JLM HEALTHCARE, INC.

KMAC, INC.

KUTZ AMBULANCE SERVICE, INC.

LASALLE AMBULANCE INC.

LIFE LINE AMBULANCE SERVICE, INC.

LIFECARE AMBULANCE SERVICE, INC.

LIFEFLEET SOUTHEAST, INC.

MAINSTAY SOLUTIONS, LLC

MARLBORO HUDSON AMBULANCE & WHEELCHAIR SERVICE, INC.

MEDEVAC MEDICAL RESPONSE, INC.

MEDEVAC MIDAMERICA, INC.

MEDIC ONE AMBULANCE SERVICES, INC.

MEDIC ONE OF COBB, INC.

MEDICAL EMERGENCY DEVICES AND SERVICES (MEDS), INC.

MEDI-CAR AMBULANCE SERVICE, INC.

MEDI-CAR SYSTEMS, INC.

MEDICS AMBULANCE SERVICE (DADE), INC.

MEDICS AMBULANCE SERVICE, INC.

MEDICS AMBULANCE, INC.

MEDICS EMERGENCY SERVICES OF PALM BEACH COUNTY, INC.

MEDICS SUBSCRIPTION SERVICES, INC.

MEDICS TRANSPORT SERVICES, INC.

MEDICWEST AMBULANCE, INC.

MEDICWEST HOLDINGS, INC.

MEDLIFE EMERGENCY MEDICAL SERVICE, INC.

MEDSTAT EMS, INC.

MERCURY AMBULANCE SERVICE, INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):

MERCY AMBULANCE OF EVANSVILLE, INC.

MERCY LIFE CARE

MERCY, INC.

METRO AMBULANCE SERVICE (RURAL), INC.

METRO AMBULANCE SERVICE, INC.

METRO AMBULANCE SERVICES, INC.

METRO CARE CORP.

METROPOLITAN AMBULANCE SERVICE

MIDWEST AMBULANCE MANAGEMENT COMPANY

MOBILE MEDIC AMBULANCE SERVICE, INC.

NATIONAL AMBULANCE & OXYGEN SERVICE, INC.

NEVADA RED ROCK AMBULANCE, INC.

NEVADA RED ROCK HOLDINGS, INC.

NORTH MISS. AMBULANCE SERVICE, INC.

OHERBST, INC.

PACIFIC AMBULANCE, INC.

PARAMED, INC.

PARK AMBULANCE SERVICE INC.

PHYSICIAN ACCOUNT MANAGEMENT, INC.

PHYSICIANS & SURGEONS AMBULANCE SERVICE, INC.

PROFESSIONAL MEDICAL TRANSPORT, INC.

PROVIDER ACCOUNT MANAGEMENT, INC.

PUCKETT AMBULANCE SERVICE, INC.

R/M ARIZONA HOLDINGS, INC.

R/M MANAGEMENT CO., INC.

R/M OF TENNESSEE G.P., INC.

R/M OF TENNESSEE L.P., INC.

RADIOLOGY STAFFING SOLUTIONS, INC.

RADSTAFFING MANAGEMENT SOLUTIONS, INC.

RANDLE EASTERN AMBULANCE SERVICE, INC.

REIMBURSEMENT TECHNOLOGIES, INC.

RIVER MEDICAL INCORPORATED

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):

RURAL/METRO (DELAWARE), INC.

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION OF FLORIDA

RURAL/METRO CORPORATION OF TENNESSEE

RURAL/METRO FIRE DEPT., INC.

RURAL/METRO OF BREWERTON, INC.

RURAL/METRO OF CALIFORNIA, INC.

RURAL/METRO OF CENTRAL ALABAMA, INC.

RURAL/METRO OF CENTRAL COLORADO, INC.

RURAL/METRO OF CENTRAL OHIO, INC.

RURAL/METRO OF GREATER SEATTLE, INC.

RURAL/METRO OF NEW YORK, INC.

RURAL/METRO OF NORTHERN CALIFORNIA, INC.

RURAL/METRO OF NORTHERN OHIO, INC.

RURAL/METRO OF OHIO, INC.

RURAL/METRO OF OREGON, INC.

RURAL/METRO OF ROCHESTER, INC.

RURAL/METRO OF SAN DIEGO, INC.

RURAL/METRO OF SOUTHERN CALIFORNIA, INC.

RURAL/METRO OF SOUTHERN OHIO, INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):

S. FISHER & S. THOMAS INC.

SEMINOLE COUNTY AMBULANCE, INC.

SIOUX FALLS AMBULANCE, INC.

SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC.

SOUTHWEST AMBULANCE OF CASA GRANDE, INC.

SOUTHWEST AMBULANCE OF NEW MEXICO, INC.

SOUTHWEST AMBULANCE OF SOUTHEASTERN ARIZONA, INC.

SOUTHWEST AMBULANCE OF TUCSON, INC.

SOUTHWEST GENERAL SERVICES, INC.

SPRINGS AMBULANCE SERVICE, INC.

SSAG, LLC

STAT HEALTHCARE, INC.

SUNRISE HANDICAP TRANSPORT CORP.

SW GENERAL, INC.

T.M.S. MANAGEMENT GROUP INC.

TEK AMBULANCE, INC.

THE AID AMBULANCE COMPANY, INC.

THE AID COMPANY, INC.

TIDEWATER AMBULANCE SERVICE, INC.

TKG, INC.

TOWNS AMBULANCE SERVICE, INC.

TRANSPORTATION MANAGEMENT SERVICES OF BREVARD, INC.

TROUP COUNTY EMERGENCY MEDICAL SERVICES, INC.

VALLEY FIRE SERVICE, INC.

VELITA SMITH HOME HEALTH, INC.

V.I.P. PROFESSIONAL SERVICES, INC.

VISTA STAFFING SOLUTIONS, INC.

VITAL ENTERPRISES, INC.

W&W LEASING COMPANY, INC.

WP ROCKET HOLDINGS INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
ACCESS 2 CARE, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Access 2 Care, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                              
    Title:   Secretary
ACUTE MANAGEMENT, LLC
  By: HAWKEYE HOLDCO LLC, as Sole Member of Acute Management, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
AGAPE HEALTH CARE AGENCY, LLC.
CARE CONNECTION OF CINCINNATI LLC
GEM CITY HOME CARE, LLC
GUARDIAN OHIO NEWCO, LLC
  By: GUARDIAN HEALTHCARE HOLDINGS, INC., as Sole Member of Agape Health Care Agency, LLC, Care Connection of Cincinnati LLC, Gem City Home Care, LLC and Guardian Ohio NewCo, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):

ALPHA PHYSICIAN RESOURCES, L.L.C.

  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE DELAWARE VALLEY, LLC

  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                              
    Title:   Secretary

AMERICAN MEDICAL RESPONSE HPPP, LLC

  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response HPPP, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE OF MARICOPA, LLC

  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE OF PIMA, LLC

  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
AMR BROCKTON, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
APEX ACQUISITION LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
BRAVO REIMBURSEMENT SPECIALIST, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
CMORX, LLC
  By: EMCARE, INC., as Sole Member of CMORx, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                              
    Title:   Secretary
ED SOLUTIONS, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
EDIMS, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                              
    Title:   Secretary
EMS MANAGEMENT LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
EMS OFFSHORE MEDICAL SERVICES, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
EMSC SERVICESCO, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
EVERRAD, LLC
  By: TEMPLETON READINGS, LLC, as Sole Member of EverRad, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
EVOLUTION HEALTH LLC
  By:   /s/ Craig A. Wilson                              
    Name:   Craig A. Wilson
    Title:   Secretary
EVOLUTION MOBILE IMAGING, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
HAWKEYE HOLDCO LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
MEDASSOCIATES, LLC
  By: EMCARE, INC., as Sole Member of MedAssociates, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
MISSION CARE OF ILLINOIS, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Illinois, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
MISSION CARE OF MISSOURI, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Missouri, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                          
    Title:   Secretary
MISSION CARE SERVICES, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
MSO NEWCO, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
PHOENIX PHYSICIANS, LLC
STREAMLINED MEDICAL SOLUTIONS LLC
  By: EMCARE, INC., as Sole Member of Phoenix Physicians, LLC and Streamlined Medical Solutions LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                              
    Title:   Secretary
PINNACLE CONSULTANTS MID-ATLANTIC, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
PROVEN HEALHCARE SOLUTIONS OF NEW JERSEY, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
PROVIDACARE, L.L.C.
  By: AMERICAN MEDICAL PATHWAYS, INC., as Sole Member of ProvidaCare, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
QRX MEDICAL MANAGEMENT, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Senior Vice President and Secretary
RMC CORPORATE CENTER, L.L.C.
  By: RURAL/METRO CORPORATION, as Member of RMC Corporate Center, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                              
    Title:   Secretary
RURAL/METRO MID-SOUTH, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro Mid-South, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO OF INDIANA, L.P.
  By: THE AID AMBULANCE COMPANY, INC., as General Partner of Rural/Metro of Indiana, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
RURAL/METRO OF TENNESSEE, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro of Tennessee, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO OPERATING COMPANY, LLC
  By: RURAL/METRO CORPORATION, as Sole Member of Rural/Metro Operating Company, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
SAN DIEGO MEDICAL SERVICES ENTERPRISE, LLC
  By: RURAL/METRO OF SOUTHERN CALIFORNIA, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
  By: RURAL/METRO OF SAN DIEGO, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
REGIONAL EMERGENCY SERVICES, L.P.
  By: FLORIDA EMERGENCY PARTNERS, INC., as General Partner of Regional Emergency Services, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
ROSE RADIOLOGY, LLC
  By: SPOTLIGHT HOLDCO LLC, as Sole Member of Rose Radiology, LLC
  By: EMCARE, INC., as Sole Member of EmCare, Inc.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                              
    Title:   Secretary
SEAWALL ACQUISITION, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
SPOTLIGHT HOLDCO LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
SUN DEVIL ACQUISITION LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
TEMPLETON READINGS, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
WHITAKER PHYSICIANS SERVICES, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson                              
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
AMERICAN MEDICAL RESPONSE OF NEW YORK, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response of New York, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
METROCARE SERVICES—ABILENE, L.P.
  By: AMR OF CENTRAL TEXAS II, LLC, as General Partner of MetroCare Services—Abilene, L.P.
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of AMR of Central Texas II, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
PATIENT ADVOCACY GROUP, LLC
  By: AMR HOLDCO, INC., as Sole Member of Patient Advocacy Group, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Second Supplemental Indenture]


ENVISION GUARANTORS (cont’d):
ERGENCY STAFFING AND RECRUITING, LLC
  By:   /s/ Douglas P. Webster, D.O.
    Name:   Douglas P. Webster, D.O.
    Title:   Manager

 

[Signature Page to Second Supplemental Indenture]


AMSURG GUARANTORS :
AMSURG ABILENE, INC.
AMSURG ABILENE EYE, INC.
AMSURG ALTAMONTE SPRINGS FL, INC.
AMSURG ANESTHESIA MANAGEMENT SERVICES, LLC
AMSURG ARCADIA CA, INC.
AMSURG BURBANK, INC.
AMSURG COLTON CA, INC.
AMSURG CRYSTAL RIVER, INC.
AMSURG EC BEAUMONT, INC.
AMSURG EC SANTA FE, INC.
AMSURG EC ST. THOMAS, INC.
AMSURG EC TOPEKA, INC.
AMSURG EC WASHINGTON, INC.
AMSURG EL PASO, INC.
AMSURG ESCONDIDO CA, INC.
AMSURG FINANCE, INC.
AMSURG FRESNO ENDOSCOPY, INC.
AMSURG GLENDORA CA, INC.
AMSURG HILLMONT, INC.
AMSURG HOLDINGS, INC.
AMSURG INGLEWOOD, INC.
AMSURG KEC, INC.
AMSURG KISSIMMEE FL, INC.
AMSURG LA JOLLA, INC.
AMSURG LANCASTER PA, LLC
AMSURG MAIN LINE PA, LLC
AMSURG MARYVILLE, INC.
AMSURG MELBOURNE, INC.
AMSURG NORTHWEST FLORIDA, INC.
AMSURG OAKLAND CA, INC.
AMSURG OCALA, INC.
AMSURG PALMETTO, INC.
AMSURG POTTSVILLE PA, LLC
AMSURG SAN ANTONIO TX, INC.
AMSURG SAN LUIS OBISPO CA, INC.
AMSURG SUNCOAST, INC.
AMSURG TEMECULA CA, INC.
AMSURG TEMECULA II INC.
AMSURG TORRANCE, INC.
AMSURG SCRANTON PA, INC.
By:   /s/ Claire M. Gulmi
        Name:   Claire M. Gulmi
        Title:   Vice President, Secretary and Treasurer

 

[Signature Page to Second Supplemental Indenture]


AMSURG GUARANTORS (cont’d):
ASDH I, LLC
AUSTIN NSC, LLC
CORAL SPRINGS NSC, LLC
DAVIS NSC, LLC
FULLERTON NSC, LLC
KENWOOD NSC, LLC
LONG BEACH NSC, LLC
NSC RBO EAST, LLC
NSC WEST PALM, LLC
SAN ANTONIO NSC, LLC
SHI II, LLC
TAMPA BAY NSC, LLC
TORRANCE NSC, LLC
TOWSON NSC, LLC
TWIN FALLS NSC, LLC
WESTON NSC, LLC
By:   /s/ Claire M. Gulmi
        Name:   Claire M. Gulmi
        Title:   Vice President, Secretary and Treasurer
AUSTIN NSC, LP
        By: Austin NSC, LLC, its general partner
        By:   /s/ Claire M. Gulmi
        Name:   Claire M. Gulmi
        Title:   Vice President, Secretary and Treasurer
WILTON NSC, LLC
 

By: AmSurg Holdings, Inc. as the managing member

        By:   /s/ Claire M. Gulmi
        Name:     Claire M. Gulmi
        Title:     Vice President, Secretary and Treasurer

 

[Signature Page to Second Supplemental Indenture]


AMSURG GUARANTORS (cont’d):

ALL WOMEN’S HEALTHCARE HOLDINGS, INC.

ALL WOMEN’S HEALTHCARE, INC.

ALL WOMEN’S HEALTHCARE OF DADE, INC.

ALL WOMEN’S HEALTHCARE OF SAWGRASS, INC.

ALL WOMEN’S HEALTHCARE OF WEST BROWARD, INC.

ALL WOMEN’S HEALTHCARE SERVICES, INC.

DISCOVERY CLINICAL RESEARCH, INC.

FM HEALTHCARE SERVICES, INC.

FMO HEALTHCARE HOLDINGS, INC.

FO INVESTMENTS, INC.

FO INVESTMENTS II, INC.

FO INVESTMENTS III, INC.

GLOBAL SURGICAL PARTNERS, INC.

SHERIDAN RADIOLOGY MANAGEMENT SERVICES, INC.

SHERIDAN RADIOLOGY SERVICES, INC.

By:   /s/ Claire M. Gulmi
        Name:   Claire M. Gulmi
        Title:   Vice President and Treasurer

 

[Signature Page to Second Supplemental Indenture]


AMSURG GUARANTORS (cont’d):

ANESTHESIOLOGISTS OF GREATER ORLANDO, INC.

ANESTHESIOLOGY ASSOCIATES OF TALLAHASSEE, INC.

BETHESDA ANESTHESIA ASSOCIATES, INC.

BOCA ANESTHESIA SERVICE, INC.

DRS. ELLIS, ROJAS, ROSS & DEBS, INC.

FLAMINGO ANESTHESIA ASSOCIATES, INC.

GREATER FLORIDA ANESTHESIOLOGISTS, LLC

GYNECOLOGIC ONCOLOGY ASSOCIATES, INC.

JACKSONVILLE BEACHES ANESTHESIA ASSOCIATES, INC.

JUPITER ANESTHESIA ASSOCIATES, L.L.C.

JUPITER HEALTHCARE, LLC

NEW GENERATIONS BABEE BAG, INC.

NORTH FLORIDA PERINATAL ASSOCIATES, INC.

PARITY HEALTHCARE, INC.

SHERIDAN ANESTHESIA SERVICES OF ALABAMA, INC.

SHERIDAN ANESTHESIA SERVICES OF LOUISIANA, INC.

SHERIDAN ANESTHESIA SERVICES OF VIRGINIA, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF ARIZONA, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF LOUISIANA, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF NEW MEXICO, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF VIRGINIA, INC.

SHERIDAN CLINICAL RESEARCH, INC.

SHERIDAN EMERGENCY PHYSICIAN SERVICES, INC.

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF MISSOURI, INC.

By:   /s/ Claire M. Gulmi
        Name:   Claire M. Gulmi
        Title:   Chief Executive Officer

 

[Signature Page to Second Supplemental Indenture]


AMSURG GUARANTORS (cont’d):

BAY AREA ANESTHESIA, L.L.C.

COASTAL ANESTHESIA STAFFING, LLC

COASTAL ANESTHESIOLOGY CONSULTANTS, LLC

MEDICAL INFORMATION MANAGEMENT SOLUTIONS, LLC

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF OHIO, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF KENTUCKY, INC.

SHERIDAN CHILDREN’S SERVICES OF ALABAMA, INC.

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF NORTH MISSOURI, INC.

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH FLORIDA, INC.

SHERIDAN HEALTHCARE, INC.

SHERIDAN HEALTHCARE OF LOUISIANA, INC.

SHERIDAN HEALTHCARE OF MISSOURI, INC.

SHERIDAN HEALTHCARE OF VERMONT, INC.

SHERIDAN HEALTHCARE OF VIRGINIA, INC.

SHERIDAN HEALTHCARE OF WEST VIRGINIA, INC.

SHERIDAN HEALTHCORP, INC.

SHERIDAN HEALTHCORP OF CALIFORNIA, INC.

SHERIDAN HEALTHY HEARING SERVICES, INC.

SHERIDAN HOLDINGS, INC.

SHERIDAN ROP SERVICES OF VIRGINIA, INC.

SHERIDAN INVESTCO, LLC

SOUTHEAST PERINATAL ASSOCIATES, INC. SUNBEAM ASSET, LLC

SUNBEAM INTERMEDIATE HOLDINGS, INC.

SUNBEAM PRIMARY HOLDINGS, INC.

TENNESSEE VALLEY NEONATOLOGY, INC.

TIVA HEALTHCARE, INC.

By:   /s/ Claire M. Gulmi
        Name:   Claire M. Gulmi
        Title:   Chief Executive Officer

 

[Signature Page to Second Supplemental Indenture]


AMSURG GUARANTORS (cont’d):

CHANDLER EMERGENCY MEDICAL GROUP, L.L.C. D/B/A PREMIER EMERGENCY MEDICAL SPECIALISTS

  By:   /s/ Claire M. Gulmi
          Name:   Claire M. Gulmi
          Title:   Manager
PARTNERS IN MEDICAL BILLING, INC.
  By:   /s/ Jillian Marcus
          Name:   Jillian Marcus
          Title:   President

SHERIDAN ROP SERVICES OF FLORIDA, INC.

SENTINEL HEALTHCARE SERVICES, LLC
  By:   /s/ Jillian Marcus
          Name:   Jillian Marcus
          Title:   Vice President

ALLEGIANTMD, INC.

ARIZONA PERINATAL CARE CENTERS, LLC

BROAD MIDWEST ANESTHESIA, LLC

DOCTORS BILLING SERVICE, INC.

MEDI-BILL OF NORTH FLORIDA, INC.

NORTH FLORIDA ANESTHESIA CONSULTANTS, INC.

SHERIDAN CADR SOLUTIONS, INC.

SHERIDAN HOSPITALIST SERVICES OF FLORIDA, INC.

SHERIDAN LEADERSHIP ACADEMY, INC.

SHERIDAN SCIENTIFIC INTELLIGENCE, INC.

ST. LUCIE ANESTHESIA ASSOCIATES, LLC

VALLEY CLINICAL RESEARCH, INC.

  By:   /s/ Jillian Marcus
          Name:   Jillian Marcus
          Title:   Vice President and Secretary

 

[Signature Page to Second Supplemental Indenture]


AMSURG GUARANTORS (cont’d):
PHYSICIAN OFFICE PARTNERS, INC.
  By:   /s/ Robert Davey
          Name:   Robert Davey
          Title:   President

 

NAC PROPERTIES, LLC

VALLEY ANESTHESIOLOGY CONSULTANTS, INC.

  By:   /s/ Robert J. Coward
          Name:   Robert J. Coward
          Title:   President

 

[Signature Page to Supplemental Indenture]


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

ENVISION HEALTHCARE CORPORATION
By:   /s/ Claire M. Gulmi
  Name:   Claire M. Gulmi
  Title:   Executive Vice President and Chief Financial Officer

 

[Signature Page to Supplemental Indenture]


WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Trustee

By:   Joseph P. O’Donnell
  Authorized Officer

 

[Signature Page to Supplemental Indenture]


SCHEDULE A

 

    

New Subsidiary Guarantors

  

Jurisdiction of Organization

1.    All Women’s Healthcare Holdings, Inc.    Delaware
2.    All Women’s Healthcare of Dade, Inc.    Florida
3.    All Women’s Healthcare of Sawgrass, Inc.    Florida
4.    All Women’s Healthcare of West Broward, Inc.    Florida
5.    All Women’s Healthcare Services, Inc.    Florida
6.    All Women’s Healthcare, Inc.    Florida
7.    AllegiantMD, Inc.    Florida
8.    AmSurg Abilene Eye, Inc.    Tennessee
9.    AmSurg Abilene, Inc.    Tennessee
10.    AmSurg Altamonte Springs FL, Inc.    Tennessee
11.    AmSurg Anesthesia Management Services, LLC    Tennessee
12.    AmSurg Arcadia CA, Inc.    Tennessee
13.    AmSurg Burbank, Inc.    Tennessee
14.    AmSurg Colton CA, Inc.    Tennessee
15.    AmSurg Crystal River, Inc.    Tennessee
16.    AmSurg EC Beaumont, Inc.    Tennessee
17.    AmSurg EC Santa Fe, Inc.    Tennessee
18.    AmSurg EC St. Thomas, Inc.    Tennessee
19.    AmSurg EC Topeka, Inc.    Tennessee
20.    AmSurg EC Washington, Inc.    Tennessee
21.    AmSurg El Paso, Inc.    Tennessee
22.    AmSurg Escondido CA, Inc.    Tennessee
23.    AmSurg Finance, Inc.    Tennessee
24.    AmSurg Fresno Endoscopy, Inc.    Tennessee
25.    AmSurg Glendora CA, Inc.    Tennessee
26.    AmSurg Hillmont, Inc.    Tennessee
27.    AmSurg Holdings, Inc.    Delaware
28.    AmSurg Inglewood, Inc.    Tennessee
29.    AmSurg KEC, Inc.    Tennessee
30.    AmSurg Kissimmee FL, Inc.    Tennessee
31.    AmSurg La Jolla, Inc.    Tennessee
32.    AmSurg Lancaster PA, LLC    Tennessee
33.    AmSurg Main Line PA, LLC    Tennessee
34.    AmSurg Maryville, Inc.    Tennessee
35.    AmSurg Melbourne, Inc.    Tennessee
36.    AmSurg Northwest Florida, Inc.    Tennessee
37.    AmSurg Oakland CA, Inc.    Tennessee
38.    AmSurg Ocala, Inc.    Tennessee
39.    AmSurg Palmetto, Inc.    Tennessee
40.    AmSurg Pottsville PA, LLC    Tennessee
41.    AmSurg San Antonio TX, Inc.    Tennessee


42.    AmSurg San Luis Obispo CA, Inc.    Tennessee
43.    AmSurg Scranton PA, Inc.    Tennessee
44.    AmSurg Suncoast, Inc.    Tennessee
45.    AmSurg Temecula CA, Inc.    Tennessee
46.    AmSurg Temecula II Inc.    Tennessee
47.    AmSurg Torrance, Inc.    Tennessee
48.    Anesthesiologists of Greater Orlando, Inc.    Florida
49.    Anesthesiology Associates of Tallahassee, Inc.    Florida
50.    Arizona Perinatal Care Centers, LLC    Arizona
51.    ASDH I, LLC    Tennessee
52.    Austin NSC, LLC    Tennessee
53.    Austin NSC, LP    Texas
54.    Bay Area Anesthesia, L.L.C.    Florida
55.    Bethesda Anesthesia Associates, Inc.    Florida
56.    Boca Anesthesia Service, Inc.    Florida
57.    Broad Midwest Anesthesia, LLC    Missouri
58.    Chandler Emergency Medical Group, L.L.C. d/b/a Premier Emergency Medical Specialists    Arizona
59.    Coastal Anesthesia Staffing, LLC    Florida
60.    Coastal Anesthesiology Consultants, LLC    Florida
61.    Coral Springs NSC, LLC    Tennessee
62.    Davis NSC, LLC    Tennessee
63.    Discovery Clinical Research, Inc.    Florida
64.    Doctors Billing Service, Inc.    California
65.    Drs. Ellis, Rojas, Ross & Debs, Inc.    Florida
66.    Flamingo Anesthesia Associates, Inc.    Florida
67.    FM Healthcare Services, Inc.    Florida
68.    FMO Healthcare Holdings, Inc.    Delaware
69.    FO Investments II, Inc.    Florida
70.    FO Investments III, Inc.    Florida
71.    FO Investments, Inc.    Florida
72.    Fullerton NSC, LLC    Tennessee
73.    Global Surgical Partners, Inc.    Florida
74.    Greater Florida Anesthesiologists, LLC    Florida
75.    Gynecologic Oncology Associates, Inc.    Florida
76.    Jacksonville Beaches Anesthesia Associates, Inc.    Florida
77.    Jupiter Anesthesia Associates, L.L.C.    Florida
78.    Jupiter Healthcare, LLC    Florida
79.    Kenwood NSC, LLC    Tennessee
80.    Long Beach NSC, LLC    Tennessee
81.    Medi-Bill of North Florida, Inc.    Florida
82.    Medical Information Management Solutions, LLC    Arizona
83.    NAC Properties, LLC    Georgia
84.    New Generations Babee Bag, Inc.    Florida
85.    North Florida Anesthesia Consultants, Inc.    Florida


86.    North Florida Perinatal Associates, Inc.    Florida
87.    NSC RBO East, LLC    Tennessee
88.    NSC West Palm, LLC    Tennessee
89.    Parity Healthcare, Inc.    Florida
90.    Partners in Medical Billing, Inc.    Florida
91.    Physician Office Partners, Inc.    Kansas
92.    San Antonio NSC, LLC    Tennessee
93.    Sentinel Healthcare Services, LLC    Georgia
94.    Sheridan Anesthesia Services of Alabama, Inc.    Florida
95.    Sheridan Anesthesia Services of Louisiana, Inc.    Florida
96.    Sheridan Anesthesia Services of Virginia, Inc.    Florida
97.    Sheridan CADR Solutions, Inc.    Florida
98.    Sheridan Children’s Healthcare Services of Virginia, Inc.    Florida
99.    Sheridan Children’s Healthcare Services of Arizona, Inc.    Florida
100.    Sheridan Children’s Healthcare Services of Kentucky, Inc.    Florida
101.    Sheridan Children’s Healthcare Services of Louisiana, Inc.    Florida
102.    Sheridan Children’s Healthcare Services of New Mexico, Inc.    Florida
103.    Sheridan Children’s Healthcare Services of Ohio, Inc.    Florida
104.    Sheridan Children’s Healthcare Services, Inc.    Florida
105.    Sheridan Children’s Services of Alabama, Inc.    Florida
106.    Sheridan Clinical Research, Inc.    Florida
107.    Sheridan Emergency Physician Services of Missouri, Inc.    Florida
108.    Sheridan Emergency Physician Services of North Missouri, Inc.    Florida
109.    Sheridan Emergency Physician Services of South Florida, Inc.    Florida
110.    Sheridan Emergency Physician Services, Inc.    Florida
111.    Sheridan Healthcare of Louisiana, Inc.    Florida
112.    Sheridan Healthcare of Missouri, Inc.    Florida
113.    Sheridan Healthcare of Vermont, Inc.    Florida
114.    Sheridan Healthcare of Virginia, Inc.    Florida
115.    Sheridan Healthcare of West Virginia, Inc.    West Virginia
116.    Sheridan Healthcare, Inc.    Delaware
117.    Sheridan Healthcorp of California, Inc.    California
118.    Sheridan Healthcorp, Inc.    Florida
119.    Sheridan Healthy Hearing Services, Inc.    Florida
120.    Sheridan Holdings, Inc.    Delaware
121.    Sheridan Hospitalist Services of Florida, Inc.    Florida
122.    Sheridan InvestCo, LLC    Delaware
123.    Sheridan Leadership Academy, Inc.    Florida
124.    Sheridan Radiology Management Services, Inc.    Delaware
125.    Sheridan Radiology Services, Inc.    Delaware
126.    Sheridan ROP Services of Florida, Inc.    Florida
127.    Sheridan ROP Services of Virginia, Inc.    Florida
128.    Sheridan Scientific Intelligence, Inc.    Florida
129.    SHI II, LLC    Tennessee
130.    Southeast Perinatal Associates, Inc.    Florida


131.    St. Lucie Anesthesia Associates, LLC    Florida
132.    Sunbeam Asset LLC    Delaware
133.    Tampa Bay NSC, LLC    Tennessee
134.    Tennessee Valley Neonatology, Inc.    Florida
135.    Tiva Healthcare, Inc.    Florida
136.    Torrance NSC, LLC    Tennessee
137.    Towson NSC, LLC    Tennessee
138.    Twin Falls NSC, LLC    Tennessee
139.    Valley Anesthesiology Consultants, Inc.    Arizona
140.    Valley Clinical Research, Inc.    Florida
141.    Weston NSC, LLC    Tennessee
142.    Wilton NSC, LLC    Connecticut
143.    A1 Leasing, Inc.    Florida
144.    Abbott Ambulance, Inc.    Missouri
145.    Accent Home Health Care Inc.    Indiana
146.    Access 2 Care, LLC    Missouri
147.    Acute Management, LLC    Texas
148.    Adam Transportation Service, Inc.    New York
149.    Affilion, Inc.    Delaware
150.    Agape Health Care Agency, LLC.    Ohio
151.    Air Ambulance Specialists, Inc.    Colorado
152.    Alpha Physician Resources, L.L.C. (a/k/a Alpha Group I, LLC)    New Jersey
153.    Ambulance Acquisition, Inc.    Delaware
154.    American Emergency Physicians Management, Inc.    California
155.    American Investment Enterprises, Inc.    Nevada
156.    American Medical Pathways, Inc.    Delaware
157.    American Medical Response Ambulance Service, Inc.    Delaware
158.    American Medical Response Delaware Valley, LLC    Delaware
159.    American Medical Response Holdings, Inc.    Delaware
160.    American Medical Response HPPP, LLC    Delaware
161.    American Medical Response Management, Inc.    Delaware
162.    American Medical Response Mid-Atlantic, Inc.    Pennsylvania
163.    American Medical Response Northwest, Inc.    Oregon
164.    American Medical Response of Colorado, Inc.    Delaware
165.    American Medical Response of Connecticut, Incorporated    Connecticut
166.    American Medical Response of Georgia, Inc.    Delaware
167.    American Medical Response of Illinois, Inc.    Delaware
168.    American Medical Response of Inland Empire    California
169.    American Medical Response of Maricopa, LLC    Delaware
170.    American Medical Response of Massachusetts, Inc.    Massachusetts
171.    American Medical Response of New York, LLC    New York
172.    American Medical Response of North Carolina, Inc.    Delaware
173.    American Medical Response of Oklahoma, Inc.    Delaware
174.    American Medical Response of Pima, LLC    Delaware
175.    American Medical Response of South Carolina, Inc.    Delaware
176.    American Medical Response of Southern California    California
177.    American Medical Response of Tennessee, Inc.    Delaware
178.    American Medical Response of Texas, Inc.    Delaware


179.    American Medical Response West    California
180.    American Medical Response, Inc.    Delaware
181.    AMR Bay State, LLC    Delaware
182.    AMR Brockton, L.L.C.    Delaware
183.    AMR HoldCo, Inc. (f/k/a EMSC Management, Inc.)    Delaware
184.    AMR of Central Texas I, LLC    Texas
185.    AMR of Central Texas II, LLC    Texas
186.    Apex Acquisition LLC    Delaware
187.    APH Laboratory Services, Inc.    Texas
188.    Arizona EMS Holdings, Inc.    Arizona
189.    Associated Ambulance Service Inc.    New York
190.    Atlantic Ambulance Services Acquisition, Inc.    Delaware
191.    Atlantic/Key West Ambulance, Inc.    Delaware
192.    Atlantic/Palm Beach Ambulance, Inc.    Delaware
193.    Beacon Transportation, Inc.    New York
194.    BestPractices, Inc.    Virginia
195.    Blythe Ambulance Service    California
196.    Bowers Companies, Inc.    California
197.    Bravo Reimbursement Specialist, L.L.C. (a/k/a Bravo Associates, L.L.C.)    New Jersey
198.    Broward Ambulance, Inc.    Delaware
199.    Care Connection of Cincinnati LLC    Ohio
200.    Clinical Partners Management Company, LLC    Texas
201.    CMORx, LLC    Texas
202.    Community Auto and Fleet Services L.L.C.    Delaware
203.    Community EMS, Inc.    Massachusetts
204.    ComTrans Ambulance Service, Inc.    Arizona
205.    ComTrans, Inc.    Delaware
206.    Corning Ambulance Service Inc.    New York
207.    Desert Valley Medical Transport, Inc.    California
208.    Donlock, Ltd.    Pennsylvania
209.    E.M.S. Ventures, Inc.    Georgia
210.    Eastern Ambulance Service, Inc.    Nebraska
211.    Eastern Paramedics, Inc.    Delaware
212.    ED Solutions, LLC    New Jersey
213.    EDIMS, L.L.C.    New Jersey
214.    EHR Management Co.    Delaware
215.    EmCare Anesthesia Providers, Inc.    Delaware
216.    EmCare HoldCo, Inc.    Delaware
217.    EmCare Holdings Inc.    Delaware
218.    EmCare of California, Inc.    California
219.    EmCare Physician Providers, Inc.    Missouri
220.    EmCare Physician Services, Inc.    Delaware
221.    EmCare, Inc.    Delaware
222.   

Emergency Medical Services LP Corporation

(f/k/a Emergency Medical Services L.P.)

   Delaware
223.    Emergency Medical Transport, Inc.    Arizona
224.    Emergency Medical Transportation, Inc.    Massachusetts
225.    Emergency Medicine Education Systems, Inc.    Texas


226.    EMS Management LLC    Delaware
227.    EMS Offshore Medical Services, LLC    Delaware
228.    EMS Ventures of South Carolina, Inc.    South Carolina
229.    EMSC ServicesCo, LLC (f/k/a EMSC TransactionCo, LLC)    Delaware
230.    EverRad, LLC    Florida
231.    Evolution Health LLC    Delaware
232.    Evolution Mobile Imaging, LLC    Delaware
233.    Five Counties Ambulance Service, Inc.    New York
234.    Florida Emergency Partners, Inc.    Texas
235.    Fountain Ambulance Service, Inc.    Alabama
236.    Gem City Home Care, LLC.    Ohio
237.    Gila Holdco LLC    Delaware
238.    Gold Coast Ambulance Service    California
239.    Gold Cross Ambulance Service of Pa., Inc.    Ohio
240.    Gold Cross Ambulance Services, Inc.    Delaware
241.    Grace Behavioral Health, L.L.C.    Delaware
242.    Greater Pinellas Transportation Management Services, Inc.    Florida
243.    Guardian Health Care, Inc.    Texas
244.    Guardian Healthcare Group, Inc.    Delaware
245.    Guardian Healthcare Holdings, Inc.    Delaware
246.    Guardian Ohio Newco, LLC    Ohio
247.    Hank’s Acquisition Corp.    Delaware
248.    Hawkeye Holdco LLC    Delaware
249.    Health Priority Home Care, Inc.    Texas
250.    Healthcare Administrative Services, Inc.    Delaware
251.    Hemet Valley Ambulance Service, Inc.    California
252.    Herren Enterprises, Inc.    California
253.    Holiday Acquisition Company, Inc.    Colorado
254.    International Life Support, Inc.    Hawaii
255.    JLM Healthcare, Inc.    Texas
256.    KMAC, Inc.    Texas
257.    Kutz Ambulance Service, Inc.    Wisconsin
258.    LaSalle Ambulance Inc.    New York
259.    Life Line Ambulance Service, Inc.    Arizona
260.    LifeCare Ambulance Service, Inc.    Illinois
261.    LifeFleet Southeast, Inc.    Florida
262.    Mainstay Solutions, LLC    Arizona
263.    Marlboro Hudson Ambulance & Wheelchair Service, Inc.    Massachusetts
264.    MedAssociates, LLC    Texas
265.    Medevac Medical Response, Inc.    Missouri
266.    Medevac MidAmerica, Inc.    Missouri
267.    Medic One Ambulance Services, Inc.    Delaware
268.    Medic One of Cobb, Inc.    Georgia
269.    Medical Emergency Devices and Services (MEDS), Inc.    Arizona
270.    Medi-Car Ambulance Service, Inc.    Florida
271.    Medi-Car Systems, Inc.    Florida
272.    Medics Ambulance Service (Dade), Inc.    Florida
273.    Medics Ambulance Service, Inc.    Florida
274.    Medics Ambulance, Inc.    Florida


275.    Medics Emergency Services of Palm Beach County, Inc.    Florida
276.    Medics Subscription Services, Inc.    Florida
277.    Medics Transport Services, Inc.    Florida
278.    MedicWest Ambulance, Inc.    Nevada
279.    MedicWest Holdings, Inc.    Delaware
280.    MedLife Emergency Medical Service, Inc.    Alabama
281.    MedStat EMS, Inc.    Mississippi
282.    Mercury Ambulance Service, Inc.    Kentucky
283.    Mercy Ambulance of Evansville, Inc.    Indiana
284.    Mercy Life Care    California
285.    Mercy, Inc.    Nevada
286.    Metro Ambulance Service (Rural), Inc.    Delaware
287.    Metro Ambulance Service, Inc.    Delaware
288.    Metro Ambulance Services, Inc.    Georgia
289.    Metro Care Corp.    Ohio
290.    MetroCare Services – Abilene, L.P.    Texas
291.    Metropolitan Ambulance Service    California
292.    Midwest Ambulance Management Company    Delaware
293.    Mission Care of Illinois, LLC    Illinois
294.    Mission Care of Missouri, LLC    Missouri
295.    Mission Care Services, LLC    Missouri
296.    Mobile Medic Ambulance Service, Inc.    Delaware
297.    MSO Newco, LLC    Delaware
298.    National Ambulance & Oxygen Service, Inc.    New York
299.    Nevada Red Rock Ambulance, Inc.    Delaware
300.    Nevada Red Rock Holdings, Inc.    Delaware
301.    North Miss. Ambulance Service, Inc.    Mississippi
302.    Northwood Anesthesia Associates, L.L.C.    Florida
303.    Oherbst, Inc.    Texas
304.    Pacific Ambulance, Inc.    California
305.    Paramed, Inc.    Michigan
306.    Park Ambulance Service Inc.    New York
307.    Patient Advocacy Group, LLC    Delaware
308.    Phoenix Physicians, LLC    Florida
309.    Physician Account Management, Inc.    Florida
310.    Physicians & Surgeons Ambulance Service, Inc.    Ohio
311.    Pinnacle Consultants Mid-Atlantic, L.L.C.    Delaware
312.    Professional Medical Transport, Inc.    Arizona
313.    Proven Healthcare Solutions of New Jersey, LLC (a/k/a Proven Healthcare Solutions)    New Jersey
314.    ProvidaCare, L.L.C.    Texas
315.    Provider Account Management, Inc.    Delaware
316.    Puckett Ambulance Service, Inc.    Georgia
317.    QRx Medical Management, LLC    Delaware
318.    R/M Arizona Holdings, Inc.    Arizona
319.    R/M Management Co., Inc.    Arizona
320.    R/M of Tennessee G.P., Inc.    Delaware
321.    R/M of Tennessee L.P., Inc.    Delaware
322.    Radiology Staffing Solutions, Inc.    Delaware


323.    Radstaffing Management Solutions, Inc.    Delaware
324.    Randle Eastern Ambulance Service, Inc.    Florida
325.    Regional Emergency Services, L.P.    Delaware
326.    Reimbursement Technologies, Inc.    Pennsylvania
327.    River Medical Incorporated    Arizona
328.    RMC Corporate Center, L.L.C.    Arizona
329.    Rose Radiology, LLC    Texas
330.    Rural/Metro (Delaware) Inc.    Delaware
331.    Rural/Metro Corporation    Delaware
332.    Rural/Metro Corporation    Arizona
333.    Rural/Metro Corporation of Florida    Florida
334.    Rural/Metro Corporation of Tennessee    Tennessee
335.    Rural/Metro Fire Dept., Inc.    Arizona
336.    Rural/Metro Mid-South, L.P.    Delaware
337.    Rural/Metro of Brewerton, Inc.    New York
338.    Rural/Metro of California, Inc.    Delaware
339.    Rural/Metro of Central Alabama, Inc.    Delaware
340.    Rural/Metro of Central Colorado, Inc.    Delaware
341.    Rural/Metro of Central Ohio, Inc.    Delaware
342.    Rural/Metro of Greater Seattle, Inc.    Washington
343.    Rural/Metro of Indiana, L.P.    Delaware
344.    Rural/Metro of New York, Inc.    Delaware
345.    Rural/Metro of Northern California, Inc.    Delaware
346.    Rural/Metro of Northern Ohio, Inc.    Delaware
347.    Rural/Metro of Ohio, Inc.    Delaware
348.    Rural/Metro of Oregon, Inc.    Delaware
349.    Rural/Metro of Rochester, Inc.    New York
350.    Rural/Metro of San Diego, Inc.    California
351.    Rural/Metro of Southern California, Inc.    Delaware
352.    Rural/Metro of Southern Ohio, Inc.    Ohio
353.    Rural/Metro of Tennessee, L.P.    Delaware
354.    Rural/Metro Operating Company, LLC    Delaware
355.    S. Fisher & S. Thomas Inc.    Texas
356.    San Diego Medical Services Enterprise, LLC    California
357.    Seawall Acquisition, LLC    Delaware
358.    Seminole County Ambulance, Inc.    Delaware
359.    Sioux Falls Ambulance, Inc.    South Dakota
360.    Southwest Ambulance and Rescue of Arizona, Inc.    Arizona
361.    Southwest Ambulance of Casa Grande, Inc.    Arizona
362.    Southwest Ambulance of New Mexico, Inc.    New Mexico
363.    Southwest Ambulance of Southeastern Arizona, Inc.    Arizona
364.    Southwest Ambulance of Tucson, Inc.    Arizona
365.    Southwest General Services, Inc.    Arizona
366.    Spotlight Holdco LLC    Delaware
367.    Springs Ambulance Service, Inc.    California
368.    SSAG, LLC    Delaware
369.    STAT Healthcare, Inc.    Delaware
370.    Streamlined Medical Solutions LLC    Texas
371.    Sun Devil Acquisition LLC    Delaware


372.    Sunrise Handicap Transport Corp.    New York
373.    SW General, Inc.    Arizona
374.    T.M.S. Management Group, Inc.    Florida
375.    TEK Ambulance, Inc.    Illinois
376.    Templeton Readings, LLC    Maryland
377.    The Aid Ambulance Company, Inc.    Delaware
378.    The Aid Company, Inc.    Indiana
379.    Tidewater Ambulance Service, Inc.    Virginia
380.    TKG, Inc.    Oklahoma
381.    Towns Ambulance Service, Inc.    New York
382.    Transportation Management Services of Brevard, Inc.    Florida
383.    Troup County Emergency Medical Services, Inc.    Georgia
384.    V.I.P. Professional Services, Inc.    California
385.    Valley Fire Service, Inc.    Delaware
386.    Velita Smith Home Health, Inc.    Texas
387.    Vista Staffing Solutions, Inc.    Delaware
388.    Vital Enterprises, Inc.    Massachusetts
389.    W & W Leasing Company, Inc.    Arizona
390.    Whitaker Physicians Services, L.L.C.    Texas
391.    WP Rocket Holdings Inc.    Delaware

Exhibit 4.10

Supplemental Indenture in Respect of Subsidiary Guarantees

November 30, 2016

SIXTH SUPPLEMENTAL INDENTURE, dated as of November 30, 2016 (this “ Supplemental Indenture ”), among the Subsidiaries listed on Schedule A hereto (the “ New Subsidiary Guarantors ” and each, a “ New Subsidiary Guarantor ”), Envision Healthcare Corporation (the “ Company ”) and Wilmington Trust, National Association, as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, the Company, each existing Subsidiary Guarantor under the Indenture referred to below (the “ Existing Guarantors ”) and the Trustee have heretofore become parties to an Indenture, dated as of June 18, 2014 (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), providing for the issuance of Notes in series;

WHEREAS, Section 1308 of the Indenture provides that the Company is required to cause the New Subsidiary Guarantors to execute and deliver to the Trustee a supplemental indenture pursuant to which the New Subsidiary Guarantors shall guarantee the Company’s Subsidiary Guaranteed Obligations under the Notes pursuant to a Subsidiary Guarantee on the terms and conditions set forth herein and in Article XIII of the Indenture;

WHEREAS, each New Subsidiary Guarantor desires to enter into such supplemental indenture for good and valuable consideration, including substantial economic benefit in that the financial performance and condition of such New Subsidiary Guarantor is dependent on the financial performance and condition of the Company, the obligations hereunder of which such New Subsidiary Guarantor has guaranteed, and on such New Subsidiary Guarantor’s access to working capital through the Company’s access to revolving credit borrowings under the Senior ABL Facility; and

WHEREAS, pursuant to Section 901 of the Indenture, the parties hereto are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Subsidiary Guarantors, the Company and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows:

1. Defined Terms . As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.


2. Agreement to Guarantee . Each New Subsidiary Guarantor hereby agrees, jointly and severally with the other New Subsidiary Guarantors and the Existing Guarantors and fully and unconditionally, to guarantee the Subsidiary Guaranteed Obligations under the Indenture and the Notes on the terms and subject to the conditions set forth in Article XIII of the Indenture and to be bound by (and shall be entitled to the benefits of) all other applicable provisions of the Indenture as a Subsidiary Guarantor.

3. Termination, Release and Discharge . Each New Subsidiary Guarantor’s Subsidiary Guarantee shall terminate and be of no further force or effect, and each New Subsidiary Guarantor shall be released and discharged from all obligations in respect of such Subsidiary Guarantee, as and when provided in Section 1303 of the Indenture.

4. Parties . Nothing in this Supplemental Indenture is intended or shall be construed to give any Person, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of any New Subsidiary Guarantor’s Subsidiary Guarantee or any provision contained herein or in Article XIII of the Indenture.

5. Governing Law . THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

6. Ratification of Indenture; Supplemental Indentures Part of Indenture . Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

7. Counterparts . The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

8. Headings . The section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

2


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

AMERICAN MEDICAL RESPONSE OF NEW YORK, LLC

  By: American Medical Response, Inc., as Sole Member
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMR OF CENTRAL TEXAS I, LLC

AMR OF CENTRAL TEXAS II, LLC

COMMUNITY AUTO AND FLEET SERVICES L.L.C.

COMTRANS, INC.

GILA HOLDCO LLC

GRACE BEHAVIORAL HEALTH, L.L.C.

SSAG, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

METROCARE SERVICES – ABILENE, L.P.

  By:   AMR of Central Texas II, LLC, as General Partner
  By:   American Medical Response, Inc., as Sole Member
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

[Signature Page to Sixth Supplemental Indenture]


PATIENT ADVOCACY GROUP, LLC
  By:   AMR HoldCo, Inc., as Sole Member
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Sixth Supplemental Indenture]


ENVISION HEALTHCARE CORPORATION
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Sixth Supplemental Indenture]


WILMINGTON TRUST, NATIONAL ASSOCIATION,
as Trustee
By:  

/s/ Joseph P. O’Donnell

  Authorized Officer

 

[Signature Page to Sixth Supplemental Indenture]


SCHEDULE A

 

New Subsidiary Guarantors

  

Jurisdiction of Organization

American Medical Response of New York, LLC    New York
AMR of Central Texas I, LLC    Delaware
AMR of Central Texas II, LLC    Delaware
Community Auto and Fleet Services L.L.C.    Delaware
ComTrans, Inc.    Delaware
Gila Holdco LLC    Delaware
Grace Behavioral Health, L.L.C.    Delaware
MetroCare Services – Abilene, L.P.    Texas
Patient Advocacy Group, LLC    Delaware
SSAG, LLC    Delaware

Exhibit 4.11

EXECUTION VERSION

Supplemental Indenture Joining Successor Company

December 1, 2016

SEVENTH SUPPLEMENTAL INDENTURE, dated as of December 1, 2016 (this “ Supplemental Indenture ”), among Envision Healthcare Intermediate Corporation, a Delaware corporation (together with its successors and assigns, the “ Company ”), each of the existing Subsidiary Guarantors under the Indenture (as defined below) party hereto (each an “ Existing Guarantor ”) and Wilmington Trust, National Association, as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, Envision Healthcare Corporation (the “ Original Issuer ”), the Existing Guarantors and the Trustee have heretofore become parties to an Indenture, dated as of June 18, 2014 (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), providing for the issuance of Notes in series;

WHEREAS, pursuant to that certain Agreement and Plan of Merger among Envision Healthcare Holdings, Inc., AmSurg Corp., a Tennessee corporation, and New Amethyst Corp., a Delaware corporation and a wholly owned subsidiary of AmSurg Corp., the Original Issuer merged with and into the Company, with the Company as the surviving entity continuing its existence as a corporation under the laws of the State of Delaware;

WHEREAS, Section 502 of the Indenture provides that upon any transaction involving the Original Issuer in accordance with Section 501 in which the Original Issuer is not the Successor Company (as defined in the Indenture), the Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the Original Issuer under the Indenture, and thereafter the Original Issuer shall be relieved of all obligations and covenants under the Indenture; and

WHEREAS, pursuant to Section 901(2) of the Indenture, the parties hereto are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company, the Existing Guarantors and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows:

1. Defined Terms . As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.


2. Assumption of Obligations . The Company hereby expressly assumes all of the obligations of the Original Issuer under the Notes and the Indenture and agrees to pay, perform and discharge when due each and every debt, obligation covenant and agreement incurred, made or to be paid, performed or discharged by the Original Issuer under the Indenture and the Notes. The Company hereby agrees to be bound by all the terms, provisions and conditions of the Indenture and the Notes and agrees that it shall be the Successor Company and shall succeed to, and be substituted for, and may exercise every right and power of, the Original Issuer under the Indenture and the Notes.

3. Agreement to Guarantee . Each Existing Guarantor hereby agrees, jointly and severally with the other Existing Guarantors and fully and unconditionally, to guarantee the Subsidiary Guaranteed Obligations under the Indenture and the Notes on the terms and subject to the conditions set forth in Article XIII of the Indenture and to be bound by (and shall be entitled to the benefits of) all other applicable provisions of the Indenture as a Subsidiary Guarantor.

4. Termination, Release and Discharge . Each Existing Guarantor’s Subsidiary Guarantee shall terminate and be of no further force or effect, and each Existing Guarantor shall be released and discharged from all obligations in respect of such Subsidiary Guarantee, as and when provided in Section 1303 of the Indenture.

5. Parties . Nothing in this Supplemental Indenture is intended or shall be construed to give any Person, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of each Existing Guarantor’s Subsidiary Guarantee or any provision contained herein or in Article XIII of the Indenture.

6. Governing Law . THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

7. Ratification of Indenture; Supplemental Indentures Part of Indenture . Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

8. Counterparts . The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

 

2


9. Headings . The section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

3


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

ENVISION HEALTHCARE INTERMEDIATE CORPORATION
By:   /s/ Craig A. Wilson
  Name:   Craig A. Wilson
  Title:   Senior Vice President and Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS

CLINICAL PARTNERS MANAGEMENT COMPANY, LLC

NORTHWOOD ANESTHESIA ASSOCIATES, L.L.C.

  By:   /s/ William A. Sanger
          Name:   William A. Sanger
          Title:   Manager

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

A1 LEASING, INC.

ABBOTT AMBULANCE, INC.

ACCENT HOME HEALTH CARE INC.

ADAM TRANSPORTATION SERVICE, INC.

AFFILION, INC.

AIR AMBULANCE SPECIALISTS, INC.

AMBULANCE ACQUISITION, INC.

AMERICAN EMERGENCY PHYSICIANS MANAGEMENT, INC.

AMERICAN INVESTMENT ENTERPRISES, INC.

AMERICAN MEDICAL PATHWAYS, INC.

AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC.

AMERICAN MEDICAL RESPONSE HOLDINGS, INC.

AMERICAN MEDICAL RESPONSE MANAGEMENT, INC.

AMERICAN MEDICAL RESPONSE MID-ATLANTIC, INC.

AMERICAN MEDICAL RESPONSE NORTHWEST, INC.

AMERICAN MEDICAL RESPONSE OF COLORADO, INC.

AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INCORPORATED

AMERICAN MEDICAL RESPONSE OF GEORGIA, INC.

AMERICAN MEDICAL RESPONSE OF ILLINOIS, INC.

AMERICAN MEDICAL RESPONSE OF INLAND EMPIRE

AMERICAN MEDICAL RESPONSE OF MASSACHUSETTS, INC.

AMERICAN MEDICAL RESPONSE OF NORTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF OKLAHOMA, INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

AMERICAN MEDICAL RESPONSE OF SOUTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF SOUTHERN CALIFORNIA

AMERICAN MEDICAL RESPONSE OF TENNESSEE, INC.

AMERICAN MEDICAL RESPONSE OF TEXAS, INC.

AMERICAN MEDICAL RESPONSE WEST

AMERICAN MEDICAL RESPONSE, INC.

AMR BAY STATE, LLC

AMR HOLDCO, INC.

AMR OF CENTRAL TEXAS I, LLC

AMR OF CENTRAL TEXAS II, LLC

APH LABORATORY SERVICES, INC.

ARIZONA EMS HOLDINGS, INC.

ASSOCIATED AMBULANCE SERVICE, INC.

ATLANTIC AMBULANCE SERVICES ACQUISITION, INC.

ATLANTIC/KEY WEST AMBULANCE, INC.

ATLANTIC/PALM BEACH AMBULANCE, INC.

BEACON TRANSPORTATION, INC.

BESTPRACTICES, INC.

BLYTHE AMBULANCE SERVICE

BOWERS COMPANIES, INC.

BROWARD AMBULANCE, INC.

COMMUNITY AUTO AND FLEET SERVICES L.L.C.

COMMUNITY EMS, INC.

COMTRANS AMBULANCE SERVICE, INC.

COMTRANS, INC.

CORNING AMBULANCE SERVICE INC.

DESERT VALLEY MEDICAL TRANSPORT, INC.

DONLOCK, LTD.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

E.M.S. VENTURES, INC.

EASTERN AMBULANCE SERVICE, INC.

EASTERN PARAMEDICS, INC.

EHR MANAGEMENT CO.

EMCARE ANESTHESIA PROVIDERS, INC.

EMCARE HOLDCO, INC.

EMCARE HOLDINGS INC.

EMCARE OF CALIFORNIA, INC.

EMCARE PHYSICIAN PROVIDERS, INC.

EMCARE PHYSICIAN SERVICES, INC.

EMCARE, INC.

EMERGENCY MEDICAL SERVICES LP CORPORATION

EMERGENCY MEDICAL TRANSPORT, INC.

EMERGENCY MEDICAL TRANSPORTATION, INC.

EMERGENCY MEDICINE EDUCATION SYSTEMS, INC.

EMS VENTURES OF SOUTH CAROLINA, INC.

FIVE COUNTIES AMBULANCE SERVICE, INC.

FLORIDA EMERGENCY PARTNERS, INC.

FOUNTAIN AMBULANCE SERVICE, INC.

GILA HOLDCO LLC

GOLD COAST AMBULANCE SERVICE

GOLD CROSS AMBULANCE SERVICE OF PA., INC.

GOLD CROSS AMBULANCE SERVICES, INC.

GRACE BEHAVIORAL HEALTH, L.L.C.

GREATER PINELLAS TRANSPORTATION MANAGEMENT SERVICES, INC.

GUARDIAN HEALTH CARE, INC.

GUARDIAN HEALTHCARE GROUP, INC.

GUARDIAN HEALTHCARE HOLDINGS, INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

HANK’S ACQUISITION CORP.

HEALTH PRIORITY HOME CARE, INC.

HEALTHCARE ADMINISTRATIVE SERVICES, INC.

HEMET VALLEY AMBULANCE SERVICE, INC.

HERREN ENTERPRISES, INC.

HOLIDAY ACQUISITION COMPANY, INC.

INTERNATIONAL LIFE SUPPORT, INC.

JLM HEALTHCARE, INC.

KMAC, INC.

KUTZ AMBULANCE SERVICE, INC.

LASALLE AMBULANCE INC.

LIFE LINE AMBULANCE SERVICE, INC.

LIFECARE AMBULANCE SERVICE, INC.

LIFEFLEET SOUTHEAST, INC.

MAINSTAY SOLUTIONS, LLC

MARLBORO HUDSON AMBULANCE & WHEELCHAIR SERVICE, INC.

MEDEVAC MEDICAL RESPONSE, INC.

MEDEVAC MIDAMERICA, INC.

MEDIC ONE AMBULANCE SERVICES, INC.

MEDIC ONE OF COBB, INC.

MEDICAL EMERGENCY DEVICES AND SERVICES (MEDS), INC.

MEDI-CAR AMBULANCE SERVICE, INC.

MEDI-CAR SYSTEMS, INC.

MEDICS AMBULANCE SERVICE (DADE), INC.

MEDICS AMBULANCE SERVICE, INC.

MEDICS AMBULANCE, INC.

MEDICS EMERGENCY SERVICES OF PALM BEACH COUNTY, INC.

MEDICS SUBSCRIPTION SERVICES, INC.

MEDICS TRANSPORT SERVICES, INC.

MEDICWEST AMBULANCE, INC.

MEDICWEST HOLDINGS, INC.

MEDLIFE EMERGENCY MEDICAL SERVICE, INC.

MEDSTAT EMS, INC.

MERCURY AMBULANCE SERVICE, INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

MERCY AMBULANCE OF EVANSVILLE, INC.

MERCY LIFE CARE

MERCY, INC.

METRO AMBULANCE SERVICE (RURAL), INC.

METRO AMBULANCE SERVICE, INC.

METRO AMBULANCE SERVICES, INC.

METRO CARE CORP.

METROPOLITAN AMBULANCE SERVICE

MIDWEST AMBULANCE MANAGEMENT COMPANY

MOBILE MEDIC AMBULANCE SERVICE, INC.

NATIONAL AMBULANCE & OXYGEN SERVICE, INC.

NEVADA RED ROCK AMBULANCE, INC.

NEVADA RED ROCK HOLDINGS, INC.

NORTH MISS. AMBULANCE SERVICE, INC.

OHERBST, INC.

PACIFIC AMBULANCE, INC.

PARAMED, INC.

PARK AMBULANCE SERVICE INC.

PHYSICIAN ACCOUNT MANAGEMENT, INC.

PHYSICIANS & SURGEONS AMBULANCE SERVICE, INC.

PROFESSIONAL MEDICAL TRANSPORT, INC.

PROVIDER ACCOUNT MANAGEMENT, INC.

PUCKETT AMBULANCE SERVICE, INC.

R/M ARIZONA HOLDINGS, INC.

R/M MANAGEMENT CO., INC.

R/M OF TENNESSEE G.P., INC.

R/M OF TENNESSEE L.P., INC.

RADIOLOGY STAFFING SOLUTIONS, INC.

RADSTAFFING MANAGEMENT SOLUTIONS, INC.

RANDLE EASTERN AMBULANCE SERVICE, INC.

REIMBURSEMENT TECHNOLOGIES, INC.

RIVER MEDICAL INCORPORATED

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

RURAL/METRO (DELAWARE), INC.

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION OF FLORIDA

RURAL/METRO CORPORATION OF TENNESSEE

RURAL/METRO FIRE DEPT., INC.

RURAL/METRO OF BREWERTON, INC.

RURAL/METRO OF CALIFORNIA, INC.

RURAL/METRO OF CENTRAL ALABAMA, INC.

RURAL/METRO OF CENTRAL COLORADO, INC.

RURAL/METRO OF CENTRAL OHIO, INC.

RURAL/METRO OF GREATER SEATTLE, INC.

RURAL/METRO OF NEW YORK, INC.

RURAL/METRO OF NORTHERN CALIFORNIA, INC.

RURAL/METRO OF NORTHERN OHIO, INC.

RURAL/METRO OF OHIO, INC.

RURAL/METRO OF OREGON, INC.

RURAL/METRO OF ROCHESTER, INC.

RURAL/METRO OF SAN DIEGO, INC.

RURAL/METRO OF SOUTHERN CALIFORNIA, INC.

RURAL/METRO OF SOUTHERN OHIO, INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

S. FISHER & S. THOMAS INC.

SEMINOLE COUNTY AMBULANCE, INC.

SIOUX FALLS AMBULANCE, INC.

SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC.

SOUTHWEST AMBULANCE OF CASA GRANDE, INC.

SOUTHWEST AMBULANCE OF NEW MEXICO, INC.

SOUTHWEST AMBULANCE OF SOUTHEASTERN ARIZONA, INC.

SOUTHWEST AMBULANCE OF TUCSON, INC.

SOUTHWEST GENERAL SERVICES, INC.

SPRINGS AMBULANCE SERVICE, INC.

SSAG, LLC

STAT HEALTHCARE, INC.

SUNRISE HANDICAP TRANSPORT CORP.

SW GENERAL, INC.

T.M.S. MANAGEMENT GROUP INC.

TEK AMBULANCE, INC.

THE AID AMBULANCE COMPANY, INC.

THE AID COMPANY, INC.

TIDEWATER AMBULANCE SERVICE, INC.

TKG, INC.

TOWNS AMBULANCE SERVICE, INC.

TRANSPORTATION MANAGEMENT SERVICES OF BREVARD, INC.

TROUP COUNTY EMERGENCY MEDICAL SERVICES, INC.

VALLEY FIRE SERVICE, INC.

VELITA SMITH HOME HEALTH, INC.

V.I.P. PROFESSIONAL SERVICES, INC.

VISTA STAFFING SOLUTIONS, INC.

VITAL ENTERPRISES, INC.

W&W LEASING COMPANY, INC.

WP ROCKET HOLDINGS INC.

By:   /s/ Craig A. Wilson
        Name:   Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
ACCESS 2 CARE, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Access 2 Care, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

ACUTE MANAGEMENT, LLC
  By: HAWKEYE HOLDCO LLC, as Sole Member of Acute Management, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AGAPE HEALTH CARE AGENCY, LLC.

CARE CONNECTION OF CINCINNATI LLC

GEM CITY HOME CARE, LLC

GUARDIAN OHIO NEWCO, LLC

  By: GUARDIAN HEALTHCARE HOLDINGS, INC., as Sole Member of Agape Health Care Agency, LLC, Care Connection of Cincinnati LLC, Gem City Home Care, LLC and Guardian Ohio NewCo, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
ALPHA PHYSICIAN RESOURCES, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AMERICAN MEDICAL RESPONSE DELAWARE VALLEY, LLC

  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AMERICAN MEDICAL RESPONSE HPPP, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response HPPP, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AMERICAN MEDICAL RESPONSE OF MARICOPA, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AMERICAN MEDICAL RESPONSE OF PIMA, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
AMR BROCKTON, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

APEX ACQUISITION LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

BRAVO REIMBURSEMENT SPECIALIST, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

CMORX, LLC
  By: EMCARE, INC., as Sole Member of CMORx, LLC
  By:   /s/ Craig A. Wilson
  Name:   Craig A. Wilson
  Title:   Secretary

 

ED SOLUTIONS, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
EDIMS, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EMS MANAGEMENT LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EMS OFFSHORE MEDICAL SERVICES, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EMSC SERVICESCO, LLC
  By:   /s/ Craig A. Wilson
  Name:   Craig A. Wilson
  Title:   Secretary

 

EVERRAD, LLC
  By: TEMPLETON READINGS, LLC, as Sole Member of EverRad, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:   /s/ Craig A. Wilson
  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
EVOLUTION HEALTH LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EVOLUTION MOBILE IMAGING, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

HAWKEYE HOLDCO LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

MEDASSOCIATES, LLC
  By: EMCARE, INC., as Sole Member of MedAssociates, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

MISSION CARE OF ILLINOIS, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Illinois, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
MISSION CARE OF MISSOURI, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Missouri, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

MISSION CARE SERVICES, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

MSO NEWCO, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

PHOENIX PHYSICIANS, LLC

STREAMLINED MEDICAL SOLUTIONS LLC

  By: EMCARE, INC., as Sole Member of Phoenix Physicians, LLC and Streamlined Medical Solutions LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

PINNACLE CONSULTANTS MID-ATLANTIC, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

PROVEN HEALHCARE SOLUTIONS OF NEW JERSEY, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

PROVIDACARE, L.L.C.
  By: AMERICAN MEDICAL PATHWAYS, INC., as Sole Member of ProvidaCare, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
QRX MEDICAL MANAGEMENT, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Senior Vice President and Secretary

 

RMC CORPORATE CENTER, L.L.C.
  By: RURAL/METRO CORPORATION, as Member of RMC Corporate Center, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

RURAL/METRO MID-SOUTH, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro Mid-South, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

RURAL/METRO OF INDIANA, L.P.
  By: THE AID AMBULANCE COMPANY, INC., as General Partner of Rural/Metro of Indiana, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


 

EXISTING GUARANTORS (cont’d):
RURAL/METRO OF TENNESSEE, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro of Tennessee, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

RURAL/METRO OPERATING COMPANY, LLC
  By: RURAL/METRO CORPORATION, as Sole Member of Rural/Metro Operating Company, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

SAN DIEGO MEDICAL SERVICES ENTERPRISE, LLC
  By: RURAL/METRO OF SOUTHERN CALIFORNIA, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
  By: RURAL/METRO OF SAN DIEGO, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
REGIONAL EMERGENCY SERVICES, L.P.
  By: FLORIDA EMERGENCY PARTNERS, INC., as General Partner of Regional Emergency Services, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

ROSE RADIOLOGY, LLC
  By: SPOTLIGHT HOLDCO LLC, as Sole Member of Rose Radiology, LLC
  By: EMCARE, INC., as Sole Member of EmCare, Inc.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

SEAWALL ACQUISITION, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

SPOTLIGHT HOLDCO LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
SUN DEVIL ACQUISITION LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

TEMPLETON READINGS, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

WHITAKER PHYSICIANS SERVICES, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
AMERICAN MEDICAL RESPONSE OF NEW YORK, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response of New York, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

METROCARE SERVICES—ABILENE, L.P.
  By: AMR OF CENTRAL TEXAS II, LLC, as General Partner of MetroCare Services—Abilene, L.P.
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of AMR of Central Texas II, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

PATIENT ADVOCACY GROUP, LLC
  By: AMR HOLDCO, INC., as Sole Member of Patient Advocacy Group, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Supplemental Indenture]


WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
  By:   /s/ Joseph P. O’Donnell
    Authorized Officer

 

[Signature Page to Seventh Supplemental Indenture]

Exhibit 4.12

EXECUTION VERSION

Supplemental Indenture Joining Successor Company

December 1, 2016

EIGHTH SUPPLEMENTAL INDENTURE, dated as of December 1, 2016 (this “ Supplemental Indenture ”), among Envision Healthcare Holdings, Inc., a Delaware corporation (together with its successors and assigns, the “ Company ”), each of the existing Subsidiary Guarantors under the Indenture (as defined below) party hereto (each an “ Existing Guarantor ”) and Wilmington Trust, National Association, as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, Envision Healthcare Intermediate Corporation (the “ Existing Issuer ”), the Existing Guarantors and the Trustee have heretofore become parties to an Indenture, dated as of June 18, 2014 (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), providing for the issuance of Notes in series;

WHEREAS, pursuant to that certain Agreement and Plan of Merger among the Company, AmSurg Corp., a Tennessee corporation, and New Amethyst Corp., a Delaware corporation and a wholly owned subsidiary of AmSurg Corp., the Existing Issuer merged with and into the Company, with the Company as the surviving entity continuing its existence as a corporation under the laws of the State of Delaware;

WHEREAS, Section 502 of the Indenture provides that upon any transaction involving the Existing Issuer in accordance with Section 501 in which the Existing Issuer is not the Successor Company (as defined in the Indenture), the Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the Existing Issuer under the Indenture, and thereafter the Existing Issuer shall be relieved of all obligations and covenants under the Indenture; and

WHEREAS, pursuant to Section 901(2) of the Indenture, the parties hereto are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company, the Existing Guarantors and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows:

1. Defined Terms . As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.


2. Assumption of Obligations . The Company hereby expressly assumes all of the obligations of the Existing Issuer under the Notes and the Indenture and agrees to pay, perform and discharge when due each and every debt, obligation covenant and agreement incurred, made or to be paid, performed or discharged by the Existing Issuer under the Indenture and the Notes. The Company hereby agrees to be bound by all the terms, provisions and conditions of the Indenture and the Notes and agrees that it shall be the Successor Company and shall succeed to, and be substituted for, and may exercise every right and power of, the Existing Issuer under the Indenture and the Notes.

3. Agreement to Guarantee . Each Existing Guarantor hereby agrees, jointly and severally with the other Existing Guarantors and fully and unconditionally, to guarantee the Subsidiary Guaranteed Obligations under the Indenture and the Notes on the terms and subject to the conditions set forth in Article XIII of the Indenture and to be bound by (and shall be entitled to the benefits of) all other applicable provisions of the Indenture as a Subsidiary Guarantor.

4. Termination, Release and Discharge . Each Existing Guarantor’s Subsidiary Guarantee shall terminate and be of no further force or effect, and each Existing Guarantor shall be released and discharged from all obligations in respect of such Subsidiary Guarantee, as and when provided in Section 1303 of the Indenture.

5. Parties . Nothing in this Supplemental Indenture is intended or shall be construed to give any Person, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of each Existing Guarantor’s Subsidiary Guarantee or any provision contained herein or in Article XIII of the Indenture.

6. Governing Law . THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

7. Ratification of Indenture; Supplemental Indentures Part of Indenture . Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

8. Counterparts . The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

 

2


9. Headings . The section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

3


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

ENVISION HEALTHCARE HOLDINGS, INC.
By:   /s/ Craig A. Wilson
  Name: Craig A. Wilson
  Title: Senior Vice President and Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS

CLINICAL PARTNERS MANAGEMENT COMPANY, LLC

NORTHWOOD ANESTHESIA ASSOCIATES, L.L.C.

        By:   /s/ William A. Sanger
        Name: William A. Sanger                                 
        Title:   Manager

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

A1 LEASING, INC.

ABBOTT AMBULANCE, INC.

ACCENT HOME HEALTH CARE INC.

ADAM TRANSPORTATION SERVICE, INC.

AFFILION, INC.

AIR AMBULANCE SPECIALISTS, INC.

AMBULANCE ACQUISITION, INC.

AMERICAN EMERGENCY PHYSICIANS MANAGEMENT, INC.

AMERICAN INVESTMENT ENTERPRISES, INC.

AMERICAN MEDICAL PATHWAYS, INC.

AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC.

AMERICAN MEDICAL RESPONSE HOLDINGS, INC.

AMERICAN MEDICAL RESPONSE MANAGEMENT, INC.

AMERICAN MEDICAL RESPONSE MID-ATLANTIC, INC.

AMERICAN MEDICAL RESPONSE NORTHWEST, INC.

AMERICAN MEDICAL RESPONSE OF COLORADO, INC.

AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INCORPORATED

AMERICAN MEDICAL RESPONSE OF GEORGIA, INC.

AMERICAN MEDICAL RESPONSE OF ILLINOIS, INC.

AMERICAN MEDICAL RESPONSE OF INLAND EMPIRE

AMERICAN MEDICAL RESPONSE OF MASSACHUSETTS, INC.

AMERICAN MEDICAL RESPONSE OF NORTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF OKLAHOMA, INC.

By:   /s/ Craig A. Wilson
        Name: Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

AMERICAN MEDICAL RESPONSE OF SOUTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF SOUTHERN CALIFORNIA

AMERICAN MEDICAL RESPONSE OF TENNESSEE, INC.

AMERICAN MEDICAL RESPONSE OF TEXAS, INC.

AMERICAN MEDICAL RESPONSE WEST

AMERICAN MEDICAL RESPONSE, INC.

AMR BAY STATE, LLC

AMR HOLDCO, INC.

AMR OF CENTRAL TEXAS I, LLC

AMR OF CENTRAL TEXAS II, LLC

APH LABORATORY SERVICES, INC.

ARIZONA EMS HOLDINGS, INC.

ASSOCIATED AMBULANCE SERVICE, INC.

ATLANTIC AMBULANCE SERVICES ACQUISITION, INC.

ATLANTIC/KEY WEST AMBULANCE, INC.

ATLANTIC/PALM BEACH AMBULANCE, INC.

BEACON TRANSPORTATION, INC.

BESTPRACTICES, INC.

BLYTHE AMBULANCE SERVICE

BOWERS COMPANIES, INC.

BROWARD AMBULANCE, INC.

COMMUNITY AUTO AND FLEET SERVICES L.L.C.

COMMUNITY EMS, INC.

COMTRANS AMBULANCE SERVICE, INC.

COMTRANS, INC.

CORNING AMBULANCE SERVICE INC.

DESERT VALLEY MEDICAL TRANSPORT, INC.

DONLOCK, LTD.

By:   /s/ Craig A. Wilson
        Name: Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

E.M.S. VENTURES, INC.

EASTERN AMBULANCE SERVICE, INC.

EASTERN PARAMEDICS, INC.

EHR MANAGEMENT CO.

EMCARE ANESTHESIA PROVIDERS, INC.

EMCARE HOLDCO, INC.

EMCARE HOLDINGS INC.

EMCARE OF CALIFORNIA, INC.

EMCARE PHYSICIAN PROVIDERS, INC.

EMCARE PHYSICIAN SERVICES, INC.

EMCARE, INC.

EMERGENCY MEDICAL SERVICES LP CORPORATION

EMERGENCY MEDICAL TRANSPORT, INC.

EMERGENCY MEDICAL TRANSPORTATION, INC.

EMERGENCY MEDICINE EDUCATION SYSTEMS, INC.

EMS VENTURES OF SOUTH CAROLINA, INC.

FIVE COUNTIES AMBULANCE SERVICE, INC.

FLORIDA EMERGENCY PARTNERS, INC.

FOUNTAIN AMBULANCE SERVICE, INC.

GILA HOLDCO LLC

GOLD COAST AMBULANCE SERVICE

GOLD CROSS AMBULANCE SERVICE OF PA., INC.

GOLD CROSS AMBULANCE SERVICES, INC.

GRACE BEHAVIORAL HEALTH, L.L.C.

GREATER PINELLAS TRANSPORTATION MANAGEMENT SERVICES, INC.

GUARDIAN HEALTH CARE, INC.

GUARDIAN HEALTHCARE GROUP, INC.

GUARDIAN HEALTHCARE HOLDINGS, INC.

By:   /s/ Craig A. Wilson
        Name: Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

HANK’S ACQUISITION CORP.

HEALTH PRIORITY HOME CARE, INC.

HEALTHCARE ADMINISTRATIVE SERVICES, INC.

HEMET VALLEY AMBULANCE SERVICE, INC.

HERREN ENTERPRISES, INC.

HOLIDAY ACQUISITION COMPANY, INC.

INTERNATIONAL LIFE SUPPORT, INC.

JLM HEALTHCARE, INC.

KMAC, INC.

KUTZ AMBULANCE SERVICE, INC.

LASALLE AMBULANCE INC.

LIFE LINE AMBULANCE SERVICE, INC.

LIFECARE AMBULANCE SERVICE, INC.

LIFEFLEET SOUTHEAST, INC.

MAINSTAY SOLUTIONS, LLC

MARLBORO HUDSON AMBULANCE & WHEELCHAIR SERVICE, INC.

MEDEVAC MEDICAL RESPONSE, INC.

MEDEVAC MIDAMERICA, INC.

MEDIC ONE AMBULANCE SERVICES, INC.

MEDIC ONE OF COBB, INC.

MEDICAL EMERGENCY DEVICES AND SERVICES (MEDS), INC.

MEDI-CAR AMBULANCE SERVICE, INC.

MEDI-CAR SYSTEMS, INC.

MEDICS AMBULANCE SERVICE (DADE), INC.

MEDICS AMBULANCE SERVICE, INC.

MEDICS AMBULANCE, INC.

MEDICS EMERGENCY SERVICES OF PALM BEACH COUNTY, INC.

MEDICS SUBSCRIPTION SERVICES, INC.

MEDICS TRANSPORT SERVICES, INC.

MEDICWEST AMBULANCE, INC.

MEDICWEST HOLDINGS, INC.

MEDLIFE EMERGENCY MEDICAL SERVICE, INC.

MEDSTAT EMS, INC.

MERCURY AMBULANCE SERVICE, INC.

By:   /s/ Craig A. Wilson
        Name: Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

MERCY AMBULANCE OF EVANSVILLE, INC.

MERCY LIFE CARE

MERCY, INC.

METRO AMBULANCE SERVICE (RURAL), INC.

METRO AMBULANCE SERVICE, INC.

METRO AMBULANCE SERVICES, INC.

METRO CARE CORP.

METROPOLITAN AMBULANCE SERVICE

MIDWEST AMBULANCE MANAGEMENT COMPANY

MOBILE MEDIC AMBULANCE SERVICE, INC.

NATIONAL AMBULANCE & OXYGEN SERVICE, INC.

NEVADA RED ROCK AMBULANCE, INC.

NEVADA RED ROCK HOLDINGS, INC.

NORTH MISS. AMBULANCE SERVICE, INC.

OHERBST, INC.

PACIFIC AMBULANCE, INC.

PARAMED, INC.

PARK AMBULANCE SERVICE INC.

PHYSICIAN ACCOUNT MANAGEMENT, INC.

PHYSICIANS & SURGEONS AMBULANCE SERVICE, INC.

PROFESSIONAL MEDICAL TRANSPORT, INC.

PROVIDER ACCOUNT MANAGEMENT, INC.

PUCKETT AMBULANCE SERVICE, INC.

R/M ARIZONA HOLDINGS, INC.

R/M MANAGEMENT CO., INC.

R/M OF TENNESSEE G.P., INC.

R/M OF TENNESSEE L.P., INC.

RADIOLOGY STAFFING SOLUTIONS, INC.

RADSTAFFING MANAGEMENT SOLUTIONS, INC.

RANDLE EASTERN AMBULANCE SERVICE, INC.

REIMBURSEMENT TECHNOLOGIES, INC.

RIVER MEDICAL INCORPORATED

By:   /s/ Craig A. Wilson
        Name: Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

RURAL/METRO (DELAWARE), INC.

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION OF FLORIDA

RURAL/METRO CORPORATION OF TENNESSEE

RURAL/METRO FIRE DEPT., INC.

RURAL/METRO OF BREWERTON, INC.

RURAL/METRO OF CALIFORNIA, INC.

RURAL/METRO OF CENTRAL ALABAMA, INC.

RURAL/METRO OF CENTRAL COLORADO, INC.

RURAL/METRO OF CENTRAL OHIO, INC.

RURAL/METRO OF GREATER SEATTLE, INC.

RURAL/METRO OF NEW YORK, INC.

RURAL/METRO OF NORTHERN CALIFORNIA, INC.

RURAL/METRO OF NORTHERN OHIO, INC.

RURAL/METRO OF OHIO, INC.

RURAL/METRO OF OREGON, INC.

RURAL/METRO OF ROCHESTER, INC.

RURAL/METRO OF SAN DIEGO, INC.

RURAL/METRO OF SOUTHERN CALIFORNIA, INC.

RURAL/METRO OF SOUTHERN OHIO, INC.

By:   /s/ Craig A. Wilson
        Name: Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

S. FISHER & S. THOMAS INC.

SEMINOLE COUNTY AMBULANCE, INC.

SIOUX FALLS AMBULANCE, INC.

SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC.

SOUTHWEST AMBULANCE OF CASA GRANDE, INC.

SOUTHWEST AMBULANCE OF NEW MEXICO, INC.

SOUTHWEST AMBULANCE OF SOUTHEASTERN ARIZONA, INC.

SOUTHWEST AMBULANCE OF TUCSON, INC.

SOUTHWEST GENERAL SERVICES, INC.

SPRINGS AMBULANCE SERVICE, INC.

SSAG, LLC

STAT HEALTHCARE, INC.

SUNRISE HANDICAP TRANSPORT CORP.

SW GENERAL, INC.

T.M.S. MANAGEMENT GROUP INC.

TEK AMBULANCE, INC.

THE AID AMBULANCE COMPANY, INC.

THE AID COMPANY, INC.

TIDEWATER AMBULANCE SERVICE, INC.

TKG, INC.

TOWNS AMBULANCE SERVICE, INC.

TRANSPORTATION MANAGEMENT SERVICES OF BREVARD, INC.

TROUP COUNTY EMERGENCY MEDICAL SERVICES, INC.

VALLEY FIRE SERVICE, INC.

VELITA SMITH HOME HEALTH, INC.

V.I.P. PROFESSIONAL SERVICES, INC.

VISTA STAFFING SOLUTIONS, INC.

VITAL ENTERPRISES, INC.

W&W LEASING COMPANY, INC.

WP ROCKET HOLDINGS INC.

By:   /s/ Craig A. Wilson
        Name: Craig A. Wilson
        Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
ACCESS 2 CARE, LLC

By: MISSION CARE SERVICES, LLC, as Manager of Access 2 Care, LLC

By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC

        By:   /s/ Craig A. Wilson
  Name: Craig A. Wilson
  Title:   Secretary
ACUTE MANAGEMENT, LLC

By: HAWKEYE HOLDCO LLC, as Sole Member of Acute Management, LLC

        By:   /s/ Craig A. Wilson
  Name: Craig A. Wilson
  Title:   Secretary

AGAPE HEALTH CARE AGENCY, LLC.

CARE CONNECTION OF CINCINNATI LLC

GEM CITY HOME CARE, LLC

GUARDIAN OHIO NEWCO, LLC

By: GUARDIAN HEALTHCARE HOLDINGS, INC., as Sole Member of Agape Health Care Agency, LLC, Care Connection of Cincinnati LLC, Gem City Home Care, LLC and Guardian Ohio NewCo, LLC

        By:   /s/ Craig A. Wilson
  Name: Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
ALPHA PHYSICIAN RESOURCES, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AMERICAN MEDICAL RESPONSE DELAWARE VALLEY, LLC

  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AMERICAN MEDICAL RESPONSE HPPP, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response HPPP, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AMERICAN MEDICAL RESPONSE OF MARICOPA, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

AMERICAN MEDICAL RESPONSE OF PIMA, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
AMR BROCKTON, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

APEX ACQUISITION LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

BRAVO REIMBURSEMENT SPECIALIST, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

CMORX, LLC
  By: EMCARE, INC., as Sole Member of CMORx, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

ED SOLUTIONS, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
EDIMS, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EMS MANAGEMENT LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EMS OFFSHORE MEDICAL SERVICES, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EMSC SERVICESCO, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EVERRAD, LLC
  By: TEMPLETON READINGS, LLC, as Sole Member of EverRad, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
EVOLUTION HEALTH LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

EVOLUTION MOBILE IMAGING, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

HAWKEYE HOLDCO LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

MEDASSOCIATES, LLC
  By: EMCARE, INC., as Sole Member of MedAssociates, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

MISSION CARE OF ILLINOIS, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Illinois, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
MISSION CARE OF MISSOURI, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Missouri, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

MISSION CARE SERVICES, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

MSO NEWCO, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

PHOENIX PHYSICIANS, LLC

STREAMLINED MEDICAL SOLUTIONS LLC

  By: EMCARE, INC., as Sole Member of Phoenix Physicians, LLC and Streamlined Medical Solutions LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

PINNACLE CONSULTANTS MID-ATLANTIC, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

PROVEN HEALHCARE SOLUTIONS OF NEW JERSEY, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

PROVIDACARE, L.L.C.
  By: AMERICAN MEDICAL PATHWAYS, INC., as Sole Member of ProvidaCare, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
QRX MEDICAL MANAGEMENT, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Vice President and Secretary

 

RMC CORPORATE CENTER, L.L.C.
  By: RURAL/METRO CORPORATION, as Member of RMC Corporate Center, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

RURAL/METRO MID-SOUTH, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro Mid-South, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

RURAL/METRO OF INDIANA, L.P.
  By: THE AID AMBULANCE COMPANY, INC., as General Partner of Rural/Metro of Indiana, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
RURAL/METRO OF TENNESSEE, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro of Tennessee, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

RURAL/METRO OPERATING COMPANY, LLC
  By: RURAL/METRO CORPORATION, as Sole Member of Rural/Metro Operating Company, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

SAN DIEGO MEDICAL SERVICES ENTERPRISE, LLC

  By: RURAL/METRO OF SOUTHERN CALIFORNIA, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary
  By: RURAL/METRO OF SAN DIEGO, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
REGIONAL EMERGENCY SERVICES, L.P.
  By: FLORIDA EMERGENCY PARTNERS, INC., as General Partner of Regional Emergency Services, L.P.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

ROSE RADIOLOGY, LLC
  By: SPOTLIGHT HOLDCO LLC, as Sole Member of Rose Radiology, LLC
  By: EMCARE, INC., as Sole Member of EmCare, Inc.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

SEAWALL ACQUISITION, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

SPOTLIGHT HOLDCO LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
SUN DEVIL ACQUISITION LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

TEMPLETON READINGS, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

WHITAKER PHYSICIANS SERVICES, L.L.C.
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

AMERICAN MEDICAL RESPONSE OF NEW YORK, LLC

  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response of New York, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

METROCARE SERVICES—ABILENE, L.P.

  By: AMR OF CENTRAL TEXAS II, LLC, as General Partner of MetroCare Services—Abilene, L.P.
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of AMR of Central Texas II, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

PATIENT ADVOCACY GROUP, LLC
  By: AMR HOLDCO, INC., as Sole Member of Patient Advocacy Group, LLC
  By:   /s/ Craig A. Wilson
    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Eighth Supplemental Indenture]


WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
By:   /s/ Joseph P. O’Donnell
  Authorized Officer

 

[Signature Page to Eighth Supplemental Indenture]

Exhibit 4.13

EXECUTION VERSION

Supplemental Indenture Joining Successor Company and in Respect of Subsidiary Guarantees

December 1, 2016

NINTH SUPPLEMENTAL INDENTURE, dated as of December 1, 2016 (this “ Supplemental Indenture ”), among the Subsidiaries listed on Schedule A hereto (the “ New Subsidiary Guarantors ” and each, a “ New Subsidiary Guarantor ”), Envision Healthcare Corporation (f/k/a New Amethyst Corp.) (together with its successors and assigns, the “ Issuer Company ”), each of the existing Subsidiary Guarantors under the Indenture (as defined below) party hereto (each an “ Existing Guarantor ” and, together with the New Subsidiary Guarantors, the “ Subsidiary Guarantors ”) and Wilmington Trust, National Association, as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, Envision Healthcare Holdings, Inc. (the “ Existing Issuer ”), the Existing Guarantors and the Trustee have heretofore become parties to an Indenture, dated as of June 18, 2014 (as amended, supplemented, waived or otherwise modified, the “ Indenture ”), providing for the issuance of Notes in series;

WHEREAS, pursuant to that certain Agreement and Plan of Merger among the Existing Issuer, AmSurg Corp., a Tennessee corporation, and the Issuer Company, the Existing Issuer merged with and into the Issuer Company, with the Issuer Company as the surviving entity continuing its existence as a corporation under the laws of the State of Delaware;

WHEREAS, Section 502 of the Indenture provides that upon any transaction involving the Existing Issuer in accordance with Section 501 in which the Existing Issuer is not the Successor Company (as defined in the Indenture), the Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the Existing Issuer under the Indenture, and thereafter the Existing Issuer shall be relieved of all obligations and covenants under the Indenture;

WHEREAS, Section 1308 of the Indenture provides that the Issuer Company is required to cause the New Subsidiary Guarantors to execute and deliver to the Trustee a supplemental indenture pursuant to which the New Subsidiary Guarantors shall guarantee the Issuer Company’s Subsidiary Guaranteed Obligations under the Notes pursuant to a Subsidiary Guarantee on the terms and conditions set forth herein and in Article XIII of the Indenture;

WHEREAS, each New Subsidiary Guarantor desires to enter into such supplemental indenture for good and valuable consideration, including substantial economic benefit in that the financial performance and condition of such New Subsidiary Guarantor is dependent on the financial performance and condition of the Issuer Company, the obligations hereunder of which such New Subsidiary Guarantor has guaranteed, and on such New Subsidiary Guarantor’s access to working capital through the Issuer Company’s access to revolving credit borrowings under the Senior ABL Facility; and


WHEREAS, pursuant to Section 901 of the Indenture, the parties hereto are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Subsidiary Guarantors, the Issuer Company and the Trustee mutually covenant and agree for the benefit of the Holders of the Notes as follows:

1. Defined Terms . As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

2. Assumption of Obligations . The Issuer Company hereby expressly assumes all of the obligations of the Existing Issuer under the Notes and the Indenture and agrees to pay, perform and discharge when due each and every debt, obligation covenant and agreement incurred, made or to be paid, performed or discharged by the Existing Issuer under the Indenture and the Notes. The Issuer Company hereby agrees to be bound by all the terms, provisions and conditions of the Indenture and the Notes and agrees that it shall be the Successor Company and shall succeed to, and be substituted for, and may exercise every right and power of, the Existing Issuer under the Indenture and the Notes.

3. Agreement to Guarantee . Each Subsidiary Guarantor hereby agrees, jointly and severally with the other Subsidiary Guarantors and fully and unconditionally, to guarantee the Subsidiary Guaranteed Obligations under the Indenture and the Notes on the terms and subject to the conditions set forth in Article XIII of the Indenture and to be bound by (and shall be entitled to the benefits of) all other applicable provisions of the Indenture as a Subsidiary Guarantor.

4. Termination, Release and Discharge . Each Subsidiary Guarantor’s Subsidiary Guarantee shall terminate and be of no further force or effect, and each Subsidiary Guarantor shall be released and discharged from all obligations in respect of such Subsidiary Guarantee, as and when provided in Section 1303 of the Indenture.

5. Parties . Nothing in this Supplemental Indenture is intended or shall be construed to give any Person, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of each Subsidiary Guarantor’s Subsidiary Guarantee or any provision contained herein or in Article XIII of the Indenture.

6. Governing Law . THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE ISSUER COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED

 

2


STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

7. Ratification of Indenture; Supplemental Indentures Part of Indenture . Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

8. Counterparts . The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

9. Headings . The section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

3


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

 

ISSUER COMPANY:
ENVISION HEALTHCARE CORPORATION
By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Chief Financial Officer

 

[Signature Page to Supplemental Indenture]


GUARANTORS :

AMSURG ABILENE, INC.

AMSURG ABILENE EYE, INC.

AMSURG ALTAMONTE SPRINGS FL, INC.

AMSURG ANESTHESIA MANAGEMENT SERVICES, LLC

AMSURG ARCADIA CA, INC.

AMSURG BURBANK, INC.

AMSURG COLTON CA, INC.

AMSURG CRYSTAL RIVER, INC.

AMSURG EC BEAUMONT, INC.

AMSURG EC SANTA FE, INC.

AMSURG EC ST. THOMAS, INC.

AMSURG EC TOPEKA, INC.

AMSURG EC WASHINGTON, INC.

AMSURG EL PASO, INC.

AMSURG ESCONDIDO CA, INC.

AMSURG FINANCE, INC.

AMSURG FRESNO ENDOSCOPY, INC.

AMSURG GLENDORA CA, INC.

AMSURG HILLMONT, INC.

AMSURG HOLDINGS, INC.

AMSURG INGLEWOOD, INC.

AMSURG KEC, INC.

AMSURG KISSIMMEE FL, INC.

AMSURG LA JOLLA, INC.

AMSURG LANCASTER PA, LLC

AMSURG MAIN LINE PA, LLC

AMSURG MARYVILLE, INC.

AMSURG MELBOURNE, INC.

AMSURG NORTHWEST FLORIDA, INC.

AMSURG OAKLAND CA, INC.

AMSURG OCALA, INC.

AMSURG PALMETTO, INC.

AMSURG POTTSVILLE PA, LLC

AMSURG SAN ANTONIO TX, INC.

AMSURG SAN LUIS OBISPO CA, INC.

AMSURG SUNCOAST, INC.

AMSURG TEMECULA CA, INC.

AMSURG TEMECULA II INC.

AMSURG TORRANCE, INC.

AMSURG SCRANTON PA, INC.

By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Vice President, Secretary and Treasurer

 

[Signature Page to Supplemental Indenture]


GUARANTORS (cont’d):
ASDH I, LLC
AUSTIN NSC, LLC
CORAL SPRINGS NSC, LLC
DAVIS NSC, LLC
FULLERTON NSC, LLC
KENWOOD NSC, LLC
LONG BEACH NSC, LLC
NSC RBO EAST, LLC
NSC WEST PALM, LLC
SAN ANTONIO NSC, LLC
SHI II, LLC
TAMPA BAY NSC, LLC
TORRANCE NSC, LLC
TOWSON NSC, LLC
TWIN FALLS NSC, LLC
WESTON NSC, LLC
By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Vice President, Secretary and Treasurer
AUSTIN NSC, LP
  By: Austin NSC, LLC, its general partner
  By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Vice President, Secretary and Treasurer
WILTON NSC, LLC
  By: AmSurg Holdings, Inc. as the managing member
  By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Vice President, Secretary and Treasurer

 

[Signature Page to Supplemental Indenture]


GUARANTORS (cont’d):

ALL WOMEN’S HEALTHCARE HOLDINGS, INC.

ALL WOMEN’S HEALTHCARE, INC.

ALL WOMEN’S HEALTHCARE OF DADE, INC.

ALL WOMEN’S HEALTHCARE OF SAWGRASS, INC.

ALL WOMEN’S HEALTHCARE OF WEST BROWARD, INC.

ALL WOMEN’S HEALTHCARE SERVICES, INC.

DISCOVERY CLINICAL RESEARCH, INC.

FM HEALTHCARE SERVICES, INC.

FMO HEALTHCARE HOLDINGS, INC.

FO INVESTMENTS, INC.

FO INVESTMENTS II, INC.

FO INVESTMENTS III, INC.

GLOBAL SURGICAL PARTNERS, INC.

SHERIDAN RADIOLOGY MANAGEMENT SERVICES, INC.

SHERIDAN RADIOLOGY SERVICES, INC.

By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Vice President and Treasurer

 

[Signature Page to Supplemental Indenture]


GUARANTORS (cont’d):

ANESTHESIOLOGISTS OF GREATER ORLANDO, INC.

ANESTHESIOLOGY ASSOCIATES OF TALLAHASSEE, INC.

BETHESDA ANESTHESIA ASSOCIATES, INC.

BOCA ANESTHESIA SERVICE, INC.

DRS. ELLIS, ROJAS, ROSS & DEBS, INC.

FLAMINGO ANESTHESIA ASSOCIATES, INC.

GREATER FLORIDA ANESTHESIOLOGISTS, LLC

GYNECOLOGIC ONCOLOGY ASSOCIATES, INC.

JACKSONVILLE BEACHES ANESTHESIA ASSOCIATES, INC.

JUPITER ANESTHESIA ASSOCIATES, L.L.C.

JUPITER HEALTHCARE, LLC

NEW GENERATIONS BABEE BAG, INC.

NORTH FLORIDA PERINATAL ASSOCIATES, INC.

PARITY HEALTHCARE, INC.

SHERIDAN ANESTHESIA SERVICES OF ALABAMA, INC.

SHERIDAN ANESTHESIA SERVICES OF LOUISIANA, INC.

SHERIDAN ANESTHESIA SERVICES OF VIRGINIA, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF ARIZONA, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF LOUISIANA, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF NEW MEXICO, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF VIRGINIA, INC.

SHERIDAN CLINICAL RESEARCH, INC.

SHERIDAN EMERGENCY PHYSICIAN SERVICES, INC.

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF MISSOURI, INC.

By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Chief Executive Officer

 

[Signature Page to Supplemental Indenture]


GUARANTORS (cont’d):

BAY AREA ANESTHESIA, L.L.C.

COASTAL ANESTHESIA STAFFING, LLC

COASTAL ANESTHESIOLOGY CONSULTANTS, LLC

MEDICAL INFORMATION MANAGEMENT SOLUTIONS, LLC

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF OHIO, INC.

SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF KENTUCKY, INC.

SHERIDAN CHILDREN’S SERVICES OF ALABAMA, INC.

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF NORTH MISSOURI, INC.

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH FLORIDA, INC.

SHERIDAN HEALTHCARE, INC.

SHERIDAN HEALTHCARE OF LOUISIANA, INC.

SHERIDAN HEALTHCARE OF MISSOURI, INC.

SHERIDAN HEALTHCARE OF VERMONT, INC.

SHERIDAN HEALTHCARE OF VIRGINIA, INC.

SHERIDAN HEALTHCARE OF WEST VIRGINIA, INC.

SHERIDAN HEALTHCORP, INC.

SHERIDAN HEALTHCORP OF CALIFORNIA, INC.

SHERIDAN HEALTHY HEARING SERVICES, INC.

SHERIDAN HOLDINGS, INC.

SHERIDAN ROP SERVICES OF VIRGINIA, INC.

SHERIDAN INVESTCO, LLC

SOUTHEAST PERINATAL ASSOCIATES, INC. SUNBEAM ASSET, LLC

SUNBEAM INTERMEDIATE HOLDINGS, INC.

SUNBEAM PRIMARY HOLDINGS, INC.

TENNESSEE VALLEY NEONATOLOGY, INC.

TIVA HEALTHCARE, INC.

By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Chief Executive Officer

 

[Signature Page to Supplemental Indenture]


GUARANTORS (cont’d):

CHANDLER EMERGENCY MEDICAL GROUP, L.L.C. D/B/A PREMIER EMERGENCY MEDICAL SPECIALISTS

By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Manager

PARTNERS IN MEDICAL BILLING, INC.

By:  

/s/ Jillian Marcus

  Name:   Jillian Marcus
  Title:   President

SHERIDAN ROP SERVICES OF FLORIDA, INC.

SENTINEL HEALTHCARE SERVICES, LLC

By:  

/s/ Jillian Marcus

  Name:   Jillian Marcus
  Title:   Vice President

ALLEGIANTMD, INC.

ARIZONA PERINATAL CARE CENTERS, LLC

BROAD MIDWEST ANESTHESIA, LLC

DOCTORS BILLING SERVICE, INC.

MEDI-BILL OF NORTH FLORIDA, INC.

NORTH FLORIDA ANESTHESIA CONSULTANTS, INC.

SHERIDAN CADR SOLUTIONS, INC.

SHERIDAN HOSPITALIST SERVICES OF FLORIDA, INC.

SHERIDAN LEADERSHIP ACADEMY, INC.

SHERIDAN SCIENTIFIC INTELLIGENCE, INC.

ST. LUCIE ANESTHESIA ASSOCIATES, LLC

VALLEY CLINICAL RESEARCH, INC.

By:  

/s/ Jillian Marcus

  Name:   Jillian Marcus
  Title:   Vice President and Secretary

 

[Signature Page to Supplemental Indenture]


GUARANTORS (cont’d):
PHYSICIAN OFFICE PARTNERS, INC.
By:  

/s/ Robert Davey

  Name:   Robert Davey
  Title:   President
NAC PROPERTIES, LLC

VALLEY ANESTHESIOLOGY CONSULTANTS, INC.

By:  

/s/ Robert Davey

  Name:   Robert Davey
  Title:   President

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS
CLINICAL PARTNERS MANAGEMENT COMPANY, LLC
NORTHWOOD ANESTHESIA ASSOCIATES, L.L.C.
By:  

/s/ William A. Sanger

  Name:   William A. Sanger
  Title:   Manager

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

A1 LEASING, INC.

ABBOTT AMBULANCE, INC.

ACCENT HOME HEALTH CARE INC.

ADAM TRANSPORTATION SERVICE, INC.

AFFILION, INC.

AIR AMBULANCE SPECIALISTS, INC.

AMBULANCE ACQUISITION, INC.

AMERICAN EMERGENCY PHYSICIANS MANAGEMENT, INC.

AMERICAN INVESTMENT ENTERPRISES, INC.

AMERICAN MEDICAL PATHWAYS, INC.

AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC.

AMERICAN MEDICAL RESPONSE HOLDINGS, INC.

AMERICAN MEDICAL RESPONSE MANAGEMENT, INC.

AMERICAN MEDICAL RESPONSE MID-ATLANTIC, INC.

AMERICAN MEDICAL RESPONSE NORTHWEST, INC.

AMERICAN MEDICAL RESPONSE OF COLORADO, INC.

AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INCORPORATED

AMERICAN MEDICAL RESPONSE OF GEORGIA, INC.

AMERICAN MEDICAL RESPONSE OF ILLINOIS, INC.

AMERICAN MEDICAL RESPONSE OF INLAND EMPIRE

AMERICAN MEDICAL RESPONSE OF MASSACHUSETTS, INC.

AMERICAN MEDICAL RESPONSE OF NORTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF OKLAHOMA, INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

AMERICAN MEDICAL RESPONSE OF SOUTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF SOUTHERN CALIFORNIA

AMERICAN MEDICAL RESPONSE OF TENNESSEE, INC.

AMERICAN MEDICAL RESPONSE OF TEXAS, INC.

AMERICAN MEDICAL RESPONSE WEST

AMERICAN MEDICAL RESPONSE, INC.

AMR BAY STATE, LLC

AMR HOLDCO, INC.

AMR OF CENTRAL TEXAS I, LLC

AMR OF CENTRAL TEXAS II, LLC

APH LABORATORY SERVICES, INC.

ARIZONA EMS HOLDINGS, INC.

ASSOCIATED AMBULANCE SERVICE, INC.

ATLANTIC AMBULANCE SERVICES ACQUISITION, INC.

ATLANTIC/KEY WEST AMBULANCE, INC.

ATLANTIC/PALM BEACH AMBULANCE, INC.

BEACON TRANSPORTATION, INC.

BESTPRACTICES, INC.

BLYTHE AMBULANCE SERVICE

BOWERS COMPANIES, INC.

BROWARD AMBULANCE, INC.

COMMUNITY AUTO AND FLEET SERVICES L.L.C.

COMMUNITY EMS, INC.

COMTRANS AMBULANCE SERVICE, INC.

COMTRANS, INC.

CORNING AMBULANCE SERVICE INC.

DESERT VALLEY MEDICAL TRANSPORT, INC.

DONLOCK, LTD.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

E.M.S. VENTURES, INC.

EASTERN AMBULANCE SERVICE, INC.

EASTERN PARAMEDICS, INC.

EHR MANAGEMENT CO.

EMCARE ANESTHESIA PROVIDERS, INC.

EMCARE HOLDCO, INC.

EMCARE HOLDINGS INC.

EMCARE OF CALIFORNIA, INC.

EMCARE PHYSICIAN PROVIDERS, INC.

EMCARE PHYSICIAN SERVICES, INC.

EMCARE, INC.

EMERGENCY MEDICAL SERVICES LP CORPORATION

EMERGENCY MEDICAL TRANSPORT, INC.

EMERGENCY MEDICAL TRANSPORTATION, INC.

EMERGENCY MEDICINE EDUCATION SYSTEMS, INC.

EMS VENTURES OF SOUTH CAROLINA, INC.

FIVE COUNTIES AMBULANCE SERVICE, INC.

FLORIDA EMERGENCY PARTNERS, INC.

FOUNTAIN AMBULANCE SERVICE, INC.

GILA HOLDCO LLC

GOLD COAST AMBULANCE SERVICE

GOLD CROSS AMBULANCE SERVICE OF PA., INC.

GOLD CROSS AMBULANCE SERVICES, INC.

GRACE BEHAVIORAL HEALTH, L.L.C.

GREATER PINELLAS TRANSPORTATION MANAGEMENT SERVICES, INC.

GUARDIAN HEALTH CARE, INC.

GUARDIAN HEALTHCARE GROUP, INC.

GUARDIAN HEALTHCARE HOLDINGS, INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

HANK’S ACQUISITION CORP.

HEALTH PRIORITY HOME CARE, INC.

HEALTHCARE ADMINISTRATIVE SERVICES, INC.

HEMET VALLEY AMBULANCE SERVICE, INC.

HERREN ENTERPRISES, INC.

HOLIDAY ACQUISITION COMPANY, INC.

INTERNATIONAL LIFE SUPPORT, INC.

JLM HEALTHCARE, INC.

KMAC, INC.

KUTZ AMBULANCE SERVICE, INC.

LASALLE AMBULANCE INC.

LIFE LINE AMBULANCE SERVICE, INC.

LIFECARE AMBULANCE SERVICE, INC.

LIFEFLEET SOUTHEAST, INC.

MAINSTAY SOLUTIONS, LLC

MARLBORO HUDSON AMBULANCE & WHEELCHAIR SERVICE, INC.

MEDEVAC MEDICAL RESPONSE, INC.

MEDEVAC MIDAMERICA, INC.

MEDIC ONE AMBULANCE SERVICES, INC.

MEDIC ONE OF COBB, INC.

MEDICAL EMERGENCY DEVICES AND SERVICES (MEDS), INC.

MEDI-CAR AMBULANCE SERVICE, INC.

MEDI-CAR SYSTEMS, INC.

MEDICS AMBULANCE SERVICE (DADE), INC.

MEDICS AMBULANCE SERVICE, INC.

MEDICS AMBULANCE, INC.

MEDICS EMERGENCY SERVICES OF PALM BEACH COUNTY, INC.

MEDICS SUBSCRIPTION SERVICES, INC.

MEDICS TRANSPORT SERVICES, INC.

MEDICWEST AMBULANCE, INC.

MEDICWEST HOLDINGS, INC.

MEDLIFE EMERGENCY MEDICAL SERVICE, INC.

MEDSTAT EMS, INC.

MERCURY AMBULANCE SERVICE, INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

MERCY AMBULANCE OF EVANSVILLE, INC.

MERCY LIFE CARE

MERCY, INC.

METRO AMBULANCE SERVICE (RURAL), INC.

METRO AMBULANCE SERVICE, INC.

METRO AMBULANCE SERVICES, INC.

METRO CARE CORP.

METROPOLITAN AMBULANCE SERVICE

MIDWEST AMBULANCE MANAGEMENT COMPANY

MOBILE MEDIC AMBULANCE SERVICE, INC.

NATIONAL AMBULANCE & OXYGEN SERVICE, INC.

NEVADA RED ROCK AMBULANCE, INC.

NEVADA RED ROCK HOLDINGS, INC.

NORTH MISS. AMBULANCE SERVICE, INC.

OHERBST, INC.

PACIFIC AMBULANCE, INC.

PARAMED, INC.

PARK AMBULANCE SERVICE INC.

PHYSICIAN ACCOUNT MANAGEMENT, INC.

PHYSICIANS & SURGEONS AMBULANCE SERVICE, INC.

PROFESSIONAL MEDICAL TRANSPORT, INC.

PROVIDER ACCOUNT MANAGEMENT, INC.

PUCKETT AMBULANCE SERVICE, INC.

R/M ARIZONA HOLDINGS, INC.

R/M MANAGEMENT CO., INC.

R/M OF TENNESSEE G.P., INC.

R/M OF TENNESSEE L.P., INC.

RADIOLOGY STAFFING SOLUTIONS, INC.

RADSTAFFING MANAGEMENT SOLUTIONS, INC.

RANDLE EASTERN AMBULANCE SERVICE, INC.

REIMBURSEMENT TECHNOLOGIES, INC.

RIVER MEDICAL INCORPORATED

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

RURAL/METRO (DELAWARE), INC.

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION OF FLORIDA

RURAL/METRO CORPORATION OF TENNESSEE

RURAL/METRO FIRE DEPT., INC.

RURAL/METRO OF BREWERTON, INC.

RURAL/METRO OF CALIFORNIA, INC.

RURAL/METRO OF CENTRAL ALABAMA, INC.

RURAL/METRO OF CENTRAL COLORADO, INC.

RURAL/METRO OF CENTRAL OHIO, INC.

RURAL/METRO OF GREATER SEATTLE, INC.

RURAL/METRO OF NEW YORK, INC.

RURAL/METRO OF NORTHERN CALIFORNIA, INC.

RURAL/METRO OF NORTHERN OHIO, INC.

RURAL/METRO OF OHIO, INC.

RURAL/METRO OF OREGON, INC.

RURAL/METRO OF ROCHESTER, INC.

RURAL/METRO OF SAN DIEGO, INC.

RURAL/METRO OF SOUTHERN CALIFORNIA, INC.

RURAL/METRO OF SOUTHERN OHIO, INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

S. FISHER & S. THOMAS INC.

SEMINOLE COUNTY AMBULANCE, INC.

SIOUX FALLS AMBULANCE, INC.

SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC.

SOUTHWEST AMBULANCE OF CASA GRANDE, INC.

SOUTHWEST AMBULANCE OF NEW MEXICO, INC.

SOUTHWEST AMBULANCE OF SOUTHEASTERN ARIZONA, INC.

SOUTHWEST AMBULANCE OF TUCSON, INC.

SOUTHWEST GENERAL SERVICES, INC.

SPRINGS AMBULANCE SERVICE, INC.

SSAG, LLC

STAT HEALTHCARE, INC.

SUNRISE HANDICAP TRANSPORT CORP.

SW GENERAL, INC.

T.M.S. MANAGEMENT GROUP INC.

TEK AMBULANCE, INC.

THE AID AMBULANCE COMPANY, INC.

THE AID COMPANY, INC.

TIDEWATER AMBULANCE SERVICE, INC.

TKG, INC.

TOWNS AMBULANCE SERVICE, INC.

TRANSPORTATION MANAGEMENT SERVICES OF BREVARD, INC.

TROUP COUNTY EMERGENCY MEDICAL SERVICES, INC.

VALLEY FIRE SERVICE, INC.

VELITA SMITH HOME HEALTH, INC.

V.I.P. PROFESSIONAL SERVICES, INC.

VISTA STAFFING SOLUTIONS, INC.

VITAL ENTERPRISES, INC.

W&W LEASING COMPANY, INC.

WP ROCKET HOLDINGS INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
ACCESS 2 CARE, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Access 2 Care, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ACUTE MANAGEMENT, LLC
  By: HAWKEYE HOLDCO LLC, as Sole Member of Acute Management, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AGAPE HEALTH CARE AGENCY, LLC.
CARE CONNECTION OF CINCINNATI LLC
GEM CITY HOME CARE, LLC
GUARDIAN OHIO NEWCO, LLC
  By: GUARDIAN HEALTHCARE HOLDINGS, INC., as Sole Member of Agape Health Care Agency, LLC, Care Connection of Cincinnati LLC, Gem City Home Care, LLC and Guardian Ohio NewCo, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

ALPHA PHYSICIAN RESOURCES, L.L.C.

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE DELAWARE VALLEY, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE HPPP, LLC

  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response HPPP, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE OF MARICOPA, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE OF PIMA, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
AMR BROCKTON, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
APEX ACQUISITION LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
BRAVO REIMBURSEMENT SPECIALIST, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
CMORX, LLC
  By: EMCARE, INC., as Sole Member of CMORx, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ED SOLUTIONS, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
EDIMS, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMS MANAGEMENT LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMS OFFSHORE MEDICAL SERVICES, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMSC SERVICESCO, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EVERRAD, LLC
  By: TEMPLETON READINGS, LLC, as Sole Member of EverRad, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
EVOLUTION HEALTH LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EVOLUTION MOBILE IMAGING, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
HAWKEYE HOLDCO LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MEDASSOCIATES, LLC
  By: EMCARE, INC., as Sole Member of MedAssociates, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MISSION CARE OF ILLINOIS, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Illinois, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
MISSION CARE OF MISSOURI, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Missouri, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MISSION CARE SERVICES, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MSO NEWCO, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
PHOENIX PHYSICIANS, LLC
STREAMLINED MEDICAL SOLUTIONS LLC
  By: EMCARE, INC., as Sole Member of Phoenix Physicians, LLC and Streamlined Medical Solutions LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

PINNACLE CONSULTANTS MID-ATLANTIC, L.L.C.

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

PROVEN HEALHCARE SOLUTIONS OF NEW JERSEY, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PROVIDACARE, L.L.C.
  By: AMERICAN MEDICAL PATHWAYS, INC., as Sole Member of ProvidaCare, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
QRX MEDICAL MANAGEMENT, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Senior Vice President and Secretary
RMC CORPORATE CENTER, L.L.C.
  By: RURAL/METRO CORPORATION, as Member of RMC Corporate Center, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO MID-SOUTH, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro Mid-South, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO OF INDIANA, L.P.
  By: THE AID AMBULANCE COMPANY, INC., as General Partner of Rural/Metro of Indiana, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
RURAL/METRO OF TENNESSEE, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro of Tennessee, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO OPERATING COMPANY, LLC
  By: RURAL/METRO CORPORATION, as Sole Member of Rural/Metro Operating Company, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SAN DIEGO MEDICAL SERVICES ENTERPRISE, LLC
  By: RURAL/METRO OF SOUTHERN CALIFORNIA, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
  By: RURAL/METRO OF SAN DIEGO, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
REGIONAL EMERGENCY SERVICES, L.P.
  By: FLORIDA EMERGENCY PARTNERS, INC., as General Partner of Regional Emergency Services, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ROSE RADIOLOGY, LLC
  By: SPOTLIGHT HOLDCO LLC, as Sole Member of Rose Radiology, LLC
  By: EMCARE, INC., as Sole Member of EmCare, Inc.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SEAWALL ACQUISITION, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SPOTLIGHT HOLDCO LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):
SUN DEVIL ACQUISITION LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
TEMPLETON READINGS, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
WHITAKER PHYSICIANS SERVICES, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


EXISTING GUARANTORS (cont’d):

AMERICAN MEDICAL RESPONSE OF NEW YORK, LLC

  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response of New York, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
METROCARE SERVICES – ABILENE, L.P.
  By: AMR OF CENTRAL TEXAS II, LLC, as General Partner of MetroCare Services – Abilene, L.P.
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of AMR of Central Texas II, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PATIENT ADVOCACY GROUP, LLC
  By: AMR HOLDCO, INC., as Sole Member of Patient Advocacy Group, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Supplemental Indenture]


WILMINGTON TRUST, NATIONAL ASSOCIATION,
as Trustee
By:  

/s/ Joseph P. O’Donnell

  Authorized Officer

 

[Signature Page to Supplemental Indenture]


SCHEDULE A

 

    

New Subsidiary Guarantors

  

Jurisdiction of

Organization

1.    All Women’s Healthcare Holdings, Inc.    Delaware
2.    All Women’s Healthcare of Dade, Inc.    Florida
3.    All Women’s Healthcare of Sawgrass, Inc.    Florida
4.    All Women’s Healthcare of West Broward, Inc.    Florida
5.    All Women’s Healthcare Services, Inc.    Florida
6.    All Women’s Healthcare, Inc.    Florida
7.    AllegiantMD, Inc.    Florida
8.    AmSurg Abilene Eye, Inc.    Tennessee
9.    AmSurg Abilene, Inc.    Tennessee
10.    AmSurg Altamonte Springs FL, Inc.    Tennessee
11.    AmSurg Anesthesia Management Services, LLC    Tennessee
12.    AmSurg Arcadia CA, Inc.    Tennessee
13.    AmSurg Burbank, Inc.    Tennessee
14.    AmSurg Colton CA, Inc.    Tennessee
15.    AmSurg Crystal River, Inc.    Tennessee
16.    AmSurg EC Beaumont, Inc.    Tennessee
17.    AmSurg EC Santa Fe, Inc.    Tennessee
18.    AmSurg EC St. Thomas, Inc.    Tennessee
19.    AmSurg EC Topeka, Inc.    Tennessee
20.    AmSurg EC Washington, Inc.    Tennessee
21.    AmSurg El Paso, Inc.    Tennessee
22.    AmSurg Escondido CA, Inc.    Tennessee
23.    AmSurg Finance, Inc.    Tennessee
24.    AmSurg Fresno Endoscopy, Inc.    Tennessee
25.    AmSurg Glendora CA, Inc.    Tennessee
26.    AmSurg Hillmont, Inc.    Tennessee
27.    AmSurg Holdings, Inc.    Delaware
28.    AmSurg Inglewood, Inc.    Tennessee
29.    AmSurg KEC, Inc.    Tennessee
30.    AmSurg Kissimmee FL, Inc.    Tennessee
31.    AmSurg La Jolla, Inc.    Tennessee
32.    AmSurg Lancaster PA, LLC    Tennessee
33.    AmSurg Main Line PA, LLC    Tennessee
34.    AmSurg Maryville, Inc.    Tennessee
35.    AmSurg Melbourne, Inc.    Tennessee
36.    AmSurg Northwest Florida, Inc.    Tennessee
37.    AmSurg Oakland CA, Inc.    Tennessee
38.    AmSurg Ocala, Inc.    Tennessee
39.    AmSurg Palmetto, Inc.    Tennessee
40.    AmSurg Pottsville PA, LLC    Tennessee
41.    AmSurg San Antonio TX, Inc.    Tennessee


42.    AmSurg San Luis Obispo CA, Inc.    Tennessee
43.    AmSurg Scranton PA, Inc.    Tennessee
44.    AmSurg Suncoast, Inc.    Tennessee
45.    AmSurg Temecula CA, Inc.    Tennessee
46.    AmSurg Temecula II Inc.    Tennessee
47.    AmSurg Torrance, Inc.    Tennessee
48.    Anesthesiologists of Greater Orlando, Inc.    Florida
49.    Anesthesiology Associates of Tallahassee, Inc.    Florida
50.    Arizona Perinatal Care Centers, LLC    Arizona
51.    ASDH I, LLC    Tennessee
52.    Austin NSC, LLC    Tennessee
53.    Austin NSC, LP    Texas
54.    Bay Area Anesthesia, L.L.C.    Florida
55.    Bethesda Anesthesia Associates, Inc.    Florida
56.    Boca Anesthesia Service, Inc.    Florida
57.    Broad Midwest Anesthesia, LLC    Missouri
58.    Chandler Emergency Medical Group, L.L.C. d/b/a Premier Emergency Medical Specialists    Arizona
59.    Coastal Anesthesia Staffing, LLC    Florida
60.    Coastal Anesthesiology Consultants, LLC    Florida
61.    Coral Springs NSC, LLC    Tennessee
62.    Davis NSC, LLC    Tennessee
63.    Discovery Clinical Research, Inc.    Florida
64.    Doctors Billing Service, Inc.    California
65.    Drs. Ellis, Rojas, Ross & Debs, Inc.    Florida
66.    Flamingo Anesthesia Associates, Inc.    Florida
67.    FM Healthcare Services, Inc.    Florida
68.    FMO Healthcare Holdings, Inc.    Delaware
69.    FO Investments II, Inc.    Florida
70.    FO Investments III, Inc.    Florida
71.    FO Investments, Inc.    Florida
72.    Fullerton NSC, LLC    Tennessee
73.    Global Surgical Partners, Inc.    Florida
74.    Greater Florida Anesthesiologists, LLC    Florida
75.    Gynecologic Oncology Associates, Inc.    Florida
76.    Jacksonville Beaches Anesthesia Associates, Inc.    Florida
77.    Jupiter Anesthesia Associates, L.L.C.    Florida
78.    Jupiter Healthcare, LLC    Florida
79.    Kenwood NSC, LLC    Tennessee
80.    Long Beach NSC, LLC    Tennessee
81.    Medi-Bill of North Florida, Inc.    Florida
82.    Medical Information Management Solutions, LLC    Arizona
83.    NAC Properties, LLC    Georgia
84.    New Generations Babee Bag, Inc.    Florida
85.    North Florida Anesthesia Consultants, Inc.    Florida


86.    North Florida Perinatal Associates, Inc.    Florida
87.    NSC RBO East, LLC    Tennessee
88.    NSC West Palm, LLC    Tennessee
89.    Parity Healthcare, Inc.    Florida
90.    Partners in Medical Billing, Inc.    Florida
91.    Physician Office Partners, Inc.    Kansas
92.    San Antonio NSC, LLC    Tennessee
93.    Sentinel Healthcare Services, LLC    Georgia
94.    Sheridan Anesthesia Services of Alabama, Inc.    Florida
95.    Sheridan Anesthesia Services of Louisiana, Inc.    Florida
96.    Sheridan Anesthesia Services of Virginia, Inc.    Florida
97.    Sheridan CADR Solutions, Inc.    Florida
98.    Sheridan Children’s Healthcare Services of Virginia, Inc.    Florida
99.    Sheridan Children’s Healthcare Services of Arizona, Inc.    Florida
100.    Sheridan Children’s Healthcare Services of Kentucky, Inc.    Florida
101.    Sheridan Children’s Healthcare Services of Louisiana, Inc.    Florida
102.    Sheridan Children’s Healthcare Services of New Mexico, Inc.    Florida
103.    Sheridan Children’s Healthcare Services of Ohio, Inc.    Florida
104.    Sheridan Children’s Healthcare Services, Inc.    Florida
105.    Sheridan Children’s Services of Alabama, Inc.    Florida
106.    Sheridan Clinical Research, Inc.    Florida
107.    Sheridan Emergency Physician Services of Missouri, Inc.    Florida
108.    Sheridan Emergency Physician Services of North Missouri, Inc.    Florida
109.    Sheridan Emergency Physician Services of South Florida, Inc.    Florida
110.    Sheridan Emergency Physician Services, Inc.    Florida
111.    Sheridan Healthcare of Louisiana, Inc.    Florida
112.    Sheridan Healthcare of Missouri, Inc.    Florida
113.    Sheridan Healthcare of Vermont, Inc.    Florida
114.    Sheridan Healthcare of Virginia, Inc.    Florida
115.    Sheridan Healthcare of West Virginia, Inc.    West Virginia
116.    Sheridan Healthcare, Inc.    Delaware
117.    Sheridan Healthcorp of California, Inc.    California
118.    Sheridan Healthcorp, Inc.    Florida
119.    Sheridan Healthy Hearing Services, Inc.    Florida
120.    Sheridan Holdings, Inc.    Delaware
121.    Sheridan Hospitalist Services of Florida, Inc.    Florida
122.    Sheridan InvestCo, LLC    Delaware
123.    Sheridan Leadership Academy, Inc.    Florida
124.    Sheridan Radiology Management Services, Inc.    Delaware
125.    Sheridan Radiology Services, Inc.    Delaware
126.    Sheridan ROP Services of Florida, Inc.    Florida
127.    Sheridan ROP Services of Virginia, Inc.    Florida
128.    Sheridan Scientific Intelligence, Inc.    Florida
129.    SHI II, LLC    Tennessee
130.    Southeast Perinatal Associates, Inc.    Florida


131.    St. Lucie Anesthesia Associates, LLC    Florida
132.    Sunbeam Asset LLC    Delaware
133.    Tampa Bay NSC, LLC    Tennessee
134.    Tennessee Valley Neonatology, Inc.    Florida
135.    Tiva Healthcare, Inc.    Florida
136.    Torrance NSC, LLC    Tennessee
137.    Towson NSC, LLC    Tennessee
138.    Twin Falls NSC, LLC    Tennessee
139.    Valley Anesthesiology Consultants, Inc.    Arizona
140.    Valley Clinical Research, Inc.    Florida
141.    Weston NSC, LLC    Tennessee
142.    Wilton NSC, LLC    Connecticut

Exhibit 4.17

SUPPLEMENTAL INDENTURE

Supplemental Indenture (this “ Supplemental Indenture ”), dated as of December 1, 2016, among AmSurg Corp. (the “ Issuer ”), AllegiantMD, Inc., a Florida corporation, Arizona Perinatal Care Centers, LLC, an Arizona limited liability company, Broad Midwest Anesthesia, LLC, a Missouri limited liability company, Doctors Billing Service, Inc., a California corporation, Medi-Bill of North Florida, Inc., a Florida corporation, North Florida Anesthesia Consultants, Inc., a Florida corporation, Sheridan CADR Solutions, Inc., a Florida corporation, Sheridan Hospitalist Services of Florida, Inc., a Florida corporation, Sheridan Leadership Academy, Inc., a Florida corporation, Sheridan Scientific Intelligence, Inc., a Florida corporation, Valley Clinical Research, Inc., a Florida corporation, and St. Lucie Anesthesia Associates, LLC, a Florida limited liability company (each, a “ Guaranteeing Subsidiary ” and collectively the “ Guaranteeing Subsidiaries ”), and U.S. Bank National Association, a national banking corporation (or its permitted successor), as trustee under the Indenture referred to below (the “ Trustee ”).

W I T N E S S E T H

WHEREAS, the Issuer and the Subsidiary Guarantors party thereto have heretofore executed and delivered to the Trustee an indenture (the “ Indenture ”), dated as of July 16, 2014, as heretofore amended, providing for the issuance of the Issuer’s 5.625% Senior Notes due 2022 (the “ Notes ”);

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture and a related Notation of Guarantee pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuer’s obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “ Subsidiary Guarantee ”); and

WHEREAS, pursuant to Sections 8.01 and 8.06 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuer, the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

1. Capitalized Terms . Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

2. Agreement to Guarantee . Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Subsidiary Guarantee on the terms and conditions set forth in the Indenture, including, without limitation, Article X of the Indenture.

3. No Recourse Against Others . Pursuant to Section 11.12 of the Indenture, no director, officer, employee, incorporator or stockholder of the Guaranteeing Subsidiaries shall have any liability for any obligations of such Guaranteeing Subsidiary under the Notes, the Indenture, the Subsidiary Guarantee or for any claim based on, in respect of, or by reason of, such obligations or their creation.


4. NEW YORK LAW TO GOVERN . THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

5. Counterparts . The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

6. Effect of Headings . The Section headings herein are for convenience only and shall not affect the construction hereof.

7. Trustee . The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the Issuer.

[SIGNATURE PAGE FOLLOWS]

 

2


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

 

NEW AMETHYST CORP.
By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Vice President, Secretary and Director
ALLEGIANTMD, INC.
ARIZONA PERINATAL CARE CENTERS, LLC
BROAD MIDWEST ANESTHESIA, LLC
DOCTORS BILLING SERVICE, INC.
MEDI-BILL OF NORTH FLORIDA, INC.
NORTH FLORIDA ANESTHESIA CONSULTANTS, INC.
SHERIDAN CADR SOLUTIONS, INC.
SHERIDAN HOSPITALIST SERVICES OF FLORIDA, INC.
SHERIDAN LEADERSHIP ACADEMY, INC.
SHERIDAN SCIENTIFIC INTELLIGENCE, INC.
VALLEY CLINICAL RESEARCH, INC.
ST. LUCIE ANESTHESIA ASSOCIATES, LLC
By:  

/s/ Jillian Marcus

Name:   Jillian Marcus
Title:   Vice President and Secretary

[Signatures continue on following page]


U.S. BANK NATIONAL ASSOCIATION,
AS TRUSTEE
By:  

/s/ Wally Jones

  Name:   Wally Jones
  Title:   Vice President

Exhibit 4.18

SUPPLEMENTAL INDENTURE

(Merger #1)

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture” ), dated as of December 1, 2016, among NEW AMETHYST CORP., a Delaware corporation (the “Successor Issuer” ), the subsidiaries listed on the signature pages hereto (each a “Subsidiary Guarantor” ), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States of America, as trustee (the “Trustee” ).

W I T N E S S E T H

WHEREAS, AmSurg Corp. (the “Predecessor Issuer” ), the Subsidiary Guarantors and the Trustee have heretofore entered into that certain Indenture dated as of July 16, 2014, as heretofore amended and supplemented prior to the date hereof (the “Original Indenture” ), governing the Predecessor Company’s 5.625% Senior Notes due 2022 (the “Notes” ); and

WHEREAS, on the date of this Supplemental Indenture, the Predecessor Issuer has merged with and into the Successor Issuer, with the Successor Issuer as the surviving entity (the “Merger” ); and

WHEREAS, pursuant to Section 5.01(a) of the Original Indenture, the Successor Issuer desires to enter into this Supplemental Indenture expressly assuming all of the Predecessor Issuer’s obligations under the Notes, the Original Indenture and the Registration Rights Agreement; and

WHEREAS, pursuant to Section 5.01(a)(iv) of the Original Indenture, each Subsidiary Guarantor desires to confirm in writing that its Subsidiary Guarantee shall apply to the Successor Issuer’s obligations under the Notes, the Indenture and the Registration Rights Agreement; and

WHEREAS, this Supplemental Indenture is permitted under Section 8.01(a)(ii) of the Original Indenture, without the consent of the holders of the Notes.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Successor Issuer, the Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

1. CAPITALIZED TERMS . Capitalized terms used herein without definition shall have the meanings assigned to them in the Original Indenture.

2. ASSUMPTION OF NOTES AND ORIGINAL INDENTURE . From and after the effective time of the Merger, the Successor Issuer hereby expressly assumes all of the Predecessor Issuer’s obligations under the Notes, the Original Indenture and the Registration Rights Agreement. (The Original Indenture, as amended and supplemented by this Supplemental Indenture, is hereinafter referred to as the “Indenture.” )


3. CONFIRMATION OF NOTE GUARANTEES . Each Subsidiary Guarantor, by its execution of this Supplemental Indenture, hereby confirms that its Note Guarantee shall apply to the obligations of the Successor Issuer in accordance with the Notes, the Indenture and the Registration Rights Agreement.

4. NO OTHER CHANGES . Except as amended and supplemented by this Supplemental Indenture, the Original Indenture shall continue in full force and effect.

5. NEW YORK LAW TO GOVERN . THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

6. COUNTERPARTS . The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

7. EFFECT OF HEADINGS . The Section headings herein are for convenience only and shall not affect the construction hereof.

8. THE TRUSTEE . The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Successor Issuer and the Subsidiary Guarantors.

(signature pages follow)

 

2


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

 

ISSUER COMPANY:
NEW AMETHYST CORP.
By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Vice President, Secretary and Director
SUBSIDIARY GUARANTORS:
AMSURG HOLDINGS, INC.
AMSURG ANESTHESIA MANAGEMENT SERVICES, LLC
AMSURG EC TOPEKA, INC.
AMSURG EC ST. THOMAS, INC.
AMSURG EC BEAUMONT, INC.
AMSURG KEC, INC.
AMSURG EC SANTA FE, INC.
AMSURG EC WASHINGTON, INC.
AMSURG TORRANCE, INC.
AMSURG ABILENE, INC.
AMSURG SUNCOAST, INC.
AMSURG LA JOLLA, INC.
AMSURG HILLMONT, INC.
AMSURG PALMETTO, INC.
AMSURG NORTHWEST FLORIDA, INC.
AMSURG OCALA, INC.
AMSURG MARYVILLE, INC.
AMSURG BURBANK, INC.
AMSURG MELBOURNE, INC.
AMSURG EL PASO, INC.
AMSURG CRYSTAL RIVER, INC.
AMSURG ABILENE EYE, INC.
AMSURG INGLEWOOD, INC.
AMSURG SAN ANTONIO TX, INC.
AMSURG SAN LUIS OBISPO CA, INC.
AMSURG TEMECULA CA, INC.
AMSURG ESCONDIDO CA, INC.
AMSURG SCRANTON PA, INC.
AMSURG ARCADIA CA, INC.
AMSURG MAIN LINE PA, LLC
AMSURG OAKLAND CA, INC.


Signatures - Continued

 

AMSURG LANCASTER PA, LLC
AMSURG POTTSVILLE PA, LLC
AMSURG GLENDORA CA, INC.
AMSURG KISSIMMEE FL, INC.
AMSURG ALTAMONTE SPRINGS FL, INC.
NSC RBO EAST, LLC
LONG BEACH NSC, LLC
TORRANCE NSC, LLC
DAVIS NSC, LLC
FULLERTON NSC, LLC
SAN ANTONIO NSC, LLC
AUSTIN NSC, LLC
TWIN FALLS NSC, LLC
KENWOOD NSC, LLC
TOWSON NSC, LLC
NSC WEST PALM, LLC
TAMPA BAY NSC, LLC
CORAL SPRINGS NSC, LLC
WESTON NSC, LLC
AMSURG COLTON CA, INC.
AMSURG FRESNO ENDOSCOPY, INC.
AMSURG TEMECULA II INC.
AMSURG FINANCE, INC.
SHI II, LLC
ASDH I, LLC
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Vice President, Secretary and Treasurer
AUSTIN NSC, LP
By:   Austin NSC, LLC, its general partner
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Vice President, Secretary and Treasurer


Signatures - Continued

 

WILTON NSC, LLC
By: AmSurg Holdings, Inc. as the managing member
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Vice President, Secretary and Treasurer


Signatures - Continued

 

ANESTHESIA AND PAIN MANAGEMENT SERVICES OF CALIFORNIA, INC.
ANESTHESIOLOGY OF JUPITER, P.A.
MEDICAL ANESTHESIA CONSULTANTS MEDICAL GROUP, INC.
NEW JERSEY HEALTHCARE SPECIALISTS, P.C.
NORTH TEXAS PERINATAL ASSOCIATES, P.A.
SHERIDAN ACQUISITION ASSOCIATES II, P.A.
SHERIDAN ACQUISITION ASSOCIATES, P.A.
SHERIDAN ANESTHESIA SERVICES OF MARYLAND, P.C.
SHERIDAN ANESTHESIA SERVICES OF MINNESOTA, P.C.
SHERIDAN CRITICAL CARE SERVICES, P.A.
SHERIDAN HEALTHCARE OF ARKANSAS, P.A.
SHERIDAN HEALTHCARE OF CONNECTICUT, P.C.
SHERIDAN HEALTHCARE OF MASSACHUSETTS, P.C.
SHERIDAN HEALTHCARE OF NORTH TEXAS, P.A.
SHERIDAN HEALTHCARE OF TEXAS, P.A.
TRI-COUNTY PAIN MANAGEMENT, P.A.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF INDIANA, P.C.
SHERIDAN ANESTHESIA SERVICES OF PENNSYLVANIA, P.C.
By  

/s/ Gilbert Drozdow

Name:   Gilbert Drozdow
Title:   President


Signatures - Continued

 

ALL WOMEN’S HEALTHCARE HOLDINGS, INC.
ALL WOMEN’S HEALTHCARE, INC.
ALL WOMEN’S HEALTHCARE OF DADE, INC.
ALL WOMEN’S HEALTHCARE OF SAWGRASS, INC.
ALL WOMEN’S HEALTHCARE OF WEST BROWARD, INC.
ALL WOMEN’S HEALTHCARE SERVICES, INC.
COMPREHENSIVE TELERADIOLOGY SOLUTIONS, INC.
DISCOVERY CLINICAL RESEARCH, INC.
FLORIDA UNITED RADIOLOGY, L.C.
GLOBAL SURGICAL PARTNERS, INC.
ICS RADIOLOGY, INC.
JUPITER IMAGING ASSOCIATES, INC.
RADIOLOGY ASSOCIATES OF HOLLYWOOD, INC.
SHERIDAN RADIOLOGY SERVICES, INC.
SHERIDAN RADIOLOGY MANAGEMENT SERVICES, INC.
SHERIDAN RADIOLOGY SERVICES OF CENTRAL FLORIDA, INC.
SHERIDAN RADIOLOGY SERVICES OF KENTUCKY, INC.
SHERIDAN RADIOLOGY SERVICES OF PINELLAS, INC.
SHERIDAN RADIOLOGY SERVICES OF SOUTH FLORIDA, INC.
FM HEALTHCARE SERVICES, INC.
FMO HEALTHCARE HOLDINGS, INC.
FO INVESTMENTS, INC.
FO INVESTMENTS II, INC.
FO INVESTMENTS III, INC.
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Vice President and Treasurer


Signatures - Continued

 

ANESTHESIOLOGISTS OF GREATER ORLANDO, INC.
ANESTHESIOLOGY ASSOCIATES OF TALLAHASSEE, INC.
BETHESDA ANESTHESIA ASSOCIATES, INC.
BOCA ANESTHESIA SERVICE, INC.
COMPREHENSIVE PAIN MEDICINE, INC.
DRS. ELLIS, ROJAS, ROSS & DEBS, INC.
FLAMINGO ANESTHESIA ASSOCIATES, INC.
GREATER FLORIDA ANESTHESIOLOGISTS, LLC
GYNECOLOGIC ONCOLOGY ASSOCIATES, INC.
INTERVENTIONAL REHABILITATION OF SOUTH FLORIDA, INC.
JACKSONVILLE BEACHES ANESTHESIA ASSOCIATES, INC.
JUPITER ANESTHESIA ASSOCIATES, L.L.C.
JUPITER HEALTHCARE, LLC
NEW GENERATIONS BABEE BAG, INC.
NORTH FLORIDA PERINATAL ASSOCIATES, INC.
PARITY HEALTHCARE, INC.
SHERIDAN ANESTHESIA SERVICES OF ALABAMA, INC.
SHERIDAN ANESTHESIA SERVICES OF LOUISIANA, INC.
SHERIDAN ANESTHESIA SERVICES OF OKLAHOMA, INC.
SHERIDAN ANESTHESIA SERVICES OF VIRGINIA, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF ARIZONA, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF LOUISIANA, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF NEW MEXICO, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF VIRGINIA, INC.
SHERIDAN CLINICAL RESEARCH, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES, INC.


Signatures - Continued

 

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF MISSOURI, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF NORTH MISSOURI, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH DADE, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH FLORIDA, INC.
SHERIDAN HEALTHCARE, INC.
SHERIDAN HEALTHCARE OF LOUISIANA, INC.
SHERIDAN HEALTHCARE OF MISSOURI, INC.
SHERIDAN HEALTHCARE OF VERMONT, INC.
SHERIDAN HEALTHCARE OF VIRGINIA, INC.
SHERIDAN HEALTHCARE OF WEST VIRGINIA, INC.
SHERIDAN HEALTHCORP, INC.
SHERIDAN HEALTHCORP OF CALIFORNIA, INC.
SHERIDAN HEALTHY HEARING SERVICES, INC.
SHERIDAN HOLDINGS, INC.
SHERIDAN INVESTCO, LLC
SOUTHEAST PERINATAL ASSOCIATES, INC. SUNBEAM ASSET, LLC
SUNBEAM INTERMEDIATE HOLDINGS, INC.
SUNBEAM PRIMARY HOLDINGS, INC.
TENNESSEE VALLEY NEONATOLOGY, INC.
TIVA HEALTHCARE, INC.
BAY AREA ANESTHESIA, L.L.C.
COASTAL ANESTHESIA STAFFING, LLC
COASTAL ANESTHESIOLOGY CONSULTANTS, LLC
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF OHIO, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF KENTUCKY, INC.
SHERIDAN ROP SERVICES OF VIRGINIA, INC.


Signatures - Continued

 

SHERIDAN CHILDREN’S SERVICES OF ALABAMA, INC.
MEDICAL INFORMATION MANAGEMENT SOLUTIONS, LLC
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Chief Executive Officer


Signatures - Continued

 

CHANDLER EMERGENCY MEDICAL GROUP, L.L.C. D/B/A PREMIER EMERGENCY MEDICAL SPECIALISTS
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Manager
PARTNERS IN MEDICAL BILLING, INC.
By:  

/s/ Jillian Marcus

Name:   Jillian Marcus
Title:   President
SHERIDAN ANESTHESIA SERVICES OF GEORGIA, P.C.
MEDICAL EMERGENCY CONSULTANTS OF CALIFORNIA, INC.
F&S APEX, INC.
F&S RADIOLOGY P.C.
FRANKLIN & SEIDELMANN, INC.
FSH RADIOLOGY, INC.
SHERIDAN ROP SERVICES OF FLORIDA, INC.
SENTINEL HEALTHCARE SERVICES, LLC
By:  

/s/ Jillian Marcus

Name:   Jillian Marcus
Title:   Vice President


Signatures - Continued

 

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF GEORGIA, LLC
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH CAROLINA, P.A.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF KANSAS, P.A.
By:  

/s/ Paul Anthony Andrulonis

Name:   Paul Anthony Andrulonis
Title:   President
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF COLORADO, P.C.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF SOUTH CAROLINA, P.A.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF NORTH CAROLINA, P.A.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF NEW JERSEY, P.C.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF TENNESSEE, P.C.
By:  

/s/ M. Richard Auerbach

Name:   M. Richard Auerbach
Title:   President
PHYSICIAN OFFICE PARTNERS, INC.
By:  

/s/ Robert Davey

Name:   Robert Davey
Title:   President
CORAL ANESTHESIA ASSOCIATES, INC.
PAIN PHYSICIANS OF CENTRAL FLORIDA, P.A.
By:  

/s/ Andrew Greenfield

Name:   Andrew Greenfield
Title:   President


Signatures - Continued

 

ORANGE ANESTHESIA ASSOCIATES, INC.
By:  

/s/ Andrew Guttman

Name:   Andrew Guttman
Title:   President


Signatures - Continued

 

SHERIDAN ACQUISITION ASSOCIATES OF GEORGIA, P.C.
NORTHSIDE ANESTHESIOLOGY CONSULTANTS, L.L.C.
By:  

/s/ Carey Weiss

Name:   Carey Weiss
Title:   President


Signatures - Continued

 

NAC PROPERTIES, LLC
VALLEY ANESTHESIOLOGY CONSULTANTS, INC.
By:  

/s/ Robert Coward

Name:   Robert Coward
Title:   President


Signatures - Continued

 

TRUSTEE:
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
By:  

/s/ Wally Jones

Name:   Wally Jones
Title:   Vice President

Exhibit 4.19

SUPPLEMENTAL INDENTURE

(Merger #2)

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture” ), dated as of December 1, 2016, among NEW AMETHYST CORP., a Delaware corporation (the “Successor Issuer” ), the subsidiaries listed on the signature pages hereto as “Existing Subsidiary Guarantors” (the “Existing Subsidiary Guarantors” ), the subsidiaries listed on the signature pages hereto as the “New Envision Subsidiary Guarantors” (the “ New Envision Subsidiary Guarantors ” and, with the Existing Subsidiary Guarantors, the “ Subsidiary Guarantors ”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States of America, as trustee (the “Trustee” ).

W I T N E S S E T H

WHEREAS, AmSurg Corp. (the “Predecessor Issuer” ), the Existing Subsidiary Guarantors and the Trustee have heretofore entered into that certain Indenture dated as of July 16, 2014, as heretofore amended and supplemented prior to the date hereof (the “Original Indenture” ), governing the Predecessor Company’s 5.625% Senior Notes due 2022 (the “Notes” ); and

WHEREAS, on the date hereof and prior to the execution of this Supplemental Indenture, the Predecessor Issuer merged with and into the Successor Issuer, with the Successor Issuer as the surviving entity (“ Merger #1 ”); and

WHEREAS, pursuant to Section 5.01(a) of the Original Indenture, the Successor Issuer, the Existing Subsidiary Guarantors and the Trustee entered into a Supplemental Indenture (Merger #1) (the “ Merger #1 Supplemental Indenture ” and the Original Indenture, as supplemented by the Merger #1 Supplemental Indenture, the “ Existing Indenture ”) pursuant to which the Successor Issuer expressly assumed all of the Predecessor Issuer’s obligations under the Notes, the Original Indenture and the Registration Rights Agreement, and each of the Existing Subsidiary Guarantors confirmed in writing that its Subsidiary Guarantee applies to the Successor Issuer’s obligations under the Notes, the Indenture and the Registration Rights Agreement; and

WHEREAS, on the date hereof following the execution of the Merger #1 Supplemental Indenture, Envision Healthcare Holdings, Inc., a Delaware corporation (“ Envision Holdings ”) merged with and into the Successor Issuer, with the Successor Issuer as the surviving corporation (“ Merger #2 ”); and

WHEREAS, Merger #2 complied with the requirements of Section 5.01 of the Existing Indenture; and

WHEREAS, Section 4.11 of the Existing Indenture requires, as a result of Merger #2, that each New Envision Subsidiary Guarantor execute and deliver to the Trustee a supplemental indenture and a related Notation of Guarantee pursuant to which such New Envision Subsidiary Guarantor unconditionally guarantees all of the Successor Issuer’s obligations under the Notes, the Existing Indenture and the Registration Rights Agreement on the terms and conditions set forth herein (each, a “ Subsidiary Guarantee ”); and


WHEREAS, Section 5.01(a)(iv) of the Existing Indenture requires that, as a result of Merger #2, each Existing Subsidiary Guarantor confirm in writing that its Subsidiary Guarantee shall apply to the Successor Issuer’s obligations under the Notes, the Existing Indenture and the Registration Rights Agreement;

WHEREAS, this Supplemental Indenture is permitted under Section 8.01(a)(ii) of the Existing Indenture, without the consent of the holders of the Notes.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Successor Issuer, the Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

1. CAPITALIZED TERMS . Capitalized terms used herein without definition shall have the meanings assigned to them in the Existing Indenture. (The Existing Indenture, as amended and supplemented by this Supplemental Indenture, is hereinafter referred to as the “Indenture.” )

2. AGREEMENT TO GUARANTEE . Each New Envision Subsidiary Guarantor, by its execution of this Supplemental Indenture, hereby agrees to provide an unconditional Subsidiary Guarantee on the terms and conditions set forth in the Indenture, including, without limitation, Article X of the Indenture.

3. CONFIRMATION OF NOTE GUARANTEES . Each Existing Subsidiary Guarantor, by its execution of this Supplemental Indenture, hereby confirms that its Note Guarantee shall apply to the obligations of the Successor Issuer in accordance with the Notes, the Indenture and the Registration Rights Agreement.

4. NO OTHER CHANGES . Except as amended and supplemented by this Supplemental Indenture, the Original Indenture shall continue in full force and effect.

5. NEW YORK LAW TO GOVERN . THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

6. COUNTERPARTS . The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

7. EFFECT OF HEADINGS . The Section headings herein are for convenience only and shall not affect the construction hereof.

 

2


8. THE TRUSTEE . The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Successor Issuer and the Subsidiary Guarantors.

(signature pages follow)

 

3


IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

 

ISSUER COMPANY:
NEW AMETHYST CORP.
By:  

/s/ Claire M. Gulmi

  Name:   Claire M. Gulmi
  Title:   Vice President, Secretary and Director
EXISTING SUBSIDIARY GUARANTORS:
AMSURG HOLDINGS, INC.
AMSURG ANESTHESIA MANAGEMENT SERVICES, LLC
AMSURG EC TOPEKA, INC.
AMSURG EC ST. THOMAS, INC.
AMSURG EC BEAUMONT, INC.
AMSURG KEC, INC.
AMSURG EC SANTA FE, INC.
AMSURG EC WASHINGTON, INC.
AMSURG TORRANCE, INC.
AMSURG ABILENE, INC.
AMSURG SUNCOAST, INC.
AMSURG LA JOLLA, INC.
AMSURG HILLMONT, INC.
AMSURG PALMETTO, INC.
AMSURG NORTHWEST FLORIDA, INC.
AMSURG OCALA, INC.
AMSURG MARYVILLE, INC.
AMSURG BURBANK, INC.
AMSURG MELBOURNE, INC.
AMSURG EL PASO, INC.
AMSURG CRYSTAL RIVER, INC.
AMSURG ABILENE EYE, INC.
AMSURG INGLEWOOD, INC.
AMSURG SAN ANTONIO TX, INC.
AMSURG SAN LUIS OBISPO CA, INC.
AMSURG TEMECULA CA, INC.
AMSURG ESCONDIDO CA, INC.
AMSURG SCRANTON PA, INC.
AMSURG ARCADIA CA, INC.
AMSURG MAIN LINE PA, LLC


Signatures - Continued

 

AMSURG OAKLAND CA, INC.
AMSURG LANCASTER PA, LLC
AMSURG POTTSVILLE PA, LLC
AMSURG GLENDORA CA, INC.
AMSURG KISSIMMEE FL, INC.
AMSURG ALTAMONTE SPRINGS FL, INC.
NSC RBO EAST, LLC
LONG BEACH NSC, LLC
TORRANCE NSC, LLC
DAVIS NSC, LLC
FULLERTON NSC, LLC
SAN ANTONIO NSC, LLC
AUSTIN NSC, LLC
TWIN FALLS NSC, LLC
KENWOOD NSC, LLC
TOWSON NSC, LLC
NSC WEST PALM, LLC
TAMPA BAY NSC, LLC
CORAL SPRINGS NSC, LLC
WESTON NSC, LLC
AMSURG COLTON CA, INC.
AMSURG FRESNO ENDOSCOPY, INC.
AMSURG TEMECULA II INC.
AMSURG FINANCE, INC.
SHI II, LLC
ASDH I, LLC
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Vice President, Secretary and Treasurer
AUSTIN NSC, LP
By: Austin NSC, LLC, its general partner
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Vice President, Secretary and Treasurer


Signatures - Continued

 

WILTON NSC, LLC
By: AmSurg Holdings, Inc. as the managing member
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Vice President, Secretary and Treasurer


Signatures - Continued

 

ANESTHESIA AND PAIN MANAGEMENT SERVICES OF CALIFORNIA, INC.
ANESTHESIOLOGY OF JUPITER, P.A.
MEDICAL ANESTHESIA CONSULTANTS MEDICAL GROUP, INC.
NEW JERSEY HEALTHCARE SPECIALISTS, P.C.
NORTH TEXAS PERINATAL ASSOCIATES, P.A.
SHERIDAN ACQUISITION ASSOCIATES II, P.A.
SHERIDAN ACQUISITION ASSOCIATES, P.A.
SHERIDAN ANESTHESIA SERVICES OF MARYLAND, P.C.
SHERIDAN ANESTHESIA SERVICES OF MINNESOTA, P.C.
SHERIDAN CRITICAL CARE SERVICES, P.A.
SHERIDAN HEALTHCARE OF ARKANSAS, P.A.
SHERIDAN HEALTHCARE OF CONNECTICUT, P.C.
SHERIDAN HEALTHCARE OF MASSACHUSETTS, P.C.
SHERIDAN HEALTHCARE OF NORTH TEXAS, P.A.
SHERIDAN HEALTHCARE OF TEXAS, P.A.
TRI-COUNTY PAIN MANAGEMENT, P.A.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF INDIANA, P.C.
SHERIDAN ANESTHESIA SERVICES OF PENNSYLVANIA, P.C.
By:  

/s/ Gilbert Drozdow

Name:   Gilbert Drozdow
Title:   President


Signatures - Continued

 

ALL WOMEN’S HEALTHCARE HOLDINGS, INC.
ALL WOMEN’S HEALTHCARE, INC.
ALL WOMEN’S HEALTHCARE OF DADE, INC.
ALL WOMEN’S HEALTHCARE OF SAWGRASS, INC.
ALL WOMEN’S HEALTHCARE OF WEST BROWARD, INC.
ALL WOMEN’S HEALTHCARE SERVICES, INC.
COMPREHENSIVE TELERADIOLOGY SOLUTIONS, INC.
DISCOVERY CLINICAL RESEARCH, INC.
FLORIDA UNITED RADIOLOGY, L.C.
GLOBAL SURGICAL PARTNERS, INC.
ICS RADIOLOGY, INC.
JUPITER IMAGING ASSOCIATES, INC.
RADIOLOGY ASSOCIATES OF HOLLYWOOD, INC.
SHERIDAN RADIOLOGY SERVICES, INC.
SHERIDAN RADIOLOGY MANAGEMENT SERVICES, INC.
SHERIDAN RADIOLOGY SERVICES OF CENTRAL FLORIDA, INC.
SHERIDAN RADIOLOGY SERVICES OF KENTUCKY, INC.
SHERIDAN RADIOLOGY SERVICES OF PINELLAS, INC.
SHERIDAN RADIOLOGY SERVICES OF SOUTH FLORIDA, INC.
FM HEALTHCARE SERVICES, INC.
FMO HEALTHCARE HOLDINGS, INC.
FO INVESTMENTS, INC.
FO INVESTMENTS II, INC.
FO INVESTMENTS III, INC.
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Vice President and Treasurer


Signatures - Continued

 

ANESTHESIOLOGISTS OF GREATER ORLANDO, INC.
ANESTHESIOLOGY ASSOCIATES OF TALLAHASSEE, INC.
BETHESDA ANESTHESIA ASSOCIATES, INC.
BOCA ANESTHESIA SERVICE, INC.
COMPREHENSIVE PAIN MEDICINE, INC.
DRS. ELLIS, ROJAS, ROSS & DEBS, INC.
FLAMINGO ANESTHESIA ASSOCIATES, INC.
GREATER FLORIDA ANESTHESIOLOGISTS, LLC
GYNECOLOGIC ONCOLOGY ASSOCIATES, INC.
INTERVENTIONAL REHABILITATION OF SOUTH FLORIDA, INC.
JACKSONVILLE BEACHES ANESTHESIA ASSOCIATES, INC.
JUPITER ANESTHESIA ASSOCIATES, L.L.C.
JUPITER HEALTHCARE, LLC
NEW GENERATIONS BABEE BAG, INC.
NORTH FLORIDA PERINATAL ASSOCIATES, INC.
PARITY HEALTHCARE, INC.
SHERIDAN ANESTHESIA SERVICES OF ALABAMA, INC.
SHERIDAN ANESTHESIA SERVICES OF LOUISIANA, INC.
SHERIDAN ANESTHESIA SERVICES OF OKLAHOMA, INC.
SHERIDAN ANESTHESIA SERVICES OF VIRGINIA, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF ARIZONA, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF LOUISIANA, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF NEW MEXICO, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF VIRGINIA, INC.
SHERIDAN CLINICAL RESEARCH, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES, INC.


Signatures - Continued

 

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF MISSOURI, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF NORTH MISSOURI, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH DADE, INC.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH FLORIDA, INC.
SHERIDAN HEALTHCARE, INC.
SHERIDAN HEALTHCARE OF LOUISIANA, INC.
SHERIDAN HEALTHCARE OF MISSOURI, INC.
SHERIDAN HEALTHCARE OF VERMONT, INC.
SHERIDAN HEALTHCARE OF VIRGINIA, INC.
SHERIDAN HEALTHCARE OF WEST VIRGINIA, INC.
SHERIDAN HEALTHCORP, INC.
SHERIDAN HEALTHCORP OF CALIFORNIA, INC.
SHERIDAN HEALTHY HEARING SERVICES, INC.
SHERIDAN HOLDINGS, INC.
SHERIDAN INVESTCO, LLC
SOUTHEAST PERINATAL ASSOCIATES, INC. SUNBEAM ASSET, LLC
SUNBEAM INTERMEDIATE HOLDINGS, INC.
SUNBEAM PRIMARY HOLDINGS, INC.
TENNESSEE VALLEY NEONATOLOGY, INC.
TIVA HEALTHCARE, INC.
BAY AREA ANESTHESIA, L.L.C.
COASTAL ANESTHESIA STAFFING, LLC
COASTAL ANESTHESIOLOGY CONSULTANTS, LLC
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF OHIO, INC.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF KENTUCKY, INC.
SHERIDAN ROP SERVICES OF VIRGINIA, INC.


Signatures - Continued

 

SHERIDAN CHILDREN’S SERVICES OF ALABAMA, INC.
MEDICAL INFORMATION MANAGEMENT SOLUTIONS, LLC
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Chief Executive Officer


Signatures - Continued

 

CHANDLER EMERGENCY MEDICAL GROUP, L.L.C. D/B/A PREMIER EMERGENCY MEDICAL SPECIALISTS
By:  

/s/ Claire M. Gulmi

Name:   Claire M. Gulmi
Title:   Manager
PARTNERS IN MEDICAL BILLING, INC.
By:  

/s/ Jillian Marcus

Name:   Jillian Marcus
Title:   President
SHERIDAN ANESTHESIA SERVICES OF GEORGIA, P.C.
MEDICAL EMERGENCY CONSULTANTS OF CALIFORNIA, INC.
F&S APEX, INC.
F&S RADIOLOGY P.C.
FRANKLIN & SEIDELMANN, INC.
FSH RADIOLOGY, INC.
SHERIDAN ROP SERVICES OF FLORIDA, INC.
SENTINEL HEALTHCARE SERVICES, LLC
By:  

/s/ Jillian Marcus

Name:   Jillian Marcus
Title:   Vice President


Signatures - Continued

 

SHERIDAN EMERGENCY PHYSICIAN SERVICES OF GEORGIA, LLC
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF SOUTH CAROLINA, P.A.
SHERIDAN EMERGENCY PHYSICIAN SERVICES OF KANSAS, P.A.
By:  

/s/ Paul Anthony Andrulonis

Name:   Paul Anthony Andrulonis
Title:   President
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF COLORADO, P.C.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF SOUTH CAROLINA, P.A.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF NORTH CAROLINA, P.A.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF NEW JERSEY, P.C.
SHERIDAN CHILDREN’S HEALTHCARE SERVICES OF TENNESSEE, P.C.
By:  

/s/ M. Richard Auerbach

Name:   M. Richard Auerbach
Title:   President
PHYSICIAN OFFICE PARTNERS, INC.
By:  

/s/ Robert Davey

Name:   Robert Davey
Title:   President
CORAL ANESTHESIA ASSOCIATES, INC.
PAIN PHYSICIANS OF CENTRAL FLORIDA, P.A.
By:  

/s/ Andrew Greenfield

Name:   Andrew Greenfield
Title:   President


Signatures - Continued

 

ORANGE ANESTHESIA ASSOCIATES, INC.
By:  

/s/ Andrew Guttman

Name:   Andrew Guttman
Title:   President


Signatures - Continued

 

SHERIDAN ACQUISITION ASSOCIATES OF GEORGIA, P.C.
NORTHSIDE ANESTHESIOLOGY CONSULTANTS, L.L.C.
By:  

/s/ Carey Weiss

Name:   Carey Weiss
Title:   President


NAC PROPERTIES, LLC
VALLEY ANESTHESIOLOGY CONSULTANTS, INC.
By:  

/s/ Robert Coward

Name:   Robert Coward
Title:   President

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS:
CLINICAL PARTNERS MANAGEMENT COMPANY, LLC
NORTHWOOD ANESTHESIA ASSOCIATES, L.L.C.
  By:  

/s/ William A. Sanger

    Name:   William A. Sanger
    Title:   Manager

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
A1 LEASING, INC.
ABBOTT AMBULANCE, INC.
ACCENT HOME HEALTH CARE INC.
ADAM TRANSPORTATION SERVICE, INC.
AFFILION, INC.
AIR AMBULANCE SPECIALISTS, INC.
AMBULANCE ACQUISITION, INC.
AMERICAN EMERGENCY PHYSICIANS MANAGEMENT, INC.
AMERICAN INVESTMENT ENTERPRISES, INC.
AMERICAN MEDICAL PATHWAYS, INC.
AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC.
AMERICAN MEDICAL RESPONSE HOLDINGS, INC.
AMERICAN MEDICAL RESPONSE MANAGEMENT, INC.
AMERICAN MEDICAL RESPONSE MID-ATLANTIC, INC.
AMERICAN MEDICAL RESPONSE NORTHWEST, INC.
AMERICAN MEDICAL RESPONSE OF COLORADO, INC.
AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INCORPORATED
AMERICAN MEDICAL RESPONSE OF GEORGIA, INC.
AMERICAN MEDICAL RESPONSE OF ILLINOIS, INC.
AMERICAN MEDICAL RESPONSE OF INLAND EMPIRE
AMERICAN MEDICAL RESPONSE OF MASSACHUSETTS, INC.
AMERICAN MEDICAL RESPONSE OF NORTH CAROLINA, INC.
AMERICAN MEDICAL RESPONSE OF OKLAHOMA, INC.
By:  

/s/ Craig A. Wilson

Name:   Craig A. Wilson
Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
AMERICAN MEDICAL RESPONSE OF SOUTH CAROLINA, INC.
AMERICAN MEDICAL RESPONSE OF SOUTHERN CALIFORNIA
AMERICAN MEDICAL RESPONSE OF TENNESSEE, INC.
AMERICAN MEDICAL RESPONSE OF TEXAS, INC.
AMERICAN MEDICAL RESPONSE WEST
AMERICAN MEDICAL RESPONSE, INC.
AMR BAY STATE, LLC
AMR HOLDCO, INC.
AMR OF CENTRAL TEXAS I, LLC
AMR OF CENTRAL TEXAS II, LLC
APH LABORATORY SERVICES, INC.
ARIZONA EMS HOLDINGS, INC.
ASSOCIATED AMBULANCE SERVICE, INC.
ATLANTIC AMBULANCE SERVICES ACQUISITION, INC.
ATLANTIC/KEY WEST AMBULANCE, INC.
ATLANTIC/PALM BEACH AMBULANCE, INC.
BEACON TRANSPORTATION, INC.
BESTPRACTICES, INC.
BLYTHE AMBULANCE SERVICE
BOWERS COMPANIES, INC.
BROWARD AMBULANCE, INC.
COMMUNITY AUTO AND FLEET SERVICES L.L.C.
COMMUNITY EMS, INC.
COMTRANS AMBULANCE SERVICE, INC.
COMTRANS, INC.
CORNING AMBULANCE SERVICE INC.
DESERT VALLEY MEDICAL TRANSPORT, INC.
DONLOCK, LTD.
By:  

/s/ Craig A. Wilson

Name:   Craig A. Wilson
Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
E.M.S. VENTURES, INC.
EASTERN AMBULANCE SERVICE, INC.
EASTERN PARAMEDICS, INC.
EHR MANAGEMENT CO.
EMCARE ANESTHESIA PROVIDERS, INC.
EMCARE HOLDCO, INC.
EMCARE HOLDINGS INC.
EMCARE OF CALIFORNIA, INC.
EMCARE PHYSICIAN PROVIDERS, INC.
EMCARE PHYSICIAN SERVICES, INC.
EMCARE, INC.
EMERGENCY MEDICAL SERVICES LP CORPORATION
EMERGENCY MEDICAL TRANSPORT, INC.
EMERGENCY MEDICAL TRANSPORTATION, INC.
EMERGENCY MEDICINE EDUCATION SYSTEMS, INC.
EMS VENTURES OF SOUTH CAROLINA, INC.
FIVE COUNTIES AMBULANCE SERVICE, INC.
FLORIDA EMERGENCY PARTNERS, INC.
FOUNTAIN AMBULANCE SERVICE, INC.
GILA HOLDCO LLC
GOLD COAST AMBULANCE SERVICE
GOLD CROSS AMBULANCE SERVICE OF PA., INC.
GOLD CROSS AMBULANCE SERVICES, INC.
GRACE BEHAVIORAL HEALTH, L.L.C.
GREATER PINELLAS TRANSPORTATION MANAGEMENT SERVICES, INC.
GUARDIAN HEALTH CARE, INC.
GUARDIAN HEALTHCARE GROUP, INC.
GUARDIAN HEALTHCARE HOLDINGS, INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
HANK’S ACQUISITION CORP.
HEALTH PRIORITY HOME CARE, INC.
HEALTHCARE ADMINISTRATIVE SERVICES, INC.
HEMET VALLEY AMBULANCE SERVICE, INC.
HERREN ENTERPRISES, INC.
HOLIDAY ACQUISITION COMPANY, INC.
INTERNATIONAL LIFE SUPPORT, INC.
JLM HEALTHCARE, INC.
KMAC, INC.
KUTZ AMBULANCE SERVICE, INC.
LASALLE AMBULANCE INC.
LIFE LINE AMBULANCE SERVICE, INC.
LIFECARE AMBULANCE SERVICE, INC.
LIFEFLEET SOUTHEAST, INC.
MAINSTAY SOLUTIONS, LLC
MARLBORO HUDSON AMBULANCE & WHEELCHAIR SERVICE, INC.
MEDEVAC MEDICAL RESPONSE, INC.
MEDEVAC MIDAMERICA, INC.
MEDIC ONE AMBULANCE SERVICES, INC.
MEDIC ONE OF COBB, INC.
MEDICAL EMERGENCY DEVICES AND SERVICES (MEDS), INC.
MEDI-CAR AMBULANCE SERVICE, INC.
MEDI-CAR SYSTEMS, INC.
MEDICS AMBULANCE SERVICE (DADE), INC.
MEDICS AMBULANCE SERVICE, INC.
MEDICS AMBULANCE, INC.
MEDICS EMERGENCY SERVICES OF PALM BEACH COUNTY, INC.
MEDICS SUBSCRIPTION SERVICES, INC.
MEDICS TRANSPORT SERVICES, INC.
MEDICWEST AMBULANCE, INC.
MEDICWEST HOLDINGS, INC.
MEDLIFE EMERGENCY MEDICAL SERVICE, INC.
MEDSTAT EMS, INC.
MERCURY AMBULANCE SERVICE, INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
MERCY AMBULANCE OF EVANSVILLE, INC.
MERCY LIFE CARE
MERCY, INC.
METRO AMBULANCE SERVICE (RURAL), INC.
METRO AMBULANCE SERVICE, INC.
METRO AMBULANCE SERVICES, INC.
METRO CARE CORP.
METROPOLITAN AMBULANCE SERVICE
MIDWEST AMBULANCE MANAGEMENT COMPANY
MOBILE MEDIC AMBULANCE SERVICE, INC.
NATIONAL AMBULANCE & OXYGEN SERVICE, INC.
NEVADA RED ROCK AMBULANCE, INC.
NEVADA RED ROCK HOLDINGS, INC.
NORTH MISS. AMBULANCE SERVICE, INC.
OHERBST, INC.
PACIFIC AMBULANCE, INC.
PARAMED, INC.
PARK AMBULANCE SERVICE INC.
PHYSICIAN ACCOUNT MANAGEMENT, INC.
PHYSICIANS & SURGEONS AMBULANCE SERVICE, INC.
PROFESSIONAL MEDICAL TRANSPORT, INC.
PROVIDER ACCOUNT MANAGEMENT, INC.
PUCKETT AMBULANCE SERVICE, INC.
R/M ARIZONA HOLDINGS, INC.
R/M MANAGEMENT CO., INC.
R/M OF TENNESSEE G.P., INC.
R/M OF TENNESSEE L.P., INC.
RADIOLOGY STAFFING SOLUTIONS, INC.
RADSTAFFING MANAGEMENT SOLUTIONS, INC.
RANDLE EASTERN AMBULANCE SERVICE, INC.
REIMBURSEMENT TECHNOLOGIES, INC.
RIVER MEDICAL INCORPORATED
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
RURAL/METRO (DELAWARE), INC.
RURAL/METRO CORPORATION
RURAL/METRO CORPORATION
RURAL/METRO CORPORATION OF FLORIDA
RURAL/METRO CORPORATION OF TENNESSEE
RURAL/METRO FIRE DEPT., INC.
RURAL/METRO OF BREWERTON, INC.
RURAL/METRO OF CALIFORNIA, INC.
RURAL/METRO OF CENTRAL ALABAMA, INC.
RURAL/METRO OF CENTRAL COLORADO, INC.
RURAL/METRO OF CENTRAL OHIO, INC.
RURAL/METRO OF GREATER SEATTLE, INC.
RURAL/METRO OF NEW YORK, INC.
RURAL/METRO OF NORTHERN CALIFORNIA, INC.
RURAL/METRO OF NORTHERN OHIO, INC.
RURAL/METRO OF OHIO, INC.
RURAL/METRO OF OREGON, INC.
RURAL/METRO OF ROCHESTER, INC.
RURAL/METRO OF SAN DIEGO, INC.
RURAL/METRO OF SOUTHERN CALIFORNIA, INC.
RURAL/METRO OF SOUTHERN OHIO, INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
S. FISHER & S. THOMAS INC.
SEMINOLE COUNTY AMBULANCE, INC.
SIOUX FALLS AMBULANCE, INC.
SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC.
SOUTHWEST AMBULANCE OF CASA GRANDE, INC.
SOUTHWEST AMBULANCE OF NEW MEXICO, INC.
SOUTHWEST AMBULANCE OF SOUTHEASTERN ARIZONA, INC.
SOUTHWEST AMBULANCE OF TUCSON, INC.
SOUTHWEST GENERAL SERVICES, INC.
SPRINGS AMBULANCE SERVICE, INC.
SSAG, LLC
STAT HEALTHCARE, INC.
SUNRISE HANDICAP TRANSPORT CORP.
SW GENERAL, INC.
T.M.S. MANAGEMENT GROUP INC.
TEK AMBULANCE, INC.
THE AID AMBULANCE COMPANY, INC.
THE AID COMPANY, INC.
TIDEWATER AMBULANCE SERVICE, INC.
TKG, INC.
TOWNS AMBULANCE SERVICE, INC.
TRANSPORTATION MANAGEMENT SERVICES OF BREVARD, INC.
TROUP COUNTY EMERGENCY MEDICAL SERVICES, INC.
VALLEY FIRE SERVICE, INC.
VELITA SMITH HOME HEALTH, INC.
V.I.P. PROFESSIONAL SERVICES, INC.
VISTA STAFFING SOLUTIONS, INC.
VITAL ENTERPRISES, INC.
W&W LEASING COMPANY, INC.
WP ROCKET HOLDINGS INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
ACCESS 2 CARE, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Access 2 Care, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ACUTE MANAGEMENT, LLC
  By: HAWKEYE HOLDCO LLC, as Sole Member of Acute Management, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AGAPE HEALTH CARE AGENCY, LLC.
CARE CONNECTION OF CINCINNATI LLC
GEM CITY HOME CARE, LLC
GUARDIAN OHIO NEWCO, LLC
  By: GUARDIAN HEALTHCARE HOLDINGS, INC., as Sole Member of Agape Health Care Agency, LLC, Care Connection of Cincinnati LLC, Gem City Home Care, LLC and Guardian Ohio NewCo, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
ALPHA PHYSICIAN RESOURCES, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AMERICAN MEDICAL RESPONSE DELAWARE VALLEY, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AMERICAN MEDICAL RESPONSE HPPP, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response HPPP, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AMERICAN MEDICAL RESPONSE OF MARICOPA, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AMERICAN MEDICAL RESPONSE OF PIMA, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
AMR BROCKTON, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
APEX ACQUISITION LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
BRAVO REIMBURSEMENT SPECIALIST, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
CMORX, LLC
  By: EMCARE, INC., as Sole Member of CMORx, LLC
  By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary
ED SOLUTIONS, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
EDIMS, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMS MANAGEMENT LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMS OFFSHORE MEDICAL SERVICES, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMSC SERVICESCO, LLC
  By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary
EVERRAD, LLC
  By: TEMPLETON READINGS, LLC, as Sole Member of EverRad, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
EVOLUTION HEALTH LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EVOLUTION MOBILE IMAGING, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
HAWKEYE HOLDCO LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MEDASSOCIATES, LLC
  By: EMCARE, INC., as Sole Member of MedAssociates, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MISSION CARE OF ILLINOIS, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Illinois, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
MISSION CARE OF MISSOURI, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Missouri, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MISSION CARE SERVICES, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MSO NEWCO, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
PHOENIX PHYSICIANS, LLC
STREAMLINED MEDICAL SOLUTIONS LLC
  By: EMCARE, INC., as Sole Member of Phoenix Physicians, LLC and Streamlined Medical Solutions LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PINNACLE CONSULTANTS MID-ATLANTIC, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PROVEN HEALHCARE SOLUTIONS OF NEW JERSEY, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PROVIDACARE, L.L.C.
  By: AMERICAN MEDICAL PATHWAYS, INC., as Sole Member of ProvidaCare, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
QRX MEDICAL MANAGEMENT, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Senior Vice President and Secretary
RMC CORPORATE CENTER, L.L.C.
  By: RURAL/METRO CORPORATION, as Member of RMC Corporate Center, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO MID-SOUTH, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro Mid-South, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO OF INDIANA, L.P.
  By: THE AID AMBULANCE COMPANY, INC., as General Partner of Rural/Metro of Indiana, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
RURAL/METRO OF TENNESSEE, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro of Tennessee, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO OPERATING COMPANY, LLC
  By: RURAL/METRO CORPORATION, as Sole Member of Rural/Metro Operating Company, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SAN DIEGO MEDICAL SERVICES ENTERPRISE, LLC
  By: RURAL/METRO OF SOUTHERN CALIFORNIA, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
  By: RURAL/METRO OF SAN DIEGO, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
REGIONAL EMERGENCY SERVICES, L.P.
  By: FLORIDA EMERGENCY PARTNERS, INC., as General Partner of Regional Emergency Services, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ROSE RADIOLOGY, LLC
  By: SPOTLIGHT HOLDCO LLC, as Sole Member of Rose Radiology, LLC
  By: EMCARE, INC., as Sole Member of EmCare, Inc.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SEAWALL ACQUISITION, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SPOTLIGHT HOLDCO LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
SUN DEVIL ACQUISITION LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
TEMPLETON READINGS, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
WHITAKER PHYSICIANS SERVICES, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


NEW ENVISION SUBSIDIARY GUARANTORS (cont’d):
AMERICAN MEDICAL RESPONSE OF NEW YORK, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response of New York, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
METROCARE SERVICES – ABILENE, L.P.
  By: AMR OF CENTRAL TEXAS II, LLC, as General Partner of MetroCare Services – Abilene, L.P.
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of AMR of Central Texas II, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PATIENT ADVOCACY GROUP, LLC
  By: AMR HOLDCO, INC., as Sole Member of Patient Advocacy Group, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

Supplemental Indenture (Merger No. 2)


TRUSTEE:
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
By:  

/s/ Wally Jones

Name:   Wally Jones
Title:   Vice President

 

Supplemental Indenture (Merger No. 2)

Exhibit 10.8

Execution Version

SEVENTH AMENDMENT

SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “ Seventh Amendment ”), dated as of December 1, 2016 among Envision Healthcare Corporation (together with its successors in interest, the “ Borrower ”), the several banks and financial institutions parties hereto that constitute Tranche C Term Lenders (as further defined in Subsection 1(b)(i) hereof), the other Lenders party hereto, Deutsche Bank AG New York Branch (“ DBNY ”), as existing Administrative Agent (the “ Existing Administrative Agent ”) and existing collateral agent (the “ Existing Collateral Agent ”) and JPMorgan Chase Bank, N.A. (“JPMCB”), as Administrative Agent under the Restated Credit Agreement (as defined below) (the “ New Administrative Agent ”) and as Collateral Agent under the Restated Credit Agreement (as defined below) (the “ New Collateral Agent ”). Unless otherwise indicated, all capitalized terms used herein and not otherwise defined shall have the respective meanings provided to such terms in the Credit Agreement referred to below.

W I T N E S S E T H :

WHEREAS, the Borrower, the Lenders from time to time party thereto and the Administrative Agent are parties to a Credit Agreement, dated as of May 25, 2011 (as amended, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”);

WHEREAS, pursuant to the 2016 Merger Agreement, AmSurg Corp. (together with its successors in interest, “ AmSurg ”) and Holdings will combine in an all stock merger of equals;

WHEREAS, pursuant to and in accordance with Subsection 2.6 of the Credit Agreement, the Borrower has requested that Incremental Term Loan Commitments in an aggregate principal amount of $2,676,930,416.35 be made available to the Borrower, and the Tranche C Term Lenders and the Administrative Agent have agreed, upon the terms and subject to the conditions set forth herein, ( a ) that the Tranche C Term Lenders will make Incremental Term Loans in the form of the Tranche C Term Loans (as defined in Subsection 1(b)(i) hereof) and exchange Exchanged Term Loans (as defined in Subsection 1(b)(i) hereof) for Tranche C Term Loans, ( b ) that the proceeds of the Tranche C Term Loans will be used ( i ) to finance the 2016 Mergers and to pay fees, premiums and expenses incurred in connection with the 2016 Mergers and this Amendment, ( ii ) to repay in full all Loans (other than Exchanged Term Loans) outstanding under the Credit Agreement immediately prior to the Seventh Amendment Effective Date and to pay all accrued and unpaid interest thereon through the Seventh Amendment Effective Date (collectively, the “ Prepayment ”) and ( iii ) to finance the working capital, capital expenditures, business requirements, acquisitions and other general corporate purposes of the Borrower and its Restricted Subsidiaries and ( d ) to amend the Credit Agreement as provided herein without the consent or approval of any other Lender, as permitted by Subsections 2.6(d) and 11.1(d) thereof;

WHEREAS, certain Lenders holding Initial Term Loans and/or Tranche B Term Loans have elected, and the Borrower has agreed, to exchange (by exercising a cashless rollover option pursuant to Subsection 4.8 of the Credit Agreement) their Initial Term Loans and/or Tranche B Term Loans for Tranche C Term Loans;


WHEREAS, immediately following the effectiveness of the Incremental Credit Agreement Amendments (as defined in Section 4 hereof) and the Prepayment, the Tranche C Term Lenders will constitute all of the Lenders under the Credit Agreement, as amended hereby;

WHEREAS, immediately following the effectiveness of the Incremental Credit Agreement Amendments and the Prepayment, the Tranche C Term Lenders, then constituting all Lenders under the Credit Agreement, as amended hereby, the Existing Administrative Agent, the Existing Collateral Agent, the New Administrative Agent and the New Collateral Agent wish and agree to amend the Credit Agreement as set forth in Section Two below;

WHEREAS, the Borrower, certain of the Borrower’s subsidiaries and the Collateral Agent are party to a Guarantee and Collateral Agreement, dated as of May 25, 2011 (as amended, supplemented, waived or otherwise modified from time to time, the “ Guarantee and Collateral Agreement ”);

WHEREAS, immediately following the effectiveness of the Incremental Credit Agreement Amendments and the Prepayment, pursuant to Section 9.1 of the Guarantee and Collateral Agreement and Subsection 11.1(a) of the Credit Agreement, the New Collateral Agent, the Borrower, the Grantors (as defined therein) and the Lenders party hereto, constituting not less than the Required Lenders (determined immediately following the effectiveness of the Incremental Credit Agreement Amendments and the Prepayment) agree to make the amendments to the Guarantee and Collateral Agreement set forth in Section Three below; and

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION ONE - Incremental Credit Agreement Amendments . Subject to the satisfaction of the conditions set forth in Section Four hereof:

(a) The Tranche C Term Loans shall be deemed to be “Incremental Term Loans”, the Tranche C Term Lenders shall be deemed to be “Additional Lenders”, the Tranche C Term Loan Commitments shall be deemed to be “Incremental Term Loan Commitments” and this Seventh Amendment shall be deemed to be an “Incremental Commitment Amendment” and a “Loan Document”, in each case, for all purposes of the Credit Agreement and the other Loan Documents. The Borrower and the Administrative Agent hereby consent, pursuant to Subsections 11.6(b)(i) and  2.6(b) of the Credit Agreement, to the inclusion as an “Additional Lender” of each Tranche C Term Lender that is party to this Seventh Amendment that is not an Existing Term Lender, an Affiliate of an Existing Term Lender or an Approved Fund.

 

2


(b) Subsection 1.1 of the Credit Agreement is hereby amended as follows:

i. by adding the following new definitions, to appear in proper alphabetical order:

2016 Transactions ” ( i ) means, collectively, any or all of the following: ( i ) the entry into the indenture, dated as of December 1, 2016, among the Borrower and Wilmington Trust, National Association, entry into the purchase agreement, dated as of November 16, 2016, among the Borrower and the initial purchasers party thereto and the issuance of the senior unsecured notes on December 1, 2016, ( ii ) the entry into the Seventh Amendment and the Incurrence of the Term Loans, ( iii ) the entry into the third amendment to the Senior ABL Facility, ( iv ) the consummation of the 2016 Mergers ( vi ) the repayment, refinancing, defeasance and/or redemption of certain Indebtedness of each of Envision Healthcare Holdings, Inc. and its Subsidiaries and AmSurg in connection with the foregoing and ( vii ) all other transactions relating to any of the foregoing (including payment of fees and expenses related to any of the foregoing).

Exchanged Term Loans ”: as to any Existing Term Lender, the full principal amount of such Lender’s outstanding Initial Term Loans and/or Tranche B Term Loans (in each case, as indicated on such Existing Term Lender’s counterpart to the Seventh Amendment) or, if less, the amount notified to the Administrative Agent by JPMorgan Chase Bank, N.A. prior to the Seventh Amendment Effective Date.

Exchanging Lender ”: as defined in Subsection 2.1(d)(ii) .

Existing Term Lenders ”: those Lenders holding an Initial Term Loan and/or a Tranche B Term Loan immediately prior to the Seventh Amendment Effective Date.

New Tranche C Term Lenders ”: as defined in Subsection 2.1(d)(i) .

New Tranche C Term Loan Commitments ”: as defined in Subsection 2.1(d)(i) .

Seventh Amendment ”: the Seventh Amendment to Credit Agreement, dated as of the Seventh Amendment Effective Date, among the Borrower, the Tranche C Term Lenders, the Administrative Agent and the other parties thereto.

Seventh Amendment Effective Date ”: December 1, 2016.

Tranche C Lead Arrangers ”: as defined in the definition of “Lead Arrangers” in this Subsection 1.1.

Tranche C Repricing Transaction ”: the prepayment, refinancing, substitution or replacement of all or a portion of the Tranche C Term Loans (including, without limitation, as may be effected through any amendment, waiver or modification to this Agreement relating to the interest rate for, or weighted average yield of, the Tranche C Term Loans), ( a ) if the primary purpose of such prepayment, refinancing, substitution, replacement, amendment, waiver or modification is (as reasonably determined by the Borrower in good faith) to

 

3


refinance the Tranche C Term Loans at a lower “effective yield” (taking into account, among other factors, margin, upfront or similar fees or original issue discount shared with all providers of such financing, but excluding the effect of any arrangement, commitment, underwriting, structuring, syndication or other fees payable in connection therewith that are not shared with all providers of such financing, and without taking into account any fluctuations in the Adjusted LIBOR Rate, but including any LIBOR floor or similar floor that is higher than the then Adjusted LIBOR Rate), ( b ) if the prepayment, refinancing, substitution, replacement, amendment, waiver or modification is effectuated by the incurrence by the Borrower or any Restricted Subsidiary of new Indebtedness, such new Indebtedness is first lien secured term loan bank financing, and ( c ) if such prepayment, refinancing, substitution, replacement, amendment, waiver or modification results in such first lien secured term loan bank financing having an “effective yield” (as reasonably determined by the Administrative Agent, in consultation with the Borrower, consistent with generally accepted financial practices, after giving effect to, among other factors, margin, upfront or similar fees or original issue discount shared with all providers of such financing (calculated based on assumed four-year average life and without present value discount), but excluding the effect of any arrangement, commitment, underwriting, structuring, syndication or other fees payable in connection therewith that are not shared with all providers of such financing, and without taking into account any fluctuations in the Adjusted LIBOR Rate, but including any LIBOR floor or similar floor that is higher than the then applicable Adjusted LIBOR Rate) that is less than the “effective yield” (as reasonably determined by the Administrative Agent, in consultation with the Borrower, on the same basis) of the Tranche C Term Loans prior to being so prepaid, refinanced, substituted or replaced or subject to such amendment, waiver or modification to this Agreement.

Tranche C Term Lender ”: any Lender having a Tranche C Term Loan Commitment and/or a Tranche C Term Loan outstanding hereunder.

Tranche C Term Loan ”: the Term Loans made by the Lenders holding the Tranche C Term Loan Commitments to the Borrower (or holding Exchanged Term Loans) under Section 2 of the Seventh Amendment on the Seventh Amendment Effective Date.

Tranche C Term Loan Commitment ”: as to any Lender, its obligation to make Tranche C Term Loans to the Borrower pursuant to Subsection 2.1(d) in an aggregate amount not to exceed the amount set forth opposite such Lender’s name in Schedule A-2 under the heading “Tranche C Term Loan Commitment” or, in the case of any Lender that is an Assignee, the amount of the assigning Lender’s Tranche C Term Loan Commitment assigned to such Assignee pursuant to Subsection 11.6(b) (in each case as such amount may be adjusted from time to time as provided herein); collectively, as to all Lenders, the “ Tranche C Term Loan Commitments ”. The original aggregate amount of the Tranche C Term Loan Commitments on the Seventh Amendment Effective Date is $2,676,930,416.35.

 

4


Tranche C Term Loan Percentage ”: as to any Tranche C Term Lender at any time, the percentage which ( a ) such Lender’s Tranche C Term Loan Commitment then outstanding constitutes of ( b ) the sum of all of the Tranche C Term Loan Commitments then outstanding.

ii. by restating the definition of “Adjusted LIBOR Rate” as follows:

““ Adjusted LIBOR Rate ”: with respect to any Borrowing of Eurodollar Loans for any Interest Period, an interest rate per annum (rounded upward, if necessary, to the nearest 1/100th of 1.00%) determined by the Administrative Agent to be equal to the higher of ( a ) ( i ) the LIBOR Rate for such Borrowing of Eurodollar Loans in effect for such Interest Period divided by ( ii ) 1 minus the Statutory Reserves (if any) for such Borrowing of Eurodollar Loans for such Interest Period and ( b ) ( i ) in respect of the Initial Term Loans, 1.00%, ( ii ) in respect of the Tranche B-2 Term Loans, 1.00% and ( iii ) in respect of the Tranche C Term Loans, 0.75%.”

iii. by restating the definition of “Alternate Base Rate” as follows:

““ Alternate Base Rate ”: for any day, a fluctuating rate per annum (rounded upward, if necessary, to the nearest 1/100th of 1.00%) equal to the greatest of ( a ) the Base Rate in effect on such day, ( b ) the Federal Funds Effective Rate in effect on such day plus 0.50%, ( c ) the Adjusted LIBOR Rate for an Interest Period of one-month beginning on such day (or if such day is not a Business Day, on the immediately preceding Business Day) plus 1.00% and ( d ) ( i ) in respect of the Initial Term Loans, 2.00%, ( ii ) in respect of the Tranche B-2 Term Loans, 2.00% and ( iii ) in respect of the Tranche C Term Loans, 1.75%. If the Administrative Agent shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate or the Adjusted LIBOR Rate for any reason, including the inability or failure of the Administrative Agent to obtain sufficient quotations in accordance with the terms of the definition thereof, the Alternate Base Rate shall be determined without regard to clause (b) or (c) above, as the case may be, of the preceding sentence until the circumstances giving rise to such inability no longer exist. Any change in the Alternate Base Rate due to a change in the Base Rate, the Federal Funds Effective Rate or the Adjusted LIBOR Rate shall be effective on the effective date of such change in the Base Rate, the Federal Funds Effective Rate or the Adjusted LIBOR Rate, respectively.”

 

5


iv. by amending and restating the definition of “Applicable Margin” as follows:

““ Applicable Margin ”: in respect of ( I ) Initial Term Loans, a percentage per annum equal to ( a ) from the First Amendment Effective Date until the first Business Day that immediately follows the date on which a Compliance Certificate is delivered pursuant to Subsection 7.2(b) in respect of the first full fiscal quarter ending after the First Amendment Effective Date, 3.00% per annum for Eurodollar Loans, and 2.00% per annum for ABR Loans, and ( b ) thereafter, the applicable percentage per annum set forth below, as determined by reference to the Consolidated First-Lien Net Leverage Ratio, as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Subsection 7.2(b) :

Applicable Margin

 

Pricing Level

   Consolidated
First-Lien Net
Leverage Ratio
   Eurodollar Loans   ABR Loans

1

   <  2.50:1.00    3.00%   2.00%

2

   >  2.50:1.00    3.25%   2.25%

( II ) Tranche B-2 Term Loans, 3.50% per annum for Eurodollar Loans, and 2.50% per annum for ABR Loans; and

( III ) Tranche C Term Loans, 3.00% per annum for Eurodollar Loans, and 2.00% per annum for ABR Loans.

Notwithstanding the foregoing, in the event that the financial statements required to be delivered pursuant to Subsection 7.1(a) or 7.1(b) , as applicable, and the related Compliance Certificate required to be delivered pursuant to Subsection 7.2(b) , are not delivered when due, then:

(1) if such financial statements and Compliance Certificate are delivered after the date such financial statements and Compliance Certificate were required to be delivered (without giving effect to any applicable cure period) and the Applicable Margin in respect of the Initial Term Loans increases from that previously in effect as a result of the delivery of such financial statements, then the Applicable Margin in respect of the Initial Term Loans during the period from the date upon which such financial statements were required to be delivered (without giving effect to any applicable cure period) until the date upon which they actually are delivered shall, except as otherwise provided in clause (3) below, be the Applicable Margin as so increased;

(2) if such financial statements and Compliance Certificate are delivered after the date such financial statements and Compliance Certificate were required to be delivered and the Applicable Margin in respect of the Initial Term Loans decreases from that previously in effect as a result of the delivery of such financial statements, then such decrease in the Applicable Margin in respect of the Initial Term Loans shall not become applicable until the date upon which the financial statements and Compliance Certificate actually are delivered, and

 

6


(3) if such financial statements and Compliance Certificate are not delivered prior to the expiration of the applicable cure period, then, effective upon such expiration, for the period from the date upon which such financial statements and Compliance Certificate were required to be delivered (after the expiration of the applicable cure period) until two Business Days following the date upon which they actually are delivered, Pricing Level 2 shall apply in respect of the Initial Term Loans (it being understood that the foregoing shall not limit the rights of the Administrative Agent and the Lenders set forth in Section 9 ).”

v. by inserting the words “, Tranche C Term Loan Commitments” after the words “Additional Tranche B-2 Term Loan Commitments” appearing in the definition of “Borrowing”,

vi. by replacing the words “or Tranche B-2 Term Loan Commitment” appearing in clause (b) of the definition of “Conduit Lender” with the words “, Tranche B-2 Term Loan Commitment or Tranche C Term Loan Commitment”,

vii. by amending and restating the definition of “Facility” as follows:

““ Facility ”: each of ( a ) the Initial Term Loan Commitments and the Extensions of Credit made thereunder, ( b ) the Original Tranche B-2 Term Loan Commitments and the Extensions of Credit made thereunder, ( c ) the Additional Tranche B-2 Term Loan Commitments and the Extensions of Credit made thereunder, ( d ) the Tranche B-2 Term Loan Commitments and the Extensions of Credit made thereunder, ( e ) the Tranche C Term Loan Commitments and the Extensions of Credit made thereunder and any Tranche C Term Loans issued in exchange for Exchanged Term Loans and ( f ) any other committed facility hereunder and the Extensions of Credit made thereunder.”

viii. by amending and restating the definition of “Lead Arranger” as follows:

““ Lead Arrangers ”: in respect of ( I ) Initial Term Loans, Deutsche Bank Securities Inc., Barclays Capital, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley Senior Funding, Inc., RBC Capital Markets, and UBS Securities LLC, as Joint Lead Arrangers (collectively, the “ Original Lead Arrangers ”), ( II ) Original Tranche B-2 Term Loans, Barclays Bank PLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC, as Joint Lead Arrangers (collectively, the “ Tranche B-2 Lead Arrangers ”), ( III ) Additional Tranche B-2 Term Loans, Barclays Bank PLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC, as Joint Lead Arrangers (collectively, the “ Additional Tranche B-2 Lead Arrangers ”) and ( IV ) Tranche C Term Loans, JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wells Fargo

 

7


Securities, LLC and SunTrust Robinson Humphrey, Inc. (collectively, the “ Tranche C Lead Arrangers ”). For the avoidance of doubt, none of the Tranche B-2 Lead Arrangers, the Additional Tranche B-2 Lead Arrangers or the Tranche C Lead Arrangers shall constitute Lead Arrangers for the purposes of Subsections 6.1(b) and (e) .”

ix. by amending and restating the definition of “Loan” as follows:

““ Loan ”: each Initial Term Loan, Tranche B-2 Term Loan, Tranche C Term Loan, Incremental Loan and/or Extended Loan, as the context shall require; collectively, the “ Loans ”.”

x. by amending and restating the definition of “Maturity Date” as follows:

““ Maturity Date ”: in respect of ( I ) Initial Term Loans, May 25, 2018, ( II ) Tranche B-2 Term Loans, October 28, 2022, and ( III ) Tranche C Term Loans, December 1, 2023, as the context may require.”

xi. by amending and restating the definition of “Other Representatives” as follows:

““ Other Representatives ”: in respect of ( I ) Initial Term Loans, each of Deutsche Bank Securities Inc., Barclays Capital, Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley Senior Funding, Inc., RBC Capital Markets, and UBS Securities LLC, in their collective capacity as Joint Lead Arrangers, and Barclays Capital, Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley Senior Funding, Inc., RBC Capital Markets, UBS Securities LLC, Citigroup Global Markets Inc. and Natixis, in their collective capacity as Joint Bookmanagers, ( II ) Original Tranche B-2 Term Loans, each of Barclays Bank PLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC, in their collective capacity as Joint Bookrunners, each of Barclays Bank PLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC in their collective capacity as Joint Lead Arrangers, and Fifth Third Bank, UBS Securities LLC and Wells Fargo Securities, LLC, in their collective capacity as co-managers, ( III ) Additional Tranche B-2 Term Loans, each of Barclays Bank PLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC, in their collective capacity as Joint Bookrunners, each of Barclays Bank PLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC in their collective capacity as Joint Lead Arrangers, and Fifth Third Bank, UBS Securities LLC and Wells Fargo Securities, LLC, in their collective capacity as co-managers and ( IV ) Tranche C Term Loans, each of JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc., in their collective capacity as Joint Lead Arrangers and Deutsche Bank Securities Inc., BMO Capital Markets Corp. and RBC Capital Markets, in their collective capacity as co-managers.”

 

8


xii. by amending and restating the definition of “Term Loans” as follows:

““ Term Loans ”: the Initial Term Loans, Tranche B-2 Term Loans, Tranche C Term Loans, Incremental Term Loans and/or Extended Term Loans, as the context shall require.”

xiii. by amending and restating the definition of “Tranche” as follows:

““ Tranche ”: with respect to Term Loans or commitments, refers to whether such Term Loans or commitments are ( 1 ) Initial Term Loans, Original Initial Term Loan Commitments, ( 2 ) Original Tranche B-2 Term Loans or Original Tranche B-2 Term Loan Commitments, ( 3 ) Additional Tranche B-2 Term Loans or Additional Tranche B-2 Term Loan Commitments, ( 4 ) Tranche B-2 Term Loans or Tranche B-2 Term Loan Commitments, ( 5 ) Tranche C Term Loans or Tranche C Term Loan Commitments, ( 6 ) Incremental Loans or Incremental Commitments with the same terms and conditions made on the same day, or ( 7 ) Extended Term Loans (of the same Extension Series) (excluding the Additional Tranche B-2 Term Loans and Additional Tranche B-2 Term Loan Commitments); provided that, the 2013 Supplemental Term Loans shall be considered part of the Initial Term Loans to which such 2013 Supplemental Term Loans are added pursuant to the definition of Initial Term Loan; provided , further , for the avoidance of doubt, that, simultaneous with the effectiveness of the Fourth Amendment on the Fourth Amendment Effective Date, the Original Tranche B-2 Term Loans or Original Tranche B-2 Term Loan Commitments and the Additional Tranche B-2 Term Loans or Additional Tranche B-2 Term Loan Commitments became considered part of the same Tranche for all purposes under the Loan Documents.”

(c) Section 2.1 of the Credit Agreement is hereby amended by inserting the following as new clause (d) thereof:

“(d) (i) Subject to the terms and conditions hereof, each Lender listed on Schedule A-2 under the subheading “ New Tranche C Term Loan Commitments ” attached hereto (the “ New Tranche C Term Lenders ”) severally agrees to make, in Dollars, in a single draw on the Seventh Amendment Effective Date, one or more term loans to the Borrower in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name in Schedule A-2 under the heading “Tranche C Term Loan Commitment”, as such amount may be adjusted or reduced pursuant to the terms hereof.

(ii) Subject to the terms and conditions hereof, on the Seventh Amendment Effective Date, each Exchanged Term Loan, if any, of each Existing Term Lender (each such Existing Term Lender, an “ Exchanging Lender ”), shall

 

9


be exchanged with the Borrower for a Tranche C Term Loan in a like principal amount. For the avoidance of doubt, such Tranche C Term Loans held by an Exchanging Lender shall constitute “Rollover Indebtedness” for all purposes of this Agreement.

(iii) Such Tranche C Term Loans shall, at the option of the Borrower, be incurred and maintained as and/or converted into, ABR Loans or Eurodollar Loans.

(iv) Such Tranche C Term Loans pursuant to clause (d)(i) above shall be made by each such Lender in an aggregate principal amount which does not exceed the Tranche C Term Loan Commitment of such Lender.

Once repaid, Tranche C Term Loans incurred hereunder may not be reborrowed. On the Seventh Amendment Effective Date (after giving effect to the incurrence of Tranche C Term Loans on such date), the Tranche C Term Loan Commitment of each Tranche C Term Lender shall terminate.”

(d) Section 2.2 of the Credit Agreement is hereby amended as follows:

i. by amending and restating clause (a) thereof as follows:

“The Borrower agrees that, upon the request to the Administrative Agent by any Lender made on or prior to the Closing Date (in the case of requests relating to Loans other than the Tranche B-2 Term Loans and Tranche C Term Loans), the Second Amendment Effective Date (in the case of requests relating to the Original Tranche B-2 Term Loans), the Fourth Amendment Effective Date (in the case of requests relating to the Additional Tranche B-2 Term Loans) or the Seventh Amendment Effective Date (in the case of requests relating to the Tranche C Term Loans) or in connection with any assignment pursuant to Subsection 11.6(b) , in order to evidence such Lender’s Loan, the Borrower will execute and deliver to such Lender a promissory note substantially in the form of Exhibit A (each, as amended, supplemented, replaced or otherwise modified from time to time, a “ Note ” and, collectively, the “ Notes ”), in each case with appropriate insertions therein as to payee, date and principal amount, payable to such Lender and in a principal amount equal to the unpaid principal amount of the applicable Loans made (or acquired by assignment pursuant to Subsection 11.6(b) ) by such Lender to the Borrower. Each Note in respect of an Initial Term Loan shall be dated the Closing Date. Each Note in respect of an Original Tranche B-2 Term Loan shall be dated the Second Amendment Effective Date. Each Note in respect of an Additional Tranche B-2 Term Loan shall be dated the Fourth Amendment Effective Date. Each Note in respect of a Tranche C Term Loan shall be dated the Seventh Amendment Effective Date. Each Note shall be payable as provided in Subsections 2.2(b) , 2.2(c) or 2.2(d) , as applicable, and provide for the payment of interest in accordance with Subsection 4.1 .”

 

10


ii. by inserting the following as new clause (d) thereof:

“(d) The Tranche C Term Loans of all the Lenders shall be payable in consecutive quarterly installments beginning on March 31, 2017 up to and including the Maturity Date in respect of the Tranche C Term Loans (subject to reduction as provided in Subsection 4.4 ), on the dates and in the principal amounts, subject to adjustment as set forth below, equal to the respective amounts set forth below (together with all accrued interest thereon) opposite the applicable installment dates (or, if less, the aggregate amount of such Tranche C Term Loans then outstanding):

 

Date

  

Amount

Each March 31, June 30, September 30 and December 31 ending prior to the Maturity Date in respect of the Tranche C Term Loans    0.25% of the aggregate initial principal amount of the Tranche C Term Loans on the Seventh Amendment Effective Date
Maturity Date in respect of the Tranche C Term Loans    all unpaid aggregate principal amounts of any outstanding Tranche C Term Loans

(e) Subsection 2.3 of the Credit Agreement is hereby amended and restated as follows:

Procedure for Term Loan Borrowing . The Borrower shall have given the Administrative Agent notice (which notice must have been received by the Administrative Agent prior to 9:00 A.M., New York City time, and shall be irrevocable after funding) on ( i ) the Closing Date specifying the amount of the Initial Term Loans to be borrowed, ( ii ) the Second Amendment Effective Date specifying the amount of Original Tranche B-2 Term Loans to be borrowed, ( iii ) the Fourth Amendment Effective Date specifying the amount of Additional Tranche B-2 Term Loans to be borrowed or (iv) one Business Day prior to the Seventh Amendment Effective Date specifying the amount of Tranche C Term Loans to be borrowed. Upon receipt of such notice, the Administrative Agent shall promptly notify each applicable Lender thereof. Each applicable Lender will make ( a ) in the case of the Initial Term Loans, the amount of its pro rata share (based on its Initial Term Loan Percentage) of the Initial Term Loan Commitments, ( b ) in the case of the Original Tranche B-2 Term Loans, the amount of its pro rata share (based on its Original Tranche B-2 Term Loan Percentage) of the Original Tranche B-2 Term Loan Commitments, ( c ) in the case of the Additional Tranche B-2 Term Loans, the amount of its pro rata share (based on its Additional Tranche B-2 Term Loan Percentage) of the Additional Tranche B-2 Term Loan Commitments and ( d ) in the case of the Tranche C Term Loans, the amount of its pro rata share (based on its Tranche C Term Loan Percentage) of the Tranche C Term Loan Commitments, as applicable, available to the Administrative Agent, in each case for the account of the Borrower at the office of the Administrative Agent specified in Subsection 11.2 prior to 10:00 A.M., New York City time, on the Closing Date, the Second Amendment Effective Date, the Fourth Amendment Effective Date or the Seventh Amendment Effective Date, as applicable, in

 

11


funds immediately available to the Administrative Agent. The Administrative Agent shall on such date credit the account of the Borrower on the books of the Administrative Agent with the aggregate of the amounts made available to the Administrative Agent by the Lenders and in like funds as received by the Administrative Agent.”

(f) Subsection 2.5 of the Credit Agreement is hereby amended by amending and restating the first sentence of clause (a) thereof as follows:

“The Borrower hereby unconditionally promises to pay to the Administrative Agent (in the currency in which such Term Loan is denominated) for the account of: ( i ) each applicable Lender the then unpaid principal amount of each Initial Term Loan of such Lender made to the Borrower, on the Maturity Date in respect of the Initial Term Loans (or such earlier date on which the Initial Term Loans become due and payable pursuant to Section 9 ), ( ii ) each applicable Lender the then unpaid principal amount of each Tranche B-2 Term Loan of such Lender made to the Borrower, on the Maturity Date in respect of the Tranche B-2 Term Loans (or such earlier date on which the Tranche B-2 Term Loans become due and payable pursuant to Section 9 ) or ( iii ) each applicable Lender the then unpaid principal amount of each Tranche C Term Loan of such Lender made to the Borrower, on the Maturity Date in respect of the Tranche C Term Loans (or such earlier date on which the Tranche C Term Loans become due and payable pursuant to Section 9 ).”

(g) Subsection 2.6(d) of the Credit Agreement is hereby amended by amending and restating subclause (iv) thereof as follows:

“( iv ) the interest rate margins applicable to the loans made pursuant to the Incremental Commitments shall be determined by the Borrower and the applicable Additional Lenders; provided that in the event that the applicable interest rate margins for any term loans Incurred by the Borrower under any Incremental Term Loan Commitment (solely for the purposes of the Tranche B-2 Term Loans, to the extent that such term loans are Incurred on or prior to the 12-month anniversary of the Second Amendment Effective Date) are higher than the applicable interest rate margin for the Initial Term Loans, Tranche B-2 Term Loans and the Tranche C Term Loans by more than 50 basis points, then the Applicable Margin for the Initial Term Loans, Tranche B-2 Term Loans and/or the Tranche C Term Loans shall be increased to the extent necessary so that the applicable interest rate margin for the Initial Term Loans, Tranche B-2 Term Loans and/or the Tranche C Term Loans is equal to the applicable interest rate margins for such Incremental Term Loan Commitment minus 50 basis points; provided , further that, in determining the applicable interest rate margins for the Initial Term Loans, the Tranche B-2 Term Loans, the Tranche C Term Loans and the Incremental Term Loans, ( A ) original issue discount (“ OID ”) or upfront fees payable generally to all participating Additional Lenders in lieu of OID (which shall be deemed to constitute like amounts of OID) payable by the Borrower to the Lenders under the Initial Term Loans, the Tranche B-2 Term Loans, the

 

12


Tranche C Term Loans or any Incremental Term Loan in the initial primary syndication thereof shall be included (with OID being equated to interest based on an assumed four-year life to maturity); ( B ) any arrangement, structuring or other fees payable in connection with the Incremental Term Loans that are not shared with all Additional Lenders providing such Incremental Term Loans shall be excluded; ( C ) any amendments to the Applicable Margin on the Initial Term Loans, Tranche B-2 Term Loans or the Tranche C Term Loans that became effective subsequent to the Closing Date (with respect to Initial Term Loans), the Second Amendment Effective Date (with respect to the Tranche B-2 Term Loans) or the Seventh Amendment Effective Date (with respect to the Tranche C Term Loans) but prior to the time of such Incremental Term Loans shall also be included in such calculations and ( D ) if the Incremental Term Loans include an interest rate floor greater than the interest rate floor applicable to the Initial Term Loans, Tranche B-2 Term Loans and/or the Tranche C Term Loans, such increased amount shall be equated to the applicable interest rate margin for purposes of determining whether an increase to the Applicable Margin for the Initial Term Loans, Tranche B-2 Term Loans and/or the Tranche C Term Loans shall be required, to the extent an increase in the interest rate floor for the Initial Term Loans, Tranche B-2 Term Loans and/or the Tranche C Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case the interest rate floor (but not the Applicable Margin) applicable to the Initial Term Loans, Tranche B-2 Term Loans and/or the Tranche C Term Loans shall be increased by such amount.”

(h) Subsection 2.8 of the Credit Agreement is hereby amended by inserting the words “and Tranche C Term Loans” after the words “Tranche B-2 Term Loans” in clause (a) thereof.

(i) Subsection 4.4 of the Credit Agreement is hereby amended as follows:

i. by inserting the following sentence after the last sentence appearing in clause (a) thereof:

“Each prepayment of Tranche C Term Loans pursuant to this Subsection 4.4(a) made on or prior to the twelve-month anniversary of the Seventh Amendment Effective Date in an amount equal to, or with the Net Cash Proceeds received by the Borrower or any Restricted Subsidiary from, its incurrence of new Indebtedness under first lien secured term loan bank financing in a Tranche C Repricing Transaction shall be accompanied by the payment of the fee required by
Subsection 4.5(d) .”

ii. by restating the first sentence of clause (c) thereof as follows:

“Subject to the last sentence of Subsection 4.4(d) and Subsection 4.4(g) , each prepayment of Term Loans pursuant to Subsections 4.4(a) and (b)  shall be allocated pro rata among the Initial Term Loans, the Tranche B-2 Term Loans, the Tranche C Term Loans, the Incremental Term Loans and the Extended Term Loans and shall be applied within each Tranche of Term Loans to the respective

 

13


installments of principal thereof in the manner directed by the Borrower (or, if no such direction is given, in direct order of maturity); provided , that at the request of the Borrower, in lieu of such application on a pro rata basis among all Tranches of Term Loans, such prepayment may be applied to any Tranche of Term Loans so long as the maturity date of such Tranche of Term Loans precedes the maturity date of each other Tranche of Term Loans then outstanding or, in the event more than one Tranche of Term Loans shall have an identical maturity date that precedes the maturity date of each other Tranche of Term Loans then outstanding, to such Tranches on a pro rata basis.”

(j) Subsection 4.5 of the Credit Agreement is hereby amended by inserting the following new clause (d) thereof:

“(d) If on or prior to the twelve-month anniversary of the Seventh Amendment Effective Date the Borrower makes an optional prepayment of the Tranche C Term Loans in an amount equal to, or with the Net Cash Proceeds received by the Borrower or any Restricted Subsidiary from, its incurrence of new Indebtedness under first lien secured bank term loan financing in a Tranche C Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the ratable account of each Tranche C Term Lender, a prepayment premium of 1.0% of the aggregate principal amount of Tranche C Term Loans being prepaid. If, on or prior to the twelve-month anniversary of the Seventh Amendment Effective Date, any Lender is replaced pursuant to Subsection 11.1(g) in connection with any amendment of this Agreement (including in connection with any refinancing transaction permitted under Subsection 11.6(g) to replace the Tranche C Term Loans) that results in a Tranche C Repricing Transaction, such Lender (and not any Person who replaces such Lender pursuant to Subsection 2.8(e) or 11.1(g) ) shall receive a fee equal to 1.0% of the principal amount of the Tranche C Term Loans of such Lender assigned to a replacement Lender pursuant to Subsection 2.8(e) or 11.1(g) .”

(k) Subsection 5.16 is hereby amended and restated as follows:

“The proceeds of Term Loans shall be used by the Borrower ( i ) in the case of the Initial Term Loans other than the 2013 Supplemental Term Loans, to effect, in part, the Refinancing and the other Transactions, and to pay certain fees and expenses relating thereto, ( ii ) in the case of Tranche B-2 Term Loans, to finance the working capital, capital expenditures, business requirements, acquisitions and other general corporate purposes of the Borrower and its Restricted Subsidiaries, ( iii ) in the case of Additional Tranche B-2 Term Loans, to finance the working capital, capital expenditures, business requirements, acquisitions and other general corporate purposes of the Borrower and its Restricted Subsidiaries, ( iv ) in the case of the Tranche C Term Loans, to finance ( x ) the 2016 Transactions and to pay fees, premiums and expenses incurred in connection with the 2016 Transactions and ( y ) the working capital, capital expenditures, business requirements, acquisitions and other general corporate purposes of the Borrower and its Restricted Subsidiaries and ( v ) in the case of all other Term Loans, to finance the working capital, capital expenditures, business requirements and other general corporate purposes of the Borrower and its Restricted Subsidiaries.”

 

14


(l) Subsection 11.2 of the Credit Agreement is hereby amended by deleting the reference to “ Schedule A and A-1 ” in clause (a) thereof and replacing it with “ Schedules A, A-1 and A-2 ”.

(m) Subsection 11.6 of the Credit Agreement is hereby amended as follows:

i. by inserting the words “, Tranche C Term Loan Commitments” after the words “Tranche B-2 Term Loan Commitments” appearing in subclause (iv) of clause (b) thereof;

ii. by inserting the words “, Tranche C Term Loan Commitments” after the words “Tranche B-2 Term Loan Commitments” appearing in the third to last paragraph of clause (b) thereof; and

iii. by inserting the words “Tranche C Term Loan Commitments,” after the words “Tranche B-2 Term Loan Commitments,” in the first sentence of subclause (i) of clause (c) thereof.

(n) The Schedules to the Credit Agreement are hereby amended by adding as new Schedule A-2 Annex I hereto.

(o) Each Exchanging Lender hereby waives any right to receive any payments under Subsection 4.12 of the Credit Agreement as a result of the 2016 Transactions. It is understood and agreed that the Borrower, with the consent of the Administrative Agent, may elect on or prior to the Seventh Amendment Effective Date that the Tranche C Term Loans for which the Initial Term Loans and/or Tranche B Term Loans are exchanged be Eurodollar Loans having an Interest Period designated by the Borrower, regardless of whether the Seventh Amendment Effective Date is the last day of an Interest Period with respect to such exchanged Initial Term Loans and/or Tranche B Term Loans (which, for the avoidance of doubt, may include Interest Periods of one week or two weeks).

(p) The Borrower hereby agrees that it shall, together with any prepayment of the Initial Term Loans and/or Tranche B Term Loans pursuant to this Seventh Amendment, pay to all Lenders, on the Seventh Amendment Effective Date, accrued and unpaid interest to the Seventh Amendment Effective Date on the amount of Initial Term Loans and/or Tranche B Term Loans prepaid or exchanged pursuant to this Seventh Amendment.

SECTION TWO - Amendment and Restatement of Credit Agreement . Subject to satisfaction of the conditions set forth in Section Five below, effective as of the Restatement Effective Date, the Credit Agreement (and the Exhibits and Schedules thereto) is hereby amended and restated in the form attached as Annex II hereto (the “ Restated Credit Agreement ”).

 

15


SECTION THREE - Guarantee and Collateral Agreement Amendments . Effective as of the Restatement Effective Date and upon the occurrence of the GCA Amendments Effective Time (as defined below) (the “ GCA Amendments ”), the Guarantee and Collateral Agreement is hereby amended as follows:

 

  a. The Guarantee and Collateral Agreement is hereby amended by deleting the words “CDRT ACQUISITION CORPORATION, a Delaware corporation (“ Holdings ”),” from the first paragraph thereof and deleting each reference to “CDRT ACQUISITION CORPORATION” and “Holdings”.

 

  b. Section 1.1 of the Guarantee and Collateral Agreement is hereby amended as follows:

 

  i. by deleting the definition of “Excluded Vehicles”; and

 

  ii. by amending and restating the definition of “Vehicles” as follows:

 

       ““Vehicles”: all vehicles that are owned by a Grantor, including cars, trucks, trailers, ambulances and other vehicles covered by a certificate of title law of any state and all tires and other appurtenances to any of the foregoing.”

 

  c. Sections 2.1(d)(ii) and (iii)  of the Guarantee and Collateral Agreement is hereby amended and rested as follows:

“( ii ) as to any Guarantor, a sale or other disposition of all the Capital Stock of such Guarantor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Guarantor ceases to be a Restricted Subsidiary of the Borrower, in each case that is permitted under the Credit Agreement and ( iii ) as to any Guarantor, such Guarantor becoming an Excluded Subsidiary.”

 

  d. Sections 2.1(e)(ii) and (iii)  of the Guarantee and Collateral Agreement are hereby amended and rested as follows:

“( ii ) as to any Guarantor, a sale or other disposition of all the Capital Stock of such Guarantor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Guarantor ceases to be a Restricted Subsidiary of the Borrower, in each case that is permitted under the Credit Agreement and ( iii ) as to any Guarantor, such Guarantor becoming an Excluded Subsidiary.”

 

  e. Section 3.1 of the Guarantee and Collateral Agreement is hereby amended by replacing the words “all Vehicles” with the word “[reserved]” in clause (p) thereof.

 

  f. Section 3.3 of the Guarantee and Collateral Agreement is hereby amended as follows:

 

  i. by amending and restating clause (j) thereof as follows:

 

  “(j) any assets subject to certificate of title;”

 

  i. by inserting the words “to the extent the security interest therein is not automatically perfected by the filings under the Uniform Commercial Code of any applicable jurisdiction” immediately before the words “other than Loan Party DDAs” in clause (n) thereof; and

 

  ii. replacing the words “any Excluded Vehicles” with the words “any Vehicles” in clause (q) thereof.

 

16


  g. Sections 5.1(ii) and (iii)  of the Guarantee and Collateral Agreement are hereby amended and rested as follows:

“( ii ) as to any Guarantor, a sale or other disposition of all the Capital Stock of such Guarantor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Guarantor ceases to be a Restricted Subsidiary of the Borrower, in each case that is permitted under the Credit Agreement or ( iii ) as to any Guarantor, such Guarantor becoming an Excluded Subsidiary.”

 

  h. Sections 5.2(ii) and (iii)  of the Guarantee and Collateral Agreement are hereby amended and rested as follows:

“( ii ) a sale or other disposition of all the Capital Stock of such Grantor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Grantor ceases to be a Restricted Subsidiary of the Borrower, in each case that is permitted under the Credit Agreement or ( iii ) as to any Grantor, such Grantor becoming an Excluded Subsidiary:”

 

  i. Sections 5.3(ii) and (iii)  of the Guarantee and Collateral Agreement are hereby amended and rested as follows:

“( ii ) as to any Pledgor, a sale or other disposition of all the Capital Stock of such Pledgor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Pledgor ceases to be a Restricted Subsidiary of the Borrower, in each case that is permitted under the Credit Agreement or ( iii ) as to any Pledgor, such Pledgor becoming an Excluded Subsidiary:”

 

  j. The second sentence of Section 9.16(b) is hereby amended and restated as follows:

“In connection with a sale or other disposition of all the Capital Stock of any Granting Party (other than any sale or disposition to another Grantor) or any other transaction or occurrence as a result of which such Granting Party ceases to be a Restricted Subsidiary of the Borrower or the sale or other disposition of Security Collateral (other than a sale or disposition to another Grantor) permitted under the Credit Agreement, the Collateral Agent shall, upon receipt from the Borrower of a written request for the release of such Granting Party from its Guarantee or the release of the Security Collateral subject to such sale or other disposition, identifying such Granting Party or the relevant Security Collateral and the terms of the sale or other disposition in reasonable detail, including the price thereof and any expenses in connection therewith, together with a certification by the Borrower stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents, execute and deliver to the Borrower or the relevant

 

17


Granting Party (without recourse and without any representation or warranty), at the sole cost and expense of such Granting Party, any Security Collateral of such relevant Granting Party held by the Collateral Agent that is being released, or the Security Collateral subject to such sale or disposition (as applicable), and, at the sole cost and expense of such Granting Party, execute, acknowledge and deliver to such Granting Party such releases, instruments or other documents (including without limitation UCC termination statements and certificates and instructions for terminating Liens on Vehicles, if applicable), and do or cause to be done all other acts, as the Borrower or such Granting Party shall reasonably request ( x ) to evidence or effect the release of such Granting Party from its Guarantee (if any) and of the Liens created hereby (if any) on such Granting Party’s Security Collateral or ( y ) to evidence the release of the Security Collateral subject to such sale or disposition.”

 

  k. Section 9.16(c) of the Guarantee and Collateral Agreement is hereby amended by replacing the words “Upon the designation of any Granting Party as an Unrestricted Subsidiary” with the words “Upon any Granting Party becoming an Excluded Subsidiary”.

 

  l. by inserting the following new Section 9.18 :

9.18. Transfer Tax Acknowledgment . Each party hereto acknowledges that the shares delivered hereunder are being transferred to and deposited with the Collateral Agent (or other Person in accordance with any applicable Intercreditor Agreement) as security for the Obligations and that this Subsection 9.18 is intended to be the certificate of exemption from New York stock transfer taxes for the purposes of complying with Section 270.5(b) of the Tax Law of the State of New York.”

SECTION FOUR - Conditions to Effectiveness relating to Incremental Credit Agreement Amendments . This Seventh Amendment relating to the Credit Agreement amendments set forth in Section One above (the “ Incremental Credit Agreement Amendments ”) shall become effective on the date (the “ Seventh Amendment Effective Date ”) and at the time (the “ Incremental Credit Agreement Amendments Effective Time ”) when each of the following conditions shall have been satisfied:

(a) the Borrower, the New Tranche C Term Lenders, each Existing Term Lender with an Exchanged Term Loan, the Existing Administrative Agent, the Existing Collateral Agent, the New Administrative Agent and the New Collateral Agent shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile or other electronic transmission) the same to the Existing Administrative Agent;

(b) the Existing Administrative Agent shall have received ( A ) true and complete copies of resolutions of the board of directors or a duly authorized committee thereof of the Borrower approving and authorizing the execution, delivery and performance of this Seventh Amendment, and the performance of the Credit Agreement as amended by this Seventh Amendment, certified as of the Seventh Amendment Effective Date by a Responsible Officer, secretary or assistant secretary of the Borrower as being in full force and effect without modification or amendment and ( B ) a good standing certificate (or the equivalent thereof) for the Borrower from its jurisdiction of formation;

 

18


(c) the Borrower shall have delivered to the Existing Administrative Agent and the Lenders an opinion from each of Debevoise & Plimpton LLP, special New York counsel to the Borrower, Richards, Layton & Finger, P.A., special Delaware counsel to the Borrower and Bass Berry & Sims PLC, special Tennessee counsel to the Borrower ;

(d) the Existing Administrative Agent shall have received a certificate of the Borrower required pursuant to Subsection 2.6(a) and the definition of “Maximum Incremental Facilities Amount” in the Credit Agreement;

(e) in lieu of any “upfront fees” pursuant to the fee letter referred to below, the Existing Administrative Agent shall have received, for the account of each Exchanging Term Lender, an upfront fee in an amount equal to 1.00% of the principal amount of such Exchanging Term Lender’s Exchanged Term Loans and each New Tranche C Term Loan Lender shall have received an upfront fee equal to 1.00% of the principal amount of its New Tranche C Term Loan Commitment (it being understood that the Borrower hereby authorizes each New Tranche C Term Loan Lender to fund its Tranche C Term Loan net of the amount of such upfront fee);

(f) all fees and expenses then due and payable to the Administrative Agent, the New Administrative Agent and the Other Representatives in respect of the Tranche C Term Loans and the Tranche C Term Loan Lenders pursuant to the fee letter agreement, dated June 15, 2016 (as amended by that certain Letter Agreement Pursuant to Commitment Letter dated June 15, 2016 dated as of July 7, 2016, as amended by that certain Letter Agreement Pursuant to Commitment Letter dated June 15, 2016 dated as of July 8, 2016 and as may be further amended, supplemented or otherwise modified from time to time) by and among the Borrower, AmSurg Corp., JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wells Fargo Bank, National Association, Wells Fargo Securities, LLC, SunTrust Bank, SunTrust Robinson Humphrey, Inc., Deutsche Bank AG New York Branch, Deutsche Bank Securities Inc., BMO Harris Bank N.A., BMO Capital Markets Corp., RBC Capital Markets, LLC and Bank of America, N.A. and Section Seven hereof shall have been paid on, or contemporaneously with the funding of Tranche C Term Loans on, the Seventh Amendment Effective Date;

(g) the Administrative Agent shall have received a notice of such borrowing as required by Subsection 2.3 of the Credit Agreement (as amended hereby);

(h) the 2016 Mergers shall have been or, substantially concurrently with the initial borrowing of Tranche C Term Loans shall be, consummated in all material respects in accordance with the terms of the 2016 Merger Agreement, without giving effect to any modifications, amendments, express waivers or express consents thereunder that are materially adverse to the Tranche C Term Lenders without the consent of the Tranche C Lead Arrangers (such consent not to be unreasonably withheld, conditioned or delayed), it being understood and agreed that any change in the Exchange Ratio (as defined in the 2016 Merger Agreement) shall not be deemed to be materially adverse to the Tranche C Term Loan Lenders;

 

19


(i) Since the date of the 2016 Merger Agreement, ( i ) no change, event, development, condition, occurrence or effect shall have occurred, arisen or become known that has had, or would reasonably be expected to have, individually or in the aggregate, an Amethyst Material Adverse Effect (as defined in the 2016 Merger Agreement on June 15, 2016) and ( ii ) no change, event, development, condition, occurrence or effect shall have occurred, arisen or become known that has had, or would reasonably be expected to have, individually or in the aggregate, a Holdings Material Adverse Effect (as defined in the 2016 Merger Agreement on June 15, 2016);

(j) the Administrative Agent shall have received a certificate of the chief financial officer or treasurer (or other comparable officer) of the Borrower certifying the Solvency, after giving effect to the 2016 Mergers, of the Borrower and its Subsidiaries on a consolidated basis in the form attached as Annex I to Exhibit G to that certain commitment letter among, inter alia Holdings, AmSurg and the Tranche C Lead Arrangers, dated as of June 15, 2016 (as amended, supplemented or otherwise modified prior to the date hereof);

(k) the Administrative Agent and the Tranche C Lead Arrangers shall have received at least three Business Days prior to the Seventh Amendment Effective Date all documentation and information as is reasonably requested in writing by the Administrative Agent and the Tranche C Lead Arrangers, at least 10 calendar days prior to the Seventh Amendment Effective Date, about the Borrower and the Guarantors mutually agreed to be required by U.S. regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act; and

(l) the representation and warranties in Section Seven below shall, except to the extent they relate to a particular date (in which case, such representations and warranties shall be true and correct in all material respects on and as of such earlier date), be true and correct in all material respects on and as of the Seventh Amendment Effective Date as if made on and as of such date.

The making of the Tranche C Term Loans by the Tranche C Term Lenders hereunder shall conclusively be deemed to constitute an acknowledgement by each Tranche C Term Lender that has made its respective Tranche C Term Loan that each of the conditions precedent set forth in Section Four of this Seventh Amendment and the Credit Agreement shall have been satisfied in accordance with its respective terms or shall have been irrevocably waived by such Person.

SECTION FIVE - Conditions to Effectiveness of the Restatement of the Credit Agreement . The Restated Credit Agreement shall become effective on the date and at the time (such date, the “ Restatement Effective Date ” and such time, the “ Restatement Effective Time ”) on which the Incremental Amendment Effective Time and the Prepayment shall have occurred.

SECTION SIX - Conditions to Effectiveness relating to GCA Amendments . The GCA Amendments shall become effective on the Restatement Effective Date at the time (the “ GCA Amendments Effective Time ”) immediately following the occurrence of the Restatement Effective Time.

 

20


SECTION SEVEN - Representations and Warranties; No Default . In order to induce the Tranche C Term Lenders party hereto, the Existing Term Lenders with Exchanged Term Loans, the Existing Administrative Agent, the Existing Collateral Agent, the New Administrative Agent and the New Collateral Agent to enter into this Seventh Amendment, the Borrower represents and warrants to each of such Lenders and the Administrative Agent that on and as of the date hereof, after giving effect to this Seventh Amendment, ( i ) no Default or Event of Default exists as of the Seventh Amendment Effective Date; ( ii ) the representations and warranties of each Loan Party contained in Section 5 of the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the date hereof except to the extent that such representations and warranties relate to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date; ( iii ) the execution, delivery and performance of this Seventh Amendment has been duly authorized by all necessary corporate or limited liability company action on the part of the Borrower, has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except to the extent that the enforceability hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law; and ( iv ) the execution and delivery hereof by the Borrower and the performance and observance by the Borrower of the provisions hereof do not violate or conflict with ( A ) any Organizational Document of the Borrower or ( B ) any Requirement of Law applicable to the Borrower or result in a breach of any provision of any Contractual Obligation of the Borrower, in each case, in any respect that would reasonably be expected to have a Material Adverse Effect.

SECTION EIGHT - Fees .

The Borrower agrees to reimburse the Existing Administrative Agent, the Existing Collateral Agent, the New Administrative Agent, the New Collateral Agent and the Other Representatives in respect of the Tranche C Term Loans for their reasonable and documented out-of-pocket expenses incurred by them in connection with this Seventh Amendment, including the reasonable fees, charges and disbursements of Cahill Gordon & Reindel LLP, counsel for the Other Representatives in respect of the Tranche C Term Loans and for the New Administrative Agent and New Collateral Agent, and White & Case LLP, counsel for the Existing Administrative Agent and Existing Collateral Agent, ( I ) in the case of the Existing Administrative Agent and Existing Collateral Agent, in accordance with Subsection 11.5 of the Credit Agreement and ( II ) in the case of the New Administrative Agent, the New Collateral Agent and the Other Representatives, in accordance with the Commitment Letter dated as of June 15, 2016, as amended, by and among the Borrower and other parties thereto.

SECTION NINE - Reference to and Effect on the Credit Agreement and the Notes .

On and after the effectiveness of the Incremental Credit Agreement Amendments, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the Notes and each of the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement,

 

21


as amended by the Incremental Credit Agreement Amendments. On and after the Restatement Effective Date, each reference in the Notes and each of the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Restated Credit Agreement. On and after the effectiveness of the GCA Amendments, each reference in the Guarantee and Collateral Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Guarantee and Collateral Agreement and each reference in the Credit Agreement and each of the other Loan Documents to “the Guarantee and Collateral Agreement”, “thereunder”, “thereof” or words of like import referring to the Guarantee and Collateral Agreement, shall mean and be a reference to the Guarantee and Collateral Agreement, as amended by the GCA Amendments. Each of the parties hereto (i) acknowledges that, at the Restatement Effective Time, pursuant to Subsection 11.22 of the Restated Credit Agreement, the Existing Administrative Agent and the Existing Collateral Agent shall cease to be the “Administrative Agent” and the “Collateral Agent” under the Loan Documents (as defined in the Restated Credit Agreement), (ii) agrees that all rights, priviliges and immunities provided to the “Former Agent” in the Restated Credit Agreement shall apply for the benefit of the Existing Administrative Agent and Existing Collateral Agent and (iii) acknowledges and agrees that, at the Restatement Effective Time, the Existing Administrative Agent and Existing Collateral Agent, in its capacities as such, shall be fully discharged from its duties and obligations as “Administrative Agent” and “Collateral Agent” under the Restated Credit Agreement and the other Loan Documents (as defined therein) and shall not be responsible for (i) any actions taken or omitted to be taken by the New Administrative Agent or New Collateral Agent (or their respective successors, agents or assigns), or that otherwise occur, from or after the Restatement Effective Time and (ii) any and all claims under or related to the Loan Documents (as defined in the Restated Credit Agreement) that may arise from events occurring from or after the Restatement Effective Time. The Credit Agreement, the Notes and each of the other Loan Documents, as specifically amended by this Seventh Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. The execution, delivery and effectiveness of this Seventh Amendment shall not, except as expressly provided herein, operate as an amendment or waiver of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute an amendment or waiver of any provision of any of the Loan Documents. The Borrower and each other Grantor hereby expressly acknowledges the terms of this Seventh Amendment and reaffirms, as of the date hereof, (i) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, its obligations to JPMCB as New Administrative Agent and New Collateral Agent and such covenants and agreements as in effect immediately after giving effect to this Seventh Amendment and the transactions contemplated hereby and (ii) its grant of Liens on the Collateral to secure the Secured Obligations (including, without limitation, in respect of the Tranche C Term Loans) pursuant to the Security Documents both after giving effect to the Incremental Credit Agreement Amendments and after giving effect to the Restated Credit Agreement.

SECTION TEN - Execution in Counterparts . This Seventh Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which, when taken together, shall constitute a single contract. Delivery of an executed counterpart of this Seventh Amendment by facsimile transmission or electronic photocopy (i.e., “pdf”) shall be effective as delivery of a manually executed counterpart of this Seventh Amendment.

 

22


SECTION ELEVEN - Governing Law . THIS SEVENTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS SEVENTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

SECTION TWELVE - Assignment of Assigned Security Interests . The Existing Collateral Agent, hereby assigns, without warranty, representation or recourse, to the New Collateral Agent, effective on and after the Restatement Effective Time, all powers of attorney, security interests, mortgages, Liens, Collateral and other rights, titles, interests, privileges, claims, demands, equities and charges of the Existing Collateral Agent as the mortgagee, secured party or beneficiary, whether now or hereafter existing under or pursuant to the Loan Documents or any other liens of record in favor of the Existing Administrative Agent or Existing Collateral Agent, as applicable, in its capacity as the Administrative Agent and Collateral Agent under the Credit Agreement and the other Loan Documents and all other rights, benefits, remedies and privileges of the Existing Administrative Agent or Existing Collateral Agent, as applicable, in its capacity as the holder, mortgagee, secured party, pledgee or beneficiary of the security and the Collateral under or pursuant to the Credit Agreement, and the other Loan Documents in its capacity as agent for the Secured Parties (and not as an individual Lender) (collectively, the “ Assigned Security Interests ”), and the New Collateral Agent hereby assumes all of the Assigned Security Interests for its benefit and for the benefit of all other Secured Parties. Without limiting the generality of the foregoing, from and after the Restatement Effective Time, any reference to DBNY on any publicly filed document or in any agreement, to the extent such filing or agreement relates to the Liens and security interests in the Collateral assigned hereby and until such filing or agreement is modified to reflect the interests of JPMCB, as Collateral Agent, shall, with respect to such Liens and security interests, constitute a reference to the DBNY as sub-agent of JPMCB, as Collateral Agent. Each of the parties hereto acknowledges that (i) neither the Existing Administrative Agent or Existing Collateral Agent nor any of their respective Related Parties has made or shall be deemed to have made any representation or warranty to it (including, without limitation, regarding the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, creation or the perfection or priority of any lien or security interest created or purported to be created under or in connection with, any Loan Document (as defined in the Credit Agreement or in the Restated Credit Agreement) or any other instrument or document furnished pursuant thereto or the sufficiency of any documentation transferring any such lien or security interest to the New Administrative Agent or New Collateral Agent) except those expressly set forth in Section 2(a) of the Agency Transfer Agreement (as defined in the Restated Credit Agreement) and (ii) it has, independently and without reliance upon the Existing Administrative Agent or Existing Collateral Agent or any of their respective Related Parties, made its own decision to enter into this Agreement and the Restated Credit Agreement and the transactions contemplated hereby and thereby.

 

23


SECTION THIRTEEN - Notwithstanding anything herein (or in any other document, communication or filing relating hereto by any person) to the contrary, the Existing Administrative Agent and Existing Collateral Agent are authorizing solely the assignment of the Assigned Security Interests and not any other powers, Liens, collateral and other rights, titles, interests, privileges, claims, demands, equities or charges of DBNY in its capacity as a Lender or created or existing in favor of DBNY pursuant to any other document that is not a Loan Document or in favor of any other person.

 

24


IN WITNESS WHEREOF, the parties hereto have caused this Seventh Amendment to be duly executed and delivered as of the day and year first above written.

 

ENVISION HEALTHCARE CORPORATION
By:  

/s/ Randel G. Owen

Name:   Randel G. Owen
Title:   Chief Financial Officer

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


DEUTSCHE BANK AG NEW YORK BRANCH,
as Existing Administrative Agent and Existing Collateral Agent
By:  

/s/ Peter Cucchiara

Name:   Peter Cucchiara
Title:   Vice President
By:  

/s/ Benjamin South

Name:   Benjamin South
Title:   Vice President

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


JPMORGAN CHASE BANK, N.A.,
as Tranche C Term Lender
By:  

/s/ John A. Horst

Name:   John A. Horst
Title:   Executive Director

JPMORGAN CHASE BANK, N.A.,

as New Administrative Agent and New Collateral Agent

By:  

/s/ John A. Horst

Name:   John A. Horst
Title:   Executive Director

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


Each Guarantor acknowledges and consents to each of the foregoing provisions of this Seventh Amendment and the incurrence of the Tranche C Term Loans. Each Guarantor further acknowledges and agrees that all Obligations (as defined in the Guarantee and Collateral Agreement) with respect to the Tranche C Term Loans shall be fully guaranteed and secured pursuant to the Guarantee and Collateral Agreement in accordance with the terms and provisions thereof. Each Guarantor hereby agrees to the amendments contemplated by Section One and Section Two hereof and to the amendments to the Guarantee and Collateral Agreement contemplated by Section Three hereof.

 

GUARANTORS :
ENVISION HEALTHCARE INTERMEDIATE CORPORATION
  By:  

/s/ William A. Sanger

    Name:   William A. Sanger
    Title:   Chief Executive Officer
CLINICAL PARTNERS MANAGEMENT COMPANY, LLC
NORTHWOOD ANESTHESIA ASSOCIATES, L.L.C.
  By:  

/s/ William A. Sanger

    Name:   William A. Sanger
    Title:   Manager

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

A1 LEASING, INC.

ABBOTT AMBULANCE, INC.

ACCENT HOME HEALTH CARE INC.

ADAM TRANSPORTATION SERVICE, INC.

AFFILION, INC.

AIR AMBULANCE SPECIALISTS, INC.

AMBULANCE ACQUISITION, INC.

AMERICAN EMERGENCY PHYSICIANS MANAGEMENT, INC.

AMERICAN INVESTMENT ENTERPRISES, INC.

AMERICAN MEDICAL PATHWAYS, INC.

AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC.

AMERICAN MEDICAL RESPONSE HOLDINGS, INC.

AMERICAN MEDICAL RESPONSE MANAGEMENT, INC.

AMERICAN MEDICAL RESPONSE MID-ATLANTIC, INC.

AMERICAN MEDICAL RESPONSE NORTHWEST, INC.

AMERICAN MEDICAL RESPONSE OF COLORADO, INC.

AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INCORPORATED

AMERICAN MEDICAL RESPONSE OF GEORGIA, INC.

AMERICAN MEDICAL RESPONSE OF ILLINOIS, INC.

AMERICAN MEDICAL RESPONSE OF INLAND EMPIRE

AMERICAN MEDICAL RESPONSE OF MASSACHUSETTS, INC.

AMERICAN MEDICAL RESPONSE OF NORTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF OKLAHOMA, INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

AMERICAN MEDICAL RESPONSE OF SOUTH CAROLINA, INC.

AMERICAN MEDICAL RESPONSE OF SOUTHERN CALIFORNIA

AMERICAN MEDICAL RESPONSE OF TENNESSEE, INC.

AMERICAN MEDICAL RESPONSE OF TEXAS, INC.

AMERICAN MEDICAL RESPONSE WEST

AMERICAN MEDICAL RESPONSE, INC.

AMR BAY STATE, LLC

AMR HOLDCO, INC.

AMR OF CENTRAL TEXAS I, LLC

AMR OF CENTRAL TEXAS II, LLC

APH LABORATORY SERVICES, INC.

ARIZONA EMS HOLDINGS, INC.

ASSOCIATED AMBULANCE SERVICE, INC.

ATLANTIC AMBULANCE SERVICES ACQUISITION, INC.

ATLANTIC/KEY WEST AMBULANCE, INC.

ATLANTIC/PALM BEACH AMBULANCE, INC.

BEACON TRANSPORTATION, INC.

BESTPRACTICES, INC.

BLYTHE AMBULANCE SERVICE

BOWERS COMPANIES, INC.

BROWARD AMBULANCE, INC.

COMMUNITY AUTO AND FLEET SERVICES L.L.C.

COMMUNITY EMS, INC.

COMTRANS AMBULANCE SERVICE, INC.

COMTRANS, INC.

CORNING AMBULANCE SERVICE INC.

DESERT VALLEY MEDICAL TRANSPORT, INC.

DONLOCK, LTD.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

E.M.S. VENTURES, INC.

EASTERN AMBULANCE SERVICE, INC.

EASTERN PARAMEDICS, INC.

EHR MANAGEMENT CO.

EMCARE ANESTHESIA PROVIDERS, INC.

EMCARE HOLDCO, INC.

EMCARE HOLDINGS INC.

EMCARE OF CALIFORNIA, INC.

EMCARE PHYSICIAN PROVIDERS, INC.

EMCARE PHYSICIAN SERVICES, INC.

EMCARE, INC.

EMERGENCY MEDICAL SERVICES LP CORPORATION

EMERGENCY MEDICAL TRANSPORT, INC.

EMERGENCY MEDICAL TRANSPORTATION, INC.

EMERGENCY MEDICINE EDUCATION SYSTEMS, INC.

EMS VENTURES OF SOUTH CAROLINA, INC.

FIVE COUNTIES AMBULANCE SERVICE, INC.

FLORIDA EMERGENCY PARTNERS, INC.

FOUNTAIN AMBULANCE SERVICE, INC.

GILA HOLDCO LLC

GOLD COAST AMBULANCE SERVICE

GOLD CROSS AMBULANCE SERVICE OF PA., INC.

GOLD CROSS AMBULANCE SERVICES, INC.

GRACE BEHAVIORAL HEALTH, L.L.C.

GREATER PINELLAS TRANSPORTATION MANAGEMENT SERVICES, INC.

GUARDIAN HEALTH CARE, INC.

GUARDIAN HEALTHCARE GROUP, INC.

GUARDIAN HEALTHCARE HOLDINGS, INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):
HANK’S ACQUISITION CORP.

HEALTH PRIORITY HOME CARE, INC.

HEALTHCARE ADMINISTRATIVE SERVICES, INC.

HEMET VALLEY AMBULANCE SERVICE, INC.

HERREN ENTERPRISES, INC.

HOLIDAY ACQUISITION COMPANY, INC.

INTERNATIONAL LIFE SUPPORT, INC.

JLM HEALTHCARE, INC.

KMAC, INC.

KUTZ AMBULANCE SERVICE, INC.

LASALLE AMBULANCE INC.

LIFE LINE AMBULANCE SERVICE, INC.

LIFECARE AMBULANCE SERVICE, INC.

LIFEFLEET SOUTHEAST, INC.

MAINSTAY SOLUTIONS, LLC

MARLBORO HUDSON AMBULANCE & WHEELCHAIR SERVICE, INC.

MEDEVAC MEDICAL RESPONSE, INC.

MEDEVAC MIDAMERICA, INC.

MEDIC ONE AMBULANCE SERVICES, INC.

MEDIC ONE OF COBB, INC.

MEDICAL EMERGENCY DEVICES AND SERVICES (MEDS), INC.

MEDI-CAR AMBULANCE SERVICE, INC.

MEDI-CAR SYSTEMS, INC.

MEDICS AMBULANCE SERVICE (DADE), INC.

MEDICS AMBULANCE SERVICE, INC.

MEDICS AMBULANCE, INC.

MEDICS EMERGENCY SERVICES OF PALM BEACH COUNTY, INC.

MEDICS SUBSCRIPTION SERVICES, INC.

MEDICS TRANSPORT SERVICES, INC.

MEDICWEST AMBULANCE, INC.

MEDICWEST HOLDINGS, INC.

MEDLIFE EMERGENCY MEDICAL SERVICE, INC.

MEDSTAT EMS, INC.

MERCURY AMBULANCE SERVICE, INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

MERCY AMBULANCE OF EVANSVILLE, INC.

MERCY LIFE CARE
MERCY, INC.

METRO AMBULANCE SERVICE (RURAL), INC.

METRO AMBULANCE SERVICE, INC.

METRO AMBULANCE SERVICES, INC.

METRO CARE CORP.

METROPOLITAN AMBULANCE SERVICE

MIDWEST AMBULANCE MANAGEMENT COMPANY

MOBILE MEDIC AMBULANCE SERVICE, INC.

NATIONAL AMBULANCE & OXYGEN SERVICE, INC.

NEVADA RED ROCK AMBULANCE, INC.

NEVADA RED ROCK HOLDINGS, INC.

NORTH MISS. AMBULANCE SERVICE, INC.

OHERBST, INC.

PACIFIC AMBULANCE, INC.

PARAMED, INC.

PARK AMBULANCE SERVICE INC.

PHYSICIAN ACCOUNT MANAGEMENT, INC.

PHYSICIANS & SURGEONS AMBULANCE SERVICE, INC.

PROFESSIONAL MEDICAL TRANSPORT, INC.

PROVIDER ACCOUNT MANAGEMENT, INC.

PUCKETT AMBULANCE SERVICE, INC.

R/M ARIZONA HOLDINGS, INC.

R/M MANAGEMENT CO., INC.

R/M OF TENNESSEE G.P., INC.

R/M OF TENNESSEE L.P., INC.

RADIOLOGY STAFFING SOLUTIONS, INC.

RADSTAFFING MANAGEMENT SOLUTIONS, INC.

RANDLE EASTERN AMBULANCE SERVICE, INC.

REIMBURSEMENT TECHNOLOGIES, INC.

RIVER MEDICAL INCORPORATED

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

RURAL/METRO (DELAWARE), INC.

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION

RURAL/METRO CORPORATION OF FLORIDA

RURAL/METRO CORPORATION OF TENNESSEE

RURAL/METRO FIRE DEPT., INC.

RURAL/METRO OF BREWERTON, INC.

RURAL/METRO OF CALIFORNIA, INC.

RURAL/METRO OF CENTRAL ALABAMA, INC.

RURAL/METRO OF CENTRAL COLORADO, INC.

RURAL/METRO OF CENTRAL OHIO, INC.

RURAL/METRO OF GREATER SEATTLE, INC.

RURAL/METRO OF NEW YORK, INC.

RURAL/METRO OF NORTHERN CALIFORNIA, INC.

RURAL/METRO OF NORTHERN OHIO, INC.

RURAL/METRO OF OHIO, INC.

RURAL/METRO OF OREGON, INC.

RURAL/METRO OF ROCHESTER, INC.

RURAL/METRO OF SAN DIEGO, INC.

RURAL/METRO OF SOUTHERN CALIFORNIA, INC.

RURAL/METRO OF SOUTHERN OHIO, INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

S. FISHER & S. THOMAS INC.

SEMINOLE COUNTY AMBULANCE, INC.

SIOUX FALLS AMBULANCE, INC.

SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC.

SOUTHWEST AMBULANCE OF CASA GRANDE, INC.

SOUTHWEST AMBULANCE OF NEW MEXICO, INC.

SOUTHWEST AMBULANCE OF SOUTHEASTERN ARIZONA, INC.

SOUTHWEST AMBULANCE OF TUCSON, INC.

SOUTHWEST GENERAL SERVICES, INC.

SPRINGS AMBULANCE SERVICE, INC.

SSAG, LLC

STAT HEALTHCARE, INC.

SUNRISE HANDICAP TRANSPORT CORP.

SW GENERAL, INC.

T.M.S. MANAGEMENT GROUP INC.

TEK AMBULANCE, INC.

THE AID AMBULANCE COMPANY, INC.

THE AID COMPANY, INC.

TIDEWATER AMBULANCE SERVICE, INC.

TKG, INC.

TOWNS AMBULANCE SERVICE, INC.

TRANSPORTATION MANAGEMENT SERVICES OF BREVARD, INC.

TROUP COUNTY EMERGENCY MEDICAL SERVICES, INC.

VALLEY FIRE SERVICE, INC.

VELITA SMITH HOME HEALTH, INC.

V.I.P. PROFESSIONAL SERVICES, INC.

VISTA STAFFING SOLUTIONS, INC.

VITAL ENTERPRISES, INC.

W&W LEASING COMPANY, INC.

WP ROCKET HOLDINGS INC.

By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):
ACCESS 2 CARE, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Access 2 Care, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ACUTE MANAGEMENT, LLC
  By: HAWKEYE HOLDCO LLC, as Sole Member of Acute Management, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AGAPE HEALTH CARE AGENCY, LLC.
CARE CONNECTION OF CINCINNATI LLC
GEM CITY HOME CARE, LLC
GUARDIAN OHIO NEWCO, LLC
  By: GUARDIAN HEALTHCARE HOLDINGS, INC., as Sole Member of Agape Health Care Agency, LLC, Care Connection of Cincinnati LLC, Gem City Home Care, LLC and Guardian Ohio NewCo, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

ALPHA PHYSICIAN RESOURCES, L.L.C.

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE DELAWARE VALLEY, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE HPPP, LLC

  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response HPPP, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE OF MARICOPA, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

AMERICAN MEDICAL RESPONSE OF PIMA, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):
AMR BROCKTON, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
APEX ACQUISITION LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
BRAVO REIMBURSEMENT SPECIALIST, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
CMORX, LLC
  By: EMCARE, INC., as Sole Member of CMORx, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ED SOLUTIONS, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):
EDIMS, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMS MANAGEMENT LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMS OFFSHORE MEDICAL SERVICES, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMSC SERVICESCO, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EVERRAD, LLC
  By: TEMPLETON READINGS, LLC, as Sole Member of EverRad, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):
EVOLUTION HEALTH LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EVOLUTION MOBILE IMAGING, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
HAWKEYE HOLDCO LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MEDASSOCIATES, LLC
  By: EMCARE, INC., as Sole Member of MedAssociates, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MISSION CARE OF ILLINOIS, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Illinois, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

MISSION CARE OF MISSOURI, LLC

  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Missouri, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

MISSION CARE SERVICES, LLC

  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

MSO NEWCO, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

PHOENIX PHYSICIANS, LLC

STREAMLINED MEDICAL SOLUTIONS LLC

  By: EMCARE, INC., as Sole Member of Phoenix Physicians, LLC and Streamlined Medical Solutions LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

PINNACLE CONSULTANTS MID-ATLANTIC, L.L.C.

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

PROVEN HEALHCARE SOLUTIONS OF NEW JERSEY, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

PROVIDACARE, L.L.C.

  By: AMERICAN MEDICAL PATHWAYS, INC., as Sole Member of ProvidaCare, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

QRX MEDICAL MANAGEMENT, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Senior Vice President and Secretary

RMC CORPORATE CENTER, L.L.C.

  By: RURAL/METRO CORPORATION, as Member of RMC Corporate Center, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

RURAL/METRO MID-SOUTH, L.P.

  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro Mid-South, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

RURAL/METRO OF INDIANA, L.P.

  By: THE AID AMBULANCE COMPANY, INC., as General Partner of Rural/Metro of Indiana, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

RURAL/METRO OF TENNESSEE, L.P.

  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro of Tennessee, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

RURAL/METRO OPERATING COMPANY, LLC

  By: RURAL/METRO CORPORATION, as Sole Member of Rural/Metro Operating Company, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SAN DIEGO MEDICAL SERVICES ENTERPRISE, LLC
  By: RURAL/METRO OF SOUTHERN CALIFORNIA, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
  By: RURAL/METRO OF SAN DIEGO, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

REGIONAL EMERGENCY SERVICES, L.P.

  By: FLORIDA EMERGENCY PARTNERS, INC., as General Partner of Regional Emergency Services, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ROSE RADIOLOGY, LLC
  By: SPOTLIGHT HOLDCO LLC, as Sole Member of Rose Radiology, LLC
  By: EMCARE, INC., as Sole Member of EmCare, Inc.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

SEAWALL ACQUISITION, LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SPOTLIGHT HOLDCO LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

SUN DEVIL ACQUISITION LLC

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

TEMPLETON READINGS, LLC

  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

WHITAKER PHYSICIANS SERVICES, L.L.C.

  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


GUARANTORS (cont’d):

AMERICAN MEDICAL RESPONSE OF NEW YORK, LLC

  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response of New York, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

METROCARE SERVICES – ABILENE, L.P.

  By: AMR OF CENTRAL TEXAS II, LLC, as General Partner of MetroCare Services – Abilene, L.P.
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of AMR of Central Texas II, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

PATIENT ADVOCACY GROUP, LLC

  By: AMR HOLDCO, INC., as Sole Member of Patient Advocacy Group, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


ACKNOWLEDGEMENT

Deutsche Bank AG New York Branch, as ABL Agent under that certain Intercreditor Agreement dated as of May 25, 2011 (the “ Intercreditor Agreement ”) and Deutsche Bank AG New York Branch, as Term Loan Agent under the Intercreditor Agreement hereby acknowledge that the issuance of the Tranche C Term Loans will constitute Term Loan Obligations (as defined in the Intercreditor Agreement), under the Original Term Loan Credit Agreement (as defined in the Intercreditor Agreement).

 

DEUTSCHE BANK AG NEW YORK BRANCH

in its capacity as ABL Agent
By:  

/s/ Peter Cucchiara

Name:   Peter Cucchiara
Title:   Vice President
By:  

/s/ Dusan Lazarov

Name:   Dusan Lazarov
Title:   Director

DEUTSCHE BANK AG NEW YORK BRANCH

in its capacity as Term Loan Agent

By:  

/s/ Peter Cucchiara

Name:   Peter Cucchiara
Title:   Vice President
By:  

/s/ Dusan Lazarov

Name:   Dusan Lazarov
Title:   Director

 

[Signature Page to Seventh Amendment to Term Loan Credit Agreement]


Annex I

Schedule A-2

Tranche C Term Loan Commitments

 

JPMorgan Chase Bank, N.A.

   $2,676,930,416.35


Annex II

[See attached]


EXECUTION VERSION

 

 

 

$3,495,000,000

AMENDED AND RESTATED

CREDIT AGREEMENT

among

ENVISION HEALTHCARE CORPORATION,

as Borrower,

THE LENDERS

FROM TIME TO TIME PARTIES HERETO,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and Collateral Agent,

 

 

JPMORGAN CHASE BANK, N.A.

BARCLAYS BANK PLC

WELLS FARGO SECURITIES, LLC

and

SUNTRUST ROBINSON HUMPHREY, INC.,

as Joint Lead Arrangers

and

Joint Bookrunners

dated as of December 1, 2016

 

 

 

 

 


Table of Contents

 

         Page  

SECTION 1 Definitions

     2   

1.1

 

Defined Terms

     2   

1.2

 

Other Definitional Provisions

     69   

1.3

 

Effect of Restatement

     72   

SECTION 2 Amount and Terms of Commitments

     72   

2.1

 

Term Loans

     72   

2.2

 

Notes

     72   

2.3

 

[Reserved]

     73   

2.4

 

[Reserved]

     73   

2.5

 

Repayment of Loans

     73   

2.6

 

Incremental Facilities

     74   

2.7

 

Permitted Debt Exchanges

     77   

2.8

 

Extension of Term Loans

     79   

2.9

 

Specified Refinancing Facilities

     82   

SECTION 3 [Reserved]

     84   

SECTION 4 General Provisions Applicable to Loans

     84   

4.1

 

Interest Rates and Payment Dates

     84   

4.2

 

Conversion and Continuation Options

     85   

4.3

 

Minimum Amounts; Maximum Sets

     86   

4.4

 

Optional and Mandatory Prepayments

     86   

4.5

 

Administrative Agent’s Fee; Other Fees

     96   

4.6

 

Computation of Interest and Fees

     97   

4.7

 

Inability to Determine Interest Rate

     97   

4.8

 

Pro Rata Treatment and Payments

     98   

4.9

 

Illegality

     99   

4.10

 

Requirements of Law

     99   

4.11

 

Taxes

     101   

4.12

 

Indemnity

     106   

4.13

 

Certain Rules Relating to the Payment of Additional Amounts

     106   

SECTION 5 Representations and Warranties

     108   

5.1

 

Financial Condition

     108   

5.2

 

No Change; Solvent

     109   

5.3

 

Corporate Existence; Compliance with Law

     109   

5.4

 

Corporate Power; Authorization; Enforceable Obligations

     110   

5.5

 

No Legal Bar

     110   

5.6

 

No Material Litigation

     111   

 

(i)


Table of Contents

(continued)

 

         Page  

5.7

 

No Default

     111   

5.8

 

Ownership of Property; Liens

     111   

5.9

 

Intellectual Property

     111   

5.10

 

Taxes

     111   

5.11

 

Federal Regulations

     112   

5.12

 

ERISA

     112   

5.13

 

Collateral

     113   

5.14

 

Investment Company Act; Other Regulations

     113   

5.15

 

Subsidiaries

     113   

5.16

 

Purpose of Loans

     114   

5.17

 

Environmental Matters

     114   

5.18

 

No Material Misstatements

     115   

5.19

 

Labor Matters

     115   

5.20

 

Insurance

     115   

5.21

 

Anti-Terrorism

     115   

SECTION 6 Conditions Precedent

     116   

6.1

 

[Reserved]

     116   

6.2

 

Conditions to Each Extension of Credit After the Restatement Effective Date

     116   

SECTION 7 Affirmative Covenants

     117   

7.1

 

Financial Statements

     117   

7.2

 

Certificates; Other Information

     118   

7.3

 

Payment of Obligations

     119   

7.4

 

Conduct of Business and Maintenance of Existence; Compliance with Contractual Obligations and Requirements of Law

     119   

7.5

 

Maintenance of Property; Insurance

     119   

7.6

 

Inspection of Property; Books and Records; Discussions

     120   

7.7

 

Notices

     121   

7.8

 

Environmental Laws

     123   

7.9

 

After-Acquired Real Property and Fixtures; Subsidiaries

     123   

7.10

 

[Reserved]

     126   

7.11

 

Use of Proceeds

     126   

7.12

 

[Reserved]

     126   

7.13

 

[Reserved]

     126   

7.14

 

Commercially Reasonable Efforts to Maintain Ratings

     126   

7.15

 

Accounting Changes

     126   

SECTION 8 Negative Covenants

     127   

8.1

 

Limitation on Indebtedness

     127   

8.2

 

Limitation on Restricted Payments

     133   

 

(ii)


Table of Contents

(continued)

 

         Page  

8.3

 

Limitation on Restrictive Agreements

     137   

8.4

 

Limitation on Sales of Assets and Subsidiary Stock

     139   

8.5

 

Limitations on Transactions with Affiliates

     142   

8.6

 

Limitation on Liens

     143   

8.7

 

Limitation on Fundamental Changes

     144   

8.8

 

Change of Control; Limitation on Amendments

     146   

8.9

 

Limitation on Lines of Business

     146   

SECTION 9 Events of Default

     147   

9.1

 

Events of Default

     147   

9.2

 

Remedies Upon an Event of Default

     149   

SECTION 10 The Agents and the Other Representatives

     150   

10.1

 

Appointment

     150   

10.2

 

The Administrative Agent and Affiliates

     150   

10.3

 

Action by an Agent

     151   

10.4

 

Exculpatory Provisions

     151   

10.5

 

Acknowledgement and Representations by Lenders

     152   

10.6

 

Indemnity; Reimbursement by Lenders

     153   

10.7

 

Right to Request and Act on Instructions; Reliance

     153   

10.8

 

Collateral Matters

     154   

10.9

 

Successor Agent

     156   

10.10

 

Former Agent

     157   

10.11

 

Withholding Tax

     157   

10.12

 

Other Representatives

     157   

10.13

 

[Reserved]

     157   

10.14

 

Application of Proceeds

     158   

SECTION 11 Miscellaneous

     158   

11.1

 

Amendments and Waivers

     158   

11.2

 

Notices

     162   

11.3

 

No Waiver; Cumulative Remedies

     164   

11.4

 

Survival of Representations and Warranties

     164   

11.5

 

Payment of Expenses and Taxes

     164   

11.6

 

Successors and Assigns; Participations and Assignments

     165   

11.7

 

Adjustments; Set-off; Calculations; Computations

     171   

11.8

 

Judgment

     172   

11.9

 

Counterparts

     173   

11.10

 

Severability

     173   

11.11

 

Integration

     173   

11.12

 

Governing Law

     173   

 

(iii)


Table of Contents

(continued)

 

         Page  

11.13

 

Submission to Jurisdiction; Waivers

     173   

11.14

 

Acknowledgements

     174   

11.15

 

Waiver of Jury Trial

     174   

11.16

 

Confidentiality

     175   

11.17

 

Incremental Indebtedness; Additional Indebtedness

     176   

11.18

 

USA PATRIOT Act Notice

     176   

11.19

 

Electronic Execution of Assignments and Certain Other Documents

     176   

11.20

 

Reinstatement

     177   

11.21

 

Acknowledgement and Consent to Bail-In of EEA Financial Institutions

     177   

11.22

 

Agency Assignment

     178   

 

(iv)


SCHEDULES

A

 

  

[Reserved]

1.1(c)

 

  

Assumed Indebtedness

1.1(d)

 

  

Existing Capitalized Lease Obligations

1.1(e)

 

  

Existing Liens

1.1(f)

 

  

Existing Investments

5.1

 

  

Financial Condition

5.2

 

  

Material Adverse Effect Disclosure

5.3

 

  

Good Standing Disclosure

5.4

 

  

Consents Required

5.6

 

  

Litigation

5.8

 

  

Real Property

5.9

 

  

Intellectual Property Claims

5.15

 

  

Subsidiaries

5.17

 

  

Environmental Matters

5.20

 

  

Insurance

7.2

 

  

Website Address for Electronic Financial Reporting

8.1

 

  

Existing Indebtedness

8.5

 

  

Affiliate Transactions

EXHIBITS

A

 

  

Form of Note

B

 

  

[Reserved]

C

 

  

Form of Mortgage

D

 

  

Form of U.S. Tax Compliance Certificate

E

 

  

Form of Assignment and Acceptance

F

 

  

Form of Secretary’s Certificate

G

 

  

Form of Officer’s Certificate

H

 

  

Form of Solvency Certificate

I-1

 

  

Form of Increase Supplement

I-2

 

  

Form of Lender Joinder Agreement

J-1

 

  

[Reserved]

J-2

 

  

[Reserved]

J-3

 

  

[Reserved]

J-4

 

  

[Reserved]

J-5

 

  

[Reserved]

J-6

 

  

[Reserved]

J-7

 

  

[Reserved]

K

 

  

[Reserved]

L

 

  

Form of Junior Lien Intercreditor Agreement

M

 

  

Form of Affiliated Lender Assignment and Assumption

N

 

  

Form of Acceptance and Prepayment Notice

O

 

  

Form of Discount Range Prepayment Notice

P

 

  

Form of Discount Range Prepayment Offer

 

(v)


Q

 

  

Form of Solicited Discounted Prepayment Notice

R

 

  

Form of Solicited Discounted Prepayment Offer

S

 

  

Form of Specified Discount Prepayment Notice

T

 

  

Form of Specified Discount Prepayment Response

 

(vi)


AMENDED AND RESTATED TERM LOAN CREDIT AGREEMENT, dated as of December 1, 2016, as may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, among Envision Healthcare Corporation, a Delaware corporation (as further defined in Subsection 1.1 , the “ Borrower ”), the several banks and other financial institutions from time to time party to this Agreement (as further defined in Subsection 1.1 , the “ Lenders ”) and JPMorgan Chase Bank, N.A. (“JPMCB”), as administrative agent and collateral agent for the Lenders hereunder (in such capacities, respectively, and as further defined in Subsection 1.1 , the “ Administrative Agent ” and the “ Collateral Agent ”).

The parties hereto hereby agree as follows:

W   I   T   N   E   S   S   E   T   H :

WHEREAS, the Borrower is party to that certain Term Loan Credit Agreement, dated as of May 25, 2011 (as amended by Amendment No. 1, dated as of February 7, 2013, Amendment No. 2, dated as of February 10, 2015, Amendment No. 3, dated as of October 28, 2015, Amendment No. 4, dated as of November 12, 2015, Amendment No. 5, dated as of January 26, 2016, Amendment No. 6, dated as of July 25, 2016 and as further amended, supplemented, waived or otherwise modified prior to the Restatement Effective Date (as defined below), the “ Original Credit Agreement ”);

WHEREAS, on the Seventh Amendment Effective Date, the Lenders party to the Seventh Amendment made the Tranche C Term Loans available to the Borrower and a portion of the proceeds of the Tranche C Term Loans were used to refinance all Term Loans outstanding under the Original Credit Agreement that were not exchanged for Tranche C Term Loans;

WHEREAS, following the Incremental Credit Agreement Amendments Effective Time (as defined in the Seventh Amendment) and the Prepayment (as defined in the Seventh Amendment), the Lenders party to the Seventh Amendment constitute all of the Lenders under the Original Credit Agreement;

WHEREAS, the Administrative Agent and the Lenders have agreed to amend and restate the Original Credit Agreement in its entirety to read as set forth in this Agreement, and it has been agreed by such parties that the Loans outstanding as of the Restatement Effective Date and other “Term Loan Obligations” under and as defined in the Original Credit Agreement shall be governed by and deemed to be outstanding under this Agreement with the intent that the terms of the Original Credit Agreement shall hereafter have no further effect upon the parties thereto, and all references to the “Credit Agreement” in any Loan Document or other document or instrument delivered in connection therewith shall be deemed to refer to this Agreement and the provisions hereof;


NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, the parties hereto agree as follows:

SECTION 1

Definitions

1.1 Defined Terms . As used in this Agreement, the following terms shall have the following meanings:

2016 Merger Agreement ”: that certain Agreement and Plan of Merger among Envision Healthcare Holdings, Inc., AmSurg Corp., a Tennessee corporation, and New Amethyst Corp., a Delaware corporation and a wholly owned subsidiary of AmSurg Corp., pursuant to which AmSurg Corp. and Envision Healthcare Holdings, Inc. will combine in an all stock merger of equals.

2016 Mergers ”: the consummation of the Mergers (as defined in the 2016 Merger Agreement) and all other transactions relating to any of the foregoing (including payment of fees and expenses related thereto).

ABL Agent ”: Deutsche Bank AG New York Branch, in its capacity as administrative agent and collateral agent under the ABL Facility Documents, or any successor administrative agent or collateral agent under the ABL Facility Documents.

ABL Facility Documents ”: the “Loan Documents” as defined in the Senior ABL Facility Agreement, as the same may be amended, supplemented, waived, otherwise modified, extended, renewed, refinanced or replaced from time to time.

ABL Facility Loans ”: the loans borrowed under the Senior ABL Facility.

ABL Priority Collateral ”: as defined in the ABL/Term Loan Intercreditor Agreement whether or not the same remains in full force and effect.

ABL/Term Loan Intercreditor Agreement ”: the Intercreditor Agreement, dated as of the Closing Date, between the Collateral Agent (as successor to Deutsche Bank AG New York Branch as “Collateral Agent” under the Original Credit Agreement) and the ABL Agent (in its capacity as collateral agent under the ABL Facility Documents), and acknowledged by certain of the Loan Parties, as the same may be amended, supplemented, waived or otherwise modified from time to time in accordance with the terms hereof and thereof.

ABR ”: when used in reference to any Loan or Borrowing, is used when such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

ABR Loans ”: Loans to which the rate of interest applicable is based upon the Alternate Base Rate.

Acceleration ”: as defined in Subsection 9.1(e) .

Acceptable Discount ”: as defined in Subsection 4.4(h)(iv)(2) .

 

-2-


Acceptable Prepayment Amount ”: as defined in Subsection 4.4(h)(iv)(3) .

Acceptance and Prepayment Notice ”: a written notice from the Borrower setting forth the Acceptable Discount pursuant to Subsection 4.4(h)(iv)(2) substantially in the form of Exhibit N .

Acceptance Date ”: as defined in Subsection 4.4(h)(iv)(2) .

Accounts ”: “accounts” as defined in the UCC (including any “health-care-insurance receivables” as defined in the UCC) and, with respect to any Person, all such Accounts of such Person, whether now existing or existing in the future, including ( a ) all accounts receivable of such Person (whether or not specifically listed on schedules furnished to the Administrative Agent), including all accounts receivable created by or arising from all of such Person’s sales of goods or rendition of services made under any of its trade names, or through any of its divisions, ( b ) all unpaid rights of such Person (including rescission, replevin, reclamation and stopping in transit) relating to the foregoing or arising therefrom, ( c ) all rights to any goods represented by any of the foregoing, including returned or repossessed goods, ( d ) all reserves and credit balances held by such Person with respect to any such accounts receivable of any Obligors, ( e ) all letters of credit, guarantees or collateral for any of the foregoing and ( f ) all insurance policies or rights relating to any of the foregoing.

Acquired Indebtedness ”: Indebtedness of a Person ( i ) existing at the time such Person becomes a Subsidiary or ( ii ) assumed in connection with the acquisition of assets from such Person, in each case other than Indebtedness Incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such acquisition. Acquired Indebtedness shall be deemed to be Incurred on the date of the related acquisition of assets from any Person or the date the acquired Person becomes a Subsidiary.

Additional ABL Credit Facility ”: as defined in the ABL/Term Loan Intercreditor Agreement.

Additional Assets ”: ( i ) any property or assets that replace the property or assets that are the subject of an Asset Disposition; ( ii ) any property or assets (other than Indebtedness and Capital Stock) used or to be used by the Borrower or a Restricted Subsidiary or otherwise useful in a Related Business (including any capital expenditures in respect of any property or assets already so used); ( iii ) the Capital Stock of a Person that is engaged in a Related Business and becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Borrower or another Restricted Subsidiary; or ( iv ) Capital Stock of any Person that at such time is a Restricted Subsidiary acquired from a third party.

Additional Indebtedness ”: as defined in the ABL/Term Loan Intercreditor Agreement or the Junior Lien Intercreditor Agreement, as applicable.

Additional Lender ”: as defined in Subsection 2.6(b) .

Additional Obligations ”: subordinated or senior Indebtedness (which Indebtedness may be ( x ) unsecured, ( y ) secured by a Lien ranking pari passu to the Lien securing the First Lien Obligations or ( z ) secured by a Lien ranking junior to the Lien securing

 

-3-


the First Lien Obligations), including customary bridge financings, in each case issued or incurred by the Borrower or a Guarantor, the terms of which Indebtedness ( i ) do not provide for a maturity date or weighted average life to maturity earlier than the Maturity Date of the Initial Term Loans or shorter than the remaining weighted average life to maturity of the Initial Term Loans, as the case may be (other than an earlier maturity date and/or shorter weighted average life to maturity for customary revolving financings and customary bridge financings, which, in the case of bridge financings, subject to customary conditions, would either be automatically converted into or required to be exchanged for permanent financing which does not provide for an earlier maturity date or a shorter weighted average life to maturity than the Maturity Date of the Initial Term Loans or the remaining weighted average life to maturity of the Initial Term Loans, as applicable), ( ii ) to the extent such Indebtedness is subordinated, provide for customary payment subordination to the Term Loan Facility Obligations under the Loan Documents as reasonably determined by the Borrower in good faith and ( iii ) do not provide for any mandatory repayment or redemption from asset sales, casualty or condemnation events or excess cash flow on more than a ratable basis with Term Loans (other than ( x ) in the case of any customary revolving facility, prepayments in such amount necessary to reduce amounts outstanding thereunder to an amount not in excess of the facility or any applicable sub-facility and ( y ) in the case of any customary bridge financing, prepayments of such bridge financing from the issuance of equity or other Indebtedness permitted hereunder which meets the requirements of this definition); provided that ( a ) such Indebtedness shall not be secured by any Lien on any asset of any Loan Party that does not also secure the Term Loan Facility Obligations, or be guaranteed by any Person other than the Guarantors, and ( b ) if secured by Collateral, such Indebtedness (and all related Obligations) shall be subject to the terms of the ABL/Term Loan Intercreditor Agreement (if such Indebtedness and related Obligations constitute First Lien Obligations), the Junior Lien Intercreditor Agreement (if such Indebtedness and related Obligations do not constitute First Lien Obligations) or an Other Intercreditor Agreement (if otherwise agreed by the Administrative Agent and the Borrower).

Additional Obligations Documents ”: any document or instrument (including any guarantee, security agreement or mortgage and which may include any or all of the Loan Documents) issued or executed and delivered with respect to any Additional Obligations or Rollover Indebtedness by any Loan Party.

Additional Specified Refinancing Lender ”: as defined in Subsection 2.9(b) .

Adjusted LIBOR Rate ”: with respect to any Borrowing of Eurodollar Loans for any Interest Period, an interest rate per annum (rounded upward, if necessary, to the nearest 1/100th of 1.00%) determined by the Administrative Agent to be equal to the higher of ( a ) ( i ) the LIBOR Rate for such Borrowing of Eurodollar Loans in effect for such Interest Period divided by ( ii ) 1 minus the Statutory Reserves (if any) for such Borrowing of Eurodollar Loans for such Interest Period and ( b ) in respect of the Initial Term Loans, 0.75%.

Administrative Agent ”: as defined in the Preamble hereto and shall include any successor to the Administrative Agent appointed pursuant to Subsection 10.9 ; provided that, with respect to periods prior to the Restatement Effective Time (and the activities of the Former Agent prior to such time), such term shall include the Former Agent. For purposes of all rights and immunities of the “Administrative Agent”, under and/or as set forth in Sections 10 and 11 ,

 

-4-


such term shall also include the Former Agent in connection with any actions taken or required to be taken by such Former Agent after the Restatement Effective Time in connection with the Agency Transfer Agreement, Section 11.22 of the Restated Credit Agreement or Sections 9 or 12 of the Seventh Amendment.

Administrative Questionnaire ”: an Administrative Questionnaire in a form supplied by the Administrative Agent.

Affected Eurodollar Rate ”: as defined in Subsection 4.7 .

Affected Loans ”: as defined in Subsection 4.9 .

Affiliate ”: as to any specified Person, any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “ controlling ” and “ controlled ” have meanings correlative to the foregoing.

Affiliate Transaction ”: as defined in Subsection 8.5(a) .

Affiliated Lender Assignment and Assumption ”: as defined in Subsection 11.6(h)(i)(1) .

Agency Transfer Agreement ”: the Agency Transfer Agreement, dated as of the Restatement Effective Date, by and among the Borrower, JPMorgan Chase Bank, N.A. and Deutsche Bank AG New York Branch.

Agent Default ”: an Agent has admitted in writing that it is insolvent or such Agent becomes subject to an Agent-Related Distress Event.

Agent-Related Distress Event ”: with respect to any Agent (each, a “ Distressed Person ”), a voluntary or involuntary case with respect to such Distressed Person under any debt relief law, or a custodian, conservator, receiver or similar official is appointed for such Distressed Person or any substantial part of such Distressed Person’s assets, or such Distressed Person is subject to a Bail-In Action or makes a general assignment for the benefit of creditors or is otherwise adjudicated as, or determined by any Governmental Authority having regulatory authority over such Distressed Person to be, insolvent or bankrupt; provided that an Agent-Related Distress Event shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any equity interests in any Agent or any person that directly or indirectly controls such Agent by a Governmental Authority or an instrumentality thereof.

Agents ”: the collective reference to the Administrative Agent and the Collateral Agent and “ Agent ” shall mean any of them. For purposes of all rights and immunities of the “Agents”, under and/or as set forth in Sections 10 and 11 , such term shall also include the Former Agent in connection with any actions taken or required to be taken by such Former Agent after the Restatement Effective Time in connection with the Agency Transfer Agreement, Section 11.22 of the Restated Credit Agreement or Sections 9 or 12 of the Seventh Amendment.

 

-5-


Agreement ”: this Credit Agreement, as amended, supplemented, waived or otherwise modified, from time to time.

Alternate Base Rate ”: for any day, a rate per annum equal to the greatest of ( a ) the Prime Rate in effect on such day, ( b ) the NYFRB Rate in effect on such day plus  1 2 of 1%, ( c ) the Adjusted LIBOR Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, the Adjusted LIBOR Rate for any day shall be based on the LIBOR Rate at approximately 11:00 a.m. London time on such day and (d) with respect to the Initial Term Loans, 1.75%. Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBOR Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBOR Rate, respectively.

Amendment ”: as defined in Subsection 8.3(c) .

AmSurg ”: AmSurg Corp., a Tennessee corporation.

Anti-Corruption Laws ”: the Foreign Corrupt Practices Act of 1977, as amended.

Applicable Discount ”: as defined in Subsection 4.4(h)(iii)(2) .

Applicable Margin ”: in respect of Initial Term Loans, a percentage per annum equal to 3.00% per annum for Eurodollar Loans, and 2.00% per annum for ABR Loans.

Approved Fund ”: as defined in Subsection 11.6(b) .

Asset Disposition ”: any sale, lease, transfer or other disposition of shares of Capital Stock of a Restricted Subsidiary (other than directors’ qualifying shares, or (in the case of a Foreign Subsidiary) to the extent required by applicable Requirement of Law), property or other assets (each referred to for the purposes of this definition as a “ disposition ”) by the Borrower or any of its Restricted Subsidiaries (including any disposition by means of a merger, consolidation or similar transaction) other than ( i ) a disposition to the Borrower or a Restricted Subsidiary, ( ii ) a disposition in the ordinary course of business, ( iii ) a disposition of Cash Equivalents, Investment Grade Securities or Temporary Cash Investments, ( iv ) the sale or discount (with or without recourse, and on customary or commercially reasonable terms, as determined by the Borrower in good faith) of accounts receivable or notes receivable arising in the ordinary course of business, or the conversion or exchange of accounts receivable for notes receivable, ( v ) any Restricted Payment Transaction, ( vi ) a disposition that is governed by Subsection 8.7 , ( vii ) any Financing Disposition, ( viii ) any “fee in lieu” or other disposition of assets to any Governmental Authority that continue in use by the Borrower or any Restricted Subsidiary, so long as the Borrower or any Restricted Subsidiary may obtain title to such assets upon reasonable notice by paying a nominal fee, ( ix ) any exchange of property pursuant to or intended to qualify under Section 1031 (or any successor section) of the Code, or any exchange of equipment to be leased, rented or otherwise used in a Related Business, ( x ) any financing transaction with respect to property built or acquired by the Borrower or any Restricted Subsidiary after the Restatement Effective Date, including without limitation any sale/leaseback transaction or asset securitization, ( xi ) any disposition arising from foreclosure, condemnation, eminent domain, or similar action with respect to any property or other assets, or exercise of

 

-6-


termination rights under any lease, license, concession or other agreement, or, in the case of a Person, business or assets acquired or to be acquired in an acquisition, necessary or advisable (as determined by the Borrower in good faith) in order to consummate the acquisition of such Person, business or assets, or pursuant to buy/sell arrangements under any joint venture or similar agreement or arrangement, or of non-core assets acquired in connection with any acquisition of any Person, business or assets or any Investment, ( xii ) any disposition of Capital Stock, Indebtedness or other securities of an Unrestricted Subsidiary, ( xiii ) a disposition of Capital Stock of a Restricted Subsidiary pursuant to an agreement or other obligation with or to a Person (other than the Borrower or a Restricted Subsidiary) from whom such Restricted Subsidiary was acquired, or from whom such Restricted Subsidiary acquired its business and assets (having been newly formed in connection with such acquisition), entered into in connection with such acquisition, ( xiv ) a disposition of not more than 5.00% of the outstanding Capital Stock of a Foreign Subsidiary that has been approved by the Board of Directors, ( xv ) any disposition or series of related dispositions for aggregate consideration not to exceed the greater of $100.0 million and 0.66% of Consolidated Total Assets, ( xvi ) the abandonment or other disposition of patents, trademarks or other intellectual property that are, in the reasonable judgment of the Borrower, no longer economically practicable to maintain or useful in the conduct of the business of the Borrower and its Subsidiaries taken as a whole, ( xvii ) any license, sublicense or other grant of right-to-use of any trademark, copyright, patent or other intellectual property, ( xviii ) any disposition arising from foreclosure or similar action with respect to any property or assets subject to a Municipal Contract Lien, ( xix ) the conversion of any Restricted Subsidiary into a Related Professional Corporation in a manner consistent with past practices on or prior to the Restatement Effective Date or in the ordinary course of business, including the entry into applicable Related Corporation Contracts in connection therewith or ( xx ) the creation or granting of any Lien permitted under this Agreement.

Assignee ”: as defined in Subsection 11.6(b)(i) .

Assignment and Acceptance ”: an Assignment and Acceptance, substantially in the form of Exhibit E hereto.

Assumed Indebtedness ”: Indebtedness for borrowed money of the Borrower and its Restricted Subsidiaries outstanding on the Restatement Effective Date and disclosed on Schedule 1.1(c) .

Bail-In Action ”: the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

Bail-In Legislation ”: with respect to any EEA Member Country implementing Article 55 of the Bank Recovery and Resolution Directive, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

Bank Products Agreement ”: any agreement pursuant to which a bank or other financial institution agrees to provide ( a ) treasury services, ( b ) credit card, merchant card, purchasing card or stored value card services (including, without limitation, the processing of payments and other administrative services with respect thereto), ( c ) cash management services (including, without limitation, controlled disbursements, automated clearinghouse transactions,

 

-7-


return items, netting, overdrafts, depository, lockbox, stop payment, electronic funds transfer, information reporting, wire transfer and interstate depository network services) and ( d ) other banking products or services as may be requested by any Restricted Subsidiary (other than letters of credit and other than loans and advances except indebtedness arising from services described in clauses (a) through (c) of this definition).

Bank Products Obligations ”: of any Person means the obligations of such Person pursuant to any Bank Products Agreement.

Bank Recovery and Resolution Directive ”: Directive 2014/59/EU of the European Parliament and of the Council of the European Union.

Bankruptcy Proceeding ”: as defined in Subsection 11.6(h)(iv) .

Benefited Lender ”: as defined in Subsection 11.7(a) .

Board ”: the Board of Governors of the Federal Reserve System.

Board of Directors ”: for any Person, the board of directors or other governing body of such Person or, if such Person does not have such a board of directors or other governing body and is owned or managed by a single entity, the Board of Directors of such entity, or, in either case, any committee thereof duly authorized to act on behalf of such Board of Directors. Unless otherwise provided, “Board of Directors” means the Board of Directors of the Borrower.

Borrower ”: as defined in the Preamble hereto, and any successor in interest thereto.

Borrower Offer of Specified Discount Prepayment ”: the offer by the Borrower to make a voluntary prepayment of Term Loans at a specified discount to par pursuant to Subsection 4.4(h)(ii) .

Borrower Solicitation of Discount Range Prepayment Offers ”: the solicitation by the Borrower of offers for, and the corresponding acceptance by a Lender of a voluntary prepayment of Term Loans at a specified range at a discount to par pursuant to Subsection 4.4(h)(iii) .

Borrower Solicitation of Discounted Prepayment Offers ”: the solicitation by the Borrower of offers for, and the subsequent acceptance, if any, by a Lender of a voluntary prepayment of Term Loans at a discount to par pursuant to Subsection 4.4(h)(iv) .

Borrowing ”: the borrowing of one Type of Loans of a given Tranche from all the Lenders having Initial Term Loan Commitments, on a given date (or resulting from a conversion or conversions on such date) having, in the case of Eurodollar Loans, the same Interest Period.

Borrowing Base ”: the sum of ( 1 ) 50.0% of the book value of Inventory of the Borrower and its Restricted Subsidiaries, ( 2 ) 80.0% of the net trade and other accounts receivables of the Borrower and its Restricted Subsidiaries (as reported on the consolidated

 

-8-


balance sheet of the Borrower in accordance with GAAP), and ( 3 ) cash, Cash Equivalents and Temporary Cash Investments of the Borrower and its Restricted Subsidiaries (in each case, determined as of the end of the most recently ended fiscal month of the Borrower for which internal consolidated financial statements of the Borrower are available, and, in the case of any determination relating to any Incurrence of Indebtedness, on a pro forma basis including ( x ) any property or assets of a type described above acquired since the end of such fiscal month and ( y ) any property or assets of a type described above being acquired in connection therewith).

Borrowing Date ”: any Business Day specified in a notice delivered pursuant to Subsection 2.3 as a date on which the Borrower requests the Lenders to make Loans hereunder.

Business Day ”: a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to close, except that, when used in connection with a Eurodollar Loan, “Business Day” shall mean any Business Day on which dealings in Dollars between banks may be carried on in London, England and New York, New York.

Capital Expenditures ”: for any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities and including in all events all amounts expended or capitalized under leases evidencing Capitalized Lease Obligations) by the Borrower and the Restricted Subsidiaries during such period that, in conformity with GAAP, are or are required to be included as capital expenditures on a consolidated statement of cash flows of the Borrower.

Capital Stock ”: as to any Person, any and all shares or units of, rights to purchase, warrants or options for, or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity.

Capitalized Lease Obligation ”: an obligation that is required to be classified and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP. The Stated Maturity of any Capitalized Lease Obligation shall be the date of the last payment of rent or any other amount due under the related lease.

Captive Insurance Subsidiary ”: any Subsidiary of the Borrower that is subject to regulation as an insurance company (or any Subsidiary thereof), including EMCA Insurance Company Ltd. and Marblehead Surety & Reinsurance Company, Ltd.

Cash Capped Incremental Facility ”: as defined in the definition of “Maximum Incremental Facilities Amount”.

Cash Equivalents ”: any of the following: ( a ) money; ( b ) securities issued or fully guaranteed or insured by the United States of America or a member state of the European Union or any agency or instrumentality of any thereof; ( c ) time deposits, certificates of deposit or bankers’ acceptances of ( i ) any bank or other institutional lender under this Agreement or the Senior ABL Facility or any affiliate thereof or ( ii ) any commercial bank having capital and surplus in excess of $500.0 million (or the foreign currency equivalent thereof as of the date of such investment) and the commercial paper of the holding company which is rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s (or if at such

 

-9-


time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency); ( d ) repurchase obligations with a term of not more than seven (7) days for underlying securities of the types described in clauses (b) and (c) above entered into with any financial institution meeting the qualifications specified in clause (c) above; ( e ) money market instruments, commercial paper or other short-term obligations rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency); ( f ) investments in money market funds subject to the risk limiting conditions of Rule 2a-7 or any successor rule of the SEC under the Investment Company Act of 1940, as amended; ( g ) investments similar to any of the foregoing denominated in foreign currencies approved by the Board of Directors; and ( h ) solely with respect to any Captive Insurance Subsidiary, any investment that person is permitted to make in accordance with applicable law.

CHAMPVA ”: 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, without limitation, ( a ) all federal statutes (whether set forth in 38 U.S.C. § 1713 or elsewhere) affecting such program to the extent applicable to CHAMPVA and ( b ) all rules, regulations (including 38 C.F.R. § 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 in Law ”: as defined in Subsection 4.11(a) .

Change of Control ”: ( i ) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act as in effect on the Closing Date), shall be the “beneficial owner” of ( A ) so long as the Borrower is a Subsidiary of any Parent Entity, shares of Voting Stock having more than 35.0% of the total voting power of all outstanding shares of such Parent Entity (other than a Parent Entity that is a Subsidiary of another Parent Entity) and ( B ) if the Borrower is not a Subsidiary of any Parent Entity, shares of Voting Stock having more than 35.0% of the total voting power of all outstanding shares of the Borrower; or ( ii ) a “Change of Control” as defined in the Senior ABL Facility Agreement or the Senior Notes Indenture (or any indenture or agreement governing Refinancing Indebtedness in respect of the Senior Notes, in each case relating to Indebtedness in an aggregate principal amount equal to or greater than $150.0 million). Notwithstanding anything to the contrary in the foregoing, the Transactions shall not constitute or give rise to a Change of Control.

Claim ”: as defined in Subsection 11.6(h)(iv) .

Closing Date ”: May 25, 2011.

Code ”: the Internal Revenue Code of 1986, as amended from time to time.

Collateral ”: all assets of the Loan Parties, now owned or hereafter acquired, upon which a Lien is purported to be created by any Security Document.

 

-10-


Collateral Agent ”: as defined in the Preamble hereto and shall include any successor to the Collateral Agent appointed pursuant to Subsection 10.9 ; provided that with respect to periods prior to the Restatement Effective Time (and the activities of the Former Agent prior to such time), such term shall include the Former Agent. For purposes of all rights and immunities of the “Collateral Agent”, under and/or as set forth in Sections 10 and 11 , such term shall also include the Former Agent in connection with any actions taken or required to be taken by such Former Agent after the Restatement Effective Time in connection with the Agency Transfer Agreement, Section 11.22 of the Restated Credit Agreement or Sections 9 or 12 of the Seventh Amendment.

Commodities Agreement ”: in respect of a Person, any commodity futures contract, forward contract, option or similar agreement or arrangement (including derivative agreements or arrangements), as to which such Person is a party or beneficiary.

Commonly Controlled Entity ”: an entity, whether or not incorporated, which is under common control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group which includes the Borrower and which is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Sections 414(m) and (o) of the Code.

Compliance Certificate ”: as defined in Subsection 7.2(b) .

Conduit Lender ”: any special purpose corporation organized and administered by any Lender for the purpose of making Loans otherwise required to be made by such Lender and designated by such Lender in a written instrument delivered to the Administrative Agent (a copy of which shall be provided by the Administrative Agent to the Borrower on request); provided that the designation by any Lender of a Conduit Lender shall not relieve the designating Lender of any of its obligations under this Agreement, including its obligation to fund a Term Loan if, for any reason, its Conduit Lender fails to fund any such Loan, and the designating Lender (and not the Conduit Lender) shall have the sole right and responsibility to deliver all consents and waivers required or requested under this Agreement with respect to its Conduit Lender, and provided , further , that no Conduit Lender shall ( a ) be entitled to receive any greater amount pursuant to any provision of this Agreement, including without limitation Subsection 4.10 , 4.11 , 4.12 or 11.5 , than the designating Lender would have been entitled to receive in respect of the extensions of credit made by such Conduit Lender if such designating Lender had not designated such Conduit Lender hereunder, ( b ) be deemed to have any Initial Term Loan Commitment or ( c ) be designated if such designation would otherwise increase the costs of any Facility to the Borrower.

Confidential Healthcare Information ”: as defined in Subsection 7.6(b) .

Confidential Information Memorandum ”: that certain Confidential Information Memorandum dated November, 2016, and furnished to the Lenders.

Consolidated Coverage Ratio ”: as of any date of determination, the ratio of ( i ) the aggregate amount of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated

 

-11-


financial statements of the Borrower are available, to ( ii ) Consolidated Interest Expense for such four fiscal quarters (in each of the foregoing clauses (i) and (ii), determined for any fiscal quarter (or portion thereof) ending prior to the Restatement Effective Date, on a pro forma basis to give effect to the Transactions as if they had occurred at the beginning of such four-quarter period); provided that:

(1) if, since the beginning of such period, the Borrower or any Restricted Subsidiary has Incurred any Indebtedness that remains outstanding on such date of determination or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred or issued, as applicable, on the first day of such period (except that in making such computation, the amount of Indebtedness under any revolving credit facility outstanding on the date of such calculation shall be computed based on ( A ) the average daily balance of such Indebtedness during such four fiscal quarters or such shorter period for which such facility was outstanding or ( B ) if such facility was created after the end of such four fiscal quarters, the average daily balance of such Indebtedness during the period from the date of creation of such facility to the date of such calculation),

(2) if, since the beginning of such period, the Borrower or any Restricted Subsidiary has repaid, repurchased, redeemed, defeased or otherwise acquired, retired or discharged any Indebtedness that is no longer outstanding on such date of determination (each, a “ Discharge ”) or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio involves a Discharge of Indebtedness (in each case other than Indebtedness Incurred under any revolving credit facility unless such Indebtedness has been permanently repaid), Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving effect on a pro forma basis to such Discharge of Indebtedness, including with the proceeds of such new Indebtedness, as if such Discharge had occurred on the first day of such period,

(3) if, since the beginning of such period, the Borrower or any Restricted Subsidiary shall have disposed of any company, any business or any group of assets constituting an operating unit of a business, including any such disposition occurring in connection with a transaction causing a calculation to be made hereunder, or designated any Restricted Subsidiary as an Unrestricted Subsidiary (any such disposition or designation, a “ Sale ”), the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period and Consolidated Interest Expense for such period shall be reduced by an amount equal to ( A ) the Consolidated Interest Expense attributable to any Indebtedness of the Borrower or any Restricted Subsidiary repaid, repurchased, redeemed, defeased or otherwise acquired, retired or discharged with respect to the Borrower and its continuing Restricted Subsidiaries in connection with such Sale for such period (including but not limited to the assumption of such Indebtedness by another Person) plus ( B ) if the Capital Stock of any Restricted Subsidiary is disposed of in such Sale or any Restricted Subsidiary is designated as an Unrestricted Subsidiary, the Consolidated Interest Expense for such period attributable to the Indebtedness of such Restricted Subsidiary to the extent the Borrower and its continuing Restricted Subsidiaries are no longer liable for such Indebtedness after such Sale,

 

-12-


(4) if, since the beginning of such period, the Borrower or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made an Investment in any Person that thereby becomes a Restricted Subsidiary, or otherwise acquired any company, any business or any group of assets constituting an operating unit of a business, including any such Investment or acquisition occurring in connection with a transaction causing a calculation to be made hereunder or designated any Unrestricted Subsidiary as a Restricted Subsidiary (any such Investment, acquisition or designation, a “ Purchase ”), Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto (including the Incurrence of any related Indebtedness) as if such Purchase occurred on the first day of such period, and

(5) if, since the beginning of such period, any Person became a Restricted Subsidiary or was merged or consolidated with or into the Borrower or any Restricted Subsidiary, and since the beginning of such period such Person shall have Discharged any Indebtedness or made any Sale or Purchase that would have required an adjustment pursuant to clause (2), (3) or (4) above if made by the Borrower or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto as if such Discharge, Sale or Purchase occurred on the first day of such period;

provided that, in the event that the Borrower shall classify Indebtedness Incurred on any date of determination as Incurred in part under Subsection 8.1(a) and in part under Subsection 8.1(b) , as provided in Subsection 8.1(c)(iii) ) any such pro forma calculation of Consolidated Interest Expense on such date of determination shall not give effect to any such Incurrence of Indebtedness on such date of determination pursuant to Subsection 8.1(b) .

For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto and the amount of Consolidated Interest Expense associated with any Indebtedness Incurred, or Indebtedness repaid, repurchased, redeemed, defeased or otherwise acquired, retired or discharged in connection therewith, the pro forma calculations in respect thereof (including without limitation in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other transaction) shall be as determined in good faith by the Chief Financial Officer or a Responsible Officer of the Borrower; provided that with respect to cost savings or synergies relating to any Sale, Purchase or other transaction, the related actions are expected by the Borrower to be taken no later than 18 months after the date of determination. If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest expense on such Indebtedness shall be calculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account any Interest Rate Agreement applicable to such Indebtedness). If any Indebtedness bears, at the option of the Borrower or a Restricted Subsidiary, a rate of interest based on a prime or similar rate, a eurocurrency interbank offered rate or other fixed or floating rate, and such Indebtedness is being given pro forma effect, the interest expense on such Indebtedness shall be calculated by applying such optional rate as the Borrower or such Restricted Subsidiary may designate. If any

 

-13-


Indebtedness that is being given pro forma effect was incurred under a revolving credit facility, the interest expense on such Indebtedness shall be computed based upon the average daily balance of such Indebtedness during the applicable period. Interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate determined in good faith by a responsible financial or accounting officer of the Borrower to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP.

Consolidated EBITDA ”: for any period, the Consolidated Net Income for such period, plus ( x ) the following to the extent deducted in calculating such Consolidated Net Income, without duplication: ( i ) provision for all taxes (whether or not paid, estimated or accrued) based on income, profits or capital (including penalties and interest, if any); ( ii ) Consolidated Interest Expense and any Special Purpose Financing Fees; ( iii ) depreciation; ( iv ) amortization (including but not limited to amortization of goodwill and intangibles and amortization and write-off of financing costs); ( v ) any non-cash charges or non-cash losses; ( vi ) any expenses or charges related to any equity offering, Investment or Indebtedness permitted by this Agreement (whether or not consummated or incurred, and including any offering or sale of Capital Stock to the extent the proceeds thereof were intended to be contributed to the equity capital of the Borrower or its Restricted Subsidiaries); ( vii ) the amount of any loss attributable to non-controlling interests; ( viii ) all deferred financing costs written off and premiums paid in connection with any early extinguishment of Hedging Obligations or other derivative instruments; and ( ix ) [Reserved], plus ( y ) the amount of net cost savings projected by the Borrower in good faith to be realized as the result of actions taken or to be taken on or prior to the date that is 18 months after the Restatement Effective Date, or 18 months after the initiation or consummation of any operational change, respectively, and prior to or during such period (calculated on a pro forma basis as though such cost savings had been realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions (which adjustments shall not be duplicative of pro forma adjustments made pursuant to the proviso to the definition of “Consolidated Coverage Ratio” or “Consolidated First-Lien Net Leverage Ratio”); provided that such cost savings are reasonably identifiable and factually supportable.

Consolidated First-Lien Net Indebtedness ”: at any time, ( x ) the aggregate amount of Consolidated First-Lien Secured Indebtedness at such time minus ( y ) the Unrestricted Cash of the Borrower and its Restricted Subsidiaries at such time.

Consolidated First-Lien Net Leverage Ratio ”: as of any date of determination, the ratio of ( i ) Consolidated First-Lien Net Indebtedness as at such date (after giving effect to any Incurrence or Discharge of Indebtedness on such date) to ( ii ) the aggregate amount of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Borrower are available (determined, for any fiscal quarter (or portion thereof) ending prior to the Restatement Effective Date, on a pro forma basis to give effect to the Transactions as if they had occurred at the beginning of such four-quarter period), provided that:

(1) if, since the beginning of such period, the Borrower or any Restricted Subsidiary shall have made a Sale, the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period;

 

-14-


(2) if, since the beginning of such period, the Borrower or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made a Purchase (including any Purchase occurring in connection with a transaction causing a calculation to be made hereunder), Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day of such period; and

(3) if, since the beginning of such period, any Person became a Restricted Subsidiary or was merged or consolidated with or into the Borrower or any Restricted Subsidiary, and since the beginning of such period such Person shall have made any Sale or Purchase that would have required an adjustment pursuant to clause (1) or (2) above if made by the Borrower or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Sale or Purchase occurred on the first day of such period;

provided that, in the event that the Borrower shall classify Indebtedness Incurred on the date of determination as secured in part pursuant to clause (k)(1) of the “Permitted Liens” definition in respect of Indebtedness Incurred pursuant to the Ratio Incremental Facility and in part pursuant to such clause (k)(1) in respect of Indebtedness Incurred pursuant to Subsection 8.1(b)(i) (other than pursuant to the Ratio Incremental Facility) or one or more other clauses or subclauses of the definition of “Permitted Liens”), as provided in clause (x) of the final paragraph of such definition, any calculation of the Consolidated First Lien Leverage Ratio on the date of determination, including in the definition of “Maximum Incremental Facilities Amount” shall not include any such Indebtedness (and shall not give effect to any Discharge of Indebtedness from the proceeds thereof) not Incurred pursuant to the Ratio Incremental Facility; provided, further , that, for purposes of the foregoing calculation, in the event that the Borrower shall classify Indebtedness Incurred on any date of determination as Incurred in part pursuant to Subsection 8.1(b)(x) (other than by reason of subclause (2) of the proviso to such clause (x)) and in part pursuant to one or more other clauses of Subsection 8.1(b) and/or (unless the Borrower at its option has elected to disregard Indebtedness being Incurred on such date of determination in part pursuant to subclause (2) of the proviso to Subsection 8.1(b)(x) for purposes of calculating the Consolidated Coverage Ratio for Incurring Indebtedness on such date of determination in part under Subsection 8.1(a)) pursuant to Subsection 8.1(a) (as provided in Subsections 8.1(c)(ii) and (iii)), Consolidated Total Indebtedness shall not include any such Indebtedness Incurred pursuant to one or more such other clauses of Subsection 8.1(b) and/or pursuant to Subsection 8.1(a) , and shall not give effect to any Discharge of any Indebtedness from the proceeds of any such Indebtedness being disregarded for purposes of the calculation of the Consolidated First-Lien Net Leverage Ratio on such date of determination that otherwise would be included in Consolidated Total Indebtedness.

For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof (including, without limitation, in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other transaction) shall be as determined in good faith by the Chief Financial Officer or another Responsible Officer of the

 

-15-


Borrower; provided that with respect to cost savings or synergies relating to any Sale, Purchase or other transaction, the related actions are expected by the Borrower to be taken no later than 18 months after the date of determination.

Consolidated First-Lien Secured Indebtedness ”: as of any date of determination, an amount equal to the Consolidated Secured Indebtedness as of such date (excluding any Consolidated Secured Indebtedness secured by a Lien on Collateral ranking junior to the Lien securing the Term Loan Facility Obligations; provided that any Indebtedness that is then being or was previously Incurred in reliance on clause (ii) of the definition “Maximum Incremental Facilities Amount” on a junior lien basis or on an unsecured basis (together with Refinancing Indebtedness in respect thereof) shall be treated as, and included in the amount of, Consolidated First-Lien Secured Indebtedness); provided that, on any date on which Incremental Revolving Commitments are being provided pursuant to Subsection 2.6 , such Incremental Revolving Commitments will be treated as fully drawn for purposes of determining the amount of Consolidated First-Lien Secured Indebtedness as of and solely on such date.

Consolidated Interest Expense ”: for any period, ( i ) the total interest expense of the Borrower and its Restricted Subsidiaries to the extent deducted in calculating Consolidated Net Income, net of any interest income of the Borrower and its Restricted Subsidiaries, including without limitation, any such interest expense consisting of ( A ) interest expense attributable to Capitalized Lease Obligations, ( B ) amortization of debt discount, ( C ) interest in respect of Indebtedness of any other Person that has been Guaranteed by the Borrower or any Restricted Subsidiary, but only to the extent that such interest is actually paid by the Borrower or any Restricted Subsidiary, ( D ) non-cash interest expense, ( E ) the interest portion of any deferred payment obligation and ( F ) commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, plus ( ii ) Preferred Stock dividends paid in cash in respect of Disqualified Stock of the Borrower held by Persons other than the Borrower or a Restricted Subsidiary (for the avoidance of doubt, other than, on or prior to July 1, 2017, dividends paid in cash in respect of the Existing Mandatory Convertible Preferred), and minus ( iii ) to the extent otherwise included in such interest expense referred to in clause (i) above, amortization or write-off of financing costs, in each case under clauses (i) through (iii) above as determined on a Consolidated basis in accordance with GAAP; provided that gross interest expense shall be determined after giving effect to any net payments made or received by the Borrower and its Restricted Subsidiaries with respect to Interest Rate Agreements.

Consolidated Net Income ”: for any period, the net income (loss) of the Borrower and its Restricted Subsidiaries, determined on a Consolidated basis in accordance with GAAP and before any reduction in respect of Preferred Stock dividends; provided that there shall not be included in such Consolidated Net Income:

(i) any net income (loss) of any Person if such Person is not the Borrower or a Restricted Subsidiary, except that ( A ) the Borrower’s or any Restricted Subsidiary’s equity in the net income of any such Person for such period shall be included in such Consolidated Net Income up to the aggregate amount actually distributed by such Person during such period to the Borrower or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution to a Restricted Subsidiary, to the limitations contained in clause (ii) below) and ( B ) the Borrower’s or any Restricted Subsidiary’s equity in the net loss of such Person shall be included to the extent of the aggregate Investment of the Borrower or any of its Restricted Subsidiaries in such Person,

 

-16-


(ii) solely for purposes of determining the amount available for Restricted Payments under Subsection 8.2(a)(3)(A) and Excess Cash Flow, any net income (or loss) of any Restricted Subsidiary that is not a Subsidiary Guarantor if such Restricted Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of similar distributions by such Restricted Subsidiary, directly or indirectly, to the Borrower by operation of the terms of such Restricted Subsidiary’s charter or any agreement, instrument, judgment, decree, order, statute or governmental rule or regulation applicable to such Restricted Subsidiary or its stockholders (other than ( x ) restrictions that have been waived or otherwise released, ( y ) restrictions pursuant to this Agreement or the other Loan Documents and ( z ) restrictions in effect on the Restatement Effective Date with respect to a Restricted Subsidiary and other restrictions with respect to such Restricted Subsidiary that taken as a whole are not materially less favorable to the Lenders than such restrictions in effect on the Restatement Effective Date as determined by the Borrower in good faith), except that ( A ) the Borrower’s equity in the net income of any such Restricted Subsidiary for such period shall be included in such Consolidated Net Income up to the aggregate amount of any dividend or distribution that was or that could have been made by such Restricted Subsidiary during such period to the Borrower or another Restricted Subsidiary (subject, in the case of a dividend that could have been made to another Restricted Subsidiary, to the limitation contained in this clause (ii)) and ( B ) the net loss of such Restricted Subsidiary shall be included to the extent of the aggregate Investment of the Borrower or any of its other Restricted Subsidiaries in such Restricted Subsidiary,

(iii) any gain or loss realized upon the sale or other disposition of any asset of the Borrower or any Restricted Subsidiary (including pursuant to any sale/leaseback transaction) that is not sold or otherwise disposed of in the ordinary course of business (as determined in good faith by the Board of Directors),

(iv) any item classified as an extraordinary, unusual or nonrecurring gain, loss or charge (including fees, expenses and charges associated with the Transactions and any acquisition, merger or consolidation after the Restatement Effective Date),

(v) the cumulative effect of a change in accounting principles,

(vi) all deferred financing costs written off and premiums paid in connection with any early extinguishment of Indebtedness,

(vii) any unrealized gains or losses in respect of Hedge Agreements,

(viii) any unrealized foreign currency transaction gains or losses in respect of Indebtedness of any Person denominated in a currency other than the functional currency of such Person,

(ix) any non-cash compensation charge arising from any grant of stock, stock options or other equity based awards,

 

-17-


(x) to the extent otherwise included in Consolidated Net Income, any unrealized foreign currency translation or transaction gains or losses in respect of Indebtedness or other obligations of the Borrower or any Restricted Subsidiary owing to the Borrower or any Restricted Subsidiary,

(xi) any non-cash charge, expense or other impact attributable to application of the purchase or recapitalization method of accounting (including the total amount of depreciation and amortization, cost of sales or other non-cash expense resulting from the write-up of assets to the extent resulting from such purchase or recapitalization accounting adjustments), and

(xii) expenses related to the conversion of various employee benefit programs in connection with the Transactions, and non-cash compensation related expenses.

In the case of any unusual or nonrecurring gain, loss or charge not included in Consolidated Net Income pursuant to clause (iv) above in any determination thereof, the Borrower will deliver a certificate of a Responsible Officer to the Administrative Agent promptly after the date on which Consolidated Net Income is so determined, setting forth the nature and amount of such unusual or nonrecurring gain, loss or charge. Notwithstanding the foregoing, for the purpose of Subsection 8.2(a)(3)(A) only, there shall be excluded from Consolidated Net Income, without duplication, any income consisting of dividends, repayments of loans or advances or other transfers of assets from Unrestricted Subsidiaries to the Borrower or a Restricted Subsidiary, and any income consisting of return of capital, repayment or other proceeds from dispositions or repayments of Investments consisting of Restricted Payments, in each case to the extent such income would be included in Consolidated Net Income and such related dividends, repayments, transfers, return of capital or other proceeds are applied by the Borrower to increase the amount of Restricted Payments permitted under Subsection 8.2(a)(3)(C) or (D) .

In addition, Consolidated Net Income for any period ending on or prior to the Restatement Effective Date shall be determined based upon the net income (loss) reflected in the consolidated financial statements of the Borrower for such period; and each Person that is a Restricted Subsidiary upon giving effect to the Transactions shall be deemed to be a Restricted Subsidiary and the Transactions shall not constitute a sale or disposition under clause (iii) above, for purposes of such determination.

Consolidated Net Indebtedness ”: at any time, ( x ) the aggregate amount of Consolidated Total Indebtedness at such time minus ( y ) the Unrestricted Cash of the Borrower and its Restricted Subsidiaries at such time.

Consolidated Net Leverage Ratio ”: as of any date of determination, the ratio of ( i ) Consolidated Net Indebtedness as at such date (after giving effect to any Incurrence or Discharge of Indebtedness on such date) to ( ii ) the aggregate amount of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Borrower are available (determined, for any fiscal quarter (or portion thereof) ending prior to the Restatement Effective Date, on a pro forma basis to give effect to the Transactions as if they had occurred at the beginning of such four-quarter period); provided that:

(1) if, since the beginning of such period, the Borrower or any Restricted Subsidiary shall have made a Sale, the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period;

 

-18-


(2) if, since the beginning of such period, the Borrower or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made a Purchase (including any Purchase occurring in connection with a transaction causing a calculation to be made hereunder), Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day of such period; and

(3) if, since the beginning of such period, any Person became a Restricted Subsidiary or was merged or consolidated with or into the Borrower or any Restricted Subsidiary, and since the beginning of such period such Person shall have made any Sale or Purchase that would have required an adjustment pursuant to clause (1) or (2) above if made by the Borrower or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Sale or Purchase occurred on the first day of such period.

For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof (including, without limitation, in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other transaction) shall be as determined in good faith by the Chief Financial Officer or another Responsible Officer of the Borrower; provided that with respect to cost savings or synergies relating to any Sale, Purchase or other transaction, the related actions are expected by the Borrower to be taken no later than 18 months after the date of determination.

Consolidated Secured Indebtedness ”: as of any date of determination, an amount equal to the Consolidated Total Indebtedness as of such date that in each case is then secured by Liens on property or assets of the Borrower and its Restricted Subsidiaries (other than property or assets held in a defeasance or similar trust or arrangement for the benefit of the Indebtedness secured thereby).

Consolidated Total Assets ”: as of any date of determination, the total assets in each case of the Borrower and its Restricted Subsidiaries as at the end of the most recently ended fiscal quarter of the Borrower for which such financial statements of the Borrower and its Restricted Subsidiaries are available, determined on a Consolidated basis in accordance with GAAP (and, in the case of any determination relating to any Incurrence of Indebtedness, Lien or any Investment, on a pro forma basis including any property or assets being acquired in connection therewith).

Consolidated Total Indebtedness ”: as of any date of determination, an amount equal to ( i ) the aggregate principal amount of outstanding Indebtedness of the Borrower and its Restricted Subsidiaries as of such date consisting of (without duplication) Indebtedness for borrowed money (including Purchase Money Obligations and unreimbursed outstanding drawn

 

-19-


amounts under funded letters of credit); Capitalized Lease Obligations; debt obligations evidenced by bonds, debentures, notes or similar instruments; Disqualified Stock; and (in the case of any Restricted Subsidiary that is not a Subsidiary Guarantor) Preferred Stock, determined on a Consolidated basis in accordance with GAAP (excluding items eliminated in Consolidation, and for the avoidance of doubt, excluding Hedging Obligations) minus ( ii ) the sum of ( A ) the amount of such Indebtedness consisting of Indebtedness of a type referred to in, or Incurred pursuant to, Subsection 8.1(b)(ix) and ( B ) cash, Cash Equivalents and Temporary Cash Investments held by the Borrower and its Restricted Subsidiaries as of the end of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Borrower are available.

Consolidated Working Capital ”: at any date, the excess of ( a ) the sum of all amounts (other than cash, Cash Equivalents and Temporary Cash Investments) that would, in conformity with GAAP, be set forth opposite the caption “total current assets” (or any like caption) on a consolidated balance sheet of the Borrower at such date excluding the current portion of current and deferred income taxes over ( b ) the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption “total current liabilities” (or any like caption) on a consolidated balance sheet of the Borrower on such date, including deferred revenue but excluding, without duplication, ( i ) the current portion of any Funded Debt, ( ii ) all Indebtedness consisting of Loans to the extent otherwise included therein, ( iii ) the current portion of interest and ( iv ) the current portion of current and deferred income taxes.

Consolidation ”: the consolidation of the accounts of each of the Restricted Subsidiaries with those of the Borrower in accordance with GAAP; provided that “Consolidation” will not include consolidation of the accounts of any Unrestricted Subsidiary, but the interest of the Borrower or any Restricted Subsidiary in any Unrestricted Subsidiary will be accounted for as an investment. The term “ Consolidated ” has a correlative meaning. For purposes of this Agreement for periods ending on or prior to the Restatement Effective Date, references to the consolidated financial statements of the Borrower shall be to the consolidated financial statements of the Borrower with pro forma effect being given to the Transactions, as the context may require.

Contract Consideration ”: as defined in the definition of “Excess Cash Flow”.

Contractual Obligation ”: as to any Person, any provision of any material security issued by such Person or of any material agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

Contribution Amounts ”: the aggregate amount of capital contributions applied by the Borrower to permit the Incurrence of Contribution Indebtedness pursuant to Subsection 8.1(b)(xi) .

Contribution Indebtedness ”: Indebtedness of the Borrower or any Restricted Subsidiary in an aggregate principal amount not greater than the aggregate amount of cash contributions (other than Excluded Contributions, the proceeds from the issuance of Disqualified Stock or contributions by the Borrower or any Restricted Subsidiary) made to the capital of the Borrower or such Restricted Subsidiary after the Restatement Effective Date (whether through

 

-20-


the issuance or sale of Capital Stock or otherwise); provided that such Contribution Indebtedness ( a ) is Incurred within 180 days after the making of the related cash contribution and ( b ) is so designated as Contribution Indebtedness pursuant to a certificate of a Responsible Officer of the Borrower on the date of Incurrence thereof.

Covered Liabilities ”: as defined in Subsection 11.21 .

Currency Agreement ”: in respect of a Person, any foreign exchange contract, currency swap agreement or other similar agreement or arrangements (including derivative agreements or arrangements), as to which such Person is a party or a beneficiary.

Default ”: any of the events specified in Subsection 9.1 , whether or not any requirement for the giving of notice (other than, in the case of Subsection 9.1(e) , a Default Notice), the lapse of time, or both, or any other condition specified in Subsection 9.1 , has been satisfied.

Default Notice ”: as defined in Subsection 9.1(e) .

Defaulting Lender ”: any Lender or Agent whose acts or failure to act, whether directly or indirectly, cause it to meet any part of the definition of Agent Default.

Deposit Account ”: any deposit account (as such term is defined in Article 9 of the UCC).

Designated Noncash Consideration ”: the Fair Market Value of noncash consideration received by the Borrower or one of its Restricted Subsidiaries in connection with an Asset Disposition that is so designated as Designated Noncash Consideration pursuant to a certificate of a Responsible Officer, setting forth the basis of such valuation.

Designation Date ”: as defined in Subsection 2.8(f) .

Discharge ”: as defined in clause (2) of the definition of “Consolidated Coverage Ratio”.

Discount Prepayment Accepting Lender ”: as defined in Subsection 4.4(h)(ii)(2) .

Discount Range ”: as defined in Subsection 4.4(h)(iii)(1) .

Discount Range Prepayment Amount ”: as defined in Subsection 4.4(h)(iii)(1) .

Discount Range Prepayment Notice ”: a written notice of the Borrower Solicitation of Discount Range Prepayment Offers made pursuant to Subsection 4.4(h) substantially in the form of Exhibit O .

Discount Range Prepayment Offer ”: the irrevocable written offer by a Lender, substantially in the form of Exhibit P , submitted in response to an invitation to submit offers following the Administrative Agent’s receipt of a Discount Range Prepayment Notice.

 

-21-


Discount Range Prepayment Response Date ”: as defined in Subsection 4.4(h)(iii)(1) .

Discount Range Proration ”: as defined in Subsection 4.4(h)(iii)(3) .

Discounted Prepayment Determination Date ”: as defined in Subsection 4.4(h)(iv)(3) .

Discounted Prepayment Effective Date ”: in the case of a Borrower Offer of Specified Discount Prepayment or Borrower Solicitation of Discount Range Prepayment Offers, five (5) Business Days following the receipt by each relevant Lender of notice from the Administrative Agent in accordance with Subsection 4.4(h)(ii) , Subsection 4.4(h)(iii) or Subsection 4.4(h)(iv) , as applicable unless a shorter period is agreed to between the Borrower and the Administrative Agent.

Discounted Term Loan Prepayment ”: as defined in Subsection 4.4(h)(i) .

Disinterested Directors ”: with respect to any Affiliate Transaction, one or more members of the Board of Directors of the Borrower, or one or more members of the Board of Directors of a Parent Entity, having no material direct or indirect financial interest in or with respect to such Affiliate Transaction. A member of any such Board of Directors shall not be deemed to have such a financial interest by reason of such member’s holding Capital Stock of the Borrower or any Parent Entity or any options, warrants or other rights in respect of such Capital Stock.

Disposition ”: as defined in the definition of the term “Asset Disposition” in this Subsection 1.1 .

Disqualified Lender ”: ( i ) any competitor of the Borrower and its Restricted Subsidiaries that is in the same or a similar line of business as the Borrower and its Restricted Subsidiaries or any affiliate of such competitor designated in writing by the Borrower to the Administrative Agent from time to time and ( ii ) any Persons designated in writing by the Borrower to the Lead Arrangers prior to the Restatement Effective Date (other than bona fide debt funds); provided that (i) such written designation shall be submitted by the Borrower to the Administrative Agent at JPMDQ_Contact@jpmorgan.com, (ii) subject to clause (iii) below, any such written designation shall become effective on the third Business Day following the date of receipt of such notice by the Administrative Agent and (iii) any such written designation shall not be effective as to any Person that is a Lender, Participant or counterparty to a pending trade at the time such notice is provided to Lenders by the Administrative Agent. The Borrower authorizes the Administrative Agent to post the list of Disqualified Lenders to the Platform and agrees that the Administrative Agent shall have no duty to ascertain, monitor or enforce such list and shall not have any liability therefor.

Disqualified Stock ”: with respect to any Person, any Capital Stock (other than Management Stock) that by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable) or upon the happening of any event (other than following the occurrence of a Change of Control or other similar event described under such terms as a “change of control” or an Asset Disposition) ( i ) matures or is mandatorily redeemable

 

-22-


pursuant to a sinking fund obligation or otherwise, ( ii ) is convertible or exchangeable for Indebtedness or Disqualified Stock or ( iii ) is redeemable at the option of the holder thereof (other than following the occurrence of a Change of Control or other similar event described under such terms as a “change of control” or an Asset Disposition), in whole or in part, in each case on or prior to the Maturity Date; provided that Capital Stock issued to any employee benefit plan, or by any such plan to any employees of the Borrower or any Subsidiary, shall not constitute Disqualified Stock solely because it may be required to be repurchased or otherwise acquired or retired in order to satisfy applicable statutory or regulatory obligations.

Dollars ” and “ $ ”: dollars in lawful currency of the United States of America.

Domestic Subsidiary ”: any Subsidiary of the Borrower which is not a Foreign Subsidiary.

ECF Payment Date ”: as defined in Subsection 4.4(b) .

ECF Prepayment Amount ”: as defined in Subsection 4.4(b) .

EEA Financial Institution ”: ( a ) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority; ( b ) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition and is subject to the supervision of an EEA Resolution Authority; or ( c ) any institution established in an EEA Member Country which is a Subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision of an EEA Resolution Authority with its parent.

EEA Member Country ”: any of the member states of the European Union, Iceland, Liechtenstein and Norway.

EEA Resolution Authority ”: any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

Effective Yield ”: as to any Term Loans of any Tranche, the effective yield on such Term Loans as reasonably determined by the Administrative Agent in consultation with the Borrower utilizing ( a ) any interest rate “floor” (or similar device) applicable to such Term Loans on such date, ( b ) the interest rate margin for such Term Loans on such date (or any recurring fee or similar form of consideration payable in lieu thereof), and ( c ) the “issue price” of such Term Loans after giving effect to any original issue discount or upfront fees (amortized over the shorter of ( x ) the life of such Term Loans and ( y ) the four (4) years following the date of incurrence thereof) payable generally to Lenders making such Term Loans, but excluding any arrangement, structuring or other fees payable in connection therewith that are not generally shared with the relevant Lenders and customary amendment and consent fees paid generally to consenting Lenders. Any such determination by the Administrative Agent shall be conclusive and binding on all Lenders. The Administrative Agent shall not have any liability to any Person with respect to such determination absent gross negligence, bad faith or willful misconduct.

 

-23-


Environmental Costs ”: any and all costs or expenses (including attorney’s and consultant’s fees, investigation and laboratory fees, response costs, court costs and litigation expenses, fines, penalties, damages, settlement payments, judgments and awards), of whatever kind or nature, known or unknown, contingent or otherwise, arising out of, or in any way relating to, any actual or alleged violation of, noncompliance with or liability under any Environmental Laws. Environmental Costs include any and all of the foregoing, without regard to whether they arise out of or are related to any past, pending or threatened proceeding of any kind.

Environmental Laws ”: any and all U.S. or foreign, federal, state, provincial, territorial, local or municipal laws, rules, orders, enforceable guidelines and orders-in-council, regulations, statutes, ordinances, codes, decrees, and such requirements of any Governmental Authority properly promulgated and having the force and effect of law or other Requirements of Law (including common law) regulating, relating to or imposing liability or standards of conduct concerning protection of human health (as it relates to exposure to Materials of Environmental Concern) or the environment, as have been, or now or at any relevant time hereafter are, in effect.

Environmental Permits ”: any and all permits, licenses, registrations, notifications, exemptions and any other authorization required under any Environmental Law.

ERISA ”: the Employee Retirement Income Security Act of 1974, as amended from time to time.

EU Bail-In Legislation Schedule ”: the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

Eurodollar Loans ”: Loans the rate of interest applicable to which is based upon the Adjusted LIBOR Rate.

Event of Default ”: any of the events specified in Subsection 9.1 , provided that any requirement for the giving of notice, the lapse of time, or both, or any other condition, has been satisfied.

Excess Cash Flow ”: for any period, an amount equal to the excess of:

( a ) the sum, without duplication, of

(i) Consolidated Net Income for such period,

(ii) an amount equal to the amount of all non-cash charges to the extent deducted in arriving at such Consolidated Net Income and cash receipts to the extent excluded in arriving at such Consolidated Net Income,

(iii) decreases in Consolidated Working Capital and decreases in long-term accounts receivable (not otherwise included in the determination of Consolidated Working Capital) for such period (other than any such decreases arising from acquisitions by the Borrower and the Restricted Subsidiaries completed during such period or the application of purchase accounting),

 

-24-


(iv) an amount equal to the aggregate net non-cash loss on Asset Dispositions (each, an “ ECF Acquisition ” or “ ECF Disposition ”, respectively) by the Borrower and the Restricted Subsidiaries during such period (other than Asset Dispositions in the ordinary course of business) to the extent deducted in arriving at such Consolidated Net Income; and

(v) cash receipts in respect of Hedge Agreements during such period to the extent not otherwise included in Consolidated Net Income;

over ( b ) the sum, without duplication, of

(i) an amount equal to the amount of all non-cash credits included in arriving at such Consolidated Net Income and cash charges to the extent deducted in arriving at such Consolidated Net Income,

(ii) without duplication of amounts deducted pursuant to clause (xi) below in prior years, the amount of Capital Expenditures either made in cash or accrued during such period ( provided that, whether any such Capital Expenditures shall be deducted for the period in which cash payments for such Capital Expenditures have been paid or the period in which such Capital Expenditures have been accrued shall be at the Borrower’s election; provided , further that, in no case shall any accrual of a Capital Expenditure which has previously been deducted give rise to a subsequent deduction upon the making of such Capital Expenditure in cash in the same or any subsequent period), except to the extent that such Capital Expenditures were financed with the proceeds of Indebtedness of the Borrower or the Restricted Subsidiaries (unless such Indebtedness has been repaid),

(iii) the aggregate amount of all principal payments, purchases or other retirements of Indebtedness of the Borrower and the Restricted Subsidiaries (including ( A ) the principal component of payments in respect of Capitalized Lease Obligations, ( B ) the amount of any repayment of Term Loans pursuant to Subsection 2.2(b) and ( C ) the amount of a mandatory prepayment of Term Loans pursuant to Subsection 4.4(b)(i) to the extent required due to an Asset Disposition that resulted in an increase to Consolidated Net Income and not in excess of the amount of such increase, but excluding ( w ) all other prepayments of Term Loans and Incremental Revolving Loans, ( x ) all prepayments of loans under the Senior ABL Facility and ( y ) all prepayments of any other revolving loans (other than Incremental Revolving Loans), to the extent there is not an equivalent permanent reduction in commitments thereunder) made during such period, except to the extent financed with the proceeds of other long-term Indebtedness of the Borrower or the Restricted Subsidiaries,

 

-25-


(iv) an amount equal to the aggregate net non-cash gain on Asset Dispositions (or any disposition specifically excluded from the definition of the term “Asset Disposition”) by the Borrower and the Restricted Subsidiaries during such period (other than Asset Dispositions in the ordinary course of business) to the extent included in arriving at such Consolidated Net Income,

(v) increases in Consolidated Working Capital and increases in long term accounts receivable (not otherwise included in the determination of Consolidated Working Capital) for such period (other than any such increases arising from acquisitions by the Borrower and the Restricted Subsidiaries completed during such period or the application of purchase accounting),

(vi) payments by the Borrower and the Restricted Subsidiaries during such period in respect of long-term liabilities of the Borrower and the Restricted Subsidiaries other than Indebtedness, to the extent not already deducted from Consolidated Net Income,

(vii) without duplication of amounts deducted pursuant to clause (xi) below in prior fiscal years, the aggregate amount of cash consideration paid by the Borrower and the Restricted Subsidiaries (on a consolidated basis) in connection with Investments (including acquisitions) made during such period constituting “Permitted Investments” (other than Investments of the type described in clause (iii) of the definition thereof and intercompany Investments by and among the Borrower and its Restricted Subsidiaries) or made pursuant to Subsection 8.2 to the extent that such Investments were financed with internally generated cash flow of the Borrower and the Restricted Subsidiaries,

(viii) the amount of Restricted Payments (other than Investments) made in cash during such period (on a consolidated basis) by the Borrower and the Restricted Subsidiaries pursuant to Subsection 8.2(b) (other than Subsection 8.2(b)(vi) ), to the extent such Restricted Payments were financed with internally generated cash flow of the Borrower and the Restricted Subsidiaries,

(ix) the aggregate amount of expenditures actually made by the Borrower and the Restricted Subsidiaries in cash during such period (including expenditures for the payment of financing fees) to the extent that such expenditures are not expensed during such period and are not deducted in calculating Consolidated Net Income,

(x) the aggregate amount of any premium, make-whole or penalty payments actually paid in cash by the Borrower and the Restricted Subsidiaries during such period that are made in connection with any prepayment of Indebtedness to the extent that such payments are not deducted in calculating Consolidated Net Income,

(xi) at the Borrower’s election, without duplication of amounts deducted from Excess Cash Flow in prior periods, the aggregate consideration

 

-26-


required to be paid in cash by the Borrower or any of the Restricted Subsidiaries pursuant to binding contracts (the “ Contract Consideration ”) entered into prior to or during such period relating to Investments constituting “Permitted Investments” (other than Investments of the type described in clause (iii) of the definition thereof and intercompany Investments by and among the Borrower and its Restricted Subsidiaries) or made pursuant to Subsection 8.2 or Capital Expenditures to be consummated or made during the period of four consecutive fiscal quarters of the Borrower following the end of such period, provided that to the extent the aggregate amount of internally generated cash actually utilized to finance such Permitted Investments and Capital Expenditures during such period of four consecutive fiscal quarters is less than the Contract Consideration, the amount of such shortfall shall be added to the calculation of Excess Cash Flow at the end of such period of four consecutive fiscal quarters,

(xii) the amount of taxes (including penalties and interest) paid in cash or tax reserves set aside or payable (without duplication) in such period to the extent they exceed the amount of tax expense deducted in determining Consolidated Net Income for such period, and

(xiii) cash expenditures in respect of Hedge Agreements during such period to the extent not deducted in arriving at such Consolidated Net Income.

Exchange Act ”: the Securities Exchange Act of 1934, as amended from time to time.

Exchanged Term Loan ”: as defined in the Seventh Amendment.

Exchanging Lender ”: as defined in the Seventh Amendment.

Excluded Assets ”: as defined in the Guarantee and Collateral Agreement.

Excluded Contribution ”: Net Cash Proceeds, or the Fair Market Value of property or assets, received by the Borrower as capital contributions to the Borrower after the Closing Date or from the issuance or sale (other than to a Restricted Subsidiary) of Capital Stock (other than Disqualified Stock) of the Borrower, in each case to the extent designated as an Excluded Contribution pursuant to a certificate of a Responsible Officer of the Borrower and not previously included in the calculation set forth in Subsection 8.2(a)(3)(B)(x) for purposes of determining whether a Restricted Payment may be made.

Excluded Liability ”: any liability that is excluded under the Bail-In Legislation from the scope of any Bail-In Action including, without limitation, any liability excluded pursuant to Article 44 of the Bank Recovery and Resolution Directive.

Excluded Subsidiary ”: at any date of determination, any Subsidiary of the Borrower that:

(a) is an Immaterial Subsidiary;

 

-27-


(b) is prohibited by Requirement of Law or Contractual Obligations existing on the Restatement Effective Date (or, in the case of any newly acquired Subsidiary, in existence at the time of acquisition but not entered into in contemplation thereof) from Guaranteeing or granting Liens to secure the Term Loan Facility Obligations or if Guaranteeing or granting Liens to secure the Term Loan Facility Obligations would require governmental (including regulatory) consent, approval, license or authorization unless such consent, approval, license or authorization has been received;

(c) with respect to which the Borrower and the Administrative Agent reasonably agree that the burden or cost or other consequences of providing a guarantee of the Term Loan Facility Obligations shall be excessive in view of the benefits to be obtained by the Lenders therefrom;

(d) with respect to which the provision of such guarantee of the Term Loan Facility Obligations would result in material adverse tax consequences to the Borrower or one of its Subsidiaries (as reasonably determined by the Borrower and notified in writing to the Administrative Agent);

(e) is a Subsidiary of a Foreign Subsidiary;

(f) is a joint venture or any non-Wholly Owned Subsidiary;

(g) is an Unrestricted Subsidiary;

(h) is a Captive Insurance Subsidiary;

(i) is a Special Purpose Entity; or

(j) EMS Executive Investco LLC, a Delaware limited liability company;

provided , however , that no Subsidiary of the Borrower shall be an “Excluded Subsidiary” if such Subsidiary is not an “Excluded Subsidiary” (or comparable term) for purposes of the Senior ABL Facility. Subject to the proviso in the preceding sentence, any Subsidiary that fails to meet the foregoing requirements as of the last day of the period of the most recent four consecutive fiscal quarters for which consolidated financial statements of the Borrower are available shall continue to be deemed an Excluded Subsidiary hereunder until the date that is sixty (60) days following the date on which such annual or quarterly financial statements were required to be delivered pursuant to Subsection 7.1 with respect to such period.

Excluded Taxes ”: ( a ) any Taxes measured by or imposed upon the net income of any Agent or Lender or its applicable lending office, or any branch or affiliate thereof, and all franchise Taxes, branch Taxes, Taxes on doing business or Taxes measured by or imposed upon the overall capital or net worth of any such Agent or Lender or its applicable lending office, or any branch or affiliate thereof, in each case imposed: ( i ) by the jurisdiction under the laws of which such Agent or Lender, applicable lending office, branch or affiliate is organized or is located, or in which its principal executive office is located, or any nation within which such jurisdiction is located or any political subdivision thereof; or ( ii ) by reason of any connection between the jurisdiction imposing such Tax and such Agent or Lender, applicable lending office,

 

-28-


branch or affiliate other than a connection arising solely from such Agent or Lender having executed, delivered or performed its obligations under, or received payment under or enforced, this Agreement or any Notes, and ( b ) any Tax imposed by FATCA.

Existing Capitalized Lease Obligations ”: Capitalized Lease Obligations of the Borrower and its Restricted Subsidiaries existing on the Restatement Effective Date or permitted to be incurred under the 2016 Merger Agreement and disclosed on Schedule 1.1(d) .

Existing Mandatory Convertible Preferred ”: the Borrower’s 5.25% Mandatory Convertible Preferred Stock, Series A-1, with a liquidation preference of $100 per share, issued on July 16, 2014.

Existing Term Loans ”: as defined in Subsection 2.8(a) .

Existing Term Tranche ”: as defined in Subsection 2.8(a) .

Extended Term Loans ”: as defined in Subsection 2.8(a) .

Extended Term Tranche ”: as defined in Subsection 2.8(a) .

Extending Lender ”: as defined in Subsection 2.8(b) .

Extension ”: as defined in Subsection 2.8(b) .

Extension Amendment ”: as defined in Subsection 2.8(c) .

Extension Date ”: as defined in Subsection 2.8(d) .

Extension Election ”: as defined in Subsection 2.8(b) .

Extension of Credit ”: as to any Lender, the making of an Initial Term Loan (excluding any Supplemental Term Loans being made under the same Tranche as the Initial Term Loans).

Extension Request ”: as defined in Subsection 2.8(a) .

Extension Request Deadline ”: as defined in Section 4.4(b) .

Extension Series ”: all Extended Term Loans that are established pursuant to the same Extension Amendment (or any subsequent Extension Amendment to the extent such Extension Amendment expressly provides that the Extended Term Loans provided for therein are intended to be part of any previously established Extension Series) and that provide for the same interest margins, extension fees and amortization schedule.

Facility ”: each of ( a ) the Initial Term Loan Commitments and the Extensions of Credit made thereunder and the Initial Term Loans exchanged for Exchanged Term Loans in accordance with the Seventh Amendment and ( b ) any other committed facility hereunder and the Extensions of Credit made thereunder.

 

-29-


Fair Market Value ”: with respect to any asset or property, the fair market value of such asset or property as determined in good faith by the senior management of the Borrower or the Board of Directors, whose determination will be conclusive.

FATCA ”: Sections 1471 through 1474 of the Code as in effect on the Restatement Effective Date (and any amended or successor provisions that are substantively comparable), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with any of the foregoing and any fiscal or regulatory legislation, rules or practices adopted pursuant to any such intergovernmental agreement.

Federal District Court ”: as defined in Subsection 11.13(a) .

Federal Funds Effective Rate ”: for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate.

Fee Letter ”: the fee letter agreement, dated June 15, 2016 (as amended by that certain Letter Agreement Pursuant to Commitment Letter dated June 15, 2016 dated as of July 7, 2016, as amended by that certain Letter Agreement Pursuant to Commitment Letter dated June 15, 2016 dated as of July 8, 2016 and as may be further amended, supplemented or otherwise modified from time to time) by and among the Borrower, AmSurg Corp., JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wells Fargo Bank, National Association, Wells Fargo Securities, LLC, SunTrust Bank, SunTrust Robinson Humphrey, Inc., Deutsche Bank AG New York Branch, Deutsche Bank Securities Inc., BMO Harris Bank N.A., BMO Capital Markets Corp., RBC Capital Markets, LLC and Bank of America, N.A.

Financing Disposition ”: any sale, transfer, conveyance or other disposition of, or creation or incurrence of any Lien on, property or assets by the Borrower or any Subsidiary thereof to or in favor of any Special Purpose Entity, or by any Special Purpose Subsidiary, in each case in connection with the Incurrence by a Special Purpose Entity of Indebtedness, or obligations to make payments to the obligor on Indebtedness, which may be secured by a Lien in respect of such property or assets.

FIRREA ”: the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended from time to time.

First Lien Obligations ”: ( i ) the Term Loan Facility Obligations and ( ii ) the Additional Obligations, the Permitted Debt Exchange Notes, Rollover Indebtedness and Refinancing Indebtedness in respect of the Indebtedness described in this clause (ii) (other than any such Additional Obligations, Permitted Debt Exchange Notes, Rollover Indebtedness and Refinancing Indebtedness that are unsecured or secured by a Lien ranking junior to the Lien securing the Term Loan Facility Obligations) secured by a first priority interest in the Term Loan Priority Collateral and a second priority interest in the ABL Priority Collateral, collectively.

first priority ”: with respect to any Lien purported to be created in any Collateral pursuant to any Security Document, that such Lien is the most senior Lien to which such

 

-30-


Collateral is subject (subject to Permitted Liens applicable to such Collateral which have priority over the respective Liens on such Collateral created pursuant to the relevant Security Document (or, in the case of Collateral constituting Pledged Stock (as defined in the Guarantee and Collateral Agreement), Permitted Liens of the type described in clauses (a), (l), (m), (n), (p)(1) and, solely with respect to Permitted Liens described in the foregoing clauses, (o) of the definition thereof)). For purposes of this definition, a Lien purported to be created in any Collateral pursuant to any Security Document will be construed as the “most senior Lien” to which such Collateral is subject, notwithstanding the existence of a Permitted Lien on the Collateral that is pari passu with the Lien on such Collateral, so long as such Permitted Lien is subject to the terms of the ABL/Term Loan Intercreditor Agreement or an Other Intercreditor Agreement.

Fiscal Year ”: any period of 12 consecutive months ending on December 31 of any calendar year or any other period agreed by the Borrower and the Administrative Agent pursuant to Subsection 7.15 .

Fixed GAAP Date ”: the Closing Date, provided that at any time after the Restatement Effective Date, the Borrower may by written notice to the Administrative Agent elect to change the Fixed GAAP Date to be the date specified in such notice, and upon such notice, the Fixed GAAP Date shall be such date for all periods beginning on and after the date specified in such notice.

Fixed GAAP Terms ”: ( a ) the definitions of the terms “Borrowing Base”, “Capital Expenditures”, “Capitalized Lease Obligation”, “Consolidated Coverage Ratio”, “Consolidated EBITDA”, “Consolidated First-Lien Net Leverage Ratio”, “Consolidated First-Lien Net Indebtedness”, “Consolidated First-Lien Secured Indebtedness”, “Consolidated Interest Expense”, “Consolidated Net Income”, “Consolidated Net Leverage Ratio”, “Consolidated Secured Indebtedness”, “Consolidated Total Assets”, “Consolidated Total Indebtedness”, “Consolidated Working Capital”, “Consolidation”, “Excess Cash Flow”, “Inventory” or “Receivables”, ( b ) all defined terms in this Agreement to the extent used in or relating to any of the foregoing definitions, and all ratios and computations based on any of the foregoing definitions and ( c ) any other term or provision of this Agreement or the Loan Documents that, at the Borrower’s election, may be specified by the Borrower by written notice to the Administrative Agent from time to time.

Foreign Pension Plan ”: a registered pension plan which is subject to applicable pension legislation other than ERISA or the Code, which a Restricted Subsidiary sponsors or maintains, or to which it makes or is obligated to make contributions.

Foreign Plan ”: each Foreign Pension Plan, deferred compensation or other retirement or superannuation plan, fund, program, agreement, commitment or arrangement whether oral or written, funded or unfunded, sponsored, established, maintained or contributed to, or required to be contributed to, or with respect to which any liability is borne, outside the United States of America, by the Borrower or any of its Restricted Subsidiaries, other than any such plan, fund, program, agreement or arrangement sponsored by a Governmental Authority.

 

-31-


Foreign Subsidiary ”: any Subsidiary of the Borrower which is organized and existing under the laws of any jurisdiction outside of the United States of America or that is a Foreign Subsidiary Holdco and any Subsidiary of any such Subsidiary. Any subsidiary of the Borrower which is organized and existing under the laws of Puerto Rico or any other territory of the United States of America shall be a Foreign Subsidiary.

Foreign Subsidiary Holdco ”: any Restricted Subsidiary of the Borrower, so long as such Restricted Subsidiary has no material assets other than securities or Indebtedness of one or more Foreign Subsidiaries (or Subsidiaries thereof), and intellectual property relating to such Foreign Subsidiaries (or Subsidiaries thereof) and other assets (including cash, Cash Equivalents or Temporary Cash Investments) relating to an ownership interest in any such securities, Indebtedness, intellectual property or Subsidiaries; provided , that no Subsidiary of the Borrower shall be a “Foreign Subsidiary Holdco” if such Subsidiary is not a “Foreign Subsidiary Holdco” (or comparable term) for purposes of the Senior ABL Facility.

Former Agent ”: Deutsche Bank AG New York Branch, in its capacity as administrative agent and collateral agent under the Original Credit Agreement (and the other Loan Documents) prior to the effectiveness of this Agreement on the Restatement Effective Date.

Funded Debt ”: all Indebtedness of the Borrower and the Restricted Subsidiaries for borrowed money that matures more than one year from the date of its creation or matures within one year from such date that is renewable or extendable, at the option of the Borrower or any Restricted Subsidiary, to a date more than one year from such date or arises under a revolving credit or similar agreement that obligates the lender or lenders to extend credit during a period of more than one year from such date, including all amounts of such debt required to be paid or prepaid within one year from the date of its creation and, in the case of the Borrower, Indebtedness in respect of the Term Loans.

GAAP ”: generally accepted accounting principles in the United States of America as in effect on the Fixed GAAP Date (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other purposes of this Agreement), including those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession, and subject to the following sentence. If at any time the SEC permits or requires U.S. domiciled companies subject to the reporting requirements of the Exchange Act to use IFRS in lieu of GAAP for financial reporting purposes, the Borrower may elect by written notice to the Administrative Agent to so use IFRS in lieu of GAAP and, upon any such notice, references herein to GAAP shall thereafter be construed to mean ( a ) for periods beginning on and after the date specified in such notice, IFRS as in effect on the date specified in such notice (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other purposes of this Agreement) and ( b ) for prior periods, GAAP as defined in the first sentence of this definition. All ratios and computations based on GAAP contained in this Agreement shall be computed in conformity with GAAP.

 

-32-


Government Accounts Receivable ”: any right to payment for goods sold or services rendered for Restricted Government Accounts.

Government Accounts Receivable Bank ”: any bank at which a Government Receivables Deposit Account is maintained.

Government Receivables Deposit Account ”: any Deposit Accounts containing or receiving Government Accounts Receivable deposited or transferred by Governmental Authorities.

Governmental Authority ”: the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational bodies such as the European Union or the European Central Bank).

Guarantee ”: any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other obligation of any other Person; 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.

Guarantee and Collateral Agreement ”: the Guarantee and Collateral Agreement, dated as of the Closing Date, by and among the Loan Parties and the Collateral Agent (as successor to the Former Agent), as the same may be amended, supplemented, waived or otherwise modified from time to time.

Guarantee Obligation ”: as to any Person (the “ guaranteeing person ”), any obligation of ( a ) the guaranteeing person or ( b ) another Person (including any bank under any letter of credit) to induce the creation of which the guaranteeing person has issued a reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “ primary obligations ”) of any other third Person (the “ primary obligor ”) in any manner, whether directly or indirectly, including any such obligation of the guaranteeing person, whether or not contingent, ( i ) to purchase any such primary obligation or any property constituting direct or indirect security therefor, ( ii ) to advance or supply funds ( A ) for the purchase or payment of any such primary obligation or ( B ) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, ( iii ) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or ( iv ) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided , however , that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of ( a ) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and ( b ) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such

 

-33-


Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by the Borrower in good faith.

Guarantor Subordinated Obligations ”: with respect to a Subsidiary Guarantor, any Indebtedness of such Subsidiary Guarantor (whether outstanding on the Restatement Effective Date or thereafter Incurred) that is expressly subordinated in right of payment to the obligations of such Subsidiary Guarantor under its Subsidiary Guaranty pursuant to a written agreement.

Guarantors ”: the collective reference to each Subsidiary Guarantor; individually, a “ Guarantor ”.

Hedge Agreements ”: collectively, Interest Rate Agreements, Currency Agreements and Commodities Agreements.

Hedging Obligations ”: as to any Person, the obligations of such Person pursuant to any Interest Rate Agreement, Currency Agreement or Commodities Agreement.

HIPAA ”: has the meaning provided in Subsection 7.6(b) .

Hospital Joint Venture ”: a Person that ( a ) is owned by ( i ) the Borrower or any Restricted Subsidiary and ( ii ) a hospital or health system or an Affiliate thereof; ( b ) owns more than 50% of the outstanding Capital Stock of an Operating Entity and ( c ) is not subject to any contractual obligation that limits the ability of such Person to pay dividends or make any other distribution on any of such Person’s Capital Stock or other equity interests owned by the Borrower or any Restricted Subsidiary, other than restrictions comparable to those described under Subsection 8.3 (except transactions described in clause (a), (d)(vi), (e) or (f) of such subsection); provided , however , that the Borrower or any Restricted Subsidiary must own no less than 40% of the outstanding Capital Stock of such Person.

Identified Participating Lenders ”: as defined in Subsection 4.4(h)(iii)(3) .

Identified Qualifying Lenders ”: as defined in Subsection 4.4(h)(iv)(3) .

IFRS ”: International Financial Reporting Standards and applicable accounting requirements set by the International Accounting Standards Board or any successor thereto (or the Financial Accounting Standards Board, the Accounting Principles Board of the American Institute of Certified Public Accountants, or any successor to either such Board, or the SEC, as the case may be), as in effect from time to time.

Immaterial Subsidiary ”: any Subsidiary of the Borrower designated as such in writing by the Borrower to the Administrative Agent that ( i ) ( x ) contributed 2.50% or less of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Borrower are available and ( y ) had consolidated assets representing 2.50% or less of Consolidated Total Assets as of the end of the most recently ended financial period for which

 

-34-


consolidated financial statements of the Borrower are available; and ( ii ) together with all other Immaterial Subsidiaries designated pursuant to the preceding clause (i), ( x ) contributed 5.00% or less of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Borrower are available and ( y ) had consolidated assets representing 5.00% or less of Consolidated Total Assets as of the end of the most recently ended financial period for which consolidated financial statements of the Borrower are available; provided , however , that no Subsidiary of the Borrower shall be an “Immaterial Subsidiary” if such Subsidiary is not an “Immaterial Subsidiary” (or comparable term) for purposes of the Senior ABL Facility. Subject to the proviso in the preceding sentence, any Subsidiary so designated as an Immaterial Subsidiary that fails to meet the foregoing requirements as of the last day of the period of the most recent four consecutive fiscal quarters for which consolidated financial statements of the Borrower are available shall continue to be deemed an “Immaterial Subsidiary” hereunder until the date that is sixty (60) days following the date on which such annual or quarterly financial statements were required to be delivered pursuant to Subsection 7.1 with respect to such period.

Impacted Interest Period ”: has the meaning assigned to it in the definition of “LIBOR Rate.”

Increase Supplement ”: as defined in Subsection 2.6(c) .

Incremental Commitment Amendment ”: as defined in Subsection 2.6(d) .

Incremental Commitments ”: as defined in Subsection 2.6(a) .

Incremental Indebtedness ”: Indebtedness Incurred by the Borrower pursuant to and in accordance with Subsection 2.6 .

Incremental Loans ”: as defined in Subsection 2.6(d) .

Incremental Revolving Commitments ”: as defined in Subsection 2.6(a) .

Incremental Revolving Loans ”: any loans drawn under an Incremental Revolving Commitment.

Incremental Term Loan ”: any Incremental Loan made pursuant to an Incremental Term Loan Commitment.

Incremental Term Loan Commitments ”: as defined in Subsection 2.6(a) .

Incur ”: issue, assume, enter into any Guarantee of, incur or otherwise become liable for; and the terms “ Incurs ,” “ Incurred ” and “ Incurrence ” shall have a correlative meaning; provided that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Subsidiary at the time it becomes a Subsidiary. Accrual of interest, the accretion of accreted value, the payment of interest in the form of additional Indebtedness, and the payment of dividends on Capital Stock constituting Indebtedness in the form of additional shares of the same class of Capital Stock, will not be deemed to be an

 

-35-


Incurrence of Indebtedness. Any Indebtedness issued at a discount (including Indebtedness on which interest is payable through the issuance of additional Indebtedness) shall be deemed Incurred at the time of original issuance of the Indebtedness at the initial accreted amount thereof.

Indebtedness ”: with respect to any Person on any date of determination (without duplication):

(i) the principal of indebtedness of such Person for borrowed money;

(ii) the principal of obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

(iii) all reimbursement obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar instruments (the amount of such obligations being equal at any time to the aggregate then undrawn and unexpired amount of such letters of credit, bankers’ acceptances or other instruments plus the aggregate amount of drawings thereunder that have not then been reimbursed);

(iv) all obligations of such Person to pay the deferred and unpaid purchase price of property (except Trade Payables), which purchase price is due more than one year after the date of placing such property in final service or taking final delivery and title thereto;

(v) all Capitalized Lease Obligations of such Person;

(vi) the redemption, repayment or other repurchase amount of such Person with respect to any Disqualified Stock of such Person or (if such Person is a Subsidiary of the Borrower other than a Subsidiary Guarantor) any Preferred Stock of such Subsidiary, but excluding, in each case, any accrued dividends (the amount of such obligation to be equal at any time to the maximum fixed involuntary redemption, repayment or repurchase price for such Capital Stock, or if less (or if such Capital Stock has no such fixed price), to the involuntary redemption, repayment or repurchase price therefor calculated in accordance with the terms thereof as if then redeemed, repaid or repurchased, and if such price is based upon or measured by the fair market value of such Capital Stock, such fair market value shall be as determined in good faith by senior management of the Borrower, the Board of Directors or the board of directors or other governing body of the issuer of such Capital Stock);

(vii) all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person; provided that the amount of Indebtedness of such Person shall be the lesser of ( A ) the fair market value of such asset at such date of determination (as determined in good faith by the Borrower) and ( B ) the amount of such Indebtedness of such other Persons;

(viii) all Guarantees by such Person of Indebtedness of other Persons, to the extent so Guaranteed by such Person; and

(ix) to the extent not otherwise included in this definition, net Hedging Obligations of such Person (the amount of any such obligation to be equal at any time to the termination value of such agreement or arrangement giving rise to such Hedging Obligation that would be payable by such Person at such time).

 

-36-


The amount of Indebtedness of any Person at any date shall be determined as set forth above or otherwise provided in this Agreement, or otherwise shall equal the amount thereof that would appear as a liability on a balance sheet of such Person (excluding any notes thereto) prepared in accordance with GAAP.

Individual Lender Exposure ”: of any Lender, at any time, the sum of the aggregate principal amount of all Term Loans made by such Lender and then outstanding.

Initial Agreement ”: as defined in Subsection 8.3(c) .

Initial Lien ”: as defined in Subsection 8.6 .

Initial Term Lender ”: any Lender having an Initial Term Loan Commitment or an Initial Term Loan outstanding hereunder.

Initial Term Loan ”: on and after the Restatement Effective Date and following the making of the Tranche C Term Loans pursuant to the Seventh Amendment, the Tranche C Term Loans. The original aggregate amount of the Initial Term Loans on the Restatement Effective Date is $3,495.0 million.

Initial Term Loan Commitment ”: as to any Lender, its obligation to make Initial Term Loans to the Borrower pursuant to the Seventh Amendment.

Initial Term Loan Percentage ”: as to any Initial Term Lender at any time, the percentage which ( a ) such Lender’s Initial Term Loans and unused Initial Term Loan Commitment then outstanding constitute of ( b ) the sum of all of the Initial Term Loans and unused Initial Term Loan Commitments then outstanding (or, if the Initial Term Loan Commitments have terminated or expired in their entirety, the percentage which such Lender’s Initial Term Loans then outstanding constitute of the aggregate Initial Term Loans then outstanding).

Initial Term Loan Refinancing Debt ”: any Incremental Term Loans incurred under this Agreement the proceeds of which are used to ( a ) voluntarily prepay all or a portion of the Initial Term Loans on a dollar-for-dollar basis and ( b ) pay the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses incurred in connection with such refinancing.

Insolvency ”: with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245 of ERISA.

Intellectual Property ”: as defined in Subsection 5.9 .

Intercreditor Agreement Supplement ”: as defined in Subsection 10.8(a) .

 

-37-


Interest Payment Date ”: ( a ) as to any ABR Loan, the last day of each March, June, September and December to occur while such Loan is outstanding, and the final maturity date of such Loan, ( b ) as to any Eurodollar Loan having an Interest Period of three months or less, the last day of such Interest Period and ( c ) as to any Eurodollar Loan having an Interest Period longer than three months, ( i ) each day which is three months, or a whole multiple thereof, after the first day of such Interest Period and ( ii ) the last day of such Interest Period.

Interest Period ”: with respect to any Eurodollar Loan:

(a) initially, the period commencing on the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and ending one, three or six months (or, if required pursuant to Subsection 2.1 , or agreed to by each affected Lender two months, 12 months or a shorter period) thereafter, as selected by the Borrower in its notice of borrowing or notice of conversion, as the case may be, given with respect thereto; and

(b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such Eurodollar Loan and ending one, three or six months (or if required pursuant to Subsection 2.1 or agreed to by each affected Lender two months, 12 months or a shorter period) thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent not less than three (3) Business Days prior to the last day of the then current Interest Period with respect thereto; provided that all of the foregoing provisions relating to Interest Periods are subject to the following:

(i) if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day;

(ii) any Interest Period that would otherwise extend beyond the applicable Maturity Date shall (for all purposes other than Subsection 4.12 ) end on the applicable Maturity Date;

(iii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; and

(iv) the Borrower shall select Interest Periods so as not to require a scheduled payment of any Eurodollar Loan during an Interest Period for such Eurodollar Loan.

Interest Rate Agreement ”: with respect to any Person, any interest rate protection agreement, future agreement, option agreement, swap agreement, cap agreement, collar agreement, hedge agreement or other similar agreement or arrangement (including derivative agreements or arrangements), as to which such Person is party or a beneficiary.

Interpolated Rate ”: at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBOR Screen Rate) determined by the

 

-38-


Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBOR Screen Rate for the longest period for which the LIBOR Screen Rate is available) that is shorter than the Impacted Interest Period; and (b) the LIBOR Screen Rate for the shortest period (for which that LIBOR Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.

Inventory ”: goods held for sale, lease or use by a Person in the ordinary course of business, net of any reserve for goods that have been segregated by such Person to be returned to the applicable vendor for credit, as determined in accordance with GAAP.

Investment ”: in any Person by any other Person, any direct or indirect advance, loan or other extension of credit (other than to customers, dealers, licensees, franchisees, suppliers, directors, officers or employees of any Person in the ordinary course of business) or capital contribution (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others) to, or any purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by, such Person. For purposes of the definition of “Unrestricted Subsidiary” and Subsection 8.2 only, ( i ) “Investment” shall include the portion (proportionate to the Borrower’s equity interest in such Subsidiary) of the Fair Market Value of the net assets of any Subsidiary of the Borrower at the time that such Subsidiary is designated an Unrestricted Subsidiary, provided that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Borrower shall be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to ( x ) the Borrower’s “Investment” in such Subsidiary at the time of such redesignation less ( y ) the portion (proportionate to the Borrower’s equity interest in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time of such redesignation, and ( ii ) any property transferred to or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of such transfer. Guarantees shall not be deemed to be Investments. The amount of any Investment outstanding at any time shall be the original cost of such Investment, reduced (at the Borrower’s option) by any dividend, distribution, interest payment, return of capital, repayment or other amount or value received in respect of such Investment; provided that to the extent that the amount of Restricted Payments outstanding at any time pursuant to Subsection 8.2(a) is so reduced by any portion of any such amount or value that would otherwise be included in the calculation of Consolidated Net Income, such portion of such amount or value shall not be so included for purposes of calculating the amount of Restricted Payments that may be made pursuant to Subsection 8.2(a) .

Investment Company Act ”: the Investment Company Act of 1940, as amended from time to time.

Investment Grade Rating ”: a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or any equivalent rating by any other Rating Agency.

Investment Grade Securities ”: ( i ) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (other than Cash Equivalents); ( ii ) debt securities or debt instruments with an Investment Grade

 

-39-


Rating, but excluding any debt securities or instruments constituting loans or advances among the Borrower and its Subsidiaries; ( iii ) investments in any fund that invests exclusively in investments of the type described in clauses (i) and (ii) above, which fund may also hold cash pending investment or distribution; and ( iv ) corresponding instruments in countries other than the United States customarily utilized for high quality investments.

JPMCB ”: as defined in the Preamble hereto.

Junior Debt ”: ( i ) the Senior Notes and Guarantees thereof (and Refinancing Indebtedness in respect thereof) and ( ii ) any Subordinated Obligations and Guarantor Subordinated Obligations.

Junior Lien Intercreditor Agreement ”: the intercreditor agreement substantially in the form of Exhibit L to be entered into as required by the terms hereof, as amended, supplemented, waived or otherwise modified, from time to time.

LCA Election ”: as defined in Subsection 1.2(i) .

LCA Test Date ”: as defined in Subsection 1.2(i) .

Lead Arrangers ”: in respect of the Initial Term Loans, JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc.

Lender Joinder Agreement ”: as defined in Subsection 2.6(c) .

Lenders ”: the several banks and other financial institutions from time to time parties to this Agreement together with, in each case, any affiliate of any such bank or financial institution through which such bank or financial institution elects, by notice to the Administrative Agent and the Borrower to make any Loans available to the Borrower; provided that for all purposes of voting or consenting with respect to ( a ) any amendment, supplementation or modification of any Loan Document, ( b ) any waiver of any of the requirements of any Loan Document or any Default or Event of Default and its consequences or ( c ) any other matter as to which a Lender may vote or consent pursuant to Subsection 11.1 , the bank or financial institution making such election shall be deemed the “ Lender ” rather than such affiliate, which shall not be entitled to so vote or consent.

Liabilities ”: collectively, any and all claims, obligations, liabilities, causes of action, actions, suits, proceedings, investigations, judgments, decrees, losses, damages, fees, costs and expenses (including interest, penalties and fees and disbursements of attorneys, accountants, investment bankers and other professional advisors), in each case whether incurred, arising or existing with respect to third parties or otherwise at any time or from time to time.

LIBOR Rate ”: with respect to any Eurodollar Borrowing for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for U.S. dollars for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate

 

-40-


page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; in each case the “ LIBOR Screen Rate ”) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period; provided that if the LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided further that if the Screen Rate shall not be available at such time for such Interest Period (an “ Impacted Interest Period ”) then the LIBOR Rate shall be the Interpolated Rate; provided that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

LIBOR Screen Rate ”: as defined in the definition of “LIBOR Rate.”

Lien ”: any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof).

Limited Condition Acquisition ”: any acquisition or any other investment by one or more of the Borrower and its Restricted Subsidiaries of, or in, any assets, business or Person permitted by this Agreement whose consummation is not conditioned on the availability of, or on obtaining, third party financing. In addition, for purposes of this Agreement, the 2016 Mergers shall be deemed to be a Limited Condition Acquisition.

Loan ”: each Initial Term Loan, Incremental Loan and/or Extended Term Loan, as the context shall require; collectively, the “ Loans ”.

Loan Documents ”: this Agreement, the Seventh Amendment, any Notes, the ABL/Term Loan Intercreditor Agreement, the Guarantee and Collateral Agreement, the Junior Lien Intercreditor Agreement (on and after the execution thereof) each Other Intercreditor Agreement (on and after the execution thereof) and any other Security Documents, each as amended, supplemented, waived or otherwise modified from time to time.

Loan Parties ”: the Borrower and the Subsidiary Guarantors; individually, a “ Loan Party ”.

Management Advances ”: ( 1 ) loans or advances made to directors, officers, employees or consultants of any Parent Entity, the Borrower or any Restricted Subsidiary or to Related Physicians ( x ) in respect of travel, entertainment or moving related expenses incurred in the ordinary course of business, ( y ) in respect of moving related expenses incurred in connection with any closing or consolidation of any facility or ( z ) in the ordinary course of business and (in the case of this clause (z)) not exceeding $25.0 million in the aggregate outstanding at any time, ( 2 ) promissory notes of Management Investors acquired in connection with the issuance of Management Stock to such Management Investors, ( 3 ) Management Guarantees or ( 4 ) other Guarantees of borrowings by Management Investors in connection with the purchase of Management Stock, which Guarantees are permitted under Subsection 8.1 .

Management Guarantees ”: guarantees ( x ) of up to an aggregate principal amount outstanding at any time of $50.0 million of borrowings by Management Investors in connection with their purchase of Management Stock or ( y ) made on behalf of, or in respect of loans or advances made to, directors, officers or employees of any Parent Entity, the Borrower or

 

-41-


any Restricted Subsidiary or to any Related Physicians ( 1 ) in respect of travel, entertainment and moving related expenses incurred in the ordinary course of business, or ( 2 ) in the ordinary course of business and (in the case of this clause (2)) not exceeding $25.0 million in the aggregate outstanding at any time.

Management Investors ”: the officers, directors, employees and other members of the management of any Parent Entity, the Borrower or any of their respective Subsidiaries, and Related Physicians, or family members or relatives of any of the foregoing, or trusts, partnerships or limited liability companies for the benefit of any of the foregoing, or any of their heirs, executors, successors and legal representatives, who at any date beneficially own or have the right to acquire, directly or indirectly, Capital Stock of the Borrower or any Parent Entity.

Management Stock ”: Capital Stock of the Borrower or any Parent Entity (including any options, warrants or other rights in respect thereof) held by any of the Management Investors.

Material Adverse Effect ”: a material adverse effect on ( a ) the business, operations, property or condition (financial or otherwise) of the Borrower and its Restricted Subsidiaries taken as a whole or ( b ) the validity or enforceability as to any Loan Party thereto of this Agreement or any of the other Loan Documents or the rights or remedies of the Agents and the Lenders under the Loan Documents or with respect to the Collateral taken as a whole.

Material Subsidiaries ”: Restricted Subsidiaries of the Borrower constituting, individually or in the aggregate (as if such Restricted Subsidiaries constituted a single Subsidiary), a “significant subsidiary” in accordance with Rule 1-02 under Regulation S-X.

Materials of Environmental Concern ”: any hazardous or toxic substances or materials or wastes defined, listed, or regulated as such in or under, or which may give rise to liability under, any applicable Environmental Law, including gasoline, petroleum (including crude oil or any fraction thereof), petroleum products or by-products, asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

Maturity Date ”: in respect of ( i ) the Initial Term Loans, December 1, 2023, as the context may require and ( ii ) for any Specified Refinancing Tranche the “Maturity Date” set forth in the applicable Specified Refinancing Amendment.

Maximum Incremental Facilities Amount ”: at any date of determination, the sum of ( i ) $1.3 billion (amounts Incurred pursuant to this clause (i), the “ Cash Capped Incremental Facility ”) plus ( ii ) an additional amount if, after giving effect to the Incurrence of such additional amount (or, after giving pro forma effect to the Incurrence of the entire committed amount of such additional amount), the Consolidated First-Lien Net Leverage Ratio shall not exceed 4.00 to 1.00 (as set forth in an officer’s certificate of a Responsible Officer of the Borrower delivered to the Administrative Agent at the time of such Incurrence, together with calculations demonstrating compliance with such ratio) (amounts Incurred pursuant to this clause (ii), the “ Ratio Incremental Facility ”) (it being understood that ( A ) if pro forma effect is given to the entire committed amount of any such additional amount, such committed amount may thereafter be borrowed and reborrowed in whole or in part, from time to time, without further

 

-42-


compliance with this clause (ii), ( B ) for purposes of so calculating the Consolidated First-Lien Net Leverage Ratio under this clause (ii), any additional amount Incurred pursuant to this clause (ii) shall be treated as if such amount is Consolidated First-Lien Net Indebtedness, regardless of whether such amount is actually secured or is secured by Liens ranking junior to the Liens securing the First Lien Obligations and ( C ) for purposes of so calculating the Consolidated First-Lien Net Leverage Ratio under this clause (ii) in determining the amount of Ratio Incremental Facilities that may be Incurred on any date of determination, Consolidated First-Lien Net Indebtedness shall not include Indebtedness Incurred pursuant to the Cash Capped Incremental Facility (and shall not give effect to any Discharge of Indebtedness from the proceeds thereof) on such date of determination).

Medicaid ”: collectively, the healthcare assistance program established by Title XIX of the Social Security Act (42 U.S.C. §§ 1396 et seq .) and any statutes succeeding thereto, and all laws, rules, regulations, manuals, orders, guidelines or requirements (whether or not having the force of law) pertaining to such program, in each case as the same may be amended, supplemented or otherwise modified from time to time.

Medicare ”: collectively, the health insurance program for the aged and disabled established by Title XVIII of the Social Security Act (42 U.S.C. §§ 1395 et seq .) and any statutes succeeding thereto, and all laws, rules, regulations manuals, orders or guidelines (whether or not having the force of law) pertaining to such program, in each case as the same may be amended, supplemented or otherwise modified from time to time.

Minimum Exchange Tender Condition ”: as defined in Subsection 2.7(b) .

Moody’s ”: Moody’s Investors Service, Inc., and its successors.

Mortgaged Fee Properties ”: the collective reference to each real property owned in fee by the Loan Parties required to be mortgaged as Collateral pursuant to the requirements of Subsection 7.9 , including the land and all buildings, improvements, structures and fixtures now or subsequently located thereon and owned by any such Loan Party.

Mortgages ”: each of the mortgages and deeds of trust, or similar security instruments executed and delivered by any Loan Party to the Collateral Agent, substantially in the form of Exhibit C , as the same may be amended, supplemented, waived or otherwise modified from time to time.

Multiemployer Plan ”: a Plan which is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

Municipal Contract Lien ”: any Lien incurred in connection with any of the Borrower’s or its Subsidiaries’ contracts with Governmental Authorities, including municipalities, providing for emergency 911 ambulance services.

Net Available Cash ”: from an Asset Disposition or Recovery Event, an amount equal to the cash payments received (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise, but only as and when received, but excluding any other consideration received in the form of assumption by the

 

-43-


acquiring Person of Indebtedness or other obligations relating to the properties or assets that are the subject of such Asset Disposition or Recovery Event or received in any other non-cash form) therefrom, in each case net of ( i ) all legal, title and recording tax expenses, commissions and other fees and expenses incurred, and all Federal, state, provincial, foreign and local taxes required to be paid or to be accrued as a liability under GAAP, as a consequence of such Asset Disposition or Recovery Event (including as a consequence of any transfer of funds in connection with the application thereof in accordance with Subsection 8.4 ), ( ii ) all payments made, and all installment payments required to be made, on any Indebtedness (other than Indebtedness secured by Liens on the Collateral that are expressly (pursuant to the ABL/Term Loan Intercreditor Agreement, Junior Lien Intercreditor Agreement or an Other Intercreditor Agreement, as applicable) pari passu with or junior to the Liens on the Collateral securing the First Lien Obligations) ( x ) that is secured by any assets subject to such Asset Disposition or involved in such Recovery Event, in accordance with the terms of any Lien upon such assets, or ( y ) that must by its terms, or in order to obtain a necessary consent to such Asset Disposition, or by applicable law, be repaid out of the proceeds from such Asset Disposition or Recovery Event, including but not limited to any payments required to be made to increase borrowing availability under any revolving credit facility, ( iii ) all distributions and other payments required to be made to minority interest holders in Subsidiaries or joint ventures as a result of such Asset Disposition or Recovery Event, or to any other Person (other than the Borrower or a Restricted Subsidiary) owning a beneficial interest in the assets disposed of in such Asset Disposition or Recovery Event, ( iv ) any liabilities or obligations associated with the assets disposed of in such Asset Disposition or involved in such Recovery Event and retained, indemnified or insured by the Borrower or any Restricted Subsidiary after such Asset Disposition or Recovery Event, including without limitation pension and other post-employment benefit liabilities, liabilities related to environmental matters, and liabilities relating to any indemnification obligations associated with such Asset Disposition or Recovery Event, ( v ) in the case of an Asset Disposition, the amount of any purchase price or similar adjustment ( x ) claimed by any Person to be owed by the Borrower or any Restricted Subsidiary, until such time as such claim shall have been settled or otherwise finally resolved, or ( y ) paid or payable by the Borrower or any Restricted Subsidiary, in either case in respect of such Asset Disposition and ( vi ) in the case of any Recovery Event, any amount thereof that constitutes or represents reimbursement or compensation for any amount previously paid or to be paid by the Borrower or any of its Subsidiaries.

Net Cash Proceeds ”: with respect to any issuance or sale of any securities of the Borrower or any Subsidiary by the Borrower or any Subsidiary, or any capital contribution, or any Incurrence of Indebtedness, the cash proceeds of such issuance, sale, contribution or Incurrence net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and other fees actually incurred in connection with such issuance, sale, contribution or Incurrence and net of taxes paid or payable as a result thereof.

New York Courts ”: as defined in Subsection 11.13(a) .

New York Supreme Court ”: as defined in Subsection 11.13(a) .

Non-Excluded Taxes ”: all Taxes other than Excluded Taxes.

 

-44-


Non-Extending Lender ”: as defined in Subsection 2.8(e) .

Notes ”: as defined in Subsection 2.2(a) .

NYFRB ”: the Federal Reserve Bank of New York.

NYFRB Rate ”: for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day(or for any day that is not a Business Day, for the immediately preceding Banking Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received to the Administrative Agent from a Federal funds broker of recognized standing selected by it; provided, further , that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

Obligations ”: with respect to any Indebtedness, any principal, premium (if any), interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Borrower or any Restricted Subsidiary whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, Guarantees of such Indebtedness (or of Obligations in respect thereof), other monetary obligations of any nature and all other amounts payable thereunder or in respect thereof.

Obligor ”: any purchaser of goods or services or other Person obligated to make payment to the Borrower or any of its Restricted Subsidiaries (other than any Restricted Subsidiary that is not a Loan Party) in respect of a purchase of such goods or services.

Offered Amount ”: as defined in Subsection 4.4(h)(iv)(1) .

Offered Discount ”: as defined in Subsection 4.4(h)(iv)(1) .

Operating Entity ”: a Person ( i ) that is an ambulatory surgery center, ( ii ) as to which the Borrower or any Restricted Subsidiary or any Hospital Joint Venture owns more than 50% of the outstanding Capital Stock and as to which a Person other than the Borrower or a Restricted Subsidiary or a Hospital Joint Venture has a noncontrolling or minority ownership interest and ( iii ) that is not subject to any contractual obligation that limits the ability of such Person to pay dividends or make any other distribution on any of such Person’s Capital Stock owned by the Borrower or any Restricted Subsidiary or any Hospital Joint Venture, other than restrictions comparable to those described in Subsection 8.3 (except transactions described in clauses (a), (d)(iv), (e) or (f) of such subsection).

Organizational Documents ”: with respect to any Person, ( a ) the articles of incorporation, certificate of incorporation or certificate of formation (or the equivalent organizational documents) of such Person, ( b ) the bylaws or operating agreement (or the equivalent governing documents) of such Person and ( c ) any document (other than policy or procedural manuals or other similar documents) setting forth the manner of election or duties of the directors or managing members of such Person (if any) and the designation, amount or relative rights, limitations and preferences of any class or series of such Person’s Capital Stock.

 

-45-


Other Intercreditor Agreement ”: an intercreditor agreement in form and substance reasonably satisfactory to the Borrower and the Collateral Agent.

Other Representatives ”: in respect of the Initial Term Loans, each of JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc., in their collective capacity as Lead Arrangers and Deutsche Bank Securities Inc., BMO Capital Markets Corp. and RBC Capital Markets, in their collective capacity as co-managers.

Outstanding Amount ”: with respect to the Loans on any date, the principal amount thereof after giving effect to any borrowings and prepayments or repayments thereof occurring on such date.

Overnight Bank Funding Rate ”: for any day, the rate comprised of both overnight federal funds and overnight Eurodollar borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

Parent Entity ”: any Other Parent, and any other Person that is a Subsidiary of any Other Parent and of which the Borrower is a Subsidiary. As used herein, “ Other Parent ” means a Person of which the Borrower becomes a Subsidiary after the Restatement Effective Date, provided that either ( x ) immediately after the Borrower first becomes a Subsidiary of such Person, more than 50.0% of the Voting Stock of such Person shall be held by one or more Persons that held more than 50.0% of the Voting Stock of the Borrower or a Parent Entity of the Borrower immediately prior to the Borrower first becoming such Subsidiary or ( y ) such Person shall be deemed not to be an Other Parent for the purpose of determining whether a Change of Control shall have occurred by reason of the Borrower first becoming a Subsidiary of such Person.

Parent Expenses ”: ( i ) costs (including all professional fees and expenses) incurred by any Parent Entity in connection with maintaining its existence or in connection with its reporting obligations under, or in connection with compliance with, applicable laws or applicable rules of any governmental, regulatory or self-regulatory body or stock exchange, this Agreement or any other agreement or instrument relating to Indebtedness of the Borrower or any Restricted Subsidiary, including in respect of any reports filed with respect to the Securities Act, the Exchange Act or the respective rules and regulations promulgated thereunder, ( ii ) expenses incurred by any Parent Entity in connection with the acquisition, development, maintenance, ownership, prosecution, protection and defense of its intellectual property and associated rights (including but not limited to trademarks, service marks, trade names, trade dress, patents, copyrights and similar rights, including registrations and registration or renewal applications in respect thereof; inventions, processes, designs, formulae, trade secrets, know-how, confidential information, computer software, data and documentation, and any other intellectual property rights; and licenses of any of the foregoing) to the extent such intellectual property and associated rights relate to the business or businesses of the Borrower or any Subsidiary thereof, ( iii ) indemnification obligations of any Parent Entity owing to directors, officers, employees or

 

-46-


other Persons under its charter or bylaws or pursuant to written agreements with or for the benefit of any such Person, or obligations in respect of director and officer insurance (including premiums therefor), ( iv ) other administrative and operational expenses of any Parent Entity incurred in the ordinary course of business, and ( v ) fees and expenses incurred by any Parent Entity in connection with any offering of Capital Stock or Indebtedness, ( w ) which offering is not completed, or ( x ) where the net proceeds of such offering are intended to be received by or contributed or loaned to the Borrower or a Restricted Subsidiary, or ( y ) in a prorated amount of such expenses in proportion to the amount of such net proceeds intended to be so received, contributed or loaned, or ( z ) otherwise on an interim basis prior to completion of such offering so long as any Parent Entity shall cause the amount of such expenses to be repaid to the Borrower or the relevant Restricted Subsidiary out of the proceeds of such offering promptly if completed.

Participant ”: as defined in Subsection 11.6(c) .

Participant Register ”: as defined in Subsection 11.6(b)(v) .

Participating Lender ”: as defined in Subsection 4.4(h)(iii)(2) .

Patient Receivables ”: with respect to any Restricted Subsidiary, the patient accounts receivable of such Restricted Subsidiary existing or hereafter created, any and all rights to receive payments due on such accounts receivable from any Governmental Authority payor under or in respect of such accounts receivable (including, without limitation, Medicare, Medicaid, CHAMPVA and TRICARE), and all proceeds of or in any way derived, whether directly or indirectly, from any of the foregoing (including, without limitation, all interest, finance charges and other amounts payable by any Governmental Authority obligor, directly or indirectly, in respect thereof).

PBGC ”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor thereto).

Permitted Debt Exchange ”: as defined in Subsection 2.7(a) .

Permitted Debt Exchange Notes ”: as defined in Subsection 2.7(a) .

Permitted Debt Exchange Offer ”: as defined in Subsection 2.7(a) .

Permitted Investment ”: an Investment by the Borrower or any Restricted Subsidiary in, or consisting of, any of the following:

(i) a Restricted Subsidiary, the Borrower, or a Person that will, upon the making of such Investment, become a Restricted Subsidiary (and any Investment held by such Person that was not acquired by such Person in contemplation of so becoming a Restricted Subsidiary);

(ii) another Person if as a result of such Investment such other Person is merged or consolidated with or into, or transfers or conveys all or substantially all its assets to, or is liquidated into, the Borrower or a Restricted Subsidiary (and, in each case, any Investment held by such other Person that was not acquired by such Person in contemplation of such merger, consolidation or transfer);

 

-47-


(iii) Temporary Cash Investments, Investment Grade Securities or Cash Equivalents;

(iv) receivables owing to the Borrower or any Restricted Subsidiary, if created or acquired in the ordinary course of business;

(v) any securities or other Investments received as consideration in, or retained in connection with, sales or other dispositions of property or assets, including Asset Dispositions made in compliance with Subsection 8.4 ;

(vi) securities or other Investments received in settlement of debts created in the ordinary course of business and owing to, or of other claims asserted by, the Borrower or any Restricted Subsidiary, or as a result of foreclosure, perfection or enforcement of any Lien, or in satisfaction of judgments, including in connection with any bankruptcy proceeding or other reorganization of another Person;

(vii) Investments in existence or made pursuant to legally binding written commitments in existence on the Restatement Effective Date and set forth on Schedule 1.1(f) ;

(viii) Currency Agreements, Interest Rate Agreements, Commodities Agreements and related Hedging Obligations, which obligations are Incurred in compliance with Subsection 8.1 ;

(ix) pledges or deposits ( x ) with respect to leases or utilities provided to third parties in the ordinary course of business or ( y ) otherwise described in the definition of “Permitted Liens” or made in connection with Liens permitted under Subsection 8.6 ;

(x) ( 1 ) Investments in or by any Special Purpose Subsidiary, or in connection with a Financing Disposition by, to, in or in favor of any Special Purpose Entity, including Investments of funds held in accounts permitted or required by the arrangements governing such Financing Disposition or any related Indebtedness; or ( 2 ) any promissory note issued by the Borrower, or any Parent Entity; provided that if such Parent Entity receives cash from the relevant Special Purpose Entity in exchange for such note, an equal cash amount is contributed by any Parent Entity to the Borrower;

(xi) bonds secured by assets leased to and operated by the Borrower or any Restricted Subsidiary that were issued in connection with the financing of such assets so long as the Borrower or any Restricted Subsidiary may obtain title to such assets at any time by paying a nominal fee, canceling such bonds and terminating the transaction;

(xii) [Reserved];

(xiii) any Investment to the extent made using Capital Stock of the Borrower (other than Disqualified Stock), or Capital Stock of any Parent Entity, as consideration;

 

-48-


(xiv) Management Advances;

(xv) Investments in Related Businesses in an aggregate amount outstanding at any time not to exceed an amount equal to the greater of $550.0 million and 3.33% of Consolidated Total Assets;

(xvi) any transaction to the extent it constitutes an Investment that is permitted by and made in accordance with the provisions of Subsection 8.5(b) (except transactions described in clauses (i), (ii)(4), (iii), (v), (vi), (ix), (x) and (xi) therein), including any Investment pursuant to any transaction described in Subsection 8.5(b)(ii) (whether or not any Person party thereto is at any time an Affiliate of the Borrower);

(xvii) other Investments in an aggregate amount outstanding at any time not to exceed an amount equal to the greater of $550.0 million and 3.33% of Consolidated Total Assets;

(xviii) loans and advances to and other Investments in Related Corporations ( a ) made on a basis consistent with past practices on or prior to the Restatement Effective Date or made in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts, including obtaining letters of credit on behalf of Related Corporations or ( b ) in connection with the acquisition of, or Investment in, any Person that becomes a Related Corporation (promptly following such acquisition or Investment), in any such case by the Related Corporation in which such loans, advances or other Investments were made in or to on a basis consistent with past practices on or prior to the Restatement Effective Date or made in the ordinary course of business, including the entry into applicable Related Corporation Contracts in connection therewith; and

(xix) any Investment by any Captive Insurance Subsidiary in connection with the provision of insurance to the Borrower or any of its Subsidiaries, which Investment is made in the ordinary course of business of such Captive Insurance Subsidiary, or by reason of applicable law, rule, regulation or order, or that is required or approved by any regulatory authority having jurisdiction over such Captive Insurance Subsidiary or its business, as applicable.

If any Investment pursuant to clause (xv) or (xvii) above, or Subsection 8.2(b)(vi) , as applicable, is made in any Person that is not a Restricted Subsidiary and such Person thereafter ( A ) becomes a Restricted Subsidiary or ( B ) is merged or consolidated into, or transfers or conveys all or substantially all of its assets to, or is liquidated into, the Borrower or a Restricted Subsidiary, then such Investment shall thereafter be deemed to have been made pursuant to clause (i) or (ii) above, respectively, and not clause (xv) or (xvii) above, or Subsection 8.2(b)(vi) , as applicable.

Permitted Liens ”:

(a) Liens for taxes, assessments or other governmental charges not yet delinquent or the nonpayment of which in the aggregate would not reasonably be expected to have a material adverse effect on the Borrower and its Restricted Subsidiaries or that are being contested in good faith and by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of the Borrower or a Subsidiary thereof, as the case may be, in accordance with GAAP;

 

-49-


(b) Liens with respect to outstanding motor vehicle fines and carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business in respect of obligations that are not overdue for a period of more than 60 days or that are bonded or that are being contested in good faith and by appropriate proceedings;

(c) pledges, deposits or Liens in connection with workers’ compensation, professional liability insurance, insurance programs, unemployment insurance and other social security and other similar legislation or other insurance related obligations (including, without limitation, pledges or deposits securing liability to insurance carriers under insurance or self-insurance arrangements);

(d) pledges, deposits or Liens to secure the performance of bids, tenders, trade, government or other contracts (other than for borrowed money), obligations for utilities, leases, licenses, statutory obligations, completion guarantees, surety, judgment, appeal or performance bonds, other similar bonds, instruments or obligations, and other obligations of a like nature incurred in the ordinary course of business;

(e) easements (including reciprocal easement agreements), rights-of-way, building, zoning and similar restrictions, utility agreements, covenants, reservations, restrictions, encroachments, charges, and other similar encumbrances or title defects incurred, or leases or subleases granted to others, in the ordinary course of business, which do not in the aggregate materially interfere with the ordinary conduct of the business of the Borrower and its Subsidiaries, taken as a whole;

(f) Liens existing on, or provided for under written arrangements existing on, the Restatement Effective Date and set forth on Schedule 1.1(e) , or (in the case of any such Liens securing Indebtedness of the Borrower or any of its Subsidiaries existing or arising under written arrangements existing on the Restatement Effective Date) securing any Refinancing Indebtedness in respect of such Indebtedness, so long as the Lien securing such Refinancing Indebtedness is limited to all or part of the same property or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or under such written arrangements could secure) the original Indebtedness;

(g) ( i ) mortgages, liens, security interests, restrictions, encumbrances or any other matters of record that have been placed by any developer, landlord or other third party on property over which the Borrower or any Restricted Subsidiary of the Borrower has easement rights or on any leased property and subordination or similar agreements relating thereto and ( ii ) any condemnation or eminent domain proceedings affecting any real property;

(h) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof) consisting of Hedging Obligations, Bank Products Obligations, Purchase Money Obligations or Capitalized Lease Obligations Incurred in compliance with Subsection 8.1 ;

 

-50-


(i) Liens arising out of judgments, decrees, orders or awards in respect of which the Borrower or any Restricted Subsidiary shall in good faith be prosecuting an appeal or proceedings for review, which appeal or proceedings shall not have been finally terminated, or if the period within which such appeal or proceedings may be initiated shall not have expired;

(j) leases, subleases, licenses or sublicenses to or from third parties;

(k) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof) consisting of ( 1 ) Indebtedness Incurred in compliance with Subsection 8.1(b)(i) pursuant to ( a ) this Agreement and the other Loan Documents, ( b ) the Senior ABL Facility, ( c ) any Permitted Debt Exchange Notes (and any Refinancing Indebtedness in respect thereof), ( d ) any Rollover Indebtedness (and any Refinancing Indebtedness in respect thereof) and ( e ) any Additional Obligations (and any Refinancing Indebtedness in respect thereof), provided , that any Liens on Collateral pursuant to this clause (k)(1) shall be subject to the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement or an Other Intercreditor Agreement, ( 2 ) Indebtedness Incurred in compliance with clauses (b)(iv) , (b)(v) , (b)(vii) , (b)(viii) and, so long as same are limited to Liens on cash, Cash Equivalents and Temporary Cash Investments, (b)(xiv)(C) and (b)(xiv)(D) of Subsection 8.1 , or clauses (b)(iii)(B) and (C)  of Subsection 8.1 (other than Refinancing Indebtedness Incurred in respect of Indebtedness described in Subsections 8.1(a) and 8.1(b)(iii)(A) ), ( 3 ) any Indebtedness Incurred in compliance with Subsection 8.1(b)(xiii) , provided that any Liens securing such Indebtedness shall rank junior to the Liens securing the Term Loan Facility Obligations and shall be subject to the Junior Lien Intercreditor Agreement or an Other Intercreditor Agreement, ( 4 ) Indebtedness of any Restricted Subsidiary that is not a Subsidiary Guarantor (limited, in the case of this clause (k)(4) , to Liens on any of the property and assets of any Restricted Subsidiary that is not a Subsidiary Guarantor), or ( 5 ) obligations in respect of Management Advances or Management Guarantees; in each case including Liens securing any Guarantee of any thereof;

(l) Liens existing on property or assets of a Person at the time such Person becomes a Subsidiary of the Borrower (or at the time the Borrower or a Restricted Subsidiary acquires such property or assets, including any acquisition by means of a merger or consolidation with or into the Borrower or any Restricted Subsidiary); provided , however , that such Liens are not created in connection with, or in contemplation of, such other Person becoming such a Subsidiary (or such acquisition of such property or assets), and that such Liens are limited to all or part of the same property or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or, under the written arrangements under which such Liens arose, could secure) the obligations to which such Liens relate; provided , further , that for purposes of this clause (l), if a Person other than the Borrower is the Successor Borrower with respect thereto, any Subsidiary thereof shall be deemed to become a Subsidiary of the Borrower, and any property or assets of such Person or any such Subsidiary shall be deemed acquired by the Borrower or a Restricted Subsidiary, as the case may be, when such Person becomes such Successor Borrower;

(m) Liens on Capital Stock, Indebtedness or other securities of an Unrestricted Subsidiary that secure Indebtedness or other obligations of such Unrestricted Subsidiary;

 

-51-


(n) any encumbrance or restriction (including, but not limited to, pursuant to put and call agreements or buy/sell arrangements) with respect to Capital Stock of any joint venture or similar arrangement pursuant to any joint venture or similar agreement;

(o) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof) consisting of Refinancing Indebtedness (other than any Indebtedness described in clause (k)(1) above of this definition) Incurred in respect of any Indebtedness secured by, or securing any refinancing, refunding, extension, renewal or replacement (in whole or in part) of any other obligation secured by, any other Permitted Liens, provided that any such new Lien is limited to all or part of the same property or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or, under the written arrangements under which the original Lien arose, could secure) the obligations to which such Liens relate;

(p) Liens ( 1 ) arising by operation of law (or by agreement to the same effect) in the ordinary course of business, including Liens arising under or by reason of the Perishable Agricultural Commodities Act of 1930, as amended from time to time, ( 2 ) on property or assets under construction (and related rights) in favor of a contractor or developer or arising from progress or partial payments by a third party relating to such property or assets, ( 3 ) [Reserved], ( 4 ) on cash set aside at the time of the Incurrence of any Indebtedness or government securities purchased with such cash, in either case to the extent that such cash or government securities prefund the payment of interest on such Indebtedness and are held in an escrow account or similar arrangement to be applied for such purpose, ( 5 ) securing or arising by reason of any netting or set-off arrangement entered into in the ordinary course of banking or other trading activities (including in connection with purchase orders and other agreements with customers), ( 6 ) in favor of the Borrower or any Subsidiary (other than Liens on property or assets of the Borrower or any Subsidiary Guarantor in favor of any Subsidiary that is not a Subsidiary Guarantor), ( 7 ) arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into in the ordinary course of business, ( 8 ) on inventory or other goods and proceeds securing obligations in respect of bankers’ acceptances issued or created to facilitate the purchase, shipment or storage of such inventory or other goods, ( 9 ) relating to pooled deposit or sweep accounts to permit satisfaction of overdraft, cash pooling or similar obligations incurred in the ordinary course of business, ( 10 ) attaching to commodity trading or other brokerage accounts incurred in the ordinary course of business or ( 11 ) arising in connection with repurchase agreements permitted under Subsection 8.1 on assets that are the subject of such repurchase agreements;

(q) other Liens securing Indebtedness or other obligations that in the aggregate do not exceed an amount equal to the greater of $350.0 million and 2.10% of Consolidated Total Assets at any time outstanding;

(r) Liens ( 1 ) in favor of any Special Purpose Entity in connection with any Financing Disposition, or ( 2 ) Incurred in connection with a Special Purpose Financing pursuant to Subsection 8.1(b)(ix) ;

(s) Retained Rights; and

(t) Municipal Contract Liens;

 

-52-


for purposes of determining compliance with this definition, ( t ) a Lien need not be incurred solely by reference to one category of Permitted Liens described in this definition but may be incurred under any combination of such categories (including in part under one such category and in part under any other such category), ( u ) the principal amount of Indebtedness secured by a Lien under any category of Permitted Liens shall be determined after giving effect to the application of proceeds of any such Indebtedness to refinance any such other Indebtedness, ( v ) in the event that a Lien (or any portion thereof) meets the criteria of one or more of such categories of Permitted Liens, the Borrower shall, in its sole discretion, classify or reclassify such Lien (or any portion thereof) in any manner that complies with this definition, ( w ) in the event that a portion of Indebtedness secured by a Lien could be classified as secured in part pursuant to clause (k)(1) above in respect of Indebtedness Incurred pursuant to the Ratio Incremental Facility (giving effect to the Incurrence of such portion of such Indebtedness), the Borrower, in its sole discretion, may classify such portion of such Indebtedness (and any Obligations in respect thereof) as having been secured pursuant to clause (k)(1) above in respect of Indebtedness Incurred pursuant to the Ratio Incremental Facility and the remainder of the Indebtedness as having been secured pursuant to such clause (k)(1) in respect of Indebtedness Incurred pursuant to Subsection 8.1(b)(i) (other than pursuant to the Ratio Incremental Facility) or one or more of the other clauses of this definition, ( x ) if any Liens securing Indebtedness are Incurred to refinance Liens securing Indebtedness initially Incurred (or, to refinance Liens Incurred to refinance Liens initially Incurred) in reliance on a basket measured by reference to a percentage of Consolidated Total Assets at the time of Incurrence of such Indebtedness or other obligations, and is refinanced by any Indebtedness or other obligation secured by any Lien incurred by reference to such category of Permitted Liens, and such refinancing would cause the percentage of Consolidated Total Assets to be exceeded if calculated based on the Consolidated Total Assets on the date of such refinancing, such percentage of Consolidated Total Assets shall not be deemed to be exceeded (and such refinancing Lien shall be deemed permitted) so long as the principal amount of such refinancing Indebtedness or other obligations does not exceed an amount equal to the principal amount of such Indebtedness or other obligations being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing and ( y ) if any Indebtedness or other obligation is secured by any Lien outstanding under any category of Permitted Liens measured by reference to a dollar amount, and is refinanced by any Indebtedness or other obligation secured by any Lien Incurred by reference to such category of Permitted Liens, and such refinancing (or any subsequent refinancing) would cause such dollar amount to be exceeded, such dollar amount shall not be deemed to be exceeded (and such refinancing Lien shall be deemed permitted) so long as the principal amount of such refinancing Indebtedness or other obligation does not exceed an amount equal to the principal amount of such Indebtedness being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing.

Permitted Payment ”: as defined in Subsection 8.2(b) .

Person ”: an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.

 

-53-


Plan ”: at a particular time, any employee benefit plan which is covered by ERISA and in respect of which the Borrower or a Commonly Controlled Entity is an “employer” as defined in Section 3(5) of ERISA.

Platform ”: Intralinks, SyndTrak Online or any other similar electronic distribution system.

Preferred Stock ”: as applied to the Capital Stock of any corporation, Capital Stock of any class or classes (however designated) that by its terms is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation, over shares of Capital Stock of any other class of such corporation.

Prepayment Date ”: as defined in Subsection 4.4(d) .

Prime Rate ”: the rate of interest per annum publicly announced from time to time by the Administrative Agent as its “prime rate” (which, in the case of JPMorgan Chase Bank, N.A. shall be its “prime rate” in effect at its office located at 270 Park Avenue, New York, New York); each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

Purchase ”: as defined in clause (4) of the definition of “Consolidated Coverage Ratio”.

Purchase Money Obligations ”: any Indebtedness Incurred to finance or refinance the acquisition, leasing, construction or improvement of property (real or personal) or assets, and whether acquired through the direct acquisition of such property or assets or the acquisition of the Capital Stock of any Person owning such property or assets, or otherwise.

Qualifying Lender ”: as defined in Subsection 4.4(h)(iv)(3) .

Ratio Incremental Facility ”: as defined in the definition of “Maximum Incremental Facilities Amount”.

Receivable ”: a right to receive payment pursuant to an arrangement with another Person pursuant to which such other Person is obligated to pay, as determined in accordance with GAAP.

Recovery Event ”: any settlement of or payment in respect of any property or casualty insurance claim or any condemnation proceeding relating to any asset of any Loan Party giving rise to Net Available Cash to such Loan Party, as the case may be, in excess of $5.0 million, to the extent that such settlement or payment does not constitute reimbursement or compensation for amounts previously paid by the Borrower or any other Loan Party in respect of such casualty or condemnation.

refinance ”: refinance, refund, replace, renew, repay, modify, restate, defer, substitute, supplement, reissue, resell or extend (including pursuant to any defeasance or discharge mechanism); and the terms “ refinances ,” “ refinanced ” and “ refinancing ” as used for any purpose in this Agreement shall have a correlative meaning.

 

-54-


Refinancing Agreement ”: as defined in Subsection 8.3(c) .

Refinancing Indebtedness ”: Indebtedness that is Incurred to refinance any Indebtedness existing on the Restatement Effective Date and set forth on Schedule 8.1 or Incurred in compliance with this Agreement (including Indebtedness of the Borrower that refinances Indebtedness of any Restricted Subsidiary (to the extent permitted in this Agreement) and Indebtedness of any Restricted Subsidiary that refinances Indebtedness of another Restricted Subsidiary) including Indebtedness that refinances Refinancing Indebtedness; provided , that ( 1 ) if the Indebtedness being refinanced is Subordinated Obligations or Guarantor Subordinated Obligations, the Refinancing Indebtedness ( x ) has a final Stated Maturity at the time such Refinancing Indebtedness is Incurred that is equal to or greater than the final Stated Maturity of the Indebtedness being refinanced (or, if shorter, the Maturity Date of the Initial Term Loans), ( y ) has a weighted average life to maturity at the time such Refinancing Indebtedness is Incurred that is equal to or longer than the remaining weighted average life to maturity of the Indebtedness being refinanced (or, if shorter, the remaining weighted average life to maturity of the Initial Term Loans) and ( z ) if an Event of Default under Subsection 9.1(a) or ( f ) is continuing, is subordinated in right of payment to the Term Loan Facility Obligations to the same extent as the Indebtedness being refinanced, ( 2 ) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with original issue discount, an aggregate issue price) that is equal to or less than the sum of ( x ) the aggregate principal amount (or if issued with original issue discount, the aggregate accreted value) then outstanding of the Indebtedness being refinanced, plus ( y ) fees, underwriting discounts, premiums and other costs and expenses Incurred in connection with such Refinancing Indebtedness, ( 3 ) Refinancing Indebtedness shall not include ( x ) Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor that refinances Indebtedness of the Borrower or a Subsidiary Guarantor that could not have been initially Incurred by such Restricted Subsidiary pursuant to Subsection 8.1 or ( y ) Indebtedness of the Borrower or a Restricted Subsidiary that refinances Indebtedness of an Unrestricted Subsidiary, ( 4 ) if the Indebtedness being refinanced constitutes Additional Obligations, Rollover Indebtedness, Permitted Debt Exchange Notes or Term Loan Facility Obligations incurred pursuant to Subsection 8.1(b)(i)(II)(a) (or Refinancing Indebtedness in respect of the foregoing Indebtedness), ( w ) the Refinancing Indebtedness complies with the requirements of the definition of “Additional Obligations”, ( x ) if the Indebtedness being refinanced is unsecured and an Event of Default under Subsection 9.1(a) or (f)  is continuing, the Refinancing Indebtedness is unsecured, ( y ) if the Indebtedness being refinanced is secured by a Lien ranking junior to the Liens securing the Term Loan Facility Obligations and an Event of Default under Subsection 9.1(a) or (f)  is continuing, the Refinancing Indebtedness is unsecured or secured by a Lien ranking junior to the Liens securing the Term Loan Facility Obligations and ( z ) if the Indebtedness being refinanced constitutes Term Loan Facility Obligations of the type described above in this clause (4), the Refinancing Indebtedness is incurred pursuant to (and evidenced by) Additional Obligations Documents (and not this Agreement and the other Loan Documents), and ( 5 ) if the Indebtedness being refinanced is the Senior Notes (or Refinancing Indebtedness in respect thereof), ( x ) if no Event of Default under Subsection 9.1(a) or (f)  is continuing, such Refinancing Indebtedness shall comply with the requirements of clauses (i) and (iii) of the definition of “Additional Obligations” and ( y ) in all other cases, the terms of such Refinancing

 

-55-


Indebtedness ( A ) shall not provide for a maturity date earlier than the maturity date of the Senior Notes or a weighted average life to maturity shorter than the remaining weighted average life to maturity of the Senior Notes and ( B ) shall not provide for any mandatory repayment or redemption from asset sales, casualty or condemnation events or excess cash flow on terms no less favorable to the Lenders than those under the Senior Notes Indenture.

Register ”: as defined in Subsection 11.6(b)(iv) .

Regulation D ”: Regulation D of the Board as in effect from time to time.

Regulation S-X ”: Regulation S-X promulgated by the United States Securities and Exchange Commission, as in effect on the Restatement Effective Date.

Regulation T ”: Regulation T of the Board as in effect from time to time.

Regulation U ”: Regulation U of the Board as in effect from time to time.

Regulation X ”: Regulation X of the Board as in effect from time to time.

Reinvestment Period ”: as defined in Subsection 8.4(b)(i) .

Related Billing Entity ”: any Person whose only substantial activity is invoicing and collecting payments for professional medical services on behalf of a Related Professional Corporation or a Subsidiary of the Borrower.

Related Business ”: those businesses in which the Borrower or any of its Subsidiaries is engaged on the Restatement Effective Date, or that are similar, related, complementary, incidental or ancillary thereto or extensions, developments or expansions thereof.

Related Corporation ”: ( i ) a Related Professional Corporation, ( ii ) a Related Billing Entity, ( iii ) a Hospital Joint Venture or ( iv ) an Operating Entity.

Related Corporation Contracts ”: ( i ) management, practice support, administrative support, consulting and similar agreements, entered into on a basis consistent with past practices on or prior to the Restatement Effective Date or entered into in the ordinary course of business, with Related Corporations and ( ii ) joint venture agreements (including operating agreements and partnership agreements) entered into on a basis consistent with past practices on or prior to the Restatement Effective Date or entered into in the ordinary course of business with respect to Related Corporations.

Related Parties ”: with respect to any Person, such Person’s affiliates and the partners, officers, directors, trustees, employees, shareholders, members, attorneys and other advisors, agents and controlling persons of such person and of such person’s affiliates and “ Related Party ” shall mean any of them.

 

-56-


Related Physicians ”: physicians or independent contractors that own, are employed by, or are under contract with, a Related Professional Corporation or a Subsidiary of the Borrower.

Related Professional Corporation ”: any Person that is owned by one or more physicians and/or independent contractor physicians, in each case to whom a Subsidiary of the Borrower or another Related Professional Corporation provides management services pursuant to a management services, practice support or similar agreement.

Related Taxes ”: ( x ) any taxes, charges or assessments, including but not limited to sales, use, transfer, rental, ad valorem, value added, stamp, property, consumption, franchise, license, capital, net worth, gross receipts, excise, occupancy, intangibles or similar taxes, charges or assessments (other than federal, state or local taxes measured by income and federal, state or local withholding imposed by any government or other taxing authority on payments made by any Parent Entity other than to another Parent Entity), required to be paid by any Parent Entity by virtue of its being incorporated or having Capital Stock outstanding (but not by virtue of owning stock or other equity interests of any corporation or other entity other than the Borrower, any of its Subsidiaries or any Parent Entity), or being a holding company parent of the Borrower, any of its Subsidiaries or any Parent Entity or receiving dividends from or other distributions in respect of the Capital Stock of the Borrower, any of its Subsidiaries or any Parent Entity, or having guaranteed any obligations of the Borrower or any Subsidiary thereof, or having made any payment in respect of any of the items for which the Borrower or any of its Subsidiaries is permitted to make payments to any Parent Entity pursuant to Subsection 8.2 , or acquiring, developing, maintaining, owning, prosecuting, protecting or defending its intellectual property and associated rights (including but not limited to receiving or paying royalties for the use thereof) relating to the business or businesses of the Borrower or any Subsidiary thereof, ( y ) any taxes attributable to any taxable period (or portion thereof) ending on or prior to the Restatement Effective Date, or to the consummation of any of the Transactions, or to any Parent Entity’s receipt of (or entitlement to) any payment in connection with the Transactions, including any payment received after the Restatement Effective Date pursuant to any agreement related to the Transactions or ( z ) any other federal, state, foreign, provincial or local taxes measured by income for which any Parent Entity is liable up to an amount not to exceed, with respect to federal taxes, the amount of any such taxes that the Borrower and its Subsidiaries would have been required to pay on a separate company basis, or on a consolidated basis as if the Borrower had filed a consolidated return on behalf of an affiliated group (as defined in Section 1504 of the Code) of which it were the common parent, or with respect to state and local taxes, the amount of any such taxes that the Borrower and its Subsidiaries would have been required to pay on a separate company basis, or on a consolidated, combined, unitary or affiliated basis as if the Borrower had filed a consolidated, combined, unitary or affiliated return on behalf of an affiliated group (as defined in the applicable state or local tax laws for filing such return) consisting only of the Borrower and its Subsidiaries. Taxes include all interest, penalties and additions relating thereto.

Reorganization ”: with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241 of ERISA.

 

-57-


Reportable Event ”: any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the 30 day notice period is waived under Section 21, 22, 23, 24, 25, 27 or 28 of PBGC Regulation Section 4043 or any successor regulation thereto.

Repricing Transaction ”: the prepayment, refinancing, substitution or replacement of all or a portion of the Initial Term Loans (including, without limitation, as may be effected through any amendment, waiver or modification to this Agreement relating to the interest rate for, or weighted average yield of, the Initial Term Loans), ( a ) if the primary purpose of such prepayment, refinancing, substitution, replacement, amendment, waiver or modification is (as reasonably determined by the Borrower in good faith) to refinance the Initial Term Loans at a lower “effective yield” (taking into account, among other factors, margin, upfront or similar fees or original issue discount shared with all providers of such financing, but excluding the effect of any arrangement, commitment, underwriting, structuring, syndication or other fees payable in connection therewith that are not shared with all providers of such financing, and without taking into account any fluctuations in the Adjusted LIBOR Rate, but including any LIBOR floor or similar floor that is higher than the then Adjusted LIBOR Rate); ( b ) if the prepayment, refinancing, substitution, replacement, amendment, waiver or modification is effectuated by the incurrence by the Borrower or any Restricted Subsidiary of new Indebtedness, such new Indebtedness is first lien secured term loan bank financing; and ( c ) if such prepayment, refinancing, substitution, replacement, amendment, waiver or modification results in such first lien secured term loan bank financing having an “effective yield” (as reasonably determined by the Administrative Agent, in consultation with the Borrower, consistent with generally accepted financial practices, after giving effect to, among other factors, margin, upfront or similar fees or original issue discount shared with all providers of such financing (calculated based on assumed four-year average life and without present value discount), but excluding the effect of any arrangement, commitment, underwriting, structuring, syndication or other fees payable in connection therewith that are not shared with all providers of such financing, and without taking into account any fluctuations in the Adjusted LIBOR Rate, but including any LIBOR floor or similar floor that is higher than the then applicable Adjusted LIBOR Rate) that is less than the “effective yield” (as reasonably determined by the Administrative Agent, in consultation with the Borrower, on the same basis) of the Initial Term Loans prior to being so prepaid, refinanced, substituted or replaced or subject to such amendment, waiver or modification to this Agreement.

Required Lenders ”: Lenders, the sum of whose outstanding Individual Lender Exposures represents a majority of the sum of the Individual Lender Exposures at such time.

Requirement of Law ”: as to any Person, the Organizational Documents of such Person, and any law, statute, ordinance, code, decree, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its material property or to which such Person or any of its material property is subject, including laws, ordinances and regulations pertaining to zoning, occupancy and subdivision of real properties; provided that the foregoing shall not apply to any non-binding recommendation of any Governmental Authority.

Responsible Officer ”: as to any Person, any of the following officers of such Person: ( a ) the chief executive officer or the president of such Person and, with respect to financial matters, the chief financial officer, the treasurer or the controller of such Person, ( b ) any

 

-58-


vice president of such Person or, with respect to financial matters, any assistant treasurer or assistant controller of such Person, in each case who has been designated in writing to the Administrative Agent or the Collateral Agent as a Responsible Officer by such chief executive officer or president of such Person or, with respect to financial matters, by such chief financial officer of such Person, ( c ) with respect to Subsection 7.7 and without limiting the foregoing, the general counsel of such Person and ( d ) with respect to ERISA matters, the senior vice president – human resources (or substantial equivalent) of such Person.

Restatement Effective Date ”: December 1, 2016.

Restatement Effective Time ”: as defined in the Seventh Amendment.

Restricted Government Accounts ”: collectively, any and all Accounts which are ( a ) Medicare Accounts, ( b ) Medicaid Accounts, ( c ) TRICARE Accounts, ( d ) CHAMPVA Accounts, in each case, pursuant to Medicare, Medicaid, TRICARE, CHAMPVA or any other similar or replacement laws, rules or regulations of a Governmental Authority as amended or re-enacted from time to time and ( e ) Accounts arising from services provided under agreements with the U.S. Department of Health and Human Services but only to the extent such Accounts are subject to Medicare, Medicaid, TRICARE, CHAMPVA or any other similar or replacement laws, rules or regulations of a Governmental Authority as amended or re-enacted from time to time.

Restricted Payment ”: as defined in Subsection 8.2(a) .

Restricted Payment Transaction ”: any Restricted Payment permitted pursuant to Subsection 8.2 , any Permitted Payment, any Permitted Investment, or any transaction specifically excluded from the definition of the term “Restricted Payment” (including pursuant to the exception contained in clause (i) of such definition and the parenthetical exclusions contained in clauses (ii) and (iii) of such definition).

Restricted Subsidiary ”: any Subsidiary of the Borrower other than an Unrestricted Subsidiary.

Retained Rights ”: with respect to any Patient Receivable owing from any Governmental Authority, the rights of any payee granted by applicable law and regulation over such Patient Receivable, which in the absence of a court order in the manner expressly contemplated by applicable state and federal law are subject to restrictions on assignment, pledging or are otherwise encumbered by applicable law or regulation, including, without limitation, and as applicable, restrictions on the collection thereof and discretion over the transfer thereof, to any party and restrictions on any such party’s ability to enforce the claim giving rise to such Patient Receivable against such Governmental Authority.

Rollover Indebtedness ”: means Indebtedness of a Loan Party issued to any Lender in lieu of such Lender’s pro rata portion of any repayment of Term Loans made pursuant to Subsection 4.4(a) or (b) ; so long as (other than in connection with a refinancing in full of the Facilities) such Indebtedness would not have a weighted average life to maturity earlier than the remaining weighted average life to maturity of the Term Loans being repaid.

 

-59-


S&P ”: Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., and its successors.

Sale ”: as defined in clause (3) of the definition of “Consolidated Coverage Ratio”.

SEC ”: the Securities and Exchange Commission.

Secured Parties ”: the “Secured Parties” as defined in the Guarantee and Collateral Agreement.

Securities Act ”: the Securities Act of 1933, as amended from time to time.

Security Documents ”: the collective reference to each Mortgage related to any Mortgaged Fee Property, the Guarantee and Collateral Agreement and all other similar security documents hereafter delivered to the Collateral Agent granting or perfecting a Lien on any asset or assets of any Person to secure the obligations and liabilities of the Loan Parties hereunder and/or under any of the other Loan Documents or to secure any guarantee of any such obligations and liabilities, including any security documents executed and delivered or caused to be delivered to the Collateral Agent pursuant to Subsection 7.9(a) , 7.9(b) or 7.9(c) , in each case, as amended, supplemented, waived or otherwise modified from time to time.

Senior ABL Facility ”: the collective reference to the Senior ABL Facility Agreement, any ABL Facility Documents, any notes and letters of credit issued pursuant thereto and any guarantee and collateral agreement, patent and trademark security agreement, mortgages, letter of credit applications and other guarantees, pledge agreements, security agreements and collateral documents, and other instruments and documents, executed and delivered pursuant to or in connection with any of the foregoing, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time, or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original agent and lenders or other agents and lenders or otherwise, and whether provided under the original Senior ABL Facility Agreement or one or more other credit agreements, indentures (including the Senior Notes Indenture) or financing agreements or otherwise, unless such agreement, instrument or document expressly provides that it is not intended to be and is not a Senior ABL Facility). Without limiting the generality of the foregoing, the term “ Senior ABL Facility ” shall include any agreement ( i ) changing the maturity of any Indebtedness Incurred thereunder or contemplated thereby, ( ii ) adding Subsidiaries of the Borrower as additional borrowers or guarantors thereunder, ( iii ) increasing the amount of Indebtedness Incurred thereunder or available to be borrowed thereunder or ( iv ) otherwise altering the terms and conditions thereof.

Senior ABL Facility Agreement ”: the Amended and Restated Credit Agreement, dated as of the Restatement Effective Date, among the Borrower, the other borrowers party thereto from time to time, the lenders and other financial institutions party thereto from time to time and Deutsche Bank AG New York Branch, as administrative agent and co-collateral agent thereunder, as such agreement may be amended, supplemented, waived or otherwise modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or

 

-60-


extended from time to time (whether in whole or in part, whether with the original administrative agent and lenders or other agents and lenders or otherwise, and whether provided under the original Senior ABL Facility Agreement or one or more other credit agreements or otherwise, unless such agreement, instrument or other document expressly provides that it is not intended to be and is not a Senior ABL Facility Agreement). Any reference to the Senior ABL Facility Agreement hereunder shall be deemed a reference to each Senior ABL Facility Agreement then in existence.

Senior Notes ”: 8.125% Senior Notes due 2019 of the Borrower issued on the Closing Date, as the same may be exchanged for substantially similar senior notes that have been registered under the Securities Act, and as the same or such substantially similar notes may be amended, supplemented, waived or otherwise modified from time to time.

Senior Notes Debt Documents ”: the Senior Notes Indenture and all other instruments, agreements and other documents evidencing or governing the Senior Notes or providing for any guarantee, obligation, security or other right in respect thereof.

Senior Notes Indenture ”: the Indenture dated as of the Closing Date, under which the Senior Notes are issued, as the same may be amended, supplemented, waived or otherwise modified from time to time.

Senior Notes Offering ”: the issuance by the Borrower of senior unsecured notes pursuant to Rule 144A and Regulation S under the Securities Act, under the Senior Notes Indenture on the Closing Date.

Set ”: the collective reference to Eurodollar Loans of a single Tranche, the then current Interest Periods with respect to all of which begin on the same date and end on the same later date (whether or not such Eurodollar Loans shall originally have been made on the same day).

Settlement Service ”: as defined in Subsection 11.6(b) .

Seventh Amendment ”: the Seventh Amendment to Credit Agreement, dated as of the Restatement Effective Date, among the Borrower, the Lenders party thereto, the Administrative Agent and the other parties thereto.

Seventh Amendment Effective Date ”: December 1, 2016.

Single Employer Plan ”: any Plan which is covered by Title IV or Section 302 of ERISA or Section 412 of the Code, but which is not a Multiemployer Plan.

Solicited Discount Proration ”: as defined in Subsection 4.4(h)(iv)(3) .

Solicited Discounted Prepayment Amount ”: as defined in Subsection 4.4(h)(iv)(1) .

 

-61-


Solicited Discounted Prepayment Notice ”: an irrevocable written notice of the Borrower Solicitation of Discounted Prepayment Offers made pursuant to Subsection 4.4(h)(iv) substantially in the form of Exhibit Q .

Solicited Discounted Prepayment Offer ”: the irrevocable written offer by each Lender, substantially in the form of Exhibit R , submitted following the Administrative Agent’s receipt of a Solicited Discounted Prepayment Notice.

Solicited Discounted Prepayment Response Date ”: as defined in Subsection 4.4(h)(iv)(1) .

Solvent ” and “ Solvency ”: with respect to the Borrower and its Restricted Subsidiaries on the Restatement Effective Date on a consolidated basis means ( i ) the Fair Value and Present Fair Salable Value of the assets of the Borrower and its Restricted Subsidiaries taken as a whole exceed their Stated Liabilities and Identified Contingent Liabilities; ( ii ) the Borrower and its Restricted Subsidiaries taken as a whole do not have Unreasonably Small Capital; and ( iii ) the Borrower and its Restricted Subsidiaries taken as a whole will be able to pay their Stated Liabilities and Identified Contingent Liabilities as they mature (all capitalized terms used in this definition other than “Borrower” and “Restricted Subsidiary” shall have the meaning assigned to such terms in the form of solvency certificate attached hereto as Exhibit H ).

Special Purpose Entity ”: ( x ) any Special Purpose Subsidiary or ( y ) any other Person that is engaged in the business of acquiring, selling, collecting, financing or refinancing Receivables, accounts (as defined in the Uniform Commercial Code as in effect in any jurisdiction from time to time), other accounts and/or other receivables, and/or related assets.

Special Purpose Financing ”: any financing or refinancing of assets consisting of or including Receivables of the Borrower or any Restricted Subsidiary that have been transferred to a Special Purpose Entity or made subject to a Lien in a Financing Disposition.

Special Purpose Financing Fees ”: distributions or payments made directly or by means of discounts with respect to any participation interest issued or sold in connection with, and other fees paid to a Person that is not a Restricted Subsidiary in connection with, any Special Purpose Financing.

Special Purpose Financing Undertakings ”: representations, warranties, covenants, indemnities, guarantees of performance and (subject to clause (y) of the proviso below) other agreements and undertakings entered into or provided by the Borrower or any of its Restricted Subsidiaries that the Borrower determines in good faith (which determination shall be conclusive) are customary or otherwise necessary or advisable in connection with a Special Purpose Financing or a Financing Disposition; provided that ( x ) it is understood that Special Purpose Financing Undertakings may consist of or include ( i ) reimbursement and other obligations in respect of notes, letters of credit, surety bonds and similar instruments provided for credit enhancement purposes or ( ii ) Hedging Obligations, or other obligations relating to Interest Rate Agreements, Currency Agreements or Commodities Agreements entered into by the Borrower or any Restricted Subsidiary, in respect of any Special Purpose Financing or Financing Disposition, and ( y ) subject to the preceding clause (x), any such other agreements and

 

-62-


undertakings shall not include any Guarantee of Indebtedness of a Special Purpose Subsidiary by the Borrower or a Restricted Subsidiary that is not a Special Purpose Subsidiary and ( iii ) any Guarantee in respect of customary recourse obligations (as determined in good faith by the Borrower, which determination shall be conclusive) in connection with any Special Purpose Financing or Financing Disposition, including in respect of Liabilities in the event of any involuntary case commenced with the collusion of any Special Purpose Subsidiary or any Affiliate thereof, or any voluntary case commenced by any Special Purpose Subsidiary, under any applicable bankruptcy law, and ( y ) subject to the preceding clause (x), any such other agreements and undertakings shall not include any Guarantee of Indebtedness of a Special Purpose Subsidiary by the Borrower or a Restricted Subsidiary that is not a Special Purpose Subsidiary.

Special Purpose Subsidiary ”: any Subsidiary of the Borrower that ( a ) is engaged solely in ( x ) the business of acquiring, selling, collecting, financing or refinancing Receivables, accounts (as defined in the Uniform Commercial Code as in effect in any jurisdiction from time to time) and other accounts and receivables (including any thereof constituting or evidenced by chattel paper, instruments or general intangibles), all proceeds thereof and all rights (contractual and other), collateral and other assets relating thereto, and ( y ) any business or activities incidental or related to such business, and ( b ) is designated as a “Special Purpose Subsidiary” by the Borrower.

Specified Discount ”: as defined in Subsection 4.4(h)(ii)(1) .

Specified Discount Prepayment Amount ”: as defined in Subsection 4.4(h)(ii)(1) .

Specified Discount Prepayment Notice ”: an irrevocable written notice of the Borrower Offer of Specified Discount Prepayment made pursuant to Subsection 4.4(h)(ii) substantially in the form of Exhibit S .

Specified Discount Prepayment Response ”: the written response by each Lender, substantially in the form of Exhibit T , to a Specified Discount Prepayment Notice.

Specified Discount Prepayment Response Date ”: as defined in Subsection 4.4(h)(ii)(1) .

Specified Discount Proration ”: as defined in Subsection 4.4(h)(ii)(3) .

Specified Existing Term Tranche ”: as defined in Subsection 2.8(a).

Specified Refinancing Amendment ”: an amendment to this Agreement effecting the incurrence of Specified Refinancing Facilities in accordance with Subsection 2.9 .

Specified Refinancing Facilities ”: as defined in Subsection 2.9(a) .

Specified Refinancing Indebtedness ”: Indebtedness incurred by the Borrower pursuant to and in accordance with Subsection 2.9 .

Specified Refinancing Lenders ”: as defined in Subsection 2.9(b) .

 

-63-


Specified Refinancing Term Loans ”: as defined in Subsection 2.11(a) .

Specified Refinancing Tranche ”: Specified Refinancing Facilities with the same terms and conditions made on the same day and any Supplemental Term Loan and Loans in respect thereof, as applicable, added to such Tranche pursuant to Subsection 2.9 .

Stated Maturity ”: with respect to any Indebtedness, the date specified in such Indebtedness as the fixed date on which the payment of principal of such Indebtedness is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase or repayment of such Indebtedness at the option of the holder thereof upon the happening of any contingency).

Statutory Reserves ”: for any day as applied to a Eurodollar Loan, the average maximum rate at which reserves (including any marginal, supplemental or emergency reserves) are required to be maintained during such Interest Period under Regulation D by member banks of the United States Federal Reserve System in New York City with deposits exceeding one billion Dollars against “ Eurocurrency liabilities ” (as such term is used in Regulation D). Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities and to be subject to such reserve requirements without benefit of or credit for proration, exceptions or offsets which may be available from time to time to any Lender under Regulation D.

Strategic Investors ”: physicians, hospitals, health systems, other healthcare providers, other healthcare companies and other similar strategic joint venture partners which joint venture partners are actively involved in the day-to-day operations of providing surgical care and surgery-related services, or, in the case of physicians, that have retired therefrom, individuals who are former owners or employees of surgical care facilities purchased by the Borrower, any of its Restricted Subsidiaries, and consulting firms that receive common stock solely as consideration for consulting services performed.

Submitted Amount ”: as defined in Subsection 4.4(h)(iii)(1) .

Submitted Discount ”: as defined in Subsection 4.4(h)(iii)(1) .

Subordinated Obligations ”: any Indebtedness of the Borrower (whether outstanding on the Restatement Effective Date or thereafter Incurred) that is expressly subordinated in right of payment to the Term Loan Facility Obligations pursuant to a written agreement.

Subsection 2.8 Additional Amendment ”: as defined in Subsection 2.8(c) .

Subsidiary ”: as to any Person, a corporation, partnership, limited liability company or other entity ( a ) of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the Board of Directors or other managers of such corporation, partnership, limited liability company or other entity are at the time owned by such Person, or ( b ) the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person and, in the case of this clause (b), which is treated as a consolidated subsidiary for accounting purposes. The term

 

-64-


Subsidiary ” shall not include any Related Corporation, provided that, for the avoidance of doubt, nothing in this sentence shall limit or otherwise affect the treatment of Related Corporations (including with respect to consolidation) for financial reporting purposes under and in accordance with GAAP. Unless otherwise qualified, all references to a “ Subsidiary ” or to “ Subsidiaries ” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

Subsidiary Guarantor ”: each Domestic Subsidiary that is a Wholly Owned Subsidiary (other than any Excluded Subsidiary) of the Borrower which executes and delivers a Subsidiary Guaranty pursuant to Subsection 7.9 or otherwise, in each case, unless and until such time as the respective Subsidiary Guarantor ( a ) ceases to constitute a Domestic Subsidiary of the Borrower in accordance with the terms and provisions hereof, ( b ) is designated an Unrestricted Subsidiary pursuant to the terms of this Agreement or ( c ) is released from all of its obligations under the Subsidiary Guaranty in accordance with terms and provisions thereof.

Subsidiary Guaranty ”: the guaranty of the Term Loan Facility Obligations of the Borrower under the Loan Documents provided pursuant to the Guarantee and Collateral Agreement.

Successor Borrower ”: as defined in Subsection 8.7(a)(i) .

Supplemental Term Loan Commitments ”: as defined in Subsection 2.6(a) .

Taxes ”: any and all present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority.

Temporary Cash Investments ”: any of the following: ( i ) any investment in ( x ) direct obligations of the United States of America, a member state of the European Union or any country in whose currency funds are being held pending their application in the making of an investment or capital expenditure by the Borrower or a Restricted Subsidiary in that country or with such funds, or any agency or instrumentality of any thereof, or obligations Guaranteed by the United States of America or a member state of the European Union or any country in whose currency funds are being held pending their application in the making of an investment or capital expenditure by the Borrower or a Restricted Subsidiary in that country or with such funds, or any agency or instrumentality of any of the foregoing, or obligations guaranteed by any of the foregoing or ( y ) direct obligations of any foreign country recognized by the United States of America rated at least “A” by S&P or “A-1” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), ( ii ) overnight bank deposits, and investments in time deposit accounts, certificates of deposit, bankers’ acceptances and money market deposits (or, with respect to foreign banks, similar instruments) maturing not more than one year after the date of acquisition thereof issued by ( x ) any bank or other institutional lender under this Agreement or any Senior ABL Facility or any affiliate thereof or ( y ) a bank or trust company that is organized under the laws of the United States of America, any state thereof or any foreign country recognized by the United States of America having capital and surplus aggregating in excess of $250.0 million (or the foreign currency equivalent thereof) and whose long term debt is rated at least “A” by S&P or “A-1” by Moody’s (or, in either case, the

 

-65-


equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization) at the time such Investment is made, ( iii ) repurchase obligations with a term of not more than 30 days for underlying securities or instruments of the types described in clause (i) or (ii) above entered into with a bank meeting the qualifications described in clause (ii) above, ( iv ) Investments in commercial paper, maturing not more than 270 days after the date of acquisition, issued by a Person (other than that of the Borrower or any of its Subsidiaries), with a rating at the time as of which any Investment therein is made of “P-2” (or higher) according to Moody’s or “A-2” (or higher) according to S&P (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), ( v ) Investments in securities maturing not more than one year after the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P or “A” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), ( vi ) Preferred Stock (other than of the Borrower or any of its Subsidiaries) having a rating of “A” or higher by S&P or “A2” or higher by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), ( vii ) investment funds investing 95.0% of their assets in securities of the type described in clauses (i) through (vi) above (which funds may also hold reasonable amounts of cash pending investment and/or distribution), ( viii ) any money market deposit accounts issued or offered by a domestic commercial bank or a commercial bank organized and located in a country recognized by the United States of America, in each case, having capital and surplus in excess of $250.0 million (or the foreign currency equivalent thereof), or investments in money market funds subject to the risk limiting conditions of Rule 2a-7 (or any successor rule) of the SEC under the Investment Company Act of 1940, as amended and ( ix ) similar investments approved by the Board of Directors in the ordinary course of business.

Term Loan Facility Obligations ”: obligations of the Borrower and the other Loan Parties from time to time arising under or in respect of the due and punctual payment of ( i ) the principal of and premium, if any, and interest (including interest accruing during (or would accrue but for) the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Term Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and ( ii ) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Borrower and the other Loan Parties under this Agreement and the other Loan Documents.

Term Loan Priority Collateral ”: as defined in the ABL/Term Loan Intercreditor Agreement, whether or not the same remains in full force and effect.

Term Loan Refinancing Debt ”: ( i ) any Additional Obligations, the proceeds of which are used to ( a ) repay or prepay all or a portion of the Term Loans on a dollar-for-dollar basis and ( b ) pay the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses incurred in connection with such refinancing and ( ii ) any Refinancing Indebtedness in respect of the Indebtedness described in preceding clause (i).

 

-66-


Term Loans ”: the Initial Term Loans, Incremental Term Loans, Extended Term Loans and/or Specified Refinancing Term Loans, as the context shall require.

Total Liquidity ”: at any time, the sum of ( a ) the aggregate amount available (without duplication) to be borrowed by any Loan Party under the Senior ABL Facility plus ( b ) the Unrestricted Cash of the Borrower and its Restricted Subsidiaries (including any Person so acquired).

Trade Payables ”: with respect to any Person, any accounts payable or any indebtedness or monetary obligation to trade creditors created, assumed or guaranteed by such Person arising in the ordinary course of business in connection with the acquisition of goods or services.

Tranche ”: with respect to Term Loans or commitments, refers to whether such Term Loans or commitments are ( 1 ) Initial Term Loans or Initial Term Loan Commitments, ( 2 ) Incremental Loans or Incremental Commitments with the same terms and conditions made on the same day, ( 3 ) Extended Term Loans (of the same Extension Series) or ( 4 ) Specified Refinancing Term Loans or Specified Refinancing Term Loan Commitments with the same terms and conditions made on the same day and any Supplemental Term Loans added to such Tranche pursuant to Subsection 2.6 .

Tranche C Term Loan ”: the Tranche C Term Loans made by the Lenders to the Borrower pursuant to the Seventh Amendment.

Transaction Documents ”: collectively, ( i ) the 2016 Merger Agreement, ( ii ) the indenture, dated as of December 1, 2016, among the Borrower and Wilmington Trust, National Association, ( iii ) the purchase agreement, dated as of November 16, 2016, among the Borrower and the initial purchasers party thereto, ( iv ) the Seventh Amendment, ( v ) the third amendment to the Senior ABL Facility Agreement and ( vi ) customary director indemnification agreements.

Transactions ”: means, collectively, any or all of the following: ( i ) the entry into the indenture, dated as of December 1, 2016, among the Borrower and Wilmington Trust, National Association, entry into the purchase agreement, dated as of November 16, 2016, among the Borrower and the initial purchasers party thereto and the issuance of the senior unsecured notes on December 1, 2016, ( ii ) the entry into the Seventh Amendment and the Incurrence of the Initial Term Loans, ( iii ) the entry into the third amendment to the Senior ABL Facility, ( iv ) the consummation of the 2016 Mergers ( vi ) the repayment, refinancing, defeasance and/or redemption of certain Indebtedness of each of Envision Healthcare Holdings, Inc. and its Subsidiaries and AmSurg in connection with the foregoing and ( vii ) all other transactions relating to any of the foregoing (including payment of fees and expenses related to any of the foregoing).

Transferee ”: any Participant or Assignee.

 

-67-


TRICARE ”: collectively, 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, which program was formerly known as the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), and all laws, rules, regulations, 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.

Type ”: the type of Term Loan determined based on the interest option applicable thereto, with there being two Types of Term Loans hereunder, namely ABR Loans and Eurodollar Loans.

U.S. Tax Compliance Certificate ”: as defined in Subsection 4.11(b)(ii)(2) .

UCC ” the Uniform Commercial Code as in effect in the State of New York from time to time.

Underfunding ”: the excess of the present value of all accrued benefits under a Plan (based on those assumptions used to fund such Plan), determined as of the most recent annual valuation date, over the value of the assets of such Plan allocable to such accrued benefits.

United States Person ”: any United States person within the meaning of Section 7701(a)(30) of the Code.

Unrestricted Cash ”: as at any date of determination, ( a ) the aggregate amount of cash, Cash Equivalents and Temporary Cash Investments included in the cash accounts that would be listed on the consolidated balance sheet of the Borrower prepared in accordance with GAAP as at such date to the extent such cash is not classified as “restricted” for financial statement purposes (unless so classified solely because of any provision under the Loan Documents or any other agreement or instrument governing other Indebtedness that is subject to the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement governing the application thereof or because they are subject to a Lien securing the First Lien Obligations or other Indebtedness that is subject to the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement), plus ( b ) the proceeds from any Incurrence of Incremental Term Loans that are (in the good faith judgment of the Borrower) intended to be used for working capital purposes at the date of determination, plus ( c ) the Net Cash Proceeds from any Excluded Contribution that are intended (in the good faith judgment of the Borrower) to be used for working capital purposes at the date of determination.

Unrestricted Subsidiary ”: ( i ) any Subsidiary of the Borrower that at the time of determination is an Unrestricted Subsidiary, as designated by the Board of Directors in the manner provided below, and ( ii ) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors may designate any Subsidiary of the Borrower (including any newly acquired or newly formed Subsidiary of the Borrower) to be an Unrestricted Subsidiary unless ( x ) such Subsidiary

 

-68-


or any of its Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any Lien on any property of, the Borrower or any other Restricted Subsidiary of the Borrower that is not a Subsidiary of the Subsidiary to be so designated or ( y ) such Subsidiary or any of its Subsidiaries is a “Restricted Subsidiary” for the purpose of the ABL Facility Documents or the Senior Notes Debt Documents; provided , that ( A ) such designation was made at or prior to the Restatement Effective Date, or ( B ) the Subsidiary to be so designated has total consolidated assets of $1,000 or less or ( C ) if such Subsidiary has consolidated assets greater than $1,000, then such designation would be permitted under Subsection 8.2 and ( D ) immediately before and after such designation, no Event of Default under Subsection 9.1(a) or (f)  shall have occurred and be continuing. The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided , that immediately after giving effect to such designation ( w ) the Borrower could Incur at least $1.00 of additional Indebtedness under Subsection 8.1(a) or ( x ) the Consolidated Coverage Ratio would be greater than it was immediately prior to giving effect to such designation or ( y ) such Subsidiary shall be a Special Purpose Subsidiary with no Indebtedness outstanding other than Indebtedness that can be Incurred (and upon such designation shall be deemed to be Incurred and outstanding) Subsection 8.1(b) and ( z ) immediately after such designation, no Event of Default under Subsection 9.1(a) or (f)  shall have occurred and be continuing. Any such designation by the Board of Directors shall be evidenced to the Administrative Agent by promptly filing with the Administrative Agent a copy of the resolution of the Borrower’s Board of Directors giving effect to such designation and a certificate of a Responsible Officer of the Borrower certifying that such designation complied with the foregoing provisions.

Vehicles ”: as defined in the Guarantee and Collateral Agreement.

Voting Stock ”: as to any entity, all classes of Capital Stock of such entity then outstanding and normally entitled to vote in the election of directors or all interests in such entity with the ability to control the management or actions of such entity.

Wholly Owned Subsidiary ”: as to any Person, any Subsidiary of such Person of which such Person owns, directly or indirectly through one or more Wholly Owned Subsidiaries, all of the Capital Stock of such Subsidiary other than directors qualifying shares or shares held by nominees.

Write-Down and Conversion Powers ”: with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

1.2 Other Definitional Provisions . Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in any Notes, any other Loan Document or any certificate or other document made or delivered pursuant hereto.

(a) As used herein and in any Notes and any other Loan Document, and any certificate or other document made or delivered pursuant hereto or thereto, accounting terms relating to the Borrower and its Restricted Subsidiaries not defined in Subsection 1.1 and accounting terms partly defined in Subsection 1.1 , to the extent not defined, shall have the respective meanings given to them under GAAP.

 

-69-


(b) The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Subsection, Schedule and Exhibit references are to this Agreement unless otherwise specified. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.

(c) For purposes of determining any financial ratio or making any financial calculation for any fiscal quarter (or portion thereof) ending prior to the Restatement Effective Date, the components of such financial ratio or financial calculation shall be determined on a pro forma basis to give effect to the Transactions as if they had occurred at the beginning of such four quarter period; and each Person that is a Restricted Subsidiary upon giving effect to the Transactions shall be deemed to be a Restricted Subsidiary for purposes of the components of such financial ratio or financial calculation as of the beginning of such four quarter period.

(d) For purposes of this Agreement for periods ending on or prior to the Restatement Effective Date, references to the consolidated financial statements of the Borrower shall be to (i) the consolidated financial statements of the consolidated financial statements of the Borrower with pro forma effect being given to the Transactions or (ii) the consolidated financial statements of any Parent Entity whose financial statements satisfy the Borrower’s reporting obligations under Subsection 7.1 , as the context may require.

(e) Any financial ratios required to be satisfied in order for a specific action to be permitted under this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

(f) Any references in this Agreement to “cash and/or Cash Equivalents”, “cash, Cash Equivalents and/or Temporary Cash Investments” or any similar combination of the foregoing shall be construed as not double counting cash or any other applicable amount which would otherwise be duplicated therein.

(g) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

(h) In connection with any action being taken in connection with a Limited Condition Acquisition, for purposes of determining compliance with any provision of this Agreement which requires that no Default or Event of Default, as applicable, has occurred, is continuing or would result from any such action, as applicable, such condition shall, at the option of the Borrower, be deemed satisfied, so long as no Default or Event of Default, as applicable, exists on the date the definitive agreements for such Limited Condition Acquisition are entered into. For the avoidance of doubt, if the Borrower has exercised its option under the first sentence of this clause (h), and any Default or Event of Default occurs following the date the definitive agreements for the applicable Limited Condition Acquisition were entered into and

 

-70-


prior to the consummation of such Limited Condition Acquisition, any such Default or Event of Default shall be deemed to not have occurred or be continuing for purposes of determining whether any action being taken in connection with such Limited Condition Acquisition is permitted hereunder.

(i) In connection with any action being taken in connection with a Limited Condition Acquisition, for purposes of:

(a) determining compliance with any provision of this Agreement which requires the calculation of the Consolidated Coverage Ratio, the Consolidated First-Lien Net Leverage Ratio or the Consolidated Net Leverage Ratio; or

(b) testing baskets set forth in this Agreement (including baskets measured as a percentage of Consolidated Total Assets);

in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any Limited Condition Acquisition, an “ LCA Election ”), the date of determination of whether any such action is permitted hereunder, shall be deemed to be the date the definitive agreements for such Limited Condition Acquisition are entered into (the “ LCA Test Date ”), and if, after giving pro forma effect to the Limited Condition Acquisition and the other transactions to be entered into in connection therewith (including any Incurrence of Indebtedness and the use of proceeds thereof) as if they had occurred at the beginning of the most recent four consecutive fiscal quarters ending prior to the LCA Test Date for which consolidated financial statements of the Borrower (or, as applicable, any Parent Entity) are available, the Borrower could have taken such action on the relevant LCA Test Date in compliance with such ratio or basket, such ratio or basket shall be deemed to have been complied with. For the avoidance of doubt, if the Borrower has made an LCA Election and any of the ratios or baskets for which compliance was determined or tested as of the LCA Test Date in connection with any action taken with respect to such Limited Condition Acquisition are exceeded as a result of fluctuations in any such ratio or basket, including due to fluctuations in exchange rates or in Consolidated EBITDA or Consolidated Total Assets of the Borrower or the Person subject to such Limited Condition Acquisition, at or prior to the consummation of the relevant transaction or action, such baskets or ratios will not be deemed to have been exceeded as a result of such fluctuations. If the Borrower has made an LCA Election for any Limited Condition Acquisition, then in connection with any subsequent calculation of any ratio or basket availability with respect to the Incurrence of Indebtedness or Liens, or the making of Restricted Payments, Asset Dispositions, mergers, the conveyance, lease or other transfer of all or substantially all of the assets of the Borrower or the designation of an Unrestricted Subsidiary on or following the relevant LCA Test Date and prior to the earlier of the date on which such Limited Condition Acquisition is consummated or the definitive agreement for such Limited Condition Acquisition is terminated or expires without consummation of such Limited Condition Acquisition, any such ratio or basket shall be calculated on a pro forma basis assuming such Limited Condition Acquisition and other transactions in connection therewith (including any Incurrence of Indebtedness and the use of proceeds thereof) have been consummated.

(j) For purposes of this Agreement references to the consolidated financial statements of the Borrower shall be deemed to include the consolidated financial statements of any Parent Entity whose financial statements satisfy the Borrower’s reporting obligations under Subsection 7.1 , as the context may require.

 

-71-


1.3 Effect of Restatement . This Agreement shall amend and restate the Original Credit Agreement in its entirety, with the parties to the Seventh Amendment hereby agreeing that there is no novation of the Original Credit Agreement and from and after the effectiveness of this Agreement, the rights and obligations of the parties under the Original Credit Agreement shall be subsumed and governed by this Agreement. From and after the effectiveness of this Agreement, the Term Loan Facility Obligations under the Original Credit Agreement shall continue as Term Loan Facility Obligations under this Agreement and the Loan Documents until otherwise paid in accordance with the terms hereof. Without limiting the generality of the foregoing, the Security Documents and the grant of Liens on all of the Collateral described therein do and shall continue to secure the payment of all Obligations (as defined in the Guarantee and Collateral Agreement) of the Loan Parties under the Loan Documents, in each case, as amended by this Agreement.

SECTION 2

Amount and Terms of Commitments

2.1 Term Loans .

(i) Subject to the terms and conditions of the Seventh Amendment, each Lender with an Initial Term Loan Commitment made, in Dollars, in a single draw on the Seventh Amendment Effective Date, a term loan to the Borrower in an aggregate principal amount equal to its Initial Term Loan Commitment.

(ii) Subject to the terms and conditions of the Seventh Amendment, on the Seventh Amendment Effective Date, the Exchanged Term Loan of each Exchanging Lender was exchanged for an Initial Term Loan of like principal amount. For the avoidance of doubt, such Initial Term Loans held by an Exchanging Lender shall constitute “Rollover Indebtedness” for all purposes under this Agreement.

(iii) Such Initial Term Loans shall, at the option of the Borrower, be incurred and maintained as, and/or converted into, ABR Loans or Eurodollar Loans.

(iv) Such Initial Term Loans shall remain outstanding under this Agreement in accordance with the terms hereof.

Once repaid, Initial Term Loans incurred hereunder may not be reborrowed.

2.2 Notes . (a) The Borrower agrees that, upon the request to the Administrative Agent by any Lender made on or prior to the Restatement Effective Date (in the case of requests relating to the Initial Term Loans) or in connection with any assignment pursuant to Subsection 11.6(b) , in order to evidence such Lender’s Loan, the Borrower will execute and deliver to such Lender a promissory note substantially in the form of Exhibit A

 

-72-


(each, as amended, supplemented, replaced or otherwise modified from time to time, a “ Note ” and, collectively, the “ Notes ”), in each case with appropriate insertions therein as to payee, date and principal amount, payable to such Lender and in a principal amount equal to the unpaid principal amount of the applicable Loans made (or acquired by assignment pursuant to Subsection 11.6(b) ) by such Lender to the Borrower. Each Note in respect of an Initial Term Loan shall be dated the Restatement Effective Date. Each Note shall be payable as provided in Subsections 2.2(b ) and provide for the payment of interest in accordance with Subsection 4.1.

(b) Initial Term Loans of all the Lenders shall be payable in consecutive quarterly installments beginning on March 31, 2017 up to and including the Maturity Date in respect of the Initial Term Loans (subject to reduction as provided in Subsection 4.4 ), on the dates and in the principal amounts, subject to adjustment as set forth below, equal to the respective amounts set forth below (together with all accrued interest thereon) opposite the applicable installment dates (or, if less, the aggregate amount of such Initial Term Loans then outstanding):

 

Date

  

Amount

Each March 31, June 30, September 30 and December 31 ending prior to the Maturity Date in respect of the Initial Term Loans    0.25% of the aggregate initial principal amount of the Initial Term Loans on the Restatement Effective Date
Maturity Date in respect of the Initial Term Loans    all unpaid aggregate principal amounts of any outstanding Initial Term Loans

2.3 [Reserved] .

2.4 [Reserved] .

2.5 Repayment of Loans . (a) The Borrower hereby unconditionally promises to pay to the Administrative Agent (in the currency in which such Term Loan is denominated) for the account of each applicable Lender the then unpaid principal amount of each Initial Term Loan of such Lender made to the Borrower, on the Maturity Date in respect of the Initial Term Loans (or such earlier date on which the Initial Term Loans become due and payable pursuant to Section 9 ). The Borrower hereby further agrees to pay interest on the unpaid principal amount of such Initial Term Loans from time to time outstanding from the date hereof until payment in full thereof at the rates per annum, and on the dates, set forth in Subsection 4.1 .

(b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the Borrower to such Lender resulting from each Loan of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement.

(c) The Administrative Agent shall maintain the Register pursuant to Subsection 11.6(b) , and a subaccount therein for each Lender, in which shall be recorded ( i ) the amount of each Loan made hereunder, the Type thereof, the Tranche thereof and each Interest Period applicable thereto, ( ii ) the amount of any principal or interest due and payable or to

 

-73-


become due and payable from the Borrower to each applicable Lender hereunder and ( iii ) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each applicable Lender’s share thereof.

(d) The entries made in the Register and the accounts of each Lender maintained pursuant to Subsection 2.5(c) shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided , however , that the failure of any Lender or the Administrative Agent to maintain the Register or any such account, or any error therein, shall not in any manner affect the obligation of the Borrower to repay (with applicable interest) the Loans made to the Borrower by such Lender in accordance with the terms of this Agreement.

2.6 Incremental Facilities . (a) So long as no Event of Default under Subsection 9.1 (a ) or ( f ) exists or would arise therefrom, the Borrower shall have the right, at any time and from time to time after the Restatement Effective Date, ( i ) to request new term loan commitments under one or more new term loan credit facilities to be included in this Agreement (the “ Incremental Term Loan Commitments ”), ( ii ) to increase the Existing Term Loans by requesting new term loan commitments to be added to an existing Tranche of Term Loans (the “ Supplemental Term Loan Commitments ”), ( iii ) to request new commitments under one or more new revolving facilities to be included in this Agreement (the “ Incremental Revolving Commitments ”) and ( iv ) to request new letter of credit facility commitments under one or more new letter of credit facilities to be included in this Agreement (together with the Incremental Term Loan Commitments, Supplemental Term Loan Commitments and the Incremental Revolving Commitments, the “ Incremental Commitments ”), provided that, ( i ) the aggregate amount of Incremental Commitments permitted pursuant to this Subsection 2.6 shall not exceed, at the time the respective Incremental Commitment becomes effective (and after giving effect to the Incurrence of Indebtedness in connection therewith), the Maximum Incremental Facilities Amount, ( ii ) if any portion of an Incremental Commitment is to be incurred in reliance on clause (ii) of the definition of “Maximum Incremental Facilities Amount”, the Borrower shall have delivered a certificate to the Administrative Agent, certifying compliance with the financial test set forth in such clause (together with calculations demonstrating compliance with such ratio) and ( iii ) if any portion of an Incremental Commitment is to be incurred in reliance on clause (i) of the definition of “Maximum Incremental Facilities Amount”, the Borrower shall have delivered a certificate to the Administrative Agent, certifying the amount of the available basket in such clause to be used for the incurrence of such Incremental Commitment. Any loans made in respect of any such Incremental Commitment (other than Supplemental Term Loan Commitments) shall be made by creating a new Tranche. Each Incremental Commitment made available pursuant to this Subsection 2.6 shall be in a minimum aggregate amount of at least $15,000,000 and in integral multiples of $5,000,000 in excess thereof.

(b) Each request from the Borrower pursuant to this Subsection 2.6 shall set forth the requested amount and proposed terms of the relevant Incremental Commitments. The Incremental Commitments (or any portion thereof) may be made by any existing Lender or by any other bank or financial institution (any such bank or other financial institution, an “ Additional Lender ”), provided , that if such Additional Lender is not already a Lender hereunder or an Affiliate of a Lender hereunder, to the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) and the consent of any swingline lender or issuing lender, as the case may be, that may be required pursuant to Subsection 11.6 .

 

-74-


(c) Supplemental Term Loan Commitments shall become commitments under this Agreement pursuant to a supplement specifying the Term Loan Tranche to be increased, executed by the Borrower and each increasing Lender substantially in the form attached hereto as Exhibit I-1 (the “ Increase Supplement ”) or by each Additional Lender substantially in the form attached hereto as Exhibit I-2 (the “ Lender Joinder Agreement ”), as the case may be, which shall be delivered to the Administrative Agent for recording in the Register. An Increase Supplement or Lender Joinder Agreement may, without the consent of any other Lender, effect such amendments (including to Subsection 2.2(b) ) to the Loan Documents as may be necessary or appropriate, in the opinion of the Borrower and the Administrative Agent, to effect the provisions of this Subsection 2.5 . Upon effectiveness of the Lender Joinder Agreement each Additional Lender shall be a Lender for all intents and purposes of this Agreement and the term loan made pursuant to such Supplemental Term Loan Commitment shall be a Term Loan.

(d) Incremental Commitments (other than Supplemental Term Loan Commitments) shall become commitments under this Agreement pursuant to an amendment (an “ Incremental Commitment Amendment ”) to this Agreement and, as appropriate, the other Loan Documents, executed by the Borrower and each Additional Lender. An Incremental Commitment Amendment may, without the consent of any other Lender, effect such amendments to any Loan Documents as may be necessary or appropriate, in the opinion of the Borrower and the Administrative Agent, to effect the provisions of this Subsection 2.6 , provided , however , that ( i ) ( A ) the Incremental Commitments will not be guaranteed by any Subsidiary of the Borrower other than the Subsidiary Guarantors, and will be secured on a pari passu or (at the Borrower’s option) junior basis by the same Collateral securing the Initial Term Loans (so long as any such Incremental Commitments (and related Obligations) are subject to the Junior Lien Intercreditor Agreement or an Other Intercreditor Agreement or will be unsecured), ( B ) the Incremental Commitments and any incremental loans drawn thereunder (the “ Incremental Loans ”) shall rank pari passu in right of payment with or (at the Borrower’s option) junior to the Initial Term Loans and ( C ) no Incremental Commitment Amendment may provide for ( I ) any Incremental Commitment or any Incremental Loans to be secured by any Collateral or other assets of any Loan Party that do not also secure the Term Loans and ( II ) so long as any Initial Term Loans are outstanding, other than in the case of an Incremental Revolving Commitment, any mandatory prepayment provisions that do not also apply to the Term Loans (other than Incremental Term Loans secured on a junior basis by the Collateral or ranking junior in right of payment) on a pro rata basis (or otherwise provide for more favorable prepayment treatment for the Initial Term Loans than such Incremental Term Loans as contemplated by the proviso appearing in Subsection 4.4(c) ), provided that any Incremental Term Loans constituting Initial Term Loan Refinancing Debt may provide for more favorable amortization payments than the Initial Term Loans; ( ii ) no Lender will be required to provide any such Incremental Commitment unless it so agrees; (iii) the maturity date and the weighted average life to maturity of any such Incremental Term Loan Commitments shall be no earlier than or shorter than, as the case may be, the Maturity Date or the remaining weighted average life to maturity of the Initial Term Loans, as applicable (other than customary bridge financings, which, subject to customary conditions, would either be automatically converted into or required to be exchanged for permanent financing which does not provide for an earlier maturity date or a shorter weighted

 

-75-


average life to maturity than the Maturity Date of the Initial Term Loans or the remaining weighted average life to maturity of the Initial Term Loans, as applicable); ( iv ) the interest rate margins and (subject to clause (iii) above) amortization schedule applicable to the loans made pursuant to the Incremental Commitments shall be determined by the Borrower and the applicable Additional Lenders; provided that in the event that the applicable interest rate margins for any term loans Incurred by the Borrower under any Incremental Term Loan Commitment are higher than the applicable interest rate margin for the Initial Term Loans by more than 50 basis points, then the Applicable Margin for the Initial Term Loans shall be increased to the extent necessary so that the applicable interest rate margin for the Initial Term Loans is equal to the applicable interest rate margins for such Incremental Term Loan Commitment minus 50 basis points; provided , further , that in determining the applicable interest rate margins for the Initial Term Loans and the Incremental Term Loans, ( A ) original issue discount (“ OID ”) or upfront fees payable generally to all participating Additional Lenders in lieu of OID (which shall be deemed to constitute like amounts of OID) payable by the Borrower to the Lenders under the Initial Term Loans or any Incremental Term Loan in the initial primary syndication thereof shall be included (with OID being equated to interest based on an assumed four-year life to maturity), ( provided that, if the Initial Term Loans are issued in a manner such that all Initial Term Loans were not issued with a uniform amount of OID or upfront fees within the Tranche of Initial Term Loans, the amount of OID and upfront fees attributable to the entire Tranche of Initial Term Loans shall be determined on a weighted average basis), ( B ) any arrangement, structuring or other fees payable in connection with the Incremental Term Loans that are not shared with all Additional Lenders providing such Incremental Term Loans shall be excluded, ( C ) any amendments to the Applicable Margin on Initial Term Loans that became effective subsequent to the Restatement Effective Date but prior to the time of such Incremental Term Loans shall also be included in such calculations, ( D ) if the Incremental Term Loans include an interest rate floor greater than the interest rate floor applicable to the Initial Term Loans, such increased amount shall be equated to the applicable interest rate margin for purposes of determining whether an increase to the Applicable Margin for the Initial Term Loans shall be required, to the extent an increase in the interest rate floor for the Initial Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case the interest rate floor (but not the Applicable Margin) applicable to the Initial Term Loans shall be increased by such amount, ( E ) if the Incremental Term Loans include an interest rate floor lower than the interest rate floor applicable to the Initial Term Loans or do not include any interest rate floor, to the extent a reduction in the interest rate floor for such Initial Term Loans would cause a reduction in the interest rate then in effect thereunder, an amount equal to the difference between the interest rate floor applicable to the Initial Term Loans and the interest rate floor applicable to such Incremental Term Loans (which shall be deemed to equal 0% for any Incremental Term Loans without any interest rate floor), but which in any event shall not exceed the maximum amount by which a reduction in the interest rate floor applicable to the Initial Term Loans would cause a reduction in the interest rate then in effect thereunder, shall reduce the applicable interest rate margin of the applicable Incremental Terms Loans for purposes of determining whether an increase to the Applicable Margin for such Initial Term Loans shall be required, and ( F ) if the applicable Initial Term Loans include a pricing grid the interest rate margins in such pricing grid which are not in effect at the time the applicable Incremental Commitments become effective shall also each be increased by an amount equal to the increased amount; ( v ) such Incremental Commitment Amendment may provide ( 1 ) for the inclusion, as appropriate, of Additional

 

-76-


Lenders in any required vote or action of the Required Lenders or of the Lenders of each Tranche hereunder, ( 2 ) class voting and other class protections for any additional credit facilities, ( 3 ) for the amendment of the definitions of “Additional Obligations” and “Refinancing Indebtedness” and Subsection 8.8(b) , in each case only to extend the maturity date and the weighted average life to maturity requirements, from the Maturity Date of the Initial Term Loans and remaining weighted average life to maturity of the Initial Term Loans to the extended maturity date and the weighted average life to maturity of such Incremental Term Loans, as applicable, and ( 4 ) in the case of an Incremental Revolving Commitment, provide for adjustments to the definition of “Agent Default”, “Defaulting Lender” protections and appropriate modifications to Subsection 2.8 to provide for “amend and extend” mechanics for Incremental Revolving Commitments (and related Obligations), in each case on terms substantially similar to the equivalent provisions in the Senior ABL Facility Agreement (as in effect on the Restatement Effective Date), or as otherwise agreed by the Borrower, the Administrative Agent and the Lenders providing such Commitments (including any swingline lender or issuing lender); and ( vi ) the other terms and documentation in respect thereof, to the extent not consistent with this Agreement as in effect prior to giving effect to the Incremental Commitment Amendment, shall otherwise be reasonably satisfactory to the Borrower, provided that to the extent such terms and documentation are not consistent with, in the case of Incremental Term Loans, the terms and documentation governing the Initial Term Loans (except to the extent permitted by clause (iii), (iv) or (v) above), they shall be reasonably satisfactory to the Administrative Agent.

2.7 Permitted Debt Exchanges . (a) Notwithstanding anything to the contrary contained in this Agreement, pursuant to one or more offers (each, a “ Permitted Debt Exchange Offer ”) made from time to time by the Borrower to all Lenders (other than any Lender that, if requested by the Borrower, is unable to certify that it is either a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or an institutional “accredited investor” (as defined in Rule 501 under the Securities Act)) with outstanding Term Loans of a particular Tranche, as selected by the Borrower, the Borrower may from time to time following the Restatement Effective Date consummate one or more exchanges of Term Loans of such Tranche for Additional Obligations in the form of notes (such notes, “ Permitted Debt Exchange Notes ”, and each such exchange a “ Permitted Debt Exchange ”), so long as the following conditions are satisfied: ( i ) no Event of Default under Subsection 9.1(a) or (f)  shall have occurred and be continuing at the time the relevant offering document in respect of a Permitted Debt Exchange Offer is delivered to the relevant Lenders, ( ii ) the aggregate principal amount (calculated on the face amount thereof) of Term Loans exchanged shall equal the aggregate principal amount (calculated on the face amount thereof) of Permitted Debt Exchange Notes issued in exchange for such Term Loans, ( iii ) the aggregate principal amount (calculated on the face amount thereof) of all Term Loans exchanged by the Borrower pursuant to any Permitted Debt Exchange shall automatically be cancelled and retired by the Borrower on the date of the settlement thereof (and, if requested by the Administrative Agent, any applicable exchanging Lender shall execute and deliver to the Administrative Agent an Assignment and Acceptance, or such other form as may be reasonably requested by the Administrative Agent, in respect thereof pursuant to which the respective Lender assigns its interest in the Term Loans being exchanged pursuant to the Permitted Debt Exchange to the Borrower for immediate cancellation), ( iv ) if the aggregate principal amount of all Term Loans (calculated on the face amount thereof) tendered by Lenders in respect of the relevant Permitted Debt Exchange Offer (with no Lender being permitted to

 

-77-


tender a principal amount of Term Loans which exceeds the principal amount of the applicable Tranche actually held by it) shall exceed the maximum aggregate principal amount of Term Loans offered to be exchanged by the Borrower pursuant to such Permitted Debt Exchange Offer, then the Borrower shall exchange Term Loans subject to such Permitted Debt Exchange Offer tendered by such Lenders ratably up to such maximum amount based on the respective principal amounts so tendered, ( v ) each such Permitted Debt Exchange Offer shall be made on a pro rata basis to the Lenders (other than any Lender that, if requested by the Borrower, is unable to certify that it is either a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or an institutional “accredited investor” (as defined in Rule 501 under the Securities Act)) based on their respective aggregate principal amounts of outstanding Term Loans of the applicable Tranche, ( vi ) all documentation in respect of such Permitted Debt Exchange shall be consistent with the foregoing, and all written communications generally directed to the Lenders in connection therewith shall be in form and substance consistent with the foregoing and made in consultation with the Administrative Agent, and ( vi ) any applicable Minimum Exchange Tender Condition shall be satisfied.

(b) With respect to all Permitted Debt Exchanges effected by the Borrower pursuant to this Subsection 2.7 , ( i ) such Permitted Debt Exchanges (and the cancellation of the exchanged Term Loans in connection therewith) shall not constitute voluntary or mandatory payments or prepayments for purposes of Subsection 4.4 and ( ii ) such Permitted Debt Exchange Offer shall be made for not less than $25.0 million in aggregate principal amount of Term Loans, provided that subject to the foregoing clause (ii), the Borrower may at its election specify as a condition (a “ Minimum Exchange Tender Condition ”) to consummating any such Permitted Debt Exchange that a minimum amount (to be determined and specified in the relevant Permitted Debt Exchange Offer in the Borrower’s discretion) of Term Loans be tendered.

(c) In connection with each Permitted Debt Exchange, the Borrower shall provide the Administrative Agent at least ten Business Days’ (or such shorter period as may be agreed by the Administrative Agent) prior written notice thereof, and the Borrower and the Administrative Agent, acting reasonably, shall mutually agree to such procedures as may be necessary or advisable to accomplish the purposes of this Subsection 2.7 and without conflict with Subsection 2.7(d) ; provided that the terms of any Permitted Debt Exchange Offer shall provide that the date by which the relevant Lenders are required to indicate their election to participate in such Permitted Debt Exchange shall be not less than five Business Days following the date on which the Permitted Debt Exchange Offer is made (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion).

(d) The Borrower shall be responsible for compliance with, and hereby agrees to comply with, all applicable securities and other laws in connection with each Permitted Debt Exchange, it being understood and agreed that ( x ) neither the Administrative Agent nor any Lender assumes any responsibility in connection with the Borrower’s compliance with such laws in connection with any Permitted Debt Exchange (other than the Borrower’s reliance on any certificate delivered by a Lender pursuant to Subsection 2.7(a ) above for which such Lender shall bear sole responsibility) and ( y ) each Lender shall be solely responsible for its compliance with any applicable “insider trading” laws and regulations to which such Lender may be subject under the Securities Exchange Act of 1934, as amended.

 

-78-


2.8 Extension of Term Loans . (a) The Borrower may at any time and from time to time request that all or a portion of the Term Loans of one or more Tranches (including any Extended Term Loans) existing at the time of such request (each, an “ Existing Term Tranche ” and the Term Loans of such Tranche, the “ Existing Term Loans ”) be converted to extend the scheduled maturity date(s) of any payment of principal with respect to all or a portion of any principal amount of any Existing Term Tranche (any such Existing Term Tranche which has been so extended, an “ Extended Term Tranche ” and the Term Loans of such Tranche, the “ Extended Term Loans ”) and to provide for other terms consistent with this Subsection 2.8 ; provided that ( i ) any such request shall be made by the Borrower to all Lenders with Term Loans with a like maturity date (whether under one or more Tranches) on a pro rata basis (based on the aggregate outstanding principal amount of the applicable Term Loans), ( ii ) no Event of Default under Subsection 9.1(a) or (f)  shall have occurred and be continuing at the time of any such request and ( iii ) any applicable Minimum Extension Condition shall be satisfied unless waived by the Borrower. Subject to the provisions of this Subsection 2.8 , the Borrower may elect to extend an Existing Term Tranche by combining the Existing Term Loans thereunder with existing Extended Term Loans, in which case such Existing Term Loans shall become Extended Term Loans and shall constitute an Extension Series with such existing Extended Term Loans. In order to establish any Extended Term Tranche, the Borrower shall provide a notice to the Administrative Agent (who shall provide a copy of such notice to each of the Lenders of the applicable Existing Term Tranche) (an “ Extension Request ”) setting forth the proposed terms of the Extended Term Tranche to be established, which terms shall be substantially similar to those applicable to the Existing Term Tranche from which they are to be extended (the “ Specified Existing Term Tranche ”), except ( x ) all or any of the final maturity dates of such Extended Term Tranches may be delayed to later dates than the final maturity dates of the Specified Existing Term Tranche, ( y ) ( A ) the interest margins with respect to the Extended Term Tranche may be higher or lower than the interest margins for the Specified Existing Term Tranche and/or ( B ) additional fees may be payable to the Lenders providing such Extended Term Tranche in addition to or in lieu of any increased margins contemplated by the preceding clause (A), in each case to the extent provided in the applicable Extension Amendment and ( z ) amortization with respect to the Extended Term Tranche may be greater or lesser than amortization for the Specified Existing Tranche, so long as the Extended Term Tranche does not have a weighted average life to maturity shorter than the remaining weighted average life to maturity of the Specified Existing Tranche; provided that, notwithstanding anything to the contrary in this Subsection 2.8 or otherwise, assignments and participations of Extended Term Tranches shall be governed by the same or, at the Borrower’s discretion, more restrictive assignment and participation provisions than those applicable to Initial Term Loans set forth in Subsection 11.6 . No Lender shall have any obligation to agree to have any of its Existing Term Loans converted into an Extended Term Tranche pursuant to any Extension Request. Any Extended Term Tranche shall constitute a separate Tranche of Term Loans from the Specified Existing Term Tranches and from any other Existing Term Tranches (together with any other Extended Term Tranches so established on such date).

(b) The Borrower shall provide the applicable Extension Request at least ten (10) Business Days (or such shorter period as the Administrative Agent may agree in its reasonable discretion) prior to the date on which Lenders under the applicable Existing Term Tranche or Existing Term Tranches are requested to respond. Any Lender (an “ Extending Lender ”) wishing to have all or a portion of its Specified Existing Term Tranche converted into

 

-79-


an Extended Term Tranche shall notify the Administrative Agent (each, an “ Extension Election ”) on or prior to the date specified in such Extension Request of the amount of its Specified Existing Term Tranche that it has elected to convert into an Extended Term Tranche. In the event that the aggregate amount of the Specified Existing Term Tranche subject to Extension Elections exceeds the amount of Extended Term Tranches requested pursuant to the Extension Request, the Specified Existing Term Tranches subject to Extension Elections shall be converted to Extended Term Tranches on a pro rata basis based on the amount of Specified Existing Term Tranches included in each such Extension Election. In connection with any extension of Term Loans pursuant to this Subsection 2.8 (each, an “ Extension ”), the Borrower shall agree to such procedures regarding timing, rounding and other administrative adjustments to ensure reasonable administrative management of the credit facilities hereunder after such Extension, as may be established by or acceptable to the Administrative Agent, in each case acting reasonably to accomplish the purposes of this Subsection 2.8 . The Borrower may amend, revoke or replace an Extension Request pursuant to procedures reasonably acceptable to the Administrative Agent at any time prior to the date (the “ Extension Request Deadline ”) on which Lenders under the applicable Existing Term Tranche or Existing Term Tranches are requested to respond to the Extension Request. Any Lender may revoke an Extension Election at any time prior to 5:00 p.m. on the date that is two (2) Business Days prior to the Extension Request Deadline, at which point the Extension Request becomes irrevocable (unless otherwise agreed by the Borrower). The revocation of an Extension Election prior to the Extension Request Deadline shall not prejudice any Lender’s right to submit a new Extension Election prior to the Extension Request Deadline.

(c) Extended Term Tranches shall be established pursuant to an amendment (an “ Extension Amendment ”) to this Agreement (which may include amendments to (i) provisions related to maturity or interest margins, fees or amortization referenced in clauses (x), (y) and (z) of Subsection 2.8(a) , (ii) the definitions of “Additional Obligations” and “Refinancing Indebtedness” and Subsection 8.8(b) to extend the maturity date and the weighted average life to maturity requirements, from the Maturity Date of the Initial Term Loans and weighted average life to maturity of the Initial Term Loans to the extended maturity date and the weighted average life to maturity of such Extended Term Tranche, as applicable, and which, in each case, except to the extent expressly contemplated by the penultimate sentence of this Subsection 2.8(c) and notwithstanding anything to the contrary set forth in Subsection 11.1 , shall not require the consent of any Lender other than the Extending Lenders with respect to the Extended Term Tranches established thereby) executed by the Loan Parties, the Administrative Agent, and the Extending Lenders. No Extension Amendment shall provide for any Extended Term Tranche in an aggregate principal amount that is less than $50,000,000. Notwithstanding anything to the contrary in this Agreement and without limiting the generality or applicability of Subsection 11.1 to any Subsection 2.8 Additional Amendments, any Extension Amendment may provide for additional terms and/or additional amendments other than those referred to or contemplated above (any such additional amendment, a “ Subsection 2.8 Additional Amendment ”) to this Agreement and the other Loan Documents; provided , that such Subsection 2.8 Additional Amendments do not become effective prior to the time that such Subsection 2.8 Additional Amendments have been consented to (including, without limitation, pursuant to consents applicable to holders of any Extended Term Tranches provided for in any Extension Amendment) by such of the Lenders, Loan Parties and other parties (if any) as may be required in order for such Subsection 2.8 Additional Amendments to become effective in accordance with

 

-80-


Subsection 11.1 ; provided , further , that no Extension Amendment may provide for ( i ) any Extended Term Tranche to be secured by any Collateral or other assets of any Loan Party that does not also secure the Existing Term Tranches and ( ii ) so long as any Existing Term Tranches are outstanding, any mandatory prepayment provisions that do not also apply to the Existing Term Tranches (other than Existing Term Tranches secured on a junior basis by the Collateral or ranking junior in right of payment) on a pro rata basis (or otherwise provide for more favorable prepayment treatment for Existing Term Tranches than such Extended Term Tranches as contemplated by the proviso appearing in Subsection 4.4(c) ). It is understood and agreed that each Lender has consented for all purposes requiring its consent, and shall at the effective time thereof be deemed to consent to each amendment to this Agreement and the other Loan Documents authorized by this Subsection 2.8 and the arrangements described above in connection therewith except that the foregoing shall not constitute a consent on behalf of any Lender to the terms of any Subsection 2.8 Additional Amendment. In connection with any Extension Amendment, the Borrower shall deliver an opinion of counsel reasonably acceptable to the Administrative Agent as to the enforceability of such Extension Amendment, this Agreement as amended thereby, and such of the other Loan Documents (if any) as may be amended thereby.

(d) Notwithstanding anything to the contrary contained in this Agreement, on any date on which any Existing Term Tranche is converted to extend the related scheduled maturity date(s) in accordance with clause (a) above (an “ Extension Date ”), in the case of the Specified Existing Term Tranche of each Extending Lender, the aggregate principal amount of such Specified Existing Term Tranche shall be deemed reduced by an amount equal to the aggregate principal amount of Extended Term Tranche so converted by such Lender on such date, and such Extended Term Tranches shall be established as a separate Tranche from the Specified Existing Term Tranche and from any other Existing Term Tranches (together with any other Extended Term Tranches so established on such date); provided that any Extended Term Tranche or Extended Term Loans may, to the extent provided in the applicable Extension Amendment, be designated as part of any Tranche of Term Loans or Extension Series established on or prior to the date of such Extension Amendment.

(e) If, in connection with any proposed Extension Amendment, any Lender declines to consent to the applicable extension on the terms and by the deadline set forth in the applicable Extension Request (each such other Lender, a “ Non-Extending Lender ”) then the Borrower may, on notice to the Administrative Agent and the Non-Extending Lender, ( i ) replace such Non-Extending Lender by causing such Lender to (and such Lender shall be obligated to) assign pursuant to Subsection 11.6 (with the assignment fee and any other costs and expenses to be paid by the Borrower in such instance) all of its rights and obligations under this Agreement to one or more assignees; provided , that neither the Administrative Agent nor any Lender shall have any obligation to the Borrower to find a replacement Lender; provided , further , that the applicable assignee shall have agreed to provide Extended Term Loans on the terms set forth in such Extension Amendment; and provided , further , that all obligations of the Borrower owing to the Non-Extending Lender relating to the Existing Term Loans so assigned shall be paid in full by the assignee Lender (or, at the Borrower’s option, by the Borrower) to such Non-Extending Lender concurrently with such Assignment and Acceptance or ( ii ) upon notice to the Administrative Agent, prepay the Existing Term Loans, in whole or in part, subject to Subsection 4.12 , without premium or penalty. In connection with any such replacement under

 

-81-


this Subsection 2.8 , if the Non-Extending Lender does not execute and deliver to the Administrative Agent a duly completed Assignment and Acceptance and/or any other documentation necessary to reflect such replacement by the later of ( A ) the date on which the replacement Lender executes and delivers such Assignment and Acceptance and/or such other documentation and ( B ) the date as of which all obligations of the Borrower owing to the Non-Extending Lender relating to the Existing Term Loans so assigned shall be paid in full by the assignee Lender (or, at the Borrower’s option, by the Borrower) to such Non-Extending Lender, then such Non-Extending Lender shall be deemed to have executed and delivered such Assignment and Acceptance and/or such other documentation as of such date and the Borrower shall be entitled (but not obligated) to execute and deliver such Assignment and Acceptance and/or such other documentation on behalf of such Non-Extending Lender.

(f) Following any Extension Date, with the written consent of the Borrower, any Non-Extending Lender may elect to have all or a portion of its Existing Term Loans deemed to be an Extended Term Loan under the applicable Extended Term Tranche on any date (each date a “Designation Date”) prior to the maturity date of such Extended Term Tranche; provided that (i) such Lender shall have provided written notice to the Borrower and the Administrative Agent at least 10 Business Days prior to such Designation Date (or such shorter period as the Administrative Agent may agree in its reasonable discretion) and (ii) no more than three Designation Dates may occur in any one year period without the written consent of the Administrative Agent. Following a Designation Date, the Existing Term Loans held by such Lender so elected to be extended will be deemed to be Extended Term Loans of the applicable Extended Term Tranche, and any Existing Term Loans held by such Lender not elected to be extended, if any, shall continue to be “Existing Term Loans” of the applicable Tranche.

(g) With respect to all Extensions consummated by the Borrower pursuant to this Subsection 2.8 , ( i ) such Extensions shall not constitute optional or mandatory payments or prepayments for purposes of Subsection 4.4 and ( ii ) no Extension Request is required to be in any minimum amount or any minimum increment, provided that the Borrower may at its election specify as a condition to consummating any such Extension that a minimum amount (to be determined and specified in the relevant Extension Request in the Borrower’s sole discretion and may be waived by the Borrower) of Existing Term Loans of any or all applicable Tranches be extended. The Administrative Agent and the Lenders hereby consent to the transactions contemplated by this Subsection 2.8 (including, for the avoidance of doubt, payment of any interest, fees or premium in respect of any Extended Term Loans on such terms as may be set forth in the relevant Extension Request) and hereby waive the requirements of any provision of this Agreement (including, without limitation, Subsections 4.4 and 4.8 ) or any other Loan Document that may otherwise prohibit any such Extension or any other transaction contemplated by this Subsection 2.8 .

2.9 Specified Refinancing Facilities .

(a) The Borrower may, from time to time, add new term loan commitments under one or more new term loan credit facilities to be included in this Agreement (the “ Specified Refinancing Term Loan Commitments ”) to refinance all or any portion of any Tranche of Loans then outstanding under this Agreement (each such facility, a “ Specified Refinancing Facility ”); provided , that ( i ) the Specified Refinancing Term Loan Commitments

 

-82-


will not be guaranteed by any Subsidiary of the Borrower other than the Subsidiary Guarantors, and will be secured by the same Collateral securing the Term Loan Facility Obligations (so long as any such Specified Refinancing Amendments (and related Obligations) are subject to the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement (after execution and delivery thereof) or any Other Intercreditor Agreement (after execution and delivery thereof)) or (at the Borrower’s option) will be unsecured, ( ii ) the Specified Refinancing Term Loan Commitments and any term loans drawn thereunder (the “ Specified Refinancing Term Loans ”) shall rank pari passu in right of payment with or (at the Borrower’s option) junior to the Term Loan Facility Obligations, ( iii ) no Specified Refinancing Amendment may provide for any Specified Refinancing Term Loan Commitments or any Specified Refinancing Term Loans to be secured by any Collateral or other assets of any Loan Party that do not also secure the Term Loan Facility Obligations, ( iv ) the Specified Refinancing Term Loan Commitments will have such pricing, amortization (subject to clause (vi) below) and optional and mandatory prepayment terms as may be agreed by the Borrower and the applicable Lenders thereof, ( v ) [Reserved], ( vi ) the maturity date and the weighted average life to maturity of the Specified Refinancing Term Loan Commitments shall be no earlier than or shorter than, as the case may be, the Maturity Date of the Tranche of Term Loans being refinanced or the remaining weighted average life to maturity of the Term Loans being refinanced, as applicable (other than an earlier maturity date and/or shorter weighted average life to maturity for customary bridge financings, which, subject to customary conditions, would either be automatically converted into or required to be exchanged for permanent financing which does not provide for an earlier maturity date or a shorter weighted average life to maturity than the Maturity Date of the Tranche of Term Loans being refinanced or the remaining weighted average life to maturity of the Term Loans being refinanced, as applicable), ( vii ) the Net Cash Proceeds of such Specified Refinancing Term Loan Commitments shall be applied, substantially concurrently with the incurrence thereof, to the pro rata prepayment of outstanding Loans being so refinanced, in each case pursuant to Subsection 4.4 ; and ( viii ) the Specified Refinancing Term Loan Commitments shall not have a principal or commitment amount greater than the Loans being refinanced plus the aggregate amount of all fees, underwriting discounts, premiums and other costs and expenses incurred in connection with such refinancing.

(b) Each request from the Borrower pursuant to this Subsection 2.9 shall set forth the requested amount and proposed terms of the relevant Specified Refinancing Term Loan Commitments. The Specified Refinancing Term Loan Commitments (or any portion thereof) may be made by any existing Lender or by any other bank or financial institution (any such bank or other financial institution, an “ Additional Specified Refinancing Lender ”, and the Additional Specified Refinancing Lenders together with any existing Lender providing Specified Refinancing Term Loan Commitments, the “ Specified Refinancing Lenders ”); provided that if such Additional Specified Refinancing Lender is not already a Lender hereunder or an Affiliate of a Lender hereunder or an Approved Fund, the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required.

(c) Specified Refinancing Term Loan Commitments shall become facilities under this Agreement pursuant to a Specified Refinancing Amendment to this Agreement and, as appropriate, the other Loan Documents, executed by the Borrower and each applicable Specified Refinancing Lender. Any Specified Refinancing Amendment may, without the consent of any other Lender, effect such amendments to any Loan Documents as may be necessary or appropriate, in the opinion of the Borrower and the Administrative Agent, to effect the provisions of this Subsection 2.9 , in each case on terms consistent with this Subsection 2.9 .

 

-83-


(d) Any loans made in respect of any such Specified Refinancing Term Loan Commitments shall be made by creating a new Tranche. Each Specified Refinancing Facility made available pursuant to this Subsection 2.9 shall be in a minimum aggregate amount of at least $25.0 million (or such lower minimum amounts as agreed to by the Administrative Agent in its reasonable discretion).

(e) The Administrative Agent shall promptly notify each Lender as to the effectiveness of each Specified Refinancing Amendment. Each of the parties hereto hereby agrees that, upon the effectiveness of any Specified Refinancing Amendment, this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Specified Refinancing Term Loan Commitments incurred pursuant thereto (including the addition of such Specified Refinancing Term Loan Commitments as separate “Facilities” and “Tranches” hereunder and treated in a manner consistent with the Facilities being refinanced, including for purposes of prepayments and voting). Any Specified Refinancing Amendment may, without the consent of any Person other than the Borrower, the Administrative Agent and the Lenders providing such Specified Refinancing Term Loan Commitments, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Subsection 2.9 .

SECTION 3

[Reserved]

SECTION 4

General Provisions Applicable to Loans

4.1 Interest Rates and Payment Dates . (a) Each Eurodollar Loan shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Adjusted LIBOR Rate determined for such day plus the Applicable Margin in effect for such day.

(b) Each ABR Loan shall bear interest for each day that it is outstanding at a rate per annum equal to the Alternate Base Rate in effect for such day plus the Applicable Margin in effect for such day.

(c) If all or a portion of ( i ) the principal amount of any Term Loan, ( ii ) any interest payable thereon or ( iii ) any other amount payable hereunder shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per annum which is ( x ) in the case of overdue principal, the rate that would otherwise be applicable thereto pursuant to the relevant foregoing provisions of this Subsection 4.1 , plus 2.00% and ( y ) in the case of overdue interest, the rate that would be otherwise applicable to principal of the related Term Loan pursuant to the relevant foregoing

 

-84-


provisions of this Subsection 4.1 (other than clause (x) above) plus 2.00% and ( z ) in the case of other amounts, the rate described in clause (b) of this Subsection 4.1 for ABR Loans accruing interest at the Alternate Base Rate plus 2.00%, in each case from the date of such nonpayment until such amount is paid in full (as well after as before judgment).

(d) Interest shall be payable in arrears on each Interest Payment Date; provided , that interest accruing pursuant to clause (c) of this Subsection 4.1 shall be payable from time to time on demand.

(e) It is the intention of the parties hereto to comply strictly with applicable usury laws; accordingly, it is stipulated and agreed that the aggregate of all amounts which constitute interest under applicable usury laws, whether contracted for, charged, taken, reserved, or received, in connection with the indebtedness evidenced by this Agreement or any Notes, or any other document relating or referring hereto or thereto, now or hereafter existing, shall never exceed under any circumstance whatsoever the maximum amount of interest allowed by applicable usury laws.

4.2 Conversion and Continuation Options . (a) Subject to its obligations pursuant to Subsection 4.12(c) , the Borrower may elect from time to time to convert outstanding Loans of a given Tranche from Eurodollar Loans to ABR Loans, by the Borrower giving the Administrative Agent irrevocable notice of such election prior to 1:00 P.M., New York City time on the date of such election. The Borrower may elect from time to time to convert outstanding Term Loans of a given Tranche from ABR Loans to Eurodollar Loans, by the Borrower giving the Administrative Agent irrevocable notice of such election prior to 1:00 P.M., New York City time at least three Business Days prior to such election (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion). Any such notice of conversion to Eurodollar Loans shall specify the length of the initial Interest Period or Interest Periods therefor. Upon receipt of any such notice the Administrative Agent shall promptly notify each affected Lender thereof. All or any part of outstanding Eurodollar Loans or ABR Loans may be converted as provided herein; provided , that ( i ) (unless the Required Lenders otherwise consent) no Loan may be converted into a Eurodollar Loan when any Default or Event of Default has occurred and is continuing and, in the case of any Default (other than a Default under Subsection 9.1(f) ), the Administrative Agent has given notice to the Borrower that no such conversions may be made and ( ii ) no Term Loan may be converted into a Eurodollar Loan after the date that is one month prior to the applicable Maturity Date.

(b) Any Eurodollar Loan may be continued as such upon the expiration of the then current Interest Period with respect thereto by the Borrower giving notice to the Administrative Agent of the length of the next Interest Period to be applicable to such Eurodollar Loan, determined in accordance with the applicable provisions of the term “ Interest Period ” set forth in Subsection 1.1 ; provided , that no Eurodollar Loan may be continued as such ( i ) (unless the Required Lenders otherwise consent) when any Default or Event of Default has occurred and is continuing and, in the case of any Default (other than a Default under Subsection 9.1(f) ), the Administrative Agent has given notice to the Borrower that no such continuations may be made or ( ii ) after the date that is one month prior to the applicable Maturity Date and; provided , further , that if the Borrower shall fail to give any required notice as described above in this clause (b) or if such continuation is not permitted pursuant to the preceding proviso such

 

-85-


Eurodollar Loans shall be automatically converted to ABR Loans on the last day of such then expiring Interest Period. Upon receipt of any such notice of continuation pursuant to this Subsection 4.2(b) , the Administrative Agent shall promptly notify each affected Lender thereof.

4.3 Minimum Amounts; Maximum Sets . All borrowings, conversions and continuations of Term Loans hereunder and all selections of Interest Periods hereunder shall be in such amounts and be made pursuant to such elections so that, after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each Set shall be equal to $1.0 million or a whole multiple of $250,000 in excess thereof and so that there shall not be more than 15 Sets at any one time outstanding.

4.4 Optional and Mandatory Prepayments . (a) The Borrower may at any time and from time to time prepay the Term Loans made to it, in whole or in part, subject to Subsection 4.12 , without premium or penalty (except as provided in Subsection 4.5(b) ), upon notice by the Borrower to the Administrative Agent prior to 1:00 P.M., New York City time three Business Days (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion) prior to the date of prepayment (in the case of Eurodollar Loans), or prior to 12:00 P.M., New York City time at least one Business Day (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion) prior to the date of prepayment (in the case of ABR Loans). Such notice shall specify, in the case of any prepayment of Term Loans, the applicable Tranche being repaid, and if a combination thereof, the principal amount allocable to each, the date and amount of prepayment and whether the prepayment is of Eurodollar Loans or ABR Loans or a combination thereof, and, in each case if a combination thereof, the principal amount allocable to each. Any such notice may state that such notice is conditioned upon the occurrence or non-occurrence of any event specified therein (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Borrower (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Upon the receipt of any such notice the Administrative Agent shall promptly notify each affected Lender thereof. If any such notice is given and not revoked, the amount specified in such notice shall be due and payable on the date specified therein, together with (if a Eurodollar Loan is prepaid other than at the end of the Interest Period applicable thereto) any amounts payable pursuant to Subsection 4.12 . Partial prepayments pursuant to this Subsection 4.4(a) shall be in multiples of $1.0 million; provided , that notwithstanding the foregoing, any Term Loan may be prepaid in its entirety. Each prepayment of Initial Term Loans pursuant to this Subsection 4.4(a) made on or prior to the twelve-month anniversary of the Restatement Effective Date in connection with a Repricing Transaction shall be accompanied by the payment of the fee required by Subsection 4.5(b) .

(b) ( i ) The Borrower shall, in accordance with Subsection 4.4(c) , prepay the Term Loans to the extent required by Subsection 8.4(b) (subject to Subsection 8.4(c) ), ( ii ) if on or after the Restatement Effective Date, the Borrower or any of its Restricted Subsidiaries shall Incur Indebtedness for borrowed money (excluding Indebtedness permitted pursuant to Subsection 8.1 ), the Borrower shall, in accordance with Subsection 4.4(c) , prepay the Term Loans in an amount equal to 100.0% of the Net Cash Proceeds thereof minus the portion of such Net Cash Proceeds applied or offered (to the extent Borrower or any of its Subsidiaries is required by the terms thereof) to prepay, repay or purchase other Indebtedness that is pari passu with the Term Loan Facility Obligations on a pro rata basis with the Term Loans, in each case

 

-86-


with such prepayment to be made on or before the fifth Business Day following notice given to each Lender of the Prepayment Date, as contemplated by Subsection 4.4(d) , and ( iii ) the Borrower shall, in accordance with Subsection 4.4(c) , prepay the Term Loans within 120 days following the last day of the immediately preceding Fiscal Year (commencing with the Fiscal Year ending on or about December 31, 2017) (each, an “ ECF Payment Date ”), in an amount equal to ( A )( 1 ) 50.0% (as may be adjusted pursuant to the last proviso of this clause (iii)) of the Borrower’s Excess Cash Flow for such Fiscal Year minus ( 2 ) the sum of ( w ) the aggregate principal amount of Term Loans (including Incremental Term Loans), Incremental Revolving Loans to the extent accompanied by a corresponding permanent Incremental Revolving Commitment reduction prepaid pursuant to Subsection 4.4(a) and pari passu Indebtedness (in the case of revolving loans, to the extent accompanied by a corresponding permanent commitment reduction) voluntarily prepaid, repaid, repurchased or retired and any prepayment of Term Loans (including Incremental Term Loans, Extended Term Loans and Specified Refinancing Term Loans) pursuant to Subsection 4.4(i) ( provided that such deduction for prepayments pursuant to Subsection 4.4(i) shall be limited to the actual cash amount of such prepayment), in each case during such Fiscal Year (which, in any event, shall not include any designated prepayment pursuant to clause (x) below), ( x ) the aggregate principal amount of Term Loans (including Incremental Term Loans) and Incremental Revolving Loans to the extent accompanied by a corresponding permanent Incremental Revolving Commitment reduction prepaid pursuant to Subsection 4.4(a) during the period beginning with the day following the last day of such Fiscal Year and ending on the ECF Payment Date and stated by the Borrower as prepaid pursuant to this Subsection 4.4(b)(iii) ( provided that no prepayments made pursuant to Subsection 4.4(h) or the other clauses of this Subsection 4.4(b) shall be so designated), ( y ) any ABL Facility Loans prepaid to the extent accompanied by a corresponding permanent commitment reduction under the Senior ABL Facility during such Fiscal Year (which, in any event, shall not include any designated prepayment pursuant to clause (z) below), and ( z ) the aggregate principal amount of ABL Facility Loans prepaid to the extent accompanied by a corresponding permanent commitment reduction under the Senior ABL Facility during the period beginning with the day following the last day of such Fiscal Year and ending on the ECF Payment Date and stated by the Borrower as prepaid pursuant to this Subsection 4.4(b)(iii) ( provided that no prepayments made pursuant to the other clauses of this Subsection 4.4(b) shall be so designated), in each case, excluding prepayments funded with proceeds from the Incurrence of long-term Indebtedness (including a revolving credit facility) (the amount described in this clause (A), the “ ECF Prepayment Amount ”) minus ( B ) the portion of such ECF Prepayment Amount applied or offered (to the extent Borrower or any of its Subsidiaries is required by the terms thereof) to prepay, repay or purchase other Indebtedness that is pari passu with the Term Loan Facility Obligations on a pro rata basis with the Term Loans; provided , that such percentage in clause (A)(1) above shall be reduced to 0% if the Consolidated Net Leverage Ratio as of the last day of the immediately preceding Fiscal Year was less than 5.75:1.00. Nothing in this Subsection 4.4(b) shall limit the rights of the Agents and the Lenders set forth in Section 9 .

(c) Subject to the last sentence of Subsection 4.4(d) and Subsection 4.4(g) , each prepayment of Term Loans pursuant to Subsection 4.4(b) shall be allocated pro rata among the Initial Term Loans, the Incremental Term Loans, Extended Term Loans and Specified Refinancing Term Loans and shall be applied within each Tranche of Term Loans to the respective installments of principal thereof in the manner directed by the Borrower (or, if no such direction is given, in direct order of maturity); provided , that at the request of the Borrower, in

 

-87-


lieu of such application on a pro rata basis among all Tranches of Term Loans, such prepayment may be applied to any Tranche of Term Loans so long as the maturity date of such Tranche of Term Loans precedes the maturity date of each other Tranche of Term Loans then outstanding or, in the event more than one Tranche of Term Loans shall have an identical maturity date that precedes the maturity date of each other Tranche of Term Loans then outstanding, to such Tranches on a pro rata basis.

(d) Notwithstanding any other provision of this Subsection 4.4 , a Lender may, at its option, and if agreed by the Borrower, in connection with any prepayment of Term Loans pursuant to Subsection 4.4(a) or (b) , exchange such Lender’s portion of the Term Loan to be prepaid for Rollover Indebtedness, in lieu of such Lender’s pro rata portion of such prepayment (and any such Term Loans so exchanged shall be deemed repaid for all purposes under the Loan Documents).

(e) The Borrower shall give notice to the Administrative Agent of any mandatory prepayment of the Term Loans ( x ) pursuant to Subsection 4.4(b)(iii) , three Business Days prior to the date on which such payment is due and ( y ) pursuant to Subsection 4.4(b)(i) or (ii) , promptly (and in any event within five Business Days) upon becoming obligated to make such prepayment. Such notice shall state that the Borrower is offering to make or will make such mandatory prepayment ( i ) in the case of mandatory prepayments pursuant to Subsection 4.4(b)(i) , on or before the date specified in Subsection 8.4(b) and ( ii ) in the case of mandatory prepayments pursuant to Subsection 4.4(b)(ii) or ( iii ), on or before the date specified in Subsection 4.4(b)(ii) or (iii) , as the case may be (each, a “ Prepayment Date ”). Subject to the following sentence, once given, such notice shall be irrevocable and all amounts subject to such notice shall be due and payable on the Prepayment Date (except as otherwise provided in the last sentence of this Subsection 4.4(d) ). Any such notice of prepayment pursuant to Subsection 4.4(b) may state that such notice is conditioned upon the occurrence or non-occurrence of any event specified therein (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Borrower (by written notice to the Administrative Agent, on or prior to the specified effective date) if such condition is not satisfied. Upon receipt by the Administrative Agent of such notice, the Administrative Agent shall immediately give notice to each Lender of the prepayment and the Prepayment Date. The Borrower (in its sole discretion) may give each Lender the option (in its sole discretion) to elect to decline any such prepayment by giving notice of such election in writing to the Administrative Agent by 11:00 A.M., New York City time, on the date that is three Business Days prior to the Prepayment Date (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion). Upon receipt by the Administrative Agent of such notice, the Administrative Agent shall immediately notify the Borrower of such election. Any amount so declined by any Lender may, at the option of the Borrower, be applied to pay or prepay other obligations under other Credit Facilities, or otherwise be retained by the Borrower and its Restricted Subsidiaries and/or applied by the Borrower or any of its Restricted Subsidiaries in any manner not inconsistent with this Agreement.

(f) Amounts prepaid on account of Term Loans pursuant to Subsection 4.4(a) , (b)  or (h)  may not be reborrowed.

 

-88-


(g) Notwithstanding the foregoing provisions of this Subsection 4.4 , if at any time any prepayment of the Term Loans pursuant to Subsection 4.4(a) or (b)  would result, after giving effect to the procedures set forth in this Agreement, in the Borrower incurring breakage costs under Subsection 4.12 as a result of Eurodollar Loans being prepaid other than on the last day of an Interest Period with respect thereto, then, the Borrower may, so long as no Default or Event of Default shall have occurred and be continuing, in its sole discretion, initially ( i ) deposit a portion (up to 100.0%) of the amounts that otherwise would have been paid in respect of such Eurodollar Loans with the Administrative Agent (which deposit must be equal in amount to the amount of such Eurodollar Loans not immediately prepaid), to be held as security for the obligations of the Borrower to make such prepayment pursuant to a cash collateral agreement to be entered into on terms reasonably satisfactory to the Administrative Agent with such cash collateral to be directly applied upon the first occurrence thereafter of the last day of an Interest Period with respect to such Eurodollar Loans (or such earlier date or dates as shall be requested by the Borrower) or ( ii ) make a prepayment of the Term Loans in accordance with Subsection 4.4(a) with an amount equal to a portion (up to 100.0%) of the amounts that otherwise would have been paid in respect of such Eurodollar Loans (which prepayment, together with any deposits pursuant to clause (i) above, must be equal in amount to the amount of such Eurodollar Loans not immediately prepaid); provided , that in the case of either clause (i) or (ii) above, such unpaid Eurodollar Loans shall continue to bear interest in accordance with Subsection 4.1 until such unpaid Eurodollar Loans or the related portion of such Eurodollar Loans, as the case may be, have or has been prepaid.

(h) Notwithstanding anything to the contrary herein, this Subsection 4.4 may be amended (and the Lenders hereby irrevocably authorize the Administrative Agent to enter into any such amendments) to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new classes or tranches of Term Loans added pursuant to Subsections 2.6 , 2.8 and 2.9 , as applicable.

(i) Notwithstanding anything in any Loan Document to the contrary, so long as no Event of Default under Subsection 9.1(a ) or (f ) has occurred and is continuing, the Borrower may prepay the outstanding Term Loans on the following basis:

(i) The Borrower shall have the right to make a voluntary prepayment of Term Loans at a discount to par (such prepayment, the “ Discounted Term Loan Prepayment ”) pursuant to a Borrower Offer of Specified Discount Prepayment, a Borrower Solicitation of Discount Range Prepayment Offers, or a Borrower Solicitation of Discounted Prepayment Offers, in each case made in accordance with this Subsection 4.4(h) ; provided that ( x ) at the time of such Discounted Term Loan Prepayment, after giving effect thereto, Total Liquidity is equal to or greater than $100.0 million, ( y ) the Borrower shall not initiate any action under this Subsection 4.4(h) in order to make a Discounted Term Loan Prepayment unless ( 1 ) at least ten Business Days shall have passed since the consummation of the most recent Discounted Term Loan Prepayment as a result of a prepayment made by the Borrower on the applicable Discounted Prepayment Effective Date (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion) or ( 2 ) at least three Business Days shall have passed since the date the Borrower was notified that no Lender was willing to accept any prepayment of any Term Loan at the Specified Discount, within the Discount Range or at any discount to par

 

-89-


value, as applicable, or in the case of Borrower Solicitation of Discounted Prepayment Offers, the date of the Borrower’s election not to accept any Solicited Discounted Prepayment Offers made by a Lender (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion). Any Term Loans prepaid pursuant to this Subsection 4.4(h) shall be immediately and automatically cancelled.

(ii) Borrower Offer of Specified Discount Prepayment.

(1) The Borrower may from time to time offer to make a Discounted Term Loan Prepayment by providing the Administrative Agent with three Business Day’s (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion) notice in the form of a Specified Discount Prepayment Notice; provided , that ( I ) any such offer shall be made available, at the sole discretion of the Borrower, to each Lender or to each Lender with respect to any Tranche on an individual Tranche basis, ( II ) any such offer shall specify the aggregate Outstanding Amount offered to be prepaid (the “ Specified Discount Prepayment Amount ”), the Tranches of Term Loans subject to such offer and the specific percentage discount to par value (the “ Specified Discount ”) of the Outstanding Amount of such Term Loans to be prepaid, ( III ) the Specified Discount Prepayment Amount shall be in an aggregate amount not less than $10.0 million and whole increments of $1.0 million, and ( IV ) each such offer shall remain outstanding through the Specified Discount Prepayment Response Date. The Administrative Agent will promptly provide each relevant Lender with a copy of such Specified Discount Prepayment Notice and a form of the Specified Discount Prepayment Response to be completed and returned by each such Lender to the Administrative Agent (or its delegate) by no later than 5:00 P.M., New York time, on the third Business Day after the date of delivery of such notice to the relevant Lenders (or such later date designated by the Administrative Agent and approved by the Borrower) (the “ Specified Discount Prepayment Response Date ”).

(2) Each relevant Lender receiving such offer shall notify the Administrative Agent (or its delegate) by the Specified Discount Prepayment Response Date whether or not it agrees to accept a prepayment of any of its relevant then outstanding Term Loans at the Specified Discount and, if so (such accepting Lender, a “ Discount Prepayment Accepting Lender ”), the amount of such Lender’s Outstanding Amount and Tranches of Term Loans to be prepaid at such offered discount. Each acceptance of a Discounted Term Loan Prepayment by a Discount Prepayment Accepting Lender shall be irrevocable. Any Lender whose Specified Discount Prepayment Response is not received by the Administrative Agent by the Specified Discount Prepayment Response Date shall be deemed to have declined to accept such Borrower Offer of Specified Discount Prepayment.

(3) If there is at least one Discount Prepayment Accepting Lender, the Borrower will make prepayment of outstanding Term Loans pursuant to this Subsection 4.4(h)(ii) to each Discount Prepayment Accepting Lender in accordance with the respective Outstanding Amount and Tranches of Term Loans specified in such Lender’s Specified Discount Prepayment Response given pursuant to the foregoing clause (2); provided that, if the aggregate Outstanding Amount of Term Loans accepted

 

-90-


for prepayment by all Discount Prepayment Accepting Lenders exceeds the Specified Discount Prepayment Amount, such prepayment shall be made pro rata among the Discount Prepayment Accepting Lenders in accordance with the respective Outstanding Amounts accepted to be prepaid by each such Discount Prepayment Accepting Lender and the Administrative Agent (in consultation with the Borrower and subject to rounding requirements of the Administrative Agent made in its reasonable discretion) will calculate such proration (the “ Specified Discount Proration ”). The Administrative Agent shall promptly, and in any case within three Business Days following the Specified Discount Prepayment Response Date, notify ( I ) the Borrower of the respective Lenders’ responses to such offer, the Discounted Prepayment Effective Date and the aggregate Outstanding Amount of the Discounted Term Loan Prepayment and the Tranches to be prepaid, ( II ) each Lender of the Discounted Prepayment Effective Date, and the aggregate Outstanding Amount and the Tranches of all Term Loans to be prepaid at the Specified Discount on such date, and ( III ) each Discount Prepayment Accepting Lender of the Specified Discount Proration, if any, and confirmation of the Outstanding Amount, Tranche and Type of Term Loans of such Lender to be prepaid at the Specified Discount on such date. Each determination by the Administrative Agent of the amounts stated in the foregoing notices to the Borrower and Lenders shall be conclusive and binding for all purposes absent manifest error. The payment amount specified in such notice to the Borrower shall be due and payable by the Borrower on the Discounted Prepayment Effective Date in accordance with Subsection 4.4(h)(vi) below (subject to Subsection 4.4(h)(x) below).

(iii) Borrower Solicitation of Discount Range Prepayment Offers.

(1) The Borrower may from time to time solicit Discount Range Prepayment Offers by providing the Administrative Agent with three Business Day’s (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion) notice in the form of a Discount Range Prepayment Notice; provided that ( I ) any such solicitation shall be extended, at the sole discretion of the Borrower, to each Lender or to each Lender with respect to any Tranche on an individual Tranche basis, ( II ) any such notice shall specify the maximum aggregate Outstanding Amount of the relevant Term Loans that the Borrower is willing to prepay at a discount (the “ Discount Range Prepayment Amount ”), the Tranches of Term Loans subject to such offer and the maximum and minimum percentage discounts to par (the “ Discount Range ”) of the Outstanding Amount of such Term Loans willing to be prepaid by the Borrower, ( III ) the Discount Range Prepayment Amount shall be in an aggregate amount not less than $10.0 million and whole increments of $1.0 million, and ( IV ) each such solicitation by the Borrower shall remain outstanding through the Discount Range Prepayment Response Date. The Administrative Agent will promptly provide each relevant Lender with a copy of such Discount Range Prepayment Notice and a form of the Discount Range Prepayment Offer to be submitted by a responding relevant Lender to the Administrative Agent (or its delegate) by no later than 5:00 P.M., New York time, on the third Business Day after the date of delivery of such notice to the relevant Lenders (or such later date as may be designated by the Administrative Agent and approved by the Borrower) (the “ Discount Range Prepayment Response Date ”). Each relevant Lender’s Discount Range Prepayment Offer shall be irrevocable and shall specify a discount to par within the

 

-91-


Discount Range (the “ Submitted Discount ”) at which such Lender is willing to allow prepayment of any or all of its then outstanding Term Loans and the maximum aggregate Outstanding Amount and Tranches of such Term Loans such Lender is willing to have prepaid at the Submitted Discount (the “ Submitted Amount ”). Any Lender whose Discount Range Prepayment Offer is not received by the Administrative Agent by the Discount Range Prepayment Response Date shall be deemed to have declined to accept a Discounted Term Loan Prepayment of any of its Term Loans at any discount to their par value within the Discount Range.

(2) The Administrative Agent shall review all Discount Range Prepayment Offers received by it by the Discount Range Prepayment Response Date and will determine (in consultation with the Borrower and subject to rounding requirements of the Administrative Agent made in its reasonable discretion) the Applicable Discount and Term Loans to be prepaid at such Applicable Discount in accordance with this Subsection 4.4(h)(iii) . The Borrower agrees to accept on the Discount Range Prepayment Response Date all Discount Range Prepayment Offers received by Administrative Agent by the Discount Range Prepayment Response Date, in the order from the Submitted Discount that is the largest discount to par to the Submitted Discount that is the smallest discount to par, up to and including the Submitted Discount that is the smallest discount to par within the Discount Range (such Submitted Discount that is the smallest discount to par being referred to as the “ Applicable Discount ”) which yields a Discounted Term Loan Prepayment in an aggregate Outstanding Amount equal to the lesser of ( I ) the Discount Range Prepayment Amount and ( II ) the sum of all Submitted Amounts. Each Lender that has submitted a Discount Range Prepayment Offer to accept prepayment at a discount to par that is larger than or equal to the Applicable Discount shall be deemed to have irrevocably consented to prepayment of Term Loans equal to its Submitted Amount (subject to any required proration pursuant to the following Subsection 4.4(h)(iii)(3) ) at the Applicable Discount (each such Lender, a “ Participating Lender ”).

(3) If there is at least one Participating Lender, the Borrower will prepay the respective outstanding Term Loans of each Participating Lender in the aggregate Outstanding Amount and of the Tranches specified in such Lender’s Discount Range Prepayment Offer at the Applicable Discount; provided , that if the Submitted Amount by all Participating Lenders offered at a discount to par greater than the Applicable Discount exceeds the Discount Range Prepayment Amount, prepayment of the Outstanding Amount of the relevant Term Loans for those Participating Lenders whose Submitted Discount is a discount to par greater than or equal to the Applicable Discount (the “ Identified Participating Lenders ”) shall be made pro rata among the Identified Participating Lenders in accordance with the Submitted Amount of each such Identified Participating Lender and the Administrative Agent (in consultation with the Borrower and subject to rounding requirements of the Administrative Agent made in its reasonable discretion) will calculate such proration (the “ Discount Range Proration ”). The Administrative Agent shall promptly, and in any case within three Business Days following the Discount Range Prepayment Response Date, notify ( w ) the Borrower of the respective Lenders’ responses to such solicitation, the Discounted Prepayment Effective Date, the Applicable Discount, and the aggregate Outstanding Amount of the Discounted Term Loan Prepayment and the Tranches to be prepaid, ( x ) each Lender of the

 

-92-


Discounted Prepayment Effective Date, the Applicable Discount, and the aggregate Outstanding Amount and Tranches of all Term Loans to be prepaid at the Applicable Discount on such date, ( y ) each Participating Lender of the aggregate Outstanding Amount and Tranches of such Lender to be prepaid at the Applicable Discount on such date, and ( z ) if applicable, each Identified Participating Lender of the Discount Range Proration. Each determination by the Administrative Agent of the amounts stated in the foregoing notices to the Borrower and Lenders shall be conclusive and binding for all purposes absent manifest error. The payment amount specified in such notice to the Borrower shall be due and payable by such Borrower on the Discounted Prepayment Effective Date in accordance with Subsection 4.4(h)(vi) below (subject to Subsection 4.4(h)(x) below).

(iv) Borrower Solicitation of Discounted Prepayment Offers.

(1) The Borrower may from time to time solicit Solicited Discounted Prepayment Offers by providing the Administrative Agent with one Business Day’s (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion) notice in the form of a Solicited Discounted Prepayment Notice; provided , that ( I ) any such solicitation shall be extended, at the sole discretion of the Borrower, to each Lender or to each Lender with respect to any Tranche on an individual Tranche basis, ( II ) any such notice shall specify the maximum aggregate Outstanding Amount of the Term Loans and the Tranches of Term Loans the Borrower is willing to prepay at a discount (the “ Solicited Discounted Prepayment Amount ”), ( III ) the Solicited Discounted Prepayment Amount shall be in an aggregate amount not less than $10.0 million and whole increments of $1.0 million, and ( IV ) each such solicitation by the Borrower shall remain outstanding through the Solicited Discounted Prepayment Response Date. The Administrative Agent will promptly provide each relevant Lender with a copy of such Solicited Discounted Prepayment Notice and a form of the Solicited Discounted Prepayment Offer to be submitted by a responding Lender to the Administrative Agent (or its delegate) by no later than 5:00 P.M., New York time on the third Business Day after the date of delivery of such notice to the relevant Lenders (or such later date as may be designated by the Administrative Agent and approved by Borrower) (the “ Solicited Discounted Prepayment Response Date ”). Each Lender’s Solicited Discounted Prepayment Offer shall ( x ) be irrevocable, ( y ) remain outstanding until the Acceptance Date, and ( z ) specify both a discount to par (the “ Offered Discount ”) at which such Lender is willing to allow prepayment of its then outstanding Term Loans and the maximum aggregate Outstanding Amount and Tranches of such Term Loans (the “ Offered Amount ”) such Lender is willing to have prepaid at the Offered Discount. Any Lender whose Solicited Discounted Prepayment Offer is not received by the Administrative Agent by the Solicited Discounted Prepayment Response Date shall be deemed to have declined prepayment of any of its Term Loans at any discount to their par value.

(2) The Administrative Agent shall promptly provide the Borrower with a copy of all Solicited Discounted Prepayment Offers received by it by the Solicited Discounted Prepayment Response Date. The Borrower shall review all such Solicited Discounted Prepayment Offers and select, at its sole discretion, the smallest of the

 

-93-


Offered Discounts specified by the relevant responding Lenders in the Solicited Discounted Prepayment Offers that the Borrower is willing to accept (the “ Acceptable Discount ”), if any. If the Borrower elects to accept any Offered Discount as the Acceptable Discount, then as soon as practicable after the determination of the Acceptable Discount, but in no event later than by the third Business Day after the date of receipt by the Borrower from the Administrative Agent of a copy of all Solicited Discounted Prepayment Offers pursuant to the first sentence of this clause (2) (the “ Acceptance Date ”), the Borrower shall submit an Acceptance and Prepayment Notice to the Administrative Agent setting forth the Acceptable Discount. If the Administrative Agent shall fail to receive an Acceptance and Prepayment Notice from the Borrower by the Acceptance Date, the Borrower shall be deemed to have rejected all Solicited Discounted Prepayment Offers.

(3) Based upon the Acceptable Discount and the Solicited Discounted Prepayment Offers received by the Administrative Agent by the Solicited Discounted Prepayment Response Date, within three Business Days after receipt of an Acceptance and Prepayment Notice (the “ Discounted Prepayment Determination Date ”), the Administrative Agent will determine (in consultation with the Borrower and subject to rounding requirements of the Administrative Agent made in its reasonable discretion) the aggregate Outstanding Amount and the Tranches of Term Loans (the “ Acceptable Prepayment Amount ”) to be prepaid by the Borrower at the Acceptable Discount in accordance with this Subsection 4.4(h)(iv) . If the Borrower elects to accept any Acceptable Discount, then the Borrower agrees to accept all Solicited Discounted Prepayment Offers received by the Administrative Agent by the Solicited Discounted Prepayment Response Date, in the order from largest Offered Discount to smallest Offered Discount, up to and including the Acceptable Discount. Each Lender that has submitted a Solicited Discounted Prepayment Offer to accept prepayment at an Offered Discount that is greater than or equal to the Acceptable Discount shall be deemed to have irrevocably consented to prepayment of Term Loans equal to its Offered Amount (subject to any required proration pursuant to the following sentence) at the Acceptable Discount (each such Lender, a “ Qualifying Lender ”). The Borrower will prepay outstanding Term Loans pursuant to this Subsection 4.4(h)(iv) to each Qualifying Lender in the aggregate Outstanding Amount and of the Tranches specified in such Lender’s Solicited Discounted Prepayment Offer at the Acceptable Discount; provided , that if the aggregate Offered Amount by all Qualifying Lenders whose Offered Discount is greater than or equal to the Acceptable Discount exceeds the Solicited Discounted Prepayment Amount, prepayment of the Outstanding Amount of the Term Loans for those Qualifying Lenders whose Offered Discount is greater than or equal to the Acceptable Discount (the “ Identified Qualifying Lenders ”) shall be made pro rata among the Identified Qualifying Lenders in accordance with the Offered Amount of each such Identified Qualifying Lender and the Administrative Agent (in consultation with the Borrower and subject to rounding requirements of the Administrative Agent made in its reasonable discretion) will calculate such proration (the “ Solicited Discount Proration ”). On or prior to the Discounted Prepayment Determination Date, the Administrative Agent shall promptly notify ( w ) the Borrower of the Discounted Prepayment Effective Date and Acceptable Prepayment Amount comprising the Discounted Term Loan Prepayment and the Tranches to be prepaid, ( x ) each Lender of the Discounted Prepayment Effective Date,

 

-94-


the Acceptable Discount, and the Acceptable Prepayment Amount of all Term Loans and the Tranches to be prepaid at the Applicable Discount on such date, ( y ) each Qualifying Lender of the aggregate Outstanding Amount and the Tranches of such Lender to be prepaid at the Acceptable Discount on such date, and ( z ) if applicable, each Identified Qualifying Lender of the Solicited Discount Proration. Each determination by the Administrative Agent of the amounts stated in the foregoing notices to the Borrower and Lenders shall be conclusive and binding for all purposes absent manifest error. The payment amount specified in such notice to the Borrower shall be due and payable by the Borrower on the Discounted Prepayment Effective Date in accordance with Subsection 4.4(h)(vi) below (subject to Subsection 4.4(h)(x) below).

(v) Expenses . In connection with any Discounted Term Loan Prepayment, the Borrower and the Lenders acknowledge and agree that the Administrative Agent may require as a condition to any Discounted Term Loan Prepayment, the payment of reasonable out-of-pocket costs and expenses from the Borrower in connection therewith.

(vi) Payment . If any Term Loan is prepaid in accordance with Subsections 4.4(h)(ii) through (iv)  above, the Borrower shall prepay such Term Loans on the Discounted Prepayment Effective Date. The Borrower shall make such prepayment to the Administrative Agent, for the account of the Discount Prepayment Accepting Lenders, Participating Lenders, or Qualifying Lenders, as applicable, at the Administrative Agent’s Office in immediately available funds not later than 11:00 A.M. (New York time) on the Discounted Prepayment Effective Date and all such prepayments shall be applied to the remaining principal installments of the Term Loans in inverse order of maturity. The Term Loans so prepaid shall be accompanied by all accrued and unpaid interest on the par principal amount so prepaid up to, but not including, the Discounted Prepayment Effective Date. Each prepayment of the outstanding Term Loans pursuant to this Subsection 4.4(h) shall be paid to the Discount Prepayment Accepting Lenders, Participating Lenders, or Qualifying Lenders, as applicable. The aggregate Outstanding Amount of the Tranches of the Term Loans outstanding shall be deemed reduced by the full par value of the aggregate Outstanding Amount of the Tranches of Term Loans prepaid on the Discounted Prepayment Effective Date in any Discounted Term Loan Prepayment. The Lenders hereby agree that, in connection with a prepayment of Term Loans pursuant to this Subsection 4.4(h) and notwithstanding anything to the contrary contained in this Agreement, ( i ) interest in respect of the Term Loans may be made on a non- pro rata basis among the Lenders holding such Term Loans to reflect the payment of accrued interest to certain Lenders as provided in this Subsection 4.4(h)(vi) and ( ii ) all subsequent prepayments and repayments of the Term Loans (except as otherwise contemplated by this Agreement) shall be made on a pro rata basis among the respective Lenders based upon the then outstanding principal amounts of the Term Loans then held by the respective Lenders after giving effect to any prepayment pursuant to this Subsection 4.4(h) as if made at par. It is also understood and agreed that prepayments pursuant to this Subsection 4.4(h) shall not be subject to Subsection 4.4(a) , or, for the avoidance of doubt, Subsection 11.7(a) or the pro rata allocation requirements of Subsection 4.8(a) .

 

-95-


(vii) Other Procedures . To the extent not expressly provided for herein, each Discounted Term Loan Prepayment shall be consummated pursuant to procedures consistent with the provisions in this Subsection 4.4(h) , established by the Administrative Agent acting in its reasonable discretion and as reasonably agreed by the Borrower.

(viii) Notice . Notwithstanding anything in any Loan Document to the contrary, for purposes of this Subsection 4.4(h) , each notice or other communication required to be delivered or otherwise provided to the Administrative Agent (or its delegate) shall be deemed to have been given upon the Administrative Agent’s (or its delegate’s) actual receipt during normal business hours of such notice or communication; provided that any notice or communication actually received outside of normal business hours shall be deemed to have been given as of the opening of business on the next Business Day.

(ix) Actions of Administrative Agent . Each of the Borrower and the Lenders acknowledges and agrees that Administrative Agent may perform any and all of its duties under this Subsection 4.4(h) by itself or through any Affiliate of the Administrative Agent and expressly consents to any such delegation of duties by the Administrative Agent to such Affiliate and the performance of such delegated duties by such Affiliate. The exculpatory provisions in this Agreement shall apply to each Affiliate of the Administrative Agent and its respective activities in connection with any Discounted Term Loan Prepayment provided for in this Subsection 4.4(h) as well as to activities of the Administrative Agent in connection with any Discounted Term Loan Prepayment provided for in this Subsection 4.4(h) .

(x) Revocation . The Borrower shall have the right, by written notice to the Administrative Agent, to revoke in full (but not in part) its offer to make a Discounted Term Loan Prepayment and rescind the applicable Specified Discount Prepayment Notice, Discount Range Prepayment Notice or Solicited Discounted Prepayment Notice therefor at its discretion at any time on or prior to the applicable Specified Discount Prepayment Response Date (and if such offer is so revoked, any failure by the Borrower to make any prepayment to a Lender pursuant to this Subsection 4.4(h) shall not constitute a Default or Event of Default under Subsection 9.1 or otherwise).

(xi) No Obligation . This Subsection 4.4(h) shall not ( i ) require the Borrower to undertake any prepayment pursuant to this Subsection 4.4(h) or ( ii ) limit or restrict the Borrower from making voluntary prepayments of the Term Loans in accordance with the other provisions of this Agreement.

4.5 Administrative Agent’s Fee; Other Fees . (a) The Borrower agrees to pay to the Administrative Agent the fees set forth in the eighth paragraph under the heading “Term Loan Facilities Secured Facilities Fees” of the Fee Letter (as though this Agreement constituted the “Term Loan Facilities” referred to therein).

(b) If on or prior to the twelve-month anniversary of the Restatement Effective Date the Borrower makes an optional prepayment of the Initial Term Loans in an amount equal to, or with the Net Cash Proceeds received by the Borrower or any Restricted Subsidiary from,

 

-96-


its incurrence of new Indebtedness under first lien secured bank term loan financing in a Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the ratable account of each Initial Term Lender, a prepayment premium of 1.0% of the aggregate principal amount of Initial Term Loans being prepaid. If, on or prior to the twelve-month anniversary of the Restatement Effective Date, any Lender is replaced pursuant to Subsection 11.1(g) in connection with any amendment of this Agreement (including in connection with any refinancing transaction permitted under Subsection 11.6(g) to replace the Initial Term Loans) that results in a Repricing Transaction, such Lender (and not any Person who replaces such Lender pursuant to Subsection 2.8(e) or 11.1(g) ) shall receive a fee equal to 1.0% of the principal amount of the Initial Term Loans of such Lender assigned to a replacement Lender pursuant to Subsection 2.8(e) or 11.1(g) .

4.6 Computation of Interest and Fees . (a) Interest (other than interest based on the Prime Rate) shall be calculated on the basis of a 360-day year for the actual days elapsed; and interest based on the Prime Rate shall be calculated on the basis of a 365-day year (or 366-day year, as the case may be) for the actual days elapsed. The Administrative Agent shall as soon as practicable notify the Borrower and the affected Lenders of each determination of an Adjusted LIBOR Rate. Any change in the interest rate on a Term Loan resulting from a change in the Alternate Base Rate or the Statutory Reserves shall become effective as of the opening of business on the day on which such change becomes effective. The Administrative Agent shall as soon as practicable notify the Borrower and the affected Lenders of the effective date and the amount of each such change in interest rate.

(b) Each determination of an interest rate by the Administrative Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the absence of manifest error. The Administrative Agent shall, at the request of the Borrower or any Lender, deliver to the Borrower or such Lender a statement showing in reasonable detail the calculations used by the Administrative Agent in determining any interest rate pursuant to Subsection 4.1 .

4.7 Inability to Determine Interest Rate . If prior to the first day of any Interest Period, the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Adjusted LIBOR Rate with respect to any Eurodollar Loan for such Interest Period (the “ Affected Eurodollar Rate ”), the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the Lenders as soon as practicable thereafter. If such notice is given ( a ) any Eurodollar Loans the rate of interest applicable to which is based on the Affected Eurodollar Rate requested to be made on the first day of such Interest Period shall be made as ABR Loans and ( b ) any Term Loans that were to have been converted on the first day of such Interest Period to or continued as Eurodollar Loans the rate of interest applicable to which is based upon the Affected Eurodollar Rate shall be converted to or continued as ABR Loans. Until such notice has been withdrawn by the Administrative Agent, no further Eurodollar Loans the rate of interest applicable to which is based upon the Affected Eurodollar Rate shall be made or continued as such, nor shall the Borrower have the right to convert ABR Loans to Eurodollar Loans, the rate of interest applicable to which is based upon the Affected Eurodollar Rate.

 

-97-


4.8 Pro Rata Treatment and Payments . (a) Except as expressly otherwise provided herein, each payment (including each prepayment, but excluding payments made pursuant to Subsection 2.6 , 2.7 , 2.8 , 2.9 , 4.5(b) , 4.9 , 4.10 , 4.11 , 4.12 , 4.13(d) , 11.1(g ) or 11.6 ) by the Borrower on account of principal of and interest on any Term Loans of a given Tranche (other than ( x ) any payments pursuant to Subsection 4.4(b) to the extent declined by any Lender in accordance with Subsection 4.4(d) and ( y ) any payments pursuant to Subsection 4.4(h ) which shall be allocated as set forth in Subsection 4.4(h )) shall be allocated by the Administrative Agent pro rata according to the respective outstanding principal amounts of such Term Loans then held by the respective Lenders; provided that a Lender may, at its option, and if agreed by the Borrower, exchange such Lender’s portion of a Term Loan to be prepaid for Rollover Indebtedness in lieu of such Lender’s pro rata portion of such prepayment, pursuant to the last sentence in Subsection 4.4(c). All payments (including prepayments) to be made by the Borrower hereunder, whether on account of principal, interest, fees or otherwise, shall be made without set-off or counterclaim and shall be made on or prior to the time expressly required hereunder or under such other Loan Document for such payment (or, if no such time is expressly required, prior to 2:00 P.M., New York City time), on the due date thereof to the Administrative Agent for the account of the Lenders holding the relevant Term Loans, the Lenders, the Administrative Agent, or the Other Representatives, as the case may be, at the Administrative Agent’s office specified in Subsection 11.2 , in Dollars in immediately available funds. Payments received by the Administrative Agent after such time shall be deemed to have been received on the next Business Day. The Administrative Agent shall distribute such payments to such Lenders or Other Representatives, as the case may be, if any such payment is received prior to 2:00 P.M., New York City time, on a Business Day, in like funds as received prior to the end of such Business Day and otherwise the Administrative Agent shall distribute such payment to such Lenders or Other Representatives, as the case may be, on the next succeeding Business Day. If any payment hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day, the maturity of such payment shall be extended to the next succeeding Business Day, and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension. If any payment on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity of such payment shall be extended to the next succeeding Business Day (and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension) unless the result of such extension would be to extend such payment into another calendar month, in which event such payment shall be made on the immediately preceding Business Day. This Subsection 4.8(a) may be amended in accordance with Subsection 11.1(d) to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new Tranches added pursuant to Subsections 2.6 , 2.8 and 2.9 , as applicable.

(b) Unless the Administrative Agent shall have been notified in writing by any Lender prior to a borrowing that such Lender will not make the amount that would constitute its share of such borrowing available to the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available to the Administrative Agent, and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower in respect of such borrowing a corresponding amount. If such amount is not made available to the Administrative Agent by the required time on the Borrowing Date therefor, such Lender shall pay to the Administrative Agent on demand, such amount with interest thereon at a rate equal to the daily average Federal Funds Effective Rate for the period until such Lender makes such

 

-98-


amount immediately available to the Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with respect to any amounts owing under this Subsection 4.8(b) shall be conclusive in the absence of manifest error. If such Lender’s share of such borrowing is not made available to the Administrative Agent by such Lender within three Business Days of such Borrowing Date, the Administrative Agent shall notify the Borrower of the failure of such Lender to make such amount available to the Administrative Agent and the Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum applicable to ABR Loans hereunder on demand from the Borrower; provided , that the foregoing notice and recovery provisions shall not apply to the funding of Initial Term Loans on the Restatement Effective Date.

4.9 Illegality . Notwithstanding any other provision herein, if the adoption of or any change in any Requirement of Law or in the interpretation or application thereof in each case occurring after the Restatement Effective Date shall make it unlawful for any Lender to make or maintain any Eurodollar Loans as contemplated by this Agreement (“ Affected Loans ”): ( a ) such Lender shall promptly give written notice of such circumstances to the Borrower and the Administrative Agent (which notice shall be withdrawn whenever such circumstances no longer exist); ( b ) the commitment of such Lender hereunder to make Affected Loans, continue Affected Loans as such and convert an ABR Loan to an Affected Loan shall forthwith be cancelled and, until such time as it shall no longer be unlawful for such Lender to make or maintain such Affected Loans, such Lender shall then have a commitment only to make an ABR Loan when an Affected Loan is requested; and ( c ) such Lender’s Loans then outstanding as Affected Loans, if any, shall be converted automatically to ABR Loans on the respective last days of the then current Interest Periods with respect to such Affected Loans or within such earlier period as required by law. If any such conversion or prepayment of an Affected Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Subsection 4.12 .

4.10 Requirements of Law . (a) If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof applicable to any Lender, or compliance by any Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority, in each case made subsequent to the Restatement Effective Date (or, if later, the date on which such Lender becomes a Lender):

(1) shall subject such Lender to any Tax of any kind whatsoever with respect to any Eurodollar Loans made or maintained by it or its obligation to make or maintain Eurodollar Loans, or change the basis of taxation of payments to such Lender in respect thereof, in each case, except for Non-Excluded Taxes, Taxes imposed by FATCA and Taxes measured by or imposed upon net income, or franchise Taxes, or Taxes measured by or imposed upon overall capital or net worth, or branch Taxes (in the case of such capital, net worth or branch Taxes, imposed in lieu of such net income Tax), of such Lender or its applicable lending office, branch, or any affiliate thereof;

(2) shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender which is not otherwise included in the determination of the LIBOR Rate hereunder; or

 

-99-


(3) shall impose on such Lender any other condition (excluding any Tax of any kind whatsoever);

and the result of any of the foregoing is to increase the cost to such Lender, by an amount which such Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar Loans or to reduce any amount receivable hereunder in respect thereof, then, in any such case, upon notice to the Borrower from such Lender, through the Administrative Agent in accordance herewith, the Borrower shall promptly pay such Lender, upon its demand, any additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable with respect to such Eurodollar Loans; provided that, in any such case, the Borrower may elect to convert the Eurodollar Loans made by such Lender hereunder to ABR Loans by giving the Administrative Agent at least one Business Day’s notice of such election (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion), in which case the Borrower shall promptly pay to such Lender, upon demand, without duplication, amounts theretofore required to be paid to such Lender pursuant to this Subsection 4.10(a) and such amounts, if any, as may be required pursuant to Subsection 4.12 . If any Lender becomes entitled to claim any additional amounts pursuant to this Subsection 4.10(a) , it shall provide prompt notice thereof to the Borrower, through the Administrative Agent, certifying ( x ) that one of the events described in this clause (a) has occurred and describing in reasonable detail the nature of such event, ( y ) as to the increased cost or reduced amount resulting from such event and ( z ) as to the additional amount demanded by such Lender and a reasonably detailed explanation of the calculation thereof. Such a certificate as to any additional amounts payable pursuant to this Subsection 4.10(a) submitted by such Lender, through the Administrative Agent, to the Borrower shall be conclusive in the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Term Loans and all other amounts payable hereunder.

(b) If any Lender shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or in the interpretation or application thereof or compliance by such Lender or any corporation controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority, in each case, made subsequent to the Restatement Effective Date, does or shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of such Lender’s obligations hereunder to a level below that which such Lender or such corporation could have achieved but for such change or compliance (taking into consideration such Lender’s or such corporation’s policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time, within ten Business Days after submission by such Lender to the Borrower (through the Administrative Agent) of a written request therefor certifying ( x ) that one of the events described in this clause (b) has occurred and describing in reasonable detail the nature of such event, ( y ) as to the reduction of the rate of return on capital resulting from such event and ( z ) as to the additional amount or amounts demanded by such Lender or corporation and a reasonably detailed explanation of the calculation thereof, the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or corporation for such reduction. Such a certificate as to any

 

-100-


additional amounts payable pursuant to this Subsection 4.10(b) submitted by such Lender, through the Administrative Agent, to the Borrower shall be conclusive in the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Term Loans and all other amounts payable hereunder.

(c) Notwithstanding anything herein to the contrary, ( x ) the Dodd Frank Wall Street Reform and Consumer Protection Act, and all requests, rules, regulations, guidelines and directives promulgated thereunder or issued in connection therewith and ( y ) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall, in each case, be deemed to have been enacted, adopted or issued, as applicable, subsequent to the Restatement Effective Date for all purposes herein.

4.11 Taxes . (a) Except as provided below in this Subsection 4.11 or as required by law, all payments made by the Borrower or the Agents under this Agreement and any Notes shall be made free and clear of, and without deduction or withholding for or on account of any Taxes; provided that if any Non-Excluded Taxes are required to be withheld from any amounts payable by the Borrower to any Agent or any Lender hereunder or under any Notes, the amounts so payable by the Borrower shall be increased to the extent necessary to yield to such Agent or such Lender (after payment of all Non-Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement; provided , however , that the Borrower shall be entitled to deduct and withhold, and the Borrower shall not be required to indemnify for any Non-Excluded Taxes, and any such amounts payable by the Borrower to or for the account of any Agent or Lender, shall not be increased ( x ) if such Agent or Lender fails to comply with the requirements of clause (b), (c) or (d) of this Subsection 4.11 or with the requirements of Subsection 4.13 , or ( y ) with respect to any Non-Excluded Taxes imposed in connection with the payment of any fees paid under this Agreement unless such Non-Excluded Taxes are imposed as a result of a Change in Law, or ( z ) with respect to any Non-Excluded Taxes imposed by the United States or any state or political subdivision thereof, unless such Non-Excluded Taxes are imposed as a result of a change in treaty, law or regulation that occurred after such Agent became an Agent hereunder or such Lender became a Lender hereunder (or, if such Agent or Lender is a non-U.S. intermediary or flow-through entity for U.S. federal income tax purposes, after the relevant beneficiary or member of such Agent or Lender became such a beneficiary or member, if later) (any such change, at such time, a “ Change in Law ”). Whenever any Non-Excluded Taxes are payable by the Borrower, as promptly as possible thereafter the Borrower shall send to the Administrative Agent for its own account or for the account of the respective Lender or Agent, as the case may be, a certified copy of an original official receipt received by the Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes when due to the appropriate Governmental Authority in accordance with applicable law or fails to remit to the Administrative Agent the required receipts or other required documentary evidence, the Borrower shall indemnify the Administrative Agent, the Lenders and the Agents for any incremental Taxes, interest or penalties that may become payable by the Administrative Agent or any Lender as a result of any such failure. The agreements in this Subsection 4.11 shall survive the termination of this Agreement and the payment of the Term Loans and all other amounts payable hereunder.

 

-101-


(b) Each Agent and each Lender that is not a United States Person shall:

(i) (1) on or before the date of any payment by the Borrower under this Agreement or any Notes to, or for the account of, such Agent or Lender, deliver to the Borrower and the Administrative Agent ( A ) two duly completed copies of Internal Revenue Service Form W-8BEN (certifying that it is a resident of the applicable country within the meaning of the income tax treaty between the United States and that country) or Form W-8ECI, or successor applicable form, as the case may be, in each case certifying that it is entitled to receive all payments under this Agreement and any Notes without deduction or withholding of any United States federal income taxes, and ( B ) such other forms, documentation or certifications, as the case may be, certifying that it is entitled to an exemption from United States backup withholding tax with respect to payments under this Agreement and any Notes;

(2) deliver to the Borrower and the Administrative Agent two further copies of any such form or certification provided in Subsection 4.11(b)(i)(1) on or before the date that any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form or certificate previously delivered by it to the Borrower;

(3) obtain such extensions of time for filing and completing such forms or certifications as may reasonably be requested by the Borrower or the Administrative Agent; and

(4) deliver, to the extent legally entitled to do so, upon reasonable request by the Borrower, to the Borrower and the Administrative Agent such other forms as may be reasonably required in order to establish the legal entitlement of such Lender to an exemption from withholding with respect to payments under this Agreement and any Notes, provided that in determining the reasonableness of a request under this clause (4) such Lender shall be entitled to consider the cost (to the extent unreimbursed by any Loan Party) which would be imposed on such Lender of complying with such request; or

(ii) in the case of any such Lender that is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code and is claiming the so-called “portfolio interest exemption”;

(1) represent to the Borrower and the Administrative Agent that it is not ( A ) a bank within the meaning of Section 881(c)(3)(A) of the Code, ( B ) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or ( C ) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code;

(2) deliver to the Borrower on or before the date of any payment by the Borrower with a copy to the Administrative Agent, ( A ) two certificates substantially in the form of Exhibit D hereto (any such certificate a “ U.S. Tax Compliance Certificate ”), ( B ) two accurate and complete original signed copies of

 

-102-


Internal Revenue Service Form W-8BEN, or successor applicable form, certifying to such Lender’s legal entitlement at the date of such form to an exemption from U.S. withholding tax under the provisions of Section 871(h) or Section 881(c) of the Code with respect to payments to be made under this Agreement and any Notes and ( C ) such other forms, documentation or certifications, as the case may be certifying that it is entitled to an exemption from United States backup withholding tax with respect to payments under this Agreement and any Notes (and shall also deliver to the Borrower and the Administrative Agent two further copies of such form or certificate on or before the date it expires or becomes obsolete and after the occurrence of any event requiring a change in the most recently provided form or certificate and, if necessary, obtain any extensions of time reasonably requested by the Borrower or the Administrative Agent for filing and completing such forms or certificates); and

(3) deliver, to the extent legally entitled to do so, upon reasonable request by the Borrower, to the Borrower and the Administrative Agent such other forms as may be reasonably required in order to establish the legal entitlement of such Lender to an exemption from withholding with respect to payments under this Agreement and any Notes; provided that in determining the reasonableness of a request under this clause (3) such Lender shall be entitled to consider the cost (to the extent unreimbursed by the Borrower) which would be imposed on such Lender of complying with such request; or

(iii) in the case of any such Agent or Lender that is a non-U.S. intermediary or flow-through entity for U.S. federal income tax purposes,

(1) on or before the date of any payment by the Borrower under this Agreement or any Notes to, or for the account of, such Agent or Lender, deliver to the Borrower and the Administrative Agent two accurate and complete original signed copies of Internal Revenue Service Form W-8IMY and, if any beneficiary or member of such Lender is claiming the so-called “portfolio interest exemption”, ( I ) represent to the Borrower and the Administrative Agent that such Lender is not ( A ) a bank within the meaning of Section 881(c)(3)(A) of the Code, ( B ) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or ( C ) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and ( II ) also deliver to the Borrower and the Administrative Agent two U.S. Tax Compliance Certificates certifying to such Lender’s legal entitlement at the date of such certificate to an exemption from U.S. withholding tax under the provisions of Section 881(c) of the Code with respect to payments to be made under this Agreement and any Notes; and

(A) with respect to each beneficiary or member of such Agent or Lender that is not claiming the so-called “portfolio interest exemption”, also deliver to the Borrower and the Administrative Agent ( I ) two duly completed copies of Internal Revenue Service Form W-8BEN (certifying that such beneficiary or member is a resident of the applicable country within the meaning of the income tax treaty between the United States and that country), Form W-8ECI or Form W-9, or successor applicable form, as the case may be, in each case so that each such beneficiary or member is entitled to receive all payments

 

-103-


under this Agreement and any Notes without deduction or withholding of any United States federal income taxes and ( II ) such other forms, documentation or certifications, as the case may be, certifying that each such beneficiary or member is entitled to an exemption from United States backup withholding tax with respect to all payments under this Agreement and any Notes; and

(B) with respect to each beneficiary or member of such Lender that is claiming the so-called “portfolio interest exemption”, ( I ) represent to the Borrower and the Administrative Agent that such beneficiary or member is not ( 1 ) a bank within the meaning of Section 881(c)(3)(A) of the Code, ( 2 ) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or ( 3 ) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and ( II ) also deliver to the Borrower and the Administrative Agent two U.S. Tax Compliance Certificates from each beneficiary or member and two accurate and complete original signed copies of Internal Revenue Service Form W-8BEN, or successor applicable form, certifying to such beneficiary’s or member’s legal entitlement at the date of such certificate to an exemption from U.S. withholding tax under the provisions of Section 871(h) or Section 881(c) of the Code with respect to payments to be made under this Agreement and any Notes, and ( III ) also delivers to Borrower and the Administrative Agent such other forms, documentation or certifications, as the case may be, certifying that it is entitled to an exemption from United States backup withholding tax with respect to payments under this Agreement and any Notes;

(2) deliver to the Borrower and the Administrative Agent two further copies of any such forms, certificates or certifications referred to above on or before the date any such form, certificate or certification expires or becomes obsolete, or any beneficiary or member changes, and after the occurrence of any event requiring a change in the most recently provided form, certificate or certification and obtain such extensions of time reasonably requested by the Borrower or the Administrative Agent for filing and completing such forms, certificates or certifications; and

(3) deliver, to the extent legally entitled to do so, upon reasonable request by the Borrower, to the Borrower and the Administrative Agent such other forms as may be reasonably required in order to establish the legal entitlement of such Agent or Lender (or beneficiary or member) to an exemption from withholding with respect to payments under this Agreement and any Notes; provided , that in determining the reasonableness of a request under this clause (3) such Agent or Lender shall be entitled to consider the cost (to the extent unreimbursed by the Borrower) which would be imposed on such Agent or Lender (or beneficiary or member) of complying with such request;

unless in any such case there has been a Change in Law which renders all such forms inapplicable or which would prevent such Agent or such Lender (or such beneficiary or member) from duly completing and delivering any such form with respect to it and such Agent or such Lender so advises the Borrower and the Administrative Agent.

 

-104-


(c) Each Lender and each Agent, in each case that is a United States Person shall on or before the date of any payment by the Borrower under this Agreement or any Notes to such Lender or Agent, deliver to the Borrower and the Administrative Agent two duly completed copies of Internal Revenue Service Form W-9, or successor form, certifying that such Lender or Agent is a United States Person and that such Lender or Agent is entitled to complete exemption from United States backup withholding tax.

(d) Notwithstanding the foregoing, on or before the date of any payment by the Borrower under this Agreement or any Notes to the Administrative Agent, the Administrative Agent shall:

(i) deliver to the Borrower ( A ) two duly completed copies of Internal Revenue Service Form W-8ECI, or successor applicable form, with respect to any amounts payable to the Administrative Agent for its own account, ( B ) two duly completed copies of Internal Revenue Service Form W-8IMY, or successor applicable form, with respect to any amounts payable to the Administrative Agent for the account of others, certifying that it is a “U.S. branch” and that the payments it receives for the account of others are not effectively connected with the conduct of its trade or business in the United States and that it is using such form as evidence of its agreement with the Borrower to be treated as a U.S. person with respect to such payments (and the Borrower and the Administrative Agent agree to so treat the Administrative Agent as a U.S. person with respect to such payments as contemplated by U.S. Treasury Regulation § 1.1441-1(b)(2)(iv)) or ( C ) such other forms or certifications as may be sufficient under applicable law to establish that the Administrative Agent is entitled to receive any payment by the Borrower under this Agreement or any Notes (whether for its own account or for the account of others) without deduction or withholding of any United States federal income taxes;

(ii) deliver to the Borrower two further copies of any such form or certification provided in Subsection 4.11(d)(i) on or before the date that any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form or certificate previously delivered by it to the Borrower; and

(iii) obtain such extensions of time for filing and completing such forms or certifications as may reasonably be requested by the Borrower or the Administrative Agent.

(e) If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA, such Lender shall deliver to the Administrative Agent and the Borrower, at the time or times prescribed by law and at such time or times reasonably requested by the Administrative Agent or the Borrower, such documentation prescribed by applicable law and such additional documentation reasonably requested by the Administrative Agent or the Borrower as may be necessary for the Administrative Agent and the Borrower to comply with their respective obligations (including any applicable reporting requirements) under FATCA, to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.

 

-105-


4.12 Indemnity . The Borrower agrees to indemnify each Lender in respect of Extensions of Credit made, or requested to be made, to the Borrower, and to hold each such Lender harmless from any loss or expense which such Lender may sustain or incur (other than through such Lender’s gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final and nonappealable decision) as a consequence of ( a ) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, ( b ) default by the Borrower in making any prepayment or conversion of Eurodollar Loans after the Borrower has given a notice thereof in accordance with the provisions of this Agreement or ( c ) the making of a payment or prepayment of Eurodollar Loans or the conversion of Eurodollar Loans on a day which is not the last day of an Interest Period with respect thereto. Such indemnification may include an amount equal to the excess, if any, of ( i ) the amount of interest which would have accrued on the amount so prepaid, or converted, or not so borrowed, converted or continued, for the period from the date of such prepayment or conversion or of such failure to borrow, convert or continue to the last day of the applicable Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of interest for such Eurodollar Loans provided for herein (excluding, however , the Applicable Margin included therein, if any) over ( ii ) the amount of interest (as reasonably determined by such Lender) which would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank Eurodollar market. If any Lender becomes entitled to claim any amounts under the indemnity contained in this Subsection 4.12 , it shall provide prompt notice thereof to the Borrower, through the Administrative Agent, certifying ( x ) that one of the events described in clause (a), (b) or (c) has occurred and describing in reasonable detail the nature of such event, ( y ) as to the loss or expense sustained or incurred by such Lender as a consequence thereof and ( z ) as to the amount for which such Lender seeks indemnification hereunder and a reasonably detailed explanation of the calculation thereof. Such a certificate as to any indemnification pursuant to this Subsection 4.12 submitted by such Lender, through the Administrative Agent, to the Borrower shall be conclusive in the absence of manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within five Business Days after receipt thereof. This covenant shall survive the termination of this Agreement and the payment of the Term Loans and all other amounts payable hereunder.

4.13 Certain Rules Relating to the Payment of Additional Amounts . (a) Upon the request, and at the expense of the Borrower, each Lender to which the Borrower is required to pay any additional amount pursuant to Subsection 4.10 or 4.11 , and any Participant in respect of whose participation such payment is required, shall reasonably afford the Borrower the opportunity to contest, and reasonably cooperate with the Borrower in contesting, the imposition of any Non-Excluded Tax giving rise to such payment; provided that ( i ) such Lender shall not be required to afford the Borrower the opportunity to so contest unless the Borrower shall have confirmed in writing to such Lender its obligation to pay such amounts pursuant to this Agreement; and ( ii ) the Borrower shall reimburse such Lender for its reasonable attorneys’ and accountants’ fees and disbursements incurred in so cooperating with the Borrower in contesting

 

-106-


the imposition of such Non-Excluded Tax; provided , however , that notwithstanding the foregoing no Lender shall be required to afford the Borrower the opportunity to contest, or cooperate with the Borrower in contesting, the imposition of any Non-Excluded Taxes, if such Lender in its sole discretion in good faith determines that to do so would have an adverse effect on it.

(b) If a Lender changes its applicable lending office (other than ( i ) pursuant to clause (c) below or ( ii ) after an Event of Default under Subsection 9.1(a) or (f)  has occurred and is continuing) and the effect of such change, as of the date of such change, would be to cause the Borrower to become obligated to pay any additional amount under Subsection 4.10 or 4.11 , the Borrower shall not be obligated to pay such additional amount.

(c) If a condition or an event occurs which would, or would upon the passage of time or giving of notice, result in the payment of any additional amount to any Lender by the Borrower pursuant to Subsection 4.10 or 4.11 or result in Affected Loans or commitments to make Affected Loans being automatically converted to ABR Loans or commitments to make ABR Loans, as the case may be, pursuant to Subsection 4.9 , such Lender shall promptly notify the Borrower and the Administrative Agent and shall take such steps as may reasonably be available to it to mitigate the effects of such condition or event (which shall include efforts to rebook the Term Loans held by such Lender at another lending office, or through another branch or an affiliate, of such Lender); provided that such Lender shall not be required to take any step that, in its reasonable judgment, would be materially disadvantageous to its business or operations or would require it to incur additional costs (unless the Borrower agrees to reimburse such Lender for the reasonable incremental out-of-pocket costs thereof).

(d) If the Borrower shall become obligated to pay additional amounts pursuant to Subsection 4.10 or 4.11 and any affected Lender shall not have promptly taken steps necessary to avoid the need for payments under Subsection 4.10 or 4.11 or if Affected Loans or commitments to make Affected Loans are automatically converted to ABR Loans or commitments to make ABR Loans, as the case may be, under Subsection 4.9 and any affected Lender shall not have promptly taken steps necessary to avoid the need for such conversion under Subsection 4.9 , the Borrower shall have the right, for so long as such obligation remains, ( i ) with the assistance of the Administrative Agent to seek one or more substitute Lenders reasonably satisfactory to the Administrative Agent and the Borrower to purchase the affected Term Loan, in whole or in part, at an aggregate price no less than such Term Loan’s principal amount plus accrued interest, and assume the affected obligations under this Agreement, or ( ii ) so long as no Event of Default under Subsection 9.1(a) or (f)  then exists or will exist immediately after giving effect to the respective prepayment, upon notice to the Administrative Agent to prepay the affected Term Loan, in whole or in part, subject to Subsection 4.12 , without premium or penalty. In the case of the substitution of a Lender, then, the Borrower, the Administrative Agent, the affected Lender, and any substitute Lender shall execute and deliver an appropriately completed Assignment and Acceptance pursuant to Subsection 11.6(b) to effect the assignment of rights to, and the assumption of obligations by, the substitute Lender; provided , that any fees required to be paid by Subsection 11.6(b) in connection with such assignment shall be paid by the Borrower or the substitute Lender. In the case of a prepayment of an affected Term Loan, the amount specified in the notice shall be due and payable on the date specified therein, together with any accrued interest to such date on the amount prepaid. In the

 

-107-


case of each of the substitution of a Lender and of the prepayment of an affected Term Loan, the Borrower shall first pay the affected Lender any additional amounts owing under Subsections 4.10 and 4.11 (as well as any commitment fees and other amounts then due and owing to such Lender, including any amounts under this Subsection 4.13 ) prior to such substitution or prepayment. In the case of the substitution of a Lender pursuant to this Subsection 4.13(d) , if the Lender being replaced does not execute and deliver to the Administrative Agent a duly completed Assignment and Acceptance and/or any other documentation necessary to reflect such replacement by the later of ( a ) the date on which the assignee Lender executes and delivers such Assignment and Acceptance and/or such other documentation; and ( b ) the date as of which all obligations of the Borrower owing to such replaced Lender relating to the Term Loans and participations so assigned shall be paid in full by the assignee Lender and/or the Borrower to such Lender being replaced, then the Lender being replaced shall be deemed to have executed and delivered such Assignment and Acceptance and/or such other documentation as of such date and the Borrower shall be entitled (but not obligated) to execute and deliver such Assignment and Acceptance and/or such other documentation on behalf of such Lender.

(e) If any Agent or any Lender receives a refund directly attributable to Taxes for which the Borrower has made additional payments pursuant to Subsection 4.10(a) or 4.11(a) , such Agent or such Lender, as the case may be, shall promptly pay such refund (together with any interest with respect thereto received from the relevant taxing authority, but net of any reasonable cost incurred in connection therewith) to the Borrower; provided , however , that the Borrower agrees promptly to return such refund (together with any interest with respect thereto due to the relevant taxing authority) (free of all Non-Excluded Taxes) to such Agent or the applicable Lender, as the case may be, upon receipt of a notice that such refund is required to be repaid to the relevant taxing authority.

(f) The obligations of any Agent, Lender or Participant under this Subsection 4.13 shall survive the termination of this Agreement and the payment of the Term Loans and all amounts payable hereunder.

SECTION 5

Representations and Warranties

To induce the Administrative Agent and each Lender to enter into this Agreement on the Restatement Effective Date and to make any Extension of Credit on each other date thereafter on which an Extension of Credit is made, the Borrower with respect to itself and its Restricted Subsidiaries, hereby represents and warrants, on the Restatement Effective Date, in each case after giving effect to the Transactions, and on every other date thereafter on which an Extension of Credit is made (solely to the extent required to be true and correct for such Extension of Credit pursuant to Subsection 6.2 ), to the Administrative Agent and each Lender that:

5.1 Financial Condition . (a) ( i ) The audited consolidated balance sheets of the Borrower as of December 31, 2015, December 31, 2014 and December 31, 2013 and the related consolidated related statements of operations, comprehensive income (loss) and cash flows for the Fiscal Years ended December 31, 2015, December 31, 2014 and December 31, 2013,

 

-108-


reported on by and accompanied by unqualified reports from Ernst & Young LLP; ( ii ) the unaudited consolidated balance sheets of the Borrower and the related statements of operations, comprehensive income (loss) and cash flows for the fiscal quarter ended September 30, 2016, June 30, 2016 and March 31, 2016, (iii) audited consolidated balance sheets of AmSurg and its Subsidiaries as of December 31, 2015, December 31, 2014 and December 31, 2013 and the related consolidated related statements of earnings and cash flows for the Fiscal Years ended December 31, 2015, December 31, 2014 and December 31, 2013, reported on by and accompanied by unqualified reports from Deloitte  & Touche LLP and (iv) the unaudited consolidated balance sheets of AmSurg and its Subsidiaries and the related statements of earnings and cash flows for the fiscal quarter ended September 30, 2016, June 30, 2016 and March 31, 2016. The financial statements referred to in clauses (i) and (ii) above present fairly, in all material respects, the consolidated financial condition as at such dates, and the consolidated statements of operations and consolidated cash flows for the respective Fiscal Years then ended, of Envision Healthcare Holdings, Inc. The financial statements referred to in clauses (iii) and (iv) above present fairly, in all material respects, the consolidated financial condition as at such dates, and the consolidated statements of operations and consolidated cash flows for the respective Fiscal Years then ended, of AmSurg. All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP consistently applied throughout the periods covered thereby (except as approved by a Responsible Officer, and disclosed in any such schedules and notes).

(b) As of the Restatement Effective Date, except as set forth in the financial statements referred to in Subsection 5.1(a) , there are no liabilities of any Loan Party of any kind, whether accrued, contingent, absolute, determined, determinable or otherwise, which could reasonably be expected to result in a Material Adverse Effect.

(c) The pro forma balance sheet and statements of operations of the Borrower, copies of which have heretofore been furnished to each Lender, are the balance sheet and statements of operations of the Borrower as of September 30, 2016, prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of operations), , which shall be prepared in all material respects in compliance with Regulation S-X.

5.2 No Change; Solvent . Since the Restatement Effective Date, except as and to the extent disclosed on Schedule 5.2 , there has been no development or event relating to or affecting any Loan Party which has had or would be reasonably expected to have a Material Adverse Effect (after giving effect to ( i ) the consummation of the Transactions, ( ii ) the making of the Extensions of Credit to be made on the Restatement Effective Date and the application of the proceeds thereof as contemplated hereby, and ( iii ) the payment of actual or estimated fees, expenses, financing costs and tax payments related to the Transactions contemplated hereby). As of the Restatement Effective Date, after giving effect to the consummation of the transactions described in preceding clauses (i) through (iii) of the preceding sentence, the Borrower, together with its Subsidiaries on a consolidated basis, is Solvent.

5.3 Corporate Existence; Compliance with Law . Each of the Loan Parties ( a ) except as set forth on Schedule 5.3 , is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation (to the extent applicable in the

 

-109-


relevant jurisdiction) except (other than with respect to the Borrower or any Material Subsidiary), to the extent that the failure to be in good standing would not reasonably be expected to have a Material Adverse Effect, ( b ) has the legal right to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged, except to the extent that the failure to have such legal right would not be reasonably expected to have a Material Adverse Effect, ( c ) is duly qualified as a foreign corporation or limited liability company and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification, other than in such jurisdictions where the failure to be so qualified and in good standing would not be reasonably expected to have a Material Adverse Effect and ( d ) is in compliance with all Requirements of Law, except to the extent that the failure to comply therewith would not, in the aggregate, be reasonably expected to have a Material Adverse Effect.

5.4 Corporate Power; Authorization; Enforceable Obligations . Each Loan Party has the corporate or other organizational power and authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party and, in the case of the Borrower, to obtain Extensions of Credit hereunder, and each such Loan Party has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the Extensions of Credit to it, if any, on the terms and conditions of this Agreement and any Notes. No consent or authorization of, filing with, notice to or other similar act by or in respect of, any Governmental Authority or any other Person is required to be obtained or made by or on behalf of any Loan Party in connection with the execution, delivery, performance, validity or enforceability of the Loan Documents to which it is a party or, in the case of the Borrower, with the Extensions of Credit to it, if any, hereunder, except for ( a ) consents, authorizations, notices and filings described in Schedule 5.4 , all of which have been obtained or made prior to the Restatement Effective Date, ( b ) filings to perfect the Liens created by the Security Documents, ( c ) filings pursuant to the Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. ), in respect of Accounts of the Borrower and its Restricted Subsidiaries the Obligor in respect of which is the United States of America or any department, agency or instrumentality thereof, ( d ) establishment of assignment of Restricted Government Accounts by or pursuant to the order of a court of competent jurisdiction and ( e ) consents, authorizations, notices and filings which the failure to obtain or make would not reasonably be expected to have a Material Adverse Effect. This Agreement has been duly executed and delivered by the Borrower, and each other Loan Document to which any Loan Party is a party will be duly executed and delivered on behalf of such Loan Party. This Agreement constitutes a legal, valid and binding obligation of the Borrower and each other Loan Document to which any Loan Party is a party when executed and delivered will constitute a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, in each case except as enforceability may be limited by applicable domestic or foreign bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

5.5 No Legal Bar . The execution, delivery and performance of the Loan Documents by any of the Loan Parties, the Extensions of Credit hereunder and the use of the proceeds thereof ( a ) will not violate any Requirement of Law or Contractual Obligation of such Loan Party in any respect that would reasonably be expected to have a Material Adverse Effect,

 

-110-


( b ) will not result in, or require the creation or imposition of any Lien (other than Liens securing the Term Loan Facility Obligations) on any of its properties or revenues pursuant to any such Requirement of Law or Contractual Obligation and ( c ) will not violate any provision of the Organizational Documents of such Loan Party or any of the Restricted Subsidiaries, except (other than with respect to the Borrower or any Material Subsidiary) as would not reasonably be expected to have Material Adverse Effect.

5.6 No Material Litigation . No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower, threatened by or against the Borrower or any of its Restricted Subsidiaries or against any of their respective properties or revenues, ( a ) except as described on Schedule 5.6 , which is so pending or threatened at any time on or prior to the Restatement Effective Date and relates to any of the Loan Documents or any of the transactions contemplated hereby or thereby or ( b ) which would be reasonably expected to have a Material Adverse Effect.

5.7 No Default . Neither the Borrower nor any of its Restricted Subsidiaries is in default under or with respect to any of its Contractual Obligations in any respect which would be reasonably expected to have a Material Adverse Effect. Since the Restatement Effective Date, no Default or Event of Default has occurred and is continuing.

5.8 Ownership of Property; Liens . Each of the Borrower and its Restricted Subsidiaries has good title in fee simple to, or a valid leasehold interest in, all its material real property, and good title to, or a valid leasehold interest in, all its other material property, except those for which the failure to have such good title or have such leasehold interest in would not be reasonably expected to have a Material Adverse Effect, and none of such real or other property is subject to any Lien, except for Permitted Liens. Schedule 5.8 sets forth all Mortgaged Fee Properties as of the Restatement Effective Date.

5.9 Intellectual Property . The Borrower and each of its Restricted Subsidiaries owns, or has the legal right to use, all United States and foreign patents, patent applications, trademarks, trademark applications, trade names, copyrights, technology, know-how and processes necessary for each of them to conduct its business as currently conducted (the “ Intellectual Property ”) except for those the failure to own or have such legal right to use would not be reasonably expected to have a Material Adverse Effect. Except as provided on Schedule 5.9 , no claim has been asserted and is pending by any Person against the Borrower or any of its Restricted Subsidiaries challenging or questioning the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does the Borrower know of any such claim, and, to the knowledge of the Borrower, the use of such Intellectual Property by the Borrower and its Restricted Subsidiaries does not infringe on the rights of any Person, except for such claims and infringements which in the aggregate, would not be reasonably expected to have a Material Adverse Effect.

5.10 Taxes . To the knowledge of the Borrower, (1) the Borrower and each of its Restricted Subsidiaries has filed or caused to be filed all material tax returns which are required to be filed by it and has paid ( a ) all Taxes shown to be due and payable on such returns and ( b ) all Taxes shown to be due and payable on any assessments of which it has received notice made against it or any of its property (including the Mortgaged Fee Properties) and all

 

-111-


other Taxes imposed on it or any of its property by any Governmental Authority and (2) no Tax Liens have been filed (except for Liens for Taxes not yet due and payable), and no claim is being asserted in writing, with respect to any such Taxes (in each case other than in respect of any such ( i ) Taxes with respect to which the failure to pay, in the aggregate, would not have a Material Adverse Effect or ( ii ) Taxes the amount or validity of which are currently being contested in good faith by appropriate proceedings diligently conducted and with respect to which reserves in conformity with GAAP have been provided on the books of the Borrower or its Restricted Subsidiaries, as the case may be).

5.11 Federal Regulations . No part of the proceeds of any Extensions of Credit will be used for any purpose which violates the provisions of the Regulations of the Board, including without limitation, Regulation T, Regulation U or Regulation X of the Board. If requested by any Lender or the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U-1, referred to in said Regulation U.

5.12 ERISA . (a) During the five year period prior to each date as of which this representation is made, or deemed made, with respect to any Plan, none of the following events or conditions, either individually or in the aggregate, has resulted or is reasonably likely to result in a Material Adverse Effect: ( i ) a Reportable Event; ( ii ) a failure to satisfy the minimum funding standard (within the meaning of Section 412 of the Code or Section 302 of ERISA); ( iii ) any noncompliance with the applicable provisions of ERISA or the Code; ( iv ) a termination of a Single Employer Plan (other than a standard termination pursuant to Section 4041(b) of ERISA); ( v ) a Lien on the property of the Borrower or its Restricted Subsidiaries in favor of the PBGC or a Plan; ( vi ) a complete or partial withdrawal from any Multiemployer Plan by the Borrower or any Commonly Controlled Entity; ( vii ) the Reorganization or Insolvency of any Multiemployer Plan; or ( viii ) any transactions that resulted or could reasonably be expected to result in any liability to the Borrower or any Commonly Controlled Entity under Section 4069 of ERISA or Section 4212(c) of ERISA.

(b) With respect to any Foreign Plan, none of the following events or conditions exists and is continuing that, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect: ( i ) substantial non-compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders; ( ii ) failure to be maintained, where required, in good standing with applicable regulatory authorities; ( iii ) any obligation of the Borrower or its Restricted Subsidiaries in connection with the termination or partial termination of, or withdrawal from, any Foreign Plan; ( iv ) any Lien on the property of the Borrower or its Restricted Subsidiaries in favor of a Governmental Authority as a result of any action or inaction regarding a Foreign Plan; ( v ) for each Foreign Plan which is a funded or insured plan, failure to be funded or insured on an ongoing basis to the extent required by applicable non-U.S. law (using actuarial methods and assumptions which are consistent with the valuations last filed with the applicable Governmental Authorities); ( vi ) any facts that, to the best knowledge of the Borrower or any of its Restricted Subsidiaries, exist that would reasonably be expected to give rise to a dispute and any pending or threatened disputes that, to the best knowledge of the Borrower or any of its Restricted Subsidiaries, would reasonably be expected to result in a material liability to the Borrower or any of its Restricted Subsidiaries concerning the assets of any Foreign Plan (other than individual claims for the payment of benefits); and ( vii ) failure to make all contributions in a timely manner to the extent required by applicable non-U.S. law.

 

-112-


5.13 Collateral . the Guarantee and Collateral Agreement and the Mortgages (if any) are effective to create (to the extent described therein) in favor of the Collateral Agent for the benefit of the Secured Parties, a legal, valid and enforceable security interest in or liens on the Collateral described therein, except as to enforcement, as may be limited by applicable domestic or foreign bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing (and with respect to Restricted Government Accounts, only after assignment thereof has been established by or pursuant to the order of a court of competent jurisdiction). When ( a ) the actions specified in Schedule 3 to the Guarantee and Collateral Agreement have been duly taken, ( b ) all applicable Instruments, Chattel Paper and Documents (each as described therein) a security interest in which is perfected by possession have been delivered to, and/or are in the continued possession of, the Collateral Agent, ( c ) all Deposit Accounts and Pledged Stock (each as defined in the Guarantee and Collateral Agreement) a security interest in which is required to be or is perfected by “control” (as described in the Uniform Commercial Code as in effect in each applicable jurisdiction (in the case of Deposit Accounts) and the State of New York (in the case of Pledged Stock) from time to time) are under the “control” of the Collateral Agent or the Administrative Agent, as agent for the Collateral Agent and as directed by the Collateral Agent, and ( d ) the Mortgages (if any) have been duly recorded in the proper recorders’ offices or appropriate public records and the mortgage recording fees and taxes in respect thereof, if any, are paid and compliance is otherwise had with the formal requirements of state or local law applicable to the recording of real property mortgages generally, the security interests and liens granted pursuant thereto shall constitute (to the extent described therein and with respect to the Mortgages, only as relates to the real property security interests and liens granted pursuant thereto) a perfected security interest in (to the extent intended to be created thereby and required to be perfected under the Loan Documents), all right, title and interest of each pledgor or mortgagor (as applicable) party thereto in the Collateral described therein (excluding Commercial Tort Claims, as defined in the Guarantee and Collateral Agreement, other than such Commercial Tort Claims set forth on Schedule 6 thereto (if any)) with respect to such pledgor or mortgagor (as applicable). Notwithstanding any other provision of this Agreement, capitalized terms that are used in this Subsection 5.13 and not defined in this Agreement are so used as defined in the applicable Security Document.

5.14 Investment Company Act; Other Regulations . The Borrower is not an “investment company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act. The Borrower is not subject to regulation under any federal or state statute or regulation (other than Regulation X of the Board) which limits its ability to incur Indebtedness as contemplated hereby.

5.15 Subsidiaries . Schedule 5.15 sets forth all the Subsidiaries of the Borrower at the Restatement Effective Date (after giving pro forma effect to the Transactions), the jurisdiction of their organization and the direct or indirect ownership interest of the Borrower therein.

 

-113-


5.16 Purpose of Loans The proceeds of Term Loans shall be used by the Borrower ( i ) in the case of the Initial Term Loans, to finance ( x ) the Transactions and to pay fees, premiums and expenses incurred in connection with the Transactions and ( y ) the working capital, capital expenditures, business requirements, acquisitions and other general corporate purposes of the Borrower and its Restricted Subsidiaries and ( ii ) in the case of all other Term Loans, to finance the working capital, capital expenditures, business requirements and other general corporate purposes of the Borrower and its Restricted Subsidiaries.

5.17 Environmental Matters . Other than as disclosed on Schedule 5.17 or exceptions to any of the following that would not, individually or in the aggregate, reasonably be expected to give rise to a Material Adverse Effect:

(a) The Borrower and its Restricted Subsidiaries: ( i ) are, and within the period of all applicable statutes of limitation have been, in compliance with all applicable Environmental Laws; ( ii ) hold all Environmental Permits (each of which is in full force and effect) required for any of their current operations or for any property owned, leased, or otherwise operated by any of them and reasonably expect to timely obtain without material expense all such Environmental Permits required for planned operations; ( iii ) are, and within the period of all applicable statutes of limitation have been, in compliance with all of their Environmental Permits; and ( iv ) believe they will be able to maintain compliance with Environmental Laws, including any reasonably foreseeable future requirements thereto.

(b) Materials of Environmental Concern have not been transported, disposed of, emitted, discharged, or otherwise released or threatened to be released, to or at any real property presently or formerly owned, leased or operated by the Borrower or any of its Restricted Subsidiaries or at any other location, which would reasonably be expected to ( i ) give rise to liability or other Environmental Costs of the Borrower or any of its Restricted Subsidiaries under any applicable Environmental Law, or ( ii ) interfere with the planned or continued operations of the Borrower and its Restricted Subsidiaries, or ( iii ) impair the fair saleable value of any real property owned by the Borrower or any of its Restricted Subsidiaries that is part of the Collateral.

(c) There is no judicial, administrative, or arbitral proceeding (including any notice of violation or alleged violation) under any Environmental Law to which the Borrower or any of its Restricted Subsidiaries is, or to the knowledge of the Borrower or any of its Restricted Subsidiaries is reasonably likely to be, named as a party that is pending or, to the knowledge of the Borrower or any of its Restricted Subsidiaries, threatened.

(d) Neither the Borrower nor any of its Restricted Subsidiaries has received any written request for information, or been notified that it is a potentially responsible party, under the federal Comprehensive Environmental Response, Compensation, and Liability Act or any similar Environmental Law, or received any other written request for information from any Governmental Authority with respect to any Materials of Environmental Concern.

(e) Neither the Borrower nor any of its Restricted Subsidiaries has entered into or agreed to any consent decree, order, or settlement or other agreement, nor is subject to any judgment, decree, or order or other agreement, in any judicial, administrative, arbitral, or other forum, relating to compliance with or liability under any Environmental Law.

 

-114-


5.18 No Material Misstatements . The written information (including the Confidential Information Memorandum), reports, financial statements, exhibits and schedules furnished by or on behalf of the Borrower to the Administrative Agent, the Other Representatives and the Lenders on or prior to the Restatement Effective Date in connection with the negotiation of any Loan Document or included therein or delivered pursuant thereto, taken as a whole, did not contain as of the Restatement Effective Date any material misstatement of fact and did not omit to state as of the Restatement Effective Date any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading in their presentation of the Borrower and its Restricted Subsidiaries taken as a whole. It is understood that ( a ) no representation or warranty is made concerning the forecasts, estimates, pro forma information, projections and statements as to anticipated future performance or conditions, and the assumptions on which they were based or concerning any information of a general economic nature or general information about Borrower’s and its Subsidiaries’ industry, contained in any such information, reports, financial statements, exhibits or schedules, except that, in the case of such forecasts, estimates, pro forma information, projections and statements, as of the date such forecasts, estimates, pro forma information, projections and statements were generated, ( i ) such forecasts, estimates, pro forma information, projections and statements were based on the good faith assumptions of the management of the Borrower and ( ii ) such assumptions were believed by such management to be reasonable and ( b ) such forecasts, estimates, pro forma information and statements, and the assumptions on which they were based, may or may not prove to be correct.

5.19 Labor Matters . There are no strikes pending or, to the knowledge of the Borrower, reasonably expected to be commenced against the Borrower or any of its Restricted Subsidiaries which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. The hours worked and payments made to employees of the Borrower and each of its Restricted Subsidiaries have not been in violation of any applicable laws, rules or regulations, except where such violations would not reasonably be expected to have a Material Adverse Effect.

5.20 Insurance . Schedule 5.20 sets forth a complete and correct listing of all insurance that is ( a ) maintained by the Loan Parties and ( b ) material to the business and operations of the Borrower and its Restricted Subsidiaries, in each case, taken as a whole as of the Restatement Effective Date, with the amounts insured (and any deductibles) set forth therein.

5.21 Anti-Terrorism . To the extent applicable, each of the Borrower and each Restricted Subsidiary is in compliance, in all material respects, with (i) the PATRIOT Act, (ii) the Trading with the Enemy Act, as amended and (iii) any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“ OFAC ”) and any other enabling legislation or executive order relating thereto. Neither the Borrower, or any Restricted Subsidiary nor, to the knowledge of the Borrower, any director, officer or employee of the Borrower or any Restricted Subsidiary, is the target of any U.S. sanctions administered by OFAC or a person on the list of “Specially Designated Nationals and Blocked Persons.” No proceeds of the Term Loans will knowingly be used for the purpose of funding or financing any activities or

 

-115-


business of or with any Person that at the time of such funding or financing is either the target of any U.S. sanctions administered by OFAC or a person on the list of “Specially Designated Nationals and Blocked Persons” or in any country or territory that is the target of any U.S. sanctions administered by OFAC. Except as would not reasonably be expected to have a Material Adverse Effect, each of the Borrower, each Restricted Subsidiary and to the knowledge of the Borrower, their respective officers and directors, are in compliance with Anti-Corruption Laws. No proceeds of the Loans or the Letters of Credit will knowingly be used by the Borrower or any Restricted Subsidiary in violation of any Anti-Corruption Law.

SECTION 6

Conditions Precedent

6.1 [Reserved] .

6.2 Conditions to Each Extension of Credit After the Restatement Effective Date . The agreement of each Lender to make any Extension of Credit requested to be made by it on any date after the Restatement Effective Date is subject to the satisfaction or waiver of the following conditions precedent:

(a) Representations and Warranties . Each of the representations and warranties made by any Loan Party pursuant to this Agreement or any other Loan Document (or in any amendment, modification or supplement hereto or thereto) to which it is a party, and each of the representations and warranties contained in any certificate furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any other Loan Document shall, except to the extent that they relate to a particular date, be true and correct in all material respects on and as of such date as if made on and as of such date.

(b) No Default . No Default or Event of Default shall have occurred and be continuing on such date or after giving effect to the Extensions of Credit requested to be made on such date.

Each Extension of Credit of Term Loans by the Borrower hereunder shall constitute a representation and warranty by the Borrower as of the date of such borrowing that the conditions contained in this Subsection 6.2 have been satisfied.

 

-116-


SECTION 7

Affirmative Covenants

The Borrower hereby agrees that, from and after the Restatement Effective Date until payment in full of the Term Loans and all other Term Loan Facility Obligations then due and owing to any Lender or Agent hereunder, the Borrower shall and (except in the case of delivery of financial information, reports and notices) shall cause each of its respective Restricted Subsidiaries to:

7.1 Financial Statements . Furnish to the Administrative Agent for delivery to each Lender (and the Administrative Agent agrees to make and so deliver such copies):

(a) as soon as available, but in any event not later than the fifth Business Day after the 90th day following the end of each Fiscal Year of the Borrower ending on or after the Restatement Effective Date, a copy of the consolidated balance sheet of the Borrower as at the end of such year and the related consolidated statements of operations, changes in common stockholders’ equity and cash flows for such year, setting forth, in each case, in comparative form the figures for and as of the end of the previous year, reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by Ernst & Young LLP or other independent certified public accountants of nationally recognized standing not unacceptable to the Administrative Agent in its reasonable judgment (it being agreed that the furnishing of the Borrower’s or any Parent Entity’s annual report on Form 10-K for such year, as filed with the United States Securities and Exchange Commission or any successor or analogous Governmental Authority, will satisfy the Borrower’s obligation under this Subsection 7.1(a) with respect to such year except with respect to the requirement that such financial statements be reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit);

(b) as soon as available, but in any event not later than the fifth Business Day after the 45th day following the end of each of the first three quarterly periods of each Fiscal Year of the Borrower, the unaudited consolidated balance sheet of the Borrower as at the end of such quarter and the related unaudited consolidated statements of operations and cash flows of the Borrower for such quarter and the portion of the Fiscal Year through the end of such quarter, setting forth, in each case, in comparative form the figures for and as of the corresponding periods of the previous year, certified by a Responsible Officer of the Borrower as being fairly stated in all material respects (subject to normal year-end audit and other adjustments) (it being agreed that the furnishing of the Borrower’s or any Parent Entity’s quarterly report on Form 10-Q for such quarter, as filed with the United States Securities and Exchange Commission or any successor or analogous Governmental Authority, will satisfy the Borrower’s obligations under this Subsection 7.1(b) with respect to such quarter);

(c) all such financial statements delivered pursuant to Subsection 7.1(a) or (b)  to (and, in the case of any financial statements delivered pursuant to Subsection 7.1(b) shall be certified by a Responsible Officer of the Borrower to) fairly present in all material respects the financial condition of the Borrower in conformity with GAAP and to be (and, in the case of any financial statements delivered pursuant to Subsection 7.1(b) shall be certified by a Responsible Officer of the Borrower as being) in reasonable detail and prepared in accordance with GAAP applied consistently throughout the periods reflected therein and with prior periods that began on or after the Restatement Effective Date (except as disclosed therein, and except, in the case of any financial statements delivered pursuant to Subsection 7.1(b) , for the absence of certain notes); and

(d) to the extent applicable, concurrently with any delivery of consolidated financial statements referred to in Subsections 7.1(a) and ( b ) above, related unaudited condensed consolidating financial statements and appropriate reconciliations reflecting the material adjustments necessary (as determined by the Borrower in good faith) to eliminate the accounts of Unrestricted Subsidiaries (if any) and, if applicable, any Parent Entity and its Subsidiaries (other than the Borrower and its Subsidiaries) from such consolidated financial statements.

 

-117-


7.2 Certificates; Other Information . Furnish to the Administrative Agent for delivery to each Lender (and the Administrative Agent agrees to make and so deliver such copies):

(a) [Reserved].

(b) concurrently with the delivery of the financial statements and reports referred to in Subsections 7.1(a) and (b) , a certificate signed by a Responsible Officer of the Borrower (a “ Compliance Certificate ”) ( i ) stating that, to the best of such Responsible Officer’s knowledge, the Borrower and its Restricted Subsidiaries during such period has observed or performed all of its covenants and other agreements, and satisfied every condition, contained in this Agreement or the other Loan Documents to which it is a party to be observed, performed or satisfied by it, and that such Responsible Officer has obtained no knowledge of any Default or Event of Default, except, in each case, as specified in such certificate and ( ii ) if ( A ) delivered with the financial statements required by Subsection 7.1(a) and ( B ) the Consolidated Net Leverage Ratio as of the last day of the immediately preceding Fiscal Year was greater than or equal to 5.75:1.00, set forth in reasonable detail the amount of (and the calculations required to establish the amount of) Excess Cash Flow for the respective Fiscal Year covered by such financial statements;

(c) [Reserved];

(d) within five Business Days after the same are filed, copies of all financial statements and periodic reports which the Borrower may file with the United States Securities and Exchange Commission or any successor or analogous Governmental Authority;

(e) within five Business Days after the same are filed, copies of all registration statements and any amendments and exhibits thereto, which the Borrower may file with the United States Securities and Exchange Commission or any successor or analogous Governmental Authority;

(f) promptly, such additional financial and other information as any Agent or Lender may from time to time reasonably request; and

(g) promptly upon reasonable request from the Administrative Agent calculations of Consolidated EBITDA and other Fixed GAAP Terms as reasonably requested by the Administrative Agent upon receipt of a written notice from the Borrower electing to change the Fixed GAAP Date, which calculations shall show the calculations of the respective Fixed GAAP Terms both before and after giving effect to the change in the Fixed GAAP Date and identify the material change(s) in GAAP giving rise to the change in such calculations.

Documents required to be delivered pursuant to Subsection 7.1 or 7.2 may at the Borrower’s option be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date ( i ) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s (or any Parent Entity’s) website on the Internet at the website address listed on Schedule 7.2 (or such other website address as the Borrower may specify by written notice to the Administrative Agent from time to time); or ( ii ) on which such documents are posted on the Borrower’s (or any Parent Entity’s) behalf on an Internet or intranet website to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent).

 

-118-


7.3 Payment of Obligations . Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all taxes except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings diligently conducted and reserves in conformity with GAAP with respect thereto have been provided on the books of the Borrower or any of its Restricted Subsidiaries, as the case may be, and except in each case to the extent that failure to do so, in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

7.4 Conduct of Business and Maintenance of Existence; Compliance with Contractual Obligations and Requirements of Law . Preserve, renew and keep in full force and effect its existence and take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of the business of the Borrower and its Restricted Subsidiaries, taken as a whole, except as otherwise permitted pursuant to Subsection 8.4 or 8.7 ; provided , that the Borrower and its Restricted Subsidiaries shall not be required to maintain any such rights, privileges or franchises and the Borrower’s Restricted Subsidiaries shall not be required to maintain such existence, if the failure to do so would not reasonably be expected to have a Material Adverse Effect; and comply with all Contractual Obligations and Requirements of Law except to the extent that failure to comply therewith, in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

7.5 Maintenance of Property; Insurance . (a) ( i ) Keep all property useful and necessary in the business of the Borrower and its Restricted Subsidiaries, taken as a whole, in good working order and condition, except where failure to do so would not reasonably be expected to have a Material Adverse Effect; ( ii ) maintain with financially sound and reputable insurance companies (or any Captive Insurance Subsidiary) insurance on, or self-insure, all property material to the business of the Borrower and its Restricted Subsidiaries, taken as a whole, in at least such amounts and against at least such risks (but including in any event public liability and business interruption) as are usually insured against in the same general area by companies engaged in the same or a similar business; ( iii ) furnish to the Administrative Agent, upon written request, information in reasonable detail as to the insurance carried; ( iv ) use commercially reasonable efforts to maintain property and liability policies that provide that in the event of any cancellation thereof during the term of the policy, either by the insured or by the insurance company, the insurance company shall provide to the secured party at least 30 days prior written notice thereof, or in the case of cancellation for non-payment of premium, ten days prior written notice thereof; ( v ) in the event of any material change in any of the property or liability policies referenced in the preceding clause (iv), use commercially reasonable efforts to provide the Administrative Agent with at least 30 days prior written notice thereof; and ( vi ) use commercially reasonable efforts to ensure that subject to the ABL/Term Loan Intercreditor Agreement, at all times the Collateral Agent for the benefit of the Secured Parties shall be named as an additional insured with respect to liability policies and the Collateral Agent for the benefit of the Secured Parties shall be named as loss payee with respect to the property insurance maintained by the Borrower and each Subsidiary Guarantor; provided , that unless an Event of Default shall have occurred and be continuing, ( A ) the Collateral Agent shall turn over to the Borrower any amounts received by it as loss payee under any property insurance maintained by

 

-119-


the Borrower and its Restricted Subsidiaries, ( B ) the Collateral Agent agrees that the Borrower and/or the applicable Subsidiary shall have the sole right to adjust or settle any claims under such insurance and ( C ) all proceeds from a Recovery Event shall be paid to the Borrower.

(b) With respect to each property of the Loan Parties subject to a Mortgage:

(i) If any portion of any such property is located in an area identified as a special flood hazard area by the Federal Emergency Management Agency or other applicable agency, such Loan Party shall maintain or cause to be maintained, flood insurance to the extent required by, and in compliance with, applicable law.

(ii) The applicable Loan Party promptly shall comply with and conform to ( i ) all provisions of each such insurance policy, and ( ii ) all requirements of the insurers applicable to such party or to such property or to the use, manner of use, occupancy, possession, operation, maintenance, alteration or repair of such property, except for such non-compliance or non-conformity as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The applicable Loan Party shall not use or permit the use of such property in any manner which would reasonably be expected to result in the cancellation of any insurance policy or would reasonably be expected to void coverage required to be maintained with respect to such property pursuant to clause (a) of this Subsection 7.5 .

(iii) If the Borrower is in default of its obligations to insure or deliver any such prepaid policy or policies, the result of which would reasonably be expected to have a Material Adverse Effect, then the Administrative Agent, at its option upon ten days’ written notice to the Borrower, may effect such insurance from year to year at rates substantially similar to the rate at which the Borrower or any Restricted Subsidiary had insured such property, and pay the premium or premiums therefor, and the Borrower shall pay to the Administrative Agent on demand such premium or premiums so paid by the Administrative Agent with interest from the time of payment at a rate per annum equal to 2.00%.

(iv) If such property, or any part thereof, shall be destroyed or damaged and the reasonably estimated cost thereof would exceed $10.0 million, the Borrower shall give prompt notice thereof to the Administrative Agent. All insurance proceeds paid or payable in connection with any damage or casualty to any property shall be applied in the manner specified in the proviso to Subsection 7.5(a) .

7.6 Inspection of Property; Books and Records; Discussions . (a) In the case of the Borrower, keep proper books of records in a manner to allow financial statements to be prepared in conformity with GAAP consistently applied in respect of all material financial transactions and matters involving the material assets and business of the Borrower and its Restricted Subsidiaries, taken as a whole; and permit representatives of the Administrative Agent to visit and inspect any of its properties and examine and, to the extent reasonable, make abstracts from any of its books and records and to discuss the business, operations, properties and financial and other condition of the Borrower and its Restricted Subsidiaries with officers of the Borrower and its Restricted Subsidiaries and with its independent certified public

 

-120-


accountants, in each case at any reasonable time, upon reasonable notice, and as often as may reasonably be desired; provided , that representatives of the Borrower may be present during any such visits, discussions and inspections.

(b) During the course of the above-described visits, inspections, examinations and discussions, representatives of the Administrative Agent and the Lenders may encounter individually identifiable healthcare information as defined under the Administrative Simplification (including privacy and security) regulations promulgated pursuant to the Health Insurance Portability and Accountability Act of 1996, as amended (collectively, “ HIPAA ”), or other confidential information relating to healthcare patients whether protected under HIPAA or otherwise (collectively, the “ Confidential Healthcare Information ”). The Borrower or any Restricted Subsidiary shall, consistent with HIPAA’s “minimum necessary” provisions, permit such disclosure of Confidential Healthcare Information to representatives of the Administrative Agent or the Lenders for their “healthcare operations” purposes only to the extent permissible under applicable laws, regulations or ordinances intended to protect the privacy rights of healthcare patients, including, without limitation, HIPAA and its “minimum necessary” provision. Unless otherwise required by law, the Administrative Agent, the Lenders and their respective representatives shall not require or perform any act that would cause the Borrower or any of its Subsidiaries to violate any laws, regulations or ordinances intended to protect the privacy rights of healthcare patients, including, without limitation, HIPAA.

7.7 Notices . Promptly give notice to the Administrative Agent and each Lender of:

(a) as soon as possible after a Responsible Officer of the Borrower knows thereof, the occurrence of any Default or Event of Default;

(b) as soon as possible after a Responsible Officer of the Borrower knows thereof, any default or event of default under any Contractual Obligation of the Borrower or any of its Restricted Subsidiaries, other than as previously disclosed in writing to the Lenders, which, if not cured, would reasonably be expected to have a Material Adverse Effect;

(c) as soon as possible after a Responsible Officer of the Borrower knows thereof, the occurrence of (i) any default or event of default under the Senior ABL Facility Agreement or the Senior Notes Indenture (or any agreement or indenture governing Refinancing Indebtedness in respect of the Senior Notes, in each case relating to Indebtedness in an aggregate principal amount equal to or greater than $150.0 million) or (ii) any payment default under any Additional Obligations Documents or under any agreement or document governing other Indebtedness, in each case relating to Indebtedness in an aggregate principal amount equal to or greater than $150.0 million;

(d) as soon as possible after a Responsible Officer of the Borrower knows thereof, any litigation, investigation or proceeding affecting the Borrower or any of its Restricted Subsidiaries that would reasonably be expected to have a Material Adverse Effect;

(e) the following events, as soon as possible and in any event within 30 days after a Responsible Officer of the Borrower knows thereof: ( i ) the occurrence or expected

 

-121-


occurrence of any Reportable Event (or similar event) with respect to any Single Employer Plan (or Foreign Plan), a failure to make any required contribution to a Single Employer Plan, Multiemployer Plan or Foreign Plan, the creation of any Lien on the property of the Borrower or its Restricted Subsidiaries in favor of the PBGC, a Plan or a Foreign Plan or any withdrawal from, or the full or partial termination, Reorganization or Insolvency of, any Multiemployer Plan or Foreign Plan; ( ii ) the institution of proceedings or the taking of any other formal action by the PBGC or the Borrower or any of its Restricted Subsidiaries or any Commonly Controlled Entity or any Multiemployer Plan which would reasonably be expected to result in the withdrawal from, or the termination, Reorganization or Insolvency of, any Single Employer Plan, Multiemployer Plan or Foreign Plan; provided , however , that no such notice will be required under clause (i) or (ii) above unless the event giving rise to such notice, when aggregated with all other such events under clause (i) or (ii) above, would be reasonably expected to result in a Material Adverse Effect; or ( iii ) the first occurrence after the Restatement Effective Date of an Underfunding under a Single Employer Plan or Foreign Plan that exceeds 10.0% of the value of the assets of such Single Employer Plan or Foreign Plan, in each case, determined as of the most recent annual valuation date of such Single Employer Plan or Foreign Plan on the basis of the actuarial assumptions used to determine the funding requirements of such Single Employer Plan or Foreign Plan as of such date;

(f) as soon as possible after a Responsible Officer of the Borrower knows thereof, ( i ) any release or discharge by the Borrower or any of its Restricted Subsidiaries of any Materials of Environmental Concern required to be reported under applicable Environmental Laws to any Governmental Authority, unless the Borrower reasonably determines that the total Environmental Costs arising out of such release or discharge would not reasonably be expected to have a Material Adverse Effect; ( ii ) any condition, circumstance, occurrence or event not previously disclosed in writing to the Administrative Agent that would reasonably be expected to result in liability or expense under applicable Environmental Laws, unless the Borrower reasonably determines that the total Environmental Costs arising out of such condition, circumstance, occurrence or event would not reasonably be expected to have a Material Adverse Effect, or would not reasonably be expected to result in the imposition of any lien or other material restriction on the title, ownership or transferability of any facilities and properties owned, leased or operated by the Borrower or any of its Restricted Subsidiaries that would reasonably be expected to result in a Material Adverse Effect; and ( iii ) any proposed action to be taken by the Borrower or any of its Restricted Subsidiaries that would reasonably be expected to subject the Borrower or any of its Restricted Subsidiaries to any material additional or different requirements or liabilities under Environmental Laws, unless the Borrower reasonably determines that the total Environmental Costs arising out of such proposed action would not reasonably be expected to have a Material Adverse Effect; and

(g) as soon as possible after a Responsible Officer of the Borrower knows thereof, any loss, damage, or destruction to a significant portion of the Term Loan Priority Collateral, whether or not covered by insurance.

Each notice pursuant to this Subsection 7.7 shall be accompanied by a statement of a Responsible Officer of the Borrower (and, if applicable, the relevant Commonly Controlled Entity or Restricted Subsidiary) setting forth details of the occurrence referred to therein and stating what action the Borrower (or, if applicable, the relevant Commonly Controlled Entity or Restricted Subsidiary) proposes to take with respect thereto.

 

-122-


7.8 Environmental Laws . (a) ( i ) Comply substantially with, and require substantial compliance by all tenants, subtenants, contractors, and invitees with, all applicable Environmental Laws; ( ii ) obtain, comply substantially with and maintain any and all Environmental Permits necessary for its operations as conducted and as planned; and ( iii ) require that all tenants, subtenants, contractors, and invitees obtain, comply substantially with and maintain any and all Environmental Permits necessary for their operations as conducted and as planned, with respect to any property leased or subleased from, or operated by the Borrower or its Restricted Subsidiaries. For purposes of this Subsection 7.8(a) , noncompliance shall not constitute a breach of this covenant; provided , that upon learning of any actual or suspected noncompliance, the Borrower and any such affected Restricted Subsidiary shall promptly undertake and diligently pursue reasonable efforts, if any, to achieve compliance; and provided , further , that in any case such noncompliance would not reasonably be expected to have a Material Adverse Effect.

(b) Promptly comply, in all material respects, with all orders and directives of all Governmental Authorities regarding Environmental Laws, other than such orders or directives ( i ) as to which the failure to comply would not reasonably be expected to result in a Material Adverse Effect or ( ii ) as to which: ( x ) appropriate reserves have been established in accordance with GAAP; ( y ) an appeal or other appropriate contest is or has been timely and properly taken and is being diligently pursued in good faith; and ( z ) if the effectiveness of such order or directive has not been stayed, the failure to comply with such order or directive during the pendency of such appeal or contest would not reasonably be expected to have a Material Adverse Effect.

7.9 After-Acquired Real Property and Fixtures; Subsidiaries . (a) With respect to any owned real property or fixtures thereon, in each case with a purchase price or a Fair Market Value at the time of acquisition of at least $100.0 million, in which any Loan Party acquires ownership rights at any time after the Restatement Effective Date (or owned by any Subsidiary that becomes a Loan Party after the Restatement Effective Date), promptly grant to the Collateral Agent for the benefit of the Secured Parties, a Lien of record on all such owned real property and fixtures pursuant to a Mortgage or otherwise, upon terms reasonably satisfactory in form and substance to the Collateral Agent and in accordance with any applicable requirements of any Governmental Authority (including any required appraisals of such property under FIRREA and flood determinations under Regulation H of the Board); provided , that ( i ) nothing in this Subsection 7.9 shall defer or impair the attachment or perfection of any security interest in any Collateral covered by any of the Security Documents which would attach or be perfected pursuant to the terms thereof without action by the Borrower, any of its Restricted Subsidiaries or any other Person; and ( ii ) no such Lien shall be required to be granted as contemplated by this Subsection 7.9 on any owned real property or fixtures the acquisition of which is, or is to be, within 180 days of such acquisition, financed or refinanced, in whole or in part through the incurrence of Indebtedness, until such Indebtedness is repaid in full (and not refinanced) or, as the case may be, the Borrower determines not to proceed with such financing or refinancing. In connection with any such grant to the Collateral Agent, for the benefit of the Secured Parties, of a Lien of record on any such real property pursuant to a Mortgage or

 

-123-


otherwise in accordance with this Subsection 7.9 , the Borrower or such Restricted Subsidiary shall deliver or cause to be delivered to the Collateral Agent corresponding UCC fixture filings and any surveys, appraisals (including any required appraisals of such property under FIRREA or in connection with flood determinations under Regulation H of the Board), title insurance policies, environmental reports, legal opinions and other documents in connection with such grant of such Lien obtained by it in connection with the acquisition of such ownership rights in such real property or as the Collateral Agent shall reasonably request (in light of the value of such real property and the cost and availability of such UCC fixture filings, surveys, appraisals, title insurance policies, environmental reports, legal opinions and other documents and whether the delivery of such UCC fixture filings, surveys, appraisals, title insurance policies, environmental reports, legal opinions and other documents would be customary in connection with such grant of such Lien in similar circumstances).

(b) With respect to ( i ) any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than ( x ) an Excluded Subsidiary and ( y ) a Subsidiary that will be (and, unless the Administrative Agent shall otherwise agree in its sole discretion, within 90 days following its creation or acquisition, is) converted into a Related Professional Corporation in a manner consistent with past practices on or prior to the Restatement Effective Date or in the ordinary course of business) created or acquired (including by reason of any Foreign Subsidiary Holdco ceasing to constitute same) subsequent to the Restatement Effective Date by the Borrower or any of its Domestic Subsidiaries that are Wholly Owned Subsidiaries (other than an Excluded Subsidiary), ( ii ) any Unrestricted Subsidiary that is a Wholly Owned Subsidiary being designated as a Restricted Subsidiary (and not otherwise constituting an Excluded Subsidiary), ( iii ) any Excluded Subsidiary that is a Wholly Owned Subsidiary ceasing to be an “Excluded Subsidiary” as provided in the definition thereof after the expiry of any applicable period referred to in such definition and ( iv ) any entity becoming a Domestic Subsidiary that is a Wholly Owned Subsidiary as a result of a transaction pursuant to, and permitted by, Subsection 8.2 or 8.7 (other than an Excluded Subsidiary or a Subsidiary of the type described in sub-clause (y) of the first parenthetical in preceding clause (i)), promptly notify the Administrative Agent of such occurrence and, if the Administrative Agent or the Required Lenders so request, promptly ( i ) execute and deliver to the Collateral Agent for the benefit of the Secured Parties such amendments to the Guarantee and Collateral Agreement as the Collateral Agent shall reasonably deem necessary or reasonably advisable to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first priority security interest (as and to the extent provided in the Guarantee and Collateral Agreement) in the Capital Stock of such new Domestic Subsidiary, ( ii ) deliver to the Collateral Agent the certificates (if any) representing such Capital Stock, together with undated stock powers, executed and delivered in blank by a duly authorized officer of the parent of such new Domestic Subsidiary that is directly owned by any Borrower or any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than any Excluded Subsidiary and other than a Subsidiary that will be (and, unless the Administrative Agent shall otherwise agree in its sole discretion, within 90 days following its creation or acquisition, is) converted into a Related Professional Corporation in a manner consistent with past practices on or prior to the Restatement Effective Date or in the ordinary course of business) and ( iii ) cause such new Domestic Subsidiary ( A ) to become a party to the Guarantee and Collateral Agreement and ( B ) to take all actions reasonably deemed by the Collateral Agent to be necessary or advisable to cause the Lien created by the Guarantee and Collateral Agreement in such new Domestic Subsidiary’s Collateral to be duly perfected in accordance with all applicable Requirements of

 

-124-


Law (as and to the extent provided in the Guarantee and Collateral Agreement), including the filing of financing statements in such jurisdictions as may be reasonably requested by the Collateral Agent. In addition, the Borrower may cause any Domestic Subsidiary that is not required to become a Subsidiary Guarantor to become a Subsidiary Guarantor by executing and delivering a Subsidiary Guaranty.

(c) With respect to any Foreign Subsidiary or Domestic Subsidiary that is not a Wholly Owned Subsidiary created or acquired subsequent to the Restatement Effective Date by the Borrower or any of its Domestic Subsidiaries that are Wholly Owned Subsidiaries (in each case, other than any Excluded Subsidiary and other than a Subsidiary that will be (and, unless the Administrative Agent shall otherwise agree in its sole discretion, within 90 days following its creation or acquisition, is) converted into a Related Professional Corporation in a manner consistent with past practices on or prior to the Restatement Effective Date or in the ordinary course of business), the Capital Stock of which is owned directly by the Borrower or a Domestic Subsidiary that is a Wholly Owned Subsidiary (other than an Excluded Subsidiary or a Subsidiary referred to in the immediately preceding parenthetical), promptly notify the Administrative Agent of such occurrence and if the Administrative Agent or the Required Lenders so request, promptly ( i ) execute and deliver to the Collateral Agent a new pledge agreement or such amendments to the Guarantee and Collateral Agreement as the Collateral Agent shall reasonably deem necessary or reasonably advisable to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first priority security interest (as and to the extent provided in the Guarantee and Collateral Agreement) in the Capital Stock of such new Subsidiary that is directly owned by the Borrower or any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than an Excluded Subsidiary or a Subsidiary referred to in the third preceding parenthetical) and ( ii ) to the extent reasonably deemed advisable by the Collateral Agent, deliver to the Collateral Agent the certificates, if any, representing such Capital Stock, together with undated stock powers, executed and delivered in blank by a duly authorized officer of the relevant parent of such new Subsidiary and take such other action as may be reasonably deemed by the Collateral Agent to be necessary or desirable to perfect the Collateral Agent’s security interest therein (in each case as and to the extent required by the Guarantee and Collateral Agreement); provided , that in either case in no event shall more than 65.0% of each series of Capital Stock of any new Foreign Subsidiary be required to be so pledged and; provided , further , that in either case no such pledge or security shall be required with respect to any Subsidiary that is not a Wholly Owned Subsidiary and a Restricted Subsidiary to the extent that the grant of such pledge or security interest would violate the terms of any agreements under which the Investment by the Borrower or any of its Restricted Subsidiaries was made therein.

(d) At its own expense, execute, acknowledge and deliver, or cause the execution, acknowledgement and delivery of, and thereafter register, file or record in an appropriate governmental office, any document or instrument reasonably deemed by the Collateral Agent to be necessary or desirable for the creation, perfection and priority and the continuation of the validity, perfection and priority of the foregoing Liens or any other Liens created pursuant to the Security Documents (to the extent the Collateral Agent determines, in its reasonable discretion, that such action is required to ensure the perfection or the enforceability as against third parties of its security interest in such Collateral) in each case in accordance with, and to the extent required by, the Guarantee and Collateral Agreement.

 

-125-


(e) Notwithstanding anything to the contrary in this Agreement, ( A ) the foregoing requirements shall be subject to the terms of the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement and, in the event of any conflict with such terms, the terms of the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement, as applicable, shall control, (B) no security interest is or will be granted pursuant to any Loan Document or otherwise in any right, title or interest of any of the Borrower or any of its Subsidiaries in, and “Collateral” shall not include, any Excluded Asset (as defined in the Guarantee and Collateral Agreement); ( C ) no Loan Party or any Affiliate thereof shall be required to take any action in any non-U.S. jurisdiction or required by the laws of any non-U.S. jurisdiction in order to create any security interests in assets located or titled outside of the U.S. or to perfect any security interests (it being understood that there shall be no security agreements or pledge agreements governed under the laws of any non-U.S. jurisdiction); and ( D ) nothing in this Subsection 7.9 shall require that any Subsidiary grant a Lien with respect to any property or assets in which such Subsidiary acquires ownership rights to the extent that the Administrative Agent, in its reasonable judgment, determines that the granting of such a Lien is impracticable.

7.10 [ Reserved ].

7.11 Use of Proceeds . Use the proceeds of the Term Loans only for the purposes set forth in Subsection 5.16.

7.12 [Reserved] .

7.13 [Reserved] .

7.14 Commercially Reasonable Efforts to Maintain Ratings . At all times, the Borrower shall use commercially reasonable efforts to maintain ratings of the Initial Term Loans and a corporate rating and corporate family rating, as applicable, for the Borrower by each of S&P and Moody’s.

7.15 Accounting Changes . The Borrower will, for financial reporting purposes, cause the Borrower’s and each of its Subsidiaries’ Fiscal Years to end on December 31st of each calendar year; provided that the Borrower may, upon written notice to the Administrative Agent, change the financial reporting convention specified above to any other financial reporting convention reasonably acceptable to the Administrative Agent, in which case the Borrower and the Administrative Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary in order to reflect such change in financial reporting.

 

-126-


SECTION 8

Negative Covenants

The Borrower hereby agrees that, from and after the Restatement Effective Date until payment in full of the Term Loans and all other Term Loan Facility Obligations then due and owing to any Lender or any Agent hereunder:

8.1 Limitation on Indebtedness . (a) The Borrower will not, and will not permit any Restricted Subsidiary to, Incur any Indebtedness; provided , however , that the Borrower or any Restricted Subsidiary may Incur Indebtedness if on the date of the Incurrence of such Indebtedness, after giving effect to the Incurrence thereof, the Consolidated Coverage Ratio would be equal to or greater than 2.00:1.00; provided , further , that the amount of Indebtedness that may be Incurred pursuant to this Subsection 8.1(a) , together with any amounts Incurred under Subsections 8.1(b)(x) and 8.1(b)(xiii) and Subsection 8.1(b)(iii)(C) (but only with respect to Refinancing Indebtedness in respect of Indebtedness of Restricted Subsidiaries that are not Subsidiary Guarantors incurred in reliance on Subsection 8.1(a) and Refinancing Indebtedness in respect thereof), in each case by Restricted Subsidiaries that are not Subsidiary Guarantors shall not exceed the greater of $400 million and 2.25% of Consolidated Total Assets at any one time outstanding.

(b) Notwithstanding the foregoing Subsection 8.1(a) , the Borrower and its Restricted Subsidiaries may Incur the following Indebtedness:

(i) Indebtedness Incurred by the Borrower and the Guarantors ( a ) pursuant to this Agreement and the other Loan Documents, ( b ) pursuant to the Senior ABL Facility, ( c ) constituting Additional Obligations (and Refinancing Indebtedness in respect thereof), ( d ) constituting Rollover Indebtedness (and Refinancing Indebtedness in respect thereof) and ( e ) in respect of Permitted Debt Exchange Notes Incurred pursuant to a Permitted Debt Exchange in accordance with Subsection 2.7 (and which does not generate any additional proceeds) and any Refinancing Indebtedness in respect thereof, in a maximum principal amount for all such Indebtedness at any time outstanding not exceeding in the aggregate the amount equal to the sum of ( A ) $4,595.0 million, plus ( B ) the greater of ( x ) $1,000.0 million and ( y ) an amount equal to ( 1 ) the Borrowing Base less ( 2 ) the aggregate principal amount of Indebtedness Incurred by Special Purpose Entities that are Restricted Subsidiaries and then outstanding pursuant to Subsection 8.1(b)(ix) , plus ( C ) without duplication of incremental amounts included in the definition of “Refinancing Indebtedness”, in the event of any refinancing of any such Indebtedness, the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses incurred in connection with such refinancing, and (II) Indebtedness Incurred by the Borrower and the Guarantors ( a ) pursuant to this Agreement and the other Loan Documents, ( b ) pursuant to the Senior ABL Facility, ( c ) constituting Additional Obligations, ( d ) constituting Rollover Indebtedness and ( e ) in respect of Permitted Debt Exchange Notes Incurred pursuant to a Permitted Debt Exchange in accordance with Subsection 2.7 (and which does not generate any additional proceeds) in an aggregate principal amount for all such Indebtedness outstanding after giving effect to such Incurrence not in excess of the Maximum Incremental Facilities Amount (for purposes of determining the amount outstanding pursuant to clause (i) of the definition of “Maximum Incremental Facilities Amount”, treating ( x ) any then unused portion of Incremental Revolving Commitments made available in reliance on such clause as outstanding Indebtedness and ( y ) Refinancing Indebtedness and Permitted Debt Exchange Notes Incurred in respect of Indebtedness Incurred in reliance on clause (i) of the definition of “Maximum Incremental Facilities Amount” (and Refinancing Indebtedness and Permitted Debt Exchange Notes Incurred in respect of such Refinancing Indebtedness and/or Permitted Debt Exchange Notes) as outstanding pursuant to such clause), together with

 

-127-


Refinancing Indebtedness in respect of the Indebtedness described in subclauses (a), (b), (c) and (d) of this clause (II) (but, in the case of clause (a), only to the extent constituting Term Loan Facility Obligations (or previous Refinancing Indebtedness in respect thereof) plus without duplication of incremental amounts included in the definition of “Refinancing Indebtedness”, the aggregate amount of all fees, underwriting discounts, premiums and other costs and expenses incurred in connection with such Refinancing Indebtedness);

(ii) Indebtedness ( A ) of any Restricted Subsidiary to the Borrower, or ( B ) of the Borrower or any Restricted Subsidiary to any Restricted Subsidiary; provided that in the case of this Subsection 8.1(b)(ii) , any subsequent issuance or transfer of any Capital Stock of such Restricted Subsidiary to which such Indebtedness is owed, or other event, that results in such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of such Indebtedness (except to the Borrower or a Restricted Subsidiary) will be deemed, in each case, an Incurrence of such Indebtedness by the issuer thereof not permitted by this Subsection 8.1(b)(ii) ;

(iii) Indebtedness represented by ( A ) the Senior Notes, ( B ) any Indebtedness (other than the Indebtedness described in Subsections 8.1(b)(i) and (ii) ) outstanding on the Restatement Effective Date and set forth on Schedule 8.1 and ( C ) any Refinancing Indebtedness Incurred in respect of any Indebtedness described in this Subsection 8.1(b)(iii) or Subsection 8.1(a) ; provided , that the amount of Indebtedness that may be Incurred pursuant to this Subsection 8.1(b)(iii)(C) (but only with respect to Refinancing Indebtedness in respect of Indebtedness of Restricted Subsidiaries that are not Subsidiary Guarantors incurred in reliance on Subsection 8.1(a) and Refinancing Indebtedness in respect thereof), together with any amounts Incurred under Subsections 8.1(a) , 8.1(b)(x) and 8.1(b)(xiii) , in each case by Restricted Subsidiaries that are not Subsidiary Guarantors shall not exceed the greater of $400.0 million and 2.25% of Consolidated Total Assets at any one time outstanding;

(iv) Purchase Money Obligations, Capitalized Lease Obligations, and in each case any Refinancing Indebtedness with respect thereto, in an aggregate principal amount at any time outstanding not exceeding an amount equal to the greater of $325.0 million and 2.00% of Consolidated Total Assets;

(v) Indebtedness consisting of accommodation guarantees for the benefit of trade creditors of the Borrower or any of its Restricted Subsidiaries;

(vi) ( A ) Guarantees by the Borrower or any Restricted Subsidiary of Indebtedness or any other obligation or liability of the Borrower or any Restricted Subsidiary (other than any Indebtedness Incurred by the Borrower or such Restricted Subsidiary, as the case may be, in violation of this Subsection 8.1 ), or ( B ) without limiting Subsection 8.6 , Indebtedness of the Borrower or any Restricted Subsidiary arising by reason of any Lien granted by or applicable to such Person securing Indebtedness of the Borrower or any Restricted Subsidiary (other than any Indebtedness Incurred by the Borrower or such Restricted Subsidiary, as the case may be, in violation of this Subsection 8.1 ); provided that Guarantees by, and other Indebtedness of the type

 

-128-


described in preceding clause (B) of, Restricted Subsidiaries of the Borrower that are not Subsidiary Guarantors of or securing, as the case may be, other Indebtedness of the Borrower and its Restricted Subsidiaries Incurred pursuant to Subsections 8.1(a) , 8.1(b)(x) and 8.1(b)(xiii) and Subsection 8.1(b)(iii)(C) (but only with respect to Refinancing Indebtedness in respect of Indebtedness of Restricted Subsidiaries that are not Subsidiary Guarantors incurred in reliance on Subsection 8.1(a) and Refinancing Indebtedness in respect thereof) are subject to the limitations on Indebtedness of non-Subsidiary Guarantors set forth in such Subsections;

(vii) Indebtedness of the Borrower or any Restricted Subsidiary ( A ) arising from the honoring of a check, draft or similar instrument of such Person drawn against insufficient funds in the ordinary course of business, or ( B ) consisting of guarantees, indemnities, obligations in respect of earnouts or other purchase price adjustments, or similar obligations, Incurred in connection with the acquisition or disposition of any business, assets or Person;

(viii) Indebtedness of the Borrower or any Restricted Subsidiary in respect of ( A ) letters of credit, bankers’ acceptances or other similar instruments or obligations issued, or relating to liabilities or obligations incurred, in the ordinary course of business (including those issued to governmental entities in connection with self-insurance under applicable workers’ compensation statutes), or ( B ) completion guarantees, surety, judgment, appeal or performance bonds, or other similar bonds, instruments or obligations, provided, or relating to liabilities or obligations incurred, in the ordinary course of business, or ( C ) Hedging Obligations entered into for bona fide hedging purposes, or ( D ) Management Guarantees, or ( E ) the financing of insurance premiums in the ordinary course of business, or ( F ) take-or-pay obligations under supply arrangements incurred in the ordinary course of business, or ( G ) netting, overdraft protection and other arrangements arising under standard business terms of any bank at which the Borrower or any Restricted Subsidiary maintains an overdraft, cash pooling or other similar facility or arrangement or ( H ) Bank Products Obligations;

(ix) Indebtedness ( A ) of a Special Purpose Subsidiary secured by a Lien on all or part of the assets disposed of in, or otherwise Incurred in connection with, a Financing Disposition or ( B ) otherwise Incurred in connection with a Special Purpose Financing; provided that ( 1 ) such Indebtedness is not recourse to the Borrower or any Restricted Subsidiary that is not a Special Purpose Subsidiary (other than with respect to Special Purpose Financing Undertakings); ( 2 ) in the event such Indebtedness shall become recourse to the Borrower or any Restricted Subsidiary that is not a Special Purpose Subsidiary (other than with respect to Special Purpose Financing Undertakings), such Indebtedness will be deemed to be, and must be classified by the Borrower as, Incurred at such time (or at the time initially Incurred) under one or more of the other provisions of this Subsection 8.1 for so long as such Indebtedness shall be so recourse; and ( 3 ) in the event that at any time thereafter such Indebtedness shall comply with the provisions of the preceding subclause (1), the Borrower may classify such Indebtedness in whole or in part as Incurred under this Subsection 8.1(b)(ix) ;

 

-129-


(x) Indebtedness of ( A ) the Borrower or any Restricted Subsidiary Incurred to finance or refinance, or otherwise Incurred in connection with, any acquisition of assets (including Capital Stock), business or Person, or any merger or consolidation of any Person with or into the Borrower or any Restricted Subsidiary; or ( B ) any Person that is acquired by or merged or consolidated with or into the Borrower or any Restricted Subsidiary (including Indebtedness thereof Incurred in connection with any such acquisition, merger or consolidation); provided , that on the date of such acquisition, merger or consolidation, after giving effect thereto, either ( 1 ) the Borrower could Incur at least $1.00 of additional Indebtedness pursuant to Subsection 8.1(a)  or ( 2 ) the Consolidated Coverage Ratio of the Borrower would equal or exceed the Consolidated Coverage Ratio of the Borrower immediately prior to giving effect thereto; and any Refinancing Indebtedness with respect to any such Indebtedness; provided , further , that the amount of Indebtedness that may be Incurred pursuant to this Subsection 8.1(b)(x) , together with any amounts Incurred under Subsections 8.1(a) and (b)(xiii) and Subsection 8.1(b)(iii)(C) (but only with respect to Refinancing Indebtedness in respect of Indebtedness of Restricted Subsidiaries that are not Subsidiary Guarantors incurred in reliance on Subsection 8.1(a) and Refinancing Indebtedness in respect thereof), in each case by Restricted Subsidiaries that are not Subsidiary Guarantors shall not exceed the greater of $400.0 million and 2.25% of Consolidated Total Assets at any one time outstanding;

(xi) Contribution Indebtedness and any Refinancing Indebtedness with respect thereto;

(xii) Indebtedness issuable upon the conversion or exchange of shares of Disqualified Stock issued in accordance with Subsection 8.1(a) , and any Refinancing Indebtedness with respect thereto;

(xiii) Indebtedness of the Borrower or any Restricted Subsidiary in an aggregate principal amount at any time outstanding not exceeding an amount equal to the greater of $775.0 million and 4.75% of Consolidated Total Assets; provided that the amount of Indebtedness that may be Incurred pursuant to this Subsection 8.1(b)(xiii) , together with any amounts Incurred under Subsections 8.1(a) and (b)(x) and Subsection 8.1(b)(iii)(C) (but only with respect to Refinancing Indebtedness in respect of Indebtedness of Restricted Subsidiaries that are not Subsidiary Guarantors incurred in reliance on Subsection 8.1(a) and Refinancing Indebtedness in respect thereof), in each case by Restricted Subsidiaries that are not Subsidiary Guarantors shall not exceed the greater of $400 million and 2.25% of Consolidated Total Assets at any one time outstanding;

(xiv) ( A ) Indebtedness of the Borrower or any Restricted Subsidiary to any Related Corporation, incurred consistent with past practices on or prior to the Restatement Effective Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts, ( B ) Guarantees by the Borrower or any Restricted Subsidiary of Indebtedness or any other obligation or liability of any Related Corporation, incurred consistent with past practices on or prior to the Restatement Effective Date or in the ordinary course of business, pursuant to or in connection with

 

-130-


Related Corporation Contracts, ( C ) without limiting Subsection 8.6 , Indebtedness of the Borrower or any Restricted Subsidiary arising by reason of any Lien granted by or applicable to such Person securing Indebtedness of any Related Corporation, incurred consistent with past practices on or prior to the Restatement Effective Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts, and ( D ) Indebtedness of the Borrower or any Restricted Subsidiary in respect of letters of credit, banker’s acceptances or other similar instruments or obligations, issued, or relating to liabilities or obligations incurred on behalf of any Related Corporation, incurred consistent with past practices on or prior to the Restatement Effective Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts; and

(xv) Indebtedness representing Guarantees of Indebtedness of partnerships or joint ventures of the Borrower or of any of its Restricted Subsidiaries in an aggregate amount, when added to all other Indebtedness Incurred pursuant to this clause (xv) and then outstanding, not to exceed the greater of $260.0 million and 1.60% of Consolidated Total Assets.

(c) For purposes of determining compliance with, and the outstanding principal amount of any particular Indebtedness Incurred pursuant to and in compliance with, this Subsection 8.1 , ( i ) any other obligation of the obligor on such Indebtedness (or of any other Person who could have Incurred such Indebtedness under this Subsection 8.1 ) arising under any Guarantee, Lien or letter of credit, bankers’ acceptance or other similar instrument or obligation supporting such Indebtedness shall be disregarded to the extent that such Guarantee, Lien or letter of credit, bankers’ acceptance or other similar instrument or obligation secures the principal amount of such Indebtedness; ( ii ) in the event that Indebtedness Incurred pursuant to Subsection 8.1(b) meets the criteria of more than one of the types of Indebtedness described in Subsection 8.1(b) , the Borrower, in its sole discretion, shall classify such item of Indebtedness and may include the amount and type of such Indebtedness in one or more of the clauses or subclauses of Subsection 8.1(b) (including in part under one such clause or subclause and in part under another such clause or subclause); provided , that (if the Borrower shall so determine) any Indebtedness Incurred pursuant to Subsection 8.1(b)(xiii) shall cease to be deemed Incurred or outstanding for purposes of such clause or subclause but shall be deemed Incurred for the purposes of Subsection 8.1(a) from and after the first date on which the Borrower or any Restricted Subsidiary could have Incurred such Indebtedness under Subsection 8.1(a) without reliance on such clause or subclause; ( iii ) in the event that Indebtedness could be Incurred in part under Subsection 8.1(a) , the Borrower, in its sole discretion, may classify a portion of such Indebtedness as having been Incurred under Subsection 8.1(a) and the remainder of such Indebtedness as having been Incurred under Subsection 8.1(b) ; ( iv ) the amount of Indebtedness issued at a price that is less than the principal amount thereof shall be equal to the amount of the liability in respect thereof determined in accordance with GAAP; ( v ) the principal amount of Indebtedness outstanding under any subclause of Subsection 8.1 , including for purposes of any determination of the “Maximum Incremental Facilities Amount” except as otherwise expressly, set forth herein, shall be determined after giving effect to the application of proceeds of any such Indebtedness to refinance any such other Indebtedness, ( vi ) if any Indebtedness is Incurred to refinance Indebtedness initially Incurred (or, to refinance Indebtedness Incurred to refinance Indebtedness initially Incurred) in reliance on any provision of Subsection 8.1(b) measured by reference to a percentage of Consolidated Total Assets at the time of Incurrence, and such

 

-131-


refinancing would cause such percentage of Consolidated Total Assets to be exceeded if calculated based on the Consolidated Total Assets on the date of such refinancing, such percentage of Consolidated Total Assets shall not be deemed to be exceeded (and such refinancing Indebtedness shall be deemed permitted) so long as the principal amount of such refinancing Indebtedness does not exceed an amount equal to the principal amount of such Indebtedness being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing; and ( vii ) if any Indebtedness is Incurred to refinance Indebtedness initially Incurred (or, Indebtedness Incurred to refinance Indebtedness initially Incurred) in reliance on any provision of Subsection 8.1(b) measured by a dollar amount, such dollar amount shall not be deemed to be exceeded (and such refinancing Indebtedness shall be deemed permitted) to the extent the principal amount of such newly Incurred Indebtedness does not exceed an amount equal to the principal amount of such Indebtedness being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing. Notwithstanding anything herein to the contrary, Indebtedness Incurred by the Borrower on the Seventh Amendment Effective Date under the Seventh Amendment shall be classified as Incurred under Subsection 8.1(b) , and not under Subsection 8.1(a) .

(d) For purposes of determining compliance with any dollar denominated restriction on the Incurrence of Indebtedness denominated in a foreign currency, the dollar equivalent principal amount of such Indebtedness Incurred pursuant thereto shall be calculated based on the relevant currency exchange rate in effect on the date that such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in the case of revolving credit Indebtedness; provided, that ( x ) the dollar equivalent principal amount of any such Indebtedness outstanding on the Restatement Effective Date shall be calculated based on the relevant currency exchange rate in effect on the Restatement Effective Date, ( y ) if such Indebtedness is Incurred to refinance other Indebtedness denominated in a foreign currency (or in a different currency from such Indebtedness so being Incurred), and such refinancing would cause the applicable dollar denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such dollar denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed ( i ) the outstanding or committed principal amount (whichever is higher) of such Indebtedness being refinanced plus ( ii ) the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses Incurred in connection with such refinancing and ( z ) the dollar equivalent principal amount of Indebtedness denominated in a foreign currency and Incurred pursuant to this Agreement or any Senior ABL Facility shall be calculated based on the relevant currency exchange rate in effect on, at the Borrower’s option, ( A ) the Restatement Effective Date, ( B ) any date on which any of the respective commitments under this Agreement or the applicable Senior ABL Facility shall be reallocated between or among facilities or subfacilities thereunder, or on which such rate is otherwise calculated for any purpose thereunder, or ( C ) the date of such Incurrence. The principal amount of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a different currency from the Indebtedness being refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on the date of such refinancing.

 

-132-


8.2 Limitation on Restricted Payments . (a) The Borrower shall not, and shall not permit any Restricted Subsidiary, directly or indirectly, to ( i ) declare or pay any dividend or make any distribution on or in respect of its Capital Stock (including any such payment in connection with any merger or consolidation to which the Borrower is a party) except ( x ) dividends or distributions payable solely in its Capital Stock (other than Disqualified Stock) and ( y ) dividends or distributions payable to the Borrower or any Restricted Subsidiary (and, in the case of any such Restricted Subsidiary making such dividend or distribution, to other holders of its Capital Stock on no more than a pro rata basis, measured by value), ( ii ) purchase, redeem, retire or otherwise acquire for value any Capital Stock of the Borrower held by Persons other than the Borrower or a Restricted Subsidiary (other than any acquisition of Capital Stock deemed to occur upon the exercise of options if such Capital Stock represents a portion of the exercise price thereof), ( iii ) voluntarily purchase, repurchase, redeem, defease or otherwise voluntarily acquire or retire for value, prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any Junior Debt (other than a purchase, repurchase, redemption, defeasance or other acquisition or retirement for value in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of such purchase, repurchase, redemption, defeasance or other acquisition or retirement for value), or ( iv ) make any Investment (other than a Permitted Investment) in any Person (any such dividend, distribution, purchase, repurchase, redemption, defeasance, other acquisition or retirement or Investment being herein referred to as a “ Restricted Payment ”), if at the time the Borrower or such Restricted Subsidiary makes such Restricted Payment and after giving effect thereto:

(1) an Event of Default under Subsection 9.1(a) , (c) , (e) , (f) , (h) , (i) , (j)  or (k) , or another Event of Default known to the Borrower, shall have occurred and be continuing (or would result therefrom);

(2) the Borrower could not Incur at least an additional $1.00 of Indebtedness pursuant to Subsection 8.1(a) ; or

(3) the aggregate amount of such Restricted Payment and all other Restricted Payments (the amount so expended, if other than in cash, to be as determined in good faith by the Board of Directors, whose determination shall be conclusive and evidenced by a resolution of the Board of Directors) declared or made subsequent to the Closing Date and then outstanding would exceed, without duplication, the sum of:

(A) (i) $275.0 million plus (ii) 50.0% of the Consolidated Net Income accrued during the period (treated as one accounting period) beginning on October 1, 2016 to the end of the most recent fiscal quarter ending prior to the date of such Restricted Payment for which consolidated financial statements of the Borrower are available (or, in case such Consolidated Net Income shall be a negative number, 100.0% of such negative number);

(B) the aggregate Net Cash Proceeds and the Fair Market Value of property or assets received ( x ) by the Borrower as capital contributions to the Borrower after the Restatement Effective Date or from the issuance or sale (other than to a Restricted Subsidiary) of its Capital Stock (other than Disqualified

 

-133-


Stock) after the Restatement Effective Date (other than Excluded Contributions and Contribution Amounts) or ( y ) by the Borrower or any Restricted Subsidiary from the Incurrence by the Borrower or any Restricted Subsidiary after the Restatement Effective Date of Indebtedness that shall have been converted into or exchanged for Capital Stock of the Borrower (other than Disqualified Stock) or Capital Stock of any Parent Entity, plus the amount of any cash and the Fair Market Value of any property or assets, received by the Borrower or any Restricted Subsidiary upon such conversion or exchange;

(C) the aggregate amount of cash and the Fair Market Value of any property or assets received from ( i ) dividends, distributions, interest payments, return of capital, repayments of Investments or other transfers of assets to the Borrower or any Restricted Subsidiary from any Unrestricted Subsidiary, including dividends or other distributions related to dividends or other distributions made pursuant to Subsection 8.2(b)(ix) , plus ( ii ) the redesignation of any Unrestricted Subsidiary as a Restricted Subsidiary (valued in each case as provided in the definition of “Investment”); and

(D) in the case of any disposition or repayment of any Investment constituting a Restricted Payment (without duplication of any amount deducted in calculating the amount of Investments at any time outstanding included in the amount of Restricted Payments), the aggregate amount of cash and the Fair Market Value of any property or assets received by the Borrower or a Restricted Subsidiary with respect to all such dispositions and repayments received by the Borrower or a Restricted Subsidiary.

(b) The provisions of Subsection 8.2(a) do not prohibit any of the following (each, a “ Permitted Payment ”):

(i) any purchase, redemption, repurchase, defeasance or other acquisition or retirement of Capital Stock of the Borrower or any Junior Debt made by exchange (including any such exchange pursuant to the exercise of a conversion right or privilege in connection with which cash is paid in lieu of the issuance of fractional shares) for, or out of the proceeds of the issuance or sale of, Capital Stock of the Borrower (other than Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary) or a capital contribution to the Borrower, in each case other than Excluded Contributions and Contribution Amounts; provided , that the Net Cash Proceeds from such issuance, sale or capital contribution shall be excluded in subsequent calculations under Subsection 8.2(a)(3)(B) ; provided , further , that, if the Net Cash Proceeds from any such issuance, sale or contribution or any related series of issuances, sales or contributions at any time exceeds $100.0 million in the aggregate, the Borrower at its option may, within 180 days of such Net Cash Proceeds exceeding $100.0 million in the aggregate (and so long as such Net Cash Proceeds have not theretofore been used to effect a purchase, redemption, repurchase, defeasance or other acquisition or retirement pursuant to this Subsection 8.2(b)(i) ), designate such Net Cash Proceeds as an Excluded Contribution pursuant to an Officer’s Certificate and if the Borrower chooses not to make such a designation such Net Cash Proceeds will no longer be available under this Subsection 8.2(b)(i) and will be included in calculations under Subsection 8.2(a)(3)(B) ;

 

-134-


(ii) any dividend paid or the consummation of any irrevocable redemption within 60 days after the date of declaration thereof or of giving of any irrevocable notice of redemption, as applicable, if at such date of declaration or the giving of such notice, such dividend or redemption would have complied with Subsection 8.2 ;

(iii) Investments or other Restricted Payments in an aggregate amount outstanding at any time not to exceed the amount of Excluded Contributions;

(iv) loans, advances, dividends or distributions by the Borrower to any Parent Entity to permit any Parent Entity to repurchase or otherwise acquire its Capital Stock (including any options, warrants or other rights in respect thereof), or payments by the Borrower to repurchase or otherwise acquire Capital Stock of any Parent Entity or the Borrower (including any options, warrants or other rights in respect thereof), in each case from Management Investors (including any repurchase or acquisition by reason of the Borrower or any Parent Entity retaining any Capital Stock, option, warrant or other right in respect of tax withholding obligations, and any related payment in respect of any such obligation), such payments, loans, advances, dividends or distributions not to exceed in any calendar year (net of repayments of any such loans or advances) $100.0 million (with unused amounts in any calendar year being carried over to the next two succeeding calendar years; provided , that if any amount is so carried over, the application of the amount available in any calendar year under this Subsection 8.2(b)(iv) will be applied ( 1 first , from any amount carried over from the second preceding calendar year, ( 2 second , from any amount carried over from the immediately preceding calendar year, and ( 3 third , from the amount for such calendar year); provided that such amount in any calendar year may be increased by an amount not to exceed ( x ) the Net Cash Proceeds received by the Borrower since the Restatement Effective Date from, or as a capital contribution from, the issuance or sale to Management Investors of Capital Stock (including any options, warrants or other rights in respect thereof), to the extent such Net Cash Proceeds are not included in any calculation under Subsection 8.2(a)(3)(B)(x) , plus ( y ) the cash proceeds of key man life insurance policies received by the Borrower or any Restricted Subsidiary (or by any Parent Entity and contributed to the Borrower) since the Restatement Effective Date to the extent such cash proceeds are not included in any calculation under Subsection 8.2(a)(3)(A) ;

(v) the payment by the Borrower of dividends on the common stock, units or equity of the Borrower in an amount not to exceed the greater of $75.0 million and 5.5% of Consolidated EBITDA in any Fiscal Year;

(vi) Restricted Payments (including loans or advances) in an aggregate amount outstanding at any time not to exceed an amount (net of repayments of any such loans or advances) equal to the greater of $425.0 million and 2.50% of Consolidated Total Assets;

 

-135-


(vii) loans, advances, dividends or distributions to any Parent Entity or other payments by the Borrower or any Restricted Subsidiary ( A ) to satisfy or permit any Parent Entity to satisfy obligations under the Transaction Documents, or ( B ) to pay or permit any Parent Entity to pay (but without duplication) any Parent Expenses or any Related Taxes;

(viii) payments by the Borrower, or loans, advances, dividends or distributions by the Borrower to any Parent Entity to make payments to holders of Capital Stock of the Borrower or any Parent Entity in lieu of issuance of fractional shares of such Capital Stock;

(ix) dividends or other distributions of, or Investments paid for or made with, Capital Stock, Indebtedness or other securities of Unrestricted Subsidiaries;

(x) any Restricted Payment pursuant to or in connection with the Transactions;

(xi) the declaration and payment of dividends to holders of any class or series of Disqualified Stock, or of any Preferred Stock of a Restricted Subsidiary, Incurred in accordance with the terms of Subsection 8.1 ;

(xii) any purchase, redemption, repurchase, defeasance or other acquisition or retirement of any Junior Debt ( v ) made by exchange for, or out of the proceeds of the Incurrence of, ( 1 ) Refinancing Indebtedness Incurred in compliance with Subsection 8.1 or ( 2 ) new Indebtedness of the Borrower, or a Guarantor, as the case may be, Incurred in compliance with Subsection 8.1 , so long as such new Indebtedness satisfies all requirements for “Refinancing Indebtedness” set forth in the definition thereof applicable to a refinancing of such Junior Debt, ( w ) from Net Available Cash or any equivalent amount to the extent permitted by Subsection 8.4 , ( x ) from declined amounts as contemplated by Subsection 4.4(d) , ( y ) following the occurrence of a Change of Control (or other similar event described therein as a “change of control”), but only if the Borrower shall have complied with Subsection 8.8(a ) prior to purchasing, redeeming, repurchasing, defeasing, acquiring or retiring such Junior Debt or ( z ) constituting Acquired Indebtedness;

(xiii) any Restricted Payment; provided , that on a pro forma basis after giving effect to such Restricted Payment the Consolidated Total Net Leverage Ratio would be equal to or less than 3.50:1.00;

(xiv) any purchase, redemption or other acquisition or retirement for value of shares of Capital Stock of a Restricted Subsidiary owned by a Strategic Investor if such purchase, redemption or other acquisition or retirement for value is made for consideration not in excess of the Fair Market Value of such Capital Stock; and

(xv) on or prior to July 1, 2017, the declaration and payment of dividends with respect to the Existing Mandatory Convertible Preferred in accordance with the terms thereof as in effect on the Issue Date;

 

-136-


provided that ( A ) in the case of Subsections 8.2(b)(ii) , (v)  and (viii) , the net amount of any such Permitted Payment shall be included in subsequent calculations of the amount of Restricted Payments, ( B ) in the case of Subsection 8.2(b)(iv) , at the time of any calculation of the amount of Restricted Payments, the net amount of Permitted Payments that have then actually been made under Subsection 8.2(b)(iv)  that is in excess of 50.0% of the total amount of Permitted Payments then permitted under Subsection 8.2(b)(iv)  shall be included in such calculation of the amount of Restricted Payments, ( C ) in all cases other than pursuant to clauses (A) and (B) immediately above, the net amount of any such Permitted Payment shall be excluded in subsequent calculations of the amount of Restricted Payments, and ( D ) solely with respect to Subsections 8.2(b)(vi) , (xii)  and (xiii) , no Event of Default under Subsection 9.1(a) , (c) , (e) , (f) , (h) , (i) , (j)  or (k)  or other Event of Default known to the Borrower shall have occurred and be continuing at the time of any such Permitted Payment after giving effect thereto. The Borrower, in its sole discretion, may classify any Investment or other Restricted Payment as being made in part under one of the clauses or subclauses of this Subsection 8.2(b) (or, in the case of any Investment, the clauses or subclauses of Permitted Investments) and in part under one or more other such provisions (or, as applicable, clauses or subclauses).

8.3 Limitation on Restrictive Agreements . The Borrower will not, and will not permit any Restricted Subsidiary to, create or otherwise cause to exist or become effective any consensual encumbrance or restriction on ( i ) the ability of the Borrower or any of its Restricted Subsidiaries (other than any Foreign Subsidiaries or any Excluded Subsidiaries) to create, incur, assume or suffer to exist any Lien in favor of the Lenders in respect of obligations and liabilities under this Agreement or any other Loan Documents upon any of its property, assets or revenues constituting Term Loan Priority Collateral as and to the extent contemplated by this Agreement and the other Loan Documents, whether now owned or hereafter acquired or ( ii ) the ability of any Restricted Subsidiary to ( x ) pay dividends or make any other distributions on its Capital Stock or pay any Indebtedness or other obligations owed to the Borrower, ( y ) make any loans or advances to the Borrower or ( z ) transfer any of its property or assets to the Borrower ( provided that dividend or liquidation priority between classes of Capital Stock, or subordination of any obligation (including the application of any remedy bars thereto) to any other obligation, will not be deemed to constitute such an encumbrance or restriction), except any encumbrance or restriction:

(a) pursuant to an agreement or instrument in effect at or entered into on the Restatement Effective Date, this Agreement and the other Loan Documents, the ABL Facility Documents, the ABL/Term Loan Intercreditor Agreement, the Senior Notes Debt Documents and, on and after the execution and delivery thereof, the Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement, any Permitted Debt Exchange Notes (and any related documents) and any Additional Obligations Documents;

(b) pursuant to any agreement or instrument of a Person, or relating to Indebtedness or Capital Stock of a Person, which Person is acquired by or merged or consolidated with or into the Borrower or any Restricted Subsidiary, or which agreement or instrument is assumed by the Borrower or any Restricted Subsidiary in connection with an acquisition of assets from such Person or any other transaction entered into in connection with any such acquisition, merger or consolidation, as in effect at the time of such acquisition, merger, consolidation or transaction (except to the extent that such Indebtedness was incurred to finance,

 

-137-


or otherwise in connection with, such acquisition, merger, consolidation or transaction); provided that for purposes of this Subsection 8.3(b) , if a Person other than the Borrower is the Successor Borrower with respect thereto, any Subsidiary thereof or agreement or instrument of such Person or any such Subsidiary shall be deemed acquired or assumed, as the case may be, by the Borrower or a Restricted Subsidiary, as the case may be, when such Person becomes such Successor Borrower;

(c) pursuant to an agreement or instrument (a “Refinancing Agreement”) effecting a refinancing of Indebtedness Incurred or outstanding pursuant or relating to, or that otherwise extends, renews, refunds, refinances or replaces, any agreement or instrument referred to in Subsection 8.3(a) or (b)  or this Subsection 8.3(c) (an “Initial Agreement”) or that is, or is contained in, any amendment, supplement or other modification to an Initial Agreement or Refinancing Agreement (an “ Amendment ”); provided , however , that the encumbrances and restrictions contained in any such Refinancing Agreement or Amendment taken as a whole are not materially less favorable to the Lenders than encumbrances and restrictions contained in the Initial Agreement or Initial Agreements to which such Refinancing Agreement or Amendment relates (as determined in good faith by the Borrower);

(d) ( i ) pursuant to any agreement or instrument that restricts in a customary manner (as determined by the Borrower in good faith) the assignment or transfer thereof, or the subletting, assignment or transfer of any property or asset subject thereto, ( ii ) by virtue of any transfer of, agreement to transfer, option or right with respect to, or Lien on, any property or assets of the Borrower or any Restricted Subsidiary not otherwise prohibited by this Agreement, ( iii ) contained in mortgages, pledges or other security agreements securing Indebtedness or other obligations of the Borrower or a Restricted Subsidiary to the extent restricting the transfer of the property or assets subject thereto, ( iv ) pursuant to customary provisions (as determined by the Borrower in good faith) restricting dispositions of real property interests set forth in any reciprocal easement agreements of the Borrower or any Restricted Subsidiary, ( v ) pursuant to Purchase Money Obligations that impose encumbrances or restrictions on the property or assets so acquired, ( vi ) on cash or other deposits or net worth or inventory imposed by customers or suppliers under agreements entered into in the ordinary course of business, ( vii ) pursuant to customary provisions (as determined by the Borrower in good faith) contained in agreements and instruments entered into in the ordinary course of business (including but not limited to leases and licenses) or in joint venture and other similar agreements or in shareholder, partnership, limited liability company and other similar agreements in respect of non-wholly owned Restricted Subsidiaries, ( viii ) that arises or is agreed to in the ordinary course of business and does not detract from the value of property or assets of the Borrower or any Restricted Subsidiary in any manner material to the Borrower or such Restricted Subsidiary ( ix ) pursuant to Hedging Obligations or Bank Products Obligations or ( x ) pursuant to Related Corporation Contracts;

(e) with respect to any agreement for the direct or indirect disposition of Capital Stock of any Person, property or assets, imposing restrictions with respect to such Person, Capital Stock, property or assets pending the closing of such disposition;

(f) by reason of any applicable law, rule, regulation or order, or required by any regulatory authority having jurisdiction over the Borrower or any Restricted Subsidiary or any of

 

-138-


their businesses, including any such law, rule, regulation, order or requirement applicable in connection with such Restricted Subsidiary’s status (or the status of any Subsidiary of such Restricted Subsidiary) as a Captive Insurance Subsidiary;

(g) pursuant to an agreement or instrument ( i ) relating to any Indebtedness permitted to be Incurred subsequent to the Restatement Effective Date pursuant to Subsection 8.1 ( x ) if the encumbrances and restrictions contained in any such agreement or instrument taken as a whole are not materially less favorable to the Lenders than the encumbrances and restrictions contained in the Initial Agreements (as determined in good faith by the Borrower), or ( y ) if such encumbrance or restriction is not materially more disadvantageous to the Lenders than is customary in comparable financings (as determined in good faith by the Borrower) and either ( 1 ) the Borrower determines in good faith that such encumbrance or restriction will not materially affect the Borrower’s ability to create and maintain the Liens on the Term Loan Priority Collateral pursuant to the Security Documents and make principal or interest payments on the Term Loans or ( 2 ) such encumbrance or restriction applies only if a default occurs in respect of a payment or financial covenant relating to such Indebtedness, ( ii ) relating to any sale of receivables by a Foreign Subsidiary or ( iii ) relating to Indebtedness of or a Financing Disposition by or to or in favor of any Special Purpose Entity;

(h) any agreement relating to intercreditor arrangements and related rights and obligations, to or by which the Lenders and/or the Administrative Agent, the Collateral Agent or any other agent, trustee or representative on their behalf may be party or bound at any time or from time to time, and any agreement providing that in the event that a Lien is granted for the benefit of the Lenders, another Person shall also receive a Lien, which Lien is permitted by Subsection 8.6 ; or

(i) any agreement governing or relating to Indebtedness and/or other obligations and liabilities secured by a Lien permitted by Subsection 8.6 (in which case any restriction shall only be effective against the assets subject to such Lien, except as may be otherwise permitted under this Subsection 8.3 ).

8.4 Limitation on Sales of Assets and Subsidiary Stock . (a) The Borrower will not, and will not permit any Restricted Subsidiary to, make any Asset Disposition unless:

(i) the Borrower or such Restricted Subsidiary receives consideration (including by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise) at the time of such Asset Disposition at least equal to the fair market value of the shares and assets subject to such Asset Disposition, as such fair market value (as of the date on which a legally binding commitment for such Asset Disposition was entered into) may be determined (and shall be determined, to the extent such Asset Disposition or any series of related Asset Dispositions involves aggregate consideration in excess of $100.0 million) in good faith by the senior management of the Borrower or the Board of Directors, whose determination shall be conclusive (including as to the value of all noncash consideration);

(ii) in the case of any Asset Disposition (or series of related Asset Dispositions) having a Fair Market Value (as of the date on which a legally binding

 

-139-


commitment for such Asset Disposition was entered into) of $100.0 million or more, at least 75.0% of the consideration therefor (excluding, in the case of an Asset Disposition (or series of related Asset Dispositions), any consideration by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise, that are not Indebtedness) received by the Borrower or such Restricted Subsidiary is in the form of cash; and

(iii) to the extent required by Subsection 8.4(b) , an amount equal to 100.0% of the Net Available Cash from such Asset Disposition is applied by the Borrower (or any Restricted Subsidiary, as the case may be) as provided therein.

(b) In the event that on or after the Restatement Effective Date the Borrower or any Restricted Subsidiary shall make an Asset Disposition or a Recovery Event shall occur, subject to Subsection 8.4(a) , an amount equal to 100.0% of the Net Available Cash from such Asset Disposition or Recovery Event shall be applied by the Borrower (or any Restricted Subsidiary, as the case may be) as follows:

(i) first , to the extent the Borrower or such Restricted Subsidiary elects (by delivery of an officer’s certificate by a Responsible Officer to the Administrative Agent promptly following such Asset Disposition or Recovery Event that it is exercising its reinvestment option under this Subsection 8.4(b)(i) ) to invest in Additional Assets (including by means of an investment in Additional Assets by a Restricted Subsidiary with an amount equal to Net Available Cash received by the Borrower or another Restricted Subsidiary) within 365 days after the later of the date of such Asset Disposition or Recovery Event, as the case may be, and the date of receipt of such Net Available Cash (such period, the “ Reinvestment Period ”) or, if such investment in Additional Assets is a project authorized by the Board of Directors that will take longer than such 365 days to complete and is subject to a binding written commitment entered into during the Reinvestment Period, an additional 180 days after the last day of the Reinvestment Period (it being understood and agreed that if no such investment is made within the Reinvestment Period as extended by this clause (y), the Borrower shall make the prepayments required by Subsection 8.4(b)(ii) on the earlier to occur of ( I ) the last day of such Reinvestment Period and ( II ) the date the Borrower elects not to pursue such investment);

(ii) second , ( 1 ) if no application of Net Available Cash election is made pursuant to preceding clause (i) with respect to such Asset Disposition or Recovery Event or ( 2 ) if such election is made to the extent of the balance of such Net Available Cash or equivalent amount after application in accordance with Subsection 8.4(b)(i) , within ten Business Days after the end of the Reinvestment Period specified in clause (i) above (as extended pursuant to clause (y) of such clause (i)) ( x ) to the extent such Asset Disposition or Recovery Event is an Asset Disposition or Recovery Event of assets that constitute Collateral, to purchase, redeem, repay, prepay, make an offer to prepay or repurchase, or deliver a notice of redemption, in accordance with Subsection 4.4(b)(i) (subject to Subsection 4.4(d) ) or the agreements or instruments governing the relevant Indebtedness described in clause (B) below (subject to any provision under such agreement or instrument analogous to Subsection 4.4(d) ), as applicable, ( A ) the Term Loans and ( B ) to

 

-140-


the extent the Borrower or any Restricted Subsidiary is required by the terms thereof, any Permitted Debt Exchange Notes, Additional Obligations and any Refinancing Indebtedness in respect of the foregoing with, in each case, a Lien on the Collateral ranking pari passu with the Liens securing the Term Facility Obligations on a pro rata basis with the Term Loans and ( y ) to the extent such Asset Disposition is an Asset Disposition of assets that do not constitute Collateral, to purchase, redeem, repay, prepay, make an offer to prepay or repurchase, or deliver a notice of redemption, in accordance with Subsection 4.4(b)(i) (subject to Subsection 4.4(d) ) or the agreements or instruments governing any relevant Indebtedness permitted under Subsection 8.1 (subject to any provision under such agreement or instrument analogous to Subsection 4.4(d) ), as applicable, ( A ) the Term Loans and ( B ) to the extent the Borrower or any Restricted Subsidiary is required by the terms thereof, any other Indebtedness (other than Indebtedness subordinated in right of payment to the First Lien Obligations) on a pro rata basis with the Term Loans; and

(iii) third , to the extent of the balance of such Net Available Cash or equivalent amount after application in accordance with Subsections 8.4(b)(i) and (ii)  above (including an amount equal to the amount of any prepayment otherwise contemplated by clause (ii) above in connection with such Asset Disposition or Recovery Event that is declined by any Lender), to fund (to the extent consistent with any other applicable provision of this Agreement) any general corporate purpose (including but not limited to the repurchase, repayment or other acquisition or retirement of Junior Debt);

provided , however , that in connection with any prepayment, repayment, purchase or redemption of Indebtedness pursuant to clause (ii) above, the Borrower or such Restricted Subsidiary will retire such Indebtedness and will cause the related loan commitment (if any) to be permanently reduced in an amount equal to the principal amount so prepaid, repaid, purchased or redeemed.

(c) Notwithstanding the foregoing provisions of this Subsection 8.4 , the Borrower and the Restricted Subsidiaries shall not be required to apply any Net Available Cash or equivalent amount in accordance with this Subsection 8.4 except to the extent that ( x ) the aggregate Net Available Cash from all Asset Dispositions and Recovery Events or equivalent amount that is not applied in accordance with this Subsection 8.4 exceeds $100.0 million, in which case the Borrower and its Subsidiaries shall apply all such Net Available Cash from such Asset Dispositions and Recovery Events or equivalent amount in accordance with Subsection 8.4(b) or ( y ) the terms of any Permitted Debt Exchange Notes, Additional Obligations or any Refinancing Indebtedness in respect of the foregoing with, in each case, a Lien on the Collateral ranking pari passu with the Liens securing the Term Loan Facility Obligations would require Net Available Cash or the equivalent amount to be applied to purchase, redeem, repay or prepay such Indebtedness prior to reaching such $100.0 million threshold.

(d) For the purposes of Subsection 8.4(a)(ii) , the following are deemed to be cash: ( 1 ) Temporary Cash Investments and Cash Equivalents, ( 2 ) the assumption of Indebtedness of the Borrower (other than Disqualified Stock of the Borrower) or any Restricted Subsidiary and the release of the Borrower or such Restricted Subsidiary from all liability on payment of the principal amount of such Indebtedness in connection with such Asset

 

-141-


Disposition, ( 3 ) Indebtedness of any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of such Asset Disposition, to the extent that the Borrower and each other Restricted Subsidiary are released from any Guarantee of payment of the principal amount of such Indebtedness in connection with such Asset Disposition, ( 4 ) securities received by the Borrower or any Restricted Subsidiary from the transferee that are converted by the Borrower or such Restricted Subsidiary into cash within 180 days, ( 5 ) consideration consisting of Indebtedness of the Borrower or any Restricted Subsidiary, ( 6 ) Additional Assets, and ( 7 ) any Designated Noncash Consideration received by the Borrower or any of its Restricted Subsidiaries in an Asset Disposition having an aggregate Fair Market Value, taken together with all other Designated Noncash Consideration received pursuant to this clause (7), not to exceed an aggregate amount at any time outstanding equal to the greater of $425.0 million and 2.50% of Consolidated Total Assets (with the Fair Market Value of each item of Designated Noncash Consideration being measured at the time received and without giving effect to subsequent changes in value).

8.5 Limitations on Transactions with Affiliates . (a) The Borrower will not, and will not permit any Restricted Subsidiary to, directly or indirectly, enter into or conduct any transaction or series of related transactions (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate of the Borrower (an “ Affiliate Transaction ”) involving aggregate consideration in excess of $100.0 million unless ( i ) the terms of such Affiliate Transaction are not materially less favorable to the Borrower or such Restricted Subsidiary, as the case may be, than those that could be obtained at the time in a transaction with a Person who is not such an Affiliate and ( ii ) if such Affiliate Transaction involves aggregate consideration in excess of $100.0 million, the terms of such Affiliate Transaction have been approved by a majority of the Disinterested Directors. For purposes of this Subsection 8.5(a) , any Affiliate Transaction shall be deemed to have satisfied the requirements set forth in this Subsection 8.5(a) if ( x ) such Affiliate Transaction is approved by a majority of the Disinterested Directors or ( y ) in the event there are no Disinterested Directors, a fairness opinion is provided by a nationally recognized appraisal or investment banking firm with respect to such Affiliate Transaction.

(b) The provisions of Subsection 8.5(a) will not apply to:

(i) any Restricted Payment Transaction,

(ii) ( 1 ) the entering into, maintaining or performance of any employment or consulting contract, collective bargaining agreement, benefit plan, program or arrangement, related trust agreement or any other similar arrangement for or with any current or former employee, officer or director or consultant of or to the Borrower, any Restricted Subsidiary or any Parent Entity heretofore or hereafter entered into in the ordinary course of business, including vacation, health, insurance, deferred compensation, severance, retirement, savings or other similar plans, programs or arrangements, ( 2 ) payments, compensation, performance of indemnification or contribution obligations, the making or cancellation of loans or any issuance, grant or award of stock, options, other equity related interests or other securities, to any such employees, officers, directors or consultants in the ordinary course of business, ( 3 ) the payment of reasonable fees to directors of the Borrower or any of its Subsidiaries or any

 

-142-


Parent Entity (as determined in good faith by the Borrower, such Subsidiary or such Parent Entity), or ( 4 ) Management Advances and payments in respect thereof (or in reimbursement of any expenses referred to in the definition of such term),

(iii) any transaction between or among any of the Borrower, one or more Restricted Subsidiaries, or one or more Special Purpose Entities,

(iv) any transaction arising out of agreements or instruments in existence on the Restatement Effective Date and set forth on Schedule 8.5 (other than any Transaction Documents referred to in Subsection 8.5(b)(vii) ), and any payments made pursuant thereto,

(v) any transaction in the ordinary course of business on terms that are fair to the Borrower and its Restricted Subsidiaries in the reasonable determination of the Board of Directors or senior management of the Borrower, or are not materially less favorable to the Borrower or the relevant Restricted Subsidiary than those that could be obtained at the time in a transaction with a Person who is not an Affiliate of the Borrower,

(vi) any transaction in the ordinary course of business, or approved by a majority of the Board of Directors, between the Borrower or any Restricted Subsidiary and any Affiliate of the Borrower controlled by the Borrower that is a joint venture or similar entity,

(vii) the execution, delivery and performance of any Transaction Document,

(viii) the Transactions, all transactions in connection therewith (including but not limited to the financing thereof), and all fees and expenses paid or payable in connection with the Transactions,

(ix) any issuance or sale of Capital Stock (other than Disqualified Stock) of the Borrower or any capital contribution to the Borrower,

(x) [Reserved], and

(xi) any transaction between or among the Borrower or any Restricted Subsidiary and any Related Corporation pursuant to or in connection with a Related Corporation Contract.

8.6 Limitation on Liens . The Borrower shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, create or permit to exist any Lien (other than Permitted Liens) on any of its property or assets (including Capital Stock of any other Person), whether owned on the Restatement Effective Date or thereafter acquired, securing any Indebtedness (the “ Initial Lien ”) unless, in the case of Initial Liens on any asset or property other than Collateral, the Term Loan Facility Obligations are equally and ratably secured with (or on a senior basis to, in the case such Initial Lien secures any Junior Debt) the obligations secured by such Initial Lien. Any such Lien created in favor of the Term Loan Facility Obligations pursuant

 

-143-


to the subclause in the preceding sentence requiring an equal and ratable (or senior, as applicable) Lien for the benefit of the Term Loan Facility Obligations will be automatically and unconditionally released and discharged upon ( i ) the release and discharge of the Initial Lien to which it relates, ( ii ) in the case of any such Lien in favor of any Subsidiary Guaranty, upon the termination and discharge of such Subsidiary Guaranty in accordance with the terms thereof, hereof and the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement, or ( iii ) any sale, exchange or transfer (other than a transfer constituting a transfer of all or substantially all of the assets of the Borrower that is governed by the provisions of Subsection 8.7 ) to any Person not an Affiliate of the Borrower of the property or assets secured by such Initial Lien, or of all of the Capital Stock held by the Borrower or any Restricted Subsidiary in, or all or substantially all the assets of, any Restricted Subsidiary creating such Initial Lien.

8.7 Limitation on Fundamental Changes . (a) The Borrower will not consolidate with or merge with or into, or convey, transfer or lease all or substantially all its assets to, any Person, unless:

(i) the resulting, surviving or transferee Person (the “ Successor Borrower ”) will be a Person organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and the Successor Borrower (if not the Borrower) will expressly assume all the obligations of the Borrower under this Agreement and the Loan Documents to which it is a party by executing and delivering to the Administrative Agent a joinder or one or more other documents or instruments in form reasonably satisfactory to the Administrative Agent;

(ii) immediately after giving effect to such transaction (and treating any Indebtedness that becomes an obligation of the Successor Borrower or any Restricted Subsidiary as a result of such transaction as having been Incurred by the Successor Borrower or such Restricted Subsidiary at the time of such transaction), no Default will have occurred and be continuing;

(iii) immediately after giving effect to such transaction, either ( A ) the Borrower (or, if applicable, the Successor Borrower with respect thereto) could Incur at least $1.00 of additional Indebtedness pursuant to Subsection 8.1(a) or ( B ) the Consolidated Coverage Ratio of the Borrower (or, if applicable, the Successor Borrower with respect thereto) would equal or exceed the Consolidated Coverage Ratio of the Borrower immediately prior to giving effect to such transaction;

(iv) each Subsidiary Guarantor (other than ( x ) any Subsidiary Guarantor that will be released from its obligations under its Subsidiary Guaranty in connection with such transaction and ( y ) any party to any such consolidation or merger) shall have delivered a joinder or other document or instrument in form reasonably satisfactory to the Administrative Agent, confirming its Subsidiary Guaranty (other than any Subsidiary Guaranty that will be discharged or terminated in connection with such transaction);

(v) each Subsidiary Guarantor (other than ( x ) any Subsidiary that will be released from its grant or pledge of Collateral under the Guarantee and Collateral

 

-144-


Agreement in connection with such transaction and ( y ) any party to any such consolidation or merger) shall have by a supplement to the Guarantee and Collateral Agreement or another document or instrument affirmed that its obligations thereunder shall apply to its Guarantee as reaffirmed pursuant to clause (iv) above;

(vi) each mortgagor of a Mortgaged Fee Property (other than ( x ) any Subsidiary that will be released from its grant or pledge of Collateral under the Guarantee and Collateral Agreement in connection with such transaction and ( y ) any party to any such consolidation or merger) shall have affirmed that its obligations under the applicable Mortgage shall apply to its Guarantee as reaffirmed pursuant to clause (iv); and

(vii) the Borrower will have delivered to the Administrative Agent a certificate signed by a Responsible Officer and a legal opinion, each to the effect that such consolidation, merger or transfer complies with the provisions described in this Subsection 8.7(a) , provided that ( x ) in giving such opinion such counsel may rely on such certificate of such Responsible Officer as to compliance with the foregoing clauses (ii) and (iii) of this Subsection 8.7(a) and as to any matters of fact, and ( y ) no such legal opinion will be required for a consolidation, merger or transfer described in Subsection 8.7(d) .

(b) Any Indebtedness that becomes an obligation of the Borrower, any Successor Borrower or any Restricted Subsidiary (or that is deemed to be Incurred by any Restricted Subsidiary that becomes a Restricted Subsidiary) as a result of any such transaction undertaken in compliance with this Subsection 8.7 , and any Refinancing Indebtedness with respect thereto, shall be deemed to have been Incurred in compliance with Subsection 8.1(b)(x) .

(c) Upon any transaction involving the Borrower in accordance with Subsection 8.7(a) in which the Borrower is not the Successor Borrower, the Successor Borrower will succeed to, and be substituted for, and may exercise every right and power of, the Borrower under the Loan Documents, and thereafter the predecessor Borrower shall be relieved of all obligations and covenants under the Loan Documents, except that the predecessor Borrower in the case of a lease of all or substantially all its assets will not be released from the obligation to pay the principal of and interest on the Term Loans.

(d) Clauses (ii) and (iii) of Subsection 8.7(a) will not apply to any transaction in which the Borrower consolidates or merges with or into or transfers all or substantially all its properties and assets to ( x ) an Affiliate incorporated or organized for the purpose of reincorporating or reorganizing the Borrower in another jurisdiction or changing its legal structure to a corporation or other entity or ( y ) a Restricted Subsidiary of the Borrower so long as all assets of the Borrower and the Restricted Subsidiaries immediately prior to such transaction (other than Capital Stock of such Restricted Subsidiary) are owned by such Restricted Subsidiary and its Restricted Subsidiaries immediately after the consummation thereof. Subsection 8.7(a) will not apply to any transaction in which any Restricted Subsidiary consolidates with, merges into or transfers all or part of its assets to the Borrower or the Transactions.

 

-145-


8.8 Change of Control; Limitation on Amendments . The Borrower shall not and shall not permit any of its Restricted Subsidiaries to, directly or indirectly:

(a) in the event of the occurrence of a Change of Control, repurchase or repay any Indebtedness then outstanding pursuant to any Junior Debt or any portion thereof, unless the Borrower shall have ( i ) made payment in full of the Term Loans and any other amounts then due and owing to any Lender or the Administrative Agent hereunder and under any Note or ( ii ) made an offer to pay the Term Loans and any amounts then due and owing to each Lender and the Administrative Agent hereunder and under any Note and shall have made payment in full thereof to each such Lender or the Administrative Agent which has accepted such offer. Upon the Borrower having made all payments of Term Loans and any other amounts then due and owing to any Lender required by the preceding sentence, any Event of Default arising under Subsection 9(j ) by reason of such Change of Control shall be deemed not to have occurred or be continuing;

(b) ( 1 ) amend, supplement, waive or otherwise modify any of the provisions of any Senior Notes Debt Documents or any indenture, instrument or agreement governing any Refinancing Indebtedness in respect thereof in a manner that shortens the maturity date of such Indebtedness to a date prior to the Maturity Date of the Initial Term Loans or provides for a shorter weighted average life to maturity than the Initial Term Loans and ( 2 ) if an Event of Default under Subsection 9.1(a) or (f)  is continuing, amend, supplement, waive or otherwise modify any of the provisions of any indenture, instrument or agreement evidencing Subordinated Obligations or Guarantor Obligations in a manner that ( i ) changes the subordination provisions of such Indebtedness or ( ii ) shortens the maturity date of such Indebtedness to a date prior to the Maturity Date of the Initial Term Loans or provides for a shorter weighted average life to maturity than the remaining weighted average life to maturity of the Initial Term Loans; provided that, notwithstanding the foregoing, the provisions of this Subsection 8.8(b) shall not restrict or prohibit any refinancing of Indebtedness (in whole or in part) permitted pursuant to Subsection 8.1 ; or

(c) amend, supplement, waive or otherwise modify the terms of any Permitted Debt Exchange Notes, any Additional Obligations or any Refinancing Indebtedness in respect of the foregoing or any indenture or agreement pursuant to which such Permitted Debt Exchange Notes, Additional Obligations or Refinancing Indebtedness have been issued or incurred in any manner inconsistent with the terms of Subsection 2.7(a) , Subsection 8.1(b) , Subsection 8.6 or the definitions of “Additional Obligations”, “Refinancing Indebtedness” and “Permitted Liens” or that would result in a Default hereunder if such Permitted Debt Exchange Notes, Additional Obligations or Refinancing Indebtedness (as so amended or modified) were then being issued or incurred or, if such Permitted Debt Exchange Notes, Additional Obligations or Refinancing Indebtedness is unsecured or secured by a Lien ranking junior to the Liens securing the Term Loan Facility Obligations and an Event of Default under Subsection 9.1(a) or (f)  is then continuing, that would provide for the addition of security or a Lien ranking pari passu to the Liens securing the Term Loan Facility Obligations, as the case may be.

8.9 Limitation on Lines of Business . The Borrower shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into any business, either directly or through any Restricted Subsidiary, except for those businesses of the same general type as those in which the Borrower and its Restricted Subsidiaries are engaged in on the Restatement Effective Date or which are reasonably related thereto and any business related thereto.

 

-146-


SECTION 9

Events of Default

9.1 Events of Default . Any of the following from and after the Restatement Effective Date shall constitute an event of default:

(a) The Borrower shall fail to pay any principal of any Term Loan when due in accordance with the terms hereof (whether at stated maturity, by mandatory prepayment or otherwise); or the Borrower shall fail to pay any interest on any Term Loan, or any other amount payable hereunder, within five Business Days after any such interest or other amount becomes due in accordance with the terms hereof; or

(b) Any representation or warranty made or deemed made by any Loan Party herein or in any other Loan Document (or in any amendment, modification or supplement hereto or thereto) or which is contained in any certificate furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any such other Loan Document shall prove to have been incorrect in any material respect on or as of the date made or deemed made; or

(c) Any Loan Party shall default in the payment, observance or performance of any term, covenant or agreement contained in Section 8 ; or

(d) Any Loan Party shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other than as provided in clauses (a) through (c) of this Subsection 9.1 ), and such default shall continue unremedied for a period of 30 days after the earlier of ( A ) the date on which a Responsible Officer of the Borrower becomes aware of such failure and ( B ) the date on which written notice thereof shall have been given to the Borrower by the Administrative Agent or the Required Lenders; or

(e) Any Loan Party or any of its Restricted Subsidiaries shall ( i ) default in ( x ) any payment of principal of or interest on any Indebtedness (excluding the Term Loans) in excess of $150.0 million or ( y ) in the payment of any Guarantee Obligation of Indebtedness in excess of $150.0 million, beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness or Guarantee Obligation was created; or ( ii ) default in the observance or performance of any other agreement or condition relating to any Indebtedness (excluding the Term Loans) or Guarantee Obligation referred to in clause (i) above or contained in any instrument or agreement evidencing, securing or relating thereto (other than a failure to provide notice of a default or an event of default under such instrument or agreement), or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness or beneficiary or beneficiaries of such Guarantee Obligation (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice or lapse of time if required, such Indebtedness to become due prior to its stated maturity or such Guarantee Obligation to become payable (an “ Acceleration ”), and such time shall have lapsed and, if any notice (a “ Default Notice ”) shall be required to commence a grace period or declare the occurrence of an event of default before notice of Acceleration may be delivered, such Default Notice shall have been given and such default, event of default or condition shall not have been remedied or waived by

 

-147-


or on behalf of such holder or holders and, in the case of any such Indebtedness under the Senior ABL Facility or any Additional ABL Credit Facility only, either ( x ) such default (if other than a default in the observance or performance of a financial maintenance covenant) remains unremedied and not waived by or on behalf of such holders of such Indebtedness for a period of 60 days or ( y ) such Indebtedness under the Senior ABL Facility or such Additional ABL Credit Facility shall have been Accelerated and such Acceleration shall not have been rescinded ( provided that this clause (ii) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder); or

(f) If ( i ) the Borrower or any Material Subsidiaries of the Borrower shall commence any case, proceeding or other action ( A ) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts (excluding, in each case, the solvent liquidation or reorganization of any Foreign Subsidiary of the Borrower that is not a Loan Party), or ( B ) seeking appointment of a receiver, interim receiver, receivers, receiver and manager, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or the Borrower or any Material Subsidiaries of the Borrower shall make a general assignment for the benefit of its creditors; or ( ii ) there shall be commenced against the Borrower or any Material Subsidiaries of the Borrower any case, proceeding or other action of a nature referred to in clause (i) above which ( A ) results in the entry of an order for relief or any such adjudication or appointment or ( B ) remains undismissed, undischarged, unstayed or unbonded for a period of 60 days; or ( iii ) there shall be commenced against the Borrower or any Material Subsidiaries of the Borrower any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of an order for any such relief which shall not have been vacated, discharged, stayed or bonded pending appeal within 60 days from the entry thereof; or ( iv ) the Borrower or any Material Subsidiaries of the Borrower shall take any corporate or other similar organizational action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or ( v ) the Borrower or any Material Subsidiaries of the Borrower shall be generally unable to, or shall admit in writing its general inability to, pay its debts as they become due; or

(g) ( i ) Any Person shall engage in any “prohibited transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, ( ii ) any failure to satisfy the minimum funding standard (within the meaning of Section 412 of the Code or Section 302 of ERISA), whether or not waived, shall exist with respect to any Plan or any Lien in favor of the PBGC or a Plan shall arise on the assets of either of the Borrower or any Commonly Controlled Entity, ( iii ) a Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Single Employer Plan, which Reportable Event or commencement of proceedings or appointment of a trustee is in the reasonable opinion of the Administrative Agent likely to result in the termination of such Plan for purposes of Title IV of ERISA, ( iv ) any Single Employer Plan shall terminate for purposes of Title IV of ERISA other than a standard termination pursuant to Section 4041(b) of ERISA, ( v ) either of the Borrower or any Commonly Controlled Entity shall, or in the

 

-148-


reasonable opinion of the Administrative Agent is reasonably likely to, incur any liability in connection with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan, or ( vi ) any other event or condition shall occur or exist with respect to a Plan; and in each case in clauses (i) through (vi) above, such event or condition, together with all other such events or conditions, if any, could be reasonably expected to result in a Material Adverse Effect; or

(h) One or more judgments or decrees shall be entered against the Borrower or any of its Restricted Subsidiaries involving in the aggregate at any time a liability (net of any insurance or indemnity payments actually received in respect thereof prior to or within 60 days from the entry thereof, or to be received in respect thereof in the event any appeal thereof shall be unsuccessful) of $150.0 million or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within 60 days from the entry thereof; or

(i) ( i ) Any of the Security Documents shall cease for any reason to be in full force and effect (other than pursuant to the terms hereof or thereof), or any Loan Party which is a party to any such Security Document shall so assert in writing or ( ii ) the Lien created by any of the Security Documents shall cease to be perfected and enforceable in accordance with its terms or of the same effect as to perfection and priority purported to be created thereby with respect to any significant portion of the Term Loan Priority Collateral (other than in connection with any termination of such Lien in respect of any Collateral as permitted hereby or by any Security Document) and such failure of such Lien to be perfected and enforceable with such priority shall have continued unremedied for a period of 20 days; or

(j) Any Loan Party shall assert in writing that any of the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement (after execution and delivery thereof) or any Other Intercreditor Agreement (after execution and delivery thereof) shall have ceased for any reason to be in full force and effect (other than pursuant to the terms hereof or thereof) or shall knowingly contest, or knowingly support any other Person in any action that seeks to contest, the validity or effectiveness of any such intercreditor agreement (other than pursuant to the terms hereof or thereof); or

(k) A Change of Control shall have occurred.

9.2 Remedies Upon an Event of Default . (a) If any Event of Default occurs and is continuing, then, and in any such event, ( A ) if such event is an Event of Default specified in clause (i) or (ii) of Subsection 9.1(f) with respect to the Borrower, automatically the Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement shall immediately become due and payable, and ( B ) if such event is any other Event of Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Term Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement to be due and payable forthwith, whereupon the same shall immediately become due and payable.

(b) Except as expressly provided above in this Section 9 , presentment, demand, protest and all other notices of any kind are hereby expressly waived.

 

-149-


SECTION 10

The Agents and the Other Representatives

10.1 Appointment . (a) Each Lender hereby irrevocably designates and appoints the Agents as the agents of such Lender under this Agreement and the other Loan Documents, and each such Lender irrevocably authorizes each Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement, the other Loan Documents and the Agency Transfer Agreement and to exercise such powers and perform such duties as are expressly delegated to or required of such Agent by the terms of this Agreement, the other Loan Documents and the Agency Transfer Agreement, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the Agents and the Other Representatives shall not have any duties or responsibilities, except, in the case of the Administrative Agent and the Collateral Agent, those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement, any other Loan Document or the Agency Transfer Agreement or otherwise exist against any Agent or the Other Representatives.

(b) Each of the Agents may perform any of their respective duties under this Agreement, the other Loan Documents and any other instruments and agreements referred to herein or therein (including the Agency Transfer Agreement) by or through its respective officers, directors, agents, employees or affiliates, or delegate any and all such rights and powers to, any one or more sub-agents appointed by such Agent (it being understood and agreed, for the avoidance of doubt and without limiting the generality of the foregoing, that the Administrative Agent and the Collateral Agent may perform any of their respective duties under the Security Documents by or through one or more of their respective affiliates). Each Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as its activities as Agent.

(c) Except solely to the extent of the Borrower’s rights to consent pursuant to and subject to the conditions in Subsection 10.9 and except for Subsections 10.8(a) , (b) , (c)  and (e) , the provisions of this Section 10 are solely for the benefit of the Agents and the Lenders, and neither the Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions.

10.2 The Administrative Agent and Affiliates . Each person serving as an Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include each person serving as an Agent hereunder in its individual capacity. Such person and its affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such person were not an Agent hereunder and without any duty to account therefor to the Lenders.

 

-150-


10.3 Action by an Agent . Each Agent may execute any of its duties under this Agreement, the other Loan Documents and the Agency Transfer Agreement by or through agents or attorneys-in-fact (including the Collateral Agent in the case of the Administrative Agent), and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact or counsel selected by it with reasonable care.

10.4 Exculpatory Provisions . (a) No Agent shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents and the Agency Transfer Agreement. Without limiting the generality of the foregoing, no Agent:

(i) shall be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

(ii) shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that such Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents) or, in the case of the Former Agent, as expressly required by the Agency Transfer Agreement; provided that such Agent shall not be required to take any action that, in its judgment or the judgment of its counsel, may expose such Agent to liability or that is contrary to any Loan Document, the Agency Transfer Agreement or applicable Requirement of Law; and

(iii) shall, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the person serving as such Agent or any of its affiliates in any capacity.

(b) No Agent shall be liable for any action taken or not taken by it ( x ) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as such Agent shall believe in good faith shall be necessary, under the circumstances as provided in Subsection 11.1 ) or ( y ) in the absence of its own gross negligence or willful misconduct. No Agent shall be deemed to have knowledge of any Default unless and until notice describing such Default is given to such Agent by the Borrower or a Lender.

(c) No Agent shall be responsible for or have any duty to ascertain or inquire into ( i ) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document or the Agency Transfer Agreement, ( ii ) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, ( iii ) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, ( iv ) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any

 

-151-


other agreement, instrument or document or ( v ) the satisfaction of any condition set forth in Section 6 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to such Agent. Without limiting the generality of the foregoing, the use of the term “agent” in this Agreement with reference to the Administrative Agent or the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom and is intended to create or reflect only an administrative relationship between independent contracting parties.

(d) Each party to this Agreement acknowledges and agrees that the Administrative Agent may use an outside service provider for the tracking of all UCC financing statements required to be filed pursuant to the Loan Documents and notification to the Administrative Agent, of, among other things, the upcoming lapse or expiration thereof, and that any such service provider will be deemed to be acting at the request and on behalf of the Borrower and the other Loan Parties. No Agent shall be liable for any action taken or not taken by any such service provider.

10.5 Acknowledgement and Representations by Lenders . Each Lender expressly acknowledges that none of the Agents or the Other Representatives nor any of their officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by any Agent or any Other Representative hereafter taken, including any review of the affairs of the Borrower or any other Loan Party, shall be deemed to constitute any representation or warranty by such Agent or such Other Representative to any Lender. Each Lender further represents and warrants that it has had the opportunity to review the Confidential Information Memorandum and each other document made available to it on the Platform in connection with this Agreement and has acknowledged and accepted the terms and conditions applicable to the recipients thereof. Absent manifest error, the Administrative Agent may conclusively rely on information provided to it by the Former Agent and the Borrower with respect to the Credit Agreement prior to the Restatement Effective Date. Each Lender represents to the Agents, the Other Representatives and each of the Loan Parties that, independently and without reliance upon any Agent, the Other Representatives or any other Lender, and based on such documents and information as it has deemed appropriate, it has made and will make its own appraisal of, and investigation into, the business, operations, property, financial and other condition and creditworthiness of the Borrower and the other Loan Parties, it has made its own decision to make its Loans hereunder and enter into this Agreement and it will make its own decisions in taking or not taking any action under this Agreement and the other Loan Documents and, except as expressly provided in this Agreement, neither the Agents nor any Other Representative shall have any duty or responsibility, either initially or on a continuing basis, to provide any Lender or the holder of any Note with any credit or other information with respect thereto, whether coming into its possession before the making of the Loans or at any time or times thereafter. Each Lender represents to each other party hereto that it is a bank, savings and loan association or other similar savings institution, insurance company, investment fund or company or other financial institution which makes or acquires commercial loans in the ordinary course of its business, that it is participating hereunder as a Lender for such commercial purposes, and that it has the knowledge and experience to be and is capable of evaluating the merits and risks of being a Lender hereunder. Each Lender acknowledges and agrees to comply with the provisions of Subsection 11.6 applicable to the Lenders hereunder.

 

-152-


10.6 Indemnity; Reimbursement by Lenders . (a) To the extent that the Borrower or any other Loan Party for any reason fails to indefeasibly pay any amount required under Subsection 11.5 to be paid by it to the Administrative Agent (or any sub-agent thereof) or the Collateral Agent (or any sub-agent thereof) or any Related Party of any of the foregoing, each Lender severally agrees to pay ratably according to their respective outstanding Term Loans on the date on which the applicable unreimbursed expense or indemnity payment is sought under this Subsection 10.6 such unpaid amount (such indemnity shall be effective whether or not the related losses, claims, damages, liabilities and related expenses are incurred or asserted by any party hereto or any third party); provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the Collateral Agent (or any sub-agent thereof) or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or the Collateral Agent (or any sub-agent thereof) in connection with such capacity. The obligations of the Lenders under this Subsection 10.6 are subject to the provisions of Subsection 4.8 .

(b) Any Agent shall be fully justified in failing or refusing to take any action hereunder and under any other Loan Document or the Agency Transfer Agreement (except actions expressly required to be taken by it hereunder or under the Loan Documents or Agency Transfer Agreement) unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and all liability, cost and expense that it may incur by reason of taking or continuing to take any such action.

(c) All amounts due under this Subsection 10.6 shall be payable not later than three Business Days after demand therefor. The agreements in this Subsection 10.6 shall survive the payment of the Loans and all other amounts payable hereunder.

10.7 Right to Request and Act on Instructions; Reliance . (a) Each Agent may at any time request instructions from the Lenders with respect to any actions or approvals which by the terms of this Agreement or of any of the Loan Documents or an Agency Transfer Agreement an Agent is permitted or desires to take or to grant, and if such instructions are promptly requested, the requesting Agent shall be absolutely entitled as between itself and the Lenders to refrain from taking any action or to withhold any approval and shall not be under any liability whatsoever to any Lender for refraining from any action or withholding any approval under any of the Loan Documents or the Agency Transfer Agreement until it shall have received such instructions from Required Lenders or all or such other portion of the Lenders as shall be prescribed by this Agreement. Without limiting the foregoing, no Lender shall have any right of action whatsoever against any Agent as a result of an Agent acting or refraining from acting under this Agreement or any of the other Loan Documents or the Agency Transfer Agreement in accordance with the instructions of Required Lenders (or all or such other portion of the Lenders as shall be prescribed by this Agreement) and, notwithstanding the instructions of Required Lenders (or such other applicable portion of the Lenders), an Agent shall have no obligation to any Lender to take any action if it believes, in good faith, that such action would violate applicable law or expose an Agent to any liability for which it has not received satisfactory indemnification in accordance with the provisions of Subsection 10.6 .

 

-153-


(b) Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper person. Each Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. Each Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall be entitled to rely upon the advice of any such counsel, accountants or experts and shall not be liable for any action taken or not taken by it in accordance with such advice.

10.8 Collateral Matters . (a) Each Lender authorizes and directs the Collateral Agent to enter into ( x ) the Security Documents and the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement for the benefit of the Lenders and the other Secured Parties, ( y ) any amendments, amendments and restatements, restatements or waivers of or supplements to or other modifications to the Security Documents and the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement or enter into other intercreditor agreements in connection with the incurrence by any Loan Party or any Subsidiary thereof of Additional Indebtedness (each an “ Intercreditor Agreement Supplement ”) to permit such Additional Indebtedness to be secured by a valid, perfected lien (with such priority as may be designated by the Borrower or relevant Subsidiary, to the extent such priority is permitted by the Loan Documents) and ( z ) any Incremental Commitment Amendment as provided in Subsection 2.6 , any Increase Supplement as provided in Subsection 2.6 , any Lender Joinder Agreement as provided in Subsection 2.6 , any Specified Refinancing Amendment as provided in Subsection 2.9 , any agreement required in connection with a Permitted Debt Exchange Offer pursuant to Subsection 2.7 and any Extension Amendment as provided in Subsection 2.8 . Each Lender hereby agrees, and each holder of any Note by the acceptance thereof will be deemed to agree, that, except as otherwise set forth herein, any action taken by the Collateral Agent or the Required Lenders in accordance with the provisions of this Agreement, the Security Documents, the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement, any Intercreditor Agreement Supplement, any Incremental Commitment Amendment, any Increase Supplement, any Lender Joinder Agreement, any agreement required in connection with a Permitted Debt Exchange Offer or any Specified Refinancing Amendment and the exercise by the Agents or the Required Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders. The Collateral Agent is hereby authorized on behalf of all of the Lenders, without the necessity of any notice to or further consent from any Lender, from time to time, to take any action with respect to any applicable Collateral or Security Documents which may be necessary to perfect and maintain perfected the security interest in and liens upon the Collateral granted pursuant to the Security Documents. Each Lender agrees that it will not have any right individually to enforce or seek to enforce any Security Document or to realize upon any Collateral for the Term Loans unless instructed to do

 

-154-


so by the Collateral Agent, it being understood and agreed that such rights and remedies may be exercised only by the Collateral Agent. The Collateral Agent may grant extensions of time for the creation and perfection of security interests in or the obtaining of title insurance, legal opinions or other deliverables with respect to particular assets or the provision of any guarantee by any Subsidiary (including extensions beyond the Restatement Effective Date or in connection with assets acquired, or Subsidiaries formed or acquired, after the Restatement Effective Date) where it determines that such action cannot be accomplished without undue effort or expense by the time or times at which it would otherwise be required to be accomplished by this Agreement or the Security Documents. Each Lender consents to the releases of Collateral for the Original Credit Agreement contemplated by the Seventh Amendment and the Agency Transfer Agreement.

(b) The Lenders hereby authorize each Agent, in each case at its option and in its discretion, ( A ) to release any Lien granted to or held by such Agent upon any Collateral ( i ) upon termination of the Initial Term Loan Commitments and payment and satisfaction of all of the Term Loan Facility Obligations under the Loan Documents at any time arising under or in respect of this Agreement or the Loan Documents or the transactions contemplated hereby or thereby that are then due and unpaid, ( ii ) constituting property being sold or otherwise disposed of (to Persons other than a Loan Party) upon the sale or other disposition thereof, ( iii ) owned by any Subsidiary Guarantor which becomes an Excluded Subsidiary or ceases to be a Restricted Subsidiary of the Borrower or constituting Capital Stock or other equity interests that are Excluded Assets (as defined in the Guarantee and Collateral Agreement), ( iv ) if approved, authorized or ratified in writing by the Required Lenders (or such greater amount, to the extent required by Subsection 11.1 ) or ( iv ) as otherwise may be expressly provided in the relevant Security Documents or the Agency Transfer Agreement; (B) enter into any intercreditor agreement (including the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement) on behalf of, and binding with respect to, the Lenders and their interest in designated assets, to give effect to any Special Purpose Financing, including to clarify the respective rights of all parties in and to designated assets; ( C ) to subordinate any Lien (or confirm the absence of any Lien) on any Excluded Assets or any other property granted to or held by such Agent, as the case may be under any Loan Document to the holder of any Permitted Lien and (D) to release any Subsidiary Guarantor from its Obligations under any Loan Documents to which it is a party if such Person ceases to be a Restricted Subsidiary of the Borrower or becomes an Excluded Subsidiary. Upon request by any Agent, at any time, the Lenders will confirm in writing any Agent’s authority to release particular types or items of Collateral pursuant to this Subsection 10.8 .

(c) The Lenders hereby authorize the Administrative Agent and the Collateral Agent, as the case may be, in each case at its option and in its discretion, to enter into any amendment, amendment and restatement, restatement, waiver, supplement or modification, and to make or consent to any filings or to take any other actions, in each case as contemplated by Subsection 11.17 . Upon request by any Agent, at any time, the Lenders will confirm in writing the Administrative Agent’s and the Collateral Agent’s authority under this Subsection 10.8(c) .

(d) No Agent shall have any obligation whatsoever to the Lenders to assure that the Collateral exists or is owned by the Borrower, any of its Restricted Subsidiaries or is cared for, protected or insured or that the Liens granted to any Agent herein or pursuant hereto have

 

-155-


been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Agents in this Subsection 10.8 or in any of the Security Documents, it being understood and agreed by the Lenders that in respect of the Collateral, or any act, omission or event related thereto, each Agent may act in any manner it may deem appropriate, in its sole discretion, given such Agent’s own interest in the Collateral as a Lender and that no Agent shall have any duty or liability whatsoever to the Lenders, except for its gross negligence or willful misconduct.

(e) Notwithstanding any provision herein to the contrary, any Security Document may be amended (or amended and restated), restated, waived, supplemented or modified as contemplated by and in accordance with either Subsection 11.1 or 11.17 , as applicable, with the written consent of the Agent party thereto and the Loan Party party thereto.

(f) The Collateral Agent may, and hereby does, appoint the Administrative Agent as its agent for the purposes of holding any Collateral and/or perfecting the Collateral Agent’s security interest therein and for the purpose of taking such other action with respect to the collateral as such Agents may from time to time agree.

10.9 Successor Agent . Subject to the appointment of a successor as set forth herein, ( i ) the Administrative Agent or the Collateral Agent may be removed by the Required Lenders if the Administrative Agent, the Collateral Agent or a controlling affiliate of the Administrative Agent or the Collateral Agent is a Defaulting Lender and ( ii ) the Administrative Agent and the Collateral Agent may resign as Administrative Agent or Collateral Agent, respectively, in each case upon ten days’ notice to the Lenders and the Borrower. If the Administrative Agent or the Collateral Agent shall be removed by the Required Lenders pursuant to clause (i) above or if the Administrative Agent or the Collateral Agent shall resign as Administrative Agent or Collateral Agent, as applicable, under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which such successor agent shall be subject to approval by the Borrower; provided , that such approval by the Borrower in connection with the appointment of any successor Administrative Agent shall only be required so long as no Event of Default under Subsection 9.1(a) or (f)  has occurred and is continuing; provided further , that the Borrower shall not unreasonably withhold its approval of any successor Administrative Agent if such successor is a commercial bank with a consolidated combined capital and surplus of at least $5.0 billion; provided , further , that if no successor shall have been so appointed in accordance with the foregoing requirements and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent, in consultation with the Borrower, may appoint a successor Administrative Agent which shall be a commercial bank with a consolidated combined capital and surplus of at least $5.0 billion with an office in New York, New York, or an Affiliate of any such bank. Upon the successful appointment of a successor agent, such successor agent shall succeed to the rights, powers and duties of the Administrative Agent or the Collateral Agent, as applicable, and the term “Administrative Agent” or “Collateral Agent”, as applicable, shall mean such successor agent effective upon such appointment and approval, and the former Agent’s rights, powers and duties as Administrative Agent or Collateral Agent, as applicable, shall be terminated, without

 

-156-


any other or further act or deed on the part of such former Agent or any of the parties to this Agreement or any holders of the Term Loans. After any retiring Agent’s resignation or removal as Agent, the provisions of this Section 10 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement and the other Loan Documents. Additionally, after such retiring Agent’s resignation as such Agent, the provisions of this Subsection 10.9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was such Agent under this Agreement and the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.

10.10 Former Agent . For the avoidance of doubt, the Former Agent shall be entitled to all rights, privileges and immunities provided to an “Agent” under this Agreement and the other Loan Documents in connection with (i) its service as Administrative Agent and Collateral Agent prior to the Restatement Effective Time and (ii) its representations, warranties, undertakings and activities pursuant to the Agency Transfer Agreement.

10.11 Withholding Tax . To the extent required by any applicable law, each Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding tax, and in no event shall such Agent be required to be responsible for or pay any additional amount with respect to any such withholding. If the Internal Revenue Service or any other Governmental Authority asserts a claim that any Agent did not properly withhold tax from amounts paid to or for the account of any Lender because the appropriate form was not delivered or was not properly executed or because such Lender failed to notify such Agent of a change in circumstances which rendered the exemption from or reduction of withholding tax ineffective or for any other reason, without limiting the provisions of Subsection 4.11(a) or 4.12 , such Lender shall indemnify such Agent fully for all amounts paid, directly or indirectly, by such Agent as tax or otherwise, including any penalties or interest and together with any expenses incurred and shall make payable in respect thereof within 30 days after demand therefor. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender or such issuing lender under this Agreement or any other Loan Document against any amount due the Administrative Agent under this Subsection 10.11 . The agreements in this Subsection 10.11 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender and the repayment, satisfaction or discharge of all other Term Loan Facility Obligations.

10.12 Other Representatives . None of the entities identified as joint bookrunners and joint lead arrangers pursuant to the definition of Other Representative contained herein, shall have any duties or responsibilities hereunder or under any other Loan Document in its capacity as such. Without limiting the foregoing, no Other Representative shall have nor be deemed to have a fiduciary relationship with any Lender. At any time that any Lender serving as an Other Representative shall have transferred to any other Person (other than any of its affiliates) all of its interests in the Loans, such Lender shall be deemed to have concurrently resigned as such Other Representative.

10.13 [Reserved] .

 

-157-


10.14 Application of Proceeds . The Lenders, the Administrative Agent and the Collateral Agent agree, as among such parties, as follows: subject to the terms of the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement or any Intercreditor Agreement Supplement, after the occurrence and during the continuance of an Event of Default, all amounts collected or received by the Administrative Agent, the Collateral Agent or any Lender on account of amounts then due and outstanding under any of the Loan Documents shall, except as otherwise expressly provided herein, be applied as follows: first , to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees to the extent provided herein) due and owing hereunder of the Administrative Agent and the Collateral Agent in connection with enforcing the rights of the Agents and the Lenders under the Loan Documents (including all expenses of sale or other realization of or in respect of the Collateral and any sums advanced to the Collateral Agent or to preserve its security interest in the Collateral), second , to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees to the extent provided herein) due and owing hereunder of each of the Lenders in connection with enforcing such Lender’s rights under the Loan Documents, third , to pay interest on Loans then outstanding, fourth , to pay principal of Loans then outstanding and obligations under Interest Rate Agreements, Currency Agreements, Commodity Agreements and Bank Product Agreements permitted hereunder and secured by the Guarantee and Collateral Agreement, ratably among the applicable Secured Parties in proportion to the respective amounts described in this clause “fourth” payable to them, and fifth , to pay the surplus, if any, to whomever may be lawfully entitled to receive such surplus. To the extent any amounts available for distribution pursuant to clause “third” or “fourth” above are insufficient to pay all obligations described therein in full, such moneys shall be allocated pro rata among the applicable Secured Parties in proportion to the respective amounts described in this applicable clause at such time. This Subsection 10.14 may be amended (and the Lenders hereby irrevocably authorize the Administrative Agent to enter into any such amendment) to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new classes or tranches of loans added pursuant to Subsections 2.6 , 2.8 and 2.9 as applicable.

SECTION 11

Miscellaneous

11.1 Amendments and Waivers . (a) Neither this Agreement nor any other Loan Document, nor any terms hereof or thereof, may be amended, supplemented, modified or waived except in accordance with the provisions of this Subsection 11.1 . The Required Lenders may, or, with the written consent of the Required Lenders, the Administrative Agent may, from time to time, ( x ) enter into with the respective Loan Parties hereto or thereto, as the case may be, written amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any provisions to this Agreement or to the other Loan Documents or changing, in any manner the rights or obligations of the Lenders or the Loan Parties hereunder or thereunder or ( y ) waive at any Loan Party’s request, on such terms and conditions as the Required Lenders or the Administrative Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its consequences; provided , however , that amendments pursuant to Subsections 11.1(d) and (f)  may be effected without the consent of the Required Lenders to

 

-158-


the extent provided therein; provided further , that no such waiver and no such amendment, supplement or modification shall:

(i) ( A ) reduce or forgive the amount or extend the scheduled date of maturity of any Loan or of any scheduled installment thereof (including extending the Maturity Date), ( B ) reduce the stated rate of any interest, commission or fee payable hereunder (other than as a result of any waiver of the applicability of any post-default increase in interest rates) or postpone any date scheduled for any for payment of any interest on any Loan, ( C ) (except as provided in Subsection 11.1(d) ) increase the principal amount or extend the expiration date of any Lender’s Loans or extend the scheduled date of any payment thereof or ( D ) change the currency in which any Loan is payable, in each case without the consent of each Lender directly and adversely affected thereby (it being understood that amendments to, or waivers or modifications of any conditions precedent, representations, warranties, covenants, Defaults or Events of Default or of a mandatory repayment of the Loans of all Lenders shall not constitute an extension of the scheduled date of maturity, any scheduled installment, or the scheduled date of payment of the Loans of any Lender);

(ii) amend, modify or waive any provision of this Subsection 11.1(a) or reduce the percentage specified in the definition of “Required Lenders,” or consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, in each case without the written consent of all the Lenders; provided that, as further provided in Subsection 11.1(d) , the definition of “Required Lenders” may be amended in connection with any amendment, supplement or joinder pursuant to Subsection 2.6 , 2.8 or 2.9 to include appropriately the Lenders participating in such incremental facility, refinancing, or extension in any required vote or action of the Required Lenders;

(iii) release all or substantially all of the Guarantors under any Security Document, or, in the aggregate (in a single transaction or a series of related transactions), all or substantially all of the Collateral without the consent of all of the Lenders, except as expressly permitted hereby or by any Security Document (as such documents are in effect on the date hereof or, if later, the date of execution and delivery thereof in accordance with the terms hereof);

(iv) require any Lender to make Loans having an Interest Period of longer than six (6) months or shorter than one month without the consent of such Lender;

(v) amend, modify or waive any provision of Section 10 without the written consent of the then Agents;

(vi) amend, modify or waive any provision of Subsection 10.1(a) , 10.5 or 10.12 without the written consent of any Other Representative directly and adversely affected thereby;

(vii) amend, modify or waive any provision of Section 10 relating to the Former Agent without the written consent of the Former Agent;

 

-159-


(viii) [Reserved]; or

(ix) amend, modify or waive the order of application of payments set forth in the penultimate sentence of Subsection 4.4(a) or Subsection 4.4(d) , 4.8(a) , 10.14 or 11.7 , in each case without the consent of each lender directly and adversely affected thereby; provided that, as more fully set forth in Subsection 11.1(d) , these sections may be amended or modified in connection with any amendment, supplement or joinder pursuant to Subsection 2.6 , 2.8 or 2.9 to reflect the priorities as permitted by, and contemplated by, such Subsections with the consent of the Administrative Agent and the Lenders participating in such incremental facility, refinancing, or extension.

provided further that, notwithstanding and in addition to the foregoing, and in addition to Liens the Collateral Agent is authorized to release pursuant to Subsection 10.8(b) , the Collateral Agent may, in its discretion, release the Lien on Collateral valued in the aggregate not in excess of $30.0 million in any Fiscal Year without the consent of any Lender.

(b) Any waiver and any amendment, supplement or modification pursuant to this Subsection 11.1 shall apply to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Agents and all future holders of the Loans. In the case of any waiver, each of the Loan Parties, the Lenders and the Agents shall be restored to their former position and rights hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon.

(c) [Reserved].

(d) Notwithstanding any provision herein to the contrary, this Agreement and the other Loan Documents may be amended ( i ) to cure any ambiguity, mistake, omission, defect, or inconsistency, ( ii ) in accordance with Subsection 2.6 to incorporate the terms of any Incremental Commitments (including to add a new revolving facility under this Agreement with respect to any Incremental Revolving Commitment, ( iii ) in accordance with Subsection 2.6 to incorporate the terms of any Incremental Commitments (including to add a new revolving facility under this Agreement with respect to any Incremental Revolving Commitment, ( iv ) in accordance with Subsection 2.8 to effectuate an Extension and to provide for non- pro rata borrowings and payments of any amounts hereunder as between the Loans and any commitments in connection therewith ( v ) in accordance with Subsection 2.9 to incorporate the terms of any Specified Refinancing Facilities with the consent of the Borrower and the applicable Specified Refinancing Lenders, ( vi ) in accordance with Subsection 7.15 , to change the financial reporting convention, ( vii ) with the consent of the Borrower and the Administrative Agent (in each case such consent not to be unreasonably withheld or delayed), in the event any mandatory prepayment or redemption provision in respect of the Net Cash Proceeds of Asset Dispositions or Recovery Events or from Excess Cash Flow included or to be included in any Incremental Commitment Amendment or any Indebtedness constituting Additional Obligations or that would constitute Additional Obligations would result in Incremental Term Loans or Additional Obligations, as applicable, being prepaid or redeemed on a more than ratable basis with the Term Loans in respect of the Net Cash Proceeds from any such Asset Disposition or Recovery Event or Excess Cash Flow prepayment to the extent such Net Cash Proceeds or Excess Cash Flow are

 

-160-


required to be applied to repay Term Loans hereunder pursuant to Subsection 4.4(b) , to provide for mandatory prepayments of the Initial Term Loans such that, after giving effect thereto, the prepayments made in respect of such Incremental Term Loans or Additional Obligations, as applicable, are not on more than a ratable basis and ( viii ) to waive, amend or modify this Agreement or any other Loan Document in a manner that by its terms affects the rights or duties under this Agreement or any other Loan Document of Lenders holding Loans or Commitments of a particular Tranche (but not the Lenders holding Loans or Commitments of any other Tranche), by an agreement or agreements in writing entered into by the Borrower and the requisite percentage in interest of the Lenders with respect to such Tranche that would be required to consent thereto under this Subsection if such Lenders were the only Lenders hereunder at the time, in each case with the consent of the Administrative Agent but without the consent of any Lender (except as expressly provided in Subsection 2.6 , 2.8 or 2.9 as applicable) required, including, without limitation, as provided in Subsection 4.4(g) .

(e) Notwithstanding any provision herein to the contrary, this Agreement may be amended (or deemed amended) or amended and restated with the written consent of the Required Lenders, the Administrative Agent and the Borrower ( x ) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the existing Facilities and the accrued interest and fees in respect thereof, ( y ) to include, as appropriate, the Lenders holding such credit facilities in any required vote or action of the Required Lenders or of the Lenders of each Facility hereunder and ( z ) to provide class protection for any additional credit facilities.

(f) Notwithstanding any provision herein to the contrary, any Security Document may be amended (or amended and restated), restated, waived, supplemented or modified as contemplated by Subsection 11.17 with the written consent of the Agent party thereto and the Loan Party party thereto.

(g) If, in connection with any proposed change, waiver, discharge or termination of or to any of the provisions of this Agreement and/or any other Loan Document as contemplated by Subsection 11.1(a) , the consent of each Lender or each affected Lender, as applicable, is required and the consent of the Required Lenders at such time is obtained but the consent of one or more of such other Lenders whose consent is required is not obtained (each such Lender, a “ Non-Consenting Lender ”), then the Borrower may, on notice to the Administrative Agent and the Non-Consenting Lender, ( A ) replace such Non-Consenting Lender by causing such Lender to (and such Lender shall be obligated to) assign pursuant to Subsection 11.6 (with the assignment fee and any other costs and expenses to be paid by the Borrower in such instance) all of its rights and obligations under this Agreement to one or more assignees; provided that neither the Administrative Agent nor any Lender shall have any obligation to the Borrower to find a replacement Lender; provided , further , that the applicable assignee shall have agreed to the applicable change, waiver, discharge or termination of this Agreement and/or the other Loan Documents; and provided , further , that all obligations of the Borrower owing to the Non-Consenting Lender relating to the Loans and participations so assigned shall be paid in full by the assignee Lender (or, at the Borrower’s option, by the Borrower) to such Non-Consenting Lender concurrently with such Assignment and Acceptance or ( B ) so long as no Event of Default under Subsection 9.1(a) or (f)  then exists or will exist immediately after giving effect to the

 

-161-


respective prepayment, upon notice to the Administrative Agent, prepay the Loans and, if applicable, terminate the commitments of such Non-Consenting Lender, in whole or in part, subject to Subsection 4.12 , without premium or penalty. In connection with any such replacement under this Subsection 11.1(g) , if the Non-Consenting Lender does not execute and deliver to the Administrative Agent a duly completed Assignment and Acceptance and/or any other documentation necessary to reflect such replacement by the later of ( a ) the date on which the replacement Lender executes and delivers such Assignment and Acceptance and/or such other documentation and ( b ) the date as of which all obligations of the Borrower owing to the Non-Consenting Lender relating to the Loans and participations so assigned shall be paid in full by the assignee Lender to such Non-Consenting Lender, then such Non-Consenting Lender shall be deemed to have executed and delivered such Assignment and Acceptance and/or such other documentation as of such date and the Borrower shall be entitled (but not obligated) to execute and deliver such Assignment and Acceptance and/or such other documentation on behalf of such Non-Consenting Lender.

11.2 Notices . (a) All notices, requests, and demands to or upon the respective parties hereto to be effective shall be in writing (including telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered by hand, or three days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, or, in the case of delivery by a nationally recognized overnight courier, when received, addressed as follows in the case of the Borrower, the Administrative Agent and the Collateral Agent, and as set forth in the applicable Administrative Questionnaire in the case of any Lender, or to such other address as may be hereafter notified by the respective parties hereto and any future holders of the Loans:

 

The Borrower    Envision Healthcare Corporation
   6363 S. Fiddlers Green Circle
   14th Floor
   Greenwood Village, Colorado 80111
   Attention: General Counsel
   Facsimile: (303) 495-1800
   Telephone: (303) 495-1254
   and
   Envision Healthcare Corporation
  

1 Burton Hills Blvd.

Nashville, TN 37215

   Attention: Chief Financial Officer
   Facsimile: (615) 234-1426
   Telephone: (615) 665-1283

 

-162-


With copies to:    Debevoise & Plimpton LLP
   919 Third Avenue
   New York, New York 10022
   Attention: Jeffrey E. Ross, Esq.
   Facsimile: (212) 521-7465
   Telephone: (212) 909-6465
The Administrative Agent/the Collateral    JPMorgan Chase Bank, N.A.
   10 S Dearborn St L2
   Chicago IL 60603
   Attention: Leonida Mischke
  

Facsimile: 844-490-5663

EMAIL: leonida.g.mischke@jpmorgan.com ; jpm.agency.cri@jpmorgan.com

   Telephone: 312-385-7055

provided that any notice, request or demand to or upon the Administrative Agent or the Lenders pursuant to Subsection 4.2 , 4.4 or 4.8 shall not be effective until received.

(b) Without in any way limiting the obligation of any Loan Party and its Subsidiaries to confirm in writing any telephonic notice permitted to be given hereunder, the Administrative Agent may, prior to receipt of written confirmation, act without liability upon the basis of such telephonic notice, believed by the Administrative Agent in good faith to be from a Responsible Officer of a Loan Party.

(c) Loan Documents may be transmitted and/or signed by facsimile or other electronic means ( i.e. , a “pdf” or “tif”). The effectiveness of any such documents and signatures shall, subject to applicable law, have the same force and effect as manually signed originals and shall be binding on each Loan Party, each Agent and each Lender. The Administrative Agent may also require that any such documents and signatures be confirmed by a manually signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any facsimile or other electronic document or signature.

(d) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including electronic mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent. Unless the Administrative Agent otherwise prescribes (with the Borrower’s consent), ( i ) notices and other communications sent to an e-mail address shall be deemed to have been duly made or given when delivered, provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient, and ( ii ) notices or communications posted to an Internet or intranet website shall be deemed received upon the posting thereof.

 

-163-


11.3 No Waiver; Cumulative Remedies . No failure to exercise and no delay in exercising, on the part of any Agent, any Lender or any Loan Party, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

11.4 Survival of Representations and Warranties . All representations and warranties made hereunder and in the other Loan Documents (or in any amendment, modification or supplement hereto or thereto) and in any certificate delivered pursuant hereto or such other Loan Documents shall survive the execution and delivery of this Agreement and the making of the Loans hereunder.

11.5 Payment of Expenses and Taxes . The Borrower agrees ( a ) to pay or reimburse the Agents and the Other Representatives for ( 1 ) all their reasonable out-of-pocket costs and expenses incurred in connection with ( i ) the syndication of the Facilities and the development, preparation, execution and delivery of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith (including the Agency Transfer Agreement), ( ii ) the consummation and administration of the transactions (including the syndication of the Initial Term Loan Commitments) contemplated hereby and thereby (including the Agency Transfer Agreement) and ( iii ) efforts to monitor the Loans and verify, protect, evaluate, assess, appraise, collect, sell, liquidate or otherwise dispose of any of the Collateral, and ( 2 ) the reasonable fees and disbursements of Cahill Gordon & Reindel LLP (and, with respect to the Former Agent’s activities pursuant to the Agency Transfer Agreement, White & Case LLP), and such other special or local counsel, consultants, advisors, appraisers and auditors whose retention (other than during the continuance of an Event of Default) is approved by the Borrower, ( b ) to pay or reimburse each Lender, each Lead Arranger and the Agents for all their reasonable costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement, the other Loan Documents and any other documents prepared in connection herewith or therewith, including the fees and disbursements of counsel to the Agents and the Lenders, ( c ) to pay, indemnify, or reimburse each Lender, each Lead Arranger and the Agents for, and hold each Lender, each Lead Arranger and the Agents harmless from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any delay in paying, any stamp, documentary, excise and other similar taxes, if any, which may be payable or determined to be payable in connection with the execution, delivery or enforcement of, or consummation or administration of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan Documents and any such other documents, and ( d ) to pay, indemnify or reimburse each Lender, each Lead Arranger, each Agent (and any sub-agent thereof) and each Related Party of any of the foregoing Persons (each, an “ Indemnitee ”) for, and hold each Indemnitee harmless from and against, any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents, the Agency Transfer Agreement and any such other documents, including any of the foregoing relating to the use of proceeds of the Loans, the

 

-164-


violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of the Borrower or any of its Restricted Subsidiaries or any of the property of the Borrower or any of its Restricted Subsidiaries, of any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Loan Party and regardless of whether any Indemnitee is a party thereto (all the foregoing in this clause (d), collectively, the “ Indemnified Liabilities ”), provided that the Borrower shall not have any obligation hereunder to the Administrative Agent, any Other Representative, any other Agent or any Lender (or any Related Party of any of the foregoing Persons) with respect to Indemnified Liabilities arising from ( i ) the gross negligence, bad faith or willful misconduct of such Agent (and any sub-agent thereof), such Other Representative or any such Lender (or any Related Party of such Agent, Other Representative or Lender), as the case may be, as determined by a court of competent jurisdiction in a final and non-appealable decision, ( ii ) a material breach of the Loan Documents or the Agency Transfer Agreement by such Agent, Other Representative or Lender (or any Related Party of such Agent, Other Representative or Lender), as the case may be, as determined by a court of competent jurisdiction in a final and non-appealable decision or ( iii ) claims against such Indemnitee or any Related Party brought by any other Indemnitee that do not involve any Lead Arranger or Agent in its capacity as such and claims arising out of or in connection with or by reason of any act or omission of any Loan Party or any of its Affiliates. No Indemnitee shall be liable for any consequential or punitive damages in connection with the Facilities. All amounts due under this Subsection 11.5 shall be payable not later than 30 days after written demand therefor. Statements reflecting amounts payable by the Loan Parties pursuant to this Subsection 11.5 shall be submitted to the address of the Borrower set forth in Subsection 11.2 , or to such other Person or address as may be hereafter designated by the Borrower in a notice to the Administrative Agent. Notwithstanding the foregoing, except as provided in Subsections 11.5(b) and (c)  above, the Borrower shall have no obligation under this Subsection 11.5 to any Indemnitee with respect to any tax, levy, impost, duty, charge, fee, deduction or withholding imposed, levied, collected, withheld or assessed by any Governmental Authority. The agreements in this Subsection 11.5 shall survive repayment of the Loans and all other amounts payable hereunder.

11.6 Successors and Assigns; Participations and Assignments . (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that ( i ) other than in accordance with Subsection 8.7 , none of the Loan Parties may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by any Loan Party without such consent shall be null and void) and ( ii ) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Subsection 11.6 .

 

-165-


(b) (i) Subject to the conditions set forth in Subsection 11.6(b)(ii) below, any Lender other than a Conduit Lender may, in the ordinary course of business and in accordance with applicable law, assign (other than to a Disqualified Lender or any natural person) to one or more assignees (each, an “ Assignee ”) all or a portion of its rights and obligations under this Agreement (including its Term Loans, pursuant to an Assignment and Acceptance) with the prior written consent (such consent not to be unreasonably withheld or delayed) of:

(A) the Borrower, provided that no consent of the Borrower shall be required for an assignment ( x ) to a Lender, an Affiliate of a Lender, or an Approved Fund (as defined below); provided , that if any Lender assigns all or a portion of its rights and obligations under this Agreement to one of its Affiliates in connection with or in contemplation of the sale or other disposition of its interest in such Affiliate, the Borrower’s prior written consent shall be required for such assignment, and, ( y ) if an Event of Default under Subsection 9.1(a) or (f)  has occurred and is continuing, to any other Person; and

(B) the Administrative Agent (such consent not to be unreasonably withheld), provided that no consent of the Administrative Agent shall be required for an assignment ( x ) to a Lender, an Affiliate of a Lender, or an Approved Fund.

(ii) Assignments shall be subject to the following additional conditions:

(A) except in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender’s Initial Term Loan Commitments, Incremental Commitments or Loans under any Facility, the amount of the Initial Term Loan Commitments, Incremental Commitments or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent) shall be in an amount of an integral multiple of $1.0 million unless the Borrower and the Administrative Agent otherwise consent, provided that ( 1 ) no such consent of the Borrower shall be required if an Event of Default under Subsection 9.1(a) or (f)  has occurred and is continuing and ( 2 ) such amounts shall be aggregated in respect of each Lender and its Affiliates or Approved Funds, if any;

(B) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500 (unless waived by the Administrative Agent in any given case);

(C) the Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and

(D) any assignment of Incremental Commitments or Loans to any Parent Entity, the Borrower or any Subsidiary of the Borrower shall also be subject to the requirements of Subsections 11.6(h) .

For the purposes of this Subsection 11.6 , the term “ Approved Fund ” has the following meaning: “ Approved Fund ” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course and that is administered or managed by ( a ) a Lender, ( b ) an Affiliate of a Lender or ( c ) an entity or an Affiliate of an entity that administers or manages a Lender. Notwithstanding the foregoing, no Lender shall be permitted to make assignments under this Agreement to any Disqualified Lender.

 

-166-


(iii) Subject to acceptance and recording thereof pursuant to clause (b)(iv) below, from and after the effective date specified in each Assignment and Acceptance the Assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of (and bound by any related obligations under) Subsections 4.10 , 4.11 , 4.12 , 4.13 and 11.5 , and bound by its continuing obligations under Subsection 11.16 ). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Subsection 11.6 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with clause (c) of this Subsection 11.6 .

(iv) The Borrower hereby designates the Administrative Agent, and the Administrative Agent agrees, to serve as the Borrower’s agent, solely for purposes of this Subsection 11.6 , to maintain at one of its offices in New York, New York a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Initial Term Loan Commitments or Incremental Commitments of, and interest and principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “ Register ”). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

(v) Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “ Participant Register ”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and a Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

 

-167-


(vi) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender and an Assignee (unless such assignment is being made in accordance with Subsection 2.8(e) , Subsection 4.13(d) , Subsection 11.1(g) or Subsection 11.6(f) in which case the effectiveness of such Assignment and Acceptance shall not require execution by the assigning Lender), the Assignee’s completed Administrative Questionnaire (unless the Assignee shall already be a Lender hereunder), the processing and recordation fee referred to in Subsection 11.6(b) and any written consent to such assignment required by Subsection 11.6(b) , the Administrative Agent shall accept such Assignment and Acceptance, record the information contained therein in the Register and give prompt notice of such assignment and recordation to the Borrower. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this clause (vi).

(vii) On or prior to the effective date of any assignment pursuant to this Subsection 11.6(b) , the assigning Lender shall surrender any outstanding Notes held by it, all or a portion of which are being assigned. Any Notes surrendered by the assigning Lender shall be returned by the Administrative Agent to the Borrower marked “cancelled”.

Notwithstanding the foregoing provisions of this Subsection 11.6(b) or any other provision of this Agreement, if the Borrower shall have consented thereto in writing in its sole discretion, the Administrative Agent shall have the right, but not the obligation, to effectuate assignments of Loans, Incremental Commitments and Initial Term Loan Commitments via an electronic settlement system acceptable to Administrative Agent and the Borrower as designated in writing from time to time to the Lenders by Administrative Agent (the “ Settlement Service ”). At any time when the Administrative Agent elects, in its sole discretion, to implement such Settlement Service, each such assignment shall be effected by the assigning Lender and proposed Assignee pursuant to the procedures then in effect under the Settlement Service, which procedures shall be subject to the prior written approval of the Borrower and shall be consistent with the other provisions of this Subsection 11.6(b) . Each assigning Lender and proposed Assignee shall comply with the requirements of the Settlement Service in connection with effecting any assignment of Loans, Incremental Commitments and Initial Term Loan Commitments pursuant to the Settlement Service. Assignments and assumptions of Loans, Incremental Commitments and Initial Term Loan Commitments shall be effected by the provisions otherwise set forth herein until the Administrative Agent notifies the Lenders of the Settlement Service as set forth herein. The Borrower may withdraw its consent to the use of the Settlement Service at any time upon notice to the Administrative Agent, and thereafter assignments and assumptions of the Loans, Incremental Commitments and Initial Term Loan Commitments shall be effected by the provisions otherwise set forth herein. All notices and consents required pursuant to this paragraph shall be deemed to have been provided on the Restatement Effective Date with respect to ClearPar.

Furthermore, no Assignee, which as of the date of any assignment to it pursuant to this Subsection 11.6(b) would be entitled to receive any greater payment under Subsection 4.10 , 4.11, 4.12 or 11.5 than the assigning Lender would have been entitled to receive as of such date under such Subsections with respect to the rights assigned, shall, notwithstanding anything to the contrary in this Agreement, be entitled to receive such greater payments unless the assignment

 

-168-


was made after an Event of Default under Subsection 9.1(a) or (f)  has occurred and is continuing or the Borrower has expressly consented in writing to waive the benefit of this provision at the time of such assignment.

Notwithstanding the foregoing provisions of this Subsection 11.6(b) , nothing in this Subsection 11.6(b) is intended to or should be construed to limit the Borrower’s right to prepay the Term Loans as provided in Subsection 4.4(c) , 4.4(h) , 4.13(d) or 11.1(g) .

(c) (i) Any Lender other than a Conduit Lender may, in the ordinary course of its business and in accordance with applicable law, without the consent of the Borrower or the Administrative Agent, sell participations (other than to any Disqualified Lender, or a natural person or the Borrower or any of the Borrower’s Affiliates or its Subsidiaries to one or more banks or other entities (a “ Participant ”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Initial Term Loan Commitments, Incremental Commitments and the Loans owing to it); provided that ( A ) such Lender’s obligations under this Agreement shall remain unchanged, ( B ) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, ( C ) such Lender shall remain the holder of any such Loan for all purposes under this Agreement and the other Loan Documents and ( D ) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement; provided that such agreement may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver that ( 1 ) requires the consent of each Lender directly affected thereby pursuant to the second proviso to the second sentence of Subsection 11.1(a) and ( 2 ) directly affects such Participant. Subject to Subsection 11.6(c)(ii) , the Borrower agrees that each Participant shall be entitled to the benefits of (and shall have the related obligations under) Subsections 4.10 , 4.11 , 4.12 , 4.13 and 11.5 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Subsection 11.6(b) . To the extent permitted by law, each Participant also shall be entitled to the benefits of Subsection 11.7(b) as though it were a Lender, provided that such Participant shall be subject to Subsection 11.7(a) as though it were a Lender. Notwithstanding the foregoing, no Lender shall be permitted to sell participations under this Agreement to any Disqualified Lender.

(ii) No Loan Party shall be obligated to make any greater payment under Subsection 4.10 , 4.11 or 11.5 than it would have been obligated to make in the absence of any participation, unless the sale of such participation is made with the prior written consent of the Borrower and the Borrower expressly waives the benefit of this provision at the time of such participation. Any Participant that is not incorporated under the laws of the United States of America or a state thereof shall not be entitled to the benefits of Subsection 4.11 unless such Participant complies with Subsection 4.11(b) and provides the forms and certificates referenced therein to the Lender that granted such participation.

(d) Any Lender, without the consent of the Borrower or the Administrative Agent, may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Subsection 11.6 shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute (by foreclosure or otherwise) any such pledgee or Assignee for such Lender as a party hereto.

 

-169-


(e) No assignment or participation made or purported to be made to any Assignee or Participant shall be effective without the prior written consent of the Borrower if it would require the Borrower to make any filing with any Governmental Authority or qualify any Loan or Note under the laws of any jurisdiction, and the Borrower shall be entitled to request and receive such information and assurances as it may reasonably request from any Lender or any Assignee or Participant to determine whether any such filing or qualification is required or whether any assignment or participation is otherwise in accordance with applicable law.

(f) Notwithstanding the foregoing, any Conduit Lender may assign any or all of the Loans it may have funded hereunder to its designating Lender without the consent of the Borrower or the Administrative Agent and without regard to the limitations set forth in Subsection 11.6(b) . The Borrower, each Lender and the Administrative Agent hereby confirms that it will not institute against a Conduit Lender or join any other Person in instituting against a Conduit Lender any domestic or foreign bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any state, federal or provincial bankruptcy or similar law, for one year and one day after the payment in full of the latest maturing commercial paper note issued by such Conduit Lender; provided , however , that each Lender designating any Conduit Lender hereby agrees to indemnify, save and hold harmless each other party hereto for any loss, cost, damage or expense arising out of its inability to institute such a proceeding against such Conduit Lender during such period of forbearance. Each such indemnifying Lender shall pay in full any claim received from the Borrower pursuant to this Subsection 11.6(f) within 30 Business Days of receipt of a certificate from a Responsible Officer of the Borrower specifying in reasonable detail the cause and amount of the loss, cost, damage or expense in respect of which the claim is being asserted, which certificate shall be conclusive absent manifest error. Without limiting the indemnification obligations of any indemnifying Lender pursuant to this Subsection 11.6(f) , in the event that the indemnifying Lender fails timely to compensate the Borrower for such claim, any Loans held by the relevant Conduit Lender shall, if requested by the Borrower, be assigned promptly to the Lender that administers the Conduit Lender and the designation of such Conduit Lender shall be void.

(g) If the Borrower wishes to replace the Loans under any Facility with ones having different terms, it shall have the option, with the consent of the Administrative Agent and subject to at least three Business Days’ (or such shorter period as agreed to by the Administrative Agent in its reasonable discretion) advance notice to the Lenders under such Facility, instead of prepaying the Loans to be replaced, to ( i ) require the Lenders under such Facility to assign such Loans to the Administrative Agent or its designees and ( ii ) amend the terms thereof in accordance with Subsection 11.1 . Pursuant to any such assignment, all Loans to be replaced shall be purchased at par (allocated among the Lenders under such Facility in the same manner as would be required if such Loans were being optionally prepaid by the Borrower), accompanied by payment of any accrued interest and fees thereon and any amounts owing pursuant to Subsection 4.12 . By receiving such purchase price, the Lenders under such Facility shall automatically be deemed to have assigned the Loans under such Facility pursuant to the terms of the form of the Assignment and Acceptance, and accordingly no other action by such Lenders shall be required in connection therewith. The provisions of this clause (g) are intended to facilitate the maintenance of the perfection and priority of existing security interests in the Collateral during any such replacement.

 

-170-


(h) (i) Notwithstanding anything to the contrary contained herein, ( x ) any Lender may, at any time, assign all or a portion of its rights and obligations under this Agreement in respect of its Loans or Commitments to any Parent Entity, the Borrower or any Subsidiary and ( y ) any Parent Entity, the Borrower and any Subsidiary may, from time to time, purchase or prepay Loans, in each case, on a non-pro rata basis through ( 1 ) Dutch auction procedures open to all applicable Lenders on a pro rata basis in accordance with customary procedures to be agreed between the Borrower and the Administrative Agent (or other applicable agent managing such auction); provided that ( A ) any such Dutch auction by the Borrower or its Subsidiaries shall be made in accordance with Subsection 4.4(h) and ( B ) any such Dutch auction by any Parent Entity shall be made on terms substantially similar to Subsection 4.4(h) or on other terms to be agreed between such Parent Entity and the Administrative Agent (or other applicable agent managing such auction) or ( 2 ) open market purchases; provided further that:

(ii) any such assignment shall not be permitted so long as an Event of Default under Subsection 9.1(a) or (f)  has occurred and is continuing; and

(iii) the Borrower or a Subsidiary execute and deliver to the Administrative Agent an assignment agreement substantially in the form of Exhibit M hereto (an “ Affiliated Lender Assignment and Assumption ”);

(iv) any such Term Loans acquired by the Borrower or a Subsidiary shall be retired or cancelled promptly upon the acquisition thereof.

11.7 Adjustments; Set-off; Calculations; Computations . (a) If any Lender (a “ Benefited Lender ”) shall at any time receive any payment of all or part of its Loans, or interest thereon, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in Subsection 9.1(f) , or otherwise (except pursuant to Subsection 2.7 , 2.8 , 2.9 4.4 , 4.5(b), 4.9 , 4.10 , 4.11 , 4.12 , 4.13(d) , 4.14 11.1 (g) or 11.6 )), in a greater proportion than any such payment to or collateral received by any other Lender, if any, in respect of such other Lender’s Loans owing to it, or interest thereon, such Benefited Lender shall purchase for cash from the other Lenders an interest (by participation, assignment or otherwise) in such portion of each such other Lender’s Loans owing to it, or shall provide such other Lenders with the benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to share the excess payment or benefits of such collateral or proceeds ratably with each of the Lenders; provided , however , that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.

(b) In addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, upon the occurrence of an Event of Default under Subsection 9.1(a) to set off and appropriate and apply against any amount then due and payable under Subsection 9.1(a) by the Borrower any and all deposits (general or

 

-171-


special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of the Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such set-off and application made by such Lender, provided that the failure to give such notice shall not affect the validity of such set-off and application. Notwithstanding anything to the contrary in any Loan Document, any Secured Party and its Affiliates (and each Participant of any Lender or any of its Affiliates) that is a Government Accounts Receivable Bank shall not have the right and hereby expressly waives any rights it might otherwise have, to set off or appropriate and apply any or all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held by or owing to such Secured Party or its Affiliates (and each Participant of any Lender or any of its Affiliates) or any branch or agency thereof in a Government Receivables Deposit Account (but no other deposit account or any subsequent accounts to which the proceeds of Government Accounts Receivable may be transferred) to or for the credit or the account of the Borrower or any Guarantor, in each case to the extent necessary for the Loan Parties to remain in compliance with Medicare, Medicaid, TRICARE, CHAMPVA or any other similar or replacement laws, rules or regulations of a Governmental Authority, as amended or reenacted from time to time.

11.8 Judgment . (a) If, for the purpose of obtaining or enforcing judgment against any Loan Party in any court in any jurisdiction, it becomes necessary to convert into any other currency (such other currency being hereinafter in this Subsection 11.8 referred to as the “ Judgment Currency ”) an amount due under any Loan Document in any currency (the “ Obligation Currency ”) other than the Judgment Currency, the conversion shall be made at the rate of exchange prevailing on the Business Day immediately preceding the date of actual payment of the amount due, in the case of any proceeding in the courts of any other jurisdiction that will give effect to such conversion being made on such date, or the date on which the judgment is given, in the case of any proceeding in the courts of any other jurisdiction (the applicable date as of which such conversion is made pursuant to this Subsection 11.8 being hereinafter in this Subsection 11.8 referred to as the “ Judgment Conversion Date ”).

(b) If, in the case of any proceeding in the court of any jurisdiction referred to in Subsection 11.8(a) , there is a change in the rate of exchange prevailing between the Judgment Conversion Date and the date of actual receipt for value of the amount due, the applicable Loan Party shall pay such additional amount (if any, but in any event not a lesser amount) as may be necessary to ensure that the amount actually received in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of the Judgment Currency stipulated in the judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date. Any amount due from any Loan Party under this Subsection 11.8(b) shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of any of the Loan Documents.

(c) The term “rate of exchange” in this Subsection 11.8 means the rate of exchange at which the Administrative Agent, on the relevant date at or about 12:00 noon (New York time), would be prepared to sell, in accordance with its normal course foreign currency exchange practices, the Obligation Currency against the Judgment Currency.

 

-172-


11.9 Counterparts . This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by facsimile and other electronic transmission), and all of such counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Agreement signed by all the parties shall be delivered to the Borrower and the Administrative Agent.

11.10 Severability . Any provision of this Agreement which 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 any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

11.11 Integration . This Agreement and the other Loan Documents represent the entire agreement of each of the Loan Parties party hereto, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by any of the Loan Parties party hereto, the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

11.12 Governing Law . THIS AGREEMENT AND ANY NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT AND ANY NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

11.13 Submission to Jurisdiction; Waivers . Each party hereto hereby irrevocably and unconditionally:

(a) submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party to the exclusive general jurisdiction of the Supreme Court of the State of New York for the County of New York (the “ New York Supreme Court ”), and the United States District Court for the Southern District of New York (the “ Federal District Court ,” and together with the New York Supreme Court, the “ New York Courts ”) and appellate courts from either of them; provided that nothing in this Agreement shall be deemed or operate to preclude ( i ) any Agent from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Term Loan Facility Obligations (in which case any party shall be entitled to assert any claim or defense, including any claim or defense that this Subsection 11.13 would otherwise require to be asserted in a legal action or proceeding in a New York Court), or to enforce a judgment or other court order in favor of the Administrative Agent or the Collateral Agent, ( ii ) any party from bringing any legal action or proceeding in any jurisdiction for the recognition and enforcement of

 

-173-


any judgment, ( iii ) if all such New York Courts decline jurisdiction over any Person, or decline (or in the case of the Federal District Court, lack) jurisdiction over any subject matter of such action or proceeding, a legal action or proceeding may be brought with respect thereto in another court having jurisdiction and ( iv ) in the event a legal action or proceeding is brought against any party hereto or involving any of its assets or property in another court (without any collusive assistance by such party or any of its Subsidiaries or Affiliates), such party from asserting a claim or defense (including any claim or defense that this Subsection 11.13(a) would otherwise require to be asserted in a legal proceeding in a New York Court) in any such action or proceeding.

(b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient forum and agrees not to plead or claim the same;

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Borrower, the applicable Lender or the Administrative Agent, as the case may be, at the address specified in Subsection 11.2 or at such other address of which the Administrative Agent, any such Lender and the Borrower shall have been notified pursuant thereto;

(d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or (subject to clause (a) above) shall limit the right to sue in any other jurisdiction; and

(e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Subsection 11.13 any consequential or punitive damages.

11.14 Acknowledgements . The Borrower hereby acknowledges that:

(a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents;

(b) neither any Agent nor any Other Representative or Lender has any fiduciary relationship with or duty to the Borrower arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Administrative Agent and Lenders, on the one hand, and the Borrower, on the other hand, in connection herewith or therewith is solely that of creditor and debtor; and

(c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby and thereby among the Lenders or among the Borrower and the Lenders.

11.15 Waiver of Jury Trial . EACH OF THE BORROWER, THE AGENTS AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY NOTES OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

-174-


11.16 Confidentiality . (a) Each Agent and each Lender agrees to keep confidential any information ( a ) provided to it by or on behalf of the Borrower or any of their respective Subsidiaries pursuant to or in connection with the Loan Documents or ( b ) obtained by such Lender based on a review of the books and records of the Borrower or any of their respective Subsidiaries; provided that nothing herein shall prevent any Lender from disclosing any such information ( i ) to any Agent, any Other Representative or any other Lender, ( ii ) to any Transferee, or prospective Transferee or any creditor or any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations which agrees to comply with the provisions of this Subsection 11.16 pursuant to a written instrument (or electronically recorded agreement from any Person listed above in this clause (ii), in respect to any electronic information (whether posted or otherwise distributed on any Platform)) for the benefit of the Borrower (it being understood that each relevant Lender shall be solely responsible for obtaining such instrument (or such electronically recorded agreement)), ( iii ) to its affiliates and the employees, officers, partners, directors, agents, attorneys, accountants and other professional advisors of it and its affiliates, provided that such Lender shall inform each such Person of the agreement under this Subsection 11.16 and take reasonable actions to cause compliance by any such Person referred to in this clause (iii) with this agreement (including, where appropriate, to cause any such Person to acknowledge its agreement to be bound by the agreement under this Subsection 11.16 ), ( iv ) upon the request or demand of any Governmental Authority having jurisdiction over such Lender or its affiliates or to the extent required in response to any order of any court or other Governmental Authority or as shall otherwise be required pursuant to any Requirement of Law, provided that, other than with respect to any disclosure to any bank regulatory authority, such Lender shall, unless prohibited by any Requirement of Law, notify the Borrower of any disclosure pursuant to this clause (iv) as far in advance as is reasonably practicable under such circumstances, ( v ) which has been publicly disclosed other than in breach of this Agreement, ( vi ) in connection with the exercise of any remedy hereunder, under any Loan Document or under any Interest Rate Agreement, ( vii ) in connection with periodic regulatory examinations and reviews conducted by the National Association of Insurance Commissioners or any Governmental Authority having jurisdiction over such Lender or its affiliates (to the extent applicable), ( viii ) in connection with any litigation to which such Lender (or, with respect to any Interest Rate Agreement, any affiliate of any Lender party thereto) may be a party subject to the proviso in clause (iv) above, and ( ix ) if, prior to such information having been so provided or obtained, such information was already in an Agent’s or a Lender’s possession on a non-confidential basis other than from a third party that is, to such agent’s or Lender’s knowledge, in breach of any confidentiality obligation owing to the Parent Borrower or any of its Subsidiaries with respect to such information. Notwithstanding any other provision of this Agreement, any other Loan Document or any Assignment and Acceptance, the provisions of this Subsection 11.16 shall survive with respect to each Agent and Lender until the second anniversary of such Agent or Lender ceasing to be an Agent or a Lender, respectively.

(b) Each Lender acknowledges that any such information referred to in Subsection 11.16(a) , and any information (including requests for waivers and amendments) furnished by the Borrower or the Administrative Agent pursuant to or in connection with this

 

-175-


Agreement and the other Loan Documents, may include material non-public information concerning the Borrower, the other Loan Parties and their respective Affiliates or their respective securities. Each Lender represents and confirms that such Lender has developed compliance procedures regarding the use of material non-public information; that such Lender will handle such material non-public information in accordance with those procedures and applicable law, including United States federal and state securities laws; and that such Lender has identified to the Administrative Agent a credit contact who may receive information that may contain material non-public information in accordance with its compliance procedures and applicable law. The Borrower hereby agrees that, subject to Subsection 11.16(a) , the Administrative Agent may post the Loan Documents, any financial statements delivered pursuant to Subsection 7.1(a) or (b)  and the list of Disqualified Institutions (collectively, the “ Public Materials ”) to a portion of the Platform available to Lenders that wish to receive only information that ( i ) is publicly available or ( ii ) is not material with respect to the Borrower, its Affiliates or any of their respective securities for purposes of United States federal and state securities laws (“ Public Information ”) and authorizes Lenders that receive such Public Materials to treat such Public Materials as not containing information that is not Public Information.

11.17 Incremental Indebtedness; Additional Indebtedness . In connection with the Incurrence by any Loan Party or any Subsidiary thereof of any Incremental Indebtedness, Specified Refinancing Indebtedness or Additional Indebtedness, each of the Administrative Agent and the Collateral Agent agree to execute and deliver the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement, or any Other Intercreditor Agreement or any Intercreditor Agreement Supplement and amendments, amendments and restatements, restatements or waivers of or supplements to or other modifications to, any Security Document (including but not limited to any Mortgages and UCC fixture filings), and to make or consent to any filings or take any other actions in connection therewith, as may be reasonably deemed by the Borrower to be necessary or reasonably desirable for any Lien on the assets of any Loan Party permitted to secure such Incremental Indebtedness, Specified Refinancing Indebtedness or Additional Indebtedness to become a valid, perfected lien (with such priority as may be designated by the relevant Loan Party or Subsidiary, to the extent such priority is permitted by the Loan Documents) pursuant to the Security Document being so amended, amended and restated, restated, waived, supplemented or otherwise modified or otherwise.

11.18 USA PATRIOT Act Notice . Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub.L. 107-56 (signed into law October 26, 2001)) (the “ PATRIOT Act ”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the PATRIOT Act, and the Borrower agrees to provide such information from time to time to any Lender.

11.19 Electronic Execution of Assignments and Certain Other Documents . The words “execution”, “signed”, “signature”, and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and

 

-176-


as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

11.20 Reinstatement . This Agreement shall remain in full force and effect and continue to be effective should any petition or other proceeding be filed by or against any Loan Party for liquidation or reorganization, should any Loan Party become insolvent or make an assignment for the benefit of any creditor or creditors or should an interim receiver, receiver, receiver and manager or trustee be appointed for all or any significant part of any Loan Party’s assets, and shall continue to be effective or to be reinstated, as the case may be, if at any time payment and performance of the obligations of the Borrower under the Loan Documents, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the obligations, whether as a fraudulent preference, reviewable transaction or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the obligations of the Borrower hereunder shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

11.21 Acknowledgement and Consent to Bail-In of EEA Financial Institutions . Notwithstanding anything to the contrary herein or in any other Loan Document, each party hereto acknowledges that any liability of any party hereto that is an EEA Financial Institution arising hereunder or under any other Loan Document, to the extent such liability is unsecured (all such liabilities, other than any Excluded Liability, the “ Covered Liabilities ”), may be subject to Write-down and Conversion Powers and agrees and consents to, and acknowledges and agrees to be bound by:

(i) the application of Write-Down and Conversion Powers to any Covered Liability arising hereunder or under any other Loan Document which may be payable to it by any party hereto that is an EEA Financial Institution; and

(ii) the effects of any Bail-in Action on any such Covered Liability, including, if applicable:

(A) a reduction in full or in part or cancellation of any such Covered Liability;

(B) a conversion of all, or a portion of, such Covered Liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such Covered Liability under this Agreement or any other Loan Document; or

(C) the variation of the terms of such Covered Liability in connection with the exercise of Write-Down and Conversion Powers.

 

-177-


Notwithstanding anything to the contrary herein, nothing contained in this Subsection 11.21 shall modify or otherwise alter the rights or obligations under this Agreement or any other Loan Document with respect to any liability that is not a Covered Liability.

11.22 Agency Assignment . On the Restatement Effective Date at the Restatement Effective Time, (i) the Former Agent hereby resigns and is released and discharged from any responsibilities or obligations or duties as Administrative Agent and Collateral Agent under the Credit Agreement and the other Loan Documents, shall cease to be a party to all such documents in such capacities and shall have no further obligations or duties thereunder in such capacities (other than as specified in the Agency Transfer Agreement) but shall be entitled to all rights, privileges and immunities provided to the “Former Agent” hereunder, (ii) JPMCB is hereby appointed by each Loan Party, the Required Lenders (under and as defined in the Credit Agreement) and Lenders party hereto to serve as “Administrative Agent” and “Collateral Agent” under this Agreement and the other Loan Documents and (iii) JPMCB hereby accepts such appointment and succeeds to and becomes vested with all the rights, powers, privileges and duties of the “Administrative Agent” and “Collateral Agent” under the Credit Agreement and the other Loan Documents.

 

[SIGNATURE PAGES INTENTIONALLY OMITTED]

 

-178-


SCHEDULE 1.1(c)

Assumed Indebtedness

 

1. Credit Agreements

None.

 

2. Bonds

 

(a) Indenture, dated as of December 1, 2016, among the New Amethyst Corp. (to be renamed Envision Healthcare Corporation), a Delaware corporation (the “ Issuer ”), the Subsidiary Guarantors (as defined therein) from time to time parties thereto and Wilmington Trust, National Association, as trustee (the “ Trustee ”), as supplemented by the First Supplemental Indenture, dated as of December 1, 2016 and the Second Supplemental Indenture, dated as of December 1, 2016.

 

(b) Indenture, dated as of July 16, 2014, among AmSurg Escrow Corp., the guarantors party thereto and U.S. Bank National Association, as trustee, as supplemented by the First Supplemental Indenture, dated as of July 16, 2014, the Second Supplemental Indenture, dated as of August 17, 2016, the Third Supplemental Indenture, dated as of December 1, 2016 and the Fourth Supplemental Indenture, dated as of December 1, 2016.

 

(c) Indenture, dated as of June 18, 2014, among Envision Healthcare Corporation, a Delaware corporation (the “ Issuer ”), the Subsidiary Guarantors (as defined therein) from time to time parties thereto and Wilmington Trust, National Association, as trustee (the “ Trustee ”), as supplemented by the First Supplemental Indenture, dated as of June 18, 2014, the Second Supplemental Indenture, dated as of September 10, 2014, the Third Supplemental Indenture, dated as of May 4, 2015, the Fourth Supplemental Indenture, dated as of November 23, 2015, the Fifth Supplemental Indenture, dated as of January 25, 2015, the Sixth Supplemental Indenture, dated as of November 30, 2015, the Seventh Supplemental Indenture, dated as of December 1, 2016, the Eighth Supplemental Indenture, dated as of December 1, 2016 and the Ninth Supplemental Indenture, dated as of December 1, 2016.

 

3. Swaps

 

(a) ISDA Master Agreement and Schedule between Barclays Bank PLC and Emergency Medical Services Corporation, dated as of July 18, 2012.

 

4. Guarantees

Guarantee, dated 2012, by the Guarantors under the Credit Agreement of all obligations and liabilities of EMS under the EMS ISDA Master Agreement.

 

1


SCHEDULE 1.1(c)

 

5. Financing Leases

 

(a) Building Lease, with Sahuarita Rancho XX LLC.

 

(b) Equipment Lease, with Pima County, Arizona.

 

(c) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 39966).

 

(d) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 45583).

 

(e) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 48135).

 

(f) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 48275).

 

(g) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 48956).

 

(h) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 60410).

 

(i) Equipment Lease, with Pitney Bowes (regarding Asset #68363).

 

(j) Equipment Lease, with Pitney Bowes (regarding Asset #68364)

 

(k) Master Lease, with Enterprise FM Trust (regarding Motor Vehicles).

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
  

Vendor

   Balance per
Ledger @
09/30/16
     Collateral Amount

2217

   Phoenix/NorthValley    North Valley Orthopedic Surgery Center, LLC    55    Konica    $ 431.84       Individual
Equipment

2266

   Norwich    Eastern Connecticut Endoscopy Center, LLC    40    De Lage Landen      1,260.91       Individual
Equipment

2130

   St George GI    St George Endoscopy Center, LLC    51    De Lage Landen      1,495.58       Individual
Equipment

2267

   Milburn NJ Multi    Short Hills Surgery Center, LLC    55    De Lage Landen      1,696.89       Individual
Equipment

2268

   Fort Lee NJ Multi    Hudson Crossing Surgery Center, LLC    55    Stryker      3,143.18       Individual
Equipment

2058

   Louisville GI    Louisville Endoscopy Center, PLLC    51    Konica      3,155.17       Individual
Equipment

 

2


SCHEDULE 1.1(c)

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
  

Vendor

   Balance per
Ledger @
09/30/16
     Collateral Amount

2267

   Milburn NJ Multi    Short Hills Surgery Center, LLC    55    ProHealth Carl Zeiss      3,592.66       Individual
Equipment

2268

   Fort Lee NJ Multi    Hudson Crossing Surgery Center, LLC    55    TCF-PDS      4,245.14       Individual
Equipment

2307

   Pascagoula MS Multi    Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC    51    Hancock Lease: Copier      5,000.78       Individual
Equipment

2268

   Fort Lee NJ Multi    Hudson Crossing Surgery Center, LLC    55    TCF-Medtronic      5,948.20       Individual
Equipment

2267

   Milburn NJ Multi    Short Hills Surgery Center, LLC    55    ProHealth Carl Zeiss      6,802.24       Individual
Equipment

2301

   Tualatin OR Multi    South Portland Surgical Center, LLC    55    Stryker      7,513.19       Individual
Equipment

2132

   Temecula    Temecula CA Endoscopy ASC, L.P.    51    De Lage Landen      8,256.00       Individual
Equipment

2306

   Ocean Springs MS Multi    Ocean Springs Surgical &amp; Endoscopy Center, LLC    51    Hancock Leasing      8,328.05       Individual
Equipment

2194

   Baltimore-Greene Tree MD GI    Pikesville MD Endoscopy ASC, LLC    51    Olympus      8,962.50       Individual
Equipment

2267

   Milburn NJ Multi    Short Hills Surgery Center, LLC    55    ProHealth      10,017.83       Individual
Equipment

2138

   Gainesville    The Gainesville FL Orthopaedic ASC, LLC    51    GE Healthcare      10,070.70       Individual
Equipment

2195

   Glen Burnie MD GI    Glen Burnie MD Endoscopy ASC, LLC    51    Olympus      12,864.92       Individual
Equipment

2268

   Fort Lee NJ Multi    Hudson Crossing Surgery Center, LLC    55    ProHealth      15,192.66       Individual
Equipment

2236

   Bend Urology    Doctors Park Surgery Center, LLC    51    Boston Scientific      15,837.42       Individual
Equipment

2116

   Tulsa Eye    The Tulsa OK Ophthalmology ASC, LLC    51    Alcon      15,922.44       Individual
Equipment

2138

   Gainesville    The Gainesville FL Orthopaedic ASC, LLC    51    Cisco      16,958.29       Individual
Equipment

2194

   Baltimore-Greene Tree MD GI    Pikesville MD Endoscopy ASC, LLC    51    Olympus      17,416.00       Individual
Equipment

2285

   Allentown PA GI    College Heights Endoscopy Center, LLC    51    Olympus      20,188.51       Individual
Equipment

2185

   Mesquite GI    Mesquite TX Endoscopy ASC, LLC    51    Mesquite GI Medivators      20,796.53       Individual
Equipment

2232

   Pioneer Valley Multi    Pioneer Valley Surgicenter, LLC    65    Karl Storz lease      21,466.72       Individual
Equipment

2194

   Baltimore-Greene Tree MD GI    Pikesville MD Endoscopy ASC, LLC    51    Olympus      24,415.71       Individual
Equipment

2167

   Torrance    The Torrance CA Multi-Specialty ASC LLC    51    Stryker      25,131.28       Individual
Equipment

 

3


SCHEDULE 1.1(c)

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
  

Vendor

   Balance per
Ledger @
09/30/16
     Collateral Amount

2265

   Harvey LA Multi    WB Surgery Center, LLC    57    DeLage/ Linvatec      27,720.16       Individual
Equipment

2226

   Port ST Lucie FL Eye    Hillmoor Eye Surgery Center, LLC    55    Alcon      30,053.17       Individual
Equipment

2281

   Boca Raton FL Multi    South Palm Ambulatory Surgery Center, LLC    49    Americorp      38,263.53       Individual
Equipment

2069

   Burbank Eye    The Burbank Ophthalmology ASC, L.P.    51    Alcon      44,183.29       Individual
Equipment

2238

   Coral Springs Multi    Coral Springs Ambulatory Surgery Center, LLC    64.51    Byline Financial      45,864.93       Individual
Equipment

2303

   Morehead City    Center of Morehead City, LLC    60    GE Healthcare      46,724.82       Individual
Equipment

2095

   Dover Multi    The Dover Ophthalmology ASC, LLC    51    Alcon      49,989.56       Individual
Equipment

2300

   Forty Fort PA Multi    Surgical Specialty Center of Northeastern Pennsylvania, LLC    51    Alcon      53,985.13       Individual
Equipment

2303

   Morehead City    Center of Morehead City, LLC    60    Stryker      54,744.39       Individual
Equipment

2167

   Torrance    The Torrance CA Multi-Specialty ASC LLC    51    Alcon      59,418.94       Individual
Equipment

2055

   Boca Raton    The Boca Raton Ophthalmology ASC, LLC    51    Alcon      72,734.83       Individual
Equipment

2238

   Coral Springs Multi    Coral Springs Ambulatory Surgery Center, LLC    64.51    Baytree lease      79,041.42       Individual
Equipment

2307

   Pascagoula MS Multi    Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC    51    Hancock Lease      79,441.21       Individual
Equipment

2294

   Millburn East Willow NJ Multi    Surgical Center at Millburn, LLC    55    Stryker      98,350.55       Individual
Equipment

2306

   Ocean Springs MS Multi    Ocean Springs Surgical &amp; Endoscopy Center, LLC    51    Alcon Labs      103,272.65       Individual
Equipment

2268

   Fort Lee NJ Multi    Hudson Crossing Surgery Center, LLC    55    Arthrex      105,042.69       Individual
Equipment

2151

   Puyallup GI - 003    Western Washington Endoscopy Centers, LLC    51    Olympus      108,169.51       Individual
Equipment

2080

   Clemson Multi    The Blue Ridge/Clemson Orthopaedic ASC, LLC    51    Alcon      109,339.59       Individual
Equipment

2268

   Fort Lee NJ Multi    Hudson Crossing Surgery Center, LLC    55    Olympus      111,536.87       Individual
Equipment

2276

   Charleston Eye    Physicians’ Eye Surgery Center, LLC    56    First Citizens      111,647.80       Individual
Equipment

2121

   Lewes GI    The Lewes DE Endoscopy ASC, LLC    51    Olympus      116,185.93       Individual
Equipment

2280

   Bend Multi    Bend Surgery Center, LLC    51    Mindray      116,516.87       Individual
Equipment

 

4


SCHEDULE 1.1(c)

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
  

Vendor

   Balance per
Ledger @
09/30/16
     Collateral Amount

2133

   Lakeland    The Lakeland FL Endoscopy ASC, LLC    51    Olympus      125,138.31       Individual
Equipment

2151

   Gig Harbor GI - 004    Western Washington Endoscopy Centers, LLC    51    Olympus      130,387.06       Individual
Equipment

2151

   Tacoma GI - 002    Western Washington Endoscopy Centers, LLC    51    Olympus      158,960.30       Individual
Equipment

2306

   Ocean Springs MS Multi    Ocean Springs Surgical &amp; Endoscopy Center, LLC    51    Hancock Leasing      160,538.97       Individual
Equipment

2291

   Elmwood Park NJ Eye    River Drive Surgery Center, LLC    59    Abbott      167,286.46       Individual
Equipment

2257

   Newark Mid Atlantic DE GI    Mid-Atlantic Endoscopy Center, LLC    51    Olympus      170,054.31       Individual
Equipment

2306

   Ocean Springs MS Multi    Ocean Springs Surgical &amp; Endoscopy Center, LLC    51    Hancock Leasing      177,291.17       Individual
Equipment

2291

   Elmwood Park NJ Eye    River Drive Surgery Center, LLC    59    Alcon      179,378.57       Individual
Equipment

2307

   Pascagoula MS Multi    Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC    51    Hancock Leasing      179,433.31       Individual
Equipment

2183

   Kissimme GI    The Kissimmee FL Endoscopy ASC, LLC    51    Olympus      182,295.19       Individual
Equipment

N/A

   Sheridan    Sheridan    N/A    Toshiba Software      50,024.49       Individual
Equipment

2151

   Waldron GI - 001    Western Washington Endoscopy Centers, LLC    51    Olympus      273,775.11       Individual
Equipment

2246

   Torrance Crenshaw CA Multi    Torrance Surgery Center, LP    62.49    Alcon      173,884.07       Individual
Equipment

2003

   Ocala GI    The Endoscopy Center of St. Thomas, L.P.    60    K2 Capital Group      253,798.27       Individual
Equipment

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
  

Vendor

   Balance per Ledger
@ 09/30/16
 

2306

   Ocean Springs MS Multi    Ocean Springs Surgical &amp; Endoscopy Center, LLC    51    Building Capital Lease 8.16-7.31      5,085,017.91   

2228

   Phoenix AZ GI    Arizona Endoscopy Center, LLC    55    Building Lease      1,289,389.96   

2282

   Bradenton FL Multi    Manatee Surgical Center, LLC    49.9    Building Lease      4,249,202.85   

2294

   Millburn East Willow NJ Multi    Surgical Center at Millburn, LLC    55    Building Lease      3,049,364.83   

2217

   Phoenix/NorthValley    North Valley Orthopedic Surgery Center, LLC    55    Building Lease (2217NOR01)      5,679,302.77   

2307

   Pascagoula MS Multi    Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC    51    Building Lease: 8/16-7/2031      6,589,752.38   

 

5


SCHEDULE 1.1(c)

 

6. Earn-out obligations under the following agreements:

 

(a) Agreement and Plan of Merger, dated as of August 6, 2015, by and among Northwest Tucson Emergency Physicians, P.C., Arizona EM-I Medical Services, P.C., Bear Down Merger, P.C., and Jim Hassen, MD.

 

(b) Asset Purchase Agreement dated November 1, 2014, among Southeast Perinatal Associates, Inc., Sheridan Healthcorp, Inc., Laurie Scott, M.D. and Scott MFM, LLC.

 

7. Letters of Credit

 

Beneficiary

   Date Issued    Date Renewed    Expiration Date    Current Amount ($)  

City of Arlington

   02/10/05    02/01/11    02/01/17      1,750,000.00   

Kaiser Foundation Health Plan

   03/10/05    02/01/11    02/01/17      268,528.57   

City of Akron

   03/10/05    02/01/11    02/01/17      500,000.00   

County of Sonoma

   03/10/05    02/01/11    02/01/17      1,500,000.00   

City of Spokane Fire Department

   03/10/05    02/01/11    02/01/17      2,000,000.00   

City of Seattle

   03/10/05    02/01/11    02/01/17      2,000,000.00   

Multnomah County Emergency

   09/23/05    09/01/10    09/01/17      2,750,000.00   

County of Clackamas, Oregon

   05/05/06    02/01/11    02/01/17      1,500,000.00   

Vista Insurance Plan, Inc.

   08/30/07    08/21/10    08/21/17      68,000.00   

El Paso County Emergency Services Agency

   12/24/08    12/24/10    12/24/16      3,000,000.00   

Laramie County EMS Joint Powers Board

   05/15/09    02/01/11    02/01/17      400,000.00   

City of Amarillo

   01/15/10    01/05/11    01/15/17      625,000.00   

Ambulance Service Boards, Representing Specified Municipalities in Spokane County

   06/24/10    n/a    06/17/17      2,000,000.00   

Sentry Insurance

   10/04/11       09/28/17      1,350,000.00   

County of Monterey

   10/06/11    n/a    07/15/17      1,500,000.00   

Pacific Employers Insurance Co

   02/17/12    n/a    02/17/17      60,590,588.00   

 

6


SCHEDULE 1.1(c)

 

Beneficiary

   Date Issued      Date Renewed      Expiration Date      Current Amount ($)  

FSP Galleria North Limited

     03/15/12         n/a         12/31/16         440,000.00   

Continental Casualty Company

     05/29/12         n/a         05/24/17         17,979,208.00   

CapitalSource Bank

     12/05/12         n/a         12/05/16         804,140.00   

Aetna Health Management, LLC

     02/28/13         n/a         02/26/17         250,000.00   

Emergency Medical Services Authority

     10/15/13         n/a         10/01/17         5,000,000.00   

Texas Dept of State Health Services – Milam County

     01/09/14         n/a         12/31/16         75,000.00   

Texas Dept of State Health Services – Farmers Branch

     01/09/14         n/a         12/31/16         50,000.00   

Texas Dept of State Health Services – Amarillo

     01/28/14         n/a         01/31/17         75,000.00   

Texas Dept of State Health Services – AASI

     06/04/14         n/a         06/12/17         25,000.00   

Texas Dept of Health Services – Collin County

     12/09/14         n/a         11/30/16         50,000.00   

Continental Casualty Company

     01/16/15         n/a         12/31/16         3,939,984.00   

Nero Equipment CO, Inc.

     06/17/15         n/a         12/01/16         120,000.00   

Reliance Insurance Company

     11/16/15         n/a         11/16/17         569,049.00   

County of Santa Clara

     11/16/15         n/a         11/16/17         5,000,000.00   

Ohio Bureau of Workers Comp

     11/16/15         n/a         11/16/17         330,000.00   

ACE American Insurance Company

     01/11/16         n/a         01/11/17         17,415,648.00   
           

 

 

 
     Subtotal               133,925,145.57   
           

 

 

 

Letter of Credit issued by Western Alliance Bank in favor of PPG MOB Fund 1A, LLC, in the amount of $912,216.06.

 

15. Other Indebtedness

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
    Collateral Amount

2197

  Orlando Mills FL   Orlando Mills FL Endoscopy ASC, LLC   100   BBVA   Y   $ 16,484.36      Individual
Equipment

2152

  Central FL GI - 001   The Orlando FL Endoscopy ASC LLC   100   BBVA   Y     17,684.47      Individual
Equipment

2152

  Citrus GI - 002   The Orlando FL Endoscopy ASC LLC   100   BBVA   Y     17,684.47      Individual
Equipment

2223

  Waltham   Boston Out-Patient Surgical Suites, LLC   100   BBVA   Y     20,234.01      Individual
Equipment

 

7


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
    Collateral Amount

2250

  Weston   Weston Outpatient Surgical Center, LTD   100   BBVA   Y     23,749.54      Individual
Equipment

2291

  Elmwood Park NJ Eye   River Drive Surgery Center, LLC   100   BBVA   Y     25,506.00      Individual
Equipment

2122

  Rodgers Eye   The Rogers AR Ophthalmology ASC, LLC   100   BBVA   Y     26,006.25      Individual
Equipment

2250

  Weston   Weston Outpatient Surgical Center, LTD   100   BBVA   Y     27,034.48      Individual
Equipment

2236

  Bend OR Urology   Doctors Park Surgery Center, LLC   100   BBVA   Y     28,007.80      Individual
Equipment

2200

  Pomona CA Multi   Casa Colina Surgery Center, LLC   100   BBVA   Y     31,433.34      Individual
Equipment

2167

  Torrance Multi   The Torrance CA Multi-Specialty ASC LLC   100   BBVA   Y     36,595.71      Individual
Equipment

2229

  ColumbusOH Eye   COA ASC of Franklin County, LLC   100   BBVA   Y     38,468.33      Individual
Equipment

2132

  Temecula   Temecula CA Endoscopy ASC, L.P.   100   BBVA   Y     44,605.24      Individual
Equipment

2229

  ColumbusOH Eye   COA ASC of Franklin County, LLC   100   BBVA   Y     48,794.95      Individual
Equipment

2229

  ColumbusOH Eye   COA ASC of Franklin County, LLC   100   BBVA   Y     49,173.84      Individual
Equipment

2205

  Silver Spring MD Eye   Eye Sugery Center, LLC   100   BBVA   Y     51,712.61      Individual
Equipment

2070

  Waldorf GI   The Waldorf Endoscopy ASC, LLC   100   BBVA   Y     54,582.61      Individual
Equipment

2223

  Waltham   Boston Out-Patient Surgical Suites, LLC   100   BBVA   Y     63,105.87      Individual
Equipment

2275

  Mountainside NJ Multi   Center for Ambulatory Surgery, LLC   100   BBVA   Y     66,714.61      Individual
Equipment

2223

  Waltham   Boston Out-Patient Surgical Suites, LLC   100   BBVA   Y     70,956.34      Individual
Equipment

2122

  Rodgers Eye   The Rogers AR Ophthalmology ASC, LLC   100   BBVA   Y     88,682.26      Individual
Equipment

2242

  Long Beach CA Multi   Long Beach Surgery Center, LP   100   BBVA   Y     125,219.06      Individual
Equipment

2186

  Conroe GI   The Conroe TX Endoscopy ASC, LLC   100   BBVA   Y     130,725.96      Individual
Equipment

2291

  Elmwood Park NJ Eye   River Drive Surgery Center, LLC   100   BBVA   Y     615,723.13      Individual
Equipment

2005

  Beaumont GI   The Endoscopy Center of Southeast Texas, L.P.   100   BBVA   Y     27,255.77      Individual
Equipment

2066

  Crestview Hills GI   AmSurg Northern Kentucky GI, LLC   100   BBVA   Y     70,826.17      Individual
Equipment

2113

  Paducah Eye   The Paducah Ophthalmology ASC, LLC   100   BBVA   Y     47,185.99      Individual
Equipment

 

8


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
    Collateral Amount

2207

  Bryan TX GI   Central Texas Endoscopy Center, LLC   100   BBVA   Y     231,378.50      Individual
Equipment

2232

  Pioneer Valley MA Multi   Pioneer Valley Surgicenter, LLC   100   BBVA   Y     30,798.06      Individual
Equipment

2267

  Milburn NJ Multi   Short Hills Surgery Center, LLC   100   BBVA   Y     243,753.26      Individual
Equipment

2267

  Milburn NJ Multi   Short Hills Surgery Center, LLC   100   BBVA   Y     48,883.71      Individual
Equipment

2267

  Milburn NJ Multi   Short Hills Surgery Center, LLC   100   BBVA   Y     75,989.61      Individual
Equipment

2093

  Columbia Multi   The Surgery Center of Middle Tennessee, LLC   100   BBVA   Y     74,436.80      Individual
Equipment

2093

  Columbia Multi   The Surgery Center of Middle Tennessee, LLC   100   BBVA   Y     40,731.00      Individual
Equipment

2093

  Columbia Multi   The Surgery Center of Middle Tennessee, LLC   100   BBVA   Y     61,917.15      Individual
Equipment

2093

  Columbia Multi   The Surgery Center of Middle Tennessee, LLC   100   BBVA   Y     79,303.40      Individual
Equipment

2062

  Indianapolis GI   Northside Gastroenterology Endoscopy Center, LLC   100   BBVA   Y     931,152.31      Individual
Equipment

2026

  Springfield GI   The Hillmont ASC, L.P.   100   BBVA   Y     35,746.40      Individual
Equipment

2196

  St Clair Shores MI Eye   St. Clair Shores MI Ophthalmology ASC, LLC   100   Fifth Third   Y     23,500.00      Individual
Equipment

2279

  Rancho Pueblo CA GI   Temecula CA United Surgery Center, L.P.   100   Fifth Third   Y     23,552.93      Individual
Equipment

2167

  Torrance Multi   The Torrance CA Multi-Specialty ASC LLC   100   Fifth Third   Y     43,750.76      Individual
Equipment

2271

  Colton CA Multispecialty   Colton CA Multi ASC, LP   100   Fifth Third   Y     46,990.85      Individual
Equipment

2279

  Rancho Pueblo CA GI   Temecula CA United Surgery Center, L.P.   100   Fifth Third   Y     51,678.72      Individual
Equipment

2068

  La Jolla GI   The La Jolla Endoscopy Center, L.P.   100   Fifth Third   Y     54,400.04      Individual
Equipment

2100

  Bloomfield Eye   Bloomfield Eye Surgery Center, LLC   100   Fifth Third   Y     66,181.87      Individual
Equipment

2093

  Columbia Multi   The Surgery Center of Middle Tennessee, LLC   100   Fifth Third   Y     72,741.89      Individual
Equipment

2202

  Akron   Digestive Health Center, LLC   100   Fifth Third   Y     77,416.23      Individual
Equipment

2203

  Redding   Gastroenterology Associates Endoscopy Center, LLC   100   Fifth Third   Y     77,494.37      Individual
Equipment

2242

  Long Beach CA Multi   Long Beach Surgery Center, LP   100   Fifth Third   Y     105,663.90      Individual
Equipment

2275

  Mountainside NJ Multi   Center for Ambulatory Surgery, LLC   100   Fifth Third   Y     122,342.68      Individual
Equipment

2231

  MDSine MA Multi   MDSine, LLC   100   Fifth Third   Y     132,343.23      Individual
Equipment

 

9


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
    Collateral Amount

2081

  Las Vegas East   The Las Vegas East Ophthalmology ASC, LLC   100   Fifth Third   Y     143,839.50      Individual
Equipment

2279

  Rancho Pueblo CA GI   Temecula CA United Surgery Center, L.P.   100   Fifth Third   Y     164,896.62      Individual
Equipment

2191

  San Diego Ortho   San Diego CA Multi Specialty ASC, LLC   100   Fifth Third   Y     165,840.00      Individual
Equipment

2269

  Allentown PA Multi   Surgery Center of Allentown, LLC   100   Fifth Third   Y     277,358.20      Individual
Equipment

2172

  Main Line (002)   The Main Line PA Endoscopy ASC, LP   100   Fifth Third   Y     84,304.21      Individual
Equipment

2172

  Main Line (001)   The Main Line PA Endoscopy ASC, LP   100   Fifth Third   Y     27,613.80      Individual
Equipment

2278

  Wichita KS Eye   Eye Surgery Center of Wichita, LLC   100   Whitney
Hancock
  Y     21,534.88      Individual
Equipment

2202

  Akron   Digestive Health Center, LLC   100   Whitney
Hancock
  Y     25,064.97      Individual
Equipment

2275

  Mountainside NJ Multi   Center for Ambulatory Surgery, LLC   100   Whitney
Hancock
  Y     25,785.53      Individual
Equipment

2283

  Rutherford NJ Multi   Meadows Surgery Center, LLC   100   Whitney
Hancock
  Y     27,062.16      Individual
Equipment

2191

  San Diego Ortho   San Diego CA Multi Specialty ASC, LLC   100   Whitney
Hancock
  Y     37,935.26      Individual
Equipment

2129

  Tampa GI   The Tampa FL Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     48,578.56      Individual
Equipment

2136

  Reno GI   The Northern NV Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     88,879.75      Individual
Equipment

2041

  Cincinnati GI   The Cincinnati ASC, LLC   100   Whitney
Hancock
  Y     184,747.56      Individual
Equipment

2280

  Bend Surgery Center   Bend Surgery Center, LLC   100   Whitney
Hancock
  Y     374,485.03      Individual
Equipment

2063

  Chattanooga GI   The Chattanooga Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     643,990.34      Individual
Equipment

2107

  Alexandria   The Alexandria Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     46,067.19      Individual
Equipment

2120

  Kingsport   The Kingsport TN Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     197,174.90      Individual
Equipment

2288

  Texarkana TX   Surgery Center of Northeast Texas, LLC   100   Whitney
Hancock
  Y     3,969.85      Individual
Equipment

2001

  Knoxville West GI - 002   The Endoscopy Center of Knoxville, L.P.   100   Whitney
Hancock
  Y     397,950.26      Individual
Equipment

2006

  Santa Fe   The Endoscopy Center of Santa Fe, L.P.   100   Whitney
Hancock
  Y     17,257.10      Individual
Equipment

2009

  Washington D.C.   The Endoscopy Center of Washington, D.C., L.P.   100   Whitney
Hancock
  Y     86,295.32      Individual
Equipment

2013

  Abilene ASC, L.P.   The Abilene ASC, L.P.   100   Whitney
Hancock
  Y     73,124.41      Individual
Equipment

 

10


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
    Collateral Amount

2015

  Shawnee GI   The Westglen Endoscopy Center, LLC   100   Whitney
Hancock
  Y     11,452.91      Individual
Equipment

2015

  Shawnee GI   The Westglen Endoscopy Center, LLC   100   Whitney
Hancock
  Y     14,109.35      Individual
Equipment

2015

  Shawnee GI   The Westglen Endoscopy Center, LLC   100   Whitney
Hancock
  Y     66,268.62      Individual
Equipment

2018

  Knoxville Eye   The Knoxville Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     17,440.51      Individual
Equipment

2018

  Knoxville Eye   The Knoxville Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     22,033.78      Individual
Equipment

2024

  Melbourne GI   The Melbourne ASC, L.P.   100   Whitney
Hancock
  Y     126,240.93      Individual
Equipment

2028

  Panama City GI   The Northwest Florida ASC, L.P.   100   Whitney
Hancock
  Y     36,877.85      Individual
Equipment

2035

  Wichita   The Wichita Orthopaedic ASC, LLC   100   Whitney
Hancock
  Y     10,361.20      Individual
Equipment

2035

  Wichita   The Wichita Orthopaedic ASC, LLC   100   Whitney
Hancock
  Y     29,558.44      Individual
Equipment

2035

  Wichita   The Wichita Orthopaedic ASC, LLC   100   Whitney
Hancock
  Y     23,633.35      Individual
Equipment

2035

  Wichita   The Wichita Orthopaedic ASC, LLC   100   Whitney
Hancock
  Y     20,386.44      Individual
Equipment

2038

  Chevy Chase   The Chevy Chase ASC, LLC   100   Whitney
Hancock
  Y     215,492.77      Individual
Equipment

2043

  Crystal River GI   The Crystal River Endoscopy ASC, L.P.   100   Whitney
Hancock
  Y     143,677.83      Individual
Equipment

2046

  Independence GI -001   The Independence ASC, LLC   100   Whitney
Hancock
  Y     206,741.90      Individual
Equipment

2047

  Phoenix Eye   The Phoenix Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     25,170.68      Individual
Equipment

2047

  Phoenix Eye   The Phoenix Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     24,864.60      Individual
Equipment

2051

  Sun City Eye   The Sun City Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     15,462.98      Individual
Equipment

2051

  Sun City Eye   The Sun City Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     98,380.36      Individual
Equipment

2051

  Sun City Eye   The Sun City Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     212,744.13      Individual
Equipment

2051

  Sun City Eye   The Sun City Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     13,809.47      Individual
Equipment

2062

  Indianapolis GI   Northside Gastroenterology Endoscopy Center, LLC   100   Whitney
Hancock
  Y     13,394.12      Individual
Equipment

2064

  Mt Dora Eye   The Mount Dora Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     23,674.76      Individual
Equipment

2064

  Mt Dora Eye   The Mount Dora Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     14,160.86      Individual
Equipment

 

11


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
    Collateral Amount

2068

  La Jolla GI   The La Jolla Endoscopy Center, L.P.   100   Whitney
Hancock
  Y     22,115.54      Individual
Equipment

2072

  Sarasota GI   The Sarasota Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     12,322.14      Individual
Equipment

2081

  Las Vegas East   The Las Vegas East Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     101,387.99      Individual
Equipment

2082

  Hutchinson Multi   The Hutchinson Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     9,809.35      Individual
Equipment

2084

  Metairie Eye   The Metairie Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     20,794.34      Individual
Equipment

2089

  Inverness GI   The Suncoast Endoscopy ASC, L.P.   100   Whitney
Hancock
  Y     11,075.19      Individual
Equipment

2093

  Columbia Multi   The Surgery Center of Middle Tennessee, LLC   100   Whitney
Hancock
  Y     11,460.30      Individual
Equipment

2093

  Columbia Multi   The Surgery Center of Middle Tennessee, LLC   100   Whitney
Hancock
  Y     13,105.88      Individual
Equipment

2094

  Bel Air   The Bel Air Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     42,310.07      Individual
Equipment

2105

  Newark   The Newark Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     25,058.42      Individual
Equipment

2107

  Alexandria   The Alexandria Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     13,481.88      Individual
Equipment

2110

  Troy GI   The Southfield Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     115,846.91      Individual
Equipment

2113

  Paducah Eye   The Paducah Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     133,336.12      Individual
Equipment

2132

  Temecula   Temecula CA Endoscopy ASC, L.P.   100   Whitney
Hancock
  Y     11,947.85      Individual
Equipment

2135

  Rockledge GI   The Rockledge FL Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     8,046.64      Individual
Equipment

2135

  Rockledge GI   The Rockledge FL Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     39,383.42      Individual
Equipment

2136

  Reno GI   The Northern NV Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     124,200.04      Individual
Equipment

2138

  Gainesville   The Gainesville FL Orthopaedic ASC, LLC   100   Whitney
Hancock
  Y     13,653.03      Individual
Equipment

2138

  Gainesville   The Gainesville FL Orthopaedic ASC, LLC   100   Whitney
Hancock
  Y     67,034.64      Individual
Equipment

2140

  Raleigh GI   The Raleigh NC Endoscopy ASC,LLC   100   Whitney
Hancock
  Y     28,847.14      Individual
Equipment

2142

  Port Huron   Blue Water ASC LLC   100   Whitney
Hancock
  Y     43,931.24      Individual
Equipment

2146

  Rockville GI   The Rockville MD Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     100,144.32      Individual
Equipment

2146

  Rockville GI   The Rockville MD Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     17,123.61      Individual
Equipment

 

12


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
    Collateral Amount

2147

  Overland Park GI   The Overland Park KS Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     142,433.07      Individual
Equipment

2155

  Towson-West Road GI   Maryland Endoscopy Center LLC   100   Whitney
Hancock
  Y     45,743.49      Individual
Equipment

2159

  Salem Eye   The Salem OR Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     56,784.56      Individual
Equipment

2159

  Salem Eye   The Salem OR Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     11,762.55      Individual
Equipment

2163

  Laurel   The Laurel MD Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     514,145.92      Individual
Equipment

2164

  El Dorado   The El Dorado AR Multispecialty ASC, LLC   100   Whitney
Hancock
  Y     9,210.85      Individual
Equipment

2164

  El Dorado   The El Dorado AR Multispecialty ASC, LLC   100   Whitney
Hancock
  Y     66,968.20      Individual
Equipment

2167

  Torrance Multi   The Torrance CA Multi-Specialty ASC LLC   100   Whitney
Hancock
  Y     31,370.82      Individual
Equipment

2167

  Torrance Multi   The Torrance CA Multi-Specialty ASC LLC   100   Whitney
Hancock
  Y     17,691.71      Individual
Equipment

2169

  Arcadia   The Arcadia CA Endoscopy ASC, LP   100   Whitney
Hancock
  Y     275,580.40      Individual
Equipment

2172

  Main Line (003)   The Main Line PA Endoscopy ASC, LP   100   Whitney
Hancock
  Y     49,695.66      Individual
Equipment

2172

  Main Line (002)   The Main Line PA Endoscopy ASC, LP   100   Whitney
Hancock
  Y     50,486.05      Individual
Equipment

2172

  Main Line (001)   The Main Line PA Endoscopy ASC, LP   100   Whitney
Hancock
  Y     72,958.11      Individual
Equipment

2178

  New Orleans GI - 001   The New Orleans LA Uptown West Bank Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     26,743.56      Individual
Equipment

2178

  New Orleans GI - 002   The New Orleans LA Uptown West Bank Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     22,848.21      Individual
Equipment

2179

  Metairie GI   The Metairie LA Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     227,650.36      Individual
Equipment

2186

  Conroe GI   The Conroe TX Endoscopy ASC, LLC   100   Whitney
Hancock
  Y     71,950.63      Individual
Equipment

2196

  St Clair Shores MI Eye   St. Clair Shores MI Ophthalmology ASC, LLC   100   Whitney
Hancock
  Y     35,609.38      Individual
Equipment

2205

  Silver Spring MD Eye   Eye Sugery Center, LLC   100   Whitney
Hancock
  Y     31,040.94      Individual
Equipment

2207

  Bryan TX GI   Central Texas Endoscopy Center, LLC   100   Whitney
Hancock
  Y     149,696.05      Individual
Equipment

2211

  Dayton - 004   Digestive Endoscopy Center, LLC   100   Whitney
Hancock
  Y     120,483.79      Individual
Equipment

2219

  Dallas-Redbird Sq. TX GI   Redbird Square Endoscopy Center, LLC   100   Whitney
Hancock
  Y     424,018.02      Individual
Equipment

 

13


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
    Collateral Amount

2224

  Boynton Beach   Bethesda Outpatient Surgery Center, LLC   100   Whitney
Hancock
  Y     27,784.29      Individual
Equipment

2226

  Port St Lucie FL Eye   Hillmoor Eye Surgery Center, LLC   100   Whitney
Hancock
  Y     309,323.48      Individual
Equipment

2227

  Port Orange Multi   Surgery Center of Volusia, LLC   100   Whitney
Hancock
  Y     198,853.31      Individual
Equipment

2228

  Phoenix McDowell AZ   Arizona Endoscopy Center, LLC   100   Whitney
Hancock
  Y     17,249.17      Individual
Equipment

2229

  ColumbusOH Eye   COA ASC of Franklin County, LLC   100   Whitney
Hancock
  Y     86,267.31      Individual
Equipment

2235

  Meridian ID Eye   Eagle Eye Surgery and Laser Center, LLC   100   Whitney
Hancock
  Y     37,284.39      Individual
Equipment

2242

  Long Beach CA Multi   Long Beach Surgery Center, LP   100   Whitney
Hancock
  Y     14,090.13      Individual
Equipment

2244

  San Antonio   San Antonio ASC, LP   100   Whitney
Hancock
  Y     16,513.62      Individual
Equipment

2244

  San Antonio   San Antonio ASC, LP   100   Whitney
Hancock
  Y     96,259.86      Individual
Equipment

2244

  San Antonio   San Antonio ASC, LP   100   Whitney
Hancock
  Y     13,415.68      Individual
Equipment

2244

  San Antonio   San Antonio ASC, LP   100   Whitney
Hancock
  Y     43,069.09      Individual
Equipment

2248

  Twin Falls Multi   Southern Idaho Ambulatory Surgery Center, LLC   100   Whitney
Hancock
  Y     95,816.82      Individual
Equipment

2250

  Weston   Weston Outpatient Surgical Center, LTD   100   Whitney
Hancock
  Y     82,948.62      Individual
Equipment

2261

  Wellesley Hills MA GI   Boston Endoscopy Center, LLC   100   Whitney
Hancock
  Y     23,891.60      Individual
Equipment

2263

  Shreveport LA Multi   Red River Surgery Center, LLC   100   Whitney
Hancock
  Y     36,322.66      Individual
Equipment

2265

  Harvey LA Multi   WB Surgery Center, LLC   100   Whitney
Hancock
  Y     11,726.89      Individual
Equipment

2265

  Harvey LA Multi   WB Surgery Center, LLC   100   Whitney
Hancock
  Y     68,085.04      Individual
Equipment

2275

  Mountainside NJ Multi   Center for Ambulatory Surgery, LLC   100   Whitney
Hancock
  Y     16,912.97      Individual
Equipment

2275

  Mountainside NJ Multi   Center for Ambulatory Surgery, LLC   100   Whitney
Hancock
  Y     48,187.72      Individual
Equipment

2276

  Charleston Eye   Physicians’ Eye Surgery Center, LLC   100   Whitney
Hancock
  Y     47,315.42      Individual
Equipment

2276

  Charleston Eye   Physicians’ Eye Surgery Center, LLC   100   Whitney
Hancock
  Y     20,216.36      Individual
Equipment

2276

  Charleston Eye   Physicians’ Eye Surgery Center, LLC   100   Whitney
Hancock
  Y     26,784.19      Individual
Equipment

2276

  Charleston Eye   Physicians’ Eye Surgery Center, LLC   100   Whitney
Hancock
  Y     32,624.38      Individual
Equipment

 

14


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
  Vendor   AmSurg Master
Guarantor
    Balance per Ledger @
09/30/16
    Collateral Amount

2253

  Norwood Multi   Eastern Massachusetts Surgery Center, LLC   100   Whitney
Hancock
    Y        18,872.46      Individual
Equipment

2048

  Toledo GI   The Toledo Endoscopy ASC, LLC   100   Whitney
Hancock
    Y        21,751.77      Individual
Equipment

2022

  Evansville Eye   EyeCare Consultants Surgery Center, LLC   100   Whitney
Hancock
    Y        43,157.34      Individual
Equipment

2135

  Rockledge GI   The Rockledge FL Endoscopy ASC, LLC   100   Whitney
Hancock
    Y        65,978.61      Individual
Equipment

2047

  Phoenix Eye   The Phoenix Ophthalmology ASC, LLC   100   Whitney
Hancock
    Y        82,231.38      Individual
Equipment

2288

  Texarkana TX   Surgery Center of Northeast Texas, LLC   100   Whitney
Hancock
    Y        91,198.74      Individual
Equipment

2149

  San Luis Obispo GI - 001   The San Luis Obispo CA Endoscopy ASC, LP   100   Whitney
Hancock
    Y        99,764.70      Individual
Equipment

2120

  Kingsport   The Kingsport TN Ophthalmology ASC, LLC   100   Whitney
Hancock
    Y        104,199.00      Individual
Equipment

2095

  Dover Multi   The Dover Ophthalmology ASC, LLC   100   Whitney
Hancock
    Y        194,947.88      Individual
Equipment

2045

  Fayetteville GI   The Fayetteville ASC, LLC   100   Whitney
Hancock
    Y        417,127.84      Individual
Equipment

2215

  Cannon City CO Multi   Canon City CO Multispecialty ASC, LLC   51   Whitney
Hancock
    Y        24,252.72      Individual
Equipment

2114

  Columbia TN GI   The Columbia TN Endoscopy ASC, LLC   51   Community
1st Bank &
Trust
      328,054.31      Individual
Equipment

2248

  Twin Falls Multi   Southern Idaho Ambulatory Surgery Center, LLC   54.78   DL Evans
Bank
      43,178.94      Individual
Equipment

2161

  St. Cloud   The St. Cloud MN Ophthalmology ASC, LLC   51   Everbank
Commercial
Finance
      13,996.70      Individual
Equipment

2276

  Charleston Eye   Physicians’ Eye Surgery Center, LLC   56   First Citizens       747,937.90      All Assets

2093

  Columbia Multi   The Surgery Center of Middle Tennessee, LLC   51   First Farmers
& Merchants
Bank
      1,267,400.36      All Assets

2268

  Fort Lee NJ Multi   Hudson Crossing Surgery Center, LLC   55   GE Loan       43,193.26      Individual
Equipment

2035

  Wichita   The Wichita Orthopaedic ASC, LLC   51   InTrust Bank       67,385.51      All Assets

2211

  Dayton - 002   Digestive Endoscopy Center, LLC   51   JP Morgan
Chase
      844,880.10      All Assets

2301

  Tualatin OR Multi   South Portland Surgical Center, LLC   55   Key Bank       604,276.07      All Assets

2301

  Tualatin OR Multi   South Portland Surgical Center, LLC   55   Key Bank       879,333.13      All Assets

2301

  Tualatin OR Multi   South Portland Surgical Center, LLC   55   Key Bank       45,694.38      All Assets

 

15


SCHEDULE 1.1(c)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
    Vendor     AmSurg Master
Guarantor
    Balance per Ledger @
09/30/16
    Collateral Amount

2268

  Fort Lee NJ Multi   Hudson Crossing Surgery Center, LLC     55        ProHealth          4,270.90      Individual
Equipment

2268

  Fort Lee NJ Multi   Hudson Crossing Surgery Center, LLC     55        ProHealth          29,392.94      Individual
Equipment

2018

  Knoxville Eye   The Knoxville Ophthalmology ASC, LLC     51        Suntrust          46,300.38      Individual
Equipment

2268

  Fort Lee NJ Multi   Hudson Crossing Surgery Center, LLC     55        GE Loan          1,918.07      Individual
Equipment

2221

  Plano   Park Ventura Endoscopy Center, LLC     57       
 
 
Tenant
Allowance
Debt 4th
  
  
  
      105,907.12      No Security
Interest

2086

  Kingston   The Kingston Ophthalmology ASC, LLC     51        Wells Fargo          186,724.35      Individual
Equipment
           

 

 

   
  Total             20,401,552.33     
           

 

 

   

 

16


SCHEDULE 1.1(d)

Existing Capitalized Lease Obligations

Item 5 on Schedule 1.1(c) is incorporated herein by reference.

 

17


SCHEDULE 1.1(e)

Existing Liens

 

Debtor

  

Jurisdiction

  

Secured Party /

Other Obligee

  

Collateral /

Amount

  

File Date

  

File Number

Air Ambulance Specialists, Inc.    Colorado    CapitalSource Bank    Equipment   

12/7/12

1/11/13

  

20122075348

20132004029

American Medical Response Ambulance Service, Inc.    Delaware    Var Resources, LLC.    Equipment    12/6/13    2013 4951852
American Medical Response of Southern California    US District Court    National Emergency Medical Services Association    Judgment    8/1/11    Case No. 2:10-cv-09672-JHN-MANx
American Medical Response West    US District Court    National Emergency Medical Services Association    Judgment    1/31/12    Case No. 1:11-CV-00077-AWI-GSA
Bowers Companies, Inc.    California    Timepayment Corporation    Equipment    10/15/12    12-7333728329
Gem City Home Care, LLC.    Ohio    U.S. Bank Equipment Finance, A Division of U.S. Bank National Association    Equipment    2/13/13    OH00164820671
Gem City Home Care, LLC.    Ohio    U.S. Bank Equipment Finance, A Division of U.S. Bank National Association    Equipment    2/22/13    OH00164996389
Guardian Healthcare Holdings, Inc.    Delaware    Ricoh USA Inc    Equipment    1/18/13    2013 0253105
Guardian Health Care, Inc.    Travis County District Court    Texas State Board of Nurse Examiners    Judgment    4/5/07    Cause No. D-1-GN-06-003773
Medstat Ems, Inc.    Mississippi    Dell Financial Services L.L.C.    Equipment   

12/30/08

9/17/13

  

20080282957E

20131141453B

Medstat Ems, Inc.    Mississippi    Dell Financial Services L.L.C.    Equipment   

2/1/11

1/13/16

  

20110309857A

20161870135B

Physicians & Surgeons Ambulance Service, Inc.    Summit County Recorder, OH    Ohio Department of Job and Family Services    Tax    6/6/15    UC130106
Professional Medical Transport, Inc.    Maricopa County Superior Court, AZ    Virgil Nephew    Judgment    8/7/15    TJ2015-005165

 

18


SCHEDULE 1.1(e)

 

Debtor

  

Jurisdiction

  

Secured Party /

Other Obligee

  

Collateral /

Amount

  

File Date

  

File Number

Randle Eastern Ambulance Service, Inc.    Florida    State of Florida, Department of Revenue    Judgment    10/5/16    J16000658694
Rose Radiology, LLC    US District Court    Lisa Corbett and Avant & Mitchell, P.C.    Judgment    10/26/11    Case No. 1:10-cv-00773-SS
Rural/Metro Corporation    Delaware    CCA Financial, LLC    All personal property subject to the Master Lease Agreement dated 12/14/05   

12/15/05

10/29/15

  

5389321 2

20155217186

Rural/Metro Corporation    Delaware    CCA Financial, LLC    All personal property subject to the Master Lease Agreement dated 1/14/10   

1/25/10

12/1/14

  

2010 0255665

2014 4821732

Rural/Metro Corporation    Delaware    Qwest Communications Company, LLC    Equipment    12/15/11    2011 4828433
Rural/Metro Corporation    Delaware    Team Financial Group, Inc.    Equipment    6/11/14    2014 2264208
Rural/Metro of Northern California, Inc.    Delaware    BMO Harris Bank National Association    Lease   

6/10/13

7/29/13

  

2013 2290295

2013 3034619

Rural/Metro Operating Company, LLC    Delaware    Northwest Savings Bank    Equipment   

6/6/12

12/10/12

  

2012 2160838

2012 4778314

Rural/Metro Operating Company, LLC    Delaware    U.S. Bank Equipment Finance, A Division of U.S. Bank National Association    Equipment    3/1/13    2013 0813353
Rural/Metro Operating Company, LLC    Delaware    U.S. Bank Equipment Finance, A Division of U.S. Bank National Association    Equipment    3/1/13    2013 0814989
SW General, Inc.    Maricopa County Recorder, AZ    Steve M. Tidmore, Tidmore Law Offices, L.L.P. and Daniel S. Ho, Law Offices of Ho & Greene, P.L.L.C.    Judgment    12/5/13    20131038640

 

19


SCHEDULE 1.1(e)

 

Debtor

  

Jurisdiction

  

Secured Party /

Other Obligee

  

Collateral /

Amount

  

File Date

  

File Number

T.M.S. Management Group, Inc.    Florida    Dell Financial Services L.L.C.    Equipment    1/18/13    201308276670
Troup County Emergency Medical Services, Inc.    Georgia    Bank of America, N.A.    Equipment    2/14/05    033-2005-001450
North Florida Perinatal Associates, Inc.    Florida Secretary of State    General Electric Capital Corporation    Equipment    3/26/14    201401000175
Physician Office Partners, Inc.    Kansas Secretary of State    Sumner Group, Inc.    Equipment   

5/13/13

6/5/13

8/10/15

2/16/16

4/11/16

9/20/16

  

100368953

100456071

104411964

106478102

107364566

109241481

Physician Office Partners, Inc.    Kansas Secretary of State    Toshiba Financial Services    Equipment    1/4/16    72119220
Sheridan Healthcorp, Inc.    Florida Secured Transaction Registry    Xerox Financial Services    Equipment   

7/25/14

2/26/15

11/17/15

12/21/15

4/29/16

9/23/16

  

201401881147

201503157804

20150573888X

201506038032

20160746455X

201608948429

Sheridan Healthcorp, Inc.    Florida Secured Transaction Registry    General Electric Capital Corporation    Equipment   

6/29/15

6/29/15

6/29/15

6/29/15

6/29/15

6/30/15

6/30/15

6/30/15

6/30/15

8/19/15

9/29/15

11/5/15

11/16/15

  

201504257144

201504257438

201504257489

201504257527

201504266119

20150427572X

201504275738

201504276076

201504273581

201504754156

201505166053

201505643293

201505724811

Sheridan Healthcorp, Inc.    Florida Secured Transaction Registry    GE HFS, LLC    Equipment    8/5/16    201608377731
Valley Anesthesiology Consultants, Ltd.    Arizona Secretary of State    CIT Finance, LLC    Equipment    7/10/12    201216984418
Valley Anesthesiology Consultants, Ltd.    Arizona Secretary of State    Cisco Systems Capital CRP    Equipment    12/14/12    201217201232

 

20


SCHEDULE 1.1(e)

 

Debtor

  

Jurisdiction

  

Secured Party /

Other Obligee

  

Collateral /

Amount

  

File Date

  

File Number

Valley Anesthesiology Consultants, Ltd.    Arizona Secretary of State    GE HFS, LLC    Equipment   

5/30/13

5/30/13

11/24/14

  

201317413236

201317413329

201400364850

Valley Anesthesiology Consultants, Ltd.    Arizona Secretary of State    Everbank Commercial Finance, Inc.    Equipment    5/12/15    201500164137
AmSurg Corp. (predecessor by merger to Envision Healthcare Corporation)    Tennessee Secretary of State    Kingsbridge Holdings, LLC    Equipment    10/4/13    420535029

Liens securing debt listed on Schedule 1.1(a).

Pledge, Collateral Assignment and Control Agreement dated November 30, 2016, among AmSurg Corp., Citibank, N.A., as Secured Party, and Citibank, N.A., as Collateral Agent, which collateralizes continuing letter of credit obligations.

 

21


SCHEDULE 1.1(e)

Existing Investments

1. Ownership interests in the following limited liability companies or limited partnerships, as the case may be:

 

Legal Owner

  

Issuer

  

Direct Percentage

Ownership

  

Indirect Percentage

Ownership of Borrower,

if applicable

Evolution Health LLC    Vivify Health, Inc.    14.29% Series B-1 Shares    N/A
Evolution Health LLC    Vivify Health, Inc.    14.29% Series B-2 Shares    N/A
EMSC    Ziqitza Healthcare Limited    0.3%    N/A
Evolution Health LLC    Ascension Health at Home, LLC    50%    N/A
EmCare, Inc.    UHS-Evolution Homecare, LLC    50%    N/A
EmCare, Inc.    HCA-EmCare Holdings, LLC    50%    N/A
EmCare, Inc.    Integrated Health Ventures LLC    50%    N/A
San Antonio NSC, LLC    SSPC Building, LP    1%    N/A
Austin NSC, LP    Austin Endoscopy Center I, LP    20%    N/A
Austin NSC, LP    Austin Endoscopy Center II, LP    20%    N/A
AmSurg Holdings, Inc.    The Chattanooga Endoscopy ASC, LLC    35%    N/A
The Chattanooga Endoscopy ASC, LLC    AmSurg Chattanooga Anesthesia, LLC    35%    35%
AmSurg Holdings, Inc.    Banner Arizona ASC, LLC    49%    N/A
AmSurg Holdings, Inc.    Baycare Surgery Centers, LLC    49%    N/A
Baycare Surgery Centers, LLC    Trinity Surgery Center, LLC    56%    28.46%
Baycare Surgery Centers, LLC    Bardmoor Surgery Center, LLC    64%    31.36%
AmSurg Holdings, Inc.    Jersey ASC Ventures, LLC    49%    N/A
Jersey ASC Ventures, LLC    The Florham Park Endoscopy ASC, LLC    51%    24.99%
Jersey ASC Ventures, LLC    The Hanover NJ Endoscopy ASC, L.L.C.    51%    24.99%
Jersey ASC Ventures, LLC    Livingston ASC, LLC    100%    49%
Jersey ASC Ventures, LLC    May Street Surgi Center, L.L.C.    51%    24.99%
Jersey ASC Ventures, LLC    West Orange NJ Endoscopy ASC, LLC    51%    24.99%
Jersey ASC Ventures, LLC    West Orange ASC, LLC    100%    49%
AmSurg Holdings, Inc.    AmSurg Baptist Network Alliance, LLC    49%    N/A
AmSurg Baptist Network Alliance, LLC    Baptist Surgery and Endoscopy Centers, L.L.C.    52.7342% interest in a division of the Series LLC    25.84%
AmSurg Holdings, Inc.    CHIC/AMSURG Surgery Centers, LLC    49%    N/A
CHIC/AMSURG Surgery Centers, LLC    Canon City CO Multi-Speciality ASC, LLC    51%    24.99%

 

22


SCHEDULE 1.1(e)

 

Legal Owner

  

Issuer

  

Direct Percentage

Ownership

  

Indirect Percentage

Ownership of Borrower,

if applicable

Torrance NSC, LLC    Torrance Memorial Surgical Center, LLC I    49%    49%
Torrance Memorial Surgical Center, LLC I    Torrance Surgery Center, LP    51%    36.16%
AmSurg Holdings, Inc.    Voorhees Endoscopy Holding Co., LLC    49%    N/A
Voorhees Endoscopy Holding Co., LLC    The Voorhees NJ Endoscopy ASC, LLC    51%    24.99%
AmSurg Holdings, Inc.    Central California Healthcare Holdings, LLC    26.89745%    N/A
Central California Healthcare Holdings, LLC    Sierra Pacific Surgery Center, LLC    99.99%    26.89%
AmSurg Holdings, Inc.    Sierra Pacific Surgery Center, LLC    0.01%    N/A

Central California Healthcare Holdings, LLC

AmSurg Fresno CA, Inc.

   Fresno CA Multi ASC, L.P.   

47.24%

52.76%

   26.89745%
Central California Healthcare Holdings, LLC    AmSurg Fresno CA, Inc.    100%    26.89745%

Central California Healthcare Holdings, LLC

FSC Hospital, LLC

   Fresno Surgery Center, L.P.   

24.887788%

75.102212%

   26.89745%
Central California Healthcare Holdings, LLC    FSC Hospital, LLC    100%    26.89745%
AmSurg Holdings, Inc.    MASC Partners, L.L.C.    20.69%    N/A
MASC Partners, L.L.C.    Manchester Ambulatory Surgery Center, LP    100%    20.69%
AmSurg Holdings, Inc.    Duke Triangle Endoscopy Center, LLC    49%    N/A
Sheridan InvestCo, LLC    HCA-Sheridan Holdings, LLC    51%    N/A
HCA-Sheridan Holdings, LLC    Anesthesia Physician Solutions of North Florida, LLC    100%    51%
HCA-Sheridan Holdings, LLC    Anesthesia Physician Solutions of South Florida, LLC    100%    51%
HCA-Sheridan Holdings, LLC    Anesthesia Physician Solutions of West Florida, LLC    100%    51%
HCA-Sheridan Holdings, LLC    Emergency Physician Solutions of South Florida, LLC    100%    51%
HCA-Sheridan Holdings, LLC    Emergency Physician Solutions of North Florida, LLC    100%    51%
HCA-Sheridan Holdings, LLC    Emergency Physician Solutions of South Florida Peds, LLC    100%    51%
HCA-Sheridan Holdings, LLC    Neonatology Physician Solutions of South Florida, LLC    100%    51%
HCA-Sheridan Holdings, LLC    Radiology Physician Solutions of Florida, LLC    100%    51%
HCA-Sheridan Holdings, LLC    Radiology Physician Solutions of North Florida, LLC    100%    51%

 

23


SCHEDULE 1.1(e)

 

Legal Owner

  

Issuer

  

Direct Percentage

Ownership

  

Indirect Percentage

Ownership of Borrower,

if applicable

HCA-Sheridan Holdings, LLC    Radiology Physician Solutions of West Florida, LLC    100%    51%
Jupiter Healthcare, LLC    Jupiter Medical Specialists, LLC    60%    N/A
Jupiter Medical Specialists, LLC    General Surgery of Jupiter Medical Specialists, LLC    100%    60%
Jupiter Medical Specialists, LLC    Nephrology Services of Jupiter Medical Specialists, LLC    100%    60%
Jupiter Medical Specialists, LLC    Primary Care Services of Jupiter Medical Specialists, LLC    100%    60%
Jupiter Medical Specialists, LLC    Radiology Services of Jupiter Medical Specialists, LLC (f/k/a Radiology Oncology Services of Jupiter Medical Specialists, LLC)    100%    60%
Jupiter Medical Specialists, LLC    Women’s Health and Wellness of Jupiter Medical Specialists, LLC    100%    60%
Valley Anesthesia Consultants, Inc.    RBG – Risk Retention Interest    <5%    N/A
Chandler Emergency Medical Group, L.L.C.    Applied Medico-Legal Solutions Risk Retention Group, Inc.    <1%    N/A
Sheridan CADR Solutions, Inc.    Anesthesia Business Group, LLC    20%    N/A
Global Surgical Partners of Sarasota, L.L.C.    Sarasota Physicians Surgical Center, LLC    10%    10%
Medical Information Management Solutions, LLC    VPC North Scottsdale, LLC    24%    N/A
Medi-Bill of North Florida, Inc.    Surgicare of Orange Park, Ltd.    1%    N/A

 

24


SCHEDULE 5.2

Material Adverse Effect Disclosure

None.

 

25


SCHEDULE 5.3

Good Standing Disclosure

None.

 

26


SCHEDULE 5.4

Consents Required

 

1. Under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “ HSR Act ”), the 2016 Mergers may not be completed until the Company and Holdings each file a notification and report form under the HSR Act with the Federal Trade Commission (the “ FTC ”), and the Antitrust Division of the Department of Justice (the “ DOJ ”), and the applicable waiting period has expired or been terminated. The notification and report forms under the HSR Act were filed with the FTC and DOJ on June 29, 2016 and the HSR waiting period expired on September 1, 2016.

 

2. The Federal Communications Commission must consent to the transfer of control of AMR Holdco, Inc. and various of its Subsidiaries that hold Federal Communications Commission licenses under Title III of the Communications Act of 1934, as amended, 47 U.S.C. Sec. 301, authorizing it to use radio spectrum.

 

3. The Mergers may require consents from, or notice to, Governmental Entities with which Subsidiaries of Holdings do business or in connection with certificates of need or licenses (or exemptions therefrom) issued or granted to such Subsidiaries by Governmental Entities.

 

4. That certain Reaffirmation and Ratification of Continuing Guarantees by and between Fifth Third Bank and AmSurg Corp. dated as of November 14, 2016, consenting to revisions to seventeen (17) Master Loan and Security Agreements.

 

5. That certain Letter Agreement for AmSurg Corp. Mergers with New Amethyst Corp. and Envision Healthcare Holdings, Inc. by and between Whitney Bank and AmSurg Corp. dated as of September 27, 2016.

 

6. That certain Letter Agreement for AmSurg Corp. Mergers with New Amethyst Corp. and Envision Healthcare Holdings, Inc. by and between BBVA Compass Financial Corporation and AmSurg Corp. dated as of November 14, 2016.

 

27


SCHEDULE 5.6

Litigation

Following the announcement of the 2016 Mergers, a purported stockholder of the Envision Healthcare Holdings, Inc. (the “Company”) filed a putative stockholder class action lawsuit against the members of the Company’s board of directors (the “Board”) and Barclays PLC in the Court of Chancery of the state of Delaware on July 15, 2016. The case is captioned Anderson v. Sanger et al. , C.A.No. 12561-CB (Del. Ch.). On September 22, 2016, the plaintiff filed an amended complaint, which alleges that the members of the Company’s Board violated their fiduciary duties in connection with the 2016 Mergers and that Barclays PLC aided and abetted those breaches. Among other remedies, the plaintiff seeks to enjoin the 2016 Mergers from proceeding or, alternatively, damages in the event the 2016 Mergers are consummated. The time for defendants to respond to the motion or to move or answer with respect to the complaint has not yet expired.

On August 31, 2016, a purported Company stockholder filed a putative stockholder class action against the Company, the members of the Board, AmSurg and New Amethyst Corp. in the United States District Court for the District of Colorado, captioned Voth v. Envision Healthcare Holdings, Inc. et al. , No. 1:16-cv-02213 (D. Colo.). On September 8, 2016, another purported Company stockholder filed a similar putative stockholder class action against the Company, the members of the Board, AmSurg and New Amethyst Corp. in the United States District Court for the District of Colorado, captioned LeMay v. Envision Healthcare Holdings, Inc. et al. , No. 1:16-cv-02265 (D. Colo.). The complaint in each lawsuit (the “Related Actions”) alleges that the Company and the members of the Board violated Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder by disseminating a false and misleading registration statement in connection with the 2016 Mergers and that the members of Envision Healthcare’s Board, AmSurg and New Amethyst violated Section 20(a) of the Exchange Act by virtue of their purported status as controlling persons of the Company. Among other remedies, the plaintiffs seek to enjoin the 2016 Mergers from proceeding or, alternatively, rescission of the 2016 Mergers or damages in the event the 2016 Mergers are consummated. On September 30, 2016, the plaintiff in the Voth action filed a motion for expedited discovery. On October 20, 2016, the plaintiff filed a notice of withdrawal of the motion for expedited discovery, and on October 21, 2016, the Court denied the motion as moot. On October 27, 2016, the plaintiff in the Voth action filed an unopposed motion to consolidate the Related Actions, which the court granted on November 15, 2016. The motion to consolidate stated that the plaintiffs plan to dismiss the Related Actions as moot, but will request that the Court retain continuing jurisdiction solely for purposes of further proceedings related to the adjudication of plaintiffs’ anticipated application for an award of attorneys’ fees and expenses based on supplemental disclosure provided by the Company. On November 14, 2016, the court granted the defendants’ unopposed motions in both of the Related Actions to extend Defendants’ time to answer or otherwise respond to each complaint until January 10, 2017. The time for defendants to respond to the motion or to move or answer with respect to the complaint therefore has not yet expired.

 

28


SCHEDULE 5.8

Real Property

None.

 

29


SCHEDULE 5.9

Intellectual Property Claims

None.

 

30


SCHEDULE 5.15

Subsidiaries

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

A1 Leasing, Inc.    Regional Emergency Services, L.P.    Florida    100%
Abbott Ambulance, Inc.    Mission Care of Missouri, LLC    Missouri    100%
Accent Home Health Care Inc.    Guardian Healthcare Holdings, Inc.    Indiana    100%
Access 2 Care, LLC    Mission Care Services, LLC    Missouri    100%
Acute Management, LLC    Hawkeye HoldCo, LLC    Texas    100%
Adam Transportation Service, Inc.    American Medical Response, Inc.    New York    100%
Affilion, Inc.    Sun Devil Acquisition LLC    Delaware    100%
Agape Health Care Agency, LLC.    Guardian Healthcare Holdings, Inc.    Ohio    100%
Air Ambulance Specialists, Inc.    American Medical Response, Inc.    Colorado    100%
Alpha Physician Resources, L.L.C. (a/k/a Alpha Group I, LLC)    EmCare, Inc.    New Jersey    100%
Ambulance Acquisition, Inc.    American Medical Response, Inc.    Delaware    100%
American Emergency Physicians Management, Inc.    EmCare of California, Inc.    California    100%
American Investment Enterprises, Inc.    Mercy, Inc.    Nevada    100%
American Medical Pathways, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response Ambulance Service, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response Delaware Valley, LLC    American Medical Response Mid-Atlantic, Inc.    Delaware    100%
American Medical Response Holdings, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response HPPP, LLC    American Medical Response, Inc. (Sole Member)    Delaware    100%
American Medical Response Management, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response Mid-Atlantic, Inc.    American Medical Response, Inc.    Pennsylvania    100%
American Medical Response Northwest, Inc.    American Medical Response, Inc.    Oregon    100%
American Medical Response of Colorado, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response of Connecticut, Incorporated    American Medical Response, Inc.    Connecticut    100%
American Medical Response of Georgia, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response of Illinois, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response of Inland Empire    American Medical Response, Inc.    California    100%
American Medical Response of Maricopa, LLC    American Medical Response, Inc.    Delaware    100%
American Medical Response of Massachusetts, Inc.    American Medical Response, Inc.    Massachusetts    100%

 

31


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

American Medical Response of New York, LLC    American Medical Response, Inc. (sole member)    New York    100%
American Medical Response of North Carolina, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response of Oklahoma, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response of Pima, LLC    American Medical Response, Inc.    Delaware    100%
American Medical Response of South Carolina, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response of Southern California    American Medical Response Ambulance Service, Inc.    California    100%
American Medical Response of Tennessee, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response of Texas, Inc.    American Medical Response, Inc.    Delaware    100%
American Medical Response West    American Medical Response, Inc.    California    100%
American Medical Response, Inc.    AMR HoldCo, Inc.    Delaware    100%
AMR Bay State, LLC    American Medical Response, Inc. (Sole Member)    Delaware    100%
AMR Brockton, L.L.C.    American Medical Response of Massachusetts, Inc.    Delaware    100%
AMR HoldCo, Inc. (f/k/a EMSC Management, Inc.)    Emergency Medical Services L.P.    Delaware    100%
AMR of Central Texas I, LLC    American Medical Response, Inc.    Texas    100%
AMR of Central Texas II, LLC    AMR of Central Texas I, LLC    Texas    100%
Apex Acquisition LLC    EmCare, Inc.    Delaware    100%
APH Laboratory Services, Inc.    Evolution Health, LLC    Texas    100%
Arizona EMS Holdings, Inc.    R/M Arizona Holdings, Inc.    Arizona    100%
Associated Ambulance Service, Inc.    American Medical Response, Inc.    New York    100%
Atlantic Ambulance Services Acquisition, Inc.    American Medical Response, Inc.    Delaware    100%
Atlantic/Key West Ambulance, Inc.    American Medical Response, Inc.    Delaware    100%
Atlantic/Palm Beach Ambulance, Inc.    American Medical Response, Inc.    Delaware    100%
Beacon Transportation, Inc.    Rural/Metro of Rochester, Inc.    New York    100%
BestPractices, Inc.    Holiday Acquisition Company, Inc.    Virginia    100%
Blythe Ambulance Service    Springs Ambulance Service, Inc.    California    100%
Bowers Companies, Inc.    Rural/Metro of Northern California, Inc.    California    100%
Bravo Reimbursement Specialist, L.L.C. (a/k/a Bravo Associates, L.L.C.)    Alpha Physician Resources, L.L.C    New Jersey    100%
Broward Ambulance, Inc.    American Medical Response, Inc.    Delaware    100%
Care Connection of Cincinnati LLC    Guardian Healthcare Holdings, Inc.    Ohio    100%

 

32


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Clinical Partners Management Company, LLC    EmCare, Inc.    Texas    100%
CMORx, LLC    EmCare, Inc.    Texas    100%
Community Auto and Fleet Services, L.L.C.    Gila HoldCo, LLC    Delaware    100%
Community EMS, Inc.    AMR Bay State, LLC    Massachusetts    100%
ComTrans Ambulance Service, Inc.    Arizona EMS Holdings, Inc.    Arizona    100%
ComTrans, Inc.    Gila HoldCo, LLC    Delaware    100%
Corning Ambulance Service Inc.    Rural/Metro of New York, Inc.    New York    100%
Desert Valley Medical Transport, Inc.    American Medical Response of Inland Empire    California    100%
Donlock, Ltd.    Rural/Metro Operating Company, LLC    Pennsylvania    100%
E.M.S. Ventures, Inc.    Rural/Metro Corporation (AZ)    Georgia    100%
Eastern Ambulance Service, Inc.    Rural/Metro Corporation (AZ)    Nebraska    100%
Eastern Paramedics, Inc.    Rural/Metro of New York, Inc.    Delaware    100%
ED Solutions, LLC    Alpha Physician Resources, L.L.C    New Jersey    100%
EDIMS, L.L.C.    Alpha Physician Resources, L.L.C    New Jersey    100%
EHR Management Co.    EmCare, Inc.    Delaware    100%
EmCare Anesthesia Providers, Inc.    EmCare, Inc.    Delaware    100%
EmCare HoldCo, Inc.    Emergency Medical Services L.P.    Delaware    100%
EmCare Holdings Inc.    EmCare HoldCo, Inc.    Delaware    100%
EmCare of California, Inc.    EmCare, Inc.    California    100%
EmCare Physician Providers, Inc.    EmCare, Inc.    Missouri    100%
EmCare Physician Services, Inc.    EmCare, Inc.    Delaware    100%
EmCare, Inc.    EmCare Holdings Inc.    Delaware    100%

Emergency Medical Services LP Corporation

(f/k/a Emergency Medical Services L.P.)

   Emergency Medical Services Corporation / EMS Executive Investco LLC    Delaware    97% / 3%
Emergency Medical Transport, Inc.    Arizona EMS Holdings, Inc.    Arizona    100%
Emergency Medical Transportation, Inc.    AMR Bay State, LLC    Massachusetts    100%
Emergency Medicine Education Systems, Inc.    EmCare, Inc.    Texas    100%
EMS Management LLC    AMR HoldCo, Inc. / EmCare HoldCo, Inc.    Delaware    50% / 50%
EMS Offshore Medical Services, LLC    American Medical Response, Inc.    Delaware    100%
EMS Ventures of South Carolina, Inc.    Rural/Metro Corporation (AZ)    South Carolina    100%
EMSC ServicesCo, LLC (f/k/a EMSC TransactionCo, LLC)    Envision Healthcare Corporation (sole member)    Delaware    100%
Epsilon Management Group, Inc.    EmCare, Inc. (Majority Shareholder)    Delaware    100%

 

33


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

ERgency Staffing and Recruiting, LLC    Epsilon Management Group, Inc.    Michigan    100%
EverRad, LLC    Templeton Readings, LLC    Florida    100%
Evolution Health LLC    Emergency Medical Services LP Corporation    Delaware    100%
Evolution Mobile Imaging, LLC    Evolution Health, LLC (Sole Member)    Delaware    100%
Five Counties Ambulance Service, Inc.    American Medical Response, Inc.    New York    100%
Florida Emergency Partners, Inc.    American Medical Response, Inc.    Texas    100%
Fountain Ambulance Service, Inc.    Hank’s Acquisition Corp.    Alabama    100%
Gem City Home Care, LLC.    Guardian Healthcare Holdings, Inc.    Ohio    100%
Gila Holdco LLC    American Medical Response, Inc.    Delaware    100%
Gold Coast Ambulance Service    V.I.P. Professional Services, Inc.    California    100%
Gold Cross Ambulance Service of Pa., Inc.    Gold Cross Ambulance Services, Inc.    Ohio    100%
Gold Cross Ambulance Services, Inc.    Rural/Metro of Ohio, Inc.    Delaware    100%
Grace Behavioral Health, L.L.C.    Gila HoldCo, LLC    Delaware    100%
Greater Pinellas Transportation Management Services, Inc.    Transportation Management Services of Brevard, Inc.    Florida    100%
Guardian Health Care, Inc.    Guardian Healthcare Holdings, Inc.    Texas    100%
Guardian Healthcare Group, Inc.    Evolution Health, LLC    Delaware    100%
Guardian Healthcare Holdings, Inc.    Guardian Healthcare Group, Inc.    Delaware    100%
Guardian Ohio Newco, LLC    Guardian Healthcare Holdings, Inc.    Ohio    100%
Hank’s Acquisition Corp.    American Medical Response, Inc.    Alabama    100%
Hawkeye Holdco LLC    EmCare, Inc. is Sole Member    Delaware    100%
Health Priority Home Care, Inc.    Guardian Health Care, Inc.    Texas    100%
Healthcare Administrative Services, Inc.    EmCare, Inc.    Delaware    100%
Hemet Valley Ambulance Service, Inc.    American Medical Response Ambulance Service, Inc.    California    100%
Herren Enterprises, Inc.    American Medical Response Ambulance Service, Inc.    California    100%
Holiday Acquisition Company, Inc.    EmCare, Inc.    Colorado    100%
International Life Support, Inc.    American Medical Response of Colorado, Inc.    Hawaii    100%
JLM Healthcare, Inc.    Guardian Healthcare Holdings, Inc.    Texas    100%
KMAC, Inc.    Guardian Healthcare Holdings, Inc.    Texas    100%
Kutz Ambulance Service, Inc.    American Medical Response, Inc.    Wisconsin    100%
LaSalle Ambulance Inc.    Rural/Metro of New York, Inc.    New York    100%
Life Line Ambulance Service, Inc.    American Medical Response, Inc.    Arizona    100%
LifeCare Ambulance Service, Inc.    American Medical Response Ambulance Service, Inc.    Illinois    100%
LifeFleet Southeast, Inc.    American Medical Response, Inc.    Florida    100%

 

34


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Mainstay Solutions, LLC    R/M Management Co., Inc. & Rural/Metor Corporation    Arizona    100%
Marlboro Hudson Ambulance & Wheelchair Service, Inc.    AMR Bay State, LLC    Massachusetts    100%
MedAssociates, LLC    EmCare, Inc.    Texas    100%
Medevac Medical Response, Inc.    American Medical Response, Inc.    Missouri    100%
Medevac MidAmerica, Inc.    American Medical Response, Inc.    Missouri    100%
Medic One Ambulance Services, Inc.    American Medical Response, Inc.    Delaware    100%
Medic One of Cobb, Inc.    American Medical Response Ambulance Service, Inc.    Georgia    100%
Medical Emergency Devices and Services (MEDS), Inc.    Rural/Metro Operating Company, LLC    Arizona    100%
Medi-Car Ambulance Service, Inc.    Medi-Car Systems, Inc.    Florida    100%
Medi-Car Systems, Inc.    American Medical Response, Inc.    Florida    100%
Medics Ambulance Service (Dade), Inc.    American Medical Response, Inc.    Florida    100%
Medics Ambulance Service, Inc.    American Medical Response, Inc.    Florida    100%
Medics Ambulance, Inc.    American Medical Response, Inc.    Florida    100%
Medics Emergency Services of Palm Beach County, Inc.    American Medical Response, Inc.    Florida    100%
Medics Subscription Services, Inc.    American Medical Response, Inc.    Florida    100%
Medics Transport Services, Inc.    American Medical Response, Inc.    Florida    100%
MedicWest Ambulance, Inc.    MedicWest Holdings, Inc.    Nevada    100%
MedicWest Holdings, Inc.    Nevada Red Rock Ambulance, Inc.    Delaware    100%
MedLife Emergency Medical Service, Inc.    Hank’s Acquisition Corp.    Alabama    100%
MedStat EMS, Inc.    American Medical Response, Inc.    Mississippi    100%
Mercury Ambulance Service, Inc.    Rural/Metro Corporation (AZ)    Kentucky    100%
Mercy Ambulance of Evansville, Inc.    Paramed, Inc.    Indiana    100%
Mercy Life Care    American Medical Response Ambulance Service, Inc.    California    100%
Mercy, Inc.    American Medical Response Ambulance Service, Inc.    Nevada    100%
Metro Ambulance Service (Rural), Inc.    American Medical Response, Inc.    Delaware    100%
Metro Ambulance Service, Inc.    American Medical Response, Inc.    Delaware    100%
Metro Ambulance Services, Inc.    American Medical Response, Inc.    Georgia    100%
Metro Care Corp.    Rural/Metro Operating Company, LLC    Ohio    100%
MetroCare Services – Abilene, L.P.    AMR of Central Texas I, LLC    Texas    100%
Metropolitan Ambulance Service    American Medical Response West    California    100%
Midwest Ambulance Management Company    American Medical Response, Inc.    Delaware    100%
Mission Care of Illinois, LLC    Mission Care Services, LLC    Illinois    100%

 

35


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Mission Care of Missouri, LLC    Mission Care Services, LLC    Missouri    100%
Mission Care Services, LLC    American Medical Response, Inc.    Missouri    100%
Mobile Medic Ambulance Service, Inc.    American Medical Response, Inc.    Delaware    100%
MSO Newco, LLC    Apex Acquisition LLC    Delaware    100%
National Ambulance & Oxygen Service, Inc.    Rural/Metro of Rochester, Inc.    New York    100%
Nevada Red Rock Ambulance, Inc.    Nevada Red Rock Holdings, Inc.    Delaware    100%
Nevada Red Rock Holdings, Inc.    American Medical Response, Inc.    Delaware    100%
North Miss. Ambulance Service, Inc.    Rural/Metro Operating Company, LLC    Mississippi    100%
Northwood Anesthesia Associates, L.L.C.    EmCare, Inc.    Florida    100%
Oherbst, Inc.    Guardian Healthcare Holdings, Inc.    Texas    100%
Pacific Ambulance, Inc.    Rural/Metro of Northern California, Inc.    California    100%
Paramed, Inc.    American Medical Response, Inc.    Michigan    100%
Park Ambulance Service Inc.    American Medical Response, Inc.    New York    100%
Patient Advocacy Group, LLC    AMR Holdco, Inc.    Delaware    100%
Phoenix Physicians, LLC    EmCare, Inc. (sole Member)    Florida    100%
Physician Account Management, Inc.    EmCare Physician Providers, Inc.    Florida    100%
Physicians & Surgeons Ambulance Service, Inc.    American Medical Response, Inc.    Ohio    100%
Pinnacle Consultants Mid-Atlantic, L.L.C.    Apex Acquisition LLC    Delaware    100%
Professional Medical Transport, Inc.    Arizona EMS Holdings, Inc.    Arizona    100%
Proven Healthcare Solutions of New Jersey, LLC (a/k/a Proven Healthcare Solutions)    Alpha Physician Resources, L.L.C    New Jersey    100%
ProvidaCare, L.L.C.    American Medical Pathways, Inc.    Texas    100%
Provider Account Management, Inc.    EmCare Physician Services, Inc.    Delaware    100%
Puckett Ambulance Service, Inc.    American Medical Response Ambulance Service, Inc.    Georgia    100%
QRx Medical Management, LLC    EmCare, Inc. (sole Member)    Delaware    100%
R/M Arizona Holdings, Inc.    Rural/Metro Corporation (AZ)    Arizona    100%
R/M Management Co., Inc.    Rural/Metro Corporation (AZ)    Arizona    100%
R/M of Tennessee G.P., Inc.    Rural/Metro Corporation of Tennessee    Delaware    100%
R/M of Tennessee L.P., Inc.    Rural/Metro Corporation of Tennessee    Delaware    100%
Radiology Staffing Solutions, Inc.    EmCare, Inc.    Delaware    100%
Radstaffing Management Solutions, Inc.    EmCare, Inc.    Delaware    100%
Randle Eastern Ambulance Service, Inc.    American Medical Response, Inc.    Florida    100%

 

36


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Regional Emergency Services, L.P.    Florida Emergency Partners, Inc. / American Medical Response Management, Inc.    Delaware    1% / 99%
Reimbursement Technologies, Inc.    EmCare, Inc.    Pennsylvania    100%
River Medical Incorporated    Arizona Oasis Acquisition, Inc.    Arizona    100%
RMC Corporate Center, L.L.C.    Rural/Metro Corporation    Arizona    100%
Rose Radiology, LLC    Spotlight HoldCo, LLC    Texas    100%
Rural/Metro (Delaware) Inc.    Rural/Metro Operating Company, LLC    Delaware    100%
Rural/Metro Corporation    WP Rocket Holdings, Inc.    Delaware    100%
Rural/Metro Corporation    Rural/Metro Operating Company, LLC    Arizona    100%
Rural/Metro Corporation of Florida    Rural/Metro Corporation (AZ)    Florida    100%
Rural/Metro Corporation of Tennessee    Rural/Metro Corporation (AZ)    Tennessee    100%
Rural/Metro Fire Dept., Inc.    Rural/Metro Corporation (AZ)    Arizona    100%
Rural/Metro Mid-South, L.P.    North Miss. Ambulance Service, Inc. / R/M of Tennesseee, G.P., Inc.    Delaware    99% / 1%
Rural/Metro of Brewerton, Inc.    Eastern Paramedics, Inc.    New York    100%
Rural/Metro of California, Inc.    Rural/Metro Corporation (AZ)    Delaware    100%
Rural/Metro of Central Alabama, Inc.    Rural/Metro Corporation (AZ)    Delaware    100%
Rural/Metro of Central Colorado, Inc.    Rural/Metro Operating Company, LLC    Delaware    100%
Rural/Metro of Central Ohio, Inc.    Rural/Metro of Ohio, Inc.    Delaware    100%
Rural/Metro of Greater Seattle, Inc.    Rural/Metro Operating Company, LLC    Washington    100%
Rural/Metro of Indiana, L.P.    The Aid Ambulance Company, Inc. / The Aid Company, Inc.    Delaware    100%
Rural/Metro of New York, Inc.    Rural/Metro Corporation (AZ)    Delaware    100%
Rural/Metro of Northern California, Inc.    Rual/Metro of California, Inc.    Delaware    100%
Rural/Metro of Northern Ohio, Inc.    Rural/Metro of Ohio, Inc.    Delaware    100%
Rural/Metro of Ohio, Inc.    Rural/Metro Corporation (AZ)    Delaware    100%
Rural/Metro of Oregon, Inc.    Rural/Metro Corporation (AZ)    Delaware    100%
Rural/Metro of Rochester, Inc.    Rural/Metro of New York, Inc.    New York    100%
Rural/Metro of San Diego, Inc.    Rural/Metro of California, Inc.    California    100%
Rural/Metro of Southern California, Inc.    Rural/Metro of California, Inc.    Delaware    100%
Rural/Metro of Southern Ohio, Inc.    Rural/Metro Operating Company, LLC    Ohio    100%
Rural/Metro of Tennessee, L.P.    R/M of Tennessee, L.P., Inc. / R/M of Tennessee, G.P., Inc.    Delaware    99% / 1%
Rural/Metro Operating Company, LLC    Rural/Metro Corporation (DE)    Delaware    100%
S. Fisher & S. Thomas Inc.    Guardian Healthcare Holdings, Inc.    Texas    100%

 

37


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

San Diego Medical Services Enterprise, LLC    Rural/Metro of Southern California, Inc. & Rural/Metro of San Diego, Inc.    California    100%
Seawall Acquisition, LLC    American Medical Response, Inc.    Delaware    100%
Seminole County Ambulance, Inc.    American Medical Response, Inc.    Delaware    100%
Sioux Falls Ambulance, Inc.    Rural.Metro Corporation (AZ)    South Dakota    100%
Southwest Ambulance and Rescue of Arizona, Inc.    Southwest Ambulance of Casa Grande, Inc.    Arizona    100%
Southwest Ambulance of Casa Grande, Inc.    Rural/Metro Operating Company, LLC    Arizona    100%
Southwest Ambulance of New Mexico, Inc.    Rural/Metro Operating Company, LLC    New Mexico    100%
Southwest Ambulance of Southeastern Arizona, Inc.    Southwest Ambulance of Casa Grande, Inc.    Arizona    100%
Southwest Ambulance of Tucson, Inc.    Rural/Metro Operating Company, LLC    Arizona    100%
Southwest General Services, Inc.    Rural/Metro Operating Company, LLC    Arizona    100%
Spotlight Holdco LLC    EmCare, Inc.    Delaware    100%
Springs Ambulance Service, Inc.    American Medical Response, Inc.    California    100%
SSAG, LLC    Gila HoldCo, LLC    Delaware   
STAT Healthcare, Inc.    American Medical Response, Inc.    Delaware    100%
Streamlined Medical Solutions LLC    EmCare, Inc. (sole member)    Texas    100%
Sun Devil Acquisition LLC    EmCare, Inc.    Delaware    100%
Sunrise Handicap Transport Corp.    American Medical Response, Inc.    New York    100%
SW General, Inc.    Rural/Metro Operating Company, LLC    Arizona    100%
T.M.S. Management Group, Inc.    Access2Care, LLC    Florida    100%
TEK Ambulance, Inc.    American Medical Response Ambulance Service, Inc.    Illinois    100%
Templeton Readings, LLC    EmCare, Inc.    Maryland    100%
The Aid Ambulance Company, Inc.    Rural/Metro Corporation (AZ)    Delaware    100%
The Aid Company, Inc.    Rural/Metro Operating Company, LLC    Indiana    100%
Tidewater Ambulance Service, Inc.    Paramed, Inc.    Virginia    100%
TKG, Inc.    Guardian Healthcare Holdings, Inc.    Oklahoma    100%
Towns Ambulance Service, Inc.    Rural/Metro of New York, Inc.    New York    100%
Transportation Management Services of Brevard, Inc.    Access2Care, LLC    Florida    100%
Troup County Emergency Medical Services, Inc.    American Medical Response of Georgia, Inc.    Georgia    100%
V.I.P. Professional Services, Inc.    Seawall Acquisition, LLC    California    100%
Valley Fire Service, Inc.    Rural/Metro of Oregon, Inc.    Delaware    100%
Velita Smith Home Health, Inc.    Guardian Health Care, Inc.    Texas    100%
Vista Staffing Solutions, Inc.    EmCare, Inc.    Delaware    100%

 

38


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Vital Enterprises, Inc.    AMR Bay State, LLC    Massachusetts    100%
W & W Leasing Company, Inc.    Rural/Metro Corporation (AZ)    Arizona    100%
Whitaker Physicians Services, L.L.C.    Vista Staffing Solutions, Inc.    Texas    100%
WP Rocket Holdings Inc.    AMR HoldCo, Inc.    Delaware    100%
AmSurg KEC, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg EC Topeka, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg EC St. Thomas, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg EC Beaumont, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg EC Santa Fe, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg EC Washington, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Finance, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Torrance, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Abilene, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Maryville, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Melbourne, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Hillmont, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Northwest Florida, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Palmetto, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Ocala, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Crystal River, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Abilene Eye, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg El Paso, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg La Jolla, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Burbank, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Inglewood, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Suncoast, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg San Antonio TX, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Temecula CA, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Escondido CA, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg San Luis Obispo CA, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Scranton PA, Inc.    AmSurg Holdings, Inc.    Tennessee    100%
AmSurg Arcadia CA, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Main Line PA, LLC    ASDH I, LLC    Tennessee    100%
AmSurg Oakland CA, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Lancaster PA, LLC    ASDH I, LLC    Tennessee    100%
AmSurg Pottsville PA, LLC    ASDH I, LLC    Tennessee    100%
AmSurg Glendora CA, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Holdings, Inc.    Envision Healthcare Corporation    Delaware    100%
AmSurg Anesthesia Management Services, LLC    Envision Healthcare Corporation    Tennessee    100%
ASDH I, LLC   

Sheridan Healthcare, Inc.

Envision Healthcare Corporation

   Tennessee   

5%

95%

Long Beach NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Torrance NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Davis NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%

 

39


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Fullerton NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
San Antonio NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Austin NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Austin NSC, LP   

AmSurg Holdings, Inc.

Austin NSC, LLC

   Texas   

99%

1%

Twin Falls NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Kenwood NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Towson NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Wilton NSC, LLC    AmSurg Holdings, Inc.    Connecticut    100%
NSC West Palm, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Tampa Bay NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Coral Springs NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
Weston NSC, LLC    AmSurg Holdings, Inc.    Tennessee    100%
SHI II, LLC    Sheridan Holdings, Inc.    Tennessee    100%
NSC RBO East, LLC    AmSurg Holdings, Inc.    Tennessee    100%
AmSurg Colton CA, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Fresno Endoscopy, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Temecula II, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Kissimmee FL, Inc.    Envision Healthcare Corporation    Tennessee    100%
AmSurg Altamonte Springs FL, Inc.    Envision Healthcare Corporation    Tennessee    100%
All Women’s Healthcare Holdings, Inc.    Sheridan Holdings, Inc.    Delaware    100%
All Women’s Healthcare, Inc.    All Women’s Healthcare Holdings, Inc.    Florida    100%
All Women’s Healthcare of Dade, Inc.    All Women’s Healthcare Holdings, Inc.    Florida    100%
All Women’s Healthcare of Sawgrass, Inc.    All Women’s Healthcare Holdings, Inc.    Florida    100%
All Women’s Healthcare of West Broward, Inc.    All Women’s Healthcare Holdings, Inc.    Florida    100%
All Women’s Healthcare Services, Inc.    All Women’s Healthcare Holdings, Inc.    Florida    100%
AllegiantMD, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Anesthesiologists of Greater Orlando, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Arizona Perinatal Care Centers, LLC    Sheridan Healthcorp, Inc.    Arizona    100%
Anesthesiology Associates of Tallahassee, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Bay Area Anesthesia, L.L.C.    Sheridan Healthcorp, Inc.    Florida    100%
Bethesda Anesthesia Associates, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Boca Anesthesia Service, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Broad Midwest Anesthesia, LLC    Sheridan Healthcorp, Inc.    Missouri    100%
Coastal Anesthesia Staffing, LLC    Coastal Anesthesiology Consultants, LLC    Florida    100%

 

40


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Coastal Anesthesiology Consultants, LLC    Sheridan Healthcorp, Inc.    Florida    100%
Chandler Emergency Medical Group, L.L.C. d/b/a Premier Emergency Medical Specialists    Sheridan Emergency Physician Services, Inc.    Arizona    100%
Discovery Clinical Research, Inc.    All Women’s Healthcare Holdings, Inc.    Florida    100%
Doctors Billing Service, Inc.    Partners in Medical Billing, Inc.    California    100%
Drs. Ellis, Rojas, Ross & Debs, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Flamingo Anesthesia Associates, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
FM Healthcare Services, Inc.    FMO Healthcare Holdings, Inc.    Florida    100%
FO Investments, Inc.    FMO Healthcare Holdings, Inc.    Florida    100%
FO Investments II, Inc.    FMO Healthcare Holdings, Inc.    Florida    100%
FO Investments III, Inc.    FMO Healthcare Holdings, Inc.    Florida    100%
FMO Healthcare Holdings, Inc.    Sheridan Holdings, Inc.    Delaware    100%
Global Surgical Partners, Inc.    FM Healthcare Services, Inc.    Florida    100%
Greater Florida Anesthesiologists, LLC    Sheridan Healthcorp, Inc.    Florida    100%
Gynecologic Oncology Associates, Inc.    Sheridan Healthcare, Inc.    Florida    100%
Jacksonville Beaches Anesthesia Associates, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Jupiter Anesthesia Associates, L.L.C.    Sunbeam Asset, LLC    Florida    100%
Jupiter Healthcare, LLC    Sheridan Healthcorp, Inc.    Florida    100%
Medi-Bill of North Florida, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Medical Information Management Solutions, LLC    Sheridan Healthcorp, Inc.    Arizona    100%
NAC Properties, LLC    Sheridan Healthcorp, Inc.    Georgia    100%
New Generations Babee Bag, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
North Florida Anesthesia Consultants, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
North Florida Perinatal Associates, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Parity Healthcare, Inc.    Sheridan Healthcare, Inc.    Florida    100%
Partners in Medical Billing, Inc.    Sheridan Holdings, Inc.    Florida    100%
Physician Office Partners, Inc.    Partners in Medical Billing, Inc.    Kansas    100%
Sentinel Healthcare Services, LLC    Sheridan Healthcorp, Inc.    Georgia    100%
Sheridan Anesthesia Services of Alabama, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Anesthesia Services of Louisiana, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Anesthesia Services of Virginia, Inc.    Sheridan Healthcare of Virginia, Inc.    Florida    100%
Sheridan CADR Solutions, Inc.    Sheridan Healthcorp, Inc.    Florida    100%

 

41


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Sheridan Children’s Healthcare Services, Inc.    Sheridan Healthcare, Inc.    Florida    100%
Sheridan Children’s Healthcare Services of Arizona, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan Children’s Healthcare Services of Louisiana, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan Children’s Healthcare Services of New Mexico, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan Children’s Healthcare Services of Kentucky, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan Children’s Healthcare Services of Ohio, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan Children’s Healthcare Services of Virginia, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan Clinical Research, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Emergency Physician Services, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Emergency Physician Services of North Missouri, Inc.    Sheridan Emergency Physician Services, Inc.    Florida    100%
Sheridan Emergency Physician Services of Missouri, Inc.    Sheridan Emergency Physician Services, Inc.    Florida    100%
Sheridan Emergency Physician Services of South Florida, Inc.    Sheridan Emergency Physician Services, Inc.    Florida    100%
Sheridan Healthcare, Inc.    Sheridan Holdings, Inc.    Delaware    100%
Sheridan Healthcare of Louisiana, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Healthcare of Missouri, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Healthcare of Vermont, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Healthcare of Virginia, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Healthcare of West Virginia, Inc.    Sheridan Healthcorp, Inc.    West Virginia    100%
Sheridan Healthcorp, Inc.    Sheridan Healthcare, Inc.    Florida    100%
Sheridan Healthcorp of California, Inc.    Sheridan Healthcorp, Inc.    California    100%
Sheridan Healthy Hearing Services, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan Holdings, Inc.    Envision Healthcare Corporation    Delaware    100%
Sheridan Hospitalist Services of Florida, Inc.    Sheridan Emergency Physician Services, Inc.    Florida    100%
Sheridan InvestCo, LLC   

Sheridan Healthcorp, Inc.

Sheridan Emergency Physician Services, Inc.

Florida United Radiology, L.C.

   Delaware   

33.333%

33.333%

33.333%

Sheridan Leadership Academy, Inc.    Sheridan Holdings, Inc.    Florida    100%

 

42


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Sheridan Radiology Services, Inc.    Sheridan Holdings, Inc.    Delaware    100%
Sheridan Radiology Management Services, Inc.    Sheridan Radiology Services, Inc.    Delaware    100%
Sheridan ROP Services of Florida, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan ROP Services of Virginia, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Sheridan Scientific Intelligence, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Southeast Perinatal Associates, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
Sunbeam Asset LLC    Sheridan Healthcorp, Inc.    Delaware    100%
Tennessee Valley Neonatology, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
Tiva Healthcare, Inc.    Sheridan Healthcare, Inc.    Florida    100%
Valley Anesthesiology Consultants, Inc.    Sheridan Healthcorp, Inc.    Arizona    100%
Valley Clinical Research, Inc.    Sheridan Healthcorp, Inc.    Florida    100%
St. Lucie Anesthesia Associates, LLC    Sheridan Healthcorp, Inc.    Florida    100%
Sheridan Children’s Services of Alabama, Inc.    Sheridan Children’s Healthcare Services, Inc.    Florida    100%
The Kissimmee FL Endoscopy ASC, LLC    AmSurg Kissimmee FL, Inc.    Tennessee    51%
The Altamonte Springs FL Endoscopy ASC, LLC    AmSurg Altamonte Springs FL, Inc.    Tennessee    51%
Southern Idaho Ambulatory Surgery Center, LLC    Twin Falls NSC, LLC    Idaho    54.78%
Kenwood ASC, LLC    Kenwood NSC, LLC    Ohio    75.94%
Towson Surgical Center, LLC    Towson NSC, LLC    Maryland    66.18%
Coral Springs Ambulatory Surgery Center, LLC    Coral Springs NSC, LLC    Florida    63.72%
Stamford/NSC Management, LLC    Wilton NSC, LLC    Connecticut    50.0%
Wilton Surgery Center, LLC    Stamford/NSC Management, LLC    Connecticut    54.92%
Center of Morehead City, LLC    AmSurg Holdings, Inc.    Tennessee    60%
Eastern Shore Endoscopy, LLC    AmSurg Holdings, Inc.    Tennessee    55%
Central Massachusetts Ambulatory Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    55%
The Knoxville Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Montgomery Eye Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
EyeCare Consultants Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Columbia ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Wichita Orthopaedic ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Willoughby ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%

 

43


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

The Westglen Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Chevy Chase ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Oklahoma City ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Cincinnati ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Fayetteville ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Independence ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
AmSurg Northern Kentucky GI, LLC    AmSurg Holdings, Inc.    Tennessee    51%
AmSurg Louisville GI, LLC    AmSurg Holdings, Inc.    Tennessee    51%
AmSurg Kentucky Ophthalmology, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Phoenix Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Toledo Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Sun City Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Cape Coral/Ft. Myers Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Baltimore Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    60%
The Boca Raton Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Minneapolis Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Northside Gastroenterology Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Mount Dora Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    54%
The Oakhurst Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Waldorf Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Sarasota Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Middletown Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Dover Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Surgery Center of Middle Tennessee, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Kingston Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Las Vegas East Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Nevada    51%
The Blue Ridge/Clemson Orthopaedic ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Hutchinson Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%

 

44


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

The Metairie Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    69.2%
College Heights Endoscopy Center, L.L.C.    AmSurg Holdings, Inc.    Tennessee    56%
Ocala FL Orthopaedic ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Bel Air Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Bloomfield Eye Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Newark Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Southfield Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Alexandria Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Columbia ASC Northwest, LLC    AmSurg Holdings, Inc.    Tennessee    51%
St. George Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Paducah Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Greenville ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Columbia TN Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Rogers AR Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Tulsa OK Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Kingsport TN Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Lewes DE Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Winter Haven/Sebring FL Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Rockledge FL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Tampa FL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Pueblo CO Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Western Washington Endoscopy Centers, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Lakeland FL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    60.31%
The Northern NV Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Edina MN Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The West Palm Beach FL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%

 

45


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Gainesville FL Orthopaedic ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Raleigh NC Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Lake Bluff IL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Sun City AZ Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Overland Park KS Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Casper WY Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Rockville MD Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Blue Water ASC, LLC    AmSurg Holdings, Inc.    Michigan    51%
Greenspring Station Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Maryland    51%
Maryland Endoscopy Center Limited Liability Company    AmSurg Holdings, Inc.    Maryland    51%
The Scranton PA GP, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Orlando FL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The St. Louis MO Orthopaedic ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Yuma AZ Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Greensboro NC Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Tulsa OK Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The St. Cloud MN Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Salem OR Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The El Dorado Multi- Specialty ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Nashville TN Ophthalmology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Laurel MD Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Torrance CA Muti-Specialty ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Shenandoah TX Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The New Orleans LA Uptown/West Bank Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Metairie LA Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%

 

46


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

The Rockville, ESC-North MD Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Silver Spring MD Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Ocean Endosurgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The South Bend IN Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Mesquite TX Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Conroe TX Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Glendale AZ Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Poway CA Multi-Specialty ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51.57%
The San Diego CA Multi-Specialty ASC, LLC    AmSurg Holdings, Inc.    Tennessee    52.21%
The Baton Rouge LA Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Pikesville MD Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Glen Burnie MD Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
West Bridgewater MA Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Orlando/Mills FL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Miami Kendall FL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
St. Clair Shores MI Opthamology ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Marin Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Blaine MN Multi-Specialty ASC, LLC    AmSurg Holdings, Inc.    Tennessee    53%
Casa Colina Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Digestive Health Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Digestive Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Phoenix Orthopaedic Ambulatory Center, L.L.C.    AmSurg Holdings, Inc.    Tennessee    51%
Gastroenterology Associates Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Phoenix Endoscopy, L.L.C.    AmSurg Holdings, Inc.    Tennessee    51%
Central Texas Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Eye Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Carroll County Digestive Disease Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%

 

47


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Elms Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
TEC North, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Hermitage TN Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Central Park Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    55%
North Richland Hills Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    57%
Old Town Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    56.3648%
Park Ventura Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    54.6363%
Redbird Square Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    57%
North Valley Orthopedic Surgery Center, L.L.C.    AmSurg Holdings, Inc.    Tennessee    55%
Boston Out-Patient Surgical Suites, L.L.C.    AmSurg Holdings, Inc.    Tennessee    58.25%
Waco Gastroenterology Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Bethesda Outpatient Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    55.42%
Hillmoor Eye Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    55%
Surgery Center of Volusia, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Arizona Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    55%
COA ASC of Franklin County, LLC    AmSurg Holdings, Inc.    Tennessee    51%
North Valley Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
MDSINE, LLC    AmSurg Holdings, Inc.    Tennessee    52.17%
Pioneer Valley Surgicenter, LLC    AmSurg Holdings, Inc.    Tennessee    63%
East Valley Endoscopy, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Eagle Eye Surgery and Laser Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Doctors Park Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Eastern Massachusetts Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    61.36428%
Sierra Pacific Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    0.01%
Northeast Surgical Care of Newington, LLC    AmSurg Holdings, Inc.    Tennessee    53.50%
AmSurg Tampa Bay Anesthesia, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Middlesex Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    65%
Mid Atlantic Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Glen Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
32nd Street Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    57.43%

 

48


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

WB Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    55.196%
Red River Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    52.75%
Eastern Connecticut Endoscopy Center, LLC    AmSurg Holdings, Inc.    Connecticut    51%
Boston Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    60%
Connecticut Eye Surgery Center South, LLC    AmSurg Holdings, Inc.    Connecticut    51%
Hudson Crossing Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51.8407%
Short Hills Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51.2069%
Surgery Center of Allentown, LLC    AmSurg Holdings, Inc.    Tennessee    62.%
Cascade Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Diagnostic Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    62%
Oak Lawn IL Endoscopy ASC, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Physicians’ Eye Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    54.32%
Center for Ambulatory Surgery, LLC    AmSurg Holdings, Inc.    Tennessee    53.5%
St. Charles-AmSurg ASC Partners, LLC    AmSurg Holdings, Inc.    Delaware    51%
AmSurg Rockledge FL Anesthesia, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Bend Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Eye Surgery Center of Wichita, LLC.    AmSurg Holdings, Inc.    Tennessee    51%
River Drive Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    58.71540%
South Portland Surgical Center, LLC    AmSurg Holdings, Inc.    Tennessee    55%
Eye Surgery Center of Western Ohio, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Surgical Speciality Center of Northeastern Pennsylvania, LLC    AmSurg Holdings, Inc.    Tennessee    1%
Sunrise Ambulatory Surgical Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
AmSurg Columbia Anesthesia, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Surgical Center of Millburn, LLC    AmSurg Holdings, Inc.    Tennessee    55%
Associated Eye Surgical Center, LLC    AmSurg Holdings, Inc.    Tennessee    53%
Campus Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    56.4103%
Waverly Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    55%
Surgery Center of Northeast Texas, LLC    AmSurg Holdings, Inc.    Tennessee    53%
Nashville Gastrointestinal Specialists, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Connecticut Eye Anesthesia, LLC    AmSurg Holdings, Inc.    Tennessee    51%

 

49


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
Ocean Springs Surgical and Endoscopy Center, LLC    AmSurg Holdings, Inc.    Tennessee    51%
The Endoscopy Center of Knoxville, L.P.    AmSurg KEC, Inc.    Tennessee    51%
The Endoscopy Center of Topeka, L.P.    AmSurg EC Topeka, Inc.    Tennessee    51%
The Endoscopy Center of St. Thomas, L.P.    AmSurg EC St. Thomas, Inc.    Tennessee    60%
The Endoscopy Center of Southeast Texas, L.P.    AmSurg EC Beaumont, Inc.    Tennessee    51%
AmSurg South Bay Anesthesia, L.P.    AmSurg Torrance, Inc.    Tennessee    51%
Long Beach Surgery Center, L.P.    Long Beach NSC, LLC    California    51.77%
Davis Surgery Center, L.P.    Davis NSC, LLC    California    69.47%
Fullerton Surgical Center, L.P.    Fullerton NSC, LLC    California    62.37%
San Antonio ASC, LP    San Antonio NSC, LLC    Texas    52.76%
South Austin Holdings, L.L.P.    Austin NSC, LLC    Tennessee    56.97517%
West Palm Outpatient Surgery & Laser Center, Ltd.    NSC West Palm, LLC    Florida    52.74%
Weston Outpatient Surgical Center, Ltd.    Weston NSC, LLC    Florida    55.791%
Fresno CA Endoscopy ASC, L.P.    AmSurg Fresno Endoscopy, Inc.    Tennessee    51%
AmSurg Fresno CA Anesthesia, LP    AmSurg Fresno Endoscopy, Inc.    Tennessee    51%
AmSurg Arcadia Anesthesia, LP    AmSurg Arcadia CA, Inc.    Tennessee    51%
AmSurg Oakland Anesthesia, LP    AmSurg Oakland CA, Inc.    Tennessee    51%
Amsurg Marin Anesthesia, L.P.    AmSurg Holdings, Inc.    Tennessee    51%
AmSurg Stamford Anesthesia, LLC    AmSurg Holdings, Inc.    TN    62%
The Endoscopy Center of Santa Fe, L.P.    AmSurg EC Santa Fe, Inc.    Tennessee    51%
The Endoscopy Center of Washington D.C., L.P.    AmSurg EC Washington, Inc.    Tennessee    51%
Endoscopy Center of the South Bay, L.P.    AmSurg Torrance, Inc.    Tennessee    51%
The Abilene ASC, L.P.    AmSurg Abilene, Inc.    Tennessee    60%
The Maryville ASC, L.P.    AmSurg Maryville, Inc.    Tennessee    53%
The Melbourne ASC, L.P.    AmSurg Melbourne, Inc.    Tennessee    51%
The Hillmont ASC, L.P.    AmSurg Hillmont, Inc.    Tennessee    51%
The Northwest Florida ASC, L.P.    AmSurg Northwest Florida, Inc.    Tennessee    51%
The Palmetto ASC, L.P.    AmSurg Palmetto, Inc.    Tennessee    51%
The Ocala Endoscopy ASC, L.P.    AmSurg Ocala, Inc.    Tennessee    51%
The Crystal River Endoscopy ASC, L.P.    AmSurg Crystal River, Inc.    Tennessee    51%
The Abilene Eye ASC, L.P.    AmSurg Abilene Eye, Inc.    Tennessee    51%

 

50


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

The El Paso ASC, L.P.    AmSurg El Paso, Inc.    Tennessee    51%
The La Jolla Endoscopy Center, L.P.    AmSurg La Jolla, Inc.    Tennessee    51%
The Burbank Ophthalmology ASC, L.P.    AmSurg Burbank, Inc.    Tennessee    51%
Los Angeles/Inglewood Endoscopy ASC, L.P.    AmSurg Inglewood, Inc.    Tennessee    51%
The Suncoast Endoscopy ASC, L.P.    AmSurg Suncoast, Inc.    Tennessee    51%
The San Antonio TX Endoscopy ASC, L.P.    AmSurg San Antonio TX, Inc.    Tennessee    51%
The Temecula CA Endoscopy ASC, L.P.    AmSurg Temecula CA, Inc.    Tennessee    51%
The Escondido CA Endoscopy ASC, LP    AmSurg Escondido CA, Inc.    Tennessee    51%
The San Luis Obispo CA Endoscopy ASC, L.P.    AmSurg San Luis Obispo CA, Inc.    Tennessee    51%
The Scranton PA Endoscopy ASC, L.P.    AmSurg Scranton PA, Inc.    Tennessee    51%
The Arcadia CA Endoscopy ASC, L.P.    AmSurg Arcadia CA, Inc.    Tennessee    51%
The Main Line PA Endoscopy ASC, L.P.    AmSurg Main Line PA, LLC    Tennessee    51%
The Oakland CA Endoscopy ASC, L.P.    AmSurg Oakland CA, Inc.    Tennessee    51%
The Pottsville PA Endoscopy ASC, L.P.    AmSurg Pottsville PA, LLC    Tennessee    51%
Glendora CA Endoscopy ASC, L.P.    AmSurg Glendora CA, Inc.    Tennessee    51%
The Lancaster PA Endoscopy ASC, L.P.    AmSurg Lancaster PA, LLC    Tennessee    51%
Manatee Surgical Center, LLC    FO Investments II, Inc.    Florida    50.1%
South Palm Ambulatory Surgery Center, LLC    FO Investments, Inc.    Florida    51%
Meadows Surgery Center, LLC    FO Investments III, Inc.    New Jersey    50.1%
Anesthesia Associates of Joplin, LLC    32nd Street Surgery Center, LLC    Tennessee    57.43%
AmSurg Westminster Anesthesia, LLC    Carroll County Digestive Disease Center, LLC    Tennessee    51%
Anesthesia Associates of Bryan, LLC    Central Texas Endoscopy Center, LLC    Tennessee    51%
Easton Anesthesia Associates, LLC    Eastern Shore Endoscopy, LLC    Tennessee    55%
Redding Anesthesia Associates LP    Gastroenterology Associates Endsocopy Center, LLC    Tennessee    51%
AmSurg Hermitage Anesthesia, LLC    Hermitage TN Endoscopy ASC, LLC    Tennessee    51%
Maryland Endoscopy Anesthesia, LLC    Maryland Endsocopy Center, LLC    Tennessee    51%
AmSurg MDSine Anesthesia, LLC    MDSINE, LLC    Tennessee    54.17%

 

51


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

  

Ownership

Interest

AmSurg North Valley Anesthesia, LLC    North Valley Endsocopy Center, LLC    Tennessee    51%
AmSurg Oak Lawn IL Anesthesia, LLC    Oak Lawn IL Endoscopy ASC, LLC    Tennessee    51%
AmSurg Citrus Anesthesia, LLC    Orland FL Endsocopy ASC, LLC    Tennessee    51%
AmSurg St. George Anesthesia, LLC    St. George Endoscopy Center, LLC    Tennessee    51%
AmSurg Port Orange Anesthesia, LLC    Surgery Center of Volusia, LLC    Tennessee    51%
Forty Fort Anesthesia Associates, LLC    Surgical Specialty Center of Northeastern Pennsylvania, Inc.    Tennessee    51%
AmSurg Abilene Anesthesia, LLC    The Abilene ASC, L.P.    Tennessee    60%
AmSurg Altamonte Springs Anesthesia, LLC    The Altamonte Springs FL Endsocopy ASC, LLC    Tennessee    51%
AmSurg Chattanooga Anesthesia, LLC    The Chatanooga Endoscopy ASC, LLC    Tennessee    35%
AmSurg Cincinnati Anesthesia, LLC    The Cincinnati ASC, LLC    Tennessee    51%
Anesthesia Associates of Columbia TN, LLC    The Columbia TN Endsocopy ASC, LLC    Tennessee    51%
AmSurg Greensboro Anesthesia, LLC    The Greensboro NC Endsocopy ASC, LLC    Tennessee    51%
AmSurg Greenville Anesthesia, LLC    The Greenville ASC, LLC    Tennessee    51%
Knoxville Eye Anesthesia, LLC    The Knoxville Ophthalmology ASC, LLC    Tennessee    51%
AmSurg Lewes Anesthesia, LLC    The Lewes DE Endoscopy ASC, LLC    Tennessee    51%
AmSurg Melbourne Anesthesia, LLC    The Melbourne ASC, L.P.    Tennessee    51%
AmSurg Indianapolis Anesthesia, LLC    The Northside Gastroenterology Endoscopy Center, LLC    Tennessee    51%
Anesthesia Associates of Ocala, LLC    The Ocala Endoscopy ASC, L.P.    Tennessee    51%
AmSurg San Luis Obispo Anesthesia, LLC    The San Luis Obispo CA Endoscopy ASC, L.P.    Tennessee    51%
AmSurg Toledo Anesthesia, LLC    The Toledo Endoscopy ASC, LLC    Tennessee    51%
AmSurg Willoughby Anesthesia, LLC    Willoughby ASC, LLC    Tennessee    51%
MSC Anesthesia, Inc.    Manatee Surgical Center, LLC    Florida    50.10%
Marblehead Surety & Reinsurance Company, Ltd.    Sheridan Healthcare, Inc.    Cayman Islands    100%

 

52


SCHEDULE 5.17

Environmental Matters

None.

 

53


SCHEDULE 5.20

Insurance

 

Coverage

 

Insured

  Policy Number    

Term

 

Insurer

 

Deductibles

/ SIR

 

Limits

Casualty

           
General Liability   Envision     HAZ40320740893      03/31/16 – 03/31/17   Continental Casualty  

$2,750,000 deductible xs

$250,000 SIR

 

$2,750,000 per occurrence / $5,000,000 general aggregate

$100,000 damage to rented premises

$10,000 medical expense

Automobile Liability

All States

  Envision     ISA H09041114      03/31/16 – 03/31/17   ACE American Ins. Co   $2,000,000  

$10,000,000 CSL

$10,000 medical payments

Automobile Liability Oklahoma   Envision     ISA H09041874      03/31/16 – 03/31/17   ACE American Ins. Co   $2,000,000  

$10,000,000 CSL

$10,000 medical payments UM/UIM

Automobile Liability Texas   Envision     ISA H09041886      03/31/16 – 03/31/17   ACE American Ins. Co   $2,000,000  

$10,000,000 CSL

$10,000 medical payments

UM/UIM $1,000,000

Excess Automobile Liability   Envision     AEC019233700      03/31/16 – 03/31/17   American Guarantee & Liability Insurance Co. (Zurich)   N/A   $20,000,000 xs $10M

Workers Compensation

All Other States

  Envision     WLRC48602356      03/31/16 – 03/31/17   Indemnity Insurance Co. of N.A. (ACE)   $1,000,000   Statutory / $1,000,000

Workers Compensation

Wisconsin

  Envision     SCFC48602368      03/31/16 – 03/31/17   ACE Fire Underwriters   $1,000,000   Statutory / $1,000,000

Workers Compensation

AR, AZ, CA, MA

  Envision     WLRC48602344      03/31/16 – 03/31/17   ACE American Ins. Co   $1,000,000   Statutory / $1,000,000

Workers Compensation

Excess OH & WA

  Envision     WCU C4860237A      03/31/16 – 03/31/17   ACE American Ins. Co   $1,000,000 SIR   Statutory / $1,000,000

Healthcare Professional Liability

(AMR) / Excess Umbrella Liability

  Envision     6796605      03/31/16 – 03/31/17   Lexington Ins. Co.   N/A   $10,000,000 Healthcare PL / $14,000,000 Umbrella

Healthcare Professional Liability

(AMR) / Excess Umbrella Liability

  Envision     W1B173160101      03/31/16 – 03/31/17   Syndicates 2623/623 at Lloyd’s   N/A  

$10,000,000 Healthcare PL / $11,000,000 Umbrella

xs $10M/$14M

Excess Liability 1 st Excess   Envision     EXC4223941      03/31/16 – 03/31/17   Great American Insurance Company of NY   N/A   $25,000,000 xs u/l
Excess Liability 2 nd Excess   Envision     93642351      03/31/16 – 03/31/17   Federal Insurance Company   N/A   $25,000,000 xs $25M
Excess Liability 3 rd Excess   Envision     100003600306      03/31/16 – 03/31/17   Liberty Insurance Underwriters   N/A   $25,000,000 xs $50M

 

54


SCHEDULE 5.20

 

Coverage

 

Insured

  Policy Number    

Term

 

Insurer

 

Deductibles

/ SIR

 

Limits

FINPRO            
Fiduciary Liability   Envision     8223-8478      12/01/15 – 12/01/16   Federal Insurance Company   $75,000   $5,000,000
Excess Fiduciary 10M xs 5M   Envision     14-MGU-15-A36440      12/01/15 – 12/01/16   US. Specialty Insurance Company   N/A   $10,000,000 xs $5M
Excess Fiduciary 5M xs 15M   Envision     106209925      12/01/15 – 12/01/16   Travelers Casualty & Surety Co. of America   N/A   $5,000,000 xs $15M
Fiduciary Liability   Texas EM-1     8241-8192      12/01/15 – 12/01/16   Federal Insurance Company   $75,000   $5,000,000
Excess Fiduciary 10M xs 5M   Texas EM-1     14-MGU-15-A36438      12/01/15 – 12/01/16   US. Specialty Insurance Company   N/A   $10,000,000 xs $5M
Excess Fiduciary 5M xs 15M   Texas EM-1     106209918      12/01/15 – 12/01/16   Travelers Casualty & Surety Co. of America   N/A   $5,000,000 xs $15M
Crime Insurance   Envision     025856185      12/01/15 – 12/01/16   National Union Fire Insurance Co of Pittsburgh, PA (Chartis)   $100,000   $10,000,000
Excess Crime Insurance 10M xs 10M   Envision     IPR0379236500      03/31/16 - 03/31/17   Steadfast Insurance Company   $100,000   $10,000,000
Special Risk   Envision     34-215-756      12/01/14 – 12/01/17   National Union Fire Insurance Co of Pittsburgh, PA (Chartis)   $0   $5,000,000
Errors & Omissions – Medical Billing   Envision     6802-7537      12/01/15 – 12/01/16   Executive Risk Indemnity Inc. (Chubb)   $100,000   $10,000,000
Cyber Liability   Envision     W180C1160201      03/20/16 – 03/20/17   Lloyds of London – Beazley   $250,000   $10,000,000
Excess Cyber Liability   Envision     E05SAA4MH2002      03/20/16 – 03/20/17   Liberty Surplus Insurance Company   N/A   $10,000,000 xs $10M

 

55


SCHEDULE 5.20

 

Coverage

 

Insured

  Policy Number  

Term

 

Insurer

 

Deductibles

/ SIR

 

Limits

Excess Cyber Liability   Envision   USUCS269875216   03/20/16 – 03/20/17   Lloyds of London - Hiscox   N/A   $10,000,000 xs $20M
International            
Foreign Policy – Commercial Package   Envision   PHFD37999313003   03/31/16 – 03/31/17   ACE American Ins. Co   N/A   $1,000,000/$2,000,000 agg
Public and Products Liability   GMRTT   B0509PA011910   09/30/15 – 09/30/16   QBE Syndicates   N/A  

$5,000,000 Public Liability

$5,000,000 Pollution Liability

$5,000,000 Products Liability

Aviation & Pollution            
Non-Owned Aviation   Envision   AV04505440603   06/03/16 - 06/03/17   AIG Specialty   N/A   $10,000,000
Excess Aviation   Envision   AX01166476904   06/03/16 - 06/03/17   AIG Aviation Insurance   N/A   $50,000,000 xs $10,000,000
Pollution Legal Liability & Remediation Legal Liability   Envision   PEC001843810   05/01/16- 05/01/17   Greenwich Insurance Co (XL)   $50,000   $4,500,000 (Aggregate) / $1,250,000 (each)
EmCare            
EmCare Medical Professional Liability AOS   EmCare   HAZ104002538114   03/31/16 – 03/31/17   Continental Casualty   N/A  

$1,000,000 shared by physicians and allied health professionals - each medical incident

$3,000,000 per physician or allied health professional - annual agg

$1,000,000 shared by corporate entities - each medical incident

$5,000,000 shared by all corporate entities - annual aggregate

EmCare Medical Professional Liability Florida   EmCare   HAZ106438754112   03/31/16 - 03/31/17   Continental Casualty   $250,000  

$250,000 Each Medical Incident per Physician

$750,000 Annual Agg - per Physician

EmCare Medical Professional Liability Indiana   EmCare   HAZ104002542815   03/31/16 - 03/31/17   Continental Casualty   $250,000  

$250,000 Each Medical Incident per Physician

$750,000 Annual Agg - per Physician

EmCare Medical Professional Liability Kansas   EmCare   HAZ106437784911   03/31/16 - 03/31/17   Continental Casualty   $200,000  

$200,000 each claim

$600,000 Aggregate

EmCare Professional Liability Louisiana   EmCare   HAZ104002540015   03/31/16 - 03/31/17   Continental Casualty   $100,000  

$100,000 each Medical Incident per Physician

$300,000 Aggregate per Physician

EmCare Professional Liability New York   EmCare   HAZ106440138715   03/31/16 - 03/31/17   Continental Casualty   $1,300,000  

$1,300,000 each Medical Incident per Physician

$3,900,000 Aggregate per Physician

EmCare Professional Liability Pennsylvania   EmCare   HAZ104002539515   03/31/16 - 03/31/17   Continental Casualty   $500,000  

$500,000 Per Physician

$1,500,000 Aggregate Per Physician

 

56


SCHEDULE 5.20

 

Coverage

 

Insured

  Policy Number  

Term

 

Insurer

 

Deductibles

/ SIR

 

Limits

EmCare Professional Liability Wisconsin   EmCare   HAZ104002541415   03/31/16 - 03/31/17   Continental Casualty   $1,000,000  

$1,000,000 each Medical Incident per Physician

$3,000,000 Aggregate per Physician

EmCare Work Comp            
EmCare Workers Compensation/Employers Liability   EmCare   90-16943 (plus
various suffixes)
  09/01/16 - 09/01/17   Sentry Insurance   $500,000   Statutory / $1,000,000
Ascension Health At Home        
Professional / General Liability   Ascension   MFL0045000216   02/01/16 – 02/01/17   OneBeacon (Homeland Insurance Company of NY)   $1,000 Employee Benefit Deductible per claim  

Healthcare Professional: Claims Made Retro 2/1/2012

$1,000,000 Each Claim

$3 ,000,000 Aggregate

Sexual Misconduct Sublimit; (Included in PL)

$1,000,000 Per claim /agg

General Liability: Occurrence

$1 ,000,000 Each Claim

$3 ,000,000 Aggregate for all claims

$100,000 Damage to Premises Rented

Excess Liability   Ascension   MFX0021100216   02/01/16 – 02/01/17   OneBeacon (Homeland Insurance Company of NY)   N/A   $10,000,000
Workers Compensation – AL   Ascension   PLAL129001   02/01/16 – 02/01/17   AL State Fund   N/A   Statutory/$1,000,000
Workers Compensation – WI, IL, OH, MI, IN, TX, OK, KS   Ascension   WC 5573428   02/01/16 – 02/01/17   AIG (Commerce and Industry Insurance Company)   N/A   Statutory/$1,000,000
Auto Liability   Ascension   ISAH09041746   03/31/16 – 03/31/17   ACE American Insurance Company   $150,000  

$1,000,000 CSL

$5,000 Medical Payment

Directors & Officers and Employment Practices Liability   Ascension   8242-1893   03/01/16 - 02/01/17   Chubb (Federal Insurance Company)   $50,000   $5,000,000
Crime Insurance   Ascension   8242-1893   03/01/16 - 02/01/17   Chubb (Federal Insurance Company)   $25,000   $5,000,000
Special Risk   Ascension   8242-1893   03/01/16 - 02/01/17   Chubb (Federal Insurance Company)   $0   $1,000,000

Cyber Liability

  Ascension   0309-4184   03/01/16 – 02/01/17   AWAC   $25,000   $5,000,000

 

57


SCHEDULE 5.20

 

Coverage

 

Insured

  Policy Number    

Term

 

Insurer

 

Deductibles

/ SIR

 

Limits

UHS            
General Liability/PL   UHS     MFL0049240416      4/24/16 - 4/24/17   Homeland Insurance Company of New York   $0   $1,000,000 Each Claim/ $3,000,000 Aggregate
Cyber Liability   UHS     03101056      4/24/16 - 4/24/17   Allied World Assurance Company (U.S.) Inc.   $10,000   $1,000,000 Aggregate
D&O   UHS     03101062      4/24/16 - 4/24/17   Allied World Assurance Company (U.S.) Inc.   $10,000   $1,000,000 Aggregate
EMX            
Directors & Officers Runoff   EMX     8243-7044      09/15/15 – 09/15/21   Chubb (Federal Insurance Company)  

$50,000

$100,000 (Anti-Trust)

  $5,000,000
Directors & Officers Excess Runoff   EMX     SISIXFL21234315      09/15/15 – 09/15/21   Starr Indemnity   N/A   $5,000,000
           
Directors & Officers Go-Forward   EMX     8243-7043      09/15/15 – 09/15/17   Chubb (Federal Insurance Company)  

$50,000

$100,000 (Anti-Trust)

  $1,000,000
Rural/Metro            
Contractors Pollution Liability   Rural/Metro     37313484      12/31/14 - 12/31/16   Chubb (Chubb Custom Insurance Company)   $100,000 Each Pollution Incident  

$10,000,000 Each Pollution Incident

$10,000,000 Agg Limit

Auto – NY   Rural/Metro     ISAH08867410      1/1/16 - 1/1/17   ACE American Insurance Company   N/A   $50,000
Property            
Primary Property $50mm   EVHC     25032476      10/28/16-10/28/17   Lexington Insurance Company   25000   $50,000,000
D&O            
Directors & Officers Runnoff - 01 - Rural Metro   EVHC     01-144-29-89      10/28/15 - 10/28/21   National Untion Fire Insurance CO    
Directors & Officers Runnoff - 02 - Rural Metro   EVHC     8237-8577      10/28/15 - 10/28/21   Chubb Custom Ins    

 

58


SCHEDULE 5.20

 

Coverage

 

Insured

  Policy Number  

Term

 

Insurer

 

Deductibles

/ SIR

 

Limits

Directors & Officers Runnoff - 03 - Rural Metro   EVHC   ELU18381-15   10/28/15 - 10/28/21   XL Specialty Insurance Company    
Directors & Officers Runnoff - 04 - Rural Metro   EVHC   G23678950 002   10/28/15 - 10/28/21   ACE American Insurance Company    
Directors & Officers Primary   EVHC   ELU141341-15   10/14/15 - 12/31/16   XL Specialty Insurance Company   2500000  
Directors & Officers - 1st Shared Excess   EVHC   01-932-84-93   10/14/15 – 12/31/16   National Union Fire Insurance Company    
Directors & Officers - 2nd Shared Excess   EVHC   G27164183 003   10/14/15 - 12/31/16   ACE American Insurance Company    
Directors & Officers - 3rd Shared Excess   EVHC   DOX10007978800   10/14/15 - 12/31/16   Endurance American Insurance Company    
Directors & Officers - 4th Shared Excess   EVHC   106392688   10/14/15 – 12/31/16   Travelers Casualty & Surety Comp    
Directors & Officers - 5th Shared Excess   EVHC   MAXA6EL0002271   10/14/15 - 12/31/16   Markel Insurance Company    
Directors & Officers - 6th Shared Excess   EVHC   01-932-94-17   10/14/15 - 12/31/16   National Union Fire Insurance Company    
Directors & Officers - 7th Shared Excess   EVHC   01-932-94-20   10/14/15 - 12/31/16   National Union Fire Insurance Company    
Directors & Officers - 8th Shared Excess   EVHC   MLA65N115A0Q   10/14/15 - 12/31/16   Aspen Bermuda Limited     $10,000,000 xs $90,000,000
Directors & Officers - 9th Shared Excess   EVHC   ELU141343-15   10/14/15 - 12/31/16   XL Specialty Insurance Company    
Directors & Officers - 10th Shared Excess   EVHC   18015754   10/14/15 - 12/31/16   Berkley Professional Liability LLC    

 

59


SCHEDULE 5.20

 

Coverage

 

Insured

  Policy Number  

Term

 

Insurer

 

Deductibles

/ SIR

 

Limits

State Workers’ Compensation Policies

Alabama WC   Care First Hospice LLC   100-1000128   01/01/16 - 01/01/17   Alabama Self-Insured Workers’ Compensation Fund     Statutory
Alabama WC   St. Vincent’s Home Health, LLC   100-1000127   01/01/16 - 01/01/17   Alabama Self-Insured Workers’ Compensation Fund     Statutory
Nevada WC   UHS JV   NRN4903-2016-04     Nevada Retail Network     Statutory
North Dakota   Rural Metro   1271960        
Ohio BWC   Guardain Healthcare Holdings Inc   20005742   01/01/16 - 01/01/17   Ohio Bureau of Workers’ Compensaion     Statutory
Ohio BWC   Ohio EM-I Medical Services, PC   1447675   01/01/16 - 01/01/17   Ohio Bureau of Workers’ Compensaion     Statutory
Ohio BWC   Phoenix Physicians   1593854   01/01/16 - 01/01/17   Ohio Bureau of Workers’ Compensaion     Statutory
Ohio BWC   Physicians & Surgeons Ambulance Service, Inc.   20005293   01/01/16 - 01/01/17   Ohio Bureau of Workers’ Compensaion     Statutory
Ohio BWC   Rural/Metro of Ohio, Inc.   20005020   01/01/16 - 01/01/17   Ohio Bureau of Workers’ Compensaion     Statutory
Washington WC   Envision Healthcare Corporation   602587788 /
890,424-02
  01/01/16 - 01/01/17   Washington State Department of Labor & Industries     Statutory
Washington WC   Inpatient Services of Washington, PC   602479324 /
036,076-01
  01/01/16 - 01/01/17   Washington State Department of Labor & Industries     Statutory
Washington WC   Washington EM-I Medical Services, PC   601913783 /
036,076-00
  01/01/16 - 01/01/17   Washington State Department of Labor & Industries     Statutory

See also Annex A and Annex B attached hereto.

 

60


SCHEDULE 5.20

Annex A

 

Policy
Effective

Date

 

Policy

Expiration

Date

 

Carrier Name

  Policy Number  

Coverage Type

  Limits of Insurance   Deductible/
Retention

10/1/2015

  12/31/2016   Federal Insurance Company   82227077   Directors & Officers Liab ($10M)   $10,000,000   $250,000
Non-
Securities
Claims
$1,500,000
Securities
Claims
$2,500,000
Merger
Objection
Securities
Claims

10/1/2015

  12/31/2016   Axis Insurance Co.   MNN710029012015   Excess Director & Officer ($10M × $10M)   $10,000,000   Nil

10/1/2015

  12/31/2016   ACE American Insurance Company   DOX G26810425
002
  Excess Director & Officer ($10M × $20M)   $10,000,000   Nil

10/1/2015

  12/31/2016   RLI Insurance Company   EPG0013963   Excess Director & Officer ($10M × $30M)   $10,000,000   Nil

10/1/2015

  12/31/2016   National Union Fire Company of Pittsburgh, Pa.   01-823-80-79   Excess Director & Officer ($10M × $40M)   $10,000,000   Nil

10/1/2015

  12/31/2016   Argonaut Insurance Company   MLX 7601000-01   Excess Director & Officer 8th ($10 × $50M)   $10,000,000   Nil

10/1/2015

  12/31/2016   Ironshore Indemnity Inc.   2099101   Excess Director & Officer 9th ($10 × $60M)   $10,000,000   Nil

10/1/2015

  12/31/2016   RLI Insurance Company   EPG0013964   Excess Director & Officer 10th ($10M × $70) xs Side A   $10,000,000   Nil

10/1/2015

  12/31/2016   XL Specialty Insurance Company   ELU140961-15   Excess Director & Officer 11th ($5M × $80M) xs Side A   $5,000,000   Nil

10/1/2015

  12/31/2016   Endurance Risk Solutions Assurance Co.   ADX10005272501   Excess Director & Officer 12th ($10 × $85M) xs Side A   $10,000,000   Nil

10/1/2015

  12/31/2016   National Union Fire Ins. Co. of PA   01-823-80-82   Excess Director & Officer 13th (5M xs $95M) xs Side A   $5,000,000   Nil

 

61


SCHEDULE 5.20

Annex A

 

Policy
Effective

Date

 

Policy

Expiration

Date

 

Carrier Name

  Policy Number  

Coverage Type

  Limits of Insurance   Deductible/
Retention

10/1/2015

  12/31/2016   Underwriters at Lloyds (Beazley Syndicate)   B0146ERUSA1500306   Employment Practices Liability   $10,000,000   $100,000
(AmSurg)
$250,000
(Sheridan)

10/1/2015

  12/31/2016   Federal Insurance Company   82227075   Fiduciary Liability ($10M)   $10,000,000   $25,000

10/1/2015

  12/31/2016   RLI Insurance Company   EPG0013961   Excess Fiduciary Liability ($10M xs $10M)   $10,000,000   Nil

10/1/2015

  12/31/2016   AXIS Insurance Company   MNN769441012015   Crime ($5M)   $5,000,000   $100,000

10/1/2015

  12/31/2016   RLI Insurance Company   BND0101311   Excess Crime ($5M xs $5M)   $5,000,000   Nil

10/1/2015

  12/31/2016   Federal Insurance Company   8241-2473   Employed Lawers Professional Liability   $1,000,000   $25,000

1/1/2015 until cancelled

  Travelers Casualty & Surety Co. of Amer   106169161   ERISA Bond - Center #2063-001   $25,000   Nil

4/1/2008 until cancelled

  Travelers Casualty & Surety Co. of Amer   105101282   ERISA Bond - Center #2155-001   $100,000   Nil

4/1/2008 until cancelled

  Travelers Casualty & Surety Co. of Amer   105101288   ERISA Bond - Center #2150-001   $50,000   Nil

7/1/2008 until cancelled

  Travelers Casualty & Surety Co. of Amer   105150268   ERISA Bond - Center #2177-001   $40,000   Nil

12/31/2009 until cancelled

  Travelers Casualty & Surety Co. of Amer   105389246   ERISA Bond - Center #2211-001   $200,000   Nil

10/18/2015 until cancelled

  Travelers Casualty & Surety Co. of Amer   106335504   ERISA Bond - Center #2206-001   $150,000   Nil

8/14/2016

  8/13/2019   Great American Insurance Company   E062917   ERISA Bond   $84,000   Nil

7/29/2016

  7/28/2019   Great American Insurance Company   1534103   ERISA Bond - Center #2034-001   $150,000   Nil

7/29/2016

  7/28/2019   Great American Insurance Company   1534113   ERISA Bond - Center #2106-001   $100,000   Nil

11/1/2016

  11/1/2017   Columbia Casualty Company   NSN4015780009   Medical Professional Liability (Anesthesologist/CRNA)   $1M/$3M   Nil

 

62


SCHEDULE 5.20

Annex A

 

Policy
Effective

Date

 

Policy

Expiration

Date

 

Carrier Name

  Policy Number  

Coverage Type

  Limits of Insurance   Deductible/
Retention

10/1/2016

  10/1/2017   Zurich American Insurance Company   HPC387160215   Professional/General Liability (Kansas)   $200K/
$600K; $1M/
$3M - PL

$1M/$3M -
GL

  $ 25,000

10/1/2016

  10/1/2017   Zurich-American Insurance Company of Illinois   HPC587239614   Professional/General Liability (Delaware)   $1M/$3M -
PL

$1M/$3M -
GL

  $25,000

10/1/2016

  10/1/2017   Steadfast Insurance Company   HPC378263816   Professional/General Liability (All Other States)   $100K/
$300K; $1M/
$3M - PL

$1M/$3M -
GL

  $25,000

10/1/2016

  10/1/2017   Steadfast Insurance Company   HPC913954010   Umbrella   $10,000,000   $100,000

10/1/2016

  10/1/2017   National Fire & Marine Insurance Company   42-XHC-170048-03   Excess Liability ($10M × $10M)   $10,000,000   Nil

10/1/2016

  10/1/2017   Illinois Union Insurance Company   XFL G27114118
004
  Excess Liability ($5M × $5M)   $5,000,000   Nil

10/1/2016

  10/1/2017   American Zurich Insurance Company   BAP4353384-04   Commercial Automobile   $1,000,000   $1,000

10/1/2016

  10/1/2017   Zurich American Insurance Company   WC435338304   Workers Compensation   $1,000,000   Nil

10/1/2016

  10/1/2017   Zurich American Insurance Company   WC435338504   Workers Compensation - Wilton   $1,000,000   Nil
        Workers Compensation - Colton    

6/30/2016

  6/30/2017   XL Insurance America, Inc.   US00067448PR16A   Commercial Property   $200,000,000   $100K Per
occurrence
$300K
Aggregate

6/30/2016

  6/30/2017  

QBE Specialty Insurance Company (75%)

General Security Indemnity Co. of Arizona (25%)

  ESE1358100

TR00014860050515

  Earthquake   $30,000,000   5%,
subject to
$100,000
minimum
per
occurrence

4/30/2016

  4/30/2017   Wright National Flood Insurance Company   17115032419206   Flood - Center #2084-001   $0 Building

$500,000
Contents

  $0
Building
$1,000
Contents

9/6/2016

  9/6/2017   Wright National Flood Insurance Company   9115006801407   Flood - Center #2028-001   $0 Building

$500,000
Contents

  $0
Building
$1,000
Contents

 

63


SCHEDULE 5.20

Annex A

 

Policy
Effective

Date

 

Policy

Expiration

Date

 

Carrier Name

  Policy Number  

Coverage Type

  Limits of Insurance   Deductible/
Retention

3/16/2016

  3/16/2017   Wright National Flood Insurance Company   9115025756106   Flood - Center #2250-001   $0 Building

$500,000
Contents

  $0
Building

$1,000
Contents

6/13/2016

  6/13/2017   Wright National Flood Insurance Company   9115043864906   Flood - Center #2056-001   $0 Building

$500,000
Contents

  $0
Building

$1,000
Contents

6/13/2016

  6/13/2017   Wright National Flood Insurance Company   9115043865006   Flood - Center #2031-001   $0 Building

$500,000
Contents

  $0
Building

$1,000
Contents

6/17/2016

  6/17/2017   Wright National Flood Insurance Company   17115044798706   Flood - Center #2179-001   $0 Building

$500,000
Contents

  $0
Building

$1,000
Contents

3/21/2016

  3/21/2017   American Bankers Ins. Co. of FL   60029455972015   Flood - Center #2249-001   $500,000
Building

$500,000
Contents

  $1,250
Building

$1,250
Contents

8/16/2016

  8/16/2017   Standard Fire Insurance Company   60101835052015   Flood - Center #2265-001   $500,000
Building

$500,000
Contents

  $1,250
Building

$1,250
Contents

1/18/2016

  1/18/2017   Wright National Flood Insurance Company   17115088641103   Flood - Center #2178-001   $0 Building

$500,000
Contents

  $0
Building

$50,000
Contents

3/30/2016

  3/30/2017   Wright National Flood Insurance Company   9115088625802   Flood - Center #2198-001   $0 Building

$500,000
Contents

  $0
Building

$1,000
Contents

1/8/2016

  1/8/2017   Wright National Flood Insurance Company   39115105862002   Flood - Center #2276-001   $0 Building

$500,000
Contents

  $0
Building

$1,000
Contents

11/6/2008

  11/6/1959   ReliaStar Life Insurance Company   AD20066900   Key Man Life Insurance - Dr. William Mayoral   $2,000,000   Nil

11/3/2008

  11/3/1945   ReliaStar Life Insurance Company   AD20064402   Key Man Life Insurance - Dr. William B. Ruderman   $2,000,000   Nil

8/13/2013

  8/13/1964   ReliaStar Life Insurance Company   AD20586653   Key Man Life Insurance - Dr. Matthew Boyer   $2,000,000   Nil

10/1/2015

  12/31/2016   Beazley Insurance Company   PH1500223   Breach Response Liability   $10,000,000   $25,000

12/9/2016

  12/9/2017   Columbia Casualty Company   NSD6014620695   Professional Liability   $1M / $3M   Nil

 

64


SCHEDULE 5.20

Annex B

 

Policy

Effective

Date

  Policy
Expiration
Date
 

Named

Insured

  Policy Number   Coverage
Type
  Carrier   Premium*    

Limits of

Insurance

  Deductible/
Retention
 

2/14/2014

  2/14/2015   Manatee Surgery Center, LLC   1259099   Directors &
Officers
  Carolina
Casualty
Insurance
Company
  $ 8,575      $1M D&O/EPL     $15,000   

9/1/2013

  9/1/2014   Manatee Surgery Center, LLC   CA00143165   Commercial
Auto
  FCCI
Insurance
Company
  $ 285      $1M     NIL   

9/1/2013

  9/1/2014   Manatee Surgery Center, LLC   GL 00091415   General
Liability
  Federal
Insurance
Company
  $ 3,829      $1M/$2M     $10,000   

12/9/2013

  12/9/2014   Manatee Surgery Center, LLC   IJG418010   Professional
Liability
  General
Star
Indemnity
  $ 175,767      $1M/$3M     NIL   

9/1/2013

  9/1/2014   Manatee Surgery Center, LLC   UMB00094455   Umbrella   FCCI
Insurance
Company
  $ 3,865      $3M     $10,000   

1/1/2014

  1/1/2015   Manatee Surgery Center, LLC   001-WC14A-67700   Workers
Compensation
  FCCI
Insurance
Company
  $ 42,638      $500K/$500K/$500K     NIL   

9/1/2013

  9/1/2014   Manatee Surgery Center, LLC   CP00058905   Property   FCCI
Insurance
Company
  $ 32,963     

$3,043,589 Building

$1,862,715 BPP

$1,800,000 Business Income

    $5,000   

12/11/2013

  12/11/2014   Manatee Surgery Center, LLC   0305-1104   Professional
Liab/General
Liab
  Darwin
Insurance
Company
  $ 16,011      $1M/$3M     NIL   

4/7/2014

  4/7/2015   Meadows Surgery Center, LLC   13 SBA R02274   Property/GL/
Auto /UMB
  Sentinel
Insurance
Company
  $ 12,823     

$1M/$2M;

BPP $3,526,900; M&S $10k/$5k; BI on ALS basis;

EPL $10k; HNOA $1M; EBL $1M;

$3M UMB (which includes WC 13WBCZP1999)

    NIL   

 

65


SCHEDULE 5.20

Annex B

 

Policy

Effective

Date

  Policy
Expiration
Date
 

Named

Insured

  Policy Number   Coverage
Type
  Carrier   Premium*    

Limits of

Insurance

  Deductible/
Retention

1/31/2011

  Until
Cancelled
  Meadows Surgery Center, LLC   13BDDFY1148   Crime Bond   Sentinel
Insurance
Company
  $ 388      500000   NIL

4/7/2014

  4/7/2015   Meadows Surgery Center, LLC   13WBCZP1999   Workers
Comp
  Sentinel
Insurance
Company
  $ 9,752      $1M/$1M/$1M   NIL

10/30/2013

  10/30/2014   Meadows Surgery Center, LLC   EKO3114814   Directors &
Officers
  National
Casualty
Company
  $ 10,882      $2M D&O, $2M EPLI, $1M FID   $15,000
EPL

8/15/2013

  8/15/2014   South Palm Ambulatory Surgery Center   87048406532013   Flood   Hartford
Fire
Insurance
Company
  $ 3,428      $500K limit   NIL

7/2/2013

  7/2/2014   South Palm Ambulatory Surgery Center   G24299326002   Directors &
Officers
  Westchester
Fire
Insurance
Company
  $ 3,663      $1m/$2m   NIL

8/24/13

  8/24/2014   South Palm Ambulatory Surgery Center   LHC740819   Professional
Liab/
General Liab
  Landmark
American
Ins Co
(RSUI)
  $ 36,625      $1M/$3M   NIL

3/21/2014

  3/21/2015   South Palm Ambulatory Surgery Center   MXI-93057167
(COP)
  Property   AGCS
Marine
Insurance
Company
  $ 34,197        $5,000

6/1/2013

  6/1/2014   Melbourne Surgery Center - Excess Policy   HPE40320940520   Professional
Liab/
General Liab
Excess
  CNA   $ 23,223      $1M/$1M   NIL

2/2/2015

  2/2/2016   Western Pennsylvania Anesthesia Associates, Ltd.   1-GLCM001012   Professional
Liability
  Healthcare
Providers
Insuranec
Exchange
  $

 
 
 

34,721

MCARE
Billed
Separately

  

  
  
  

 

$500K/$1.5M Physicians

$500K/$1.5M Entity

$500K/$1.5M MCARE

  NIl

2/2/2015

  2/2/2016   Western Pennsylvania Anesthesia Associates, Ltd.   1-GLCM001013   Professional
Liability
  Healthcare
Providers
Insuranec
Exchange
  $ 6,806      $500K/$1.5M Designated Medical Employee   NIL

2/2/2015

Cancellation Date

   

Leena P Shete, MD

Western Pennsylvania Anesthesia Associates, Ltd.

  1-CMP0000387   Professional
Liability -

Reporting
Endorsement

  Healthcare
Providers
Insuranec
Exchange
  $ 0      $500K/$1.5M Physicians   NIL

 

66


Policy

Effective

Date

  Policy
Expiration
Date
 

Named

Insured

  Policy Number   Coverage
Type
 

Carrier

  Premium*    

Limits of

Insurance

  Deductible/
Retention

8/1/2015

  8/1/2016   Tennessee Valley Neonatology, Inc   MP77837   Professional
Liability
  ProAssurnace Indemnity Company, Inc.   $ 38,971      $1M/$3M   NIL

8/15/2015

  8/15/2016   Physicians Office Partners   37 SBA
UX3412
SA
  BOP   Hartford Fire Insurance Company   $ 5,433     

$1M/$2M GL

Various by Location - BPP

  $500
Property

1/1/2015

  1/1/2016   Physicians Office Partners   8242-
0642
  EPL/
Fiduciary/

Miscellaneous
Professional/
Cyber/Crime

  Federal Insurance Company   $ 23,374     

$1M EPL

$1M Fiduciary

$1M Maximum Aggregate

$1M Cyber

$1M Crime

  $10,000
EPL

NIL
Fiduciary

$10,000
MP

$25K
Cyber

$1K
Crime

3/6/2015

  3/6/2016   Radiology Associates of Hollywood, PA   Unknown   Professional
Liability
 

Physicians Professional

Liability Risk Retention Group

    Unknown      $250K/$750K   NIL

4/1/2015

  4/1/2016   Halifax Anesthesiology Associates, PA   Unknown   Professional
Liability
  Halifax Insurance Plan, Inc.     Unknown     

$500K/$1M

$1M Group Agg

  NIL

 

67


SCHEDULE 7.2

Website Address for Electronic Financial Reporting

 

1. investor.evhc.net

or

 

2. ir.emsc.net

 

68


SCHEDULE 8.1

Existing Indebtedness

 

1. Schedule 1.1(c) is incorporated herein by reference.

 

2. Surety Bonds listed on Annex A hereto.

 

69


SCHEDULE 8.1

Annex A

[See attachment]

 

70


Surety Report (by Client/Surety)

 

Bond No.

  State    

Eff Date

Exp Date

 

Renewal Type

  Cancellation Provision         Bond Amount     Premium     Replacing Bond
No.
    Replaced By
Bond No.
 

AmSurg Corp.

                   

Active Bonds

                   

Western Surety Company

    

                 

62564367

    FL      11/2/2016   Continuous Until Cancelled/Released     60 days NOC        $ 50,000.00      $ 375.00        N/A        N/A   
    11/2/2017       Requested By: Monique Crawford         

 

Prinicpal

     

 

Obligee

  

 

 

Description

       

 

Sheridan Healthcorp, Inc.

   

   

 

State of Florida, Agency for Health Care Administration (AHCA)

   

 

 

Medicaid Provider Surety Bond Address: 814 S. Washington Avenue, Titusville, FL 32780-2406

   

      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

62829917

 

 

 

 

FL

 

  

 

 

6/29/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 Days NOC

 

  

    $ 50,000.00      $ 375.00        N/A        N/A   
    6/29/2017       Requested By: Thadius Sankey       

 

Prinicpal

     

 

Obligee

  

 

 

Description

       

 

Sheridan Healthcorp, Inc.

   

   

 

State of Florida, Agency for Health Care Administration (AHCA)

   

 

 

Medicaid Provider Surety Bond Address: 1900 Don Wickman Road, Clermont, FL 34711-1979

   

      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

62829920

 

 

 

 

FL

 

  

 

 

6/29/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 Days NOC

 

  

    $ 50,000.00      $ 375.00        N/A        N/A   
    6/29/2017       Requested By: Thadius Sankey         

 

Prinicpal

 

     

 

Obligee

 

  

 

 

Description

 

  

     

Sheridan Healthcorp, Inc.

   

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 1800 Oakley Seaver Drive, Clermont, FL 34711-1916    
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

62829923

 

 

 

 

FL

 

  

 

 

6/29/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 Days NOC

 

  

    $ 50,000.00      $ 375.00        N/A        N/A   
    6/29/2017       Requested By: Thadius Sankey         

 

Prinicpal

 

     

 

Obligee

 

  

 

 

Description

 

  

     

Sheridan Healthcorp, Inc.

   

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 2040 Oakley Seaver Drive, Suite 100, Clermont, FL 34711-1962    
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

 

Tuesday, November 15, 2016

     

Page 1 of 8

 

LOGO


Bond No.

  State  

Eff Date

Exp Date

 

Renewal Type

  Cancellation Provision         Bond Amount     Premium     Replacing Bond
No.
    Replaced By
Bond No.
 

62865556

  FL  

8/2/2016

  Continuous Until Cancelled/Released     60 Days NOC        $ 50,000.00      $ 375.00        N/A        N/A   
   

8/2/2017

      Requested By: Thadius Sankey       

 

Prinicpal

 

     

 

Obligee

 

  

 

 

Description

 

       

Sheridan Healthcorp, Inc.

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 1600 Southeast 17th Street, Ocala, FL 34471-4606    
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

62879191

 

 

FL

 

 

8/22/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 Days NOC

 

  

    $ 50,000.00      $ 375.00        N/A        N/A   
   

8/22/2016

      Requested By: Thadius Sankey   

 

Prinicpal

 

     

 

Obligee

 

  

 

 

Description

 

       

Sheridan Healthcorp, Inc.

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 2550 S Douglas Road, Coral Gables, FL 33134-6104    
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

62904899

 

 

FL

 

 

9/9/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 Days NOC

 

  

    $ 50,000.00      $ 375.00        N/A        N/A   
   

9/9/2017

      Requested By: Thadius Sankey   

 

Prinicpal

 

     

 

Obligee

 

  

 

 

Description

 

       

Sheridan Healthcorp, Inc.

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 1309 N Flagler Dr. , West Palm Beach, FL 33401-3406    
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

69717160

 

 

FL

 

 

5/22/2016

   

 

Continuous Until Cancelled/Released

 

 

 

 

60 days NOC

 

  

    $ 50,000.00      $ 375.00        N/A        N/A   
    5/22/2017         Requested By:   

 

Prinicpal

 

     

 

Obligee

 

  

 

 

Description

 

       

Sheridan Healthcorp, Inc.

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 60 Memorial Medical Pkwy Palm Coast, FL 32164    
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

70273067

 

 

FL

 

 

3/26/2016

   

 

Continuous Until Cancelled/Released

 

 

 

 

60 days NOC

 

  

    $ 50,000.00      $ 375.00        N/A        N/A   
    3/26/2017         Requested By:   

 

Prinicpal

 

     

 

Obligee

 

  

 

 

Description

 

       

Sheridan Healthcorp, Inc.

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 10101 Forest Hill Blvd, Wellington, FL 33414    
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

 

Tuesday, November 15, 2016

     

Page 2 of 8

 

LOGO


Bond No.

  State    

Eff Date

Exp Date

 

Renewal Type

  Cancellation Provision         Bond Amount     Premium     Replacing Bond
No.
    Replaced By
Bond No.
 

70289838

    FL     

5/1/2016

5/1/2017

  Continuous Until Cancelled/Released     60 days NOC      Requested By:   $ 50,000.00      $ 375.00        N/A        N/A   

 

Prinicpal

     

 

Obligee

   

 

Description

       

 

Sheridan Healthcorp, Inc.

     

 

State of Florida, Agency for Health Care Administration (AHCA)

   

 

 

Medicaid Provider Surety Bond Address: 13001 Southern Blvd, Loxahatchee, FL 33470

   

      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

70293106

 

 

 

 

FL

 

  

 

 

5/7/2016

5/7/2017

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 days NOC

 

  

  Requested By:  

 

$

 

50,000.00

 

  

 

 

$

 

375.00

 

  

 

 

 

 

N/A

 

  

 

 

 

 

N/A

 

  

 

Prinicpal

     

 

Obligee

   

 

Description

       

 

Sheridan Healthcorp, Inc.

     

 

State of Florida, Agency for Health Care Administration (AHCA)

   

 

 

Medicaid Provider Surety Bond Address: 12961 Palms West Dr., Loxahatchee, FL 33470

   

      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

70685144

 

 

 

 

FL

 

  

 

 

3/18/2016

3/18/2017

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 days NOC

 

  

  Requested By:  

 

$

 

50,000.00

 

  

 

 

$

 

375.00

 

  

 

 

 

 

N/A

 

  

 

 

 

 

N/A

 

  

 

Prinicpal

     

 

Obligee

   

 

Description

       

 

Sheridan Healthcorp, Inc.

     

 

State of Florida, Agency for Health Care Administration (AHCA)

   

 

 

Medicaid Provider Surety Bond Address: 1150 N 35th Ave #445, Hollywood, FL 33021-5430

   

      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

70776204

 

 

 

 

FL

 

  

 

 

8/14/2016

8/14/2017

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 days NOC

 

  

  Requested By:  

 

$

 

50,000.00

 

  

 

 

$

 

375.00

 

  

 

 

 

 

N/A

 

  

 

 

 

 

N/A

 

  

 

Prinicpal

     

 

Obligee

   

 

Description

       

 

Sheridan Healthcorp, Inc.

     

 

State of Florida, Agency for Health Care Administration (AHCA)

   

 

 

Medicaid Provider Surety Bond Address: 9100 SW 87th Avenue, Miami, FL 33176

   

      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

70825184

 

 

 

 

FL

 

  

 

 

11/2/2016

11/2/2017

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 days NOC

 

  

  Requested By:  

 

$

 

50,000.00

 

  

 

 

$

 

375.00

 

  

 

 

 

 

N/A

 

  

 

 

 

 

N/A

 

  

 

Prinicpal

     

 

Obligee

   

 

Description

       

 

Sheridan Healthcorp, Inc.

     

 

State of Florida, Agency for Health Care Administration (AHCA)

   

 

 

Medicaid Provider Surety Bond Address: 21 Hospital Drive, Suite 220, Palm Coast, FL 32164

   

      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
     

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

  

  

         

 

Tuesday, November 15, 2016

       

Page 3 of 8

 

LOGO


Bond No.

    

State

 

Eff Date

Exp Date

 

Renewal Type

  Cancellation Provision       Bond Amount     Premium     Replacing Bond
No.
  Replaced By
Bond No.

70881265

     FL   3/15/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
       3/15/2017       Requested By:        

 

Prinicpal

 

        

 

Obligee

 

   

 

Description

 

       

Sheridan Healthcorp, Inc.

         State of Florida, Agency for Health Care Administration (AHCA)   Medicaid Provider Surety Bond Address: 1395 S State Rd 7 #100, Wellington, FL 33414
         Filed with: Florida Agency for Healthcare Administration          
         Long Term Care Unit          
         2727 Mahan Dr., Mail Stop MS 33          
         Tallahassee, FL 32308-          

71124273

     FL   7/1/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
       7/1/2017       Requested By:        

 

Prinicpal

 

        

 

Obligee

 

   

 

Description

 

       

Sheridan Healthcorp, Inc.

         State of Florida, Agency for Health Care Administration (AHCA)   Medicaid Provider Surety Bond Address: 1005 Joe DiMaggio Dr., Hollywood, FL 33021
         Filed with: Florida Agency for Healthcare Administration          
         Long Term Care Unit          
         2727 Mahan Dr., Mail Stop MS 33          
         Tallahassee, FL 32308-          

71158325

     FL   9/30/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
       9/30/2017       Requested By:        

 

Prinicpal

 

        

 

Obligee

 

   

 

Description

 

       

Sheridan Healthcorp, Inc.

         State of Florida, Agency for Health Care Administration (AHCA)   Medicaid Provider Surety Bond Address: 502 West Highland Blvd, Inverness, FL 34952
         Filed with: Florida Agency for Healthcare Administration          
         Long Term Care Unit          
         2727 Mahan Dr., Mail Stop MS 33          
         Tallahassee, FL 32308-          

71430157

     FL   6/20/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
       6/20/2017       Requested By:        

 

Prinicpal

 

        

 

Obligee

 

     

 

Description

 

       

Sheridan Healthcorp, Inc.

         State of Florida, Agency for Health Care Administration (AHCA)  

Medicaid Provider Surety Bond Address: 1613 N Harrison Pkwy,#200, Sunrise, FL 33323

         Filed with: Florida Agency for Healthcare Administration          
         Long Term Care Unit          
         2727 Mahan Dr., Mail Stop MS 33          
         Tallahassee, FL 32308-          

 

RIDERS

  Effective
Date
 

Sign/Seal

Date

 

Rider Description

  Increased-Decreased By    

Return-Addl

Premium

  11/14/2014   10/8/2014   Bond cancelled per Monique Crawford   $ 0.00     

Add’l/Return Premium,

if any, included above

  6/20/2014   11/10/2014   Bond reinstated per Monique Crawford   $ 0.00     

Add’l/Return Premium,

if any, included above

 

Tuesday, November 15, 2016

       

Page 4 of 8

 

LOGO


Bond No.

  State  

Eff Date

Exp Date

 

Renewal Type

  Cancellation Provision       Bond Amount     Premium     Replacing Bond
No.
  Replaced By
Bond No.

71438883

  FL   7/25/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
    7/25/2017       Requested By:

 

Prinic pal

 

     

 

Obligee

 

   

 

Description

 

       

Sheridan Healthcorp, Inc.

    State of Florida, Agency for Health Care Administration (AHCA)   Medicaid Provider Surety Bond Address: 8383 N. Davis Hwy. Pensacola, FL 32514
      Filed with: Florida Agency for Healthcare Administration          
      Long Term Care Unit          
      2727 Mahan Dr., Mail Stop MS 33          
      Tallahassee, FL 32308-          

 

71438889

 

 

FL

 

 

7/25/2016

 

 

Continuous Until Cancelled/Released

 

 

60 days NOC

   

 

$

 

50,000.00

 

  

 

 

$

 

375.00

 

  

 

 

N/A

 

 

N/A

    7/25/2017       Requested By:        

 

Prinic pal

 

     

 

Obligee

 

   

 

Description

 

       

Sheridan Healthcorp, lnc.

    State of Florida, Agency for Health Care Administration (AHCA)   Medicaid Provider Surety Bond Address: 1431 S. W.1st Avenue, Ocala, FL 34471
      Filed with: Florida Agency for Healthcare Administration          
      Long Term Care Unit          
      2727 Mahan Dr., Mail Stop MS 33          
      Tallahassee, FL 32308-          

 

71438892

 

 

FL

 

 

7/25/2016

 

 

Continuous Until Cancelled/Released

 

 

60 days NOC

   

 

$

 

50,000.00

 

  

 

 

$

 

375.00

 

  

 

 

N/A

 

 

N/A

    7/25/2017       Requested By:        

 

Prinic pal

 

     

 

Obligee

 

   

 

Description

 

       

Sheridan Healthcorp. Inc.

    State of Florida, Agency for Health Care Administration (AHCA)   Medicaid Provider Surety Bond Address: 4600 S. W. 46th Ct., Ocala, FL 34474
      Filed with: Florida Agency for Healthcare Administration          
      Long Term Care Unit          
     

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

         
                   

 

71439894

 

 

FL

 

 

7/25/2016

 

 

Continuous Until Cancelled/Released

 

 

60 days NOC

   

 

$

 

50,000.00

 

  

 

 

$

 

375.00

 

  

 

 

N/A

 

 

N/A

    7/25/2017       Requested By:        

 

Prinic pal

 

     

 

Obligee

 

   

 

Description

 

       

Sheridan Healthcorp, Inc.

    State of Florida, Agency for Health Care Administration (AHCA)   Medicaid Provider Surety Bond Address: 1000 Mar-Walt Dr., Fort Walton Beach, FL 32547
      Filed with: Florida Agency for Healthcare Administration          
      Long Term Care Unit          
      2727 Mahan Dr., Mail Stop MS 33          
      Tallahassee, FL 32308-          

 

71467292

 

 

FL

 

 

10/11/2016

 

 

Continuous Until Cancelled/Released

 

 

60 days NOC

   

 

$

 

50,000.00

 

  

 

 

$

 

375.00

 

  

 

 

N/A

 

 

N/A

    10/11/2017       Requested By:        

 

Prinic pal

 

     

 

Obligee

 

   

 

Description

 

       

Sheridan Healthcorp, Inc.

    State of Florida, Agency for Health Care Administration (AHCA)   Medicaid Provider Surety Bond Address: 95 Bulldog Blvd., Ste. 104, Melbourne, FL 32901
      Filed with: Florida Agency for Healthcare Administration          
      Long Term Care Unit          
      2727 Mahan Dr., Mail Stop MS 33        
      Tallahassee, FL 32308-        

 

 

Tuesday, November 15, 2016

     

Page 5 of 8

 

LOGO


Bond No.

  State    

Eff Date

Exp Date

 

Renewal Type

  Cancellation Provision         Bond Amount     Premium   Replacing Bond
No.
  Replaced By
Bond No.

71473854

    FL     

11/1/2016

  Continuous Until Cancelled/Released     60 days NOC       $ 50,000.00      $375.00   N/A   N/A
   

11/1/2017

      Requested By:

 

Prinicpal

 

     

 

Obligee

 

   

 

Description

 

Sheridan Healthcorp, Inc.

   

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 3201 South Tamiami Trail, Sarasota, FL 34239
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

71492069

 

 

 

 

FL

 

  

 

 

1/1/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 days NOC

 

 

   

 

$

 

50,000.00

 

  

 

 

$375.00

 

 

N/A

 

 

N/A

   

1/1/2017

      Requested By:  

 

Prinicpal

 

     

 

Obligee

 

   

 

Description

 

 

Sheridan Healthcorp, Inc.

   

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 701 6th Street South Saint Petersburg, FL 33701
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

71492097

 

 

 

 

FL

 

  

 

 

1/1/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 days NOC

 

  

   

 

$

 

50,000.00

 

  

 

 

$375.00

 

 

N/A

 

 

N/A

    1/1/2017         Requested By:  

 

Prinicpal

 

     

 

Obligee

 

   

 

Description

 

 

Sheridan Healthcorp, Inc.

   

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 603 7th Street South Saint Petersburg, FL 33701
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

71588213

 

 

 

 

FL

 

  

 

 

10/1/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 Days NOC

 

  

   

 

$

 

50,000.00

 

  

 

 

$375.00

 

 

N/A

 

 

N/A

    10/1/2017       Requested By: Monique Crawford  

 

Prinicpal

 

     

 

Obligee

 

   

 

Des cription

 

 

Sheridan Healthcorp, Inc.

   

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 1401 West Seminole Blvd., Sanford, FL 32771 Seminole County
      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

71590690

 

 

 

 

FL

 

  

 

 

11/1/2016

 

 

Continuous Until Cancelled/Released

 

 

 

 

60 Days NOC

 

  

   

 

$

 

50,000.00

 

  

 

 

$375.00

 

 

N/A

 

 

N/A

    11/1/2017       Requested By: Monique Crawford  

 

Prinicpal

 

     

 

Obligee

 

   

 

Description

 

 

Sheridan Healthcorp, Inc.

   

    State of Florida, Agency for Health Care Administration (AHCA)       Medicaid Provider Surety Bond Address: 1041 Dunlawton Avenue, Port Orange, FL 32127  
      Filed with: Florida Agency for Healthcare Administration       Volusia County  
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

Tuesday, November 15, 2016

       

Page 6 of 8

 

LOGO


Bond No.

  

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation Provision

      Bond Amount     Premium    

Replacing Bond
No.

 

Replaced By
Bond No.

71590694

   FL   11/1/2016   Continuous Until Cancelled/Released   60 Days NOC     $ 50,000.00      $ 375.00      N/A   N/A
    

11/1/2017

 

     

Requested By: Monique Crawford

 

       

Prinicpal

 

    

Obligee

 

 

Description

 

       

Sheridan Healthcorp, Inc.

    

State of Florida, Agency for Health Care Administration (AHCA)

 

Medicaid Provider Surety Bond Address: 303 N. Clyde Morris Blvd., Daytona Beach, FL 32114 Volusia County

    

Filed with: Florida Agency for Healthcare Administration

         
    

Long Term Care Unit

         
    

2727 Mahan Dr., Mail Stop MS 33

         
    

Tallahassee, FL 32308-

         

71623140

   FL   2/1/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 0.00      N/A   N/A
     2/1/2017       Requested By: Monique Crawford        

Prinicpal

    

Obligee

  Description        

Sheridan Healthcorp, Inc.

    

State of Florida, Agency for Health Care Administration (AHCA)

 

Medicaid Provider Surety Bond Address: 449 W 23rd Street, Panama City, FL 32405

    

Filed with: Florida Agency for Healthcare Administration

         
    

Long Term Care Unit

         
    

2727 Mahan Dr., Mail Stop MS 33

         
    

Tallahassee, FL 32308-

         

71663111

   FL   5/1/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00       
    

5/1/2017

 

     

Requested By: Monique Crawford

 

       

Prinicpal

 

    

Obligee

 

 

Description

 

       

Sheridan Healthcorp, Inc.

    

State of Florida, Agency for Health Care Administration (AHCA)

 

Medicaid Provider Surety Bond Address: 6110 SW 70th Street, South Miami, FL 33143

    

Filed with: Florida Agency for Healthcare Administration

         
    

Long Term Care Unit

         
    

2727 Mahan Dr., Mail Stop MS 33

         
    

Tallahassee, FL 32308-

         

71676654

   FL   6/29/2016   Continuous Until Cancelled/Released   60 Days NOC     $ 50,000.00      $ 375.00       
     6/29/2017       Requested By: Monique Crawford        

Prinicpal

    

Obligee

  Description        

Sheridan Healthcorp, Inc.

    

State of Florida, Agency for Health Care Administration (AHCA)

 

Medicaid Provider Surety Bond Address: 4500 Newberry Road, Gainesville, FL 32607

    

Filed with: Florida Agency for Healthcare Administration

         
    

Long Term Care Unit

         
    

2727 Mahan Dr., Mail Stop MS 33

         
    

Tallahassee, FL 32308-

         

 

 

Tuesday, November 15, 2016

     

Page 7 of 8

 

LOGO


Bond No.

  State    

Eff Date

Exp Date

 

Renewal Type

  Cancellation Provision         Bond Amount     Premium     Replacing Bond
No.
    Replaced By
Bond No.
 

71683071

    FL     

7/1/2016

  Continuous Until Cancelled/Released     60 Days NOC        $ 50,000.00      $ 375.00       
   

7/1/2017

        Requested By: Monique Crawford   

 

Prinicpal

 

     

 

Obligee

 

   

 

Description

 

  

Sheridan Healthcorp, Inc.

   

    State of Florida, Agency for Health Care Administration (AHCA)      

Medicaid Provider Surety Bond Address: 1200 37th Street, Vero Beach, FL 32960

   

      Filed with: Florida Agency for Healthcare Administration              
      Long Term Care Unit             
      2727 Mahan Dr., Mail Stop MS 33             
      Tallahassee, FL 32308-             

 

Total for Western Surety Company

          $ 1,650,000.00      $ 12,000.00       

Total for Active Bonds

          $ 1,650,000.00      $ 12,000.00       

Total for AmSurg Corp.

          $ 1,650,000.00      $ 12,000.00       

 

 

Tuesday, November 15, 2016

     

Page 8 of 8

 

LOGO


SCHEDULE 8.5

Affiliate Transactions

None.

 

71


EXHIBIT A

to

CREDIT AGREEMENT

FORM OF NOTE

THIS NOTE AND THE OBLIGATIONS EVIDENCED HEREBY MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT REFERRED TO BELOW. TRANSFERS OF THIS NOTE AND THE OBLIGATIONS EVIDENCED HEREBY MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF SUCH CREDIT AGREEMENT.

 

$                 New York, New York
   [               , 20      ]

FOR VALUE RECEIVED, the undersigned, ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), hereby unconditionally promises to pay to          (the “ Lender ”) and its successors and assigns, at the office of JPMORGAN CHASE BANK, N.A., located at 383 Madison Avenue, New York, New York 10179, Attn: [                      ] in lawful money of the United States of America and in immediately available funds, the aggregate unpaid principal amount of the Term Loans made by the Lender to the undersigned pursuant to Subsection 2.1 of the Credit Agreement referred to below, which sum shall be payable at such times and in such amounts as are specified in the Credit Agreement. The Borrower further agrees to pay interest in like money at such office on the unpaid principal amount hereof from time to time at the applicable rates per annum and on the dates set forth in Subsection 4.1 of the Credit Agreement until such principal amount is paid in full (both before and after judgment).

This Note is one of the Notes referred to in, and is subject in all respects to, the Amended and Restated Credit Agreement, dated as of December 1, 2016 (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), among the Borrower, the several banks and other financial institutions from time to time parties thereto (including the Lender) (the “ Lenders ”), JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein), and is entitled to the benefits thereof, is secured and guaranteed as provided therein and is subject to optional and mandatory prepayment in whole or in part as provided therein. Reference is hereby made to the Loan Documents for a description of the properties and assets in which a security interest has been granted, the nature and extent of the security and the guarantees, the terms and conditions upon which the security interests and each guarantee were granted and the rights of the holder of this Note in respect thereof. The holder hereof, by its acceptance of this Note, agrees to the terms of, and to be bound by and to observe the provisions applicable to the Lenders contained in, the Credit Agreement. Capitalized terms used herein which are defined in the Credit Agreement shall have such defined meanings unless otherwise defined herein or unless the context otherwise requires.

Upon the occurrence of any one or more of the Events of Default specified in the Credit Agreement, all amounts remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable, all as provided therein.


EXHIBIT A

to

CREDIT AGREEMENT

Page 2

 

All parties now and hereafter liable with respect to this Note, whether maker, principal, surety, guarantor, endorser or otherwise, hereby waive, to the maximum extent permitted by applicable law, presentment, demand, protest and all other notices of any kind under this Note.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

ENVISION HEALTHCARE CORPORATION
By:  

 

  Name:
  Title:


EXHIBIT B

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT C

to

CREDIT AGREEMENT

FORM OF MORTGAGE

[See attached.]


1 This instrument was prepared in consultation with

counsel in the state in which the Premises is

located by the attorney named below and after

recording, please return to:

Cahill Gordon & Reindel LLP

80 Pine Street

New York, NY 10005

Attention: [                      ]

 

STATE OF  

 

    

 

COUNTY OF  

 

    

MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT

OF LEASES AND RENTS AND FIXTURE FILING

THIS MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FILING (as amended, modified or supplemented from time to time, the “Mortgage”) is made and entered into as of the [      ] day of [              ],
201[    ], by [                      , a                      ], with an address as of the date hereof at [                      ], Attention: [                      ] (the “Mortgagor”), for the benefit of JPMORGAN CHASE BANK, N.A. (“JPM”), in its capacity as Collateral Agent for the Secured Parties (as such terms are defined in the Guarantee and Collateral Agreement defined below), with an address as of the date hereof at [                      ], Attention: [                      ] (in such capacity, the “Mortgagee”).

RECITALS :

WHEREAS, pursuant to that certain Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE Corporation, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (as further defined in Subsection 1.1 of the Credit Agreement, the “ Lenders ”), the Collateral Agent, the Administrative Agent, and the other parties party thereto, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject to the conditions set forth therein;

 

 

1   Local counsel to advise as to any recording requirements for the cover page, including need for recording tax notification or a separate tax affidavit.


WHEREAS, the Borrower is a member of an affiliated group of companies that includes the Borrower’s Subsidiaries that are party to the Guarantee and Collateral Agreement (as defined below), the Borrower’s other Subsidiaries and the Mortgagor;

WHEREAS, the proceeds of the extensions of credit under the Credit Agreement will be used in part to enable the Borrower to make valuable transfers to the Mortgagor in connection with the operation of its business;

WHEREAS, the Borrower and the Mortgagor are engaged in related businesses, and each will derive substantial direct and indirect benefit from the making of the extensions of credit under the Credit Agreement;

WHEREAS, the Mortgagor is the owner of the fee simple interest in the real property described on Exhibit A attached hereto and incorporated herein by reference;

WHEREAS, it is a condition to the obligation of the Lenders to make their respective extensions of credit under the Credit Agreement that the Mortgagor shall execute and deliver this Mortgage to the Mortgagee for the benefit of the Secured Parties;

WHEREAS, concurrently with the entering into of the Credit Agreement, the Borrower and certain Subsidiaries of the Borrower have entered into that Guarantee and Collateral Agreement (as amended, amended and restated, modified, renewed or replaced from time to time, the “ Guarantee and Collateral Agreement ”) in favor of JPM, as Collateral Agent and Administrative Agent for the Lenders from time to time parties to the Credit Agreement;

WHEREAS, pursuant to that certain Amended and Restated Credit Agreement, dated as of December 1, 2016 (as amended, amended and restated, waived, supplemented or otherwise modified from time to time, together with any agreement extending the maturity of, or restructuring, refunding, refinancing or increasing the indebtedness under such agreement or successor agreements, the “ ABL Credit Agreement ”), among the Borrower, the Subsidiary Borrowers (as defined therein) from time to time party thereto, Deutsche Bank AG New York Branch, as collateral agent and as administrative agent (in such capacities, the “ ABL Agent ”), JPMorgan Chase, Bank, N.A., as co-collateral agent, and the other parties party thereto, the Lenders party thereto have severally agreed to make extensions of credit to the Borrower upon the terms and subject to the conditions set forth therein;

WHEREAS, pursuant to that certain Guarantee and Collateral Agreement, dated as of May 25, 2011 (as amended, amended and restated, waived, supplemented or otherwise modified from time to time, the “ ABL Collateral Agreement ”), among the Borrower, certain Subsidiaries of the Borrower and the ABL Agent, the Borrower and such Subsidiaries have granted a first priority Lien to the ABL Agent for the benefit of the ABL Secured Parties (as defined in the ABL/Term Loan Intercreditor Agreement) on the ABL Priority Collateral (as defined in the ABL/Term Loan Intercreditor Agreement defined below) and a second priority Lien for the benefit of the ABL Secured Parties on the Term Loan Priority Collateral (as defined in the ABL/Term Loan Intercreditor Agreement) (subject in each case to Permitted Liens);

 

6


WHEREAS, the Collateral Agent and the ABL Agent have entered into an Intercreditor Agreement, acknowledged by the Borrower and the Granting Parties, dated as of May 25, 2011 (as amended, amended and restated, waived, supplemented or otherwise modified from time to time (subject to Subsection 9.1 of the Guarantee and Collateral Agreement), the “ABL/Term Loan Intercreditor Agreement”);

WHEREAS, the Mortgagor will receive substantial benefit from the execution and performance of the obligations under the Credit Agreement, and is, therefore, willing to enter into this Mortgage; and

WHEREAS, this Mortgage is given by the Mortgagor in favor of the Mortgagee for the benefit of the Secured Parties to secure the payment and performance of all of the Obligations (as defined in the Guarantee and Collateral Agreement) of the Mortgagor (such Obligations of the Mortgagor being hereinafter referred to as the “Obligations”).

W I T N E S S E T H :

NOW THEREFORE, the Mortgagor, in consideration of the indebtedness herein recited and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, has irrevocably granted, released, sold, remised, bargained, assigned, pledged, warranted, mortgaged, transferred and conveyed, and does hereby grant, release, sell, remise, bargain, assign, pledge, warrant, mortgage, transfer and convey to the Mortgagee, for the benefit of the Secured Parties, and the Mortgagee’s successors and assigns, a continuing security interest in and to, and lien upon, all of the Mortgagor’s right, title and interest in and to the following described land, real property interests, buildings, improvements, fixtures and proceeds:

(a) All that tract or parcel of land and other real property interests in [                      ] County, [                      ], as more particularly described in Exhibit A attached hereto and made a part hereof, together with any greater or additional estate therein as hereafter may be acquired by the Mortgagor (the “Land”), and all of the Mortgagor’s right, title and interest in and to rights appurtenant thereto, including easement rights;

(b) All buildings and improvements of every kind and description now or hereafter erected or placed on the Land (the “Improvements”), all materials, equipment, apparatus and fixtures now or hereafter owned by the Mortgagor and attached to or installed in or located on and used in connection with the aforesaid Land and Improvements (collectively, the “Fixtures”) (hereinafter, the Land, the Improvements and the Fixtures may be collectively referred to as the “Premises”. As used in this Mortgage, the term “Premises” shall mean all, or, where the context permits or requires, any portion of the above or any interest therein); and

(c) Subject to the terms of the Guarantee and Collateral Agreement, any and all cash proceeds and noncash proceeds from the conversion, voluntary or involuntary, of any of the Premises or any portion thereof into cash or liquidated claims, including (i) proceeds of any insurance, indemnity, warranty, guaranty or claim payable to the Mortgagee or to the Mortgagor from time to time with respect to any of the Premises, (ii)

 

7


payments (in any form whatsoever) made or due and payable to the Mortgagor in connection with any condemnation, seizure or similar proceeding and (iii) other amounts from time to time paid or payable under or in connection with any of the Premises, including, without limitation, refunds of real estate taxes and assessments, including interest thereon, but in each case under this clause (c) excluding Excluded Assets (as defined in the Guarantee and Collateral Agreement).

TO HAVE AND HOLD the same, together with all privileges, hereditaments, easements and appurtenances thereunto belonging, subject to Permitted Liens, to the Mortgagee, for the benefit of the Secured Parties, and the Mortgagee’s successors and assigns to secure the Obligations; provided that, upon (i) the Obligations Satisfaction Date (as defined below) or (ii) the full satisfaction of the conditions set forth in the Credit Agreement for the release of this Mortgage in accordance with the terms thereof, the lien and security interest of this Mortgage shall cease, terminate and be void and the Mortgagee or its successor or assign shall promptly cause a release of this Mortgage to be filed in the appropriate office; and until the Obligations are fully satisfied, it shall remain in full force and virtue.

And, as additional security for said Obligations, subject to the Credit Agreement or the Guarantee and Collateral Agreement, as applicable, the Mortgagor hereby unconditionally assigns to the Mortgagee, for the benefit of the Secured Parties, all the security deposits, rents, issues, profits and revenues of the Premises from time to time accruing (the “Rents and Profits”), which assignment constitutes a present, absolute and unconditional assignment and not an assignment for additional security only, reserving only to the Mortgagor a license to collect and apply the same as the Mortgagor chooses as long as no Event of Default has occurred and is continuing. Immediately upon the occurrence of and during the continuance of any Event of Default, whether or not legal proceedings have commenced and without regard to waste, adequacy of security for the Obligations or solvency of the Mortgagor, the license granted in the immediately preceding sentence shall automatically cease and terminate without any notice by the Mortgagee (such notice being hereby expressly waived by the Mortgagor to the extent permitted by applicable law), or any action or proceeding or the intervention of a receiver appointed by a court.

As additional collateral and further security for the Obligations, subject to the Credit Agreement or the Guarantee and Collateral Agreement, as applicable, the Mortgagor does hereby assign by way of security and grants to the Mortgagee, for the benefit of the Secured Parties, a security interest in all of the right, title and the interest of the Mortgagor in and to any and all real property leases and rental agreements (collectively, the “Leases”) with respect to the Premises or any part thereof, and the Mortgagor agrees to execute and deliver to the Mortgagee such additional instruments, in form and substance reasonably satisfactory to the Mortgagee, as may hereafter be requested by the Mortgagee to evidence and confirm said assignment; provided, however, that acceptance of any such assignment shall not be construed to impose upon the Mortgagee any obligation or liability with respect thereto.

 

8


The Mortgagor covenants, represents and agrees as follows:

ARTICLE I

Obligations Secured

1.1 Obligations . The Mortgagee and the Lenders have agreed to establish a secured credit facility in favor of the Borrower pursuant to the terms of the Credit Agreement. This Mortgage is given to secure the payment and performance by the Mortgagor of the Obligations. [The maximum amount of the Obligations secured hereby will not exceed $          , plus, to the extent permitted by applicable law, collection costs, sums advanced for the payment of taxes, assessments, maintenance and repair charges, insurance premiums and any other costs incurred to protect the security encumbered hereby or the lien hereof, expenses incurred by the Mortgagee by reason of any default by the Mortgagor under the terms hereof, together with interest thereon, all of which amounts shall be secured hereby.] 2

1.2 [ Future] Advances . This Mortgage is given to secure the Obligations and the repayment of the aforesaid obligations (including, without limitation, the Obligations of the Mortgagor with respect to each advance of any Loan, any renewals or extensions or modifications thereof upon the same or different terms or at the same or different rate of interest and also to secure all future advances[ and readvances] thereof that may subsequently be made to the Mortgagor, the Borrower or any other Loan Party by the Lenders pursuant to the Credit Agreement or any other Loan Document, and all renewals, modifications, replacements and extensions thereof). The lien of such future advances[ and re-advances] shall relate back to the date of this Mortgage. [Portions of the Loans represent revolving credit and letter of credit accommodations, all or any part of which may be advanced to or for the benefit of the Borrower or the Guarantors (as defined in the Guarantee and Collateral Agreement), repaid by the Borrower or the Guarantors and re-advanced to or for the benefit of the Borrower or the Guarantors from time to time subject to the terms of the Credit Agreement.] The Mortgagor agrees that if the outstanding balance of any Obligation[ or revolving credit or letter of credit accommodation] or all of the Loans, principal and interest, is ever repaid to zero, the lien of this Mortgage shall not be or be deemed released or extinguished by operation of law or implied intent of the parties. This Mortgage shall remain in full force and effect as to any further advances made under the Credit Agreement, any Interest Rate Agreement, Hedging Agreement (as defined in the Guarantee and Collateral Agreement) or Bank Products Agreement (entered into with any Bank Products Affiliate (as defined in the Guarantee and Collateral Agreement) or Hedging Affiliate(as defined in the Guarantee and Collateral Agreement)) after any such zero balance until such time as the Loans,[ the Reimbursement Obligations] and the other Obligations (other than any Obligations owing to a Non-Lender Secured Party in respect of the provision of cash management services) then due and owing shall have been paid in full[, the Commitments have been terminated and no Letters of Credit shall be outstanding (except for Letters of Credit that have been cash collateralized in a manner satisfactory to the applicable Issuing Lenders(as defined in the Guarantee and Collateral Agreement))] (the date upon which all of such events have occurred, the “Obligations Satisfaction Date”) or this Mortgage has been cancelled or released of record in accordance with the requirements of the Credit Agreement, and the Mortgagor waives, to the fullest extent permitted by applicable law, the operation of any applicable statute, case law or regulation having a contrary effect.

 

 

2   To be included in states that impose mortgage recording tax and subject to applicable laws.

 

9


ARTICLE II

Mortgagor’s Covenants, Representations and Agreements

2.1 Title to Property . The Mortgagor hereby represents and warrants to the Mortgagee and each other Secured Party that the representations and warranties set forth in Section 5 of the Credit Agreement as they relate to the Mortgagor or to the Loan Documents to which the Mortgagor is a party, each of which representations and warranties is hereby incorporated herein by reference, are true and correct in all material respects, and the Mortgagee and each other Secured Party shall be entitled to rely on each of such representations and warranties as if fully set forth herein; provided that each reference in each such representation and warranty to the Borrower’s knowledge shall, for the purposes of this Section 2.1 , be deemed to be a reference to the Mortgagor’s knowledge.

2.2 Taxes and Fees; Maintenance of Premises . The Mortgagor agrees to comply with Subsections 7.3 , 7.5(a)(i) and 11.5 of the Credit Agreement, in each case in accordance with and to the extent provided therein.

2.3 Reimbursement . The Mortgagor agrees to comply with Subsection 7.5(b)(iii) of the Credit Agreement in accordance with and to the extent provided therein.

2.4 Additional Documents . The Mortgagor agrees to take any and all actions reasonably required to create and maintain the Lien of this Mortgage as against the Premises, and to protect and preserve the validity thereof, in each case in accordance with and to the extent provided in Subsection 7.9(d) of the Credit Agreement.

2.5 Restrictions on Sale or Encumbrance . The Mortgagor agrees to comply with Subsections 8.1 , 8.3 , 8.4 , 8.5 , 8.6 and [ 8.7 ] 3 of the Credit Agreement, in each case in accordance with and to the extent provided therein.

2.6 Fees and Expenses . The Mortgagor will promptly pay upon demand any and all reasonable costs and expenses of the Mortgagee, including, without limitation, reasonable attorneys’ fees actually incurred by the Mortgagee, to the extent required under the Credit Agreement.

2.7 Insurance .

(a) Types Required . The Mortgagor shall maintain insurance for the Premises as set forth in Subsections 7.5(a)(ii) through 7.5(a)(v) and Subsection 7.5(b)(i) of the Credit Agreement to the extent applicable.

(b) Insurance Generally . The Mortgagor agrees to comply with Subsection 7.5(b)(ii) of the Credit Agreement in accordance with and to the extent provided therein.

(c) Use of Proceeds . Insurance proceeds shall be applied or disbursed as set forth in Subsection 7.5 of the Credit Agreement to the extent and as applicable.

 

 

3   To be included only if the Mortgagor is the Borrower.

 

10


2.8 Eminent Domain . All proceeds or awards relating to condemnation or other taking of the Premises pursuant to the power of eminent domain shall be applied pursuant to Subsection 7.5 of the Credit Agreement to the extent and as applicable.

2.9 Releases and Waivers . The Mortgagor agrees that no release by the Mortgagee of any portion of the Premises, the Rents and Profits or the Leases, no subordination of lien, no forbearance on the part of the Mortgagee to collect on any Obligations, Loans, or any part thereof, no waiver of any right granted or remedy available to the Mortgagee and no action taken or not taken by the Mortgagee shall, except to the extent expressly released, in any way have the effect of releasing the Mortgagor from full responsibility to the Mortgagee for the complete discharge of each and every of the Mortgagor’s obligations hereunder.

2.10 Compliance with Law . The Mortgagor agrees to comply with Subsections 7.4 and 7.8 of the Credit Agreement, in each case in accordance with and to the extent provided therein.

2.11 Inspection . The Mortgagor agrees to comply with Subsection 7.6 of the Credit Agreement in accordance with and to the extent provided therein.

2.12 Security Agreement .

(a) This Mortgage is hereby made and declared to be a security agreement encumbering the Fixtures, and Mortgagor grants to the Mortgagee a security interest in the Fixtures. The Mortgagor grants to the Mortgagee all of the rights and remedies of a secured party under the laws of the state in which the Premises are located. A financing statement or statements reciting this Mortgage to be a security agreement with respect to the Fixtures may be appropriately filed by the Mortgagee.

(b) The Mortgagor warrants that, as of the date hereof, the name and address of the “Debtor” (which is the Mortgagor) are as set forth in the preamble of this Mortgage and a statement indicating the types, or describing the items, of collateral is set forth hereinabove. Mortgagor warrants that Mortgagor’s exact legal name is correctly set forth in the preamble of this Mortgage.

(c) This Mortgage will be filed in the real property records.

(d) As of the date hereof, the Mortgagor is a [                      ] organized under the laws of the State of [                      ], and the Mortgagor’s organizational identification number is [                      ].

2.13 Mortgage Recording Tax . The Mortgagor shall pay upon the recording hereof any and all mortgage recording taxes or any such similar fees and expenses due and payable to record this Mortgage in the appropriate records of the county in which the Premises is located.

 

11


ARTICLE III

Events of Default

An Event of Default shall exist and be continuing under the terms of this Mortgage upon the existence and during the continuance of an Event of Default under the terms of the Credit Agreement.

ARTICLE IV

Foreclosure

4.1 Acceleration of Obligations; Foreclosure . Upon the occurrence and during the continuance of an Event of Default, the entire balance of the Obligations, including all accrued interest, shall become due and payable to the extent such amounts become due and payable under the Credit Agreement. Provided an Event of Default has occurred and is continuing, upon failure to pay the Obligations or reimburse any other amounts due under the Loan Documents in full at any stated or accelerated maturity and in addition to all other remedies available to the Mortgagee at law or in equity, the Mortgagee may foreclose the lien of this Mortgage by judicial or non-judicial proceeding in a manner permitted by applicable law. The Mortgagor hereby waives, to the fullest extent permitted by law, any statutory right of redemption in connection with such foreclosure proceeding.

4.2 Proceeds of Sale . The proceeds of any foreclosure sale of the Premises, or any part thereof, will be distributed and applied in accordance with the terms and conditions of the Credit Agreement and the ABL/Term Loan Intercreditor Agreement (subject to any applicable provisions of applicable law).

ARTICLE V

Additional Rights and Remedies of the Mortgagee

5.1 Rights Upon an Event of Default . Upon the occurrence and during the continuance of an Event of Default, the Mortgagee, immediately and without additional notice and without liability therefor to the Mortgagor, except for gross negligence, willful misconduct, bad faith or unlawful conduct, may do or cause to be done any or all of the following to the extent permitted by applicable law, and subject to the terms of the ABL/Term Loan Intercreditor Agreement: (a) enter the Premises and take exclusive physical possession thereof; (b) invoke any legal remedies to dispossess the Mortgagor if the Mortgagor remains in possession of the Premises without the Mortgagee’s prior written consent; (c) exercise its right to collect the Rents and Profits; (d) generally, supervise, manage and contract with reference to the Premises as if the Mortgagee were equitable owner of the Premises, hold, lease, develop, operate or otherwise use the Premises or any part thereof upon such terms and conditions as the Mortgagee may deem reasonable under the circumstances (making such repairs, alterations, additions and improvements and taking other actions, from time to time, as the Mortgagee deems necessary or

 

12


desirable), and apply all rents and other amounts collected by the Mortgagee in connection therewith in accordance with the provisions hereof; (e) enter into contracts for the completion, repair and maintenance of the Improvements thereon; (f) institute proceedings for the complete foreclosure of the Mortgage, either by judicial action or by power of sale, in which case the Premises may be sold for cash or credit in one or more parcels; (g) expend Loan funds and any rents, income and profits derived from the Premises for the payment of any taxes, insurance premiums, assessments and charges for completion, repair and maintenance of the Improvements, preservation of the Lien of this Mortgage and satisfaction and fulfillment of any liabilities or obligations of the Mortgagor arising out of or in any way connected with the Premises whether or not such liabilities and obligations in any way affect, or may affect, the Lien of this Mortgage; (h) take such steps to protect and enforce the specific performance of any covenant, condition or agreement in this Mortgage, the Credit Agreement or the other Loan Documents, or to aid the execution of any power herein granted; and (i) exercise all other rights, remedies and recourses granted under the Loan Documents or otherwise available at law or in equity. At any foreclosure sale by virtue of any judicial proceedings, power of sale, or any other legal right, remedy or recourse, the title to and right of possession of any such property shall pass to the purchaser thereof, and to the fullest extent permitted by law, the Mortgagor shall be completely and irrevocably divested of all of its right, title, interest, claim, equity, equity of redemption, and demand whatsoever, either at law or in equity, in and to the property sold and such sale shall be a perpetual bar both at law and in equity against the Mortgagor, and against all other Persons claiming or to claim the property sold or any part thereof, by, through or under the Mortgagor. The Mortgagee or any of the Secured Parties may be a purchaser at such sale and if the Mortgagee is the highest bidder, the Mortgagee shall credit the portion of the purchase price that would be distributed to the Mortgagee against the indebtedness in lieu of paying cash. In the event this Mortgage is foreclosed by judicial action, appraisement of the Premises is waived to the extent permitted by applicable law. With respect to any notices required or permitted under the UCC to the extent applicable, the Mortgagor agrees that ten (10) days’ prior written notice shall be deemed commercially reasonable. The Mortgagor also agrees that any of the foregoing rights and remedies of the Mortgagee may be exercised at any time during the continuance of an Event of Default independently of the exercise of any other such rights and remedies, and the Mortgagee may continue to exercise any or all such rights and remedies until (i) the Event of Default is cured, (ii) foreclosure and the conveyance of the Premises to the high bidder, or (iii) the outstanding principal amount of the Loans, accrued and unpaid interest thereon (if any), and any other amounts then due and owing under the Credit Agreement and any other Loan Document to the Lenders or the Mortgagee are paid in full.

5.2 Appointment of Receiver . Upon the occurrence and during the continuance of an Event of Default, subject to the terms of the ABL/Term Loan Intercreditor Agreement, the Mortgagee shall be entitled, without additional notice and without regard to the adequacy of any security for the Obligations secured hereby, whether the same shall then be occupied as a homestead or not, or the solvency of any party bound for its payment, to make application for the appointment of a receiver to take possession of and to operate the Premises, and to collect the rents, issues, profits, and income thereof, all expenses of which shall be added to the Obligations and secured hereby. The receiver shall have all the rights and powers provided for under the laws of the state in which the Premises are located, including without limitation, the power to execute leases, and the power to collect the rents, sales proceeds, issues, profits and proceeds of the

 

13


Premises during the pendency of such foreclosure suit, as well as during any further times when the Mortgagor, its successors or assigns, except for the intervention of such receiver, would be entitled to collect such rents, sales proceeds, issues, proceeds and profits, and all other powers which may be necessary or are usual in such cases for the protection, possession, control, management and operation of the Premises during the whole of said period. Receiver’s fees, reasonable attorneys’ fees and costs incurred in connection with the appointment of a receiver pursuant to this Section 5.2 shall be secured by this Mortgage. Notwithstanding the appointment of any receiver, trustee or other custodian, subject to the ABL/Term Loan Intercreditor Agreement, the Mortgagee shall be entitled to retain possession and control of any cash or other instruments at the time held by or payable or deliverable under the terms of the Mortgage to the Mortgagee to the fullest extent permitted by law.

5.3 Waivers . No waiver of a prior Event of Default shall operate to waive any subsequent Event(s) of Default. All remedies provided in this Mortgage, the Credit Agreement or any of the other Loan Documents are cumulative and may, at the election of the Mortgagee, be exercised alternatively, successively, or in any manner and are in addition to any other rights provided by law.

5.4 Delivery of Possession After Foreclosure . In the event there is a foreclosure sale hereunder and at the time of such sale, the Mortgagor or the Mortgagor’s successors or assigns are occupying or using the Premises, or any part thereof, each and all immediately shall become the tenant of the purchaser at such sale, which tenancy shall be a tenancy from day to day, terminable at the will of either landlord or tenant, at a reasonable rental per day based upon the value of the property occupied, such rental to be due daily to the purchaser; and to the extent permitted by applicable law, the purchaser at such sale, notwithstanding any language herein apparently to the contrary, shall have the sole option to demand possession immediately following the sale or to permit the occupants to remain as tenants at will. In the event the tenant fails to surrender possession of said property upon demand, the purchaser shall be entitled to institute and maintain a summary action for possession of the property (such as an action for forcible detainer) in any court having jurisdiction.

5.5 Marshalling . The Mortgagor hereby waives, in the event of foreclosure of this Mortgage or the enforcement by the Mortgagee of any other rights and remedies hereunder, any right otherwise available in respect to marshalling of assets which secure any Loan and any other indebtedness secured hereby or to require the Mortgagee to pursue its remedies against any other such assets.

5.6 Protection of Premises . Upon the occurrence and during the continuance of an Event of Default, the Mortgagee may take such actions, including, but not limited to disbursements of such sums, as the Mortgagee in its sole but reasonable discretion deems necessary to protect the Mortgagee’s interest in the Premises.

 

14


ARTICLE VI

General Conditions

6.1 Terms . Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement. The singular used herein shall be deemed to include the plural; the masculine deemed to include the feminine and neuter; and the named parties deemed to include their successors and assigns to the extent permitted under the Credit Agreement. The term “Mortgagee” shall include the Collateral Agent on the date hereof and any successor Collateral Agent under the Loan Documents. The word “person” shall include any individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature, and the word “Premises” shall include any portion of the Premises or interest therein. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase without limitation.

6.2 Notices . All notices, requests and other communications shall be given in accordance with Subsection 11.2 of the Credit Agreement.

6.3 Severability . If any provision of this Mortgage is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

6.4 Headings . The captions and headings herein are inserted only as a matter of convenience and for reference and in no way define, limit, or describe the scope of this Mortgage nor the intent of any provision hereof.

6.5 Intercreditor Agreements .

(a) Notwithstanding anything to the contrary contained herein, the lien and security interest granted to the Mortgagee pursuant to this Mortgage and the exercise of any right or remedy by the Mortgagee hereunder are subject to the provisions of the applicable Intercreditor Agreements (as defined in the Guarantee and Collateral Agreement). The Mortgagee acknowledges and agrees that the relative priority of the Liens granted to the Mortgagee, the ABL Agent and any Additional Agent (as defined in the ABL/Term Loan Intercreditor Agreement) shall be determined solely pursuant to the applicable Intercreditor Agreements, and not by priority as a matter of law or otherwise.

(b) Subject to the provisions of the ABL/Term Loan Intercreditor Agreement, the lien of the Mortgage and security interest granted hereunder are expressly senior and superior to the lien and security interest granted (i) to the ABL Agent pursuant to the ABL Facility Documents (including that certain Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing, dated as of the date hereof, executed and delivered by the Mortgagor to the ABL Agent for the benefit of the ABL Secured Parties) and (ii) to any Additional ABL Agent pursuant to any Additional ABL Documents (as such terms are defined in the ABL/Term Loan Intercreditor Agreement).

 

15


6.6 Conflicting Terms .

(a) In the event of any conflict between the terms of this Mortgage and any of the Intercreditor Agreements, (i) the terms of the ABL/Term Loan Intercreditor Agreement shall govern and control any conflict between the Mortgagee, the ABL Agent and/or any Additional Agent, (ii) the terms of the Junior Lien Intercreditor Agreement shall govern and control any conflict between the Mortgagee and any Additional Term Agent (as defined in the ABL/Term Loan Intercreditor Agreement) and (iii) the terms of any Other Intercreditor Agreement shall govern and control any conflict between the Mortgagee and any other party to such Other Intercreditor Agreement, in each case other than with respect to Section 6.7 of this Mortgage. In the event of any such conflict, the Mortgagor may act (or omit to act) in accordance with any of the applicable Intercreditor Agreements, and shall not be in breach, violation or default of its obligations hereunder by reason of doing so.

(b) In the event of any conflict between the terms and provisions of the Credit Agreement and the terms and provisions of this Mortgage, the terms and provisions of the Credit Agreement shall control and supersede the provisions of this Mortgage with respect to such conflicts other than with respect to Section 6.7 of this Mortgage.

6.7 Governing Law . This Mortgage shall be governed by and construed in accordance with the internal law of the state in which the Premises are located.

6.8 Application of the Foreclosure Law . If any provision in this Mortgage shall be inconsistent with any provision of the foreclosure laws of the state in which the Premises are located, the provisions of such laws shall take precedence over the provisions of this Mortgage, but shall not invalidate or render unenforceable any other provision of this Mortgage that can be construed in a manner consistent with such laws.

6.9 Written Agreement . This Mortgage may not be amended, supplemented or otherwise modified except in accordance with Subsection 11.1 of the Credit Agreement. For the avoidance of doubt, it is understood and agreed that any amendment, amendment and restatement, waiver, supplement or other modification of or to the ABL/Term Loan Intercreditor Agreement that would have the effect, directly or indirectly, through any reference herein to the ABL/Term Loan Intercreditor Agreement or otherwise, of waiving, amending, supplementing or otherwise modifying this Mortgage, or any term or provision hereof, or any right or obligation of the Mortgagor hereunder or in respect hereof, shall not be given such effect except pursuant to a written instrument executed by the Mortgagor and the Mortgagee in accordance with this Section 6.9 .

6.10 Waiver of Jury Trial . Subsection 11.15 of the Credit Agreement is hereby incorporated by reference.

 

16


6.11 Request for Notice . The Mortgagor requests that a copy of any statutory notice of default and a copy of any statutory notice of sale hereunder be mailed to the Mortgagor in accordance with the requirements in Section 6.2 of this Mortgage.

6.12 Counterparts . This Mortgage may be executed by one or more of the parties on any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

6.13 Release . If any of the Premises shall be sold, transferred or otherwise disposed of by the Mortgagor in a transaction permitted by the Credit Agreement, then the Mortgagee, at the request of the Mortgagor, shall execute and deliver to the Mortgagor all releases or other documents reasonably necessary or desirable for the release of the Liens created hereby on the Premises. The Mortgagor shall deliver to the Mortgagee prior to the date of the proposed release, a written request for release.

6.14 [ Last Dollars Secured; Priority . This Mortgage secures only a portion of the Obligations owing or which may become owing by the Mortgagor to the Secured Parties. The parties agree that any payments or repayments of such Obligations shall be and be deemed to be applied first to the portion of the Obligations that is not secured hereby, it being the parties’ intent that the portion of the Obligations last remaining unpaid shall be secured hereby. If at any time this Mortgage shall secure less than all of the principal amount of the Obligations, it is expressly agreed that any repayments of the principal amount of the Obligations shall not reduce the amount of the lien of this Mortgage until the lien amount shall equal the principal amount of the Obligations outstanding.] 4

6.15 State Specific Provisions . In the event of any inconsistencies between this Section 6.15 and any of the other terms and provisions of this Mortgage, the terms and provisions of this Section 6.15 shall control and be binding.

(a) [                      ]

(b) [                      ]

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

4   To be included in mortgages for states with a mortgage recording tax, to the extent required.

 

17


IN WITNESS WHEREOF, the Mortgagor has executed this Mortgage as of the above written date.

 

MORTGAGOR :
[                      ]
By:  

 

  Name:  

 

  Title:  

 

[ADD STATE NOTARY FORM FOR MORTGAGOR] 5

 

 

5   Local counsel to confirm signature page and notary block which are acceptable for recording in the jurisdiction.


Exhibit A

Legal Description

(See Attached)


EXHIBIT D

to

CREDIT AGREEMENT

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

Reference is made to the Loan(s) held by the undersigned or, if the undersigned is not a Lender, to the Loan(s) held by the Lender of which the undersigned is a beneficiary or member, pursuant to the Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “ Administrative Agent ”) for the Lenders and as collateral agent for the Secured Parties (as defined therein). Unless otherwise defined herein, capitalized terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. The undersigned hereby certifies under penalty of perjury that:

 

  1. If the undersigned is a Lender, the undersigned is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) registered in its name, and if the undersigned is not a Lender, the undersigned is a beneficiary or member of a Lender that is a non-U.S. intermediary or flow-through entity for U.S. federal income tax purposes;

 

  2. If the undersigned is a Lender, the income from the Loan(s) held by the undersigned, and if the undersigned is not a Lender, the income from the Loan(s) held by the Lender of which the undersigned is a beneficiary or member, is not effectively connected with the conduct of a trade or business within the United States;

 

  3. The undersigned is not a bank (as such term is used in Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “ Code ”));

 

  4. The undersigned is not a 10-percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code; and

 

  5. The undersigned is not a controlled foreign corporation receiving interest from a related person within the meaning of Section 881(c)(3)(C) of the Code.

We have furnished you with a certificate of our non-U.S. person status on Internal Revenue Service Form W-8BEN. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall so inform the Borrower and the Administrative Agent in writing within thirty (30) days of such change and (2) the undersigned shall furnish the Borrower and the Administrative Agent, a properly completed and currently effective certificate in either the calendar year in which payment is to be made by the Borrower to the undersigned, or in either of the two calendar years preceding such payment.


EXHIBIT D

to

CREDIT AGREEMENT

Page 2

 

[NAME OF LENDER OR BENEFICIARY OR MEMBER OF LENDER]
By:  

 

  Name:
  Title:
[Address]

Dated:              , 201   

 

2


EXHIBIT E

to

CREDIT AGREEMENT

FORM OF ASSIGNMENT AND ACCEPTANCE

Reference is made to the Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “ Administrative Agent ”) for the Lenders and as collateral agent for the Secured Parties (as defined therein). Unless otherwise defined herein, capitalized terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

                     (the “ Assignor ”) and                      (the “ Assignee ”) agree as follows:

1. The Assignor hereby irrevocably sells and assigns to the Assignee without recourse to the Assignor, and the Assignee hereby irrevocably purchases and assumes from the Assignor without recourse to the Assignor, as of the Transfer Effective Date (as defined below), an interest (the “ Assigned Interest ”) as set forth in Schedule 1 in and to the Assignor’s rights and obligations under the Credit Agreement and the other Loan Documents with respect to those credit facilities provided for in the Credit Agreement as are set forth on Schedule 1 (individually, an “ Assigned Facility ”; collectively, the “ Assigned Facilities ”), in a principal amount for each Assigned Facility as set forth on Schedule 1 .

2. The Assignor (a) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Credit Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto, other than that it is the legal and beneficial owner of the Assigned Interest and that it has not created any adverse claim upon the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim; (b) makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower or any of its Subsidiaries or any other obligor or the performance or observance by the Borrower, any of its Subsidiaries or any other obligor of any of their respective obligations under the Credit Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto or thereto; and (c) attaches the Note(s), if any, held by it evidencing the Assigned Facilities [and requests that the Administrative Agent exchange such Note(s) for a new Note or Notes payable to the Assignee and (if the Assignor has retained any interest in the Assigned Facilities) a new Note or Notes payable to the Assignor in the respective amounts which reflect the assignment being made hereby (and after giving effect to any other assignments which have become effective on the Transfer Effective Date)]. 6

3. The Assignee (a) represents and warrants that it is legally authorized to enter into this Assignment and Acceptance; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements referred to in Subsection 5.1 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to

 

6  

Should only be requested when specifically required by the Assignee and/or the Assignor, as the case may be.


EXHIBIT E

to

CREDIT AGREEMENT

Page 2

 

enter into this Assignment and Acceptance; (c) agrees that it will, independently and without reliance upon the Assignor, any Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes each applicable Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are incidental thereto; (e) hereby affirms the acknowledgements and representations of such Assignee as a Lender contained in Subsection 10.5 of the Credit Agreement; and (f) agrees that it will be bound by the provisions of the Credit Agreement and will perform in accordance with the terms of the Credit Agreement all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender, including its obligations pursuant to Subsection 11.16 of the Credit Agreement, and, if it is organized under the laws of a jurisdiction outside the United States, its obligations pursuant to Subsection 4.11(b) of the Credit Agreement.

4. The effective date of this Assignment and Acceptance shall be [                      ], [                      ] (the “ Transfer Effective Date ”). Following the execution of this Assignment and Acceptance, it will be delivered to the Administrative Agent for acceptance by it and recording by the Administrative Agent pursuant to Subsection 11.6 of the Credit Agreement, effective as of the Transfer Effective Date (which shall not, unless otherwise agreed to by the Administrative Agent, be earlier than five Business Days after the date of such acceptance and recording by the Administrative Agent).

5. Upon such acceptance and recording, from and after the Transfer Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignee whether such amounts have accrued prior to the Transfer Effective Date or accrued subsequent to the Transfer Effective Date. The Assignor and the Assignee shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Transfer Effective Date or with respect to the making of this assignment directly between themselves.

6. From and after the Transfer Effective Date, (a) the Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and under the other Loan Documents and shall be bound by the provisions thereof and (b) the Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish its rights and be released from its obligations under the Credit Agreement, but shall nevertheless continue to be entitled to the benefits of (and bound by related obligations under) Subsections 4.10 , 4.11 , 4.12 , 4.13 and 11.5 thereof.

7. Notwithstanding any other provision hereof, if the consents of the Borrower and the Administrative Agent hereto are required under Subsection 11.6 of the Credit Agreement, this Assignment and Acceptance shall not be effective unless such consents shall have been obtained.

8. This Assignment and Acceptance shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to its principles or rules of conflict of laws to the extent such principles or rules are not mandatorily applicable by statute and would require or permit the application of the laws of another jurisdiction.

 

2


EXHIBIT E

to

CREDIT AGREEMENT

Page 3

 

IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Acceptance to be executed as of the date first above written by their respective duly authorized officers on Schedule 1 hereto.

 

3


SCHEDULE 1

to

EXHIBIT E

ASSIGNMENT AND ACCEPTANCE

Re: Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein).

Name of Assignor: Name of Assignee:

Transfer Effective Date of Assignment:

 

Credit Facility Assigned

   Aggregate Amount of Term
Loans for all Lenders
  Amount of Term Loans Assigned
        %   $             

 

[NAME OF ASSIGNEE]     [NAME OF ASSIGNOR]
By:  

 

    By:  

 

  Name:       Name:
  Title:       Title:


SCHEDULE 1

to

EXHIBIT E

Page 2

 

Accepted for recording in the Register :     Consented To :  

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

    [ENVISION HEALTHCARE CORPORATION  
By:  

 

    By:  

 

 
  Name:       Name:  
  Title:       Title:   ] 7
     

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

 
      By:  

 

 
        Name:  
        Title:  

 

 

7   Insert only as required by Subsection 11.6 of the Credit Agreement.

 

2


EXHIBIT F

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT G

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT H

to

CREDIT AGREEMENT

FORM OF SOLVENCY CERTIFICATE 8

Date: [               , 20      ]

To the Administrative Agent and each of the Lenders party to the Credit Agreement referred to below:

I, the undersigned, the Chief Financial Officer of Envision Healthcare Corporation, a Delaware Corporation (the “ Borrower ”), in that capacity only and not in my individual capacity (and without personal liability), do hereby certify as of the date hereof, and based upon ( i ) facts and circumstances as they exist as of the date hereof (and disclaiming any responsibility for changes in such facts and circumstances after the date hereof) and ( ii ) such materials and information as I have deemed relevant to the determination of the matters set forth in this certificate, that:

1. This certificate is the solvency certificate referred to in Section 4(j) of Amendment No. 7, dated as of December 1, 2016, to that certain Term Loan Credit Agreement, dated as of May 25, 2011 (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time) as amended and restated by the Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among the Borrower, the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “ Administrative Agent ”) for the Lenders and as collateral agent for the Secured Parties (as defined therein).

 

 

8   Note to Cahill : Solvency certificate has been updated to match the form attached to the Commitment Papers.


EXHIBIT H

Page 2

 

2. For purposes of this certificate, the terms below shall have the following definitions:

(a) “Fair Value”

The amount at which the assets (both tangible and intangible), in their entirety, of the Borrower and its Subsidiaries taken as a whole would change hands between a willing buyer and a willing seller, within a commercially reasonable period of time, each having reasonable knowledge of the relevant facts, with neither being under any compulsion to act.

(b) “Present Fair Salable Value”

The amount that could be obtained by an independent willing seller from an independent willing buyer if the assets of the Borrower and its Subsidiaries taken as a whole are sold with reasonable promptness in an arm’s-length transaction under present conditions for the sale of comparable business enterprises insofar as such conditions can be reasonably evaluated.

(c) “Stated Liabilities”

The recorded liabilities (including contingent liabilities that would be recorded in accordance with GAAP) of the Borrower and its Subsidiaries taken as a whole, as of the date hereof after giving effect to the consummation of the Transactions, determined in accordance with GAAP consistently applied.

(d) “Identified Contingent Liabilities”

The maximum estimated amount of liabilities reasonably likely to result from pending litigation, asserted claims and assessments, guaranties, uninsured risks and other contingent liabilities of the Borrower and its Subsidiaries taken as a whole after giving effect to the Transactions (including all fees and expenses related thereto but exclusive of such contingent liabilities to the extent reflected in Stated Liabilities), as and to the extent identified and explained in terms of their nature and estimated magnitude by responsible officers of the Borrower.

 

2


EXHIBIT H

Page 3

 

(e) “Will be able to pay their Stated Liabilities and Identified Contingent Liabilities as they mature”

For the period from the date hereof through the Maturity Date, the Borrower and its Subsidiaries taken as a whole will have sufficient assets and cash flow to pay their respective Stated Liabilities and Identified Contingent Liabilities as those liabilities mature or (in the case of contingent liabilities) otherwise become payable.

(f) “Do not have Unreasonably Small Capital”

For the period from the date hereof through the Maturity Date, the Borrower and its Subsidiaries taken as a whole after consummation of the Transactions is a going concern and has sufficient capital to ensure that it will continue to be a going concern for such period.

3. For purposes of this certificate, I, or officers of the Borrower under my direction and supervision, have performed the following procedures as of and for the periods set forth below.

(a) I have reviewed the financial statements (including the pro forma financial statements) referred to in Subsection 5.1 of the Credit Agreement (as amended by the Seventh Amendment).

(b) I have knowledge of and have reviewed to my satisfaction the Credit Agreement.

(c) As chief financial officer of the Borrower, I am familiar with the financial condition of the Borrower and its Subsidiaries.

4. Based on and subject to the foregoing, I hereby certify on behalf of the Borrower that after giving effect to the consummation of the Transactions, it is my opinion that: ( i ) the Fair Value and Present Fair Salable Value of the assets of the Borrower and its Subsidiaries taken as a whole exceed their Stated Liabilities and Identified Contingent Liabilities;

 

3


EXHIBIT H

Page 4

 

( ii ) the Borrower and its Subsidiaries taken as a whole do not have Unreasonably Small Capital; and ( iii ) the Borrower and its Subsidiaries taken as a whole will be able to pay their Stated Liabilities and Identified Contingent Liabilities as they mature.

* * *

 

4


IN WITNESS WHEREOF, the Borrower has caused this certificate to be executed on its behalf by its Chief Financial Officer as of the date first written above.

 

Envision Healthcare Corporation
By:  

 

Name:   Claire M. Gulmi
Title:   Chief Financial Officer


EXHIBIT I-1

to

CREDIT AGREEMENT

FORM OF INCREASE SUPPLEMENT

INCREASE SUPPLEMENT, dated as of [                      ], to the Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein). Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

2. Pursuant to Subsection 2.6(c) of the Credit Agreement, the Borrower hereby proposes to increase (the “ Increase ”) the aggregate Existing Term Loan commitments from [$          ] to [$          ].

3. Each of the following Lenders (each, an “ Increasing Lender ”) has been invited by the Borrower, and has agreed, subject to the terms hereof, to increase its Existing Term Loan commitment as follows:

 

Name of Lender

   Initial Term Loan
Commitment
     [          Tranche] 9
Supplemental Term Loan
Commitment

(after giving effect hereto)
 
   $                    $                
   $                    $                
   $                    $                

4. Pursuant to Subsection 2.6 of the Credit Agreement, by execution and delivery of this Increase Supplement, each of the Increasing Lenders agrees and acknowledges that it shall have an aggregate Initial Term Loan Commitment and Supplemental Term Loan Commitment in the amount equal to the amount set forth above next to its name.

[Remainder of Page Intentionally Left Blank]

 

 

9   Indicate relevant Tranche.


IN WITNESS WHEREOF, the parties hereto have caused this INCREASE SUPPLEMENT to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

The Increasing Lender:

 

[INCREASING LENDER]
By:  

 

  Name:
  Title:
ENVISION HEALTHCARE CORPORATION ,
as Borrower
By:  

 

  Name:
  Title:

 

2


EXHIBIT I-2

to

CREDIT AGREEMENT

FORM OF LENDER JOINDER AGREEMENT

THIS LENDER JOINDER AGREEMENT, dated as of [                      ] (this “Lender Joinder Agreement”), by and among the bank or financial institution party hereto (the “Additional Commitment Lender”), ENVISION HEALTHCARE CORPORATION, a Delaware limited liability company (together with its successors and assigns, the “Borrower”) and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders and as collateral agent for the Secured Parties. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

RECITALS:

WHEREAS, reference is made to the Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein); and

WHEREAS, subject to the terms and conditions of the Credit Agreement, the Borrower may add Supplemental Term Loan Commitments of one or more Additional Commitment Lenders by entering into one or more Lender Joinder Agreements provided that after giving effect thereto the aggregate amount of all Supplemental Term Loan Commitments shall not exceed the Maximum Incremental Facilities Amount.

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

1. The Additional Commitment Lender party hereto hereby agrees to commit to provide its respective Commitments as set forth on Schedule A annexed hereto, on the terms and subject to the conditions set forth below:

Such Additional Commitment Lender (a) represents and warrants that it is legally authorized to enter into this Lender Joinder Agreement; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements referred to in Subsection 5.1 of the Credit Agreement and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Lender Joinder Agreement; (c) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes each applicable Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to each such Agent, as applicable, by the terms thereof, together with such powers as are incidental thereto; (e) hereby affirms the acknowledgements and representations of such Additional Commitment Lender as a Lender contained in Subsection 10.5 of the Credit Agreement; and (f) agrees that it will be bound by the provisions of the Credit Agreement and will


perform in accordance with the terms of the Credit Agreement all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender, including its obligations pursuant to Subsection 11.16 of the Credit Agreement, and, if it is organized under the laws of a jurisdiction outside the United States, its obligations pursuant to Subsection 4.11(b) of the Credit Agreement.

 

2. The Additional Commitment Lender hereby agrees to make its Supplemental Term Loan Commitment on the following terms and conditions on the Effective Date set forth on Schedule A pertaining to such Additional Commitment Lender attached hereto:

 

  1. Additional Commitment Lender to Be a Lender . Such Additional Commitment Lender acknowledges and agrees that upon its execution of this Lender Joinder Agreement that such Additional Commitment Lender shall on and as of the Effective Date set forth on Schedule A become a “Lender” with respect to the Term Loan Tranche indicated on Schedule A , under, and for all purposes of, the Credit Agreement and the other Loan Documents, shall be subject to and bound by the terms thereof, shall perform all the obligations of and shall have all rights of a Lender thereunder, and shall make available such amount to fund its ratable share of outstanding Loans on the Effective Date as the Administrative Agent may instruct.

 

  2. Certain Delivery Requirements . Such Additional Commitment Lender has delivered or shall deliver herewith to the Borrower and the Administrative Agent such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such Additional Commitment Lender may be required to deliver to the Borrower and the Administrative Agent pursuant to Subsection 4.11 of the Credit Agreement.

 

  3. Credit Agreement Governs . Except as set forth in this Lender Joinder Agreement, Supplemental Term Loan Commitments shall otherwise be subject to the provisions of the Credit Agreement and the other Loan Documents.

 

  4. Notice . For purposes of the Credit Agreement, the initial notice address of such Additional Commitment Lender shall be as set forth below its signature below.

 

  5. Recordation of the New Loans . Upon execution, delivery and effectiveness hereof, the Administrative Agent will record the Supplemental Term Loan Commitments made by such Additional Commitment Lender in the Register.

 

  6. Amendment, Modification and Waiver . This Lender Joinder Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

 

  7. Entire Agreement . This Lender Joinder Agreement, the Credit Agreement and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

  8.

GOVERNING LAW . THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN


 

ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

  9. Severability . Any provision of this Lender Joinder Agreement which 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 any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

  10. Counterparts . This Lender Joinder Agreement may be executed in counterparts, including by facsimile or other electronic transmission, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

[Remainder of Page Intentionally Left Blank]


IN WITNESS WHEREOF , each of the undersigned has caused its duly authorized officer to execute and deliver this Lender Joinder Agreement as of the date first above written.

 

[NAME OF ADDITIONAL COMMITMENT LENDER]
By:  

 

  Name:
  Title:
Notice Address:
Attention:
Telephone:
Facsimile:
JPMORGAN CHASE BANK, N.A., as Administrative Agent
By:  

 

  Name:
  Title:

 

ENVISION HEALTHCARE CORPORATION.

as Borrower

By:  

 

  Name:
  Title:


SCHEDULE A

to

EXHIBIT I-2

SUPPLEMENTAL TERM LOAN COMMITMENTS

 

Additional

Commitment

Lender

   [           Tranche] 2
Supplemental Term Loan
Commitment
   Principal Amount
Committed
   Aggregate Amount of
All Supplemental Term
Loan Commitments
   Maturity Date
      $                 $                

Effective Date of Lender Joinder Agreement:                                  

 

 

2   Indicate relevant Tranche.


EXHIBIT J-1

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT J-2

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT J-3

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT J-4

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT J-5

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT J-6

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT J-7

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT K

to

CREDIT AGREEMENT

[RESERVED]


EXHIBIT L

to

CREDIT AGREEMENT

FORM OF JUNIOR LIEN INTERCREDITOR AGREEMENT

[See attached.]


EXHIBIT L

[FORM OF]

JUNIOR LIEN INTERCREDITOR AGREEMENT

by and between

[                ]

as Term Loan Agent,

and

[                ]

as Initial Junior Priority Agent

Dated as of [                ], 20[    ]


TABLE OF CONTENTS

 

         Page  
ARTICLE I   
DEFINITIONS   

Section 1.1

  UCC Definitions      2   

Section 1.2

  Other Definitions      2   

Section 1.3

  Rules of Construction      19   
ARTICLE II   
LIEN PRIORITY   

Section 2.1

  Agreement to Subordinate      20   

Section 2.2

  Waiver of Right to Contest Liens      22   

Section 2.3

  Remedies Standstill      23   

Section 2.4

  Exercise of Rights      24   

Section 2.5

  [RESERVED]      25   

Section 2.6

  Waiver of Marshalling      25   
ARTICLE III   
ACTIONS OF THE PARTIES   

Section 3.1

  Certain Actions Permitted      26   

Section 3.2

  Agent for Perfection      26   

Section 3.3

  Sharing of Information and Access      26   

Section 3.4

  Insurance      27   

Section 3.5

  No Additional Rights for the Credit Parties Hereunder      27   

Section 3.6

  Actions upon Breach      27   
ARTICLE IV   
APPLICATION OF PROCEEDS   

Section 4.1

  Application of Proceeds      28   

Section 4.2

  Specific Performance      29   
ARTICLE V   
INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS   

Section 5.1

  Notice of Acceptance and Other Waivers      30   

Section 5.2

  Modifications to Senior Priority Documents and Junior Priority Documents      30   

Section 5.3

  Reinstatement and Continuation of Agreement      34   


         Page  
ARTICLE VI   
INSOLVENCY PROCEEDINGS   

Section 6.1

  Liens Granted in Insolvency Proceedings   

Section 6.2

  Relief from Stay      34   

Section 6.3

  No Contest      35   

Section 6.4

  Sales      35   

Section 6.5

  Separate Grants of Security and Separate Classification      36   

Section 6.6

  Enforceability      36   

Section 6.7

  Senior Priority Obligations Unconditional      36   

Section 6.8

  Junior Priority Obligations Unconditional      37   

Section 6.9

  Adequate Protection      37   
ARTICLE VII   
MISCELLANEOUS   

Section 7.1

  Rights of Subrogation      38   

Section 7.2

  Further Assurances      38   

Section 7.3

  Representations      38   

Section 7.4

  Amendments      38   

Section 7.5

  Addresses for Notices      39   

Section 7.6

  No Waiver, Remedies      40   

Section 7.7

  Continuing Agreement, Transfer of Secured Obligations      40   

Section 7.8

  Governing Law; Entire Agreement      40   

Section 7.9

  Counterparts      40   

Section 7.10

  No Third-Party Beneficiaries      40   

Section 7.11

  Designation of Additional Indebtedness; Joinder of Additional Agents      41   

Section 7.12

  Senior Priority Representative; Notice of Senior Priority Representative Change      42   

Section 7.13

  Term Loan Collateral Representative      42   

Section 7.14

  Provisions Solely to Define Relative Rights      42   

Section 7.15

  Headings      43   

Section 7.16

  Severability      43   

Section 7.17

  Attorneys’ Fees      43   

Section 7.18

  VENUE; JURY TRIAL WAIVER      43   

Section 7.19

  Intercreditor Agreement      44   

Section 7.20

  No Warranties or Liability      44   

Section 7.21

  Conflicts      44   

Section 7.22

  Information Concerning Financial Condition of the Credit Parties      44   

EXHIBITS:

 

Exhibit A    Additional Indebtedness Designation
Exhibit B    Additional Indebtedness Joinder
Exhibit C    Joinder of Term Loan Credit Agreement or Initial Junior Priority Credit Facility

 

-ii-


JUNIOR LIEN INTERCREDITOR AGREEMENT

This JUNIOR LIEN INTERCREDITOR AGREEMENT (as amended, restated, supplemented, waived or otherwise modified from time to time pursuant to the terms hereof, this “ Agreement ”) is entered into as of [                ], 20[    ] between [                ], in its capacity as collateral agent (together with its successors and assigns in such capacity, from time to time, and as further defined herein, the “ Term Loan Agent ”) for the Term Loan Secured Parties referred to below and [                ], in its capacity as collateral agent (together with its successors and assigns in such capacity, from time to time, and as further defined herein, the “ Initial Junior Priority Agent ”) for the Initial Junior Priority Secured Parties. Capitalized terms defined in Article I hereof are used in this Agreement as so defined.

RECITALS

A. Pursuant to the Original Term Loan Credit Agreement, the Term Loan Credit Agreement Lenders have agreed to make certain loans and other financial accommodations to or for the benefit of the Company.

B. Pursuant to the Term Loan Guaranties, the Term Loan Guarantors have agreed to guarantee the payment and performance of the Term Loan Borrower’s obligations under the Term Loan Documents.

C. Pursuant to the Original Initial Junior Priority Credit Facility, the Initial Junior Priority Secured Creditors have agreed to make certain extensions of credit to or for the benefit of the Initial Junior Priority Borrower.

D. Pursuant to the Initial Junior Priority Guaranties, the Initial Junior Priority Guarantors have agreed to guarantee the payment and performance of the Initial Junior Priority Borrower’s obligations under the Initial Junior Priority Documents.

E. The Term Loan Agent (on behalf of the Term Loan Secured Parties) is party to the Base Intercreditor Agreement, and the Initial Junior Priority Agent (on behalf of the Initial Junior Priority Secured Parties) is or concurrently herewith will become party thereto.

F. Pursuant to the Base Intercreditor Agreement and this Agreement, the Company may, from time to time, designate certain additional Indebtedness of any Credit Party as “Additional Indebtedness” (i) by executing and delivering an “Additional Indebtedness Designation” under the Base Intercreditor Agreement, by designating such additional Indebtedness as “Additional Term Indebtedness” thereunder, and by complying with the procedures set forth in Section 7.11 thereof, and (ii) by executing and delivering an Additional Indebtedness Designation hereunder and by complying with the procedures set forth in Section 7.11 hereof, and the holders of such Additional Indebtedness and any other applicable Additional Credit Facility Secured Party shall thereafter constitute Senior Priority Creditors or Junior Priority Creditors (as so designated by the Company), as the case may be, and any Additional Agent therefor shall thereafter constitute a Senior Priority Agent or Junior Priority Agent (as so designated by the Company), as the case may be, for all purposes under this Agreement.

G. Each of the Term Loan Agent (on behalf of the Term Loan Secured Parties) and the Initial Junior Priority Agent (on behalf of the Initial Junior Priority Secured Parties) and, by their acknowledgment hereof, the Term Loan Credit Parties and the Initial Junior Credit Parties, desire to agree to the relative priority of Liens on the Collateral and certain other rights, priorities and interests as provided herein.


NOW THEREFORE , in consideration of the foregoing and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 UCC Definitions . The following terms which are defined in the Uniform Commercial Code are used herein as so defined: Accounts, Chattel Paper, Commercial Tort Claims, Commodity Accounts, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Financial Assets, Instruments, Inventory, Investment Property, Letter-of-Credit Rights, Money, Payment Intangibles, Promissory Notes, Records, Security, Securities Accounts, Security Entitlements, Supporting Obligations, and Tangible Chattel Paper.

Section 1.2 Other Definitions . As used in this Agreement, the following terms shall have the meanings set forth below:

ABL Agent ” shall have the meaning assigned thereto in the Base Intercreditor Agreement.

ABL Priority Collateral ” shall have the meaning assigned thereto in the Base Intercreditor Agreement.

Additional Agent ” shall mean any one or more administrative agents, collateral agents, security agents, trustees or other representatives for or of any one or more Additional Credit Facility Secured Parties, any Additional Bank Products Provider or any Additional Hedging Provider, and shall include any successor thereto, as well as any Person designated as an “Agent” under any Additional Credit Facility.

Additional Bank Products Affiliate ” shall mean any Person who (a) has entered into a Bank Products Agreement with any Additional Credit Party with the obligations of such Additional Credit Party thereunder being secured by one or more Additional Collateral Documents, (b) was an Additional Credit Facility Lender or an Affiliate of an Additional Credit Facility Lender on the date hereof, or at the time of entry into such Bank Products Agreement, or at the time of the designation referred to in the following clause (c), and (c) has been designated by the Company in accordance with the terms of one or more Additional Collateral Documents (provided that no Person shall, with respect to any Bank Products Agreement, be at any time a Bank Products Affiliate hereunder with respect to more than one Credit Facility).

Additional Bank Products Provider ” shall mean any Person (other than an Additional Bank Products Affiliate) that has entered into a Bank Products Agreement with an Additional Credit Party with the obligations of such Additional Credit Party thereunder being secured by one or more Additional Collateral Documents, as designated by the Company in accordance with the terms of one or more Additional Collateral Documents (provided that no Person shall, with respect to any Bank Products Agreement, be at any time a Bank Products Provider hereunder with respect to more than one Credit Facility).

Additional Borrower ” shall mean any Additional Credit Party that incurs or issues Additional Indebtedness under any Additional Credit Facility, together with its successors and assigns.

Additional Collateral Documents ” shall mean all “Security Documents” as defined in any Additional Credit Facility, and in any event shall include all security agreements, mortgages, deeds of trust, pledges and other collateral documents executed and delivered in connection with any Additional Credit Facility, and any other agreement, document or instrument pursuant to which a Lien is granted securing any Additional Obligations or under which rights or remedies with respect to such Liens are governed, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time.

 

-2-


Additional Credit Facilities ” shall mean (a) any one or more agreements, instruments and documents under which any Additional Indebtedness is or may be incurred, including without limitation any credit agreements, loan agreements, indentures, guarantees or other financing agreements, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time, together with (b) if designated by the Company, any other agreement extending the maturity of, consolidating, restructuring, refunding, replacing or refinancing all or any portion of the Additional Obligations, whether by the same or any other lender, debtholder or other creditor or group of lenders, debtholders or other creditors, or the same or any other agent, trustee or representative therefor, or otherwise, and whether or not increasing the amount of any Indebtedness that may be incurred thereunder.

Additional Credit Facility Lenders ” shall mean one or more holders of Additional Indebtedness (or commitments therefor) that is or may be incurred under one or more Additional Credit Facilities, together with their successors, assigns and transferees, as well as any Person designated as an “Additional Credit Facility Lender” under any Additional Credit Facility.

Additional Credit Facility Secured Parties ” shall mean all Additional Agents, one or more Additional Credit Facility Lenders and shall include all Additional Bank Products Affiliates, Additional Hedging Affiliates, Additional Bank Products Providers and Additional Hedging Providers and all successors, assigns, transferees and replacements thereof, as well as any Person designated as an “Additional Credit Facility Secured Party” under any Additional Credit Facility; and with respect to any Additional Agent, shall mean the Additional Credit Facility Secured Party represented by such Additional Agent.

Additional Credit Party ” shall mean the Company, each direct or indirect Subsidiary of the Company or any of its Affiliates that is or becomes a party to any Additional Document, and any other Person who becomes a guarantor under any of the Additional Guaranties.

Additional Documents ” shall mean any Additional Credit Facilities, any Additional Guaranties, any Additional Collateral Documents, any Bank Products Agreements between any Credit Party and any Additional Bank Products Affiliate or Additional Bank Products Provider, any Hedging Agreements between any Credit Party and any Additional Hedging Affiliate or Additional Hedging Provider, those other ancillary agreements as to which any Additional Secured Party is a party or a beneficiary and all other agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any Credit Party or any of its respective Subsidiaries or Affiliates, and delivered to any Additional Agent, in connection with any of the foregoing or any Additional Credit Facility, including any intercreditor or joinder agreement among any of the Additional Credit Facility Secured Parties or among any of the Term Loan Secured Parties and Additional Credit Facility Secured Parties, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time.

Additional Effective Date ” shall have the meaning set forth in Section 7.11(b).

Additional Guaranties ” shall mean any one or more guarantees of any Additional Obligations of any Additional Credit Party by any other Additional Credit Party in favor of any Additional Credit Facility Secured Party, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time.

Additional Guarantor ” shall mean any Additional Credit Party that at any time has provided an Additional Guaranty.

 

-3-


Additional Hedging Affiliate ” shall mean any Person who (a) has entered into a Hedging Agreement with any Additional Credit Party with the obligations of such Additional Credit Party thereunder being secured by one or more Additional Collateral Documents, (b) was an Additional Credit Facility Lender or an Affiliate of an Additional Credit Facility Lender on the date hereof, or at the time of entry into such Hedging Agreement, or at the time of the designation referred to in the following clause (c), and (c) has been designated by the Company in accordance with the terms of one or more Additional Collateral Documents (provided that no Person shall, with respect to any Hedging Agreement, be at any time a Hedging Affiliate hereunder with respect to more than one Credit Facility).

Additional Hedging Provider ” shall mean any Person (other than an Additional Hedging Affiliate) that has entered into a Hedging Agreement with an Additional Credit Party with the obligations of such Additional Credit Party thereunder being secured by one or more Additional Collateral Documents, as designated by the Company in accordance with the terms of one or more Additional Collateral Documents (provided that no Person shall, with respect to any Hedging Agreement, be at any time a Hedging Provider hereunder with respect to more than one Credit Facility).

Additional Indebtedness ” shall mean any Additional Specified Indebtedness that (1) is secured by a Lien on Collateral and is permitted to be so secured by:

(a) prior to the Discharge of Term Loan Obligations, Subsection 8.6 of the Original Term Loan Credit Agreement (if the Original Term Loan Credit Agreement is then in effect) or the corresponding negative covenant restricting Liens contained in any other Term Loan Credit Agreement then in effect if the Original Term Loan Credit Agreement is not then in effect (which covenant is designated in such Term Loan Credit Agreement as applicable for purposes of this definition);

(b) prior to the Discharge of Initial Junior Priority Obligations, Section [    ] 1 of the Original Initial Junior Priority Credit Facility (if the Original Initial Junior Priority Credit Facility is then in effect) or the corresponding negative covenant restricting Liens contained in any other Initial Junior Priority Credit Facility then in effect (which covenant is designated in such Initial Junior Priority Credit Facility as applicable for purposes of this definition); and

(c) prior to the Discharge of Additional Obligations, any negative covenant restricting Liens contained in any applicable Additional Credit Facility then in effect (which covenant is designated in such Additional Credit Facility as applicable for purposes of this definition); and

(2) is designated (a) as “Additional Term Indebtedness” by the Company in compliance with the procedures set forth in Section 7.11 of the Base Intercreditor Agreement and (b) as “Additional Indebtedness” by the Company pursuant to an Additional Indebtedness Designation and in compliance with the procedures set forth in Section 7.11.

As used in this definition of “Additional Indebtedness”, the term “Lien” shall have the meaning set forth (x) for purposes of the preceding clause (1)(a), prior to the Discharge of Term Loan Obligations, in the Original Term Loan Credit Agreement (if the Original Term Loan Credit Agreement is then in

 

 

1  

Insert the section number of the negative covenant restricting Liens in the Original Initial Junior Priority Credit Facility.

 

-4-


effect), or in any other Term Loan Credit Agreement then in effect (if the Original Term Loan Credit Agreement is not then in effect), (y) for purposes of the preceding clause (1)(b), prior to the Discharge of Initial Junior Priority Obligations, in the Original Junior Priority Credit Facility (if the Original Junior Priority Credit Facility is then in effect), or in any other Junior Priority Credit Facility then in effect (if the Original Junior Priority Credit Facility is not then in effect), and (z) for purposes of the preceding clause (1)(c), prior to the Discharge of Additional Obligations, in the applicable Additional Credit Facility then in effect.

Additional Indebtedness Designation ” shall mean a certificate of the Company with respect to Additional Indebtedness, substantially in the form of Exhibit A attached hereto.

Additional Indebtedness Joinder ” shall mean a joinder agreement executed by one or more Additional Agents in respect of any Additional Indebtedness subject to an Additional Indebtedness Designation on behalf of one or more Additional Credit Facility Secured Parties in respect of such Additional Indebtedness, substantially in the form of Exhibit B attached hereto.

Additional Obligations ” shall mean any and all loans and all other obligations, liabilities and indebtedness of every kind, nature and description, whether now existing or hereafter arising, whether arising before, during or after the commencement of any case with respect to any Additional Credit Party under the Bankruptcy Code or any other Insolvency Proceeding, owing by each Additional Credit Party from time to time to any Additional Agent, any Additional Credit Facility Secured Parties or any of them, including any Additional Bank Products Affiliates, Additional Hedging Affiliates, Additional Bank Products Provider or Additional Hedging Provider, under any Additional Document, whether for principal, interest (including interest and fees which, but for the filing of a petition in bankruptcy with respect to such Additional Credit Party, would have accrued on any Additional Obligation, whether or not a claim is allowed against such Additional Credit Party for such interest and fees in the related bankruptcy proceeding), reimbursement of amounts drawn under letters of credit, payments for early termination of Hedging Agreements, fees, expenses, indemnification or otherwise, and all other amounts owing or due under the terms of the Additional Documents, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time.

Additional Specified Indebtedness ” shall mean any Indebtedness that is or may from time to time be incurred by any Credit Party in compliance with:

(a) prior to the Discharge of Term Loan Obligations, Subsection 8.1 of the Original Term Loan Credit Agreement (if the Original Term Loan Credit Agreement is then in effect) or the corresponding negative covenant restricting Indebtedness contained in any other Term Loan Credit Agreement then in effect if the Original Term Loan Credit Agreement is not then in effect (which covenant is designated in such Term Loan Credit Agreement as applicable for purposes of this definition);

(b) prior to the Discharge of Initial Junior Priority Obligations, Section [    ] 2 of the Original Initial Junior Priority Credit Facility (if the Original Initial Junior Priority Credit Facility is then in effect) or the corresponding negative covenant restricting Indebtedness contained in any other Initial Junior Priority Credit Facility then in effect (which covenant is designated in such Initial Junior Priority Credit Facility as applicable for purposes of this definition); and

 

 

2   Insert the section number of the negative covenant restricting Indebtedness in the Original Initial Junior Priority Credit Facility.

 

-5-


(c) prior to the Discharge of Additional Obligations, any negative covenant restricting Indebtedness contained in any Additional Credit Facility then in effect (which covenant is designated in such Additional Credit Facility as applicable for purposes of this definition).

As used in this definition of “Additional Specified Indebtedness”, the term “Indebtedness” shall have the meaning set forth (x) for purposes of the preceding clause (a), prior to the Discharge of Term Loan Obligations, in the Original Term Loan Credit Agreement (if the Original Term Loan Credit Agreement is then in effect), or in any other Term Loan Credit Agreement then in effect (if the Original Term Loan Credit Agreement is not then in effect), (y) for purposes of the preceding clause (b), prior to the Discharge of Initial Junior Priority Obligations, in the Original Junior Priority Credit Facility (if the Original Junior Priority Credit Facility is then in effect), or in any other Junior Priority Credit Facility then in effect (if the Original Junior Priority Credit Facility is not then in effect), and (z) for purposes of the preceding clause (c), prior to the Discharge of Additional Obligations, in the applicable Additional Credit Facility then in effect. In the event that any Indebtedness as defined in any such Credit Document shall not be Indebtedness as defined in any other such Credit Document, but is or may be incurred in compliance with such other Credit Document, such Indebtedness shall constitute Additional Specified Indebtedness for the purposes of such other Credit Document.

Affiliate ” shall mean with respect to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” of a Person shall mean the power, directly or indirectly, either to (a) vote 20% or more of the securities having ordinary voting power for the election of directors of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

Agent ” shall mean any Senior Priority Agent or Junior Priority Agent.

Agreement ” shall have the meaning assigned thereto in the Preamble hereto.

Bank Products Affiliate ” shall mean any Term Loan Bank Products Affiliate, any Initial Junior Priority Bank Products Affiliate or any Additional Bank Products Affiliate, as applicable.

Bank Products Agreement ” shall mean any agreement pursuant to which a bank or other financial institution agrees to provide (a) treasury services, (b) credit card, merchant card, purchasing card or stored value card services (including, without limitation, processing and other administrative services with respect thereto), (c) cash management services (including, without limitation, controlled disbursements, credit cards, credit card processing services, automated clearinghouse and other electronic funds transfer transactions, return items, netting, overdrafts, depository, lockbox, stop payment, information reporting, wire transfer and interstate depository network services) and (d) other banking products or services as may be requested by any Credit Party (other than letters of credit and other than loans except indebtedness arising from services described in items (a) through (c) of this definition).

Bank Products Provider ” shall mean any Term Loan Bank Products Provider, any Initial Junior Priority Bank Products Provider or any Additional Bank Products Provider, as applicable.

Bankruptcy Code ” shall mean title 11 of the United States Code.

Base Intercreditor Agreement ” shall mean the ABL/Term Loan Intercreditor Agreement, dated as of May 25, 2011, by and among Deutsche Bank AG New York Branch, as ABL Agent, Deutsche Bank AG New York Branch, as Term Loan Agent, and any additional agents party thereto from time to time, as the same may be amended, supplemented, waived or otherwise modified from time to time.

 

-6-


Borrower ” shall mean any of the Term Loan Borrower, the Initial Junior Priority Borrower and any Additional Borrower.

Business Day ” shall mean a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to close.

Capital Stock ” shall mean any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants or options to purchase any of the foregoing.

Cash Collateral ” shall mean any Collateral consisting of Money or Cash Equivalents, any Security Entitlement and any Financial Assets.

Cash Equivalents ” shall mean (1) money and (2) (a) securities issued or fully guaranteed or insured by the United States government or any agency or instrumentality thereof, (b) time deposits, certificates of deposit or bankers’ acceptances of (i) any ABL Secured Party (as defined under the Base Intercreditor Agreement), any Term Loan Secured Party (as defined under the Base Intercreditor Agreement) or any Additional Secured Party (as defined under the Base Intercreditor Agreement) or any Affiliate thereof or (ii) any commercial bank having capital and surplus in excess of $500,000,000 (or the foreign currency equivalent thereof as of the date of such investment) and the commercial paper of the holding company of which is rated at least A-2 or the equivalent thereof by Standard & Poor’s Ratings Group (a division of The McGraw Hill Companies Inc.) or any successor rating agency (“ S&P ”) or at least P-2 or the equivalent thereof by Moody’s Investors Service, Inc. or any successor rating agency (“ Moody’s ”) (or if at such time neither is issuing ratings, then a comparable rating of such other nationally recognized rating agency as shall be approved by any Agent (as defined under the Base Intercreditor Agreement) (other than any Designated Agent), in each case, in its reasonable judgment), (or, if there is no continuing Agent (as defined under the Base Intercreditor Agreement) other than any Designated Agent, as designated by the Company)), (c) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (a) and (b) above entered into with any financial institution meeting the qualifications specified in clause (b) above, (d) commercial paper rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s (or if at such time neither is issuing ratings, then a comparable rating of such other nationally recognized rating agency as shall be approved by any Agent (as defined under the Base Intercreditor Agreement) (other than any Designated Agent), in each case, in its reasonable judgment (or, if there is no continuing Agent other than any Designated Agent, as designated by the Company)), (e) investments in money market funds complying with the risk limiting conditions of Rule 2a-7 or any successor rule of the Securities and Exchange Commission under the Investment Company Act of 1940, and (f) investments similar to any of the foregoing denominated in foreign currencies approved by the board of directors of the Company, in each case provided in clauses (a), (b), (d) and (to the extent relating to any such clause) (f) above only, maturing within twelve months after the date of acquisition.

Collateral ” shall mean all Property now owned or hereafter acquired by any Borrower or any Guarantor in or upon which a Lien is granted or purported to be granted to any Agent under any of the Term Loan Collateral Documents, the Initial Junior Priority Collateral Documents or the Additional Collateral Documents, together with all rents, issues, profits, products, and Proceeds thereof to the extent a Lien is granted or purported to be granted therein to the applicable Agent by such applicable documents.

 

-7-


Commodities Agreement ” shall mean, in respect of a Person, any commodity futures contract, forward contract, option or similar agreement or arrangement (including derivative agreements or arrangements), as to which such Person is a party or beneficiary.

Company ” shall mean Envision Healthcare Corporation, a Delaware corporation, and any successor in interest thereto.

Control Collateral ” shall mean any Collateral consisting of any certificated Security, Investment Property, Deposit Account, Instruments, Chattel Paper and any other Collateral as to which a Lien may be perfected through possession or control by the secured party, or any agent therefor.

Credit Documents ” shall mean the Term Loan Documents, the Initial Junior Priority Documents and any Additional Documents.

Credit Facility ” shall mean the Term Loan Credit Agreement, the Initial Junior Lien Credit Facility or any Additional Credit Facility, as applicable

Credit Parties ” shall mean the Term Loan Credit Parties, the Initial Junior Priority Credit Parties and any Additional Credit Parties.

Creditor ” shall mean any Senior Priority Creditor or Junior Priority Creditor.

Currency Agreement ” shall mean, in respect of a Person, any foreign exchange contract, currency swap agreement or other similar agreement or arrangements (including derivative agreements or arrangements), as to which such Person is a party or a beneficiary.

Designated Agent ” shall mean any Party that the Company designates as a Designated Agent (as confirmed in writing by such Party if such designation is made after the execution of this Agreement by such Party (in the case of the Initial Junior Priority Agent) or the joinder of such Party to this Agreement), as and to the extent so designated. Such designation may be for all purposes of this Agreement, or may be for one or more specified purposes hereunder or provisions hereof.

DIP Financing ” shall have the meaning set forth in Section 6.1(a) .

Discharge of Additional Obligations ” shall mean, if any Indebtedness shall at any time have been incurred under any Additional Credit Facility, with respect to each Additional Credit Facility, (a) the payment in full in cash of the applicable Additional Obligations that are outstanding and unpaid at the time all Additional Indebtedness under such Additional Credit Facility is paid in full in cash, (i) including (if applicable), with respect to amounts available to be drawn under outstanding letters of credit issued thereunder at such time (or indemnities or other undertakings issued pursuant thereto in respect of outstanding letters of credit at such time), delivery or provision of cash or backstop letters of credit in respect thereof in compliance with the terms of any such Additional Credit Facility (which shall not exceed an amount equal to 101.5% of the aggregate undrawn amount of such letters of credit) but (ii) excluding unasserted contingent indemnification or other obligations under the applicable Additional Credit Facility at such time and (b) the termination of all then outstanding commitments to extend credit under the applicable Additional Documents at such time.

Discharge of Initial Junior Priority Obligations ” shall mean, with respect to each Junior Priority Credit Facility, (a) the payment in full in cash of the applicable Initial Junior Priority Obligations that are outstanding and unpaid at the time all Indebtedness under the applicable Initial Junior Priority Credit Facility is paid in full in cash, (i) including (if applicable), with respect to amounts available to be drawn

 

-8-


under outstanding letters of credit issued thereunder at such time (or indemnities or other undertakings issued pursuant thereto in respect of outstanding letters of credit at such time), delivery or provision of cash or backstop letters of credit in respect thereof in compliance with the terms of any such Initial Junior Priority Credit Facility (which shall not exceed an amount equal to 101.5% of the aggregate undrawn amount of such letters of credit) but (ii) excluding, for the avoidance of doubt, unasserted contingent indemnification or other obligations at such time and (b) the termination of all then outstanding commitments to extend credit under the Initial Junior Priority Documents at such time.

Discharge of Term Loan Obligations ” shall mean (a) the payment in full in cash of the applicable Term Loan Obligations that are outstanding and unpaid at the time all Indebtedness under the applicable Term Loan Credit Agreement is paid in full in cash, but excluding, for the avoidance of doubt, unasserted contingent indemnification or other obligations under the applicable Term Loan Credit Agreement at such time and (b) the termination of all then outstanding commitments to extend credit under the Term Loan Documents at such time.

Discharge of Senior Priority Obligations ” shall mean the occurrence of all of the Discharge of Term Loan Obligations and the Discharge of Additional Obligations in respect of Senior Priority Debt.

Domestic Subsidiary ” shall mean any Subsidiary of the Company that is not a Foreign Subsidiary.

Event of Default ” shall mean an Event of Default under any Term Loan Credit Agreement, any Initial Junior Priority Credit Facility or any Additional Credit Facility.

Exercise Any Secured Creditor Remedies ” or “ Exercise of Secured Creditor Remedies ” shall mean:

(a) the taking of any action to enforce or realize upon any Lien, including the institution of any foreclosure proceedings or the noticing of any public or private sale pursuant to Article 9 of the Uniform Commercial Code, or taking any action to enforce any right or power to repossess, replevy, attach, garnish, levy upon or collect the Proceeds of any Lien;

(b) the exercise of any right or remedy provided to a secured creditor on account of a Lien under any of the Credit Documents, under applicable law, by self-help repossession, by notification to account obligors of any Grantor in an Insolvency Proceeding or otherwise, including the election to retain any of the Collateral in satisfaction of a Lien;

(c) the taking of any action or the exercise of any right or remedy in respect of the collection on, set off against, marshaling of, injunction respecting or foreclosure on the Collateral or the Proceeds thereof;

(d) the appointment of a receiver, receiver and manager or interim receiver of all or part of the Collateral;

(e) the sale, lease, license, or other disposition of all or any portion of the Collateral by private or public sale or any other means permissible under applicable law;

(f) the exercise of any other right of a secured creditor under Part 6 of Article 9 of the Uniform Commercial Code;

 

-9-


(g) the exercise of any voting rights relating to any Capital Stock included in the Collateral; and

(h) the delivery of any notice, claim or demand relating to the Collateral to any Person (including any securities intermediary, depository bank or landlord) in possession or control of any Collateral;

provided that (i) filing a proof of claim or statement of interest in any Insolvency Proceeding, (ii) the acceleration of the Senior Priority Obligations, (iii) the imposition of a default rate, (iv) the cessation of lending pursuant to the provisions of the Senior Priority Documents, (v) the consent by any Senior Priority Agent to disposition by any Grantor of any of the Collateral or the consent by the Senior Priority Representative to disposition by any Grantor of any of the Collateral or (vi) seeking adequate protection shall not be deemed to be an Exercise of Secured Creditor Remedies.

Governmental Authority ” shall mean any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including the European Union.

Grantor ” shall mean any Grantor as defined in the Term Loan Collateral Documents or in the Junior Priority Collateral Documents, as the context requires.

Guarantor ” shall mean any of the Term Loan Guarantors, the Initial Junior Priority Guarantors and any Additional Guarantors.

Hedging Affiliate ” shall mean any Term Loan Hedging Affiliate, any Initial Junior Priority Hedging Affiliate or any Additional Hedging Affiliate, as applicable.

Hedging Agreement ” shall mean any Interest Rate Agreement, Commodities Agreement, Currency Agreement or any other credit or equity swap, collar, cap, floor or forward rate agreement, or other agreement or arrangement designed to protect against fluctuations in interest rates or currency, commodity, equity values or creditworthiness (including, without limitation, any option with respect to any of the foregoing and any combination of the foregoing agreements or arrangements), and any confirmation executed in connection with any such agreement or arrangement.

Hedging Provider ” shall mean any Term Loan Hedging Provider, any Initial Junior Priority Hedging Provider or any Additional Hedging Provider, as applicable.

Indebtedness ” shall mean, with respect to any Person at any date, (a) all indebtedness of such Person for borrowed money or for the deferred purchase price of property (other than trade liabilities incurred in the ordinary course of business and payable in accordance with customary practices) , which purchase price is due more than one year after the date of placing such property in final service or taking final delivery and title thereto, (b) any other indebtedness of such Person which is evidenced by a note, bond, debenture or similar instrument, (c) all obligations of such Person under Financing Leases, (d) all obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar instruments issued or created for the account of such Person, (e) all obligations of such Person in respect of interest rate protection agreements, interest rate futures, interest rate options, interest rate caps and any other interest rate hedge arrangements, (f) all indebtedness or obligations of the types referred to in the preceding clauses (a) through (e) to the extent secured by any Lien on any property owned by such Person even though such Person has not assumed or otherwise become liable for the payment thereof and (g) all guarantees by such Person of Indebtedness of other Persons, to the extent so guaranteed by such Person.

 

-10-


Initial Junior Priority Agent ” shall mean [        ] in its capacity as collateral agent under the Original Initial Junior Priority Credit Facility, together with its successors and assigns in such capacity from time to time, whether under the Original Initial Junior Priority Credit Facility or any subsequent Initial Junior Priority Credit Facility, as well as any Person designated as the “Agent” or “Collateral Agent” under any Initial Junior Priority Credit Facility.

Initial Junior Priority Bank Products Affiliate ” shall mean any Person who (a) has entered into a Bank Products Agreement with any Initial Junior Priority Credit Party with the obligations of such Initial Junior Priority Credit Party thereunder being secured by one or more Initial Junior Priority Collateral Documents, (b) was an Initial Junior Priority Credit Facility Lender or an Affiliate of an Initial Junior Priority Credit Facility Lender on the date hereof, or at the time of entry into such Bank Products Agreement, or at the time of the designation referred to in the following clause (c), and (c) has been designated by the Company in accordance with the terms of one or more Initial Junior Priority Collateral Documents (provided that no Person shall, with respect to any Bank Products Agreement, be at any time an Initial Junior Priority Bank Products Affiliate hereunder with respect to more than one Credit Facility).

Initial Junior Priority Bank Products Provider ” shall mean any Person (other than an Initial Junior Priority Bank Products Affiliate) that has entered into a Bank Products Agreement with an Initial Junior Priority Credit Party with the obligations of such Initial Junior Priority Credit Party thereunder being secured by one or more Initial Junior Priority Collateral Documents, as designated by the Company in accordance with the terms of the Initial Junior Priority Collateral Documents , as designated by the Company in accordance with the terms of one or more Initial Junior Priority Collateral Documents (provided that no Person shall, with respect to any Bank Products Agreement, be at any time a Bank Products Provider hereunder with respect to more than one Credit Facility).

Initial Junior Priority Borrower ” shall mean [        ] in [its][their] capacity[y][ies] as borrower[s] under the Initial Junior Priority Credit Facility, together with its [and their respective] successors and assigns.

Initial Junior Priority Collateral Documents ” shall mean all “Security Documents” as defined in the Initial Junior Priority Credit Facility, and all other security agreements, mortgages, deeds of trust and other collateral documents executed and delivered in connection with any Initial Junior Priority Credit Facility, and any other agreement, document or instrument pursuant to which a Lien is granted securing any Junior Priority Obligations or under which rights or remedies with respect to such Liens are governed, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time.

Initial Junior Priority Credit Facility ” shall mean (a) if the Original Initial Junior Priority Credit Facility is then in effect, the Original Initial Junior Priority Credit Facility, and (b) thereafter, if designated by the Company, any other credit agreement, loan agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of any indebtedness or other financial accommodation that has been incurred to refund, refinance, restructure, replace, renew, repay, increase or extend (whether in whole or in part and whether with the original agent and creditors or other agents and creditors or otherwise) the indebtedness and other obligations outstanding under (x) the Original Initial Junior Priority Credit Facility or (y) any subsequent Initial Junior Priority Credit Facility (in each case, as amended, restated, supplemented, waived or otherwise modified from time to time); provided , that the requisite creditors party to such Initial Junior Priority Credit Facility (or their agent or other representative on their behalf) shall agree, by a joinder agreement substantially in the form of Exhibit C attached hereto or otherwise in form and substance reasonably satisfactory to any Senior Priority Agent (other than any Designated Agent) (or, if there is no continuing Senior Priority Agent other than any Designated Agent, as designated by the Company), that the obligations under such Initial Junior Priority Credit Facility are subject to the terms and provisions of this Agreement. Any reference to the Initial Junior Priority Credit Facility shall be deemed a reference to any Initial Junior Priority Credit Facility then in existence.

 

-11-


Initial Junior Priority Credit Facility Lenders ” shall mean one or more holders of Indebtedness (or commitments therefor) that is or may be incurred under the Initial Junior Priority Credit Facility, together with their successors, assigns and transferees, as well as any Person designated as an “Initial Junior Priority Credit Facility Lender” under any Initial Junior Priority Credit Facility.

Initial Junior Priority Credit Parties ” shall mean the Initial Junior Priority Borrower, the Initial Junior Priority Guarantors and each other direct or indirect Subsidiary of the Company or any of its Affiliates that is now or hereafter becomes a party to any Initial Junior Priority Document.

Initial Junior Priority Creditors ” shall mean one or more Initial Junior Priority Credit Facility Lenders and shall include all Initial Junior Priority Bank Products Affiliates, Initial Junior Priority Hedging Affiliates, Initial Junior Priority Bank Products Providers and Initial Junior Priority Hedging Providers and all successors, assigns, transferees and replacements thereof, as well as any Person designated as an “Initial Junior Priority Creditor” under any Initial Junior Priority Credit Facility.

Initial Junior Priority Documents ” shall mean the Initial Junior Priority Credit Facility, the Initial Junior Priority Guaranties, the Initial Junior Priority Collateral Documents, any Bank Products Agreements between any Initial Junior Priority Credit Party and any Initial Junior Priority Bank Products Affiliate or Initial Junior Priority Bank Products Provider, any Hedging Agreements between any Initial Junior Priority Credit Party and any Initial Junior Priority Hedging Affiliate or Initial Junior Priority Hedging Provider, those other ancillary agreements as to which the Initial Junior Priority Agent or any Initial Junior Priority Creditor is a party or a beneficiary and all other agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any Initial Junior Priority Credit Party or any of its respective Subsidiaries or Affiliates, and delivered to the Initial Junior Priority Agent, in connection with any of the foregoing or any Initial Junior Priority Credit Facility, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time.

Initial Junior Priority Guaranties ” shall mean the guarantees of the Initial Junior Priority Guarantors pursuant to the [        ] 3 , and all other guaranties of any Initial Junior Priority Obligations of any Initial Junior Priority Credit Party in favor of any Initial Junior Priority Secured Party, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time.

Initial Junior Priority Guarantors ” shall mean the collective reference to each of the Company’s Domestic Subsidiaries that is a guarantor under any of the Initial Junior Priority Guaranties and any other Person who becomes a guarantor under any of the Initial Junior Priority Guaranties.

Initial Junior Priority Hedging Affiliate ” shall mean any Person who (a) has entered into a Hedging Agreement with any Initial Junior Priority Credit Party with the obligations of such Initial Junior Priority Credit Party thereunder being secured by one or more Initial Junior Priority Collateral Documents, (b) was an Initial Junior Priority Credit Facility Lender or an Affiliate of an Initial Junior Priority Credit Facility Lender on the date hereof, or at the time of entry into such Hedging Agreement, or at the time of

 

 

3  

Describe guarantee arrangements.

 

-12-


the designation referred to in the following clause (c), and (c) has been designated by the Company in accordance with the terms of one or more Initial Junior Priority Collateral Documents (provided that no Person shall, with respect to any Hedging Agreement, be at any time a Hedging Affiliate hereunder with respect to more than one Credit Facility).

Initial Junior Priority Hedging Provider ” shall mean any Person (other than an Initial Junior Priority Hedging Affiliate) that has entered into a Hedging Agreement with an Initial Junior Priority Credit Party with the obligations of such Initial Junior Priority Credit Party thereunder being secured by one or more Initial Junior Priority Collateral Documents, as designated by the Company in accordance with the terms of one or more Initial Junior Priority Collateral Documents (provided that no Person shall, with respect to any Hedging Agreement, be at any time a Hedging Provider hereunder with respect to more than one Credit Facility).

Initial Junior Priority Obligations ” shall mean any and all loans and all other obligations, liabilities and indebtedness of every kind, nature and description, whether now existing or hereafter arising, whether arising before, during or after the commencement of any case with respect to any Initial Junior Priority Credit Party under the Bankruptcy Code or any other Insolvency Proceeding, owing by each Initial Junior Priority Credit Party from time to time to any Initial Junior Priority Agent, any Initial Junior Priority Creditors or any of them, including any Initial Junior Priority Bank Products Affiliates or Initial Junior Priority Hedging Affiliates, Initial Junior Priority Bank Products Provider or Initial Junior Priority Hedging Provider, under any Initial Junior Priority Document, whether for principal, interest (including interest and fees which, but for the filing of a petition in bankruptcy with respect to such Initial Junior Priority Credit Party, would have accrued on any Initial Junior Priority Obligation, whether or not a claim is allowed against such Initial Junior Priority Credit Party for such interest and fees in the related bankruptcy proceeding), reimbursement of amounts drawn under letters of credit, payments for early termination of Hedging Agreements, fees, expenses, indemnification or otherwise, and all other amounts owing or due under the terms of the Initial Junior Priority Documents, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time.

Initial Junior Priority Secured Parties ” shall mean the Initial Junior Priority Agent and the Initial Junior Priority Creditors.

Insolvency Proceeding ” shall mean (a) any case, action or proceeding before any court or other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding up or relief of debtors, or (b) any general assignment for the benefit of creditors, composition, marshalling of assets for creditors or other similar arrangement in respect of its creditors generally or any substantial portion of its creditors; in each case covered by clauses (a) and (b) undertaken under United States Federal, State or foreign law, including the Bankruptcy Code.

Interest Rate Agreement ” shall mean, with respect to any Person, any interest rate protection agreement, future agreement, option agreement, swap agreement, cap agreement, collar agreement, hedge agreement or other similar agreement or arrangement (including derivative agreements or arrangements), as to which such Person is party or a beneficiary.

Junior Priority Agent ” shall mean any of the Initial Junior Priority Agent and any Additional Agent under any Junior Priority Documents.

Junior Priority Collateral Documents ” shall mean the Initial Junior Priority Collateral Documents and any Additional Collateral Documents in respect of any Junior Priority Obligations.

 

-13-


Junior Priority Credit Facility ” shall mean the Initial Junior Priority Credit Facility and any Additional Credit Facility in respect of any Junior Priority Obligations.

Junior Priority Creditors ” shall mean the Initial Junior Priority Creditors and any Additional Credit Facility Secured Party in respect of any Junior Priority Obligations.

Junior Priority Debt ” shall mean:

(1) all Initial Junior Priority Obligations; and

(2) any Additional Obligations of any Credit Party so long as on or before the date on which the relevant Additional Indebtedness is incurred, such Indebtedness is designated by the Company as “Junior Priority Debt” in the relevant Additional Indebtedness Designation delivered pursuant to Section 7.11(a)(iii).

Junior Priority Documents ” shall mean the Initial Junior Priority Documents and any Additional Documents in respect of any Junior Priority Obligations.

Junior Priority Lien ” shall mean a Lien granted (a) by an Initial Junior Priority Collateral Document to the Initial Junior Priority Agent or (b) by an Additional Collateral Document to any Additional Agent for the purpose of securing Junior Priority Obligations.

Junior Priority Obligations ” shall mean the Initial Junior Priority Obligations and any Additional Obligations constituting Junior Priority Debt.

Junior Priority Representative ” shall mean the Junior Priority Agent designated by the Junior Priority Agents to act on behalf of the Junior Priority Agents hereunder, acting in such capacity. The Junior Priority Representative shall initially be the Initial Junior Priority Agent.

Junior Priority Secured Parties ” shall mean, at any time, all of the Junior Priority Agents and all of the Junior Priority Creditors.

Lien ” shall mean any mortgage, pledge, hypothecation, assignment for purposes of security, security deposit arrangement, encumbrance, lien (statutory or other), charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement and any Financing Lease having substantially the same economic effect as any of the foregoing).

“Lien Priority ” shall mean, with respect to any Lien of the Term Loan Agent, the Term Loan Secured Parties, the Initial Junior Priority Agent, the Initial Junior Priority Creditors, any Additional Agent or any Additional Credit Facility Secured Party in the Collateral, the order of priority of such Lien as specified in Section 2.1.

Management Credit Provider ” shall mean any Person that is a beneficiary of a Management Guarantee, as designated by the Company in accordance with the terms of the Term Loan Collateral Documents.

Management Guarantee ” shall have the meaning assigned to such term in the Original Term Loan Credit Agreement (if the Original Term Loan Credit Agreement is then in effect), or in any other Term Loan Credit Agreement then in effect (if the Original Term Loan Credit Agreement is not then in effect).

 

-14-


Original Initial Junior Priority Credit Facility ” shall mean the [        ] 4 , dated as of [        ], among [        ], as such agreement may be amended, supplemented, restated, waived or otherwise modified from time to time.

Original Term Loan Credit Agreement ” shall mean that certain Amended and Restated Credit Agreement dated as of December 1, 2016, by and among the Term Loan Borrower, JPMorgan Chase Bank, N.A., as administrative agent, the Term Loan Credit Agreement Lenders and the Term Loan Agent, as amended, restated, supplemented, waived or otherwise modified from time to time.

Party ” shall mean any of the Term Loan Agent, the Initial Junior Priority Agent or any Additional Agent, and “ Parties ” shall mean all of the Term Loan Agent, the Initial Junior Priority Agent and any Additional Agent.

Person ” shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.

Proceeds ” shall mean (a) all “proceeds,” as defined in Article 9 of the Uniform Commercial Code, with respect to the Collateral, and (b) whatever is recoverable or recovered when any Collateral is sold, exchanged, collected, or disposed of, whether voluntarily or involuntarily.

Property ” shall mean any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

Requisite Senior Priority Holders ” shall mean Senior Priority Secured Parties holding, in the aggregate, in excess of 50% of the aggregate principal amount of the Senior Priority Obligations; provided that, (x) if the matter being consented to or the action being taken by the Senior Priority Representative is the subordination of Liens to other Liens, or the consent to a sale of all or substantially all of the Collateral, then “Requisite Senior Priority Holders” shall mean those Senior Priority Secured Parties necessary to validly consent to the requested action in accordance with the applicable Senior Priority Documents and (y) except as may be separately otherwise agreed in writing by and between or among each Senior Priority Agent, on behalf of itself and the Senior Priority Creditors represented thereby, if the matter being consented to or the action being taken by the Senior Priority Representative will affect any Series of Senior Priority Debt in a manner different and materially adverse relative to the manner such matter or action affects any other Series of Senior Priority Debt (except to the extent expressly set forth in this Agreement), then “Requisite Senior Priority Holders” shall mean (1) Senior Priority Secured Parties holding, in the aggregate, in excess of 50% of the aggregate principal amount of the Senior Priority Obligations and (2) Senior Priority Secured Parties holding, in the aggregate, in excess of 50% of the aggregate principal amount of the applicable Series of Senior Priority Debt.

Secured Parties ” shall mean the Senior Priority Secured Parties and the Junior Priority Secured Parties.

Senior Priority Agent ” shall mean any of the Term Loan Agent or any Additional Agent under any Senior Priority Documents.

 

 

4   Describe the Initial Junior Priority Credit Facility.

 

-15-


Senior Priority Credit Facility ” shall mean the Term Loan Credit Agreement and any Additional Credit Facility in respect of any Senior Priority Obligations.

Senior Priority Recovery ” shall have the meaning set forth in Section 5.3.

Senior Priority Creditors ” shall mean the Term Loan Secured Parties and any Additional Credit Facility Secured Party in respect of any Senior Priority Obligations.

Senior Priority Debt ” shall mean:

(1) all Term Loan Obligations; and

(2) any Additional Obligations of any Credit Party so long as on or before the date on which the relevant Additional Indebtedness is incurred, such Indebtedness is designated by the Company as “Senior Priority Debt” in the relevant Additional Indebtedness Designation delivered pursuant to Section 7.11(a)(iii).

Senior Priority Documents ” shall mean the Term Loan Documents and any Additional Documents in respect of any Senior Priority Obligations.

Senior Priority Lien ” shall mean a Lien granted (a) by a Term Loan Collateral Document to the Term Loan Agent or (b) by an Additional Collateral Document to any Additional Agent for the purpose of securing Senior Priority Obligations.

Senior Priority Obligations ” shall mean the Term Loan Obligations and any Additional Obligations constituting Senior Priority Debt.

Senior Priority Representative ” shall mean the Senior Priority Agent designated by the Senior Priority Agents to act on behalf of the Senior Priority Agents under this Agreement, acting in such capacity; provided that, at any time the Base Intercreditor Agreement is in effect, the Senior Priority Representative shall be the “Term Loan Collateral Representative” as defined under the Base Intercreditor Agreement. The Senior Priority Representative shall initially be the Term Loan Agent.

Senior Priority Secured Parties ” shall mean, at any time, all of the Senior Priority Agents and all of the Senior Priority Creditors.

Series of Senior Priority Debt ” shall mean, severally, (a) the Indebtedness outstanding under the Term Loan Credit Agreement and (b) the Indebtedness outstanding under any Additional Credit Facility in respect of or constituting Senior Priority Debt.

Standstill Period ” shall have the meaning set forth in Section 2.3(a).

Subsidiary ” of any Person shall mean a corporation, partnership, limited liability company, or other entity (a) of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership, limited liability company or other entity are at the time owned by such Person, or (b) the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person and, in the case of this clause (b), which is treated as a consolidated subsidiary for accounting purposes.

 

-16-


Term Loan Agent ” shall mean [                ] 5 in its capacity as collateral agent under the Term Loan Credit Agreement, together with its successors and assigns in such capacity from time to time, whether under the Original Term Loan Credit Agreement or any subsequent Term Loan Credit Agreement, as well as any Person designated as the “Agent” or “Collateral Agent” under any Term Loan Credit Agreement.

Term Loan Bank Products Affiliate ” shall mean any Person who (a) has entered into a Bank Products Agreement with any Term Loan Credit Party with the obligations of such Term Loan Credit Party thereunder being secured by one or more Term Loan Collateral Documents, (b) was a Term Loan Credit Agreement Lender or an Affiliate of a Term Loan Credit Agreement Lender on the date hereof, or at the time of entry into such Bank Products Agreement, or at the time of the designation referred to in the following clause (c), and (c) has been designated by the Company in accordance with the terms of one or more Term Loan Collateral Documents (provided that no Person shall, with respect to any Bank Products Agreement, be at any time a Bank Products Affiliate hereunder with respect to more than one Credit Facility).

Term Loan Bank Products Provider ” shall mean any Person (other than a Term Loan Bank Products Affiliate) that has entered into a Bank Products Agreement with a Term Loan Credit Party with the obligations of such Term Loan Credit Party thereunder being secured by one or more Term Loan Collateral Documents, as designated by the Company in accordance with the terms of one or more Term Loan Collateral Documents (provided that no Person shall, with respect to any Bank Products Agreement, be at any time a Bank Products Provider hereunder with respect to more than one Credit Facility).

Term Loan Borrower ” shall mean the Company, in its capacity as borrower under the Term Loan Credit Agreement, together with its successors and assigns.

Term Loan Collateral Documents ” shall mean all “ Security Documents ” as defined in the Original Term Loan Credit Agreement, and all other security agreements, mortgages, deeds of trust and other collateral documents executed and delivered in connection with any Term Loan Credit Agreement, and any other agreement, document or instrument pursuant to which a Lien is granted securing any Term Loan Obligations or under which rights or remedies with respect to such Liens are governed, in each case as the same may be amended, modified or supplemented from time to time.

Term Loan Credit Agreement ” shall mean (i) if the Original Term Loan Credit Agreement is then in effect, the Original Term Loan Credit Agreement and (ii) thereafter, if designated by the Company, any other credit agreement, loan agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of any indebtedness or other financial accommodation that complies with clause (1) of the definition of “Additional Indebtedness” and has been incurred to refund, refinance, restructure, replace, renew, repay, increase or extend (whether in whole or in part and whether with the original agent and creditors or other agents and creditors or otherwise) the indebtedness and other obligations outstanding under (x) the Original Term Loan Credit Agreement or (y) any subsequent Term Loan Credit Agreement (in each case, as amended, restated, supplemented, waived or otherwise modified from time to time); provided , that the requisite creditors party to such Term Loan Credit Agreement (or their agent or other representative on their behalf) shall agree, by a joinder agreement substantially in the form of Exhibit C attached hereto or otherwise in form and substance

 

 

5  

Insert name of Term Collateral Agent.

 

-17-


reasonably satisfactory to the Initial Junior Priority Agent (if other than a Designated Agent) and any other Junior Priority Agent, (other than any Designated Agent) (or, if there is no continuing Junior Priority Agent other than any Designated Agent, as designated by the Company) that the obligations under such Term Loan Credit Agreement are subject to the terms and provisions of this Agreement. Any reference to the Term Loan Credit Agreement shall be deemed a reference to any Term Loan Credit Agreement then in existence.

Term Loan Credit Agreement Lender ” shall mean one or more holders of Indebtedness (or commitments therefor) that is or may be incurred under any Term Loan Credit Agreement, together with their successors, assigns and transferees, as well as any Person designated as a “ Term Loan Credit Agreement Lender ” under any Term Loan Credit Agreement.

Term Loan Credit Parties ” shall mean the Term Loan Borrower, the Term Loan Guarantors and each other direct or indirect Subsidiary of the Company or any of its Affiliates that is now or hereafter becomes a party to any Term Loan Document.

Term Loan Documents ” shall mean the Term Loan Credit Agreement, the Term Loan Guaranties, the Term Loan Collateral Documents, any Bank Products Agreements between any Term Loan Credit Party and any Term Loan Bank Products Affiliate or any Term Loan Bank Products Provider, any Hedging Agreements between any Term Loan Credit Party and any Term Loan Hedging Affiliate or Term Loan Hedging Provider, any Management Guarantee, and those other ancillary agreements as to which the Term Loan Agent or any Term Loan Credit Agreement Lender is a party or a beneficiary and all other agreements, instruments, documents and certificates, now or hereafter executed by or on behalf of any Term Loan Credit Party or any of its respective Subsidiaries or Affiliates, and delivered to the Term Loan Agent, in connection with any of the foregoing or any Term Loan Credit Agreement, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time.

Term Loan Guaranties ” shall mean that certain guarantee agreement dated as of the date hereof by the Term Loan Guarantors in favor of the Term Loan Agent, and all other guarantees of any Term Loan Obligations of any Term Loan Credit Party by any other Term Loan Credit Party in favor of any Term Loan Secured Party, in each case as amended, restated, supplemented, waived or otherwise modified from time to time.

Term Loan Guarantors ” shall mean the collective reference to each of the Company’s Domestic Subsidiaries that is a guarantor under any of the Term Loan Guaranties and any other Person who becomes a guarantor under any of the Term Loan Guaranties.

Term Loan Hedging Affiliate ” shall mean any Person who (a) has entered into a Hedging Agreement with any Term Loan Credit Party with the obligations of such Term Loan Credit Party thereunder being secured by one or more Term Loan Collateral Documents, (b) was a Term Loan Credit Agreement Lender or an Affiliate of a Term Loan Credit Agreement Lender on the date hereof, or at the time of entry into such Hedging Agreement, or at the time of the designation referred to in the following clause (c) and (c) has been designated by the Company in accordance with the terms of one or more Term Loan Collateral Documents (provided that no Person shall, with respect to any Hedging Agreement, be at any time a Hedging Affiliate hereunder with respect to more than one Credit Facility).

Term Loan Hedging Provider ” shall mean any Person (other than a Term Loan Hedging Affiliate) that has entered into a Hedging Agreement with a Term Loan Credit Party with the obligations of such Term Loan Credit Party thereunder being secured by one or more Term Loan Collateral Documents, as designated by the Company in accordance with the terms of the Term Loan Collateral Documents, as designated by the Company in accordance with the terms of one ore more Term Loan Collateral Documents (provided that no Person shall, with respect to any Hedging Agreement, be at any time a Hedging Provider hereunder with respect to more than one Credit Facility).

 

-18-


Term Loan Obligations ” shall mean any and all loans and all other obligations, liabilities and indebtedness of every kind, nature and description, whether now existing or hereafter arising, whether arising before, during or after the commencement of any case with respect to any Term Loan Credit Party under the Bankruptcy Code or any other Insolvency Proceeding, owing by each Term Loan Credit Party from time to time to the Term Loan Agent, the Term Loan Credit Agreement Lender, any Term Loan Bank Products Affiliate, Term Loan Hedging Affiliate, Term Loan Bank Products Provider or Term Loan Hedging Provider or any Management Credit Providers under any Term Loan Document, whether for principal, interest (including interest and fees which, but for the filing of a petition in bankruptcy with respect to such Term Loan Credit Party, would have accrued on any Term Loan Obligation, whether or not a claim is allowed against such Term Loan Credit Party for such interest and fees in the related bankruptcy proceeding), reimbursement for amounts drawn under letters of credit, fees, expenses, indemnification or otherwise, and all other amounts owing or due under the terms of the Term Loan Documents, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time.

Term Loan Secured Parties ” shall mean all Term Loan Credit Agreement Lenders together with all Term Loan Bank Products Affiliates, Term Loan Hedging Affiliates, Term Loan Bank Product Providers, Term Loan Hedging Providers and Management Credit Providers and all successors, assigns, transferees and replacements thereof, as well as any Person designated as a “Term Loan Secured Party” under any Term Loan Credit Agreement.

Uniform Commercial Code ” shall mean the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York; provided that to the extent that the Uniform Commercial Code is used to define any term in any security document and such term is defined differently in differing Articles of the Uniform Commercial Code, the definition of such term contained in Article 9 shall govern; provided , further , that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, publication or priority of, or remedies with respect to, Liens of any Party is governed by the Uniform Commercial Code or foreign personal property security laws as enacted and in effect in a jurisdiction other than the State of New York, the term “Uniform Commercial Code” will mean the Uniform Commercial Code or such foreign personal property security laws as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.

United States ” shall mean the United States of America.

Section 1.3 Rules of Construction . Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the term “ including ” is not limiting, and the term “ or ” has, except where otherwise indicated, the inclusive meaning represented by the phrase “ and/or .” The words “ hereof ,” “ herein ,” “ hereby ,” “ hereunder ,” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Article, section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in this Agreement to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). Any reference herein to any Person shall be construed to include such Person’s successors and assigns. Any reference herein to the repayment in full of an obligation shall mean the payment in full in cash of such obligation, or in such other manner as may be approved in writing by the requisite holders or representatives in respect of such obligation, or in such other manner as may be approved by the requisite holders or representatives in respect of such obligation.

 

-19-


ARTICLE II

LIEN PRIORITY

Section 2.1 Agreement to Subordinate .

(a) Notwithstanding (i) the date, time, method, manner, or order of grant, attachment, or perfection (including any defect or deficiency or alleged defect or deficiency in any of the foregoing) of any Liens granted to any Senior Priority Agent or any Senior Priority Creditors in respect of all or any portion of the Collateral, or of any Liens granted to any Junior Priority Agent or any Junior Priority Creditors in respect of all or any portion of the Collateral, and regardless of how any such Lien was acquired (whether by grant, statute, operation of law, subrogation or otherwise), (ii) the order or time of filing or recordation of any document or instrument for perfecting the Liens in favor of any Senior Priority Agent, any Senior Priority Creditors, any Junior Priority Agent or any Junior Priority Creditors in any Collateral, (iii) any provision of the Uniform Commercial Code, the Bankruptcy Code or any other applicable law, or of any Senior Priority Documents or Junior Priority Documents, (iv) whether any Senior Priority Agent or any Junior Priority Agent, in each case either directly or through agents, holds possession of, or has control over, all or any part of the Collateral, (v) the fact that any such Liens in favor of any Senior Priority Agent or any Senior Priority Creditors securing any of the Senior Priority Obligations are (x) subordinated to any Lien securing any other obligation of any Credit Party or (y) otherwise subordinated, voided, avoided, invalidated or lapsed or (vi) any other circumstance of any kind or nature whatsoever, each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, hereby agrees that:

(i) any Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of any Junior Priority Agent or any Junior Priority Creditor that secures all or any portion of the Junior Priority Obligations shall be junior and subordinate in all respects to all Liens granted to any of the Senior Priority Agents and the Senior Priority Creditors in the Collateral to secure all or any portion of the Senior Priority Obligations;

(ii) any Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of any Senior Priority Agent or any Senior Priority Creditor that secures all or any portion of the Senior Priority Obligations shall be senior and prior in all respects to all Liens granted to any of the Junior Priority Agents and the Junior Priority Creditors in the Collateral to secure all or any portion of the Junior Priority Obligations;

(iii) except as otherwise provided in Sections 2.1(a)(11) and (12) of the Base Intercreditor Agreement, any Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of any Senior Priority Agent or any Senior Priority Creditor that secures all or any portion of the Senior Priority Obligations shall be pari passu and equal in priority in all respects with any Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of any other Senior Priority Agent or any other Senior Priority Creditor that secures all or any portion of the Senior Priority Obligations; and

(iv) except as otherwise provided in Sections 2.1(a)(11) and (12) of the Base Intercreditor Agreement, and except as may be separately otherwise agreed in writing by and between or among any applicable Junior Priority Agents, in each case on behalf of itself and the Junior Priority Secured Parties represented thereby, any Lien in respect of all or any portion of

 

-20-


the Collateral now or hereafter held by or on behalf of any Junior Priority Agent or any Junior Priority Creditor that secures all or any portion of the Junior Priority Obligations shall be pari passu and equal in priority in all respects with any Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of any other Junior Priority Agent or any other Junior Priority Creditor that secures all or any portion of the Junior Priority Obligations.

(b) Notwithstanding (i) the date, time, method, manner, or order of grant, attachment, or perfection (including any defect or deficiency or alleged defect or deficiency in any of the foregoing) of any Liens granted to any Senior Priority Agent or any Senior Priority Creditors in respect of all or any portion of the Collateral and regardless of how any such Lien was acquired (whether by grant, statute, operation of law, subrogation or otherwise), (ii) the order or time of filing or recordation of any document or instrument for perfecting the Liens in favor of any other Senior Priority Agent or any other Senior Priority Creditors in any Collateral, (iii) any provision of the Uniform Commercial Code, the Bankruptcy Code or any other applicable law, or of any Senior Priority Documents, (iv) whether any Senior Priority Agent, in each case either directly or through agents, holds possession of, or has control over, all or any part of the Collateral, (v) the fact that any such Liens in favor of any Senior Priority Agent or any Senior Priority Creditors securing any of the Senior Priority Obligations are (x) subordinated to any Lien securing any other obligation of any Credit Party or (y) otherwise subordinated, voided, avoided, invalidated or lapsed or (vi) any other circumstance of any kind or nature whatsoever, each Senior Priority Agent, for and on behalf of itself and the Senior Priority Creditors represented thereby, hereby agrees that except as may be separately otherwise agreed in writing by and between or among any applicable Senior Priority Agents, in each case on behalf of itself and the Senior Priority Creditors represented thereby, any Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of any Senior Priority Agent or any Senior Priority Creditor that secures all or any portion of the Senior Priority Obligations shall be pari passu and equal in priority in all respects with any Lien in respect of all or any portion of the Collateral now or hereafter held by or on behalf of any other Senior Priority Agent or any other Senior Priority Creditor that secures all or any portion of the Senior Priority Obligations.

(c) Notwithstanding any failure by any Senior Priority Secured Party to perfect its security interests in the Collateral or any avoidance, invalidation, priming or subordination by any third party or court of competent jurisdiction of the security interests in the Collateral granted to any of the Senior Priority Secured Parties, the priority and rights as (x) between the respective classes of Senior Priority Secured Parties, and (y) between the Senior Priority Secured Parties, on the one hand, and the Junior Priority Secured Parties, on the other hand, with respect to the Collateral shall be as set forth herein. Notwithstanding any failure by any Junior Priority Secured Party to perfect its security interests in the Collateral or any avoidance, invalidation, priming or subordination by any third party or court of competent jurisdiction of the security interests in the Collateral granted to any of the Junior Priority Secured Parties, the priority and rights as between the respective classes of Junior Priority Secured Parties with respect to the Collateral shall be as set forth herein. Lien priority as among the Senior Priority Obligations and the Junior Priority Obligations with respect to any Collateral will be governed solely by this Agreement, except as may be separately otherwise agreed in writing by or among any applicable Parties.

(d) The Term Loan Agent, for and on behalf of itself and the Term Loan Secured Parties, acknowledges and agrees that (x) concurrently herewith, the Initial Junior Priority Agent, for the benefit of itself and the Initial Junior Priority Secured Parties, has been granted Junior Priority Liens upon all of the Collateral in which the Term Loan Agent has been granted Senior Priority Liens, and the Term Loan Agent hereby consents thereto, and (y) one or more Additional Agents, each on behalf of itself and any Additional Credit Facility Secured Parties represented thereby, may be granted Senior Priority Liens or Junior Priority Liens upon all of the Collateral in which the Term Loan Agent has been granted Senior Priority Liens, and the Term Loan Agent hereby consents thereto.

 

-21-


(e) The Initial Junior Priority Agent, for and on behalf of itself and the Initial Junior Priority Secured Parties, acknowledges and agrees that (x) the Term Loan Agent, for the benefit of itself and the Term Loan Secured Parties, has been granted Senior Priority Liens upon all of the Collateral in which the Initial Junior Priority Agent has been granted Junior Priority Liens, and the Initial Junior Priority Agent hereby consents thereto, and (y) one or more Additional Agents, each on behalf of itself and any Additional Credit Facility Secured Parties represented thereby, may be granted Senior Priority Liens or Junior Priority Liens upon all of the Collateral in which the Initial Junior Priority Agent has been granted Junior Priority Liens, and the Initial Junior Priority Agent hereby consents thereto.

(f) Each Additional Agent, for and on behalf of itself and any Additional Credit Facility Secured Parties represented thereby, acknowledges and agrees that, (x) the Term Loan Agent, for the benefit of itself and the Term Loan Secured Parties, has been granted Senior Priority Liens upon all of the Collateral in which such Additional Agent is being granted Liens, and such Additional Agent hereby consents thereto, (y) concurrently herewith, the Initial Junior Priority Agent, for the benefit of itself and the Initial Junior Priority Secured Parties, has been granted Junior Priority Liens upon all of the Collateral in which such Additional Agent is being granted Liens, and such Additional Agent hereby consents thereto, and (z) one or more other Additional Agents, each on behalf of itself and any Additional Credit Facility Secured Parties represented thereby, have been or may be granted Senior Priority Liens or Junior Priority Liens upon all of the Collateral in which such Additional Agent is being granted Liens, and such Additional Agent hereby consents thereto.

(g) The subordination of Liens by each Junior Priority Agent in favor of the Senior Priority Agents shall not be deemed to subordinate the Liens of any Junior Priority Agent to the Liens of any other Person. The provision of pari passu and equal priority as between Liens of any Senior Priority Agent and Liens of any other Senior Priority Agent, in each case as set forth herein, shall not be deemed to provide that the Liens of the Senior Priority Agent will be pari passu or of equal priority with the Liens of any other Person, or to subordinate any Liens of any Senior Priority Agent to the Liens of any Person. The provision of pari passu and equal priority as between Liens of any Junior Priority Agent and Liens of any other Junior Priority Agent, in each case as set forth herein, shall not be deemed to provide that the Liens of the Junior Priority Agent will be pari passu or of equal priority with the Liens of any other Person.

(h) So long as the Discharge of Senior Priority Obligations has not occurred, the parties hereto agree that in the event that any Borrower shall, or shall permit any other Grantor to, grant or permit any additional Liens, or take any action to perfect any additional Liens, on any asset or property to secure any Junior Priority Obligation and have not also granted a Lien on such asset or property to secure the Senior Priority Obligations and taken all actions to perfect such Liens, then, without limiting any other rights and remedies available to any Senior Priority Agent and/or the other Senior Priority Secured Parties, each Junior Priority Agent, on behalf of itself and the Junior Lien Secured Parties for which it is a Junior Priority Agent, and each other Junior Priority Secured Party (by its acceptance of the benefits of the Junior Priority Documents), agrees that any amounts received by or distributed to any of them pursuant to or as a result of Liens granted in contravention of this Section 2.1(h) shall be subject to Section 4.1(e).

Section 2.2 Waiver of Right to Contest Liens .

(a) Each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, agrees that it and they shall not (and hereby waives any right to) take any action to contest or challenge (or assist or support any other Person in contesting or challenging), directly or indirectly, whether or not in any proceeding (including in any Insolvency Proceeding), the validity, priority, enforceability, or perfection of the Liens of any Senior Priority Agent or any Senior Priority

 

-22-


Creditor in respect of the Collateral, or the provisions of this Agreement. Except to the extent expressly set forth in this Agreement, each Junior Priority Agent, for itself and on behalf of the Junior Priority Creditors represented thereby, agrees that no Junior Priority Agent or Junior Priority Creditor will take any action that would interfere with any Exercise of Secured Creditor Remedies undertaken by any Senior Priority Agent or any Senior Priority Creditor under the Senior Priority Documents with respect to the Collateral. Except to the extent expressly set forth in this Agreement, each Junior Priority Agent, for itself and on behalf of the Junior Priority Creditors represented thereby, hereby waives any and all rights it or such Junior Priority Creditors may have as a junior lien creditor or otherwise to contest, protest, object to or interfere with the manner in which any Senior Priority Agent or any Senior Priority Creditor seeks to enforce its Liens in any Collateral.

(b) The assertion of priority rights established under the terms of this Agreement shall not be considered a challenge to Lien priority of any Party prohibited by this Section 2.2.

Section 2.3 Remedies Standstill .

(a) Each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, agrees that, until the date upon which the Discharge of Senior Priority Obligations shall have occurred, such Junior Priority Agent and such Junior Priority Creditors:

(i) will not Exercise Any Secured Creditor Remedies with respect to the Collateral without the written consent of the Senior Priority Representative; provided that any Junior Priority Agent may Exercise Any Secured Creditor Remedies (other than any Secured Creditor Remedies the exercise of which is otherwise prohibited by this Agreement, including, without limitation, Section 6) after a period of 180 consecutive days has elapsed from the date of delivery of written notice by such Junior Priority Agent to each Senior Priority Agent stating that an Event of Default (as defined under the applicable Junior Priority Credit Facility) has occurred and is continuing thereunder and stating its intention to Exercise Any Secured Creditor Remedies (the “ Standstill Period ”), and then such Junior Priority Agent may Exercise Any Secured Creditor Remedies only so long as (1) no Event of Default relating to the payment of interest, principal, fees or other Senior Priority Obligations shall have occurred and be continuing and (2) no Senior Priority Secured Party shall have commenced (or attempted to commence or given notice of its intent to commence) the Exercise of Secured Creditor Remedies with respect to the Collateral (including seeking relief from the automatic stay or any other stay in any Insolvency Proceeding), and

(ii) will not take, receive or accept any Proceeds of the Collateral, it being understood and agreed that the temporary deposit of Proceeds of Collateral in a Deposit Account controlled by the Junior Priority Representative shall not constitute a breach of this Agreement so long as such Proceeds are promptly remitted to the Senior Priority Representative.

From and after the date upon which the Discharge of Senior Priority Obligations shall have occurred (or prior thereto upon obtaining the written consent of each Senior Priority Agent), any Junior Priority Agent and any Junior Priority Creditor may Exercise Any Secured Creditor Remedies under the Junior Priority Documents or applicable law as to any Collateral; provided , however , that any Exercise of Secured Creditor Remedies with respect to any Collateral by any Junior Priority Agent or any Junior Priority Creditor is at all times subject to the provisions of this Agreement, including Section 4.1.

 

-23-


(b) Any Senior Priority Agent, on behalf of itself and any Senior Priority Creditors represented thereby, agrees that such Senior Priority Agent and such Senior Priority Creditors will not Exercise Any Secured Creditor Remedies with respect to any of the Collateral without the written consent of the Senior Priority Representative and will not take, receive or accept any Proceeds of Collateral (except as may be separately otherwise agreed in writing by and between or among all Senior Priority Agents, in each case on behalf of itself and the Senior Priority Creditors represented thereby), it being understood and agreed that the temporary deposit of Proceeds of Collateral in a Deposit Account controlled by such Senior Priority Agent shall not constitute a breach of this Agreement so long as such Proceeds are promptly remitted to the Senior Priority Representative; provided that nothing in this sentence shall prohibit any Senior Priority Agent from taking such actions in its capacity as Senior Priority Representative, if applicable. The Senior Priority Representative may Exercise Any Secured Creditor Remedies under the Senior Priority Collateral Documents or applicable law as to any Collateral; provided , however , that any Exercise of Secured Creditor Remedies with respect to any Collateral by the Senior Priority Representative is at all times subject to the provisions of this Agreement, including Section 4.1 hereof and of the Base Intercreditor Agreement.

Section 2.4 Exercise of Rights .

(a) No Other Restrictions . Except as expressly set forth in this Agreement, each Agent and each Creditor shall have any and all rights and remedies it may have as a creditor under applicable law, including the right to the Exercise of Secured Creditor Remedies (except as may be separately otherwise agreed in writing by and between or among any applicable Parties, solely as among such Parties and the Creditors represented thereby); provided, however, that the Exercise of Secured Creditor Remedies with respect to the Collateral shall be subject to the Lien Priority and to the provisions of this Agreement, including Section 4.1. Each Senior Priority Agent may enforce the provisions of the applicable Senior Priority Documents, each Junior Priority Agent may enforce the provisions of the applicable Junior Priority Documents, and each Agent may Exercise Any Secured Creditor Remedies, all in such order and in such manner as each may determine in the exercise of its sole discretion, consistent with the terms of this Agreement and mandatory provisions of applicable law (except as may be separately otherwise agreed in writing by and between or among any applicable Parties, solely as among such Parties and the Creditors represented thereby); provided , however , that each Agent agrees to provide to each other such Party copies of any notices that it is required under applicable law to deliver to any Credit Party; provided , further , however , that any Senior Priority Agent’s failure to provide any such copies to any other such Party shall not impair any Senior Priority Agent’s rights hereunder or under any of the applicable Senior Priority Documents, and any Junior Priority Agent’s failure to provide any such copies to any other such Party shall not impair any Junior Priority Agent’s rights hereunder or under any of the applicable Junior Priority Documents. Each Agent agrees for and on behalf of itself and each Creditor represented thereby that such Agent and each such Creditor will not institute any suit or other proceeding or assert in any suit, Insolvency Proceeding or other proceeding any claim, (x) in the case of any Junior Priority Agent and any Junior Priority Creditor represented thereby, against any Senior Priority Secured Party, and (y) in the case of any Senior Priority Agent and any Senior Priority Creditor represented thereby, against any Junior Priority Secured Party, seeking damages from or other relief by way of specific performance, instructions or otherwise, with respect to any action taken or omitted to be taken by such Person with respect to the Collateral that is consistent with the terms of this Agreement, and none of such Persons shall be liable for any such action taken or omitted to be taken. Except as may be separately otherwise agreed in writing by and between or among any applicable Senior Priority Agents, in each case on behalf of itself and the Senior Priority Creditors represented thereby, each Senior Priority Agent agrees for and on behalf of any Senior Priority Creditors represented thereby that such Agent and each such Creditor will not institute any suit or other proceeding or assert in any suit, Insolvency Proceeding or other proceeding any claim against any other Senior Priority Agent or any Senior Priority Creditor represented thereby seeking damages from or other relief by way of specific performance, instructions or otherwise, with respect to any action taken or omitted to be taken by such Person with respect to the Collateral that is consistent

 

-24-


with the terms of this Agreement, and none of such Persons shall be liable for any such action taken or omitted to be taken. Except as may be separately otherwise agreed in writing by and between or among any Junior Priority Agents, in each case on behalf of itself and the Junior Priority Creditors represented thereby, each Junior Priority Agent agrees for and on behalf of any Junior Priority Creditors represented thereby that such Agent and each such Creditor will not institute any suit or other proceeding or assert in any suit, Insolvency Proceeding or other proceeding any claim against any other Junior Priority Agent or any Junior Priority Creditor represented thereby seeking damages from or other relief by way of specific performance, instructions or otherwise, with respect to any action taken or omitted to be taken by such Person with respect to the Collateral that is consistent with the terms of this Agreement, and none of such Persons shall be liable for any such action taken or omitted to be taken.

(b) Release of Liens . Without limiting any release permitted under the Base Intercreditor Agreement, in the event of (A) any private or public sale of all or any portion of the Collateral in connection with any Exercise of Secured Creditor Remedies by or with the consent of the Senior Priority Representative, (B) any sale, transfer or other disposition of all or any portion of the Collateral, so long as such sale, transfer or other disposition is then permitted by the Senior Priority Documents, or (C) the release of the Senior Priority Secured Parties’ Liens on all or any portion of the Collateral which release under Clause (C) shall have been approved by all of the requisite Senior Priority Secured Parties (as determined pursuant to the applicable Senior Priority Documents), in the case of clauses (B) and (C) only to the extent occurring prior to the Discharge of Senior Priority Obligations and not in connection with a Discharge of Senior Priority Obligations (and irrespective of whether an Event of Default has occurred), each Junior Priority Agent agrees, for and on behalf of itself and the Junior Priority Creditors represented thereby, that (x) so long as, if applicable, the net cash proceeds of any such sale, if any, described in clause (A) above are applied as provided in Section 4.1 of the Base Intercreditor Agreement as supplemented by Section 4.1 hereof, such sale or release will be free and clear of the Liens on such Collateral securing the Junior Priority Obligations and (y) such Junior Priority Secured Parties’ Liens with respect to the Collateral so sold, transferred, disposed or released shall terminate and be automatically released without further action. In furtherance of, and subject to, the foregoing, each Junior Priority Agent agrees that it will execute any and all Lien releases or other documents reasonably requested by any Senior Priority Agent in connection therewith, so long as the net cash proceeds, if any, from such sale described in clause (A) above of such Collateral are applied in accordance with the terms of this Agreement. Each Junior Priority Agent hereby appoints the Senior Priority Representative and any officer or duly authorized person of the Senior Priority Representative, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power of attorney in the place and stead of such Junior Priority Agent and in the name of such Junior Priority Agent or in the Senior Priority Representative’s own name, from time to time, in the Senior Priority Representative’s sole discretion, for the purposes of carrying out the terms of this paragraph, to take any and all appropriate action and to execute and deliver any and all documents and instruments as may be necessary or desirable to accomplish the purposes of this paragraph, including, without limitation, any financing statements, endorsements, assignments, releases or other documents or instruments of transfer (which appointment, being coupled with an interest, is irrevocable).

Section 2.5 [RESERVED] .

Section 2.6 Waiver of Marshalling . Until the Discharge of Senior Priority Obligations, each Junior Priority Agent, on behalf of itself and the Junior Priority Secured Parties represented thereby, agrees not to assert and hereby waives, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or otherwise claim the benefit of, any marshalling, appraisal, valuation or other similar right that may otherwise be available under applicable law with respect to the Collateral or any other similar rights a junior secured creditor may have under applicable law.

 

-25-


ARTICLE III

ACTIONS OF THE PARTIES

Section 3.1 Certain Actions Permitted . Notwithstanding anything herein to the contrary, (a) each Agent may make such demands or file such claims in respect of the Senior Priority Obligations or Junior Priority Obligations, as applicable, owed to such Agent and the Creditors represented thereby as are necessary to prevent the waiver or bar of such claims under applicable statutes of limitations or other statutes, court orders, or rules of procedure at any time, (b) in any Insolvency Proceeding commenced by or against the Borrower or any other Credit Party, the Junior Priority Agent or the Junior Priority Creditors may file a proof of claim or statement of interest with respect to the Junior Priority Obligations, (c) the Junior Priority Creditors shall be entitled to file any necessary responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made by any person objecting to or otherwise seeking the disallowance of the claims of the Junior Priority Creditors, including without limitation any claims secured by the Collateral, if any, in each case if not otherwise in contravention of the terms of this Agreement, (d) the Junior Priority Creditors shall be entitled to file any pleadings, objections, motions or agreements which assert rights or interests available to unsecured creditors of the Credit Parties arising under either the Bankruptcy Law or applicable non-bankruptcy law, in each case if not otherwise in contravention of the terms of this Agreement, (e) the Junior Priority Creditors shall be entitled to file any proof of claim and other filings and make any arguments and motions in order to preserve or protect its Liens on the Collateral that are, in each case, not otherwise in contravention of the terms of this Agreement, with respect to the Junior Priority Obligations and the Collateral and (f) the Junior Priority Agent or any Junior Priority Creditor may exercise any of its rights or remedies with respect to the Collateral after the termination of the Standstill Period to the extent permitted by Section 2.3 above.

Section 3.2 Agent for Perfection .

(a) Subject to the provisions of the Base Intercreditor Agreement with respect to ABL Priority Collateral, each Credit Party shall deliver all Control Collateral when required to be delivered pursuant to the Credit Documents to (x) until the Discharge of Senior Priority Obligations, the Senior Priority Representative and (y) thereafter, the Junior Priority Representative.

(b) None of the Senior Priority Agents, the Senior Priority Representative or the Senior Priority Secured Parties shall be responsible for perfecting and maintaining the perfection of Liens with respect to the Collateral for the benefit of the Junior Priority Representatives or the Junior Priority Secured Parties.

(c) [RESERVED].

(d) Subject to the provisions of the Base Intercreditor Agreement with respect to ABL Priority Collateral, in the event that any Secured Party receives any Collateral or Proceeds of the Collateral in violation of the terms of this Agreement, then such Secured Party shall promptly pay over such Proceeds or Collateral to (x) until the Discharge of Senior Priority Obligations, the Senior Priority Representative, and (y) thereafter, the Junior Priority Representative, in the same form as received with any necessary endorsements, for application in accordance with the provisions of Section 4.1 of the Base Intercreditor Agreement, as supplemented by Section 4.1 hereof.

Section 3.3 Sharing of Information and Access . In the event that any Junior Priority Agent shall, in the exercise of its rights under the applicable Junior Priority Collateral Documents or otherwise, receive possession or control of any books and records of any Credit Party that contain information identifying or pertaining to the Collateral, such Junior Priority Agent shall, upon request from any other Agent,

 

-26-


and as promptly as practicable thereafter, either make available to such Agent such books and records for inspection and duplication or provide to such Agent copies thereof. In the event that any Senior Priority Agent shall, in the exercise of its rights under the applicable Senior Priority Collateral Documents or otherwise, receive possession or control of any books and records of any Senior Priority Credit Party that contain information identifying or pertaining to the Senior Priority Collateral, such Senior Priority Agent shall, upon request from any other Senior Priority Agent, and as promptly as practicable thereafter, either make available to such Senior Priority Agent such books and records for inspection and duplication or provide to such Senior Priority Agent copies thereof.

Section 3.4 Insurance . Proceeds of Collateral include insurance proceeds and, therefore, the Lien Priority shall govern the ultimate disposition of casualty insurance proceeds. Subject to the provisions of the Base Intercreditor Agreement with respect to ABL Priority Collateral, the Senior Priority Representative shall be named as additional insured or loss payee, as applicable, with respect to all insurance policies relating to Collateral. Subject to the provisions of the Base Intercreditor Agreement with respect to ABL Priority Collateral, the Senior Priority Representative shall have the sole and exclusive right, as against any Secured Party, to adjust settlement of insurance claims in the event of any covered loss, theft or destruction of Collateral. Subject to the provisions of the Base Intercreditor Agreement with respect to ABL Priority Collateral, all proceeds of such insurance shall be remitted to the Senior Priority Representative, and each other Agent shall cooperate (if necessary) in a reasonable manner in effecting the payment of insurance proceeds in accordance with Section 4.1.

Section 3.5 No Additional Rights for the Credit Parties Hereunder . Except as provided in Section 3.6, if any Secured Party shall enforce its rights or remedies in violation of the terms of this Agreement, the Credit Parties shall not be entitled to use such violation as a defense to any action by any Secured Party, nor to assert such violation as a counterclaim or basis for set off or recoupment against any Secured Party.

Section 3.6 Actions upon Breach . If any Junior Priority Secured Party, contrary to this Agreement, commences or participates in any action or proceeding against the Credit Parties or the Collateral, the Credit Parties, with the prior written consent of the Senior Priority Representative, may interpose as a defense or dilatory plea the making of this Agreement, and any Senior Priority Secured Party may intervene and interpose such defense or plea in its own name or in the name of the Credit Parties. Should any Junior Priority Secured Party, contrary to this Agreement, in any way take, or attempt or threaten to take, any action with respect to the Collateral (including, without limitation, any attempt to realize upon or enforce any remedy with respect to this Agreement), or fail to take any action required by this Agreement, any Senior Priority Agent (in its own name or in the name of the Credit Parties) may obtain relief against such Junior Priority Secured Party by injunction, specific performance and/or other appropriate equitable relief, it being understood and agreed by each Junior Priority Agent, for and on behalf of itself and each Junior Priority Creditor represented thereby, that the Senior Priority Secured Parties’ damages from such actions may be difficult to ascertain and may be irreparable, and each Junior Priority Agent on behalf of itself and each Junior Priority Secured Creditor represented thereby, waives any defense that the Senior Priority Secured Parties cannot demonstrate damage or be made whole by the awarding of damages.

 

-27-


ARTICLE IV

APPLICATION OF PROCEEDS

Section 4.1 Application of Proceeds .

(a) Revolving Nature of Certain Term Loan Obligations . Each Agent, for and on behalf of itself and the Secured Parties represented thereby, expressly acknowledges and agrees that (i) Term Loan Credit Agreements may include a revolving commitment, that in the ordinary course of business any Term Loan Agent and Term Loan Credit Agreement Lender may apply payments and make advances thereunder and (ii) the amount of Term Loan Obligations that may be outstanding thereunder at any time or from time to time may be increased or reduced and subsequently reborrowed, and that the terms of Term Loan Obligations thereunder may be modified, extended or amended from time to time, and that the aggregate amount of Term Loan Obligations thereunder may be increased, replaced or refinanced, in each event, without notice to or consent by the any other Secured Parties and without affecting the provisions hereof; provided, however, that from and after the date on which any Term Loan Agent or Term Loan Credit Agreement Lender commences the Exercise of Any Secured Creditor Remedies, all amounts received by any such Term Loan Agent or Term Loan Credit Agreement Lender shall be applied as specified in this Section 4.1. The Lien Priority shall not be altered or otherwise affected by any such amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement or refinancing of the Term Loan Obligations, the Initial Junior Priority Obligations, or any Additional Obligations, or any portion thereof.

(b) Revolving Nature of Certain Additional Obligations . Each Agent, for and on behalf of itself and the Secured Parties represented thereby, expressly acknowledges and agrees that (x) Additional Credit Facilities may include a revolving commitment, that in the ordinary course of business any Additional Agent and Additional Credit Facility Secured Parties may apply payments and make advances thereunder and (y) the amount of Additional Obligations that may be outstanding thereunder at any time or from time to time may be increased or reduced and subsequently reborrowed, and that the terms of Additional Obligations thereunder may be modified, extended or amended from time to time, and that the aggregate amount of Additional Obligations thereunder may be increased, replaced or refinanced, in each event, without notice to or consent by the any other Secured Parties and without affecting the provisions hereof; provided, however, that from and after the date on which any Additional Agent or Additional Credit Facility Secured Party commences the Exercise of Any Secured Creditor Remedies, all amounts received by any such Additional Agent or Additional Credit Facility Secured Party shall be applied as specified in this Section 4.1. The Lien Priority shall not be altered or otherwise affected by any such amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement or refinancing of the Term Loan Obligations, the Initial Junior Priority Obligations, or any Additional Obligations, or any portion thereof.

(c) Application of Proceeds of Collateral . This Agreement constitutes a separate agreement in writing as contemplated by clauses 4.1(c) third and 4.1(d) second of the Base Intercreditor Agreement. The parties hereto agree that any proceeds of Collateral to be allocated under such clauses of the Base Intercreditor Agreement will be allocated first to the Senior Priority Obligations in accordance with the Base Intercreditor Agreement until a Discharge of Senior Priority Obligations shall have occurred and then only after such Discharge of Senior Priority Obligations shall have occurred to the Junior Priority Obligations.

(d) Limited Obligation or Liability . In exercising remedies, whether as a secured creditor or otherwise, no Senior Priority Agent shall have any obligation or liability to any Junior Priority Secured Party, or (except as may be separately agreed in writing by and between or among any applicable Senior Priority Agents, in each case on behalf of itself and the Senior Priority Creditors represented thereby) to any other Senior Priority Secured Party, in each case regarding the adequacy of any Proceeds or for any action or omission, save and except solely for an action or omission that breaches the express obligations undertaken by such Senior Priority Agent under the terms of this Agreement. In exercising remedies, whether as a secured creditor or otherwise, no Junior Priority Agent shall have any obligation

 

-28-


or liability (except as may be separately agreed in writing by and between or among any applicable Junior Priority Agents, in each case on behalf of itself and the Junior Priority Creditors represented thereby) to any other Junior Priority Secured Party, in each case regarding the adequacy of any Proceeds or for any action or omission, save and except solely for an action or omission that breaches the express obligations undertaken by such Junior Priority Agent under the terms of this Agreement.

(e) Turnover of Cash Collateral After Discharge . Subject to the obligations of each Senior Priority Agent under the Base Intercreditor Agreement with respect to ABL Priority Collateral, upon the Discharge of Senior Priority Obligations, each Senior Priority Agent shall deliver to the Junior Priority Representative or shall execute such documents as the Company or as the Junior Priority Representative (if a Junior Priority Agent other than a Designated Agent) may reasonably request to enable it to have control over any Cash Collateral or Control Collateral still in such Senior Priority Agent’s possession, custody or control in the same form as received with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct. As between any Junior Priority Agent and any other Junior Priority Agent, any such Cash Collateral or Control Collateral held by any such Party shall be held by it subject to the terms and conditions of Section 3.2.

Section 4.2 Specific Performance . Each Agent is hereby authorized to demand specific performance of this Agreement, whether or not any Credit Party shall have complied with any of the provisions of any of the Credit Documents, at any time when any other Party shall have failed to comply with any of the provisions of this Agreement applicable to it. Each Agent, for and on behalf of itself and the Secured Parties represented thereby, hereby irrevocably waives any defense based on the adequacy of a remedy at law that might be asserted as a bar to such remedy of specific performance.

 

-29-


ARTICLE V

INTERCREDITOR ACKNOWLEDGEMENTS AND WAIVERS

Section 5.1 Notice of Acceptance and Other Waivers .

(a) All Senior Priority Obligations at any time made or incurred by any Credit Party shall be deemed to have been made or incurred in reliance upon this Agreement, and each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, hereby waives notice of acceptance of, or proof of reliance by any Senior Priority Agent or any Senior Priority Creditors on, this Agreement, and notice of the existence, increase, renewal, extension, accrual, creation, or nonpayment of all or any part of the Senior Priority Obligations.

(b) None of the Senior Priority Agents, the Senior Priority Creditors, or any of their respective Affiliates, or any of the respective directors, officers, employees, or agents of any of the foregoing, shall be liable for failure to demand, collect, or realize upon any of the Collateral or any Proceeds, or for any delay in doing so, or shall be under any obligation to sell or otherwise dispose of any Collateral or Proceeds thereof or to take any other action whatsoever with regard to the Collateral or any part or Proceeds thereof, except as specifically provided in this Agreement. If any Senior Priority Agent or Senior Priority Creditor honors (or fails to honor) a request by any Borrower for an extension of credit pursuant to any Senior Priority Credit Facility or any other Senior Priority Document, whether or not such Senior Priority Agent or Senior Priority Creditor has knowledge that the honoring of (or failure to honor) any such request would constitute a default under the terms of any Junior Priority Credit Facility or any other Junior Priority Document (but not a default under this Agreement) or would constitute an act, condition, or event that, with the giving of notice or the passage of time, or both, would constitute such a default, or if any Senior Priority Agent or Senior Priority Creditor otherwise should exercise any of its contractual rights or remedies under any Senior Priority Documents (subject to the express terms and conditions hereof), no Senior Priority Agent or Senior Priority Creditor shall have any liability whatsoever to any Junior Priority Agent or Junior Priority Creditor as a result of such action, omission, or exercise, in each case so long as any such exercise does not breach the express terms and provisions of this Agreement. Each Senior Priority Secured Party shall be entitled to manage and supervise its loans and extensions of credit under the relevant Senior Priority Credit Facility and other Senior Priority Documents as it may, in its sole discretion, deem appropriate, and may manage its loans and extensions of credit without regard to any rights or interests that the Junior Priority Agents or Junior Priority Creditors have in the Collateral, except as otherwise expressly set forth in this Agreement. Each Junior Priority Agent, on behalf of itself and the Junior Priority Creditors represented thereby, agrees that no Senior Priority Agent or Senior Priority Creditor shall incur any liability as a result of a sale, lease, license, application, or other disposition of all or any portion of the Collateral or Proceeds thereof pursuant to the Senior Priority Documents, in each case so long as such disposition is conducted in accordance with mandatory provisions of applicable law and does not breach the provisions of this Agreement.

Section 5.2 Modifications to Senior Priority Documents and Junior Priority Documents .

(a) Each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, hereby agrees that, without affecting the obligations of such Junior Priority Secured Parties hereunder, each Senior Priority Agent and the Senior Priority Creditors represented thereby may, at any time and from time to time, in their sole discretion without the consent of or notice to any such Junior Priority Secured Party (except to the extent such notice or consent is required pursuant to the express provisions of this Agreement), and without incurring any liability to any such Junior Priority Secured Party or impairing or releasing the subordination provided for herein, amend, restate, supplement, replace, refinance, extend, consolidate, restructure, or otherwise modify any of the Senior Priority Documents in any manner whatsoever, including, to:

 

-30-


(i) change the manner, place, time, or terms of payment or renew, alter or increase, all or any of the Senior Priority Obligations or otherwise amend, restate, supplement, or otherwise modify in any manner, or grant any waiver or release with respect to, all or any part of the Senior Priority Obligations or any of the Senior Priority Documents;

(ii) subject to Section 2.5 of the Base Intercreditor Agreement, retain or obtain a Lien on any Property of any Person to secure any of the Senior Priority Obligations, and in connection therewith to enter into any additional Senior Priority Documents;

(iii) amend, or grant any waiver, compromise, or release with respect to, or consent to any departure from, any guaranty or other obligations of any Person obligated in any manner under or in respect of the Senior Priority Obligations;

(iv) release its Lien on any Collateral or other Property;

(v) exercise or refrain from exercising any rights against any Credit Party or any other Person;

(vi) retain or obtain the primary or secondary obligation of any other Person with respect to any of the Senior Priority Obligations; and

(vii) otherwise manage and supervise the Senior Priority Obligations as the applicable Senior Priority Agent shall deem appropriate.

(b) Each Senior Priority Agent, for and on behalf of itself and the Senior Priority Creditors represented thereby, hereby agrees that, without affecting the obligations of such Senior Priority Secured Parties hereunder, each Junior Priority Agent and the Junior Priority Creditors represented thereby may, at any time and from time to time, in their sole discretion without the consent of or notice to any such Senior Priority Secured Party (except to the extent such notice or consent is required pursuant to the express provisions of this Agreement), and without incurring any liability to any such Senior Priority Secured Party or impairing or releasing the priority provided for herein, amend, restate, supplement, replace, refinance, extend, consolidate, restructure, or otherwise modify any of the Junior Priority Documents in any manner whatsoever, including, to:

(i) change the manner, place, time, or terms of payment or renew, alter or increase, all or any of the Junior Priority Obligations or otherwise amend, restate, supplement, or otherwise modify in any manner, or grant any waiver or release with respect to, all or any part of the Junior Priority Obligations or any of the Junior Priority Documents;

(ii) subject to Section 2.5 of the Base Intercreditor Agreement, retain or obtain a Lien on any Property of any Person to secure any of the Junior Priority Obligations, and in connection therewith to enter into any additional Junior Priority Documents;

(iii) amend, or grant any waiver, compromise, or release with respect to, or consent to any departure from, any guaranty or other obligations of any Person obligated in any manner under or in respect of the Junior Priority Obligations;

(iv) release its Lien on any Collateral or other Property;

 

-31-


(v) exercise or refrain from exercising any rights against any Credit Party or any other Person;

(vi) retain or obtain the primary or secondary obligation of any other Person with respect to any of the Junior Priority Obligations; and

(vii) otherwise manage and supervise the Junior Priority Obligations as the Junior Priority Agent shall deem appropriate.

(c) Each Junior Priority Agent, for and on behalf of itself and the Junior Priority Secured Parties represented thereby, agrees that each Junior Priority Collateral Document shall include the following language (or language to similar effect):

“Notwithstanding anything herein to the contrary, the lien and security interest granted to [name of Junior Priority Agent] pursuant to this Agreement and the exercise of any right or remedy by [name of Junior Priority Agent] hereunder are subject to the provisions of the Intercreditor Agreement, dated as of [        ], 20[    ] (as amended, restated, supplemented or otherwise modified, replaced or refinanced from time to time, the “ Junior Lien Intercreditor Agreement ”), initially among[        ], as Term Loan Agent, [        ], as Initial Junior Priority Agent, and certain other persons party or that may become party thereto from time to time. In the event of any conflict between the terms of the Junior Lien Intercreditor Agreement and this Agreement, the terms of the Junior Lien Intercreditor Agreement shall govern and control.”

In addition, each Junior Priority Agent, for and on behalf of itself and the Junior Priority Secured Parties represented thereby, agrees that each Junior Priority Collateral Document consisting of a mortgage covering any Collateral consisting of real estate shall contain language appropriate to reflect the subordination of such Junior Priority Collateral Documents to the Senior Priority Documents covering such Collateral.

(d) Except, in each case, as may be separately otherwise agreed in writing by and between or among any applicable Senior Priority Agents, in each case on behalf of itself and the Senior Priority Creditors represented thereby, and except as otherwise provided in the Base Intercreditor Agreement, each Senior Priority Agent, for and on behalf of itself and the Senior Priority Creditors represented thereby, hereby agrees that, without affecting the obligations of such Senior Priority Secured Parties hereunder, any other Senior Priority Agent and any Senior Priority Creditors represented thereby may, at any time and from time to time, in their sole discretion without the consent of or notice to any such Senior Priority Secured Party (except to the extent such notice or consent is required pursuant to the express provisions of this Agreement), and without incurring any liability to any such Senior Priority Secured Party, amend, restate, supplement, replace, refinance, extend, consolidate, restructure, or otherwise modify any of the Senior Priority Documents to which such other Senior Priority Agent or any Senior Priority Creditor represented thereby is party or beneficiary in any manner whatsoever, including, to:

(i) change the manner, place, time, or terms of payment or renew, alter or increase, all or any of the Senior Priority Obligations or otherwise amend, restate, supplement, or otherwise modify in any manner, or grant any waiver or release with respect to, all or any part of the Senior Priority Obligations or any of the Senior Priority Documents;

(ii) subject to Section 2.5 of the Base Intercreditor Agreement, retain or obtain a Lien on any Property of any Person to secure any of the Senior Priority Obligations, and in connection therewith to enter into any Senior Priority Documents;

 

-32-


(iii) amend, or grant any waiver, compromise, or release with respect to, or consent to any departure from, any guaranty or other obligations of any Person obligated in any manner under or in respect of the Senior Priority Obligations;

(iv) release its Lien on any Collateral or other Property;

(v) exercise or refrain from exercising any rights against any Credit Party or any other Person;

(vi) retain or obtain the primary or secondary obligation of any other Person with respect to any of the Senior Priority Obligations; and

(vii) otherwise manage and supervise the Senior Priority Obligations as such other Senior Priority Agent shall deem appropriate.

(e) Except, in each case, as may be separately otherwise agreed in writing by and between or among any applicable Junior Priority Agents, in each case on behalf of itself and the Junior Priority Creditors represented thereby, each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, hereby agrees that, without affecting the obligations of such Junior Priority Secured Parties hereunder, any other Junior Priority Agent and any Junior Priority Creditors represented thereby may, at any time and from time to time, in their sole discretion without the consent of or notice to any such Junior Priority Secured Party (except to the extent such notice or consent is required pursuant to the express provisions of this Agreement), and without incurring any liability to any such Junior Priority Secured Party, amend, restate, supplement, replace, refinance, extend, consolidate, restructure, or otherwise modify any of the Junior Priority Documents to which such other Junior Priority Agent or any Junior Priority Creditor represented thereby is party or beneficiary in any manner whatsoever, including, to:

(i) change the manner, place, time, or terms of payment or renew, alter or increase, all or any of the Junior Priority Obligations or otherwise amend, restate, supplement, or otherwise modify in any manner, or grant any waiver or release with respect to, all or any part of the Junior Priority Obligations or any of the Junior Priority Documents;

(ii) subject to Section 2.5 of the Base Intercreditor Agreement, retain or obtain a Lien on any Property of any Person to secure any of the Junior Priority Obligations, and in connection therewith to enter into any Junior Priority Documents;

(iii) amend, or grant any waiver, compromise, or release with respect to, or consent to any departure from, any guaranty or other obligations of any Person obligated in any manner under or in respect of the Junior Priority Obligations;

(iv) release its Lien on any Collateral or other Property;

(v) exercise or refrain from exercising any rights against any Credit Party or any other Person;

(vi) retain or obtain the primary or secondary obligation of any other Person with respect to any of the Junior Priority Obligations; and

(vii) otherwise manage and supervise the Junior Priority Obligations as such other Junior Priority Agent shall deem appropriate.

 

-33-


(f) The Senior Priority Obligations and the Junior Priority Obligations may be refunded, replaced or refinanced, in whole or in part, in each case, without notice to, or the consent (except to the extent a consent is required to permit the refunding, replacement or refinancing transaction under any Senior Priority Document or any Junior Priority Document) of any Senior Priority Agent, Senior Priority Creditors, Junior Priority Agent or Junior Priority Creditors, as the case may be, all without affecting the Lien Priorities provided for herein or the other provisions hereof. If the indebtedness refunding, replacing or refinancing any such Senior Priority Obligations or Junior Priority Obligations is to constitute Senior Priority Obligations or Junior Priority Obligations hereunder (as designated by the Company), as the case may be, the holders of such indebtedness (or an authorized agent or trustee on their behalf) shall bind themselves in writing to the terms of this Agreement pursuant to a joinder substantially in the form of Exhibit C hereto or otherwise in form and substance reasonably satisfactory to the Senior Priority Agents (other than any Designated Agent) and Junior Priority Agents (other than any Designated Agent) (or, if there is no continuing Agent other than Designated Agents, as designated by the Company), and any such refunding, replacement or refinancing transaction shall be in accordance with any applicable provisions of the Senior Priority Documents and the Junior Priority Documents. For the avoidance of doubt, the Senior Priority Obligations and Junior Priority Obligations may be refunded, replaced or refinanced, in whole or in part, in each case, without notice to, or the consent (except to the extent a consent is required to permit the refunding, replacement or refinancing transaction under any Senior Priority Document or any Junior Priority Document) of any Senior Priority Agent, Senior Priority Creditors, Junior Priority Agent or Junior Priority Creditors, as the case may be, through the incurrence of Additional Indebtedness, subject to Section 7.11.

Section 5.3 Reinstatement and Continuation of Agreement . If any Senior Priority Agent or Senior Priority Creditor is required in any Insolvency Proceeding or otherwise to turn over or otherwise pay to the estate of any Credit Party or any other Person any payment made in satisfaction of all or any portion of the Senior Priority Obligations (a “ Senior Priority Recovery ”), then the Senior Priority Obligations shall be reinstated to the extent of such Senior Priority Recovery. If this Agreement shall have been terminated prior to such Senior Priority Recovery, this Agreement shall be reinstated in full force and effect in the event of such Senior Priority Recovery, and such prior termination shall not diminish, release, discharge, impair, or otherwise affect the obligations of the Parties from such date of reinstatement. All rights, interests, agreements, and obligations of each Agent, each Senior Priority Creditor, and each Junior Priority Creditor under this Agreement shall remain in full force and effect and shall continue irrespective of the commencement of, or any discharge, confirmation, conversion, or dismissal of, any Insolvency Proceeding by or against any Credit Party or any other circumstance which otherwise might constitute a defense available to, or a discharge of, any Credit Party in respect of the Senior Priority Obligations or the Junior Priority Obligations. No priority or right of any Senior Priority Agent or any Senior Priority Creditor shall at any time be prejudiced or impaired in any way by any act or failure to act on the part of any Borrower or any Guarantor or by the noncompliance by any Person with the terms, provisions, or covenants of any of the Senior Priority Documents, regardless of any knowledge thereof which any Senior Priority Agent or any Senior Priority Creditor may have.

ARTICLE VI

INSOLVENCY PROCEEDINGS

Section 6.1 DIP Financing .

(a) If any Borrower or any Guarantor shall be subject to any Insolvency Proceeding in the United States at any time after the Discharge of ABL Collateral Obligation (as defined in the Base Intercreditor Agreement) and prior to the Discharge of Senior Priority Obligations, and any Senior

 

-34-


Priority Agent, or any Senior Priority Creditors, shall agree to provide any Borrower or any Guarantor with, or consent to a third party providing, any financing under Section 364 of the Bankruptcy Code or consent to any order for the use of cash collateral under Section 363 of the Bankruptcy Code (“ DIP Financing ”), with such DIP Financing to be secured by all or any portion of the Collateral (including assets that, but for the application of Section 552 of the Bankruptcy Code would be Collateral), then any Junior Priority Agent, each on behalf of itself and any Junior Priority Secured Parties, agrees that it will raise no objection and will not support any objection to such DIP Financing or to the Liens securing the same on the grounds of a failure to provide “adequate protection” for the Liens of any Junior Priority Agent securing the Junior Priority Obligations or on any other grounds (and will not request any adequate protection solely as a result of such DIP Financing), so long as (i) each Junior Priority Agent retains its Lien on the Collateral to secure the Junior Priority Obligations (in each case, including Proceeds thereof arising after the commencement of the case under the Bankruptcy Code) and such Lien has the same priority as existed prior to the commencement of the case under the Bankruptcy Code and (ii) if the Senior Priority Agent receives an adequate protection Lien on post-petition assets of the debtor to secure the Senior Priority Obligations, as the case may be, the Junior Priority Agent also receives an adequate protection Lien on such post-petition assets of the debtor to secure the Junior Priority Obligations, provided that (x) such Liens in favor of the Senior Priority Agent and the Junior Priority Agent shall be subject to the provisions of Section 6.1(b) hereof and (y) the foregoing provisions of this Section 6.1(a) shall not prevent the Junior Priority Agent and the Junior Priority Secured Parties from objecting to any provision in any DIP Financing relating to any provision or content of a plan of reorganization.

(b) All Liens granted to any Senior Priority Agent or Junior Priority Agent in any Insolvency Proceeding, whether as adequate protection or otherwise, are intended by the Parties to be and shall be deemed to be subject to the Lien Priority and the other terms and conditions of this Agreement.

Section 6.2 Relief from Stay . Until the Discharge of Senior Priority Obligations has occurred, each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, agrees not to seek relief from the automatic stay or any other stay in any Insolvency Proceeding in respect of any portion of the Collateral without each Senior Priority Agent’s express written consent.

Section 6.3 No Contest . Each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, agrees that, prior to the Discharge of Senior Priority Obligations, none of them shall contest (or support any other Person contesting) (i) any request by any Senior Priority Agent or Senior Priority Creditor for adequate protection of its interest in the Collateral or (ii) any objection by any Senior Priority Agent or Senior Priority Creditor to any motion, relief, action or proceeding based on a claim by such Senior Priority Agent or Senior Priority Creditor that its interests in the Collateral are not adequately protected (or any other similar request under any law applicable to an Insolvency Proceeding), so long as any Liens granted to such Senior Priority Agent as adequate protection of its interests are subject to this Agreement. Except as may be separately otherwise agreed in writing by and between or among any applicable Senior Priority Agents, in each case on behalf of itself and any Senior Priority Creditors represented thereby, any Senior Priority Agent, for and on behalf of itself and any Senior Priority Creditors represented thereby, agrees that, prior to the applicable Discharge of Senior Priority Obligations, none of them shall contest (or support any other Person contesting) (a) any request by any other Senior Priority Agent or any Senior Priority Creditor represented by such other Senior Priority Agent for adequate protection of its interest in the Collateral, or (b) any objection by such other Senior Priority Agent or any Senior Priority Creditor to any motion, relief, action, or proceeding based on a claim by such other Senior Priority Agent or any Senior Priority Creditor represented by such other Senior Priority Agent that its interests in the Collateral are not adequately protected (or any other similar request under any law applicable to an Insolvency Proceeding), so long as any Liens granted to such other Senior Priority Agent as adequate protection of its interests are subject to this Agreement.

 

-35-


Section 6.4 Asset Sales . Each Junior Priority Agent agrees, for and on behalf of itself and the Junior Priority Creditors represented thereby, that it will not oppose any sale consented to by any Senior Priority Agent of any Collateral pursuant to Section 363(f) of the Bankruptcy Code (or any similar provision under the law applicable to any Insolvency Proceeding) so long as the proceeds of such sale are applied in accordance with the Base Intercreditor Agreement as supplemented by this Agreement.

Section 6.5 Separate Grants of Security and Separate Classification . Each Secured Party acknowledges and agrees that (i) the grants of Liens pursuant to the Senior Priority Security Documents and the Junior Priority Security Documents constitute separate and distinct grants of Liens and (ii) because of, among other things, their differing rights in the Collateral, the Senior Priority Obligations are fundamentally different from the Junior Priority Obligations and must be separately classified in any plan of reorganization proposed or adopted in an Insolvency Proceeding. To further effectuate the intent of the parties as provided in the immediately preceding sentence, if it is held that the claims of the Senior Priority Secured Parties, on the one hand, and the Junior Priority Secured Parties, on the other hand, in respect of the Collateral constitute only one secured claim (rather than separate classes of senior and junior secured claims), then the Secured Parties hereby acknowledge and agree that all distributions shall be made as if there were separate classes of Senior Priority Obligation claims and Junior Priority Obligation claims against the Credit Parties, with the effect being that, to the extent that the aggregate value of the Collateral is sufficient (for this purpose ignoring all claims held by the Junior Priority Secured Parties), the Senior Priority Secured Parties shall be entitled to receive, in addition to amounts distributed to them in respect of principal, prepetition interest and other claims, all amounts owing in respect of postpetition interest that is available from the Collateral for each of the Senior Priority Secured Parties, before any distribution is made in respect of the claims held by the Junior Priority Secured Parties, with the Junior Priority Secured Parties hereby acknowledging and agreeing to turn over to the Senior Priority Secured Parties amounts otherwise received or receivable by them to the extent necessary to effectuate the intent of this sentence, even if such turnover has the effect of reducing the aggregate recoveries. The foregoing sentence is subject to any separate agreement by and between any Additional Agent, on behalf of itself and the Additional Credit Facility Secured Parties represented thereby, and any other Agent, on behalf of itself and the Creditors represented thereby, with respect to the Obligations owing to any such Additional Agent and Additional Credit Facility Secured Parties.

Section 6.6 Enforceability . The provisions of this Agreement are intended to be and shall be enforceable under Section 510(a) of the Bankruptcy Code.

Section 6.7 Senior Priority Obligations Unconditional . All rights of the Senior Priority Agents hereunder, and all agreements and obligations of the Junior Priority Agents and the Credit Parties (to the extent applicable) hereunder, shall remain in full force and effect irrespective of:

(a) any lack of validity or enforceability of any Senior Priority Document;

(b) any change in the time, place or manner of payment of, or in any other term of, all or any portion of the Senior Priority Obligations, or any amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of any Senior Priority Document;

(c) any exchange, release, voiding, avoidance or non perfection of any security interest in any Collateral or any other collateral, or any release, amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding, restatement or increase of all or any portion of the Senior Priority Obligations or any guarantee or guaranty thereof;

 

-36-


(d) the commencement of any Insolvency Proceeding in respect of the Borrower or any other Credit Party; or

(e) any other circumstances that otherwise might constitute a defense available to, or a discharge of, any Credit Party in respect of the Senior Priority Obligations, or of any of the Junior Priority Agent or any Credit Party, to the extent applicable, in respect of this Agreement.

Section 6.8 Junior Priority Obligations Unconditional . All rights of the Junior Priority Agents hereunder, and all agreements and obligations of the Senior Priority Agents and the Credit Parties (to the extent applicable) hereunder, shall remain in full force and effect irrespective of:

(a) any lack of validity or enforceability of any Junior Priority Document;

(b) any change in the time, place or manner of payment of, or in any other term of, all or any portion of the Junior Priority Obligations, or any amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of any Junior Priority Document;

(c) any exchange, release, voiding, avoidance or non perfection of any security interest in any Collateral, or any other collateral, or any release, amendment, waiver or other modification, whether by course of conduct or otherwise, or any refinancing, replacement, refunding, restatement or increase of all or any portion of the Junior Priority Obligations or any guarantee or guaranty thereof;

(d) the commencement of any Insolvency Proceeding in respect of any Credit Party; or

(e) any other circumstances that otherwise might constitute a defense available to, or a discharge of, any Credit Party in respect of the Junior Priority Obligations, or of any of the Senior Priority Agent or any Credit Party, to the extent applicable, in respect of this Agreement.

Section 6.9 Adequate Protection . Except as expressly provided in this Agreement (including, without limitation, Section 6.1), nothing in this Agreement shall limit the rights of any Agent and the Secured Parties represented thereby from seeking or requesting adequate protection with respect to their interests in the applicable Collateral in any Insolvency Proceeding, including adequate protection in the form of a cash payment, periodic cash payments, cash payments of interest, additional collateral or otherwise; provided that (a) in the event that any Junior Priority Agent, on behalf of itself or any of the Junior Priority Creditors represented thereby, seeks or requests adequate protection in respect of the Junior Priority Obligations and such adequate protection is granted in the form of additional collateral comprising assets of the type of assets that constitute Collateral, then each Junior Priority Agent, on behalf of itself and the Junior Priority Creditors represented thereby, agrees that each Senior Priority Agent shall also be granted a senior Lien on such collateral as security for the Senior Priority Obligations and that any Lien on such collateral securing the Junior Priority Obligations shall be subordinate to any Lien on such collateral securing the Senior Priority Obligations and (b) in the event that any Senior Priority Agent, for or on behalf of itself or any Senior Priority Creditor represented thereby, seeks or requests adequate protection in respect of the Senior Priority Obligations and such adequate protection is granted in the form of additional collateral comprising assets of the type of assets that constitute Collateral, then such Senior Priority Agent, for and on behalf of itself and the Senior Priority Creditors represented thereby, agrees that each other Senior Priority Agent shall also be granted a pari passu Lien on such collateral as security for the Senior Priority Obligations owing to such other Senior Priority Agent and the Senior Priority Secured Parties represented thereby, and that any such Lien on such collateral securing such Senior Priority

 

-37-


Obligations shall be pari passu to each such other Lien on such collateral securing such other Senior Priority Obligations (except as may be separately otherwise agreed in writing by and between or among any applicable Senior Priority Agents, in each case on behalf of itself and the Senior Priority Secured Parties represented thereby).

ARTICLE VII

MISCELLANEOUS

Section 7.1 Rights of Subrogation . Each Junior Priority Agent, for and on behalf of itself and the Junior Priority Creditors represented thereby, agrees that no payment by such Junior Priority Agent or any such Junior Priority Creditor to any Senior Priority Agent or Senior Priority Creditor pursuant to the provisions of this Agreement shall entitle such Junior Priority Agent or Junior Priority Creditor to exercise any rights of subrogation in respect thereof until the Discharge of Senior Priority Obligations with respect to the Senior Priority Obligations owed to such Senior Priority Creditors shall have occurred. Following the Discharge of Senior Priority Obligations with respect to the Senior Priority Obligations owed to such Senior Priority Creditors, each Senior Priority Agent agrees to execute such documents, agreements, and instruments as any Junior Priority Agent or Junior Priority Creditor may reasonably request to evidence the transfer by subrogation to any such Person of an interest in the Senior Priority Obligations resulting from payments to such Senior Priority Agent by such Person, so long as all costs and expenses (including all reasonable legal fees and disbursements) incurred in connection therewith by such Senior Priority Agent are paid by such Person upon request for payment thereof.

Section 7.2 Further Assurances . The Parties will, at their own expense and at any time and from time to time, promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that any Party may reasonably request, in order to protect any right or interest granted or purported to be granted hereby or to enable such Party to exercise and enforce its rights and remedies hereunder; provided , however , that no Party shall be required to pay over any payment or distribution, execute any instruments or documents, or take any other action referred to in this Section 7.2, to the extent that such action would contravene any law, order or other legal requirement or any of the terms or provisions of this Agreement, and in the event of a controversy or dispute, such Party may interplead any payment or distribution in any court of competent jurisdiction, without further responsibility in respect of such payment or distribution under this Section 7.2.

Section 7.3 Representations . The Term Loan Agent represents and warrants to each other Agent that it has the requisite power and authority under the Term Loan Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of itself and the Term Loan Secured Parties. The Initial Junior Priority Agent represents and warrants to each other Agent that it has the requisite power and authority under the Initial Junior Priority Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of itself and the Initial Junior Priority Creditors. Each Additional Agent represents and warrants to each other Agent that it has the requisite power and authority under the applicable Additional Documents to enter into, execute, deliver, and carry out the terms of this Agreement on behalf of itself and any Additional Credit Facility Secured Parties represented thereby.

Section 7.4 Amendments .

(a) No amendment, modification or waiver of any provision of this Agreement, and no consent to any departure by any Party hereto, shall be effective unless it is in a written agreement executed by the Term Loan Agent, the Initial Junior Priority Agent and any Additional Agent. Notwithstanding the foregoing, the Company may, without the consent of any Party hereto, amend this Agreement to add an Additional Agent by (x) executing an Additional Indebtedness Joinder as provided in Section 7.11

 

-38-


or (y) executing a joinder agreement in the form of Exhibit C attached hereto as provided for in the definition of “Term Loan Credit Agreement” or “Initial Junior Priority Credit Facility”, as applicable. No amendment, modification or waiver of any provision of this Agreement, and no consent to any departure therefrom by any Party hereto, that changes, alters, modifies or otherwise affects any power, privilege, right, remedy, liability or obligation of, or otherwise affects in any manner, any Additional Agent that is not then a Party, or any Additional Credit Facility Secured Party not then represented by an Additional Agent that is then a Party (including but not limited to any change, alteration, modification or other effect upon any power, privilege, right, remedy, liability or obligation of or other effect upon any such Additional Agent or Additional Credit Facility Secured Party that may at any subsequent time become a Party or beneficiary hereof) shall be effective unless it is consented to in writing by the Company (regardless of whether any such Additional Agent or Additional Credit Facility Secured Party ever becomes a Party or beneficiary hereof). Any amendment, modification or waiver of any provision of this Agreement that would have the effect, directly or indirectly, through any reference in any Credit Document to this Agreement or otherwise, of waiving, amending, supplementing or otherwise modifying any Credit Document, or any term or provision thereof, or any right or obligation of the Company or any other Credit Party thereunder or in respect thereof, shall not be given such effect except pursuant to a written instrument executed by the Company and each other affected Credit Party.

(b) In the event that any Senior Priority Agent or the requisite Senior Priority Creditors enter into any amendment, waiver or consent in respect of or replace any Senior Priority Collateral Document for the purpose of adding to, or deleting from, or waiving or consenting to any departures from any provisions of, any Senior Priority Collateral Document relating to the Collateral or changing in any manner the rights of the Senior Priority Agent, the Senior Priority Creditors, or any Credit Party with respect to the Collateral (including, subject to Section 2.4(b), the release of any Liens on Collateral), then such amendment, waiver or consent shall apply automatically to any comparable provision of each Junior Priority Collateral Document without the consent of or any actions by any Junior Priority Agent or any Junior Priority Creditors; provided, that such amendment, waiver or consent does not materially adversely affect the rights or interests of the Junior Priority Creditors in the Collateral. The applicable Senior Priority Agent shall give written notice of such amendment, waiver or consent to the Junior Priority Agents; provided that the failure to give such notice shall not affect the effectiveness of such amendment, waiver or consent with respect to the provisions of any Junior Priority Collateral Document as set forth in this Section 7.4(b).

Section 7.5 Addresses for Notices . Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given shall be in writing and may be personally served, faxed, or sent by overnight express courier service or United States mail and shall be deemed to have been given when delivered in person or by courier service, upon receipt of a facsimile or five (5) days after deposit in the United States mail (certified, with postage prepaid and properly addressed). For the purposes hereof, the addresses of the parties hereto (until notice of a change thereof is delivered as provided in this Section) shall be as set forth below or, as to each party, at such other address as may be designated by such party in a written notice to all of the other parties.

 

Term Loan Agent:               [            ]
   [            ]
   Attention: [                    ]
   Facsimile: [                    ]
   Telephone: [                    ]

 

-39-


Initial Junior Priority Agent:               [            ]
   [            ]
   Attention: [                    ]
   Facsimile: [                    ]
   Telephone: [                    ]

 

Any Additional Agent: As set forth in the Additional Indebtedness Joinder executed and delivered by such Additional Agent pursuant to Section 7.11.

Section 7.6 No Waiver, Remedies . No failure on the part of any Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

Section 7.7 Continuing Agreement, Transfer of Secured Obligations . This Agreement is a continuing agreement and shall (a) remain in full force and effect (x) with respect to all Senior Priority Secured Parties and Senior Priority Obligations, until the Discharge of Senior Priority Obligations shall have occurred, subject to Section 5.3 and (y) with respect to all Junior Priority Secured Parties and Junior Priority Obligations, until the later of the Discharge of the Senior Priority Obligations and the Discharge of the Junior Priority Obligations, (b) be binding upon the Parties and their successors and assigns, and (c) inure to the benefit of and be enforceable by the Parties and their respective successors, transferees and assigns. Nothing herein is intended, or shall be construed to give, any other Person any right, remedy or claim under, to or in respect of this Agreement or any Collateral, subject to Section 7.10. All references to any Credit Party shall include any Credit Party as debtor-in-possession and any receiver or trustee for such Credit Party in any Insolvency Proceeding. Without limiting the generality of the foregoing clause (c), any Senior Priority Agent, Senior Priority Creditor, Junior Priority Agent or Junior Priority Creditor may assign or otherwise transfer all or any portion of the Senior Priority Obligations or the Junior Priority Obligations, as applicable, to any other Person, and such other Person shall thereupon become vested with all the rights and obligations in respect thereof granted to such Senior Priority Agent, Junior Priority Agent, Senior Priority Creditor or Junior Priority Creditor, as the case may be, herein or otherwise. The Senior Priority Secured Parties and the Junior Priority Secured Parties may continue, at any time and without notice to the other Parties hereto, to extend credit and other financial accommodations, lend monies and provide indebtedness to, or for the benefit of, any Credit Party on the faith hereof.

Section 7.8 Governing Law; Entire Agreement . The validity, performance, and enforcement of this Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. This Agreement constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes any prior agreements, written or oral, with respect thereto (it being understood that this Agreement does not supersede the Base Intercreditor Agreement).

Section 7.9 Counterparts . This Agreement may be executed in any number of counterparts, and it is not necessary that the signatures of all Parties be contained on any one counterpart hereof; each counterpart will be deemed to be an original, and all together shall constitute one and the same document.

Section 7.10 No Third-Party Beneficiaries . This Agreement and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and its respective successors and assigns and shall inure to the benefit of each of the Senior Priority Agents, the Senior Priority Creditors, the Junior Priority Agents, the Junior Priority Creditors and the Company and the other Credit Parties. No other Person shall have or be entitled to assert rights or benefits hereunder.

 

-40-


Section 7.11 Designation of Additional Indebtedness; Joinder of Additional Agents .

(a) The Company may designate any Additional Indebtedness complying with the requirements of the definition of “Additional Indebtedness” as Additional Indebtedness for purposes of this Agreement, upon complying with the following conditions:

(i) one or more Additional Agents for one or more Additional Credit Facility Secured Parties in respect of such Additional Indebtedness shall have executed the Additional Indebtedness Joinder with respect to such Additional Indebtedness, and the Company or any such Additional Agent shall have delivered such executed Additional Indebtedness Joinder to the Term Loan Agent, the Initial Junior Priority Agent and any other Additional Agent then party to this Agreement;

(ii) at least five Business Days (unless a shorter period is agreed in writing by the Parties and the Company) prior to delivery of the Additional Indebtedness Joinder, the Company shall have delivered to the Term Loan Agent, the Initial Junior Priority Agent and any other Additional Agent then party to this Agreement complete and correct copies of any Additional Credit Facility, Additional Guaranties and Additional Collateral Documents that will govern such Additional Indebtedness upon giving effect to such designation (which may be unexecuted copies of Additional Documents to be executed and delivered concurrently with the effectiveness of such designation);

(iii) the Company shall have executed and delivered to the Term Loan Agent, the Initial Junior Priority Agent and any other Additional Agent then party to this Agreement the Additional Indebtedness Designation (including whether such Additional Indebtedness is designated Senior Priority Debt or Junior Priority Debt) with respect to such Additional Indebtedness;

(iv) all state and local stamp, recording, filing, intangible and similar taxes or fees (if any) that are payable in connection with the inclusion of such Additional Indebtedness under this Agreement shall have been paid and reasonable evidence thereof shall have been given to the Term Loan Agent, the Initial Junior Priority Agent and any other Additional Agent then party to this Agreement; and

(v) no Event of Default shall have occurred and be continuing.

No Additional Indebtedness may be designated both Senior Priority Debt and Junior Priority Debt.

(b) Upon satisfaction of the conditions specified in the preceding Section 7.11(a), the designated Additional Indebtedness shall constitute “ Additional Indebtedness ”, any Additional Credit Facility under which such Additional Indebtedness is or may be incurred shall constitute an “ Additional Credit Facility ”, any holder of such Additional Indebtedness or other applicable Additional Credit Facility Secured Party shall constitute an “ Additional Credit Facility Secured Party ”, and any Additional Agent for any such Additional Credit Facility Secured Party shall constitute an “ Additional Agent ” for all purposes under this Agreement. The date on which such conditions specified in clause (a) shall have been satisfied with respect to any Additional Indebtedness is herein called the “ Additional Effective Date ” with respect to such Additional Indebtedness. Prior to the Additional Effective Date with respect to any Additional Indebtedness, all references herein to Additional Indebtedness shall be deemed not to take into account such Additional Indebtedness, and the rights and obligations of the Term Loan Agent, the Initial Junior Priority Agent and each other Additional Agent then party to this Agreement shall be determined on the basis that such Additional Indebtedness is not then designated. On and after the Additional Effective Date with respect to such Additional Indebtedness, all references herein to Additional Indebtedness

 

-41-


shall be deemed to take into account such Additional Indebtedness, and the rights and obligations of the Term Loan Agent, the Initial Junior Priority Agent and each other Additional Agent then party to this Agreement shall be determined on the basis that such Additional Indebtedness is then designated.

(c) In connection with any designation of Additional Indebtedness pursuant to this Section 7.11, each of the Term Loan Agent, the Initial Junior Priority Agent and each Additional Agent then party hereto agrees at the Company’s expense (x) to execute and deliver any amendments, amendments and restatements, restatements or waivers of or supplements to or other modifications to, any Term Loan Collateral Documents, Initial Junior Priority Collateral Documents or Additional Collateral Documents, as applicable, and any agreements relating to any security interest in Control Collateral and Cash Collateral, and to make or consent to any filings or take any other actions, as may be reasonably deemed by the Company to be necessary or reasonably desirable for any Lien on any Collateral to secure such Additional Indebtedness to become a valid and perfected Lien (with the priority contemplated by the applicable Additional Indebtedness Designation delivered pursuant to this Section 7.11 and by this Agreement), and (y) otherwise to reasonably cooperate to effectuate a designation of Additional Indebtedness pursuant to this Section 7.11 (including, without limitation, if requested, by executing an acknowledgment of any Additional Indebtedness Joinder or of the occurrence of any Additional Effective Date).

Section 7.12 Senior Priority Representative; Notice of Senior Priority Representative Change . The Senior Priority Representative shall act for the Senior Priority Secured Parties as provided in this Agreement, and shall be entitled to so act at the direction of the Requisite Senior Priority Holders from time to time. Until a Party (other than the existing Senior Priority Representative) receives written notice from the existing Senior Priority Representative, in accordance with Section 7.5 of this Agreement, of a change in the identity of the Senior Priority Representative, such Party shall be entitled to act as if the existing Senior Priority Representative is in fact the Senior Priority Representative. Each Party (other than the existing Senior Priority Representative) shall be entitled to rely upon any written notice of a change in the identity of the Senior Priority Representative which facially appears to be from the then existing Senior Priority Representative and is delivered in accordance with Section 7.5 and such Agent shall not be required to inquire into the veracity or genuineness of such notice. Each existing Senior Priority Representative from time to time agrees to give prompt written notice to each Party of any change in the identity of the Senior Priority Representative.

Section 7.13 Term Loan Collateral Representative . Each Junior Priority Agent, on behalf of itself and the Junior Priority Creditors represented thereby, agrees that prior to the date upon which the Discharge of the Senior Priority Obligations shall have occurred, (x) such Junior Priority Agent shall be ineligible to act as the “Term Loan Collateral Representative” under the Base Intercreditor Agreement and shall not act in such capacity, and for purposes of determining the “Term Loan Collateral Representative” under the Base Intercreditor Agreement the Additional Obligations (as defined in the Base Intercreditor Agreement) of such Junior Priority Creditors shall be disregarded and deemed not obligations, (y) such Junior Priority Creditors shall be ineligible to vote on matters requiring the consent or approval of the “Requisite Term Loan Holders” under the Base Intercreditor Agreement and (z) the Additional Term Loan Obligations (as defined in the Base Intercreditor Agreement) of such Junior Priority Creditors shall be disregarded and deemed not outstanding for purposes of calculating “Requisite Term Loan Holders” under the Base Intercreditor Agreement.

Section 7.14 Provisions Solely to Define Relative Rights . The provisions of this Agreement are and are intended solely for the purpose of defining the relative rights of the Senior Priority Secured Parties and the Junior Priority Secured Parties, respectively. Nothing in this Agreement is intended to or shall impair the rights of the Company or any other Credit Party, or the obligations of the Company or any other Credit Party to pay the Term Loan Obligations, the Initial Junior Priority Obligations and any Additional Obligations as and when the same shall become due and payable in accordance with their terms.

 

-42-


Section 7.15 Headings . The headings of the articles and sections of this Agreement are inserted for purposes of convenience only and shall not be construed to affect the meaning or construction of any of the provisions hereof.

Section 7.16 Severability . If any of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement and shall not invalidate the Lien Priority or the application of Proceeds and other priorities set forth in this Agreement.

Section 7.17 Attorneys Fees . The Parties agree that if any dispute, arbitration, litigation, or other proceeding is brought with respect to the enforcement of this Agreement or any provision hereof, the prevailing party in such dispute, arbitration, litigation, or other proceeding shall be entitled to recover its reasonable attorneys’ fees and all other costs and expenses incurred in the enforcement of this Agreement, irrespective of whether suit is brought.

Section 7.18 VENUE; JURY TRIAL WAIVER .

(a) EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT RELATED THERETO, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

(b) EACH PARTY HERETO HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY HERETO REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

(c) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 7.5. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

-43-


Section 7.19 Intercreditor Agreement . This Agreement is the Junior Lien Intercreditor Agreement referred to in the Term Loan Credit Agreement, the Initial Junior Priority Credit Facility and each Additional Credit Facility. Nothing in this Agreement shall be deemed to subordinate the right of any Junior Priority Secured Party to receive payment to the right of any Senior Priority Secured Party (whether before or after the occurrence of an Insolvency Proceeding), it being the intent of the Parties that this Agreement shall effectuate a subordination of Liens as between the Senior Priority Secured Parties, on the one hand, and the Junior Priority Secured Parties, on the other hand, but not a subordination of Indebtedness.

Section 7.20 No Warranties or Liability . Each Party acknowledges and agrees that none of the other Parties has made any representation or warranty with respect to the execution, validity, legality, completeness, collectability or enforceability of any other Term Loan Document, any other Initial Junior Priority Document or any other Additional Document. Except as otherwise provided in this Agreement, each Party will be entitled to manage and supervise its respective extensions of credit to any Credit Party in accordance with law and their usual practices, modified from time to time as they deem appropriate.

Section 7.21 Conflicts . In the event of any conflict between the provisions of this Agreement and the provisions of any Term Loan Document, any Initial Junior Priority Document or any Additional Document, the provisions of this Agreement shall govern. Notwithstanding the foregoing, in the even of any conflict between the Base Intercreditor Agreement and this Agreement, the provisions of the Base Intercreditor Agreement shall control; provided , however , that as permitted by the Base Intercreditor Agreement this Agreement is intended to constitute a separate writing altering the rights between the Senior Priority Creditors on the one hand and the Junior Priority Creditors on the other hand. The parties hereto acknowledge that the terms of this Agreement are not intended to negate any specific rights granted to, or obligations of, the Company or any other Credit Party in the Term Loan Documents, the Initial Junior Priority Documents or any Additional Documents.

Section 7.22 Information Concerning Financial Condition of the Credit Parties . No Party has any responsibility for keeping any other Party informed of the financial condition of the Credit Parties or of other circumstances bearing upon the risk of nonpayment of the Term Loan Obligations, the Initial Junior Priority Obligations or any Additional Obligations, as applicable. Each Party hereby agrees that no Party shall have any duty to advise any other Party of information known to it regarding such condition or any such circumstances. In the event any Party, in its sole discretion, undertakes at any time or from time to time to provide any information to any other Party to this Agreement, it shall be under no obligation (a) to provide any such information to such other Party or any other Party on any subsequent occasion, (b) to undertake any investigation not a part of its regular business routine, or (c) to disclose any other information.

[Signature pages follow]

 

-44-


IN WITNESS WHEREOF, the Term Loan Agent, for and on behalf of itself and the Term Loan Secured Parties, and the Initial Junior Priority Agent, for and on behalf of itself and the Initial Junior Priority Creditors, have caused this Agreement to be duly executed and delivered as of the date first above written.

 

[            ], in its capacity as Term Loan Agent
By:  

 

  Name:
  Title:
By:  

 

  Name:
  Title:
[            ], in its capacity as Senior Priority Representative
By:  

 

  Name:
  Title:
By:  

 

  Name:
  Title:
[            ], in its capacity as Initial Junior Priority Agent
By:  

 

  Name:
  Title:
[[            ], in its capacity as Additional Agent
By:  

 

  Name:
  Title:] 6

 

 

6   Add signature block for any Additional Agents.

 

S-1


ACKNOWLEDGMENT

Each Credit Party hereby acknowledges that it has received a copy of this Agreement and consents thereto, agrees to recognize all rights granted thereby to the Term Loan Agent, the Term Loan Secured Parties, the Initial Junior Priority Agent, Initial Junior Priority Creditors, any Additional Agent and any Additional Credit Facility Secured Parties, and will not do any act or perform any obligation which is not in accordance with the agreements set forth in this Agreement.

CREDIT PARTIES:

 

BORROWER
By:  

 

  Name:
  Title:
[SUBSIDIARY GUARANTORS]
By:  

 

  Name:
  Title:

 

S-2


EXHIBIT A

ADDITIONAL INDEBTEDNESS DESIGNATION

DESIGNATION dated as of                  , 20    , by [COMPANY] 7 (the “ Company ”). Capitalized terms used herein and not otherwise defined herein shall have the meaning specified in the Junior Lien Intercreditor Agreement (as amended, supplemented, waived or otherwise modified from time to time, the “ Intercreditor Agreement ”) entered into as of [        ], 20[    ], among [        ], in its capacity as collateral agent (together with its successors and assigns in such capacity from time to time, and as further defined in the Intercreditor Agreement, the “ Term Loan Agent ”) for the Term Loan Secured Parties, [        ], in its capacity as collateral agent (together with its successors and assigns in such capacity from time to time, and as further defined in the Intercreditor Agreement, the “ Initial Junior Priority Agent ”) for the Initial Junior Priority Secured Parties[[        ], as Additional Agent for the Additional Credit Facility Creditors under the [describe applicable Additional Credit Facility]]. 8 Capitalized terms used herein and not otherwise defined herein shall have the meaning specified in the Intercreditor Agreement.

Reference is made to that certain [insert name of Additional Credit Facility], dated as of                  , 20     (the “ Additional Credit Facility ”), among [list any applicable Credit Party], [list Additional Credit Facility Secured Parties] [and Additional Agent, as agent (the “ Additional Agent ”)]. 9

Section 7.11 of the Intercreditor Agreement permits the Company to designate Additional Indebtedness under the Intercreditor Agreement. Accordingly:

Section 1.  Representations and Warranties . The Company hereby represents and warrants to the Term Loan Agent, the Initial Junior Priority Agent, and any Additional Agent that:

(1) The Additional Indebtedness incurred or to be incurred under the Additional Credit Facility constitutes “ Additional Indebtedness ” which complies with the definition of such term in the Intercreditor Agreement;

(2) all conditions set forth in Section 7.11 of the Intercreditor Agreement with respect to the Additional Indebtedness have been satisfied; and

(3) on the date hereof there does not exist, and after giving effect to the designation of such Additional Indebtedness there will not exist, any Event of Default.

Section 2.  Designation of Additional Indebtedness . The Company hereby designates such Additional Indebtedness as Additional Indebtedness under the Intercreditor Agreement and such Additional Indebtedness shall constitute [Senior Priority Debt] [Junior Priority Debt].

 

7   Revise as appropriate to refer to any permitted successor or assign.
8   Revise as appropriate to refer to any successor Term Loan Agent or Initial Junior Priority Agent and to add reference to any previously added Additional Agent.
9   Revise as appropriate to refer to the relevant Additional Credit Facility, Additional Creditors and any Additional Agent.

 

Ex. A-1


IN WITNESS WHEREOF, the undersigned has caused this Designation to be duly executed by its duly authorized officer or other representative, all as of the day and year first above written.

 

[COMPANY]
By:  

 

  Name:
  Title:

 

Ex. A-2


EXHIBIT B

ADDITIONAL INDEBTEDNESS JOINDER

JOINDER, dated as of                  , 20    , among [COMPANY], a Delaware corporation (“ Company ”), [        ], in its capacity as collateral agent (together with its successors and assigns in such capacity from time to time, and as further defined in the Intercreditor Agreement, the “ Term Loan Agent ”) 10 for the Term Loan Secured Parties, [        ], in its capacity as collateral agent (together with its successors and assigns in such capacity from time to time, and as further defined in the Intercreditor Agreement, the “ Initial Junior Priority Agent ”) 11 for the Initial Junior Priority Secured Parties, [list any previously added Additional Agent] [and insert name of each Additional Agent under any Additional Credit Facility being added hereby as party] and any successors or assigns thereof, to the Junior Lien Intercreditor Agreement dated as of [        ], 20[    ] (as amended, supplemented, waived or otherwise modified from time to time, the “ Intercreditor Agreement ”) among the Term Loan Agent, [and] the Initial Junior Priority Agent [and (list any previously added Additional Agent)]. Capitalized terms used herein and not otherwise defined herein shall have the meaning specified in the Intercreditor Agreement.

Reference is made to that certain [insert name of Additional Credit Facility], dated as of                  , 20     (the “ Additional Credit Facility ”), among [list any applicable Grantor], [list any applicable Additional Credit Facility Secured Parties (the “ Joining Additional Creditors ”)] [and insert name of each applicable Additional Agent (the “ Joining Additional Agent ”)]. 12

Section 7.11 of the Intercreditor Agreement permits the Company to designate Additional Indebtedness under the Intercreditor Agreement. The Company has so designated Additional Indebtedness incurred or to be incurred under the Additional Credit Facility as Additional Indebtedness by means of an Additional Indebtedness Designation.

Accordingly, [the Joining Additional Agent, for itself and on behalf of the Joining Additional Creditors,] 13 hereby agrees with the Term Loan Agent, the Initial Junior Priority Agent and any other Additional Agent party to the Intercreditor Agreement as follows:

Section 1. Agreement to be Bound . The [Joining Additional Agent, for itself and on behalf of the Joining Additional
Creditors,] 14 hereby agrees to be bound by the terms and provisions of the Intercreditor Agreement and shall, as of the Additional Effective Date with respect to the Additional Credit Facility, be deemed to be a party to the Intercreditor Agreement.

 

 

10   Revise as appropriate to refer to any successor Term Loan Agent.
11   Revise as appropriate to refer to any successor Initial Junior Priority Agent.
12   Revise as appropriate to refer to the relevant Additional Credit Facility, Additional Creditors and any Additional Agent.
13   Revise as appropriate to refer to any Additional Agent being added hereby and any Additional Creditors represented thereby.
14   Revise references throughout as appropriate to refer to the party or parties being added.

 

Ex. B-1


Section 2. Recognition of Claims . The Term Loan Agent (for itself and on behalf of the Term Loan Secured Parties), the Initial Junior Priority Agent (for itself and on behalf of the Initial Junior Priority Secured Parties) and [each of] the Additional Agent[s](for itself and on behalf of any Additional Credit Facility Secured Parties represented thereby) hereby agree that the interests of the respective Creditors in the Liens granted to the Term Loan Agent, the Initial Junior Priority Agent, or any Additional Agent, as applicable, under the applicable Credit Documents shall be treated, as among the Creditors, as having the priorities provided for in Section 2.1 of the Intercreditor Agreement, and shall at all times be allocated among the Creditors as provided therein regardless of any claim or defense (including without limitation any claims under the fraudulent transfer, preference or similar avoidance provisions of applicable bankruptcy, insolvency or other laws affecting the rights of creditors generally) to which the Term Loan Agent, the Initial Junior Priority Agent, any Additional Agent or any Creditor may be entitled or subject. The Term Loan Agent (for itself and on behalf of the Term Loan Secured Parties), the Initial Junior Priority Agent (for itself and on behalf of the Initial Junior Priority Creditors), and any Additional Agent party to the Intercreditor Agreement (for itself and on behalf of any Additional Credit Facility Secured Parties represented thereby) (a) recognize the existence and validity of the Additional Obligations represented by the Additional Credit Facility, and (b) agree to refrain from making or asserting any claim that the Additional Credit Facility or other applicable Additional Documents are invalid or not enforceable in accordance with their terms as a result of the circumstances surrounding the incurrence of such obligations. The [Joining Additional Agent (for itself and on behalf of the Joining Additional Creditors] (a) recognize[s] the existence and validity of the Term Loan Obligations and the existence and validity of the Initial Junior Priority Obligations 15 and (b) agree[s] to refrain from making or asserting any claim that the Term Loan Credit Agreement, the Initial Junior Priority Credit Facility or other Term Loan Documents or Initial Junior Priority Documents, 16 as the case may be, are invalid or not enforceable in accordance with their terms as a result of the circumstances surrounding the incurrence of such obligations.

Section 3.  Notices . Notices and other communications provided for under the Intercreditor Agreement to be provided to [the Joining Additional Agent] shall be sent to the address set forth on Annex 1 attached hereto (until notice of a change thereof is delivered as provided in Section 7.5 of the Intercreditor Agreement).

Section 4.  Miscellaneous THIS JOINDER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PRINCIPLES TO THE EXTENT THAT THE SAME ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD PERMIT OR REQUIRE THE APPLICATION OF LAWS OF ANOTHER JURISDICTION.

[ Add Signatures ]

 

 

 

15   Add reference to any previously added Additional Credit Facility and related Additional Obligations as appropriate.
16   Add reference to any previously added Additional Credit Facility and related Additional Documents as appropriate.

 

Ex. B-2


EXHIBIT C

[TERM LOAN CREDIT AGREEMENT][INITIAL JUNIOR PRIORITY CREDIT FACILITY] JOINDER

JOINDER, dated as of                     , 20    , among [        ], in its capacity as collateral agent (together with its successors and assigns in such capacity from time to time, and as further defined in the Intercreditor Agreement, the “ Term Loan Agent ”) 17 for the Term Loan Secured Parties, [ ], in its capacity as collateral agent (together with its successors and assigns in such capacity from time to time, and as further defined in the Intercreditor Agreement, the “ Initial Junior Priority Agent ”) 18 for the Initial Junior Priority Secured Parties, [list any previously added Additional Agent] [and insert name of additional Term Loan Secured Parties, Term Loan Agent, Initial Junior Priority Secured Parties or Initial Junior Priority Agent, as applicable, being added hereby as party] and any successors or assigns thereof, to the Junior Lien Intercreditor Agreement dated as of [        ], 20[    ] (as amended, supplemented, waived or otherwise modified from time to time, the “ Intercreditor Agreement ”) among the Term Loan Agent 19 , [and] the Initial Junior Priority Agent 20 [and (list any previously added Additional Agent)]. Capitalized terms used herein and not otherwise defined herein shall have the meaning specified in the Intercreditor Agreement.

Reference is made to that certain [insert name of new facility], dated as of                     , 20     (the “ Joining [Term Loan Credit Agreement][Initial Junior Priority Credit Facility ]”), among [list any applicable Credit Party], [list any applicable new Term Loan Secured Parties or new Initial Junior Priority Secured Parties, as applicable (the “ Joining [Term Loan][Initial Junior Priority] Secured Parties ”)] [and insert name of each applicable Agent (the “ Joining [Term Loan][Initial Junior Priority] Agent ”)]. 21

The Joining [Term Loan][Initial Junior Priority] Agent, for itself and on behalf of the Joining [Term Loan][Initial Junior Priority] 22 Secured Parties, hereby agrees with the Company and the other Grantors, the [Term Loan][Initial Junior Priority] Agent and any other Additional Agent party to the Intercreditor Agreement as follows:

Section 1. Agreement to be Bound . The [Joining [Term Loan][Initial Junior Priority] Agent, for itself and on behalf of the Joining [Term Loan][Initial Junior Priority] Secured Parties,] 23 hereby agrees to

 

 

17   Revise as appropriate to refer to any successor Term Loan Agent.
18   Revise as appropriate to refer to any successor Initial Junior Priority Agent.
19   Revise as appropriate to describe predecessor Term Loan Agent or Term Loan Secured Parties, if joinder is for a new Term Loan Credit Agreement.
20   Revise as appropriate to describe predecessor Initial Junior Priority Agent or Initial Junior Priority Secured Parties, if joinder is for a new Initial Junior Priority Credit Facility.
21   Revise as appropriate to refer to the new credit facility, Secured Parties and Agents.
22   Revise as appropriate to refer to any Agent being added hereby and any Secured Parties represented thereby.
23  

Revise references throughout as appropriate to refer to the party or parties being added.

 

Ex. C-1


be bound by the terms and provisions of the Intercreditor Agreement and shall, as of the date hereof, be deemed to be a party to the Intercreditor Agreement as [the][a] [Term Loan][Initial Junior Priority] Agent. As of the date hereof, the Joining [Term Loan Credit Agreement][Initial Junior Priority Credit Facility] shall be deemed [the][a] [Term Loan Credit Agreement][Initial Junior Priority Credit Facility] under the Intercreditor Agreement, and the obligations thereunder are subject to the terms and provisions of the Intercreditor Agreement.

Section 2.   Notices . Notices and other communications provided for under the Intercreditor Agreement to be provided to the Joining [Term Loan][Initial Junior Priority] Agent shall be sent to the address set forth on Annex 1 attached hereto (until notice of a change thereof is delivered as provided in Section 7.5 of the Intercreditor Agreement).

Section 3.   Miscellaneous THIS JOINDER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PRINCIPLES TO THE EXTENT THAT THE SAME ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD PERMIT OR REQUIRE THE APPLICATION OF LAWS OF ANOTHER JURISDICTION.

[ADD SIGNATURES]

 

Ex. C-2


EXHIBIT M

to

CREDIT AGREEMENT

FORM OF AFFILIATED LENDER ASSIGNMENT AND ASSUMPTION

Reference is made to the Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”; capitalized terms defined therein being used herein as therein defined), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “ Administrative Agent ”) for the Lenders and as collateral agent for the Secured Parties (as defined therein). Unless otherwise defined herein, capitalized terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

                     (the “ Assignor ”) and                      (the “ Assignee ”) agree as follows:

1. The Assignor hereby irrevocably sells and assigns to the Assignee without recourse to the Assignor, and the Assignee hereby irrevocably purchases and assumes from the Assignor without recourse to the Assignor, as of the Transfer Effective Date (as defined below), an interest (the “ Assigned Interest ”) as set forth in Schedule 1 in and to the Assignor’s rights and obligations under the Credit Agreement and the other Loan Documents with respect to those credit facilities provided for in the Credit Agreement as are set forth on Schedule 1 (individually, an “ Assigned Facility ”; collectively, the “ Assigned Facilities ”), in a principal amount for each Assigned Facility as set forth on Schedule 1 .

2. The Assignor (a) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Credit Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto, other than that it is the legal and beneficial owner of the Assigned Interest and that it has not created any adverse claim upon the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim; (b) makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower or any of its Subsidiaries or any other obligor or the performance or observance by the Borrower, any of its Subsidiaries or any other obligor of any of their respective obligations under the Credit Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto or thereto; and (c) attaches the Note(s), if any, held by it evidencing the Assigned Facilities [and requests that the Administrative Agent exchange such Note(s) for a new Note or Notes payable to the Assignee and (if the Assignor has retained any interest in the Assigned Facilities) a new Note or Notes payable to the Assignor in the respective amounts which reflect the assignment being made hereby (and after giving effect to any other assignments which have become effective on the Transfer Effective Date)]. 33 The Assignor acknowledges and agrees that in connection with this assignment, (1) the Assignee is an Affiliated Lender and it or its Affiliates may have, and later may come into possession of, information regarding the Loans or the Loan Parties that is not known to the Assignor and that may be material to a decision by such Assignor to assign the Assigned Interests (such information, the “ Excluded Information ”), (2) such Assignor has independently, without reliance on the

 

33  

Should only be requested when specifically required by the Assignee and/or the Assignor, as the case may be.


EXHIBIT M

to

CREDIT AGREEMENT

Page 2

 

Assignee, the Borrower, any of its Subsidiaries, any Agent or any other Lender or any of their respective Affiliates, made its own analysis and determination to participate in such assignment notwithstanding such Assignor’s lack of knowledge of the Excluded Information, (3) none of the Assignee, its Subsidiaries, the Agent, the other Lenders or any of their respective Affiliates shall have any liability to the Assignor, and the Assignor hereby waives and releases, to the extent permitted by law, any claims such may have against the Assignee, its Subsidiaries, the Agents, the other Lenders and their respective Affiliates, under applicable laws or otherwise, with respect to the nondisclosure of the Excluded Information and (4) the Excluded Information may not be available to the Agents or the other Lenders.

3. The Assignee (a) represents and warrants that (i) it is legally authorized to enter into this Assignment and Assumption (ii) it is an Affiliated Lender; (iii) [each of the terms and conditions set forth Section 11.6(h)(i) of the Credit Agreement have been satisfied with respect to this Assignment and Assumption;] 34 (b) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements referred to in Subsection 5.1 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption; (c) agrees that it will, independently and without reliance upon the Assignor, any Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; (d) [agrees that it shall not be permitted to attend or participate in, and shall not attend or participate in, any “lender-only” meetings or receive any related “lender-only” information;] 35 (e) appoints and authorizes each applicable Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement, the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are incidental thereto; (f) hereby affirms the acknowledgements and representations of such Assignee as a Lender contained in Subsection 10.5 of the Credit Agreement; and (g) agrees that it will be bound by the provisions of the Credit Agreement and will perform in accordance with the terms of the Credit Agreement all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender, including its obligations pursuant to Subsection 11.16 of the Credit Agreement, and, if it is organized under the laws of a jurisdiction outside the United States, its obligations pursuant to Subsection 4.11(b) of the Credit Agreement.

4. The effective date of this Assignment and Assumption shall be [              ], [          ] (the “ Transfer Effective Date ”). Following the execution of this Assignment and Assumption, it will be delivered to the Administrative Agent for acceptance by it and recording by the Administrative Agent pursuant to Subsection 11.6 of the Credit Agreement, effective as of the Transfer Effective Date (which shall not, unless otherwise agreed to by the Administrative Agent, be earlier than five Business Days after the date of such acceptance and recording by the Administrative Agent).

5. Upon such acceptance and recording, from and after the Transfer Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignee whether such amounts have accrued prior to the Transfer Effective Date or accrued subsequent to the Transfer Effective Date. The Assignor and the Assignee shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Transfer Effective Date or with respect to the making of this assignment directly between themselves.

 

 

34   Insert if Assignee is not an Affiliated Debt Fund.
35   Insert if Assignee is not an Affiliated Debt Fund.

 

Ex. M-2


EXHIBIT M

to

CREDIT AGREEMENT

Page 3

 

6. From and after the Transfer Effective Date, (a) the Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Assumption, have the rights and obligations of an Affiliated Lender thereunder and under the other Loan Documents and shall be bound by the provisions thereof and (b) the Assignor shall, to the extent provided in this Assignment and Assumption, relinquish its rights and be released from its obligations under the Credit Agreement, but shall nevertheless continue to be entitled to the benefits of (and bound by related obligations under) Subsections 4.10 , 4.11 , 4.12 , 4.13 and 11.5 thereof.

7. Notwithstanding any other provision hereof, if the consents of the Borrower and the Administrative Agent hereto are required under Subsection 11.6 of the Credit Agreement, this Assignment and Assumption shall not be effective unless such consents shall have been obtained.

8. This Assignment and Assumption shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to its principles or rules of conflict of laws to the extent such principles or rules are not mandatorily applicable by statute and would require or permit the application of the laws of another jurisdiction.

IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption to be executed as of the date first above written by their respective duly authorized officers on Schedule 1 hereto.

 

Ex. M-3


SCHEDULE 1

to

EXHIBIT M

ASSIGNMENT AND ACCEPTANCE

Re: Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein).

Name of Assignor: Name of Assignee:

Transfer Effective Date of Assignment:

 

Credit Facility Assigned

 

Aggregate Amount of Term

Loans for all Lenders

 

Amount of Term Loans

Assigned

       %   $             

 

[NAME OF ASSIGNEE]     [NAME OF ASSIGNOR]
By:  

 

    By:  

 

  Name:       Name:
  Title:       Title:


Accepted for recording in the Register :   Consented To :  

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

    [ENVISION HEALTHCARE CORPORATION  
By:  

 

    By:  

 

 
  Name:       Name:  
  Title:       Title:   ] 36
     

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

 
      By:  

 

 
        Name:  
        Title:  

 

 

36   Insert only as required by Subsection 11.6 of the Credit Agreement.


EXHIBIT N

to

CREDIT AGREEMENT

FORM OF ACCEPTANCE AND PREPAYMENT NOTICE

JPMORGAN CHASE BANK, N.A.,

     as Administrative Agent under the

     Credit Agreement referred to below

[                    ]

[DATE]

Attention: [                    ]

 

  Re: ENVISION HEALTHCARE CORPORATION

This Acceptance and Prepayment Notice is delivered to you pursuant to Subsection 4.4(i)(iv) of that certain Amended and Restated Credit Agreement (together with all exhibits and schedules thereto and as the same may be amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein). Capitalized terms used herein and not otherwise defined herein are used herein as defined in the Credit Agreement.

Pursuant to Subsection 4.4(i)(iv) of the Credit Agreement, the Borrower hereby notifies you that it accepts offers delivered in response to the Solicited Discounted Prepayment Notice having an Offered Discount equal to or greater than [●]% (the “ Acceptable Discount ”) in an aggregate amount not to exceed the Solicited Discounted Prepayment Amount.

The Borrower expressly agrees that this Acceptance and Prepayment Notice and is subject to the provisions of Subsection 4.4(i) of the Credit Agreement.

The Borrower hereby represents and warrants to the Administrative Agent [,][and] [the Lenders of the Initial Term Loans] [[and]] the Lenders of the [●, 20●] 37 Tranche[s]] as follows:

1. At the time of making the Discounted Term Loan Prepayment contemplated by Subsection 4.4(i)(iv) , after giving effect thereto, Total Liquidity is equal to or greater than $100.0 million.

 

 

37   List multiple Tranches if applicable.


2. [At least ten Business Days have passed since the consummation of the most recent Discounted Term Loan Prepayment as a result of a prepayment made by the Borrower on the applicable Discounted Prepayment Effective Date.][At least three Business Days have passed since the date the Borrower was notified that no Lender was willing to accept any prepayment of any Term Loan at the Specified Discount, within the Discount Range or at any discount to par value, as applicable, or in the case of Borrower Solicitation of Discounted Prepayment Offers, the date of the Borrower’s election not to accept any Solicited Discounted Prepayment Offers made by a Lender.] 38

The Borrower acknowledges that the Administrative Agent and the relevant Lenders are relying on the truth and accuracy of the foregoing representations and warranties in connection with the acceptance of any prepayment made in connection with a Solicited Discounted Prepayment Offer.

The Borrower requests that Administrative Agent promptly notify each of the relevant Lenders party to the Credit Agreement of this Acceptance and Prepayment Notice.

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

 

 

38   Insert applicable representation.


IN WITNESS WHEREOF, the undersigned has executed this Acceptance and Prepayment Notice as of the date first above written.

 

E NVISION H EALTHCARE C ORPORATION
By:  

 

  Name:
  Title:


EXHIBIT O

to

CREDIT AGREEMENT

FORM OF DISCOUNT RANGE PREPAYMENT NOTICE

JPMORGAN CHASE BANK, N.A.,

     as Administrative Agent under the

     Credit Agreement referred to below

[                    ]

[DATE]

Attention: [                    ]

 

  Re: ENVISION HEALTHCARE CORPORATION

This Discount Range Prepayment Notice is delivered to you pursuant to Subsection 4.4(i)(iii) of that certain Amended and Restated Credit Agreement (together with all exhibits and schedules thereto and as the same may be amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein). Capitalized terms used herein and not otherwise defined herein are used herein as defined in the Credit Agreement.

Pursuant to Subsection 4.4(i)(iii) of the Credit Agreement, the Borrower hereby requests that each [Lender of the Initial Term Loans] [[and] each Lender of the [●, 20●] 39 Tranche[s]] submit a Discount Range Prepayment Offer. Any Discounted Term Loan Prepayment made in connection with this solicitation shall be subject to the following terms:

1. This Borrower Solicitation of Discount Range Prepayment Offers is extended at the sole discretion of the Borrower to each [Lender of the Initial Term Loans] [[and to each] Lender of the [●, 20●] 40 Tranche[(s)]].

2. The maximum aggregate Outstanding Amount of the Discounted Term Loan Prepayment that will be made in connection with this solicitation is [$[●] of Initial Term Loans] [[and] $[●] of the [●, 20●] 41 Tranche[(s)] of Incremental Term Loans] (the “ Discount Range Prepayment Amount ”). 42

3. The Borrower is willing to make Discount Term Loan Prepayments at a percentage discount to par value greater than or equal to [●]% but less than or equal to [●]% (the “ Discount Range ”).

 

 

39   List multiple Tranches if applicable.
40   List multiple Tranches if applicable.
41   List multiple Tranches if applicable.
42   Minimum of $10.0 million and whole increments of $1.0 million.


To make an offer in connection with this solicitation, you are required to deliver to the Administrative Agent a Discount Range Prepayment Offer on or before 5:00 p.m. New York time on the date that is three Business Days following the dated delivery of the notice pursuant to Subsection 4.4(i)(i) of the Credit Agreement.

The Borrower hereby represents and warrants to the Administrative Agent and the [Lenders] [[and the] Lenders of the [●, 20●] 43 Tranche[s]] as follows:

1. At the time of making the Discounted Term Loan Prepayment contemplated by Subsection 4.4(i)(i) of the Credit Agreement, after giving effect thereto, Total Liquidity is equal to or greater than $100.0 million.

2. [At least ten Business Days have passed since the consummation of the most recent Discounted Term Loan Prepayment as a result of a prepayment made by the Borrower on the applicable Discounted Prepayment Effective Date.][At least three Business Days have passed since the date the Borrower was notified that no Lender was willing to accept any prepayment of any Term Loan at the Specified Discount, within the Discount Range or at any discount to par value, as applicable, or in the case of Borrower Solicitation of Discounted Prepayment Offers, the date of the Borrower’s election not to accept any Solicited Discounted Prepayment Offers made by a Lender.] 44

The Borrower acknowledges that the Administrative Agent and the relevant Lenders are relying on the truth and accuracy of the foregoing representations and warranties in connection with any Discount Range Prepayment Offer made in response to this Discount Range Prepayment Notice and the acceptance of any prepayment made in connection with this Discount Range Prepayment Notice.

The Borrower requests that Administrative Agent promptly notify each of the relevant Lenders party to the Credit Agreement of this Discount Range Prepayment Notice.

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

 

 

43   List multiple Tranches if applicable.
44   Insert applicable representation.


IN WITNESS WHEREOF, the undersigned has executed this Discount Range Prepayment Notice as of the date first above written.

 

E NVISION H EALTHCARE C ORPORATION
By:  

 

  Name:
  Title:

Enclosure: Form of Discount Range Prepayment Offer


EXHIBIT P

to

CREDIT AGREEMENT

FORM OF DISCOUNT RANGE PREPAYMENT OFFER

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent under the

Credit Agreement referred to below

[                    ]

[DATE]

Attention: [                    ]

 

  Re: E NVISION H EALTHCARE CORPORATION

Reference is made to (a) that certain Amended and Restated Credit Agreement (together with all exhibits and schedules thereto and as the same may be amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein) and (b) that certain Discount Range Prepayment Notice, dated              , 20      , from the Borrower (the “ Discount Range Prepayment Notice ”). Capitalized terms used herein and not otherwise defined herein are used herein as defined in the Credit Agreement.

The undersigned Lender hereby gives you irrevocable notice, pursuant to Subsection 4.4(i)(iii) of the Credit Agreement, that it is hereby offering to accept a Discounted Term Loan Prepayment on the following terms:

1. This Discount Range Prepayment Offer is available only for prepayment on the [Initial Term Loans] [[and the] [●, 20●] 45 Tranche[s]] held by the undersigned.

2. The maximum aggregate Outstanding Amount of the Discounted Term Loan Prepayment that may be made in connection with this offer shall not exceed (the “ Submitted Amount ”):

[Initial Term Loans - $[●]]

[[●, 20●] 46 Tranche[s] - $[●]]

 

 

45   List multiple Tranches if applicable.
46   List multiple Tranches if applicable.


3. The percentage discount to par value at which such Discounted Term Loan Prepayment may be made is [●]% (the “ Submitted Discount ”).

The undersigned Lender hereby expressly consents and agrees to a prepayment of its [Initial Term Loans] [[and its] [●, 20●] 47 Tranche[s]] indicated above pursuant to Subsection 4.4(i) of the Credit Agreement at a price equal to the Applicable Discount and in an aggregate Outstanding Amount not to exceed the Submitted Amount, as such amount may be reduced in accordance with the Discount Range Proration, if any, and as otherwise determined in accordance with and subject to the requirements of the Credit Agreement.

 

 

47   List multiple Tranches if applicable.


IN WITNESS WHEREOF, the undersigned has executed this Discount Range Prepayment Offer as of the date first above written.

 

[                                         ]
By:  

 

  Name
  Title:
By:  

 

  Name
  Title:


EXHIBIT Q

to

CREDIT AGREEMENT

FORM OF SOLICITED DISCOUNTED PREPAYMENT NOTICE

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent under the

Credit Agreement referred to below

[                    ]

[DATE]

Attention: [                    ]

 

  Re: ENVISION HEALTHCARE CORPORATION

This Solicited Discounted Prepayment Notice is delivered to you pursuant to Subsection 4.4(i)(iv) of that certain Amended and Restated Credit Agreement (together with all exhibits and schedules thereto and as the same may be amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein). Capitalized terms used herein and not otherwise defined herein are used herein as defined in the Credit Agreement.

Pursuant to Subsection 4.4(i)(iv) of the Credit Agreement, the hereby requests that [each Lender of the Initial Term Loans] [[and] each Lender of the [●, 20●] 48 Tranche[s]] submit a Solicited Discounted Prepayment Offer. Any Discounted Term Loan Prepayment made in connection with this solicitation shall be subject to the following terms:

1. This Borrower Solicitation of Discounted Prepayment Offers is extended at the sole discretion of the Borrower to each [Lender of the Initial Term Loans] [[and to each] Lender of the [●, 20●] 49 Tranche[s]].

2. The maximum aggregate Outstanding Amount of the Discounted Term Loan Prepayment that will be made in connection with this solicitation is (the “ Solicited Discounted Prepayment Amount ”): 50

[Initial Term Loans - $[●]]

 

 

48   List multiple Tranches if applicable.
49   List multiple Tranches if applicable.
50   Minimum of $10.0 million and whole increments of $1.0 million.


[[●, 20●] 51 Tranche[s] - $[●]]

To make an offer in connection with this solicitation, you are required to deliver to the Administrative Agent a Solicited Discounted Prepayment Offer on or before 5:00 p.m. New York time on the date that is three Business Days following delivery of this notice pursuant to Subsection 4.4(i)(iv) of the Credit Agreement.

The Borrower requests that Administrative Agent promptly notify each of the relevant Lenders party to the Credit Agreement of this Solicited Discounted Prepayment Notice.

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

 

 

51   List multiple Tranches if applicable.


IN WITNESS WHEREOF, the undersigned has executed this Solicited Discounted Prepayment Notice as of the date first above written.

 

E NVISION H EALTHCARE C ORPORATION
By:  

 

  Name:
  Title:

Enclosure: Form of Solicited Discounted Prepayment Offer


EXHIBIT R

to

CREDIT AGREEMENT

FORM OF SOLICITED DISCOUNTED PREPAYMENT OFFER

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent under the

Credit Agreement referred to below

[                    ]

[DATE]

Attention: [                    ]

 

  Re: ENVISION HEALTHCARE CORPORATION

Reference is made to (a) that certain Amended and Restated Credit Agreement (together with all exhibits and schedules thereto and as the same may be amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined therein) and (b) that certain Solicited Discounted Prepayment Notice, dated              , 20      , from the Borrower (the “ Solicited Discounted Prepayment Notice ”). Capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms in the Solicited Discounted Prepayment Notice or, to the extent not defined therein, in the Credit Agreement.

To accept the offer set forth herein, you must submit an Acceptance and Prepayment Notice on or before the third Business Day following your receipt of this notice.

The undersigned Lender hereby gives you irrevocable notice, pursuant to Subsection 4.4(i)(iv) of the Credit Agreement, that it is hereby offering to accept a Discounted Term Loan Prepayment on the following terms:

1. This Solicited Discounted Prepayment Offer is available only for prepayment on the [Initial Term Loans][[and the] [●, 20●] 52 Tranche[s]] held by the undersigned.

2. The maximum aggregate Outstanding Amount of the Discounted Term Loan Prepayment that may be made in connection with this offer shall not exceed (the “ Offered Amount ”):

[Initial Term Loans - $[●]]

 

 

52   List multiple Tranches if applicable.


[[●, 20●] 53 Tranche[s] - $[●]]

3. The percentage discount to par value at which such Discounted Term Loan Prepayment may be made is [●]% (the “ Offered Discount ”).

The undersigned Lender hereby expressly consents and agrees to a prepayment of its [Initial Term Loans] [[and its] [●, 20●] 54 Tranche[s]] pursuant to Subsection 4.4(i) of the Credit Agreement at a price equal to the Acceptable Discount and in an aggregate Outstanding Amount not to exceed such Lender’s Offered Amount as such amount may be reduced in accordance with the Solicited Discount Proration, if any, and as otherwise determined in accordance with and subject to the requirements of the Credit Agreement.

 

 

53   List multiple Tranches if applicable.
54   List multiple Tranches if applicable.


IN WITNESS WHEREOF, the undersigned has executed this Solicited Discounted Prepayment Offer as of the date first above written.

 

[                                         ]
By:  

 

  Name
  Title:
By:  

 

  Name
  Title:


EXHIBIT S

to

CREDIT AGREEMENT

FORM OF SPECIFIED DISCOUNT PREPAYMENT NOTICE

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent under the

Credit Agreement referred to below

[                    ]

[DATE]

Attention: [                    ]

 

  Re: ENVISION HEALTHCARE CORPORATION

This Specified Discount Prepayment Notice is delivered to you pursuant to Subsection 4.4(i)(ii) of that certain Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “ Administrative Agent ”) for the Lenders and as collateral agent for the Secured Parties (as defined therein). Capitalized terms used herein and not otherwise defined herein are used herein as defined in the Credit Agreement.

Pursuant to Subsection 4.4(i)(ii) of the Credit Agreement, the Borrower hereby offers to make a Discounted Term Loan Prepayment to each [Lender of the Initial Term Loans] [[and to each] Lender of the [●, 20●] 1 Tranche[s]] on the following terms:

1. This Borrower Offer of Specified Discount Prepayment is available only to each [Lender of the Initial Term Loans] [[and to each] Lender of the [●, 20●] 2 Tranche[s]].

2. The maximum aggregate Outstanding Amount of the Discounted Term Loan Prepayment that will be made in connection with this offer shall not exceed $[●] of the [Initial Term Loans] [[and $[●] of the] [●, 20●] 3 Tranche[(s)] of Incremental Term Loans] (the “ Specified Discount Prepayment Amount ”). 4

3. The percentage discount to par value at which such Discounted Term Loan Prepayment will be made is [●]% (the “ Specified Discount ”).

To accept this offer, you are required to submit to the Administrative Agent a Specified Discount Prepayment Response on or before 5:00 p.m. New York time on the date that is three ( 3 ) Business Days following the date of delivery of this notice pursuant to Subsection 4.4(i)(ii) of the Credit Agreement.

 

 

1   List multiple Tranches if applicable.
2   List multiple Tranches if applicable.
3   List multiple Tranches if applicable.
4   Minimum of $10.0 million and whole increments of $1.0 million.


The Borrower hereby represents and warrants to the Administrative Agent [and the Lenders] [[and] each Lender of the [●, 20●] 5 Tranche[s]] as follows:

1. At the time of making the Discounted Term Loan Prepayment contemplated by Subsection 4.4(i)(ii) of the Credit Agreement, after giving effect thereto, Total Liquidity is equal to or greater than $100.0 million.

2. [At least ten Business Days have passed since the consummation of the most recent Discounted Term Loan Prepayment as a result of a prepayment made by the Borrower on the applicable Discounted Prepayment Effective Date.][At least three Business Days have passed since the date the Borrower was notified that no Lender was willing to accept any prepayment of any Term Loan at the Specified Discount, within the Discount Range or at any discount to par value, as applicable, or in the case of Borrower Solicitation of Discounted Prepayment Offers, the date of the Borrower’s election not to accept any Solicited Discounted Prepayment Offers made by a Lender.] 6

The Borrower acknowledges that the Administrative Agent and the Lenders are relying on the truth and accuracy of the foregoing representations and warranties in connection with their decision whether or not to accept the offer set forth in this Specified Discount Prepayment Notice and the acceptance of any prepayment made in connection with this Specified Discount Prepayment Notice.

The Borrower requests that Administrative Agent promptly notify each of the relevant Lenders party to the Credit Agreement of this Specified Discount Prepayment Notice.

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

 

 

5   List multiple Tranches if applicable.
6   Insert applicable representation.


IN WITNESS WHEREOF, the undersigned has executed this Specified Discount Prepayment Notice as of the date first above written.

 

E NVISION H EALTHCARE C ORPORATION
By:  

 

  Name:
  Title:

Enclosure: Form of Specified Discount Prepayment Response


EXHIBIT T

to

CREDIT AGREEMENT

FORM OF SPECIFIED DISCOUNT PREPAYMENT RESPONSE

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent under the

Credit Agreement referred to below

[                    ]

[DATE]

Attention: [                    ]

 

  Re: ENVISION HEALTHCARE CORPORATION

Reference is made to (a) that certain Amended and Restated Credit Agreement (as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”), dated as of December 1, 2016, among ENVISION HEALTHCARE CORPORATION, a Delaware corporation (together with its successors and assigns, the “ Borrower ”), the several banks and other financial institutions from time to time party thereto (the “ Lenders ”), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “ Administrative Agent ”) for the Lenders and as collateral agent for the Secured Parties (as defined therein) and (b) that certain Specified Discount Prepayment Notice, dated              , 20      , from the Borrower (the “ Specified Discount Prepayment Notice ”). Capitalized terms used herein and not otherwise defined herein are used herein as defined in the Credit Agreement.

The undersigned Lender hereby gives you irrevocable notice, pursuant to Subsection 4.4(i)(ii) of the Credit Agreement, that it is willing to accept a prepayment of the following [Tranches of] Term Loans held by such Lender at the Specified Discount in an aggregate Outstanding Amount as follows:

[Initial Term Loans - $[●]]

[[●, 20●] 1 Tranche[s] - $[●]]

The undersigned Lender hereby expressly consents and agrees to a prepayment of its [Initial Term Loans][[and its] [●, 20●] 2 Tranche[s]] pursuant to Subsection 4.4(i)(ii) of the Credit Agreement at a price equal to the Specified Discount in the aggregate Outstanding Amount not to exceed the amount set forth above, as such amount may be reduced in accordance with the Specified Discount Proration, and as otherwise determined in accordance with and subject to the requirements of the Credit Agreement.

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

 

 

1   List multiple Tranches if applicable.
2   List multiple Tranches if applicable.


IN WITNESS WHEREOF, the undersigned has executed this Specified Discount Prepayment Response as of the date first above written.

 

[                                         ]
By:  

 

  Name
  Title:
By:  

 

  Name
  Title:

Exhibit 10.12

EXECUTION VERSION

THIRD AMENDMENT

THIRD AMENDMENT TO CREDIT AGREEMENT (this “ Third Amendment ”), dated as of December 1, 2016, among Envision Healthcare Corporation (together with its successors in interest, the “ Parent Borrower ”), the Subsidiary Borrowers party hereto (the “ Subsidiary Borrowers ” and together with the Parent Borrower, the “ Borrowers ”), the lenders and other financial institutions party hereto (the “ Refinancing Lenders ”), Deutsche Bank AG New York Branch, as swingline lender, as an issuing lender, as administrative agent for the Lenders (in such capacity, the “ Administrative Agent ”) and as collateral agent for the Secured Parties (in such capacity, the “ Collateral Agent ”) and JPMorgan Chase Bank, N.A., as co-collateral agent under the Restated Credit Agreement (as defined below) (in such capacity, the “ Co-Collateral Agent ”). Unless otherwise indicated, all capitalized terms used herein and not otherwise defined shall have the respective meanings provided to such terms in the Credit Agreement referred to below.

W I T N E S S E T H :

WHEREAS, the Borrowers, the Lenders from time to time party thereto, the Administrative Agent and the other parties thereto are parties to a Credit Agreement, dated as of May 25, 2011 (as amended, supplemented, waived or otherwise modified from time to time, the “ Credit Agreement ”);

WHEREAS, pursuant to that certain Agreement and Plan of Merger (the “ 2016 Merger Agreement ”) among Envision Healthcare Holdings, Inc., a Delaware corporation (“ Holdings ”), AmSurg Corp., a Tennessee corporation (“ AmSurg ”), and New Amethyst Corp., a Delaware corporation and a wholly owned subsidiary of AmSurg, AmSurg and Holdings will combine in an all stock merger of equals (the mergers contemplated by the 2016 Merger Agreement, the “ 2016 Mergers ”);

WHEREAS, pursuant to and in accordance with Subsection   2.7 of the Credit Agreement, the Parent Borrower has requested Credit Agreement Refinancing Indebtedness in an aggregate principal amount of $550 million be made available to the Borrowers (the “ Refinancing ABL Facility ”), and the Refinancing Lenders and the Administrative Agent have agreed, upon the terms and subject to the conditions set forth herein, ( a ) that the Refinancing Lenders will make available Commitments, of which $150 million will be available in the form of Letters of Credit, ( b ) that such Commitments and Letters of Credit will be used to refinance Commitments outstanding immediately prior to the Refinancing Effective Time (as defined in Section Five below) and to finance the working capital, capital expenditures, business requirements, acquisitions and other general corporate purposes of the Parent Borrower and its Restricted Subsidiaries and ( c ) to amend the Credit Agreement as provided herein without the consent or approval of any other Lender, as permitted by Subsections   2.7 and 11.1(d) thereof;

WHEREAS, immediately following the Refinancing Effective Time, the Refinancing Lenders will constitute all of the Lenders under the Credit Agreement, as amended by Sections One and Two hereof;


WHEREAS, immediately following the Refinancing, the Refinancing Lenders, then constituting all Lenders under the Credit Agreement, as amended hereby, the Administrative Agent, the Collateral Agent and the Co-Collateral Agent wish and agree to amend the Credit Agreement as set forth in Section Three below and to increase the aggregate amount of the Commitments to $850 million;

WHEREAS, the Parent Borrower, certain of the Parent Borrower’s subsidiaries and the Collateral Agent are party to a Guarantee and Collateral Agreement, dated as of May 25, 2011 (as amended, supplemented, waived or otherwise modified from time to time, the “ Guarantee and Collateral Agreement ”);

WHEREAS, immediately following the Refinancing Effective Time, pursuant to Section 9.1 of the Guarantee and Collateral Agreement and Subsection 11.1(a) of the Credit Agreement, the Collateral Agent, the Parent Borrower, the other Grantors (as defined therein) and the Lenders party hereto, constituting all Lenders under the Credit Agreement at such time agree to make the amendments to the Guarantee and Collateral Agreement set forth in Section Four below; and

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION ONE – Payment of Accrued Interest and Fees; Letters of Credit . Subject to the satisfaction of the conditions set forth in Section Five hereof:

(a) On the Third Amendment Effective Date (as defined below), (i) immediately upon the occurrence of the Refinancing Effective Time, all Commitments in effect immediately prior to the Third Amendment Effective Date will terminate and (ii) the Parent Borrower shall pay in cash to the Administrative Agent, for the account of each Lender and the relevant Issuing Lender entitled thereto, the principal amount of all outstanding Loans under the Credit Agreement and all interest and fees that are accrued and unpaid under the Credit Agreement to but not including the Third Amendment Effective Date.

(b) The Letters of Credit outstanding on the Third Amendment Effective Date shall continue as Letters of Credit on and after the Third Amendment Effective Date and ( x ) shall be deemed to constitute a utilization of the Commitments under the Credit Agreement (as amended by this Third Amendment) and ( y ) shall accrue letter of credit commissions and fees in accordance with Subsection   3.3(a) of the Credit Agreement (as amended by this Third Amendment) on and after the Third Amendment Effective Date as if the Third Amendment Effective Date were a new date of issuance.

SECTION TWO – Refinancing Amendments . The Commitments under the Refinancing ABL Facility shall become effective subject to the satisfaction of the conditions set forth in Section Five hereof and, upon the satisfaction of such conditions, Schedule A of the Credit Agreement is hereby amended by deleting it in its entirely and replacing it with Annex I attached hereto.

 

2


SECTION THREE – Amendment and Restatement of Credit Agreement . Subject to satisfaction of the conditions set forth in Section Six below, effective as of the Restatement Effective Date (as defined below) immediately following the Refinancing Effective Time (as defined below), the Credit Agreement (and the Exhibits and Schedules thereto) is hereby amended and restated in its entirety in the form attached as Annex II hereto (the “ Restated Credit Agreement ”).

SECTION FOUR – Guarantee and Collateral Agreement Amendments . Effective as of the Restatement Effective Date and upon the occurrence of the GCA Amendments Effective Time (as defined below) (the “ GCA Amendments ”), the Guarantee and Collateral Agreement is hereby amended as follows:

(a) The Guarantee and Collateral Agreement is hereby amended by deleting the words “CDRT ACQUISITION CORPORATION, a Delaware corporation (“ Holdings ”),” from the first paragraph thereof and deleting each reference to “CDRT ACQUISITION CORPORATION” and “Holdings”.

(b) Section 1.1 of the Guarantee and Collateral Agreement is hereby amended as follows:

(1) by deleting “if the fair market value of such fee interest is less than $5,000,000 individually” in clause (i) of the definition of “Excluded Assets”;

(2) by deleting the definition of “Excluded Vehicles”;

(3) by amending and restating the definition of “Vehicles” as follows:

““ Vehicles ”: all vehicles that are owned by a Grantor, including cars, trucks, trailers, ambulances and other vehicles covered by a certificate of title law of any state and all tires and other appurtenances to any of the foregoing.”

(c) Sections 2.1(d)(ii) and (iii) of the Guarantee and Collateral Agreement is hereby amended and rested as follows:

“( ii ) as to any Guarantor, a sale or other disposition of all the Capital Stock of such Guarantor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Guarantor ceases to be a Restricted Subsidiary of the Parent Borrower, in each case that is permitted under the Credit Agreement and ( iii ) so long as immediately after giving effect thereto, Excess Availability would not be less than zero, as to any Guarantor, such Guarantor becoming an Excluded Subsidiary.”

(d) Sections 2.1(e)(ii) and (iii) of the Guarantee and Collateral Agreement are hereby amended and rested as follows:

“( ii ) as to any Guarantor, a sale or other disposition of all the Capital Stock of such Guarantor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Guarantor ceases to be a Restricted Subsidiary of the Parent Borrower, in each case that is permitted under the Credit Agreement and ( iii ) so long as immediately after giving effect thereto, Excess Availability would not be less than zero, as to any Guarantor, such Guarantor becoming an Excluded Subsidiary.”

 

3


(e) Section 3.1 of the Guarantee and Collateral Agreement is hereby amended by replacing the words “all Vehicles” with the word “[reserved]” in clause (p) thereof.

(f) Section 3.3 of the Guarantee and Collateral Agreement is hereby amended as follows:

(1) by amending and restating clause (j) thereof as follows:

“(j) any assets subject to certificate of title;” and

(2) by inserting the words “to the extent the security interest therein is not automatically perfected by the filings under the Uniform Commercial Code of any applicable jurisdiction” immediately before the words “other than Loan Party DDAs” in clause (n) thereof; and

(3) replacing the words “any Excluded Vehicles” with the words “any Vehicles” in clause (q) thereof.

(g) Sections 5.1(ii) and (iii) of the Guarantee and Collateral Agreement are hereby amended and rested as follows:

“( ii ) as to any Guarantor, a sale or other disposition of all the Capital Stock of such Guarantor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Guarantor ceases to be a Restricted Subsidiary of the Parent Borrower, in each case that is permitted under the Credit Agreement or ( iii ) so long as immediately after giving effect thereto, Excess Availability would not be less than zero, as to any Guarantor, such Guarantor becoming an Excluded Subsidiary.”

(h) Sections 5.2(ii) and (iii) of the Guarantee and Collateral Agreement are hereby amended and rested as follows:

“( ii ) except in the case of the Parent Borrower, a sale or other disposition of all the Capital Stock of such Grantor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Grantor ceases to be a Restricted Subsidiary of the Parent Borrower, in each case that is permitted under the Credit Agreement or ( iii ) so long as immediately after giving effect thereto, Excess Availability would not be less than zero, as to any Grantor, such Grantor becoming an Excluded Subsidiary:”

(i) Sections 5.3(ii) and (iii) of the Guarantee and Collateral Agreement are hereby amended and rested as follows:

“( ii ) as to any Pledgor other than the Parent Borrower, a sale or other disposition of all the Capital Stock of such Pledgor (other than to a Borrower or a Subsidiary Guarantor), or any other transaction or occurrence as a result of which such Pledgor ceases to be a Restricted Subsidiary of the Parent Borrower, in each case that is permitted under the Credit Agreement or ( iii ) so long as immediately after giving effect thereto, Excess Availability would not be less than zero, as to any Pledgor, such Pledgor becoming an Excluded Subsidiary:”

 

4


(j) Section 5.4 of the Guarantee and Collateral Agreement is hereby deleted in its entirety.

(k) The second sentence of Section 9.16(b) is hereby amended and restated as follows:

“In connection with a sale or other disposition of all the Capital Stock of any Granting Party (other than any sale or disposition to another Grantor and other than with respect to Capital Stock of the Parent Borrower) or any other transaction or occurrence as a result of which such Granting Party (other than the Parent Borrower) ceases to be a Restricted Subsidiary of the Parent Borrower or the sale or other disposition of Security Collateral (other than a sale or disposition to another Grantor) permitted under the Credit Agreement, the Collateral Agent shall, upon receipt from the Parent Borrower of a written request for the release of such Granting Party from its Guarantee or the release of the Security Collateral subject to such sale or other disposition, identifying such Granting Party or the relevant Security Collateral and the terms of the sale or other disposition in reasonable detail, including the price thereof and any expenses in connection therewith, together with a certification by the Parent Borrower stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents, execute and deliver to the Parent Borrower or the relevant Granting Party (without recourse and without any representation or warranty), at the sole cost and expense of such Granting Party, any Security Collateral of such relevant Granting Party held by the Collateral Agent that is being released, or the Security Collateral subject to such sale or disposition (as applicable), and, at the sole cost and expense of such Granting Party, execute, acknowledge and deliver to such Granting Party such releases, instruments or other documents (including without limitation UCC termination statements and certificates and instructions for terminating Liens on Vehicles, if applicable), and do or cause to be done all other acts, as the Parent Borrower or such Granting Party shall reasonably request ( x ) to evidence or effect the release of such Granting Party from its Guarantee (if any) and of the Liens created hereby (if any) on such Granting Party’s Security Collateral or ( y ) to evidence the release of the Security Collateral subject to such sale or disposition.”

(l) Section 9.16(c) of the Guarantee and Collateral Agreement is hereby amended by replacing the words “Upon the designation of any Granting Party as an Unrestricted Subsidiary” with the words “Upon any Granting Party becoming an Excluded Subsidiary so long as immediately after giving effect thereto Excess Availability would be not less than zero”.

(m) by inserting the following new Section 9.18 :

9.18. Transfer Tax Acknowledgment . Each party hereto acknowledges that the shares delivered hereunder are being transferred to and deposited with the Collateral Agent (or other Person in accordance with any applicable Intercreditor Agreement) as security for the Obligations and that this Subsection 9.18 is intended to be the certificate of exemption from New York stock transfer taxes for the purposes of complying with Section 270.5(b) of the Tax Law of the State of New York.”

 

5


SECTION FIVE – Conditions to Effectiveness relating to the Refinancing . This Third Amendment relating to the Refinancing set forth in Sections One and Two above (the “ Refinancing Amendments ”) shall become effective on the date (the “ Third Amendment Effective Date ”) and at the time (the “ Refinancing Effective Time ”) when each of the following conditions shall have been satisfied:

(a) each of the Borrowers, the other Granting Parties (as defined in the Guarantee and Collateral Agreement) the Refinancing Lenders, the Administrative Agent, each Issuing Lender, the Swingline Lender, the Collateral Agent and the Co-Collateral Agent (as defined in the Restated Credit Agreement) shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile or other electronic transmission) the same to the Administrative Agent;

(b) the Administrative Agent shall have received ( A ) true and complete copies of resolutions of the board of directors or a duly authorized committee thereof of the Parent Borrower approving and authorizing the execution, delivery and performance of this Third Amendment, and the performance of the Credit Agreement as amended by this Third Amendment, certified as of the Third Amendment Effective Date by a Responsible Officer, secretary or assistant secretary of the Parent Borrower as being in full force and effect without modification or amendment and ( B ) a good standing certificate (or the equivalent thereof) for the Parent Borrower from its jurisdiction of formation;

(c) all fees and expenses then due and payable to the Administrative Agent, the Other Representatives (as defined in the Restated Credit Agreement) and the Refinancing Lenders pursuant to the fee letter agreement, dated June 15, 2016 (as amended by that certain Letter Agreement Pursuant to Commitment Letter dated June 15, 2016 dated as of July 7, 2016, as amended by that certain Letter Agreement Pursuant to Commitment Letter dated June 15, 2016 dated as of July 8, 2016 and as may be further amended, supplemented or otherwise modified from time to time) by and among the Parent Borrower, AmSurg Corp., JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wells Fargo Bank, National Association, Wells Fargo Securities, LLC, SunTrust Bank, SunTrust Robinson Humphrey, Inc., Deutsche Bank AG New York Branch, Deutsche Bank Securities Inc., BMO Harris Bank N.A., BMO Capital Markets Corp., RBC Capital Markets, LLC and Bank of America, N.A. and Section Nine hereof shall have been paid on the Third Amendment Effective Date;

(d) the Parent Borrower shall have delivered to the Administrative Agent ( i ) a completed field examination of the Loan Parties with assets to be included in the Borrowing Base by a third-party examiner reasonably acceptable to the Lead Arrangers (as defined in the Restated Credit Agreement) and ( ii ) reasonably satisfactory evidence that, on the Third Amendment Effective Date (after giving effect to the amendments contemplated by Sections Two and Three hereof), Excess Availability shall be no less than $250 million;

(e) the Parent Borrower shall have delivered to the Administrative Agent a Borrowing Base certificate prepared as of October 31, 2016;

(f) the 2016 Mergers shall have been or, substantially concurrently with the initial extension of credit under the Refinancing ABL Facility shall be, consummated in all

 

6


material respects in accordance with the terms of the 2016 Merger Agreement, without giving effect to any modifications, amendments, express waivers or express consents thereunder that are materially adverse to the Refinancing Lenders without the consent of the Lead Arrangers (as defined in the Restated Credit Agreement) (such consent not to be unreasonably withheld, conditioned or delayed), it being understood and agreed that any change in the Exchange Ratio (as defined in the 2016 Merger Agreement) shall not be deemed to be materially adverse to the Refinancing Lenders;

(g) since the date of the 2016 Merger Agreement, ( i ) no change, event, development, condition, occurrence or effect shall have occurred, arisen or become known that has had, or would reasonably be expected to have, individually or in the aggregate, an Amethyst Material Adverse Effect (as defined in the 2016 Merger Agreement on June 15, 2016) and ( ii ) no change, event, development, condition, occurrence or effect shall have occurred, arisen or become known that has had, or would reasonably be expected to have, individually or in the aggregate, a Holdings Material Adverse Effect (as defined in the 2016 Merger Agreement on June 15, 2016);

(h) the Administrative Agent shall have received a certificate of the chief financial officer or treasurer (or other comparable officer) of the Parent Borrower certifying the Solvency (as defined in the Restated Credit Agreement), after giving effect to the 2016 Mergers, of the Parent Borrower and its Subsidiaries on a consolidated basis in the form attached as Annex I to Exhibit G to that certain commitment letter among, inter alia , Holdings, AmSurg and the Lead Arrangers, dated as of June 15, 2016 (as amended, supplemented or otherwise modified prior to the date hereof the “ Commitment Letter ”);

(i) the Administrative Agent and the Lead Arrangers shall have received at least three Business Days prior to the Third Amendment Effective Date all documentation and information as is reasonably requested in writing by the Administrative Agent and the Lead Arrangers (as defined in the Restated Credit Agreement), at least 10 calendar days prior to the Third Amendment Effective Date, about the Parent Borrower and the Guarantors mutually agreed to be required by U.S. regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act;

(j) the representation and warranties in Section Eight below shall, except to the extent they relate to a particular date (in which case, such representations and warranties shall be true and correct in all material respects on and as of such earlier date), be true and correct in all material respects on and as of the Third Amendment Effective Date as if made on and as of such date; and

(k) the Parent Borrower shall have delivered to the Administrative Agent and the Refinancing Lenders an opinion from each of Debevoise & Plimpton LLP, special New York counsel to the Parent Borrower, Richards, Layton & Finger, P.A., special Delaware counsel to the Borrower and Bass Berry & Sims PLC, special Tennessee counsel to the Parent Borrower, in each case, in form and substance reasonably satisfactory to the Administrative Agent and dated as of the Third Amendment Effective Date.

 

7


The Administrative Agent shall promptly notify each Lender party hereto of the occurrence of the Third Amendment Effective Date and unless the Administrative Agent shall have received notice from any Refinancing Lender prior to the Third Amendment Effective Date that one of more of the conditions set forth above has not been satisfied, each Refinancing Lender shall be deemed to have acknowledged that each of the conditions precedent set forth in Section Five of this Third Amendment and the Credit Agreement shall have been satisfied in accordance with its respective terms or shall have been irrevocably waived by such Person.

SECTION SIX – Conditions to Effectiveness of the Restatement of the Existing Credit Agreement . The Restated Credit Agreement shall become effective immediately following the occurrence of the Refinancing Effective Time (such date of effectiveness, the “ Restatement Effective Date ” and such time, the “ Restatement Effective Time ”).

SECTION SEVEN – Conditions to Effectiveness relating to GCA Amendments . The GCA Amendments shall become effective immediately following the occurrence of the Restatement Effective Time (the “ GCA Amendments Effective Time ”).

SECTION EIGHT – Representations and Warranties; No Default . In order to induce the Administrative Agent and the Lenders party hereto to enter into this Third Amendment, the Borrowers represent and warrant to each of such Lenders and the Administrative Agent that on and as of the date hereof, after giving effect to this Third Amendment, ( i ) no Default or Event of Default exists as of the Third Amendment Effective Date; ( ii ) the representations and warranties of each Loan Party contained in Section   5 of the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the date hereof except to the extent that such representations and warranties relate to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date; ( iii ) the execution, delivery and performance of this Third Amendment has been duly authorized by all necessary corporate or limited liability company action on the part of the Borrowers, has been duly executed and delivered by the Borrowers and constitutes a legal, valid and binding obligation of the Borrowers, enforceable against the Borrowers in accordance with its terms, except to the extent that the enforceability hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law; and ( iv ) the execution and delivery hereof by the Borrowers and the performance and observance by the Borrowers of the provisions hereof do not violate or conflict with ( A ) any Organizational Document of any Borrower or ( B ) any Requirement of Law applicable to any Borrower or result in a breach of any provision of any Contractual Obligation of any Borrower, in the case of this clause (B), in any respect that would reasonably be expected to have a Material Adverse Effect.

SECTION NINE – Fees . The Borrowers agree to reimburse the Administrative Agent and the Other Representatives (as defined in the Restated Credit Agreement) for their reasonable and documented out-of-pocket expenses incurred by them in connection with this Third Amendment, including the reasonable fees, charges and disbursements of Cahill Gordon & Reindel LLP, counsel for such Other Representatives, and White & Case LLP, counsel for the Administrative Agent, (I) in the case of the Administrative Agent, in accordance with Subsection 11.5 of the Credit Agreement and (II) in the case of such Other Representatives, in accordance with the Commitment Letter.

 

8


SECTION TEN Reference to and Effect on the Credit Agreement and the Notes . On and after the effectiveness of the Refinancing Amendments, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement and each reference in the Notes and each of the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by the Refinancing Amendments. On and after the Restatement Effective Date, each reference in the Notes and each of the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Restated Credit Agreement. On and after the effectiveness of the GCA Amendments, each reference in the Guarantee and Collateral Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Guarantee and Collateral Agreement and each reference in the Credit Agreement and each of the other Loan Documents to “the Guarantee and Collateral Agreement”, “thereunder”, “thereof” or words of like import referring to the Guarantee and Collateral Agreement, shall mean and be a reference to the Guarantee and Collateral Agreement, as amended by the GCA Amendments. The Credit Agreement, the Notes and each of the other Loan Documents, as specifically amended by this Third Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. The execution, delivery and effectiveness of this Third Amendment shall not, except as expressly provided herein, operate as an amendment or waiver of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute an amendment or waiver of any provision of any of the Loan Documents. Each Borrower and each other Grantor hereby expressly acknowledges the terms of this Third Amendment and reaffirms, as of the date hereof, ( i ) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, such covenants and agreements as in effect immediately after giving effect to this Third Amendment and the transactions contemplated hereby and ( ii ) its grant of Liens on the Collateral to secure its Obligations (including, without limitation, in respect of the Commitments established pursuant to this Third Amendment) pursuant to the Security Documents both after giving effect to the Refinancing Amendments and after giving effect to the Restated Credit Agreement and the GCA Amendments.

SECTION ELEVEN – Execution in Counterparts . This Third Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which, when taken together, shall constitute a single contract. Delivery of an executed counterpart of this Third Amendment by facsimile transmission or electronic photocopy (i.e., “pdf”) shall be effective as delivery of a manually executed counterpart of this Third Amendment.

SECTION TWELVE – Governing Law . THIS THIRD AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS THIRD AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

9


IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed and delivered as of the day and year first above written.

 

ENVISION HEALTHCARE CORPORATION
By:  

/s/ Randel G. Owen

  Name:   Randel G. Owen
  Title:   Chief Financial Officer

 

[Signature Page to Third Amendment to ABL Credit Agreement]


DEUTSCHE BANK AG NEW YORK BRANCH,
as Administrative Agent, Collateral Agent, Issuing Lender, Swingline Lender and a Lender
By:  

/s/ Peter Cucchiara

Name:   Peter Cucchiara
Title:   Vice President
By:  

/s/ Dusan Lazarov

Name:   Benjamin South
Title:   Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


JPMORGAN CHASE BANK, N.A.,
as Co-Collateral Agent, a Lender and Issuing Lender
By:  

/s/ Angela Leake

Name:   Angela Leake
Title:   Authorized Officer

 

[Signature Page to Third Amendment to ABL Credit Agreement]


BARCLAYS BANK PLC,
as a Lender and Issuing Lender
By:  

/s/ Marguerite Sutton

Name:   Marguerite Sutton
Title:   Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


BANK OF AMERICA, N.A.,
as a Lender and Issuing Lender
By:  

/s/ Polly Hackett

Name:   Polly Hackett
Title:   Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


HEALTHCARE FINANCIAL SOLUTIONS, LLC.
as a Lender
By:  

/s/ Alan M. Silbert

Name:   Alan M. Silbert
Title:   Duly Authorized Signatory

 

[Signature Page to Third Amendment to ABL Credit Agreement]


Wells Fargo Bank, National Association
as a Lender
By:  

/s/ Kathy Plisko

Name:   Kathy Plisko
Title:   Duly Authorized Signatory

 

[Signature Page to Third Amendment to ABL Credit Agreement]


Royal Bank of Canada
as a Lender
By:  

/s/ Diana Lee

Name:   Diana Lee
Title:   Authorized Signatory

 

[Signature Page to Third Amendment to ABL Credit Agreement]


BMO Harris Bank N.A. as a Lender
By:  

/s/ Quinn Heiden

Name:   Quinn Heiden
Title:   Director

 

[Signature Page to Third Amendment to ABL Credit Agreement]


City National Bank, A National Banking Association,
as a Lender
By:  

/s/ Lauren Bourke

Name:   Lauren Bourke
Title:   Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


KEYBANK NATIONAL ASSOCIATION,
as a Lender
By:  

/s/ Nadine M. Eames

Name:   Nadine M. Eames
Title:   Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


NYCB Specialty Finance Company, LLC,
as a Lender,
By:  

/s/ Nadine M. Eames

Name:   Willard D. Dickerson, Jr.
Title:   Senior Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


SUNTRUST BANK,
as a Lender
By:  

/s/ Seth Meier

Name:   Seth Meier
Title:   Director

 

[Signature Page to Third Amendment to ABL Credit Agreement]


CapStar Bank,
as a Lender
By:  

/s/ Mark D. Mattson

Name:   Mark D. Mattson
Title:   Executive Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


Whitney Bank,
as a Lender
By:  

/s/ Dwight Seeley

Name:   Dwight Seeley
Title:   Senior Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


Pinnacle Bank,
as a Lender
By:  

/s/ Carol S. Titus

Name:   Carol S. Titus
Title:   Senior Vice President

 

[Signature Page to Third Amendment to ABL Credit Agreement]


Each Guarantor acknowledges and consents to each of the foregoing provisions of this Third Amendment. Each Guarantor further acknowledges and agrees that all Obligations with respect to the Commitments under the Credit Agreement as modified by this Third Amendment shall be fully guaranteed and secured pursuant to the Guarantee and Collateral Agreement in accordance with the terms and provisions thereof. Each Guarantor hereby agrees to the amendments to the Guarantee and Collateral Agreement contemplated by Section Four hereof.

 

GUARANTORS :
ENVISION HEALTHCARE INTERMEDIATE CORPORATION
  By:  

/s/ William A. Sanger

    Name:   William A. Sanger
    Title:   Chief Executive Officer
CLINICAL PARTNERS MANAGEMENT COMPANY, LLC
NORTHWOOD ANESTHESIA ASSOCIATES, L.L.C.
  By:  

/s/ William A. Sanger

    Name:   William A. Sanger
    Title:   Manager

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
A1 LEASING, INC.
ABBOTT AMBULANCE, INC.
ACCENT HOME HEALTH CARE INC.
ADAM TRANSPORTATION SERVICE, INC.
AFFILION, INC.
AIR AMBULANCE SPECIALISTS, INC.
AMBULANCE ACQUISITION, INC.
AMERICAN EMERGENCY PHYSICIANS MANAGEMENT, INC.
AMERICAN INVESTMENT ENTERPRISES, INC.
AMERICAN MEDICAL PATHWAYS, INC.
AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC.
AMERICAN MEDICAL RESPONSE HOLDINGS, INC.
AMERICAN MEDICAL RESPONSE MANAGEMENT, INC.
AMERICAN MEDICAL RESPONSE MID-ATLANTIC, INC.
AMERICAN MEDICAL RESPONSE NORTHWEST, INC.
AMERICAN MEDICAL RESPONSE OF COLORADO, INC.
AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INCORPORATED
AMERICAN MEDICAL RESPONSE OF GEORGIA, INC.
AMERICAN MEDICAL RESPONSE OF ILLINOIS, INC.
AMERICAN MEDICAL RESPONSE OF INLAND EMPIRE
AMERICAN MEDICAL RESPONSE OF MASSACHUSETTS, INC.
AMERICAN MEDICAL RESPONSE OF NORTH CAROLINA, INC.
AMERICAN MEDICAL RESPONSE OF OKLAHOMA, INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
AMERICAN MEDICAL RESPONSE OF SOUTH CAROLINA, INC.
AMERICAN MEDICAL RESPONSE OF SOUTHERN CALIFORNIA
AMERICAN MEDICAL RESPONSE OF TENNESSEE, INC.
AMERICAN MEDICAL RESPONSE OF TEXAS, INC.
AMERICAN MEDICAL RESPONSE WEST
AMERICAN MEDICAL RESPONSE, INC.
AMR BAY STATE, LLC
AMR HOLDCO, INC.
AMR OF CENTRAL TEXAS I, LLC
AMR OF CENTRAL TEXAS II, LLC
APH LABORATORY SERVICES, INC.
ARIZONA EMS HOLDINGS, INC.
ASSOCIATED AMBULANCE SERVICE, INC.
ATLANTIC AMBULANCE SERVICES ACQUISITION, INC.
ATLANTIC/KEY WEST AMBULANCE, INC.
ATLANTIC/PALM BEACH AMBULANCE, INC.
BEACON TRANSPORTATION, INC.
BESTPRACTICES, INC.
BLYTHE AMBULANCE SERVICE
BOWERS COMPANIES, INC.
BROWARD AMBULANCE, INC.
COMMUNITY AUTO AND FLEET SERVICES L.L.C.
COMMUNITY EMS, INC.
COMTRANS AMBULANCE SERVICE, INC.
COMTRANS, INC.
CORNING AMBULANCE SERVICE INC.
DESERT VALLEY MEDICAL TRANSPORT, INC.
DONLOCK, LTD.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
E.M.S. VENTURES, INC.
EASTERN AMBULANCE SERVICE, INC.
EASTERN PARAMEDICS, INC.
EHR MANAGEMENT CO.
EMCARE ANESTHESIA PROVIDERS, INC.
EMCARE HOLDCO, INC.
EMCARE HOLDINGS INC.
EMCARE OF CALIFORNIA, INC.
EMCARE PHYSICIAN PROVIDERS, INC.
EMCARE PHYSICIAN SERVICES, INC.
EMCARE, INC.
EMERGENCY MEDICAL SERVICES LP CORPORATION
EMERGENCY MEDICAL TRANSPORT, INC.
EMERGENCY MEDICAL TRANSPORTATION, INC.
EMERGENCY MEDICINE EDUCATION SYSTEMS, INC.
EMS VENTURES OF SOUTH CAROLINA, INC.
FIVE COUNTIES AMBULANCE SERVICE, INC.
FLORIDA EMERGENCY PARTNERS, INC.
FOUNTAIN AMBULANCE SERVICE, INC.
GILA HOLDCO LLC
GOLD COAST AMBULANCE SERVICE
GOLD CROSS AMBULANCE SERVICE OF PA., INC.
GOLD CROSS AMBULANCE SERVICES, INC.
GRACE BEHAVIORAL HEALTH, L.L.C.
GREATER PINELLAS TRANSPORTATION MANAGEMENT SERVICES, INC.
GUARDIAN HEALTH CARE, INC.
GUARDIAN HEALTHCARE GROUP, INC.
GUARDIAN HEALTHCARE HOLDINGS, INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
HANK’S ACQUISITION CORP.
HEALTH PRIORITY HOME CARE, INC.
HEALTHCARE ADMINISTRATIVE SERVICES, INC.
HEMET VALLEY AMBULANCE SERVICE, INC.
HERREN ENTERPRISES, INC.
HOLIDAY ACQUISITION COMPANY, INC.
INTERNATIONAL LIFE SUPPORT, INC.
JLM HEALTHCARE, INC.
KMAC, INC.
KUTZ AMBULANCE SERVICE, INC.
LASALLE AMBULANCE INC.
LIFE LINE AMBULANCE SERVICE, INC.
LIFECARE AMBULANCE SERVICE, INC.
LIFEFLEET SOUTHEAST, INC.
MAINSTAY SOLUTIONS, LLC
MARLBORO HUDSON AMBULANCE & WHEELCHAIR SERVICE, INC.
MEDEVAC MEDICAL RESPONSE, INC.
MEDEVAC MIDAMERICA, INC.
MEDIC ONE AMBULANCE SERVICES, INC.
MEDIC ONE OF COBB, INC.
MEDICAL EMERGENCY DEVICES AND SERVICES (MEDS), INC.
MEDI-CAR AMBULANCE SERVICE, INC.
MEDI-CAR SYSTEMS, INC.
MEDICS AMBULANCE SERVICE (DADE), INC.
MEDICS AMBULANCE SERVICE, INC.
MEDICS AMBULANCE, INC.
MEDICS EMERGENCY SERVICES OF PALM BEACH COUNTY, INC.
MEDICS SUBSCRIPTION SERVICES, INC.
MEDICS TRANSPORT SERVICES, INC.
MEDICWEST AMBULANCE, INC.
MEDICWEST HOLDINGS, INC.
MEDLIFE EMERGENCY MEDICAL SERVICE, INC.
MEDSTAT EMS, INC.
MERCURY AMBULANCE SERVICE, INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
MERCY AMBULANCE OF EVANSVILLE, INC.
MERCY LIFE CARE
MERCY, INC.
METRO AMBULANCE SERVICE (RURAL), INC.
METRO AMBULANCE SERVICE, INC.
METRO AMBULANCE SERVICES, INC.
METRO CARE CORP.
METROPOLITAN AMBULANCE SERVICE
MIDWEST AMBULANCE MANAGEMENT COMPANY
MOBILE MEDIC AMBULANCE SERVICE, INC.
NATIONAL AMBULANCE & OXYGEN SERVICE, INC.
NEVADA RED ROCK AMBULANCE, INC.
NEVADA RED ROCK HOLDINGS, INC.
NORTH MISS. AMBULANCE SERVICE, INC.
OHERBST, INC.
PACIFIC AMBULANCE, INC.
PARAMED, INC.
PARK AMBULANCE SERVICE INC.
PHYSICIAN ACCOUNT MANAGEMENT, INC.
PHYSICIANS & SURGEONS AMBULANCE SERVICE, INC.
PROFESSIONAL MEDICAL TRANSPORT, INC.
PROVIDER ACCOUNT MANAGEMENT, INC.
PUCKETT AMBULANCE SERVICE, INC.
R/M ARIZONA HOLDINGS, INC.
R/M MANAGEMENT CO., INC.
R/M OF TENNESSEE G.P., INC.
R/M OF TENNESSEE L.P., INC.
RADIOLOGY STAFFING SOLUTIONS, INC.
RADSTAFFING MANAGEMENT SOLUTIONS, INC.
RANDLE EASTERN AMBULANCE SERVICE, INC.
REIMBURSEMENT TECHNOLOGIES, INC.
RIVER MEDICAL INCORPORATED
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
RURAL/METRO (DELAWARE), INC.
RURAL/METRO CORPORATION
RURAL/METRO CORPORATION
RURAL/METRO CORPORATION OF FLORIDA
RURAL/METRO CORPORATION OF TENNESSEE
RURAL/METRO FIRE DEPT., INC.
RURAL/METRO OF BREWERTON, INC.
RURAL/METRO OF CALIFORNIA, INC.
RURAL/METRO OF CENTRAL ALABAMA, INC.
RURAL/METRO OF CENTRAL COLORADO, INC.
RURAL/METRO OF CENTRAL OHIO, INC.
RURAL/METRO OF GREATER SEATTLE, INC.
RURAL/METRO OF NEW YORK, INC.
RURAL/METRO OF NORTHERN CALIFORNIA, INC.
RURAL/METRO OF NORTHERN OHIO, INC.
RURAL/METRO OF OHIO, INC.
RURAL/METRO OF OREGON, INC.
RURAL/METRO OF ROCHESTER, INC.
RURAL/METRO OF SAN DIEGO, INC.
RURAL/METRO OF SOUTHERN CALIFORNIA, INC.
RURAL/METRO OF SOUTHERN OHIO, INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
S. FISHER & S. THOMAS INC.
SEMINOLE COUNTY AMBULANCE, INC.
SIOUX FALLS AMBULANCE, INC.
SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC.
SOUTHWEST AMBULANCE OF CASA GRANDE, INC.
SOUTHWEST AMBULANCE OF NEW MEXICO, INC.
SOUTHWEST AMBULANCE OF SOUTHEASTERN ARIZONA, INC.
SOUTHWEST AMBULANCE OF TUCSON, INC.
SOUTHWEST GENERAL SERVICES, INC.
SPRINGS AMBULANCE SERVICE, INC.
SSAG, LLC
STAT HEALTHCARE, INC.
SUNRISE HANDICAP TRANSPORT CORP.
SW GENERAL, INC.
T.M.S. MANAGEMENT GROUP INC.
TEK AMBULANCE, INC.
THE AID AMBULANCE COMPANY, INC.
THE AID COMPANY, INC.
TIDEWATER AMBULANCE SERVICE, INC.
TKG, INC.
TOWNS AMBULANCE SERVICE, INC.
TRANSPORTATION MANAGEMENT SERVICES OF BREVARD, INC.
TROUP COUNTY EMERGENCY MEDICAL SERVICES, INC.
VALLEY FIRE SERVICE, INC.
VELITA SMITH HOME HEALTH, INC.
V.I.P. PROFESSIONAL SERVICES, INC.
VISTA STAFFING SOLUTIONS, INC.
VITAL ENTERPRISES, INC.
W&W LEASING COMPANY, INC.
WP ROCKET HOLDINGS INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
ACCESS 2 CARE, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Access 2 Care, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ACUTE MANAGEMENT, LLC
  By: HAWKEYE HOLDCO LLC, as Sole Member of Acute Management, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AGAPE HEALTH CARE AGENCY, LLC.
CARE CONNECTION OF CINCINNATI LLC
GEM CITY HOME CARE, LLC
GUARDIAN OHIO NEWCO, LLC
  By: GUARDIAN HEALTHCARE HOLDINGS, INC., as Sole Member of Agape Health Care Agency, LLC, Care Connection of Cincinnati LLC, Gem City Home Care, LLC and Guardian Ohio NewCo, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
ALPHA PHYSICIAN RESOURCES, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AMERICAN MEDICAL RESPONSE DELAWARE VALLEY, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AMERICAN MEDICAL RESPONSE HPPP, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response HPPP, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AMERICAN MEDICAL RESPONSE OF MARICOPA, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
AMERICAN MEDICAL RESPONSE OF PIMA, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
AMR BROCKTON, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
APEX ACQUISITION LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
BRAVO REIMBURSEMENT SPECIALIST, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
CMORX, LLC
  By: EMCARE, INC., as Sole Member of CMORx, LLC
  By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary
ED SOLUTIONS, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
EDIMS, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMS MANAGEMENT LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMS OFFSHORE MEDICAL SERVICES, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EMSC SERVICESCO, LLC
  By:  

/s/ Craig A. Wilson

  Name:   Craig A. Wilson
  Title:   Secretary
EVERRAD, LLC
  By: TEMPLETON READINGS, LLC, as Sole Member of EverRad, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
EVOLUTION HEALTH LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
EVOLUTION MOBILE IMAGING, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
HAWKEYE HOLDCO LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MEDASSOCIATES, LLC
  By: EMCARE, INC., as Sole Member of MedAssociates, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MISSION CARE OF ILLINOIS, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Illinois, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
MISSION CARE OF MISSOURI, LLC
  By: MISSION CARE SERVICES, LLC, as Manager of Mission Care of Missouri, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MISSION CARE SERVICES, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Manager of Mission Care Services, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
MSO NEWCO, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
PHOENIX PHYSICIANS, LLC
STREAMLINED MEDICAL SOLUTIONS LLC
  By: EMCARE, INC., as Sole Member of Phoenix Physicians, LLC and Streamlined Medical Solutions LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PINNACLE CONSULTANTS MID-ATLANTIC, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PROVEN HEALHCARE SOLUTIONS OF NEW JERSEY, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
PROVIDACARE, L.L.C.
  By: AMERICAN MEDICAL PATHWAYS, INC., as Sole Member of ProvidaCare, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
QRX MEDICAL MANAGEMENT, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Senior Vice President and Secretary
RMC CORPORATE CENTER, L.L.C.
  By: RURAL/METRO CORPORATION, as Member of RMC Corporate Center, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO MID-SOUTH, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro Mid-South, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
RURAL/METRO OF INDIANA, L.P.
  By: THE AID AMBULANCE COMPANY, INC., as General Partner of Rural/Metro of Indiana, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
RURAL/METRO OF TENNESSEE, L.P.
  By: R/M OF TENNESSEE G.P., INC., as General Partner of Rural/Metro of Tennessee, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
  Title:   Secretary
RURAL/METRO OPERATING COMPANY, LLC
  By: RURAL/METRO CORPORATION, as Sole Member of Rural/Metro Operating Company, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
  Title:   Secretary
SAN DIEGO MEDICAL SERVICES ENTERPRISE, LLC
  By: RURAL/METRO OF SOUTHERN CALIFORNIA, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
  By: RURAL/METRO OF SAN DIEGO, INC., as Member of San Diego Medical Services Enterprise, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
REGIONAL EMERGENCY SERVICES, L.P.
  By: FLORIDA EMERGENCY PARTNERS, INC., as General Partner of Regional Emergency Services, L.P.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
ROSE RADIOLOGY, LLC
  By: SPOTLIGHT HOLDCO LLC, as Sole Member of Rose Radiology, LLC
  By: EMCARE, INC., as Sole Member of EmCare, Inc.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SEAWALL ACQUISITION, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
SPOTLIGHT HOLDCO LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
SUN DEVIL ACQUISITION LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
TEMPLETON READINGS, LLC
  By: EMCARE, INC., as Sole Member of Templeton Readings, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
WHITAKER PHYSICIANS SERVICES, L.L.C.
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


GUARANTORS (cont’d):
AMERICAN MEDICAL RESPONSE OF NEW YORK, LLC
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of American Medical Response of New York, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary
METROCARE SERVICES – ABILENE, L.P.
  By: AMR OF CENTRAL TEXAS II, LLC, as General Partner of MetroCare Services – Abilene, L.P.
  By: AMERICAN MEDICAL RESPONSE, INC., as Sole Member of AMR of Central Texas II, LLC
  By:  

 

    Name:   Craig A. Wilson
    Title:   Secretary

PATIENT ADVOCACY GROUP, LLC

  By: AMR HOLDCO, INC., as Sole Member of Patient Advocacy Group, LLC
  By:  

/s/ Craig A. Wilson

    Name:   Craig A. Wilson
    Title:   Secretary

 

[Signature Page to Third Amendment to ABL Credit Agreement]


ACKNOWLEDGEMENT

Deutsche Bank AG New York Branch, as ABL Agent under that certain Intercreditor Agreement dated as of May 25, 2011 (as amended, supplemented, waived or otherwise modified, the “ Intercreditor Agreement ”) and JPMorgan Chase Bank, N.A. (as successor to Deutsche Bank AG New York Branch), as Term Loan Agent under the Intercreditor Agreement hereby acknowledge that the Commitments as amended by this Third Amendment will constitute ABL Obligations (as defined in the Intercreditor Agreement), under the Original ABL Credit Agreement (as defined in the Intercreditor Agreement).

 

DEUTSCHE BANK AG NEW YORK BRANCH
in its capacity as ABL Agent
By:  

/s/ Frank Fazio

Name:   Frank Fazio
Title:   Managing Director
By:  

/s/ Robert D. Miller

Name:   Robert D. Miller
Title:   Managing Director
JPMORGAN CHASE BANK, N.A.,
in its capacity as Term Loan Agent
By:  

/s/ John A. Horst

Name:   John A. Horst
Title:   Executive Director

 

[Signature Page to Third Amendment to ABL Credit Agreement]


Annex I

SCHEDULE A

Commitments 1

 

Lender

   Commitment  

JPMorgan Chase Bank, N.A.

3424 Peachtree Road, NE, 23 rd Floor

Atlanta, GA 30326

   $ 122,750,000   

Barclays Bank PLC

745 7th Avenue

New York, NY 10019

   $ 122,750,000   

Bank of America, N.A.

150 N. College St., NC1-028-17-16

Charlotte, NC 28255

   $ 100,000,000   

SunTrust Bank

303 Peachtree Street, N.E.

Atlanta, GA 30308

   $ 100,000,000   

Wells Fargo Bank, N.A.

2450 Colorado Avenue, Suite 3000 West

Santa Monica, CA 90404

   $ 100,000,000   

Deutsche Bank AG New York Branch

60 Wall Street

New York, NY 10005

   $ 50,000,000   

NYCB Specialty Finance Company, LLC

16 Chestnut Street

Foxboro, NY 02035

   $ 50,000,000   

BMO Harris Bank, N.A.

115 S. LaSalle St.

Chicago, IL 60603

   $ 40,000,000   

Royal Bank of Canada

200 Vesey Street

New York, NY 10281

   $ 40,000,000   

KeyBank National Association

127 Public Square

Cleveland, OH 44114-1306

   $ 37,500,000   

City National Bank, A National Banking Association

400 Park Avenue – 7 th Floor

New York, NY 10022

   $ 35,000,000   

Healthcare Financial Solutions, LLC

77 W. Wacker Drive

Chicago, IL 60601

   $ 25,000,000   

 

1   Reflects Amount of Commitment under Restated Credit Agreement. 55/85 of the amount of each Commitment set forth in the table above constitutes the portion of such Commitment being provided as part of the Refinancing ABL Facility.

 

A-1


Annex I

 

Pinnacle Bank

150 3 rd Avenue South

Nashville, TN 37201

   $ 15,000,000   

Whitney Bank

2510 14 th Street

Gulfport, MS 39501

   $ 10,000,000   

CapStar Bank

PO Box 305065

Nashville, TN 37230-5065

   $ 2,000,000   
  

 

 

 

Total:

   $ 850,000,000   
  

 

 

 

 

A-2


Annex II

[Attached]

 

A-1


EXECUTION VERSION

$850,000,000

AMENDED AND RESTATED

CREDIT AGREEMENT

among

ENVISION HEALTHCARE CORPORATION,

and

THE SUBSIDIARY BORROWERS PARTY HERETO,

as Borrowers,

THE LENDERS

FROM TIME TO TIME PARTIES HERETO,

DEUTSCHE BANK AG NEW YORK BRANCH,

as an Issuing Lender, Swingline Lender, Administrative Agent and Collateral Agent,

JPMORGAN CHASE BANK, N.A.,

as an Issuing Lender and Co-Collateral Agent,

JPMORGAN CHASE BANK, N.A.

and

BARCLAYS BANK PLC,

as Co-Syndication Agents

BANK OF AMERICA, N.A.

WELLS FARGO BANK, NATIONAL ASSOCIATION

and

SUNTRUST BANK,

as Co-Documentation Agents

JPMORGAN CHASE BANK, N.A.

BARCLAYS BANK PLC

BANK OF AMERICA, N.A.

WELLS FARGO BANK, NATIONAL ASSOCIATION

and

SUNTRUST ROBINSON HUMPHREY, INC.,

as Joint Lead Arrangers and Joint Bookrunners

dated as of December 1, 2016


Table of Contents

 

          Page  
   SECTION 1   
   DEFINITIONS   
1.1   

Defined Terms

     1   
1.2   

Other Definitional Provisions

     71   
   SECTION 2   
   AMOUNT AND TERMS OF COMMITMENTS   
2.1   

Commitments

     73   
2.2   

Procedure for Revolving Credit Borrowing

     75   
2.3   

Termination or Reduction of Commitments

     76   
2.4   

Swingline Commitments

     76   
2.5   

Repayment of Loans

     78   
2.6   

Incremental Facility

     79   
2.7   

Refinancing Amendments

     82   
2.8   

Extension of Commitments

     83   
   SECTION 3   
   LETTERS OF CREDIT   
3.1   

L/C Commitment

     85   
3.2   

Procedure for Issuance of Letters of Credit

     86   
3.3   

Fees, Commissions and Other Charges

     87   
3.4   

L/C Participations

     88   
3.5   

Reimbursement Obligation of the Borrowers

     88   
3.6   

Obligations Absolute

     89   
3.7   

L/C Disbursements

     90   
3.8   

L/C Request

     90   
3.9   

Cash Collateralization

     90   
3.10   

Additional Issuing Lenders

     90   
3.11   

Resignation or Removal of the Issuing Lender

     90   
   SECTION 4   
   GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT   
4.1   

Interest Rates and Payment Dates

     91   
4.2   

Conversion and Continuation Options

     91   
4.3   

Minimum Amounts; Maximum Sets

     92   
4.4   

Optional and Mandatory Prepayments

     92   
4.5   

Commitment Fees; Administrative Agent’s Fee; Other Fees

     94   
4.6   

Computation of Interest and Fees

     94   
4.7   

Inability to Determine Interest Rate

     94   

 

-i-


          Page  
4.8    Pro Rata Treatment and Payments      95   
4.9    Illegality      96   
4.10    Requirements of Law      96   
4.11    Taxes      98   
4.12    Indemnity      102   
4.13    Certain Rules Relating to the Payment of Additional Amounts      103   
4.14    Controls on Prepayment if Aggregate Outstanding Credit Exceeds Aggregate Revolving Credit Loan Commitments      104   
4.15    Defaulting Lenders      105   
4.16    Cash Management      107   
   SECTION 5   
   REPRESENTATIONS AND WARRANTIES   
5.1    Financial Condition      112   
5.2    No Change; Solvent      113   
5.3    Corporate Existence; Compliance with Law      113   
5.4    Corporate Power; Authorization; Enforceable Obligations      113   
5.5    No Legal Bar      114   
5.6    No Material Litigation      114   
5.7    No Default      114   
5.8    Ownership of Property; Liens      114   
5.9    Intellectual Property      115   
5.10    Taxes      115   
5.11    Federal Regulations      115   
5.12    ERISA      115   
5.13    Collateral      116   
5.14    Investment Company Act; Other Regulations      116   
5.15    Subsidiaries      116   
5.16    Purpose of Loans      117   
5.17    Environmental Matters      117   
5.18    No Material Misstatements      117   
5.19    Labor Matters      118   
5.20    Insurance      118   
5.21    Eligible Accounts      118   
5.22    Eligible Inventory      118   
5.23    Anti-Terrorism      118   
   SECTION 6   
   CONDITIONS PRECEDENT   
6.1    [Reserved]      119   
6.2    Conditions to Each Extension of Credit After the Third Amendment Effective Date      119   

 

-ii-


          Page  
   SECTION 7   
   AFFIRMATIVE COVENANTS   
7.1   

Financial Statements

     120   
7.2   

Certificates; Other Information

     121   
7.3   

Payment of Obligations

     123   
7.4   

Conduct of Business and Maintenance of Existence; Compliance with Contractual Obligations and Requirements of Law

     123   
7.5   

Maintenance of Property; Insurance

     123   
7.6   

Inspection of Property; Books and Records; Discussions

     124   
7.7   

Notices

     125   
7.8   

Environmental Laws

     126   
7.9   

After-Acquired Real Property and Fixtures; Subsidiaries

     127   
7.10   

Use of Proceeds

     129   
7.11   

Accounting Changes

     129   
7.12   

[Reserved]

     129   
7.13   

[Reserved]

     129   
7.14   

[Reserved]

     129   
   SECTION 8   
   NEGATIVE COVENANTS   
8.1   

Financial Condition Covenant

     129   
8.2   

Limitation on Fundamental Changes

     129   
8.3   

Limitation on Restricted Payments

     131   
8.4   

Limitations on Certain Acquisitions

     133   
8.5   

Limitation on Dispositions of Collateral

     134   
8.6   

Limitation on Optional Payments and Modifications of Restricted Indebtedness and Other Documents

     134   
8.7   

[Reserved]

     136   
8.8   

Limitation on Negative Pledge Clauses

     136   
8.9   

Limitation on Lines of Business

     138   
8.10   

Limitations on Currency, Commodity and Other Hedging Transactions

     138   
8.11   

Limitations on Transactions with Affiliates

     138   
8.12   

Limitations on Investments

     140   
8.13   

Limitations on Indebtedness

     140   
8.14   

Limitations on Liens

     146   
   SECTION 9   
   EVENTS OF DEFAULT   
9.1   

Events of Default

     150   
9.2   

Remedies Upon an Event of Default

     152   
9.3   

Borrower’s Right to Cure

     153   
   SECTION 10   
   THE AGENTS AND THE OTHER REPRESENTATIVES   
10.1   

Appointment

     154   
10.2   

The Administrative Agent and Affiliates

     154   
10.3   

Action by an Agent

     154   
10.4   

Exculpatory Provisions

     155   

 

-iii-


          Page  
10.5   

Acknowledgement and Representations by Lenders

     155   
10.6   

Indemnity; Reimbursement by Lenders

     156   
10.7   

Right to Request and Act on Instructions; Reliance

     157   
10.8   

Collateral Matters

     157   
10.9   

Successor Agent

     159   
10.10   

Swingline Lender

     160   
10.11   

Withholding Tax

     160   
10.12   

Other Representatives

     161   
10.13   

Appointment of Borrower Representatives

     161   
10.14   

Application of Proceeds

     161   
   SECTION 11   
   MISCELLANEOUS   
11.1   

Amendments and Waivers

     162   
11.2   

Notices

     165   
11.3   

No Waiver; Cumulative Remedies

     167   
11.4   

Survival of Representations and Warranties

     167   
11.5   

Payment of Expenses and Taxes

     167   
11.6   

Successors and Assigns; Participations and Assignments

     168   
11.7   

Adjustments; Set-off; Calculations; Computations

     173   
11.8   

Judgment

     174   
11.9   

Counterparts

     174   
11.10   

Severability

     174   
11.11   

Integration

     174   
11.12   

Governing Law

     174   
11.13   

Submission to Jurisdiction; Waivers

     175   
11.14   

Acknowledgements

     176   
11.15   

Waiver of Jury Trial

     176   
11.16   

Confidentiality

     176   
11.17   

Incremental Indebtedness; Additional Indebtedness

     177   
11.18   

USA PATRIOT Act Notice

     177   
11.19   

Electronic Execution of Assignments and Certain Other Documents

     177   
11.20   

Reinstatement

     178   
11.21   

Joint and Several Liability; Postponement of Subrogation

     178   
11.22   

Designated Cash Management Agreements and Designated Hedging Agreements

     179   
11.23   

Acknowledgement and Consent to Bail-In of EEA Financial Institutions

     179   

 

-iv-


SCHEDULES

 

A

     

Commitments and Addresses

1.1(a)

     

Assumed Indebtedness

1.1(b)

     

Disposition of Certain Assets

1.1(c)

     

Existing Financing Leases

1.1(d)

     

Existing Letters of Credit

1.1(e)

     

Fiscal Periods

1.1(f)

     

Existing Investments

5.2

     

Material Adverse Effect Disclosure

5.3

     

Good Standing Disclosure

5.4

     

Consents Required

5.6

     

Litigation

5.9

     

Intellectual Property Claims

5.15

     

Subsidiaries

5.17

     

Environmental Matters

5.20

     

Insurance

7.2

     

Website Address for Electronic Financial Reporting

8.11

     

Affiliate Transactions

8.13(d)

     

Third Amendment Effective Date Existing Indebtedness

8.14(b)

     

Existing Liens

EXHIBITS

A-1

     

Form of Revolving Credit Note

A-2

     

Form of Swingline Note

B

     

[Reserved]

C

     

[Reserved]

D

     

Form of U.S. Tax Compliance Certificate

E

     

Form of Assignment and Acceptance

F

     

Form of Swingline Loan Participation Certificate

G

     

[Reserved]

H

     

[Reserved]

I

     

[Reserved]

J

     

Form of L/C Request

K

     

Form of Borrowing Base Certificate

L

     

Form of Lender Joinder Agreement

N

     

Form of Subsidiary Borrower Joinder

O

     

[Reserved]

P

     

Form of Junior Lien Intercreditor Agreement

 

-v-


AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 1, 2016, as may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, among Envision Healthcare Corporation (the “ Parent Borrower ”), a Delaware corporation, the Subsidiary Borrowers from time to time party hereto (together with the Parent Borrower, collectively, the “ Borrowers ” and each individually, a “ Borrower ”), the several banks and other financial institutions from time to time party hereto (as further defined in Subsection 1.1 , the “ Lenders ”), DEUTSCHE BANK AG NEW YORK BRANCH, as swingline lender (in such capacity, the “ Swingline Lender ”), as an issuing lender, as administrative agent (in such capacity and as further defined in Subsection 1.1 , the “ Administrative Agent ”) for the Lenders hereunder and as collateral agent (in such capacity and as further defined in Subsection 1.1 , the “ Collateral Agent ”) for the Secured Parties (as defined below), JPMorgan Chase Bank, N.A., as an issuing lender and as co-collateral agent (in such capacity and as further defined in Subsection 1.1 , the “ Co-Collateral Agent ”) and the other Issuing Lenders party hereto.

The parties hereto hereby agree as follows:

W I T N E S S E T H:

WHEREAS, the Parent Borrower is party to that certain Credit Agreement, dated as of May 25, 2011 (as amended by Amendment No. 1 dated as of February 27, 2013, Amendment No. 2 dated as of February 6, 2015 and as further amended, supplemented, waived or otherwise modified prior to the “Restatement Effective Time” (as defined in the Third Amendment (as defined below)), the “ Original Credit Agreement ”);

WHEREAS, on the Third Amendment Effective Date, all Commitments of the Lenders party to the Original Credit Agreement were refinanced pursuant to Subsection 2.7 of the Original Credit Agreement (the “ 2016 Refinancing ”);

WHEREAS, immediately following the effectiveness of the 2016 Refinancing, the Lenders party to the Third Amendment constitute all of the Lenders under the Credit Agreement;

WHEREAS, the Administrative Agent and the Lenders have agreed to amend and restate the Original Credit Agreement in its entirety to read as set forth in this Agreement, and it has been agreed by such parties that the Loans and Letters of Credit outstanding as of the Third Amendment Effective Date and other “Obligations” under and as defined in the Original Credit Agreement shall be governed by and deemed to be outstanding under this Agreement with the intent that the terms of the Original Credit Agreement shall hereafter have no further effect upon the parties thereto, and all references to the “Credit Agreement” in any Loan Document or other document or instrument delivered in connection therewith shall be deemed to refer to this Agreement and the provisions hereof;

Defined terms used in these Recitals and not previously defined are as defined below.

NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, the parties hereto agree as follows:

SECTION 1

Definitions

1.1 Defined Terms . As used in this Agreement, the following terms shall have the following meanings:

2016 Merger Agreement ”: that certain Agreement and Plan of Merger among Envision Healthcare Holdings, Inc., AmSurg Corp., a Tennessee corporation, and New Amethyst Corp., a Delaware corporation and a wholly owned subsidiary of AmSurg Corp., pursuant to which AmSurg Corp. and Envision Healthcare Holdings, Inc. will combine in an all stock merger of equals.

 

1


2016 Mergers ”: the consummation of Mergers (as defined in the 2016 Merger Agreement) and all other transactions relating to any of the foregoing (including payment of fees and expenses related thereto).

2016 Refinancing ”: as defined in the recitals hereto.

30-Day Specified Availability ”: as of the date of any Specified Transaction, the quotient obtained by dividing (a) the sum of each day’s Specified Availability during the thirty (30) consecutive day period immediately preceding such Specified Transaction (calculated on a pro forma basis for each day during such 30-day period to include the borrowing or repayment of any Loans or issuance or cancellation of any Letters of Credit and the addition or use of any Specified Unrestricted Cash in connection with such Specified Transaction) by (b) thirty (30) days.

ABL Priority Collateral ”: as defined in the ABL/Term Loan Intercreditor Agreement whether or not the same remains in full force and effect.

ABL Term Loans ”: Incremental ABL Term Loans, Extended ABL Term Loans and Other ABL Term Loans.

ABL/Term Loan Intercreditor Agreement ”: the intercreditor agreement, dated as of the Closing Date, between the Collateral Agent and the Term Loan Agent (in its capacity as collateral agent under the Term Loan Documents), and acknowledged by certain of the Loan Parties, as the same may be amended, supplemented, waived or otherwise modified from time to time in accordance with the terms hereof and thereof.

ABR ”: when used in reference to any Loan or Borrowing, is used when such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

ABR Loans ”: Loans to which the rate of interest applicable is based upon the Alternate Base Rate.

Acceleration ”: as defined in Subsection 9.1(e) .

Accelerated ”: as defined in Subsection 9.1(e) .

Account Debtor ”: each Person who is obligated on an Account, chattel paper or a General Intangible.

Accounts ”: “accounts” as defined in the UCC (including any “health-care-insurance receivables” as defined in the UCC) and, with respect to any Person, all such Accounts of such Person, whether now existing or existing in the future, including (a) all accounts receivable of such Person (whether or not specifically listed on schedules furnished to the Administrative Agent), including all accounts receivable created by or arising from all of such Person’s sales of goods or rendition of services made under any of its trade names, or through any of its divisions, (b) all unpaid rights of such Person (including rescission, replevin, reclamation and stopping in transit) relating to the foregoing or arising

 

2


therefrom, (c) all rights to any goods represented by any of the foregoing, including returned or repossessed goods, (d) all reserves and credit balances held by such Person with respect to any such accounts receivable of any Account Debtor, (e) all letters of credit, guarantees or collateral for any of the foregoing and (f) all insurance policies or rights relating to any of the foregoing.

Acquisition Consideration ”: the purchase consideration for any acquisition and all other payments by the Parent Borrower or any of its Restricted Subsidiaries in exchange for, or as part of, or in connection with, any acquisition, consisting of cash or by exchange of property (other than Capital Stock of any Parent Entity) or the assumption of Indebtedness payable at or prior to the consummation of such acquisition or deferred for payment at any future time ( provided that any such future payment is not subject to the occurrence of any contingency). For purposes of the foregoing, any Acquisition Consideration consisting of property shall be valued at the Fair Market Value thereof.

Additional ABL Agent ”: as defined in the ABL/Term Loan Intercreditor Agreement.

Additional Assets ”: (a) any property or assets that replace the property or assets that are the subject of an Asset Sale; (b) any property or assets (other than Indebtedness and Capital Stock) used or to be used by the Parent Borrower or a Restricted Subsidiary or otherwise useful in a business permitted by Subsection 8.9 (including any capital expenditures in respect of any property or assets already so used); (c) the Capital Stock of a Person that is engaged in a business permitted by Subsection 8.9 and becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Parent Borrower or another Restricted Subsidiary; or (d) Capital Stock of any Person that at such time is a Restricted Subsidiary acquired from a third party.

Additional Indebtedness ”: as defined in the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement, as applicable.

Additional Lender ”: as defined in Subsection 2.6(a) .

Additional Obligations ”: subordinated or senior Indebtedness (which Indebtedness may be (x) unsecured, (y) secured by a Lien ranking pari passu to the Lien securing the First Lien Term Obligations or (z) secured by a Lien ranking junior to the Lien securing the First Lien Term Obligations), including customary bridge financings, in each case issued or incurred by the Parent Borrower or a Guarantor in compliance with Subsection 8.13 .

Additional Obligations Documents ”: any document or instrument (including any guarantee, security agreement or mortgage and which may include any or all of the Term Loan Documents) issued or executed and delivered with respect to any Additional Obligations or Rollover Indebtedness by any Loan Party.

Additional Term Credit Facility ”: as defined in the ABL/Term Loan Intercreditor Agreement.

Adjusted LIBOR Rate ”: with respect to any Borrowing of Eurodollar Loans for any Interest Period, an interest rate per annum (rounded upward, if necessary, to the nearest 1/100th of 1.00%) determined by the Administrative Agent to be equal to ( a ) the LIBOR Rate for such Borrowing of Eurodollar Loans in effect for such Interest Period divided by ( b ) 1 minus the Statutory Reserves (if any) for such Borrowing of Eurodollar Loans for such Interest Period.

Administrative Agent ”: as defined in the Preamble hereto and shall include any successor to the Administrative Agent appointed pursuant to Subsection 10.9 .

 

3


Affected Eurodollar Rate ”: as defined in Subsection 4.7 .

Affected Loans ”: as defined in Subsection 4.9 .

Affiliate ”: as to any specified Person, any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “ control ” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “ controlling ” and “ controlled ” have meanings correlative to the foregoing.

Agent Advance ”: as defined in Subsection 2.1(c) .

Agent Advance Period ”: as defined in Subsection 2.1(c) .

Agents ”: the collective reference to the Administrative Agent, the Collateral Agent and the Co-Collateral Agent and “Agent” shall mean any of them; provided that for purposes of the ABL/Term Loan Intercreditor Agreement, “Agent” shall mean the Collateral Agent.

Aggregate Lender Exposure ”: the sum of (a) the aggregate principal amount of all Revolving Credit Loans then outstanding, (b) the aggregate amount of all L/C Obligations at such time and (c) the aggregate amount of all Swingline Exposure at such time.

Aggregate Outstanding Credit ”: as to any Revolving Credit Lender at any time, an amount equal to the sum of (a) the aggregate principal amount of all Revolving Credit Loans made by such Revolving Credit Lender then outstanding, (b) the aggregate amount equal to such Revolving Credit Lender’s Commitment Percentage of the L/C Obligations then outstanding and (c) the aggregate amount equal to such Revolving Credit Lender’s Commitment Percentage, if any, of the Swingline Loans then outstanding.

Agreement ”: this Credit Agreement, as amended, supplemented, waived or otherwise modified, from time to time.

AHYDO Payment ”: a payment in respect of Indebtedness in an amount sufficient to ensure that such Indebtedness will not be an “applicable high yield discount obligation” within the meaning of Section 163(i)(1) of the Code.

Alternate Base Rate ”: for any day, a rate per annum equal to the greatest of ( a ) the Prime Rate in effect on such day, ( b ) the NYFRB Rate in effect on such day plus  1 2 of 1%, and ( c ) the Adjusted LIBOR Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, the Adjusted LIBOR Rate for any day shall be based on the LIBOR Rate at approximately 11:00 a.m. London time on such day. Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBOR Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBOR Rate, respectively.

Amendment ”: as defined in Subsection 8.8(d) .

AMR Accounts Historical Collection Analysis ”: the Parent Borrower’s analysis of write-offs and collectability of AMR Service Accounts by payor type consistent with the past practice of the Parent Borrower or otherwise in a form and level of detail reasonably acceptable to the Security Agents.

 

4


AMR Business ”: the provision of ambulance services to communities, government agencies, healthcare providers and insurers, other Persons and individuals and at sporting events, concerts and other events and of training services, dispatch services, management services and other services, including to communities, joint ventures and public safety agencies and other Persons and individuals, and other businesses of a similar type or reasonably related thereto and any business related thereto.

AMR Other Accounts ”: all other Accounts relating to the AMR Business that are not AMR Service Accounts, including Accounts for ambulance services at sporting events and concerts, air ambulance services, services for public safety agencies, receivables for government subsidies and capitated contract receivables.

AMR Self-Pay Accounts Collection Rate ”: as of any date of determination, based on the applicable part of the most recent AMR Accounts Historical Collection Analysis (referred to by the Company as the “Closed Accounts Analysis”), a historical collection percentage in respect of Self-Pay Accounts that are Closed Accounts calculated as follows: the amount produced by dividing (i) the amount of total collections made on Closed Accounts that are Self-Pay Accounts during the eighteen (18) consecutive month period ending on the date that is one (1) month prior to the date of determination, in respect of Closed Accounts that are Self-Pay Accounts billed during the twelve (12) consecutive month period ending on the date that is seven (7) months prior to the date of determination by (ii) the aggregate amount billed in respect of Closed Accounts that are Self-Pay Accounts during the twelve (12) consecutive month period ending on the date that is seven (7) months prior to the date of determination, or a collection percentage calculated in another manner reasonably satisfactory to the Security Agents.

AMR Service Accounts ”: all Accounts relating to the provision of 911 emergency and non-emergency ambulance and other services of the kind reported in the Parent Borrower’s accounts receivables financial reporting systems under the categories “AM2000,” “Non-AM2000” and “Unbilled Receivables” (or any successor categories in the current accounts receivables financial reporting systems of the Parent Borrower or any successor accounts receivables financial reporting system).

AMR Service Eligible Accounts ”: those AMR Service Accounts created by a Loan Party in the ordinary course of business, that comply in all material respects with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one or more of the excluding criteria set forth below. AMR Service Eligible Accounts shall not include the following:

(a) Excluded Accounts Receivable;

(b) if applicable, an amount equal to the amount of any reductions made to the gross amount invoiced or to be invoiced to Account Debtors reflecting contractual allowances provided to Account Debtors in respect of Accounts that would otherwise be AMR Service Eligible Accounts;

(c) Accounts that have not been billed by the date that is 30 days after the earlier of (i) the Service Date or (ii) the date as of which such Account is first included in the Borrowing Base Certificate or otherwise reported to the Security Agents as Collateral;

(d) billed Accounts that Account Debtors have failed to pay within one hundred and eighty (180) days after the original Service Date;

 

5


(e) (i) Accounts that have been written off, (ii) Accounts that the Security Agents, in their Permitted Discretion, believe to be doubtful by reason of the Account Debtor’s financial condition, upon notice thereof to the Borrower Representative or (iii) AMR Service Third Party Payor Accounts (that would otherwise be AMR Service Eligible Accounts) and Self-Pay Accounts (that would otherwise be AMR Service Eligible Accounts) up to an amount equal to the bad debt allowance applicable to such AMR Service Third Party Payor Accounts and such Self-Pay Accounts calculated in a manner consistent with the most recently completed field exam (but excluding from such calculation any AMR Service Third Party Payor Accounts and/or Self-Pay Accounts that Account Debtors have failed to pay within one hundred and eighty (180) days);

(f) an amount equal to the amount of any unallocated cash or unapplied cash relating to AMR Service Accounts that has not been applied to or posted to any AMR Service Account;

(g) an amount equal to (i) the aggregate amount of Self-Pay Accounts (that would otherwise be AMR Service Eligible Accounts but ignoring for this purpose clause (e) above and this clause (g)) minus (ii) the product of the amount calculated in clause (i) multiplied by the most recent AMR Self-Pay Accounts Collection Rate, provided that the amount of Self-Pay Accounts that are included as AMR Service Eligible Accounts, when aggregated with the amount of Self-Pay Accounts that are included as EmCare General Adjusted Eligible Accounts, does not at any time exceed ten percent (10%) of the Borrowing Base (calculated for this purpose excluding the amount of any Self-Pay Accounts that would otherwise be included in the calculation thereof);

(h) Accounts with respect to which the Account Debtor is (i) an Affiliate of any Loan Party or (ii) an employee or agent of any Loan Party or any Affiliate of such Loan Party, in each case, other than Accounts arising from the provision of medical care, including ambulance services, delivered in the ordinary course of business;

(i) Accounts that are not payable in Dollars;

(j) Accounts with respect to which the Account Debtor is insolvent, is subject to a proceeding related thereto, has gone out of business, or as to which a Loan Party has received notice of an imminent proceeding related to such Account Debtor being or alleged to be insolvent or which proceeding is reasonably likely to result in a material impairment of the financial condition of such Account Debtor;

(k) Accounts with respect to which the applicable Loan Party’s right to receive payment is deferred or otherwise is not absolute or is contingent upon the fulfillment of any condition whatsoever (other than the preparation and delivery of an invoice), provided that any such Accounts shall be included as AMR Service Eligible Accounts once the related services have been rendered or all conditions have been met and such Accounts are otherwise not excluded under clauses (a) to (u) of this definition;

(l) Accounts with respect to which the Account Debtor is a Person other than a Governmental Authority unless: (i) the Account Debtor (A) is a natural person with a billing address in the United States, (B) maintains its Chief Executive Office in the United States, or (C) is organized under the laws of the United States or any state, territory or subdivision thereof; (ii) the Account Debtor is a Third Party Payor (excluding for this purpose Government Accounts), or (iii) (A) the Account is supported by an irrevocable letter of credit satisfactory to the Security Agents, in their Permitted Discretion (as to form, substance, and issuer or domestic confirming bank), that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (B) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to the Security Agents, in their Permitted Discretion;

 

6


(m) Accounts with respect to which the Account Debtor is the government of any country or sovereign state other than the United States, or of any state, municipality or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (i) the Account is supported by an irrevocable letter of credit satisfactory to the Security Agents, in their Permitted Discretion (as to form, substance, and issuer or domestic confirming bank) that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (ii) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to the Security Agents, in their Permitted Discretion;

(n) Accounts with respect to which the Account Debtor is the federal government of the United States or any department, agency or instrumentality of the United States (exclusive, however, of (i) Accounts with respect to which the applicable Loan Party has complied, to the reasonable satisfaction of the Security Agents, with the Assignment of Claims Act of 1940 (31 USC Section 3727) and (ii) Government Accounts, to the extent that these would otherwise be AMR Service Eligible Accounts);

(o) (i) Accounts with respect to which the Account Debtor is a creditor of any Loan Party, and such Account Debtor has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such claim, right of setoff, or dispute, (ii) Accounts which are subject to a rebate that has been earned but not taken or a chargeback, to the extent of such rebate or chargeback, (iii) Accounts that comprise service charges or finance charges, or (iv) Accounts with respect to which the applicable Loan Party is not able to bring suit or otherwise enforce its remedies against the Account Debtor through judicial process;

(p) Accounts that are not owned by a Loan Party;

(q) Accounts which have been redated or extended ( provided that this shall not apply to any Accounts that have been re-categorized from one payor type to another payor type in the ordinary course of business);

(r) Accounts that are not subject to a valid and perfected first priority Lien in favor of the Collateral Agent, as applicable, pursuant to a Security Document (as and to the extent provided therein ( provided that in no event shall any Excluded Assets be deemed to be AMR Service Eligible Accounts hereunder));

(s) Accounts that exceed the amount such Loan Party is entitled to receive under any capitation arrangement, fee schedule, discount formula, cost-based reimbursement or other adjustment or limitation to such Loan Party’s usual charges (to the extent of such excess);

(t) Accounts with respect to which the services giving rise to such Account have not yet been performed;

(u) Accounts that were acquired or originated by a Person acquired in a Permitted Acquisition consisting either of (x) receivables of a type substantially different from those in the Borrowing Base at such time, or (y) receivables of a type substantially similar to those in the Borrowing Base at such time, provided that in the case of clause (y) only, such Accounts with an aggregate net book value in an amount not exceeding 10% of the aggregate Borrowing Base at the time of such Permitted Acquisition shall not be excluded, provided , further , that this clause (u)

 

7


shall cease to exclude any Accounts of the type listed under clause (x) or (y) above at the time the Parent Borrower delivers to the Security Agents a field exam in form and substance reasonably satisfactory to the Security Agents prepared by a third party field examiner reasonably satisfactory to the Security Agents with respect to such acquired Accounts, or such field exam requirement is waived by the Security Agents.

Notwithstanding the foregoing, the Security Agents may, from time to time, in the exercise of their Permitted Discretion, on not less than ten (10) Business Days’ prior notice to the Parent Borrower, change the criteria for AMR Service Eligible Accounts as reflected on the Borrowing Base Certificate based on either: (i) an event, condition or other circumstance arising after the Third Amendment Effective Date, or (ii) an event, condition or other circumstance existing on the Third Amendment Effective Date to the extent the Security Agents had no knowledge thereof on or prior to the Third Amendment Effective Date, in either case under clause (i) or (ii), which adversely affects, or would reasonably be expected to adversely affect, AMR Service Eligible Accounts in any material respect as determined by the Security Agents in the exercise of their Permitted Discretion. Any such change in criteria shall have a reasonable relationship to the event, condition or other circumstance that is the basis for such change. Upon delivery of the notice of such change pursuant to the foregoing sentence, the Security Agents shall be available to discuss the proposed change, and the applicable Borrower may take such action as may be required so that the event, condition or circumstance that is the basis for such change no longer exists, in a manner and to the extent reasonably satisfactory to the Security Agents in the exercise of their Permitted Discretion. Any Accounts of the Loan Parties that are not AMR Service Eligible Accounts shall nevertheless be part of the Collateral as and to the extent provided in the Security Documents.

AMR Service Third Party Payor Accounts ”: AMR Service Accounts with respect to which the Account Debtor is a Third Party Payor.

AmSurg ”: AmSurg Corp., a Tennessee corporation.

Anti-Corruption Laws ”: the Foreign Corrupt Practices Act of 1977, as amended.

Applicable Commitment Fee Rate ”: with respect to commitment fees payable hereunder, initially a percentage per annum equal to 0.375%; provided that from and after the end of the first full Fiscal Quarter after the Third Amendment Effective Date, the commitment fees payable hereunder shall be subject to adjustment on the first day of each Fiscal Quarter based on the applicable Average Daily Used Percentage for the immediately preceding Fiscal Quarter as set forth below:

 

Level

   Average Daily
Used Percentage
  Commitment Fee Rate  

I

   £  50%     0.375

II

   > 50%     0.250

Applicable Margin ”: a rate per annum equal to the rate set forth below for the applicable type of Loan and opposite the applicable Average Daily Excess Availability Percentage:

 

Level

  

Average Daily Excess

Availability Percentage

   Applicable Margin  
      Alternate
Base Rate
    Adjusted
LIBOR
 

I

  

Less than or equal to 33% of Availability

     0.75     1.75

II

  

Greater than 33% but less than or equal to 66% of Availability

     0.50     1.50

III

  

Greater than 66% of Availability

     0.25     1.25

 

8


From and after the end of the first full Fiscal Quarter commencing after the Third Amendment Effective Date, the Applicable Margin shall be subject to adjustment on the first day of each Fiscal Quarter based on the Average Daily Excess Availability Percentage for the immediately preceding Fiscal Quarter. Notwithstanding the foregoing, the Average Daily Excess Availability Percentage (i) shall be deemed to be in Level I from and including the Third Amendment Effective Date to but excluding the first day of the first full Fiscal Quarter which occurs after the Third Amendment Effective Date and (ii) shall be deemed to be in Level I at any time (after the expiration of the applicable cure period) during which the Parent Borrower has failed to deliver the Borrowing Base Certificate required by Subsection 7.2(f) .

In addition, at all times while an Event of Default known to the Parent Borrower shall have occurred and be continuing, the Applicable Margin shall not decrease from that previously in effect as a result of the delivery of such Borrowing Base Certificate.

A/R Availability Aged < 180 Days ”: 85% of the following amount: the sum of (i) the aggregate amount of AMR Service Eligible Accounts, plus (ii) the aggregate EmCare General Adjusted Eligible Accounts, plus (iii) the aggregate amount of Other Eligible Accounts.

A/R Availability Aged 180–360 Days ”: 85% of the following amount: the sum of (i) the aggregate amount of Accounts that would otherwise be AMR Service Eligible Accounts that Account Debtors have failed to pay within one hundred and eighty (180) days after the original Service Date but which are not unpaid more than three hundred and sixty (360) days after the original Service Date, plus (ii) the following amount: (A) (i) an amount equal to the aggregate amount of Accounts that would otherwise be EmCare General Eligible Accounts that Account Debtors have failed to pay within one hundred and eighty (180) days after the original Service Date but which are not unpaid more than three hundred and sixty (360) days after the original Service Date multiplied by (ii) the most recent EmCare Projected Collection Rate for 180-360 Days, minus (B) an amount equal to the sum of (i) any unreconciled differences plus (ii) an amount equal to the product of (x) unapplied cash relating to such EmCare General Accounts that have not been applied to, or posted to, any such EmCare General Accounts multiplied by (y) the Cash Eligible Account Rate applicable to such EmCare General Eligible Accounts.

Asset Sale ”: any sale, issuance, conveyance, transfer, lease or other disposition (a “ Disposition ”), by the Parent Borrower or any other Loan Party in one or a series of related transactions, of any real or personal, tangible or intangible, property (including Capital Stock) of the Parent Borrower or any of its Restricted Subsidiaries, other than:

(a) the sale or other Disposition of obsolete, worn-out or surplus property, whether now owned or hereafter acquired, in the ordinary course of business;

(b) the sale or other Disposition of any property (including Inventory) in the ordinary course of business;

(c) the sale or discount without recourse of accounts receivable or notes receivable arising in the ordinary course of business, or the conversion or exchange of accounts receivable into or for notes receivable, in connection with the compromise or collection thereof; provided that, in the case of any Foreign Subsidiary of the Parent Borrower, any such sale or discount may be with recourse if such sale or discount is consistent with customary practice in such Foreign Subsidiary’s country of business;

 

9


(d) as permitted by Subsection 8.2(b) or pursuant to any Exempt Sale and Leaseback Transaction;

(e) subject to any applicable limitations set forth in Subsection 8.2 , Dispositions of any assets or property by the Parent Borrower or any of its Restricted Subsidiaries to the Parent Borrower or any Wholly Owned Subsidiary of the Parent Borrower;

(f) (i) the abandonment or other Disposition of patents, trademarks or other intellectual property that are, in the reasonable judgment of the Parent Borrower, no longer economically practicable to maintain or useful in the conduct of the business of the Parent Borrower and its Restricted Subsidiaries taken as a whole and (ii) licensing of Intellectual Property in the ordinary course of business;

(g) any Disposition by the Parent Borrower or any of its Restricted Subsidiaries for aggregate consideration not to exceed $100,000,000;

(h) any Disposition set forth on Schedule 1.1(b) ;

(i) any Minority Business Disposition or Minority Business Offering; provided that at the time of any such Minority Business Disposition or Minority Business Offering (x) the Payment Condition is satisfied and (y) no Specified Default exists or would arise therefrom; and

(j) any disposition arising from foreclosure or similar action with respect to any property or assets subject to a Municipal Contract Lien.

Assignee ”: as defined in Subsection 11.6(b)(i) .

Assignment and Acceptance ”: an Assignment and Acceptance, substantially in the form of Exhibit E to the Original Credit Agreement.

Assumed Indebtedness ”: Indebtedness for borrowed money of the Parent Borrower and its Restricted Subsidiaries outstanding on the Third Amendment Effective Date and disclosed on Schedule 1.1(a) .

Auto-Renewal L/C ”: as defined in Subsection 3.1(c) .

Availability ”: the lesser of (x) the total Commitments as in effect at such time and (y) the Borrowing Base at such time (based on the Borrowing Base Certificate last delivered).

Availability Reserves ”: without duplication of any other reserves or items that are otherwise addressed or excluded through eligibility criteria (including collection rates or collection percentages), (a) any Cash Management Reserve, (b) any Designated Hedging Reserve, (c) any Dilution Reserve, and (d) such reserves, subject to Subsection 2.1(b) , as the Security Agents, in their Permitted Discretion, determine as being appropriate to reflect any impairment to (i) the value, or the collectability in the ordinary course of business, of Eligible Accounts (including, without limitation, on account of bad debts, dilution and changes in “historical collection percentages” or “projected collection percentages” applied to Eligible Accounts by payor type, as applicable) or the value (based on cost and quantity) of Eligible Inventory, or (ii) the enforceability or priority of the Lien on the Collateral consisting of Eligible Accounts or Eligible Inventory included in the Borrowing Base (including claims that the Security Agents determine will need to be satisfied in connection with the realization upon such Collateral).

 

10


Available Excluded Contribution Amount Basket ”: as of any date, the excess, if any, of (a) the Net Proceeds from Excluded Contributions received by the Parent Borrower as of such date over (b) the Net Proceeds from Excluded Contributions as of such date designated or applied prior to such date, or on such date in a separate designation or application, to an Investment made pursuant to Subsection 8.12 , cash consideration for acquisitions made pursuant to clause (c)(ii)(y) of the definition of “Permitted Acquisitions” a Restricted Payment made pursuant to Subsection 8.3(f) or (g) or any payments, prepayments, repurchases or redemptions of Restricted Indebtedness made pursuant to Subsection 8.6(a) .

Available Incremental Amount ”: at any time, without duplication, an amount equal to the sum produced by calculating the difference between (a) $1,350,000,000 and (b) the sum of (x) the Commitments (other than Incremental Revolving Commitments) outstanding on such date plus (y) the sum of the aggregate principal amount of all Incremental ABL Term Loans made and outstanding on such date plus all Incremental Revolving Commitments established in each case prior to and outstanding on such date pursuant to Subsection 2.6 ; provided that the sum of (x) plus (y) may not at any time exceed $1,350,000,000.

Average Daily Excess Availability Percentage ”: for any Fiscal Quarter, the percentage derived by dividing (x) the average daily Excess Availability for such Fiscal Quarter by (y) the average daily amount of the aggregate Commitments during such Fiscal Quarter.

Average Daily Used Percentage ”: for any Fiscal Quarter, the percentage derived by dividing (a) the sum of (x) the average daily principal balance of all Loans (other than the principal balance of any Swingline Loans) during such Fiscal Quarter plus (y) the average daily undrawn amount of all outstanding Letters of Credit by (b) the average daily amount of the aggregate Commitments during such Fiscal Quarter.

Bail-In Action ”: the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

Bail-In Legislation ”: with respect to any EEA Member Country implementing Article 55 of the Bank Recovery and Resolution Directive, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

Bank Products Affiliate ”: as defined in the ABL/Term Loan Intercreditor Agreement.

Bank Products Agreement ”: any agreement pursuant to which a bank or other financial institution agrees to provide (a) treasury services, (b) credit card, merchant card, purchasing card or stored value card services (including, without limitation, the processing of payments and other administrative services with respect thereto), (c) cash management services (including, without limitation, controlled disbursements, automated clearinghouse transactions, return items, netting, overdrafts, depository, lockbox, stop payment, electronic funds transfer, information reporting, wire transfer and interstate depository network services) and (d) other banking products or services as may be requested by the Parent Borrower or any Restricted Subsidiary (other than letters of credit and other than loans and advances except indebtedness arising from services described in clauses (a) through (c) of this definition).

Bank Recovery and Resolution Directive ”: Directive 2014/59/EU of the European Parliament and of the Council of the European Union.

Bankruptcy Proceeding ”: as defined in Subsection 11.6(h)(iv) .

Benefited Lender ”: as defined in Subsection 11.7(a) .

 

11


Blocked Account ”: as defined in Subsection 4.16(b)(iv) .

Blocked Account Agreement ”: as defined in Subsection 4.16(b)(iv) .

Board ”: the Board of Governors of the Federal Reserve System.

Board of Directors ”: for any Person, the board of directors or other governing body of such Person or, if such Person does not have such a board of directors or other governing body and is owned or managed by a single entity, the Board of Directors of such entity, or, in either case, any committee thereof duly authorized to act on behalf of such Board of Directors. Unless otherwise provided, “Board of Directors” means the Board of Directors of the Parent Borrower.

Borrower Representative ”: means the Parent Borrower in its capacity as Borrower Representative pursuant to the provisions of Subsection 10.13 .

Borrowers ”: as defined in the Preamble hereto.

Borrowing ”: the borrowing of one Type of Loan of a single Tranche by the Borrowers (on a joint and several basis), from all the Lenders having Commitments of the respective Tranche on a given date (or resulting from a conversion or conversions on such date) having in the case of Eurodollar Loans the same Interest Period.

Borrowing Base ”: as of any date of determination, shall equal the sum of:

(a) 85% of the amount of AMR Service Eligible Accounts; plus

(b) 85% of the amount of EmCare General Adjusted Eligible Accounts; plus

(c) 85% of the amount of Other Eligible Accounts; plus

(d) the lesser of:

(i) A/R Availability Aged 180-360 Days; and

(ii) 5% of A/R Availability Aged < 180 days; plus

(e) the lesser of:

(i) 50% of the Eligible Inventory of the Loan Parties, valued at the lower of (x) cost, calculated on a first-in, first out basis, and (y) fair market value; and

(ii) 5% of A/R Availability Aged < 180 Days; minus

(f) the amount of all Availability Reserves; minus

(g) the outstanding principal amount of any ABL Term Loans.

Borrowing Base Certificate ”: as defined in Subsection 7.2(f) .

Borrowing Date ”: any Business Day specified in a notice delivered pursuant to Subsections 2.2 , 2.4 , or 3.2 as a date on which the Borrower Representative requests the Lenders to make Loans hereunder or an Issuing Lender to issue Letters of Credit hereunder.

 

12


Business Day ”: a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York (or with respect only to Letters of Credit issued by an Issuing Lender not located in the City of New York, the location of such Issuing Lender) are authorized or required by law to close, except that, when used in connection with a Eurodollar Loan, “Business Day” shall mean any Business Day on which dealings in Dollars between banks may be carried on in London, England and New York, New York.

Business Development Amount ”: an amount at any time not exceeding $12,500,000 (or a greater amount, as agreed by the Security Agents in their reasonable discretion), the application of which shall apply solely for the purpose of developing or retaining business by any Loan Party or Related Corporation with respect to demonstration of financial condition.

Capital Expenditures ”: with respect to any Person for any period, the aggregate of all expenditures by such Person and its consolidated Restricted Subsidiaries during such period (exclusive of (i) expenditures made for Permitted Investments, (ii) expenditures made for acquisitions permitted by Subsection 8.4 , (iii) interest capitalized during such period to the extent relating to Capital Expenditures or (iv) expenditures made with the proceeds of any equity securities issued or capital contributions received, or Indebtedness incurred, by the Parent Borrower or any of its consolidated Restricted Subsidiaries) which, in accordance with GAAP, are or should be included in “capital expenditures.”

Capital Stock ”: as to any Person, any and all shares or units of, rights to purchase, warrants or options for, or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity.

Captive Insurance Subsidiary ”: any Subsidiary of the Parent Borrower that is subject to regulation as an insurance company (or any Subsidiary thereof), including EMCA Insurance Company Ltd. and Marblehead Surety & Reinsurance Company, Ltd.

Cash Analysis ”: the Parent Borrower’s analysis of historical unallocated and unapplied cash allocation applicable to (a) EmCare General Eligible Accounts versus EmCare General Accounts and/or (b) Other Eligible Accounts that are EmCare Other Accounts versus EmCare Other Accounts, in each case in a form, substance, level of detail and historical time period reasonably satisfactory to the Security Agents.

Cash Capped Incremental Facility ”: as defined in the definition of “Maximum Incremental Facilities Amount.”

Cash Eligible Account Rate ”: as of any date of determination the number determined by dividing (a) the historical unallocated and unapplied cash amount that is attributable to an EmCare General Eligible Account or, as the case may be, an Other Eligible Account that is an EmCare Other Account by (b) the historical unallocated and unapplied cash amount that is attributable to the corresponding EmCare General Account or EmCare Other Account, as the case may be, in each case as determined by the Parent Borrower in a Cash Analysis, provided that if a Cash Analysis has not been agreed with the Security Agents, the Cash Eligible Account Rate shall be deemed to be 1.

Cash Equivalents ”: any of the following: (1) money and (2)(a) securities issued or fully guaranteed or insured by the United States of America or a member state of the European Union or any agency or instrumentality of any thereof, (b) time deposits, certificates of deposit or bankers’ acceptances of (i) any bank or other institutional lender under this Agreement or the Term Loan Facility or any affiliate thereof or (ii) any commercial bank having capital and surplus in excess of $500,000,000 (or the foreign currency equivalent thereof as of the date of such investment) and the commercial paper of the holding

 

13


company of which is rated at least A-2 or the equivalent thereof by Standard & Poor’s Ratings Group (a division of The McGraw Hill Companies Inc.) or any successor rating agency (“ S&P ”) or at least P-2 or the equivalent thereof by Moody’s Investors Service, Inc. or any successor rating agency (“ Moody’s ”) (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency), (c) repurchase obligations with a term of not more than seven (7) days for underlying securities of the types described in clauses (2)(a) and (b) above entered into with any financial institution meeting the qualifications specified in clause (2)(b) above, (d) money market instruments, commercial paper or other short-term obligations rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency), (e) investments in money market funds subject to the risk limiting conditions of Rule 2a-7 or any successor rule of the SEC under the Investment Company Act of 1940, as amended, (f) investments similar to any of the foregoing denominated in foreign currencies approved by the Board of Directors of the Parent Borrower, and (g) solely with respect to any Captive Insurance Subsidiary, any investment that person is permitted to make in accordance with applicable law.

Cash Management Arrangements ”: any agreement or arrangement relating to any service provided pursuant to a Bank Products Agreement.

Cash Management Party ”: any Bank Products Affiliate party to a Bank Products Agreement.

Cash Management Reserves ”: such reserves as may be established or modified by the Parent Borrower in accordance with Subsection 11.22 with respect to anticipated monetary obligations under Designated Cash Management Agreements owing to any Cash Management Party.

CHAMPVA ”: 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, without limitation, (a) all federal statutes (whether set forth in 38 U.S.C. § 1713 or elsewhere) affecting such program to the extent applicable to CHAMPVA and (b) all rules, regulations (including 38 C.F.R. § 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.

CHAMPVA Account ”: an Account payable pursuant to CHAMPVA.

Change in Law ”: as defined in Subsection 4.11(a) .

Change of Control ”: (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act as in effect on the Closing Date), shall be the “beneficial owner” of (A) so long as the Parent Borrower is a Subsidiary of any Parent Entity, shares of Voting Stock having more than 35.0% of the total voting power of all outstanding shares of such Parent Entity (other than a Parent Entity that is a Subsidiary of another Parent Entity) and (B) if the Parent Borrower is not a Subsidiary of any Parent Entity, shares of Voting Stock having more than 35.0% of the total voting power of all outstanding shares of the Parent Borrower; or (b) a “Change of Control” as defined in the Term Loan Credit Agreement or the Senior Notes Indenture (or any indenture or agreement governing refinancing Indebtedness in respect of the Senior Notes, in each case relating to Indebtedness in an aggregate principal amount equal to or greater than $150,000,000). Notwithstanding anything to the contrary in the foregoing, the Transactions shall not constitute or give rise to a Change of Control.

 

14


Claim ”: as defined in Subsection 11.6(h)(iv) .

Closed Accounts ”: Accounts in relation to which the relevant Loan Party has fully closed and settled all amounts owing in respect of such Account and the remaining balance owing in respect of such Account is zero, either through payment and/or write-off.

Closing Date ”: May 25, 2011.

Co-Collateral Agent ”: as defined in the Preamble hereto, and shall include any successor to the Co-Collateral Agent appointed pursuant to Subsection 10.9 .

Code ”: the Internal Revenue Code of 1986, as amended from time to time.

Collateral ”: all assets of the Loan Parties, now owned or hereafter acquired, upon which a Lien is purported to be created by any Security Document.

Collateral Agent ”: as defined in the Preamble hereto, and shall include any successor to the Collateral Agent appointed pursuant to Subsection 10.9 .

Commercial L/C ”: as defined in Subsection 3.1(b) .

Commitment ”: as to any Lender, the commitment, if any, of such Lender to make Extensions of Credit to the Borrowers in the amount set forth opposite its name on Schedule A hereto or as may subsequently be set forth in the Register from time to time. The original amount of the aggregate Commitments of the Lenders on the Third Amendment Effective Date is $850,000,000.

Commitment Percentage ”: of any Lender at any time shall be that percentage which is equal to a fraction (expressed as a percentage) the numerator of which is the Commitment of such Lender at such time and the denominator of which is the aggregate Commitments at such time; provided that for purposes of Subsection 4.15(d) and (e) , “Commitment Percentage” shall mean the percentage of the total Commitments (disregarding the Commitment of any Defaulting Lender to the extent its Swingline Exposure or L/C Obligations is reallocated to the Non-Defaulting Lenders) represented by such Lender’s Commitment; provided , further , that if any such determination is to be made after the Commitments (and the related Commitments of the Lenders) has (or have) terminated, the determination of such percentages shall be made immediately before giving effect to such termination.

Commitment Period ”: the period from and including the Third Amendment Effective Date to but not including the Termination Date, or such earlier date as the Commitments shall terminate as provided herein.

Commonly Controlled Entity ”: an entity, whether or not incorporated, which is under common control with the Parent Borrower within the meaning of Section 4001 of ERISA or is part of a group which includes the Parent Borrower and which is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Sections 414(m) and (o) of the Code.

Company ”: Envision Healthcare Corporation, a Delaware corporation, and any successor in interest thereto.

Compliance Certificate ”: as defined in Subsection 7.2(b) .

 

15


Compliance Period ”: any period commencing upon any determination by the Security Agents that Specified Availability on any day is less than the greater of (x) 10.0% of Availability at such time and (y) the Excess Availability Floor; provided that the Security Agents have notified the Borrower Representative thereof. The Compliance Period shall be deemed continuing notwithstanding that Specified Availability may thereafter exceed the amount set forth in the preceding sentence unless and until for thirty (30) consecutive days Specified Availability exceeds the greater of (x) 10.0% of Availability at such time and (y) the Excess Availability Floor at such time, in which event a Compliance Period shall no longer be deemed to be continuing.

Concentration Account ”: any Loan Party Concentration Account and/or any Related Corporation Concentration Account, as the context requires.

Conduit Lender ”: any special purpose corporation organized and administered by any Lender for the purpose of making Loans otherwise required to be made by such Lender and designated by such Lender in a written instrument delivered to the Administrative Agent (a copy of which shall be provided by the Administrative Agent to the Borrower Representative on request); provided that the designation by any Lender of a Conduit Lender shall not relieve the designating Lender of any of its obligations under this Agreement, including its obligation to fund a Loan if, for any reason, its Conduit Lender fails to fund any such Loan, and the designating Lender (and not the Conduit Lender) shall have the sole right and responsibility to deliver all consents and waivers required or requested under this Agreement with respect to its Conduit Lender, and provided , further , that no Conduit Lender shall (a) be entitled to receive any greater amount pursuant to any provision of this Agreement, including without limitation Subsection 4.10 , 4.11 , 4.12 or 11.5 , than the designating Lender would have been entitled to receive in respect of the extensions of credit made by such Conduit Lender if such designating Lender had not designated such Conduit Lender hereunder, (b) be deemed to have any Commitment or (c) be designated if such designation would otherwise increase the costs of any Facility to any Borrower.

Confidential Healthcare Information ”: as defined in Subsection 7.6(c) .

Confidential Information Memorandum ”: that certain Confidential Information Memorandum dated November 2016, and furnished to the Lenders.

Consolidated Fixed Charge Coverage Ratio ”: (a) as of the last day of the Most Recent Four Quarter Period, the ratio of (a) (i) EBITDA for such period minus (ii) the unfinanced portion of all Capital Expenditures (excluding any Capital Expenditure made in an amount equal to all or part of the proceeds, applied within twelve months of receipt thereof, of (x) any casualty insurance, condemnation or eminent domain or (y) any sale of assets (other than Inventory)) of the Parent Borrower and its consolidated Restricted Subsidiaries during such period, to (b) the sum, without duplication, of (i) Debt Service Charges payable in cash by the Parent Borrower and its consolidated Restricted Subsidiaries during such period plus (ii) federal, state and foreign income taxes paid in cash by the Parent Borrower and its consolidated Restricted Subsidiaries (net of refunds received) for the period of four (4) full Fiscal Quarters ending on such date plus (iii) cash paid by the Parent Borrower during the relevant period pursuant to clause (h) of Subsection 8.3 .

Consolidated Interest Expense ”: for any period, an amount equal to (a) interest expense (accrued and paid or payable in cash for such period, and in any event excluding any amortization or write-off of financing costs) on Indebtedness of the Parent Borrower and its consolidated Restricted Subsidiaries for such period (excluding, on or prior to July 1, 2017, dividends paid in cash in respect of the Existing Mandatory Convertible Preferred) minus (b) interest income (accrued and received or receivable in cash for such period) of the Parent Borrower and its consolidated Restricted Subsidiaries for such period, in each case determined on a consolidated basis in accordance with GAAP; provided that for purposes

 

16


of calculating the Consolidated Fixed Charge Coverage Ratio for any period or portion of a period of four (4) Fiscal Quarters ending on or prior to the first anniversary of the Third Amendment Effective Date, Consolidated Interest Expense shall be calculated by reference to the actual amount of Consolidated Interest Expense as disclosed in the financial statements delivered pursuant to Subsection 7.1(a) or 7.1(b) and/or compliance certificates delivered pursuant to Subsection 7.2(b) for the period from the Third Amendment Effective Date to the last day of the relevant Fiscal Quarter at the end of the applicable test period divided by the number of days from the Third Amendment Effective Date to the last day of such Fiscal Quarter and multiplied by 365 and, provided , further , that for purposes of calculating the Consolidated Fixed Charge Coverage Ratio for any period prior to delivery of financial statements pursuant to Subsection 7.1(b) for the first Fiscal Quarter following the Third Amendment Effective Date, Consolidated Interest Expenses shall be as determined by the Parent Borrower in good faith and certified to the Administrative Agent in a form reasonably acceptable to the Administrative Agent.

Consolidated Net Income ”: for any period, net income of the Parent Borrower and its consolidated Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.

Consolidated Total Assets ”: as of any date of determination, the total assets of the Parent Borrower and its Restricted Subsidiaries as at the last day of the Most Recent Four Quarter Period, determined on a consolidated basis in accordance with GAAP (and, in the case of any determination relating to any Incurrence of Indebtedness, or Liens or any Investment or any acquisition pursuant to Subsection 8.4 , on a Pro Forma Basis, including any property or assets being acquired in connection therewith).

Contractual Obligation ”: as to any Person, any provision of any material security issued by such Person or of any material agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

Core Concentration Account ”: as defined in Subsection 4.16(f) .

Covered Liabilities ”: as defined in Subsection 11.23 .

Credit Agreement Refinancing Indebtedness ”: any secured Indebtedness incurred or otherwise obtained by the Borrowers under and in accordance with the terms of this Agreement in the form of revolving commitments or term loans in exchange for, or to extend, renew, replace or refinance, in whole or part, existing ABL Term Loans, outstanding Revolving Credit Loans or Commitments hereunder (including any successive Credit Agreement Refinancing Indebtedness obtained pursuant to a prior Refinancing Amendment) (“ Refinanced Debt ”); provided that:

(a) such Refinanced Debt shall be repaid and the commitments with respect thereto terminated and all accrued interest, fees and premiums (if any) in connection therewith shall be paid, on the date such Credit Agreement Refinancing Indebtedness is issued, incurred or obtained; provided that to the extent that such Refinanced Debt consists, in whole or in part, of Commitments or Other Revolving Credit Commitments (or Revolving Credit Loans, Other Revolving Credit Loans or Swingline Loans incurred pursuant to any Commitments or Other Revolving Credit Commitments), such Commitments or Other Revolving Credit Commitments, as applicable, shall be terminated, the proceeds of such Credit Agreement Refinancing Indebtedness shall be applied to the prepayment of outstanding ABL Term Loans, outstanding Revolving Credit Loans, or reduction of Commitments in respect of the Revolving Credit Facility being so refinanced on a pro rata basis within each Tranche being refinanced and all accrued fees in connection therewith shall be paid, on the date such Credit Agreement Refinancing Indebtedness is issued, incurred or obtained; and

 

17


(b) such Indebtedness (including, if such Indebtedness includes any Other Revolving Credit Commitments, the unused portion of such Other Revolving Credit Commitments) shall:

(i) be governed by the terms of this Agreement (as amended by any Refinancing Amendment) and the Security Documents and no other loan agreement, note purchase agreement or other similar agreement and the Lenders with respect to such Indebtedness shall execute an assumption agreement, reasonably satisfactory to the Administrative Agent, pursuant to which such Lenders agree to be bound by the terms of this Agreement as Lenders; provided that the terms and conditions of such Indebtedness (as amended by such Refinancing Amendment but excluding pricing and optional prepayment or redemption terms) shall be substantially similar to, or (taken as a whole) not more favorable to the investors providing such Indebtedness than the terms and conditions of the applicable Refinanced Debt as reasonably determined by the Parent Borrower in good faith (except with respect to any terms (including covenants) and conditions contained in such Indebtedness that are applicable only after the then Termination Date); provided , further , that the terms and conditions applicable to such Indebtedness may provide for any additional or different financial or other covenants or other provisions that are agreed between the Parent Borrower and the applicable Lenders and applicable only during periods after the Termination Date that is in effect on the date such Credit Agreement Refinancing Indebtedness is incurred or obtained,

(ii) be in an original aggregate principal amount not greater than the aggregate principal amount of the Refinanced Debt except by any amount equal to unpaid accrued interest and premium (including applicable prepayment penalties) thereon plus underwriting discounts, original issue discount, commissions, fees and other costs and expenses incurred in connection therewith (and, in the case of Refinanced Debt consisting, in whole or in part, of unused Commitments or Other Revolving Credit Commitments, the amount thereof),

(iii) not mature or have scheduled amortization or commitment reduction, as applicable, sooner or greater than the same under such Refinanced Debt and not be subject to mandatory redemption, repurchase, prepayment or sinking fund obligation (except customary prepayments with respect to lender exposure or outstandings exceeding commitments or the borrowing base and customary asset sale or change of control provisions), in each case prior to the Termination Date,

(iv) only be secured by assets consisting of Collateral on a pari passu basis (but without regard to the control of remedies) with the Obligations and not be secured by any property or assets of the Borrowers or any Restricted Subsidiary other than the Collateral; provided that such Obligations (including the Credit Agreement Refinancing Indebtedness) shall be secured by the Security Documents and the Lenders with respect to such Credit Agreement Refinancing Indebtedness shall have authorized the Collateral Agent to act as their Agent to take any action with respect to any applicable Collateral or Security Documents which may be necessary to perfect and maintain perfected the security interest in and liens upon the Collateral granted pursuant to the Security Documents,

(v) rank pari passu in right of payment and of security with the Obligations hereunder (including being entitled to the benefits of the same place in the waterfall as the Refinanced Debt) and at any time that a Default or an Event of Default exists, all prepayments of Other ABL Term Loans and Other Revolving Credit Loans (other than in respect of the FILO Tranche) shall be made on a pro rata basis,

 

18


(vi) be part of, and count against, the Borrowing Base on the same basis as the Refinanced Debt, and

(vii) not refinance the commitments in respect of the FILO Tranche unless (1) the Loans comprising the FILO Tranche are the only Loans outstanding and (2) the Commitments for the Revolving Credit Facility (excluding the FILO Tranche) have been terminated.

Cure Amount ”: as defined in Subsection 9.3(a) .

Customary Permitted Liens ”: (a) Liens for taxes, assessments and similar charges that are not yet delinquent or the nonpayment of which in the aggregate would not reasonably be expected to have a Material Adverse Effect, or which are being contested in good faith by appropriate proceedings and adequate reserves with respect thereto are maintained on the books of the Parent Borrower or its Restricted Subsidiaries, as the case may be, in conformity with GAAP;

(b) Liens with respect to outstanding motor vehicle fines, liens of landlords or of mortgagees of landlords arising by statute and liens of suppliers, mechanics, carriers, materialmen, warehousemen or workmen and other liens imposed by law created in the ordinary course of business for amounts not overdue for a period of more than 60 days or that are being contested in good faith by appropriate proceedings and with respect to which adequate reserves or other appropriate provisions are being maintained to the extent required by GAAP;

(c) deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance or other types of social security benefits or other insurance related obligations (including pledges or deposits securing liability to insurance carriers under insurance or self-insurance arrangements);

(d) encumbrances arising by reason of zoning restrictions, easements, licenses, reservations, covenants, rights-of-way, utility easements, building restrictions and other similar encumbrances on the use of real property not materially detracting from the value of such real property or not materially interfering with the ordinary conduct of the business conducted and proposed to be conducted at such real property;

(e) encumbrances arising under leases or subleases of real property that do not, in the aggregate over all such encumbrances, materially detract from the value of such real property or interfere with the ordinary conduct of the business conducted and proposed to be conducted at such real property;

(f) financing statements with respect to a lessor’s rights in and to personal property leased to such Person in the ordinary course of such Person’s business;

(g) Liens, pledges or deposits securing the performance of (x) bids, contracts (other than for borrowed money), obligations for utilities, leases and statutory or regulatory obligations, or (y) performance, bid, surety, appeal, judgment, replevin and similar bonds, other surety arrangements, and other similar obligations, all in, or relating to liabilities or obligations incurred in, the ordinary course of business;

(h) Liens arising by reason of any judgment, decree or order of any court or other Governmental Authority, unless the judgment, decree or order it secures has not, within thirty (30) days after entry of such judgment, been discharged or execution stayed pending appeal, or has not been discharged within thirty (30) days after the expiration of any such stay;

 

19


(i) Liens existing on assets or properties at the time of the acquisition thereof by the Parent Borrower or any of its Restricted Subsidiaries which do not materially interfere with the use, occupancy, operation and maintenance of structures existing on the property subject thereto or extend to or cover any assets or properties of the Parent Borrower or such Restricted Subsidiary other than the assets or property being acquired; and

(j) Liens on goods in favor of customs and revenue authorities arising as a matter of law to secure customs duties in connection with the importation of such goods.

DDA ”: any Loan Party DDA and/or any Related Corporation DDA, as the context requires.

Debt Financing ”: the debt financing transactions contemplated under (a) the Loan Documents, (b) the Term Loan Documents and (c) the Senior Notes Debt Documents, in each case including any Interest Rate Protection Agreements related thereto.

Debt Obligations ”: means, with respect to any Indebtedness, any principal, premium (if any), interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, other monetary obligations of any nature and all other amounts payable thereunder or in respect thereof.

Debt Service Charges ”: for any period, the sum of (a) Consolidated Interest Expense plus (b) scheduled principal payments required to be made (after giving effect to any prepayments paid in cash that reduce the amount of such required payments) on account of Indebtedness of the Parent Borrower and its consolidated Restricted Subsidiaries of the type permitted by Subsections 8.13(a) , 8.13(c) and (to the extent relating to any renewal, extension, refinancing or refunding of the foregoing) 8.13(i)(ii) hereof, including the full amount of any non-recourse Indebtedness (excluding the obligations hereunder, payments to reimburse any drawings under any commercial letters of credit, and any payments on Indebtedness required to be made on the final maturity date thereof, but including any obligations in respect of Financing Leases) for such period, plus (c) scheduled mandatory payments on account of Disqualified Capital Stock of the Parent Borrower and its consolidated Restricted Subsidiaries (whether in the nature of dividends, redemption, repurchase or otherwise) required to be made during such period, in each case determined on a consolidated basis in accordance with GAAP.

Default ”: any of the events specified in Subsection 9.1 , whether or not any requirement for the giving of notice (other than, in the case of Subsection 9.1(e) , a Default Notice), the lapse of time, or both, or any other condition specified in Subsection 9.1 , has been satisfied.

Default Notice ”: as defined in Subsection 9.1(e) .

Defaulting Lender ”: any Lender or Agent whose acts or failure to act, whether directly or indirectly, cause it to meet any part of the definition of Lender Default.

Deposit Account ”: any deposit account (as such term is defined in Article 9 of the UCC).

 

20


Designated Cash Management Agreements ”: Bank Products Agreements that are (i) secured by Liens on ABL Priority Collateral that are pari passu in priority with the Liens on such Collateral securing the amounts due under this Agreement, pursuant to (A) the Security Documents (but only to the extent any such Bank Products Agreement secured under a Security Document has also been designated as a Designated Cash Management Agreement in accordance with clause (ii) hereof), or (B) the ABL/Term Loan Intercreditor Agreement or (C) another intercreditor agreement in form and substance reasonably satisfactory to the Parent Borrower and the Security Agents and (ii) designated as a “Designated Cash Management Agreement” as contemplated by Subsection 11.22 .

Designated Hedging Agreements ”: Interest Rate Protection Agreements, Hedging Agreements or other Permitted Hedging Arrangements that are (i) secured by Liens on ABL Priority Collateral that are pari passu in priority with the Liens on such Collateral securing the amounts due under this Agreement, pursuant to (A) the Security Documents, or (B) the ABL/Term Loan Intercreditor Agreement or (C) another intercreditor agreement in form and substance reasonably satisfactory to the Parent Borrower and the Security Agents and (ii) designated as a “Designated Hedging Agreement” to the Administrative Agent as contemplated by Subsection 11.22 .

Designated Hedging Reserves ”: such reserves as may be established or modified by the Parent Borrower in accordance with Subsection 11.22 with respect to anticipated monetary obligations under Designated Hedging Agreements owing to any Hedging Party.

Designated Noncash Consideration ”: the Fair Market Value of noncash consideration received by the Parent Borrower or one of its Restricted Subsidiaries in connection with an Asset Sale that is so designated as Designated Noncash Consideration pursuant to a certificate signed by a Responsible Officer of the Parent Borrower, setting forth the basis of such valuation.

Designation Date ”: as defined in Subsection 2.8(e) .

Dilution ”: as of any date of determination, as to Accounts that are (i) EmCare General Accounts relating to paragraph (b) only of the EmCare Business or (ii) Other Eligible Accounts, in each case if applicable, a percentage, based upon the experience of the immediately prior twelve (12) consecutive months, that is the result of dividing the U.S. Dollar amount of (a) bad debt write downs, discounts, contract allowances, credits, volume or other rebates, returns or chargebacks with respect to such Accounts during such period, by (b) billings with respect to such EmCare General Accounts relating to paragraph (b) only of the EmCare Business or such Other Eligible Accounts respectively in each case without duplication of any exclusion from the definition of “EmCare General Eligible Accounts” or “Other Eligible Accounts” respectively during such twelve (12) month period.

Dilution Reserve ”: as of any date of determination, (i) as to Accounts that are Other Eligible Accounts, an amount equal to the product of (a) the amount (if positive), expressed as a percentage, by which Dilution of such Accounts exceeds 5.00% and (b) the aggregate Accounts that are Other Eligible Accounts and (ii) as to Accounts that are EmCare General Accounts relating to paragraph (b) only of the EmCare Business, an amount equal to the product of (a) the amount (if positive), expressed as a percentage, by which Dilution of such Accounts exceeds 5.00% and (b) the aggregate Accounts that are EmCare General Accounts relating to paragraph (b) only of the EmCare Business.

Disinterested Director ”: as defined in Subsection 8.11 .

Disposition ”: as defined in the definition of the term “Asset Sale” in this Subsection   1.1 .

 

21


Disqualified Capital Stock ”: with respect to any Person, any Capital Stock (other than Management Stock) that by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), or upon the happening of any event (other than following the occurrence of a Change of Control or other similar event described under such terms as a “change of control” or an Asset Sale), (a) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise, (b) is convertible or exchangeable for Indebtedness or Disqualified Capital Stock or (c) is redeemable at the option of the holder thereof (other than following the occurrence of a Change of Control or other similar event described under such terms as a “change of control” or an Asset Sale), in whole or in part, in each case on or prior to the Termination Date, provided that Capital Stock issued to any employee benefit plan, or by any such plan to any employees of the Parent Borrower or any Subsidiary, shall not constitute Disqualified Capital Stock solely because it may be required to be repurchased or otherwise acquired or retired in order to satisfy applicable statutory or regulatory obligations.

Disqualified Lender ”: (i) any competitor of the Parent Borrower and its Restricted Subsidiaries that is in the same or a similar line of business as the Parent Borrower and its Restricted Subsidiaries or any affiliate of such competitor designated in writing by the Parent Borrower to the Administrative Agent from time to time and ( ii ) any Persons designated in writing by the Parent Borrower to the Administrative Agent prior to the Third Amendment Effective Date; provided that ( x ) such written designation shall be submitted by the Borrower Representative to the Administrative Agent in writing, ( y ) subject to clause ( z ) below, any such written designation shall become effective on the third Business Day following the date of receipt of such notice by the Administrative Agent and ( z ) any such written designation shall not be effective as to any Person that is a Lender, Participant or counterparty to a pending trade at the time such notice is provided to Lenders by the Administrative Agent. The Parent Borrower authorizes the Administrative Agent to post the list of Disqualified Lenders to the Platform and agrees that the Administrative Agent shall have no duty to ascertain, monitor or enforce such list and shall not have any liability therefor.

Dollars ” and “ $ ”: dollars in lawful currency of the United States of America.

Domestic Subsidiary ”: any Restricted Subsidiary of the Parent Borrower which is not a Foreign Subsidiary.

Dominion Event ”: a period (a) commencing on the date on which either (x) a Specified Default has occurred and has been continuing or (y) the Specified Availability, expressed as a percentage, has been less than the greater of (i) 10.0% of Availability at such time and (ii) the Excess Availability Floor, in the case of each of (x) and (y), for a period of five (5) consecutive Business Days; provided that the Security Agents have notified the Borrower Representative thereof and (b) ending on the first date thereafter on which both (x) no Specified Default has existed or been continuing at any time and (y) the Specified Availability, expressed as a percentage, shall have been not less than the greater of (i) 10.0% of Availability and (ii) the Excess Availability Floor at any time, in each case for twenty-one (21) consecutive calendar days; provided that a Dominion Event may not be cured as contemplated by this sentence more than three (3) times in any four (4) Fiscal Quarter period.

EBITDA ”: for any period, the sum of (a) Consolidated Net Income for such period adjusted (i) to exclude the following items (without duplication) of income or expense to the extent that such items are included in the calculation of Consolidated Net Income: (A) Consolidated Interest Expense, (B) any non-cash expenses and charges, (C) total income tax expense, (D) depreciation expense, (E) the expense associated with amortization of intangible and other assets (including amortization or other expense recognition of any costs associated with asset write-ups in accordance with Financial Accounting Standards No. 141(R) and gains or losses associated with FASB Interpretation No. 45), (F) non-cash provisions for reserves for discontinued operations, (G) any extraordinary, unusual or non-recurring gains

 

22


or losses or charges or credits, including but not limited to any expenses relating to the Transactions and any non-recurring or extraordinary items paid or accrued during such period relating to deferred compensation owed to any Management Investor that was cancelled, waived or exchanged in connection with the grant to such Management Investor of the right to receive or acquire shares of Capital Stock of the Parent Borrower or any Parent Entity, (H) any gain or loss associated with the sale or write-down of assets not in the ordinary course of business, (I) any income or loss accounted for by the equity method of accounting (except in the case of income to the extent of the amount of cash dividends or cash distributions actually paid to the Parent Borrower or any of its Restricted Subsidiaries by the entity accounted for by the equity method of accounting), (J) the amount of any non-cash loss or gain attributable to non-controlling interests, (K) the cumulative effect of a change in accounting principles, (L) any unrealized foreign currency transaction gains or losses in respect of Indebtedness of any Person denominated in a currency other than the functional currency of such Person and (M) any unrealized foreign currency translation or transaction gains or losses in respect of Indebtedness or other obligations of the Parent Borrower or any Restricted Subsidiary owing to the Parent Borrower or any Restricted Subsidiary and (ii) by reducing EBITDA (as otherwise determined above) by the amount of all dividends paid by the Parent Borrower during the relevant period pursuant to any of clauses (a) and (b) of Subsection 8.3 (in each case, unless and to the extent (x) the amount paid with such dividends by the Parent Borrower any Parent Entity would not, if the respective expense or other item had been incurred directly by the Parent Borrower, have reduced EBITDA determined in accordance with the foregoing provisions of this definition or (y) such dividend is paid by the Parent Borrower in respect of an expense or other item that has resulted in, or will result in, a reduction of EBITDA, as calculated pursuant to clause (a) above) plus (b) the amount of net cost savings projected by the Parent Borrower in good faith to be realized as the result of actions taken or to be taken on or prior to the date that is 18 months after the Third Amendment Effective Date, or 18 months after the initiation or consummation of any operational change, respectively, and prior to or during such period (calculated on a Pro Forma Basis as though such cost savings had been realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions, provided that such cost savings are reasonably identifiable and factually supportable and in an aggregate amount, when aggregated with the amount of prospective net cost savings increasing EBITDA for such period pursuant to the definition of “Pro Forma Basis,” not to exceed 20% of EBITDA (prior to giving effect to any increase pursuant to this clause (b)) in any period of four (4) Fiscal Quarters, plus (c) only with respect to determining compliance with Subsection 8.1 hereof, any Specified Equity Contribution.

EEA Financial Institution ”: (a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition and is subject to the supervision of an EEA Resolution Authority, or (c) any institution established in an EEA Member Country which is a Subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision of an EEA Resolution Authority with its parent.

EEA Member Country ”: any of the member states of the European Union, Iceland, Liechtenstein and Norway.

EEA Resolution Authority ”: any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

EU Bail-In Legislation Schedule ”: the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

Eligible Accounts ”: all AMR Service Eligible Accounts, all EmCare General Eligible Accounts and all Other Eligible Accounts, or each one of them as the context may require.

 

23


Eligible Inventory ”: all Inventory of the Loan Parties relating to the AMR Business, except for any Inventory:

(a) that is damaged or unfit for use in the AMR Business or unfit for re-sale or return for credit;

(b) that is not of a type used by any Loan Party in the AMR Business in the ordinary course as is being conducted by each such party;

(c) that is not subject to a valid and perfected first priority Lien in favor of the Collateral Agent, as applicable, pursuant to a Security Document (as and to the extent provided therein (it being agreed that in no event shall any Excluded Assets be deemed to be Eligible Inventory hereunder));

(d) that is not owned by any Loan Party;

(e) that does not comply in all material respects with each of the representations and warranties respecting Eligible Inventory made in the Loan Documents;

(f) that consists of Materials of Environmental Concern that can be transported and used in the rendition of services or sold in connection with the AMR Business only with licenses that are not readily available;

(g) that is covered by a negotiable document of title, unless such document has been delivered to the Administrative Agent; or

(h) that is located outside the United States of America.

Notwithstanding the foregoing, the Security Agents may, from time to time, in the exercise of their Permitted Discretion, on not less than ten (10) Business Days’ prior notice to the Parent Borrower, change the criteria for Eligible Inventory as reflected on the Borrowing Base Certificate based on either: (i) an event, condition or other circumstance arising after the Third Amendment Effective Date, or (ii) an event, condition or other circumstance existing on the Third Amendment Effective Date to the extent the Security Agents had no knowledge thereof on or prior to the Third Amendment Effective Date, in either case under clause (i) or (ii), which adversely affects, or would reasonably be expected to adversely affect, Eligible Inventory in any material respect as determined by the Security Agents in the exercise of their Permitted Discretion. Any such change in criteria shall have a reasonable relationship to the event, condition or other circumstance that is the basis for such change. Upon delivery of the notice of such change pursuant to the foregoing sentence, the Security Agents shall be available to discuss the proposed change, and the applicable Borrower may take such action as may be required so that the event, condition or circumstance that is the basis for such change no longer exists, in a manner and to the extent reasonably satisfactory to the Security Agents in the exercise of their Permitted Discretion. Any Inventory of the Loan Parties that is not Eligible Inventory shall nevertheless be part of the Collateral as and to the extent provided in the Security Documents.

EmCare Business ”: (a) the provision of outsourced facility-based physician services to healthcare facilities in the United States in respect of emergency department, anesthesiology, hospitalist/inpatient, radiology, teleradiology, neonatal and office staffing and other businesses of a similar type or reasonably related thereto and any business related thereto, (b) the provision of office and home-based healthcare and related services by physicians, nurses, and licensed and non-licensed providers to individuals and other businesses of a similar type or reasonably related thereto and any business related thereto

 

24


and (c) the provision of billing and collection, recruiting, risk management, population health management, care coordination and related services, medical monitoring and call center services and other management services to healthcare facilities, insurance plans and other third parties (other than Related Corporations) in the United States and other businesses of a similar type or reasonably related thereto and any business related thereto.

EmCare General Accounts ”: all Accounts relating to paragraph (a) and paragraph (b) of the EmCare Business.

EmCare General Adjusted Eligible Accounts ”: an amount equal to:

(a) the product of (i) the aggregate amount of EmCare General Eligible Accounts multiplied by (ii) the most recent EmCare Projected Collection Rate for 0-180 Days; minus

(b) the sum of (i) any unreconciled differences plus (ii) an amount equal to the product of (x) unapplied cash relating to EmCare General Accounts that has not been applied to, or posted to, any EmCare General Account multiplied by (y) the Cash Eligible Account Rate applicable to EmCare General Eligible Accounts,

provided that the amount of Self-Pay Accounts that are included as EmCare General Adjusted Eligible Accounts, when aggregated with the amount of Self-Pay Accounts that are included as AMR Service Eligible Accounts, does not at any time exceed ten percent (10%) of the Borrowing Base (calculated for this purpose excluding the amount of any Self-Pay Accounts that would otherwise be included in the calculation thereof).

EmCare General Eligible Accounts ”: those EmCare General Accounts created by a Loan Party or a Related Corporation in the ordinary course of their business, which Accounts comply in all material respects with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one or more of the excluding criteria set forth below. EmCare General Eligible Accounts shall not include the following:

(a) any unearned amounts;

(b) if applicable, an amount equal to the amount of any reductions made to the gross amount invoiced or to be invoiced to Account Debtors reflecting contractual allowances provided to Account Debtors in respect of Accounts that would otherwise be EmCare General Eligible Accounts;

(c) Accounts that have not been billed by the date that is 30 days after the earlier of (i) the Service Date or (ii) the date as of which such Account is first included in the Borrowing Base Certificate or otherwise reported to the Security Agents as Collateral;

(d) billed Accounts that Account Debtors have failed to pay within one hundred and eighty (180) days after the original Service Date;

(e) (i) Accounts that have been written off, or (ii) Accounts that the Security Agents, in their Permitted Discretion, believe to be doubtful by reason of the Account Debtor’s financial condition, upon notice thereof to the Borrower Representative;

(f) Accounts with respect to which the Account Debtor is (i) an Affiliate of any Loan Party or Related Corporation or (ii) an employee or agent of any Loan Party or Related Corporation or any Affiliate of such Loan Party or Related Corporation, in each case, other than Accounts arising from the provision of medical care delivered in the ordinary course of business;

 

25


(g) Accounts that are not payable in Dollars;

(h) Accounts with respect to which the Account Debtor is insolvent, is subject to a proceeding related thereto, has gone out of business, or as to which a Related Corporation or a Loan Party has received notice of an imminent proceeding related to such Account Debtor being or alleged to be insolvent or which proceeding is reasonably likely to result in a material impairment of the financial condition of such Account Debtor;

(i) Accounts with respect to which the applicable Related Corporation’s or Loan Party’s right to receive payment is deferred or otherwise is not absolute or is contingent upon the fulfillment of any condition whatsoever (other than the preparation and delivery of an invoice), provided that any such Accounts shall be included as EmCare General Eligible Accounts once the related services have been rendered or all conditions have been met and such Accounts are otherwise not excluded under clauses (a) to (s) of this definition;

(j) Accounts with respect to which the Account Debtor is a Person other than a Governmental Authority unless: (i) the Account Debtor (A) is a natural person with a billing address in the United States, (B) maintains its Chief Executive Office in the United States, or (C) is organized under the laws of the United States or any state, territory or subdivision thereof; (ii) the Account Debtor is a Third Party Payor (excluding for this purpose Government Accounts), or (iii) (A) the Account is supported by an irrevocable letter of credit satisfactory to the Security Agents, in their Permitted Discretion (as to form, substance, and issuer or domestic confirming bank), that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (B) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to the Security Agents, in their Permitted Discretion;

(k) Accounts with respect to which the Account Debtor is the government of any country or sovereign state other than the United States, or of any state, municipality or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (i) the Account is supported by an irrevocable letter of credit satisfactory to the Security Agents, in their Permitted Discretion (as to form, substance, and issuer or domestic confirming bank) that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (ii) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to the Security Agents, in their Permitted Discretion;

(l) Accounts with respect to which the Account Debtor is the federal government of the United States or any department, agency or instrumentality of the United States (exclusive, however, of (i) Accounts with respect to which the applicable Loan Party has complied, to the reasonable satisfaction of the Security Agents, with the Assignment of Claims Act of 1940 (31 USC Section 3727) and (ii) Government Accounts, to the extent that these would otherwise be EmCare General Eligible Accounts);

(m) (i) Accounts with respect to which the Account Debtor is a creditor of any Related Corporation or Loan Party, and such Account Debtor has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such claim, right of setoff, or dispute, (ii) Accounts which are subject to a rebate that has been earned but not taken or a chargeback, to the extent of such rebate or chargeback, (iii) Accounts that comprise service charges or finance charges, or (iv) Accounts with respect to which the applicable Related Corporation or a Loan Party is not able to bring suit or otherwise enforce its remedies against the Account Debtor through judicial process;

 

26


(n) Accounts that are not owned by a Related Corporation or a Loan Party;

(o) Accounts which have been redated or extended ( provided that this shall not apply to any Accounts that have been re-categorized from one payor type to another payor type in the ordinary course of business);

(p) (i) with respect to EmCare General Eligible Accounts that are created by a Related Corporation, Accounts that are subject to any Lien in favor of another Person ( provided that (x) in no event shall any Excluded Assets be deemed to be EmCare General Eligible Accounts hereunder and (y) this exclusion shall not apply in respect of Liens permitted, mutatis mutandis, pursuant to Subsection 8.14(a) , 8.14(c) , 8.14(e) (to the extent that the Liens on such Accounts are at least as subordinated to the Liens thereon securing the Obligations as the Liens securing the Term Loan Facility Obligations under the ABL/Term Loan Intercreditor Agreement), 8.14(h) , 8.14(q) or 8.14(s) ) and (ii) with respect to EmCare General Eligible Accounts that are created by a Loan Party, Accounts that are not subject to a valid and perfected first priority Lien in favor of the Collateral Agent, as applicable, pursuant to a Security Document (as and to the extent provided therein ( provided that in no event shall any Excluded Assets be deemed to be EmCare General Eligible Accounts hereunder));

(q) Accounts that exceed the amount such Related Corporation or Loan Party is entitled to receive under any capitation arrangement, fee schedule, discount formula, cost-based reimbursement or other adjustment or limitation to such Loan Party’s usual charges (to the extent of such excess);

(r) Accounts with respect to which the services giving rise to such Account have not yet been performed;

(s) Accounts that were acquired or originated by a Person acquired in a Permitted Acquisition consisting either of (x) receivables of a type substantially different from those in the Borrowing Base at such time, or (y) receivables of a type substantially similar to those in the Borrowing Base at such time, provided that in the case of clause (y) only, such Accounts with an aggregate net book value in an amount not exceeding 10% of the aggregate Borrowing Base at the time of such Permitted Acquisition shall not be excluded, provided , further , that this clause (u) shall cease to exclude any Accounts of the type listed under clause (x) or (y) above at the time the Parent Borrower delivers to the Security Agents a field exam in form and substance reasonably satisfactory to the Security Agents prepared by a third party field examiner reasonably satisfactory to the Security Agents with respect to such acquired Accounts, or such field exam requirement is waived by the Security Agents; or

(t) Accounts of Related Corporations with respect to which the proceeds thereof are not subject to sweep or transfer arrangements providing for such proceeds to be swept or transferred into a Concentration Account in accordance with Subsection 4.16 (for the avoidance of doubt, without regard to the “commercially reasonable efforts” standards set forth therein).

Notwithstanding the foregoing, the Security Agents may, from time to time, in the exercise of their Permitted Discretion, on not less than ten (10) Business Days’ prior notice to the Parent Borrower, change the criteria for EmCare General Eligible Accounts as reflected on the Borrowing Base Certificate based on either: (i) an event, condition or other circumstance arising after the Third Amendment

 

27


Effective Date, or (ii) an event, condition or other circumstance existing on the Third Amendment Effective Date to the extent the Security Agents had no knowledge thereof on or prior to the Third Amendment Effective Date, in either case under clause (i) or (ii), which adversely affects, or would reasonably be expected to adversely affect, EmCare General Eligible Accounts in any material respect as determined by the Security Agents in the exercise of its Permitted Discretion. Any such change in criteria shall have a reasonable relationship to the event, condition or other circumstance that is the basis for such change. Upon delivery of the notice of such change pursuant to the foregoing sentence, the Security Agents shall be available to discuss the proposed change, and the applicable Borrower may take such action as may be required so that the event, condition or circumstance that is the basis for such change no longer exists, in a manner and to the extent reasonably satisfactory to the Security Agents in the exercise of their Permitted Discretion. Any Accounts of the Loan Parties that are not EmCare General Eligible Accounts shall nevertheless be part of the Collateral as and to the extent provided in the Security Documents.

EmCare Hospital Accounts ”: all Accounts that are subsidies payable in respect of EmCare Business services provided to healthcare facilities and reported in the Parent Borrower’s accounts receivables financial reporting systems under the category “Hospital” (or any successor category in the current accounts receivables financial reporting systems of the Parent Borrower or any successor accounts receivables financial reporting system).

EmCare Other Accounts ”: all Accounts relating to paragraph (c) of the definition of EmCare Business.

EmCare Projected Collection Analysis ”: the Parent Borrower’s analysis of write-offs and projected collectability of EmCare General Accounts by payor type consistent with the past practice of the Parent Borrower or otherwise in a form and level of detail reasonably acceptable to the Security Agents.

EmCare Projected Collection Rate for 0-180 Days ”: as of any date of determination, based on the most recent EmCare Projected Collection Analysis, a projected collection percentage calculated as follows: the percentage produced by dividing (A) the following amount: (i) the amount produced by multiplying (x) the projected “cash per visit” amount which the Parent Borrower expects to collect for each EmCare General Account billed during the six (6) consecutive month period ending on the date that is one (1) month prior to the date of determination by (y) the number of visits represented by the total number of billed EmCare General Accounts during such period, minus (ii) the aggregate amount of any payments actually received for EmCare General Accounts billed during such period, by (B) the total amount of billed EmCare General Eligible Accounts that are unpaid on the date of determination and have been outstanding for less than 180 days from the original Service Date, or a projected collection percentage calculated in another manner reasonably satisfactory to the Security Agents.

EmCare Projected Collection Rate for 180-360 Days ”: as of any date of determination, based on the most recent EmCare Projected Collection Analysis, a projected collection percentage calculated as follows: the percentage produced by dividing (A) the following amount: (i) the amount produced by multiplying (x) the projected “cash per visit” amount which the Parent Borrower expects to collect for each EmCare General Account billed during the six (6) consecutive month period ending on the date that is seven (7) months prior to the date of determination by (y) the number of visits represented by the total number of billed EmCare General Accounts during such period, minus (ii) the aggregate amount of any payments actually received for EmCare General Accounts billed during such period, by (B) the total amount of billed EmCare General Eligible Accounts that are unpaid on the date of determination and have been outstanding for more than 180 days and less than 360 days from the original Service Date, or a projected collection percentage calculated in another manner reasonably satisfactory to the Security Agents.

 

28


Environmental Costs ”: any and all costs or expenses (including attorney’s and consultant’s fees, investigation and laboratory fees, response costs, court costs and litigation expenses, fines, penalties, damages, settlement payments, judgments and awards), of whatever kind or nature, known or unknown, contingent or otherwise, arising out of, or in any way relating to, any actual or alleged violation of, noncompliance with or liability under any Environmental Laws. Environmental Costs include any and all of the foregoing, without regard to whether they arise out of or are related to any past, pending or threatened proceeding of any kind.

Environmental Laws ”: any and all U.S. or foreign, federal, state, provincial, territorial, local or municipal laws, rules, orders, enforceable guidelines and orders-in-council, regulations, statutes, ordinances, codes, decrees, and such requirements of any Governmental Authority properly promulgated and having the force and effect of law or other Requirements of Law (including common law) regulating, relating to or imposing liability or standards of conduct concerning protection of human health (as it relates to exposure to Materials of Environmental Concern) or the environment, as have been, or now or at any relevant time hereafter are, in effect.

Environmental Permits ”: any and all permits, licenses, registrations, notifications, exemptions and any other authorization required under any Environmental Law.

ERISA ”: the Employee Retirement Income Security Act of 1974, as amended from time to time.

Eurodollar Loans ”: Loans the rate of interest applicable to which is based upon the Adjusted LIBOR Rate.

Event of Default ”: any of the events specified in Subsection 9.1 , provided that any requirement for the giving of notice, the lapse of time, or both, or any other condition, has been satisfied.

Excess Availability ”: as of any date of determination, the excess, if any, of (a) Availability over (b) Aggregate Lender Exposure at such time. For purposes of the definition of “ Payment Condition ,” the Excess Availability shall be calculated on a pro forma basis to include the borrowing or repayment of any Loans or issuance or cancellation of any Letters of Credit in connection with the proposed transaction.

Excess Availability Floor ”: at any time, an amount equal to $85,000,000.

Exchange Act ”: the Securities Exchange Act of 1934, as amended from time to time.

Excluded Accounts Receivable ”: all Accounts for which the Parent Borrower is unable to provide supporting information and data necessary, as determined by the Security Agents in their reasonable discretion, to determine eligibility.

Excluded Assets ”: as defined in the Guarantee and Collateral Agreement.

Excluded Bank Accounts ”: (a) bank accounts the balance of which consists exclusively of and used exclusively for (i) withheld income taxes and federal, state or local employment taxes in such amounts as are required in the reasonable judgment of the Parent Borrower to be paid to the Internal Revenue Service or state or local government agencies within the following two months with respect to employees of any of the Loan Parties or any Related Corporation and (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. Sec. 2510.3-102 on behalf of or for the benefit of employees of one or more Loan Parties or any Related Corporation, (b) bank accounts constituting (and the balance of which consists solely of funds set aside to be used in connection with) taxes bank accounts and payroll bank accounts and (c) bank accounts constituting “zero balance” disbursement accounts.

 

29


Excluded Contribution ”: (a) Net Proceeds, or the Fair Market Value of property or assets, received by the Parent Borrower as capital contributions to the Parent Borrower after the Third Amendment Effective Date or (b) Net Proceeds from the public or private issuance or sale (other than to a Restricted Subsidiary) of Capital Stock (other than Disqualified Capital Stock) by, or a capital contribution to, the Parent Borrower, in each case to the extent designated as an “Excluded Contribution” in a certificate of a Responsible Officer of the Parent Borrower delivered to the Administrative Agent; provided , however , that Net Proceeds received by the Parent Borrower in connection with any contributions of non-cash property or assets shall only be included so long as such non-cash property or assets were acquired by the Parent Entity of the Parent Borrower in an arms-length transaction within six (6) months prior to such contribution.

Excluded Liability ”: any liability that is excluded under the Bail-In Legislation from the scope of any Bail-In Action including, without limitation, any liability excluded pursuant to Article 44 of the Bank Recovery and Resolution Directive.

Excluded Subsidiary ”: at any date of determination, any Subsidiary of the Parent Borrower:

(a) that is an Immaterial Subsidiary;

(b) that is prohibited by Requirement of Law or Contractual Obligations existing on the Third Amendment Effective Date (or, in the case of any newly acquired Subsidiary, in existence at the time of acquisition but not entered into in contemplation thereof) from Guaranteeing, or granting Liens to secure, the Obligations or if Guaranteeing, or granting Liens to secure, the Obligations would require governmental (including regulatory) consent, approval, license or authorization unless such consent, approval, license or authorization has been received;

(c) with respect to which the Parent Borrower and the Security Agents reasonably agree that the burden or cost or other consequences of providing a guarantee of the Obligations shall be excessive in view of the benefits to be obtained by the Lenders therefrom;

(d) with respect to which the provision of such guarantee of the Obligations would result in material adverse tax consequences to the Parent Borrower or one of its Subsidiaries (as reasonably determined by the Parent Borrower and notified in writing to the Security Agents);

(e) that is a Subsidiary of a Foreign Subsidiary;

(f) that is a joint venture or any non-Wholly Owned Subsidiary;

(g) that is an Unrestricted Subsidiary;

(h) that is a Captive Insurance Subsidiary;

(i) that is a special purpose entity; or

(j) EMS Executive Investco LLC, a Delaware limited liability company;

 

30


provided , however , that no Subsidiary of the Parent Borrower shall be an “Excluded Subsidiary” if such Subsidiary is not an “Excluded Subsidiary” (or comparable term) for purposes of the Term Loan Facility. Subject to the proviso in the preceding sentence, any Subsidiary that fails to meet the foregoing requirements as of the last day of the Most Recent Four Quarter Period shall continue to be deemed an Excluded Subsidiary hereunder until the date that is sixty (60) days following the date on which such annual or quarterly financial statements were required to be delivered pursuant to Subsection 7.1 with respect to such Most Recent Four Quarter Period.

Excluded Taxes ”: (a) any Taxes measured by or imposed upon the net income of any Agent or Lender or its applicable lending office, or any branch or affiliate thereof, and all franchise Taxes, branch Taxes, Taxes on doing business or Taxes measured by or imposed upon the overall capital or net worth of any such Agent or Lender or its applicable lending office, or any branch or affiliate thereof, in each case imposed: (i) by the jurisdiction under the laws of which such Agent or Lender, applicable lending office, branch or affiliate is organized or is located, or in which its principal executive office is located, or any nation within which such jurisdiction is located or any political subdivision thereof; or (ii) by reason of any connection between the jurisdiction imposing such Tax and such Agent or Lender, applicable lending office, branch or affiliate other than a connection arising solely from such Agent or Lender having executed, delivered or performed its obligations under, or received payment under or enforced, this Agreement or any Notes, and (b) any Tax imposed by FATCA.

Exempt Sale and Leaseback Transaction ”: any Sale and Leaseback Transaction (a) in which the sale or transfer of property occurs within 90 days of the acquisition of such property by the Parent Borrower or any of its Restricted Subsidiaries or (b) that involves property with a book value of $50,000,000 or less, and is not part of a series of related Sale and Leaseback Transactions involving property with an aggregate value in excess of such amount and entered into with a single Person or group of Persons.

Existing Financing Leases ”: Financing Leases of the Parent Borrower and its Restricted Subsidiaries existing on the Third Amendment Effective Date or permitted to be incurred under the 2016 Merger Agreement and disclosed on Schedule 1.1(c) .

Existing Letters of Credit ”: Letters of Credit issued prior to, and outstanding on, the Third Amendment Effective Date and disclosed on Schedule 1.1(d) .

Existing Mandatory Convertible Preferred ”: the Parent Borrower’s 5.25% Mandatory Convertible Preferred Stock, Series A-1, with a liquidation preference of $100 per share, issued on July 16, 2014.

Extended ABL Term Loans ”: as defined in Subsection 2.8(a) .

Extended Revolving Commitment ”: as defined in Subsection 2.8(a) .

Extending ABL Term Lenders ”: as defined in Subsection 2.8(a) .

Extending Lenders ”: as defined in Subsection 2.8(a) .

Extending Revolving Credit Lender ”: as defined in Subsection 2.8(a) .

Extension ”: as defined in Subsection 2.8(a) .

Extension Election ”: as defined in Subsection 2.8(d) .

 

31


Extension of Credit ”: as to any Lender, the making of a Loan or the issuance of a Letter of Credit by such Lender.

Extension Offer ”: as defined in Subsection 2.8(a) .

Extension Offer Deadline ”: as defined in Subsection 2.8(d) .

Facility ”: each of (a) the Commitments and the Extensions of Credit made thereunder and (b) any other committed facility hereunder and the Extensions of Credit made thereunder.

Fair Market Value ”: with respect to any asset or property, the fair market value of such asset or property as determined in good faith by the senior management of the Parent Borrower or the Board of Directors, whose determination shall be conclusive.

FATCA ”: Sections 1471 through 1474 of the Code as in effect on the Third Amendment Effective Date (and any amended or successor provisions that are substantively comparable), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with any of the foregoing and any fiscal or regulatory legislation, rules or practices adopted pursuant to any such intergovernmental agreement.

Federal District Court ”: as defined in Subsection 11.13(a) .

Federal Funds Effective Rate ”: for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate.

Fee Letter ”: the fee letter agreement, dated June 15, 2016 (as amended by that certain Letter Agreement Pursuant to Commitment Letter dated June 15, 2016 dated as of July 7, 2016, as amended by that certain Letter Agreement Pursuant to Commitment Letter dated June 15, 2016 dated as of July 8, 2016 and as may be further amended, supplemented or otherwise modified from time to time) by and among the Borrower, AmSurg Corp., JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wells Fargo Bank, National Association, Wells Fargo Securities, LLC, SunTrust Bank, SunTrust Robinson Humphrey, Inc., Deutsche Bank AG New York Branch, Deutsche Bank Securities Inc., BMO Harris Bank N.A., BMO Capital Markets Corp., RBC Capital Markets, LLC and Bank of America, N.A.

FILO Tranche ”: as defined in Subsection 2.6(b)(iii) .

Financial Covenant Debt ”: with respect to any Person, without duplication, Indebtedness of the type specified in clauses (a) through (f) of the definition of “Indebtedness” plus, without duplication, any Guarantee Obligations in respect thereof; provided , however , that Indebtedness of the type specified in clause (d) of the definition thereof shall only be included on the date Indebtedness of such Person is being determined to the extent such Indebtedness identified in such clause constitutes a non-contingent reimbursement obligation owing at such time and clause (e) of the definition thereof shall not include payments required upon any early termination on the date Indebtedness of such Person is being determined if no such early termination has occurred.

Financing Lease ”: any lease of property, real or personal, the obligations of the lessee in respect of which are required in accordance with GAAP to be capitalized on a balance sheet of the lessee. The Stated Maturity of any Indebtedness under a Financing Lease shall be the scheduled date under the terms thereof of the last payment of rent or any other amount due under such Financing Lease.

 

32


Financing Lease Obligations ”: obligations under any Financing Lease.

FIRREA ”: the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended from time to time.

First Lien Term Obligations ”: (i) the Term Loan Facility Obligations and (ii) the Additional Obligations, the Permitted Debt Exchange Notes, Rollover Indebtedness and refinancing Indebtedness in respect of the Indebtedness described in this clause (ii) (other than any such Additional Obligations, Permitted Debt Exchange Notes, Rollover Indebtedness and refinancing Indebtedness that are unsecured or secured by a Lien ranking junior to the Lien securing the Term Loan Facility Obligations) secured by a first priority interest in the Term Loan Priority Collateral and a second priority interest in the ABL Priority Collateral, collectively.

first priority ”: with respect to any Lien purported to be created in any Collateral pursuant to any Security Document, that such Lien is the most senior Lien to which such Collateral is subject (subject to Customary Permitted Liens, Retained Rights and Liens permitted under Subsection 8.14(h) ).

Fiscal Period ”: each fiscal month of the Parent Borrower as described on Schedule 1.1(e) .

Fiscal Quarter ”: for any Fiscal Year, (i) the fiscal period commencing on January 1 of such Fiscal Year and ending on March 31 of such Fiscal Year, (ii) the fiscal period commencing on April 1 of such Fiscal Year and ending on June 30 of such Fiscal Year, (iii) the fiscal period commencing on July 1 of such Fiscal Year and ending on September 30 of such Fiscal Year and (iv) the fiscal period commencing on October 1 of such Fiscal Year and ending on December 31 of such Fiscal Year.

Fiscal Year ”: any period of twelve (12) consecutive months ending on December 31 of any calendar year or any other period agreed by the Parent Borrower and the Administrative Agent pursuant to Subsection 7.11 .

Fixed GAAP Date ”: the Closing Date, provided that at any time after the Third Amendment Effective Date, the Parent Borrower may by written notice to the Administrative Agent elect to change the Fixed GAAP Date to be the date specified in such notice, and upon such notice, the Fixed GAAP Date shall be such date for all periods beginning on and after the date specified in such notice.

Fixed GAAP Terms ”: (a) the covenants contained in Subsections 8.1 and 8.13 and the defined terms “Capital Expenditures,” “Consolidated Fixed Charge Coverage Ratio,” “Consolidated Interest Expense,” “Consolidated Net Income,” “Consolidated Total Assets,” “Debt Service Charges,” “EBITDA,” “Financial Covenant Debt,” “Financing Lease Obligations,” “Pro Forma Basis,” “Pro Forma Compliance” or “Total Leverage Ratio,” (b) in each case all defined terms in this Agreement related thereto to the extent used in or relating to any of the foregoing definitions, and all ratios and computations based on any of the foregoing definitions, and (c) any other term or provision of this Agreement or the Loan Documents that, at the Parent Borrower’s election, may be specified by the Parent Borrower by written notice to the Administrative Agent from time to time.

Foreign Pension Plan ”: a registered pension plan which is subject to applicable pension legislation other than ERISA or the Code, which a Restricted Subsidiary sponsors or maintains, or to which it makes or is obligated to make contributions.

 

33


Foreign Plan ”: each Foreign Pension Plan, deferred compensation or other retirement or superannuation plan, fund, program, agreement, commitment or arrangement whether oral or written, funded or unfunded, sponsored, established, maintained or contributed to, or required to be contributed to, or with respect to which any liability is borne, outside the United States of America, by the Parent Borrower or any of its Restricted Subsidiaries, other than any such plan, fund, program, agreement or arrangement sponsored by a Governmental Authority.

Foreign Subsidiary ”: any Subsidiary of the Parent Borrower which is organized and existing under the laws of any jurisdiction outside of the United States of America and any Subsidiary of such Foreign Subsidiary or that is a Foreign Subsidiary Holdco. Any subsidiary of the Parent Borrower which is organized and existing under the laws of Puerto Rico or any other territory of the United States of America shall be a Foreign Subsidiary.

Foreign Subsidiary Holdco ”: any Restricted Subsidiary of the Parent Borrower, so long as such Restricted Subsidiary has no material assets other than securities or Indebtedness of one or more Foreign Subsidiaries (or Subsidiaries thereof), and intellectual property relating to such Foreign Subsidiaries (or Subsidiaries thereof) and other assets (including cash, Cash Equivalents or Temporary Cash Investments) relating to an ownership interest in any such securities, Indebtedness, intellectual property or Subsidiaries; provided that no Subsidiary of the Parent Borrower shall be a “Foreign Subsidiary Holdco” if such Subsidiary is not a “Foreign Subsidiary Holdco” (or comparable term) for purposes of the Term Loan Facility.

GAAP ”: generally accepted accounting principles in the United States of America as in effect on the Fixed GAAP Date (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other purposes of this Agreement), including those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession, and subject to the following sentence. If at any time the SEC permits or requires U.S. domiciled companies subject to the reporting requirements of the Exchange Act to use IFRS in lieu of GAAP for financial reporting purposes, the Parent Borrower may elect by written notice to the Administrative Agent to so use IFRS in lieu of GAAP and, upon any such notice, references herein to GAAP shall thereafter be construed to mean (a) for periods beginning on and after the date specified in such notice, IFRS as in effect on the date specified in such notice (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other purposes of this Agreement) and (b) for prior periods, GAAP as defined in the first sentence of this definition. All ratios and computations based on GAAP contained in this Agreement shall be computed in conformity with GAAP.

General Intangibles ”: “general intangibles” (as such term is defined in Article 9 of the UCC), including payment intangibles, contract rights, rights to payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents, trade names, trade secrets, trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders, customer lists, monies due or recoverable from pension funds, route lists, rights to payment and other rights under any royalty or licensing agreements, infringement claims, computer programs, information contained on computer disks or tapes, software, literature, reports, catalogs, insurance premium rebates, tax refunds, and tax refund claims, and any and all supporting obligations in respect thereof, and any other personal property other than Accounts, Deposit Accounts, goods, Investment Property, and Negotiable Collateral.

Government Accounts ”: Restricted Government Accounts and Unrestricted Government Accounts.

 

34


Government Accounts Receivable ”: any right to payment for goods sold or services rendered for Restricted Government Accounts.

Government Accounts Receivable Bank ”: any bank at which a Government Receivables Deposit Account is maintained.

Government Receivables Deposit Account ”: any Deposit Accounts containing or receiving Government Accounts Receivable deposited or transferred by Governmental Authorities.

Governmental Authority ”: the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational bodies such as the European Union or the European Central Bank).

Guarantee ”: any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other obligation of any other Person; 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.

Guarantee and Collateral Agreement ”: the Guarantee and Collateral Agreement, dated as of the Closing Date, by and among the Loan Parties and the Collateral Agent, as the same may be amended, supplemented, waived or otherwise modified from time to time.

Guarantee Obligation ”: as to any Person (the “ guaranteeing person ”), any obligation of (a) the guaranteeing person or (b) another Person (including any bank under any letter of credit) to induce the creation of which the guaranteeing person has issued a reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “ primary obligations ”) of any other third Person (the “ primary obligor ”) in any manner, whether directly or indirectly, including any such obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A) for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided , however , that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by the Borrower Representative in good faith.

Guarantors ”: the collective reference to each Subsidiary Guarantor; individually, a “Guarantor.”

Hedging Affiliate ”: as defined in the ABL/Term Loan Intercreditor Agreement.

 

35


Hedging Agreement ”: as defined in the ABL/Term Loan Intercreditor Agreement.

Hedging Arrangement ”: as defined in Subsection 8.10 .

Hedging Party ”: any Hedging Affiliate party to an Interest Rate Protection Agreement, Hedging Agreement or other Permitted Hedging Arrangement.

HIPAA ”: has the meaning provided in Subsection 7.6(c) .

Hospital Joint Venture ”: a Person that (a) is owned by (i) the Parent Borrower or any Restricted Subsidiary and (ii) a hospital or health system or an Affiliate thereof; (b) owns more than 50% of the outstanding Capital Stock of an Operating Entity and (c) is not subject to any contractual obligation that limits the ability of such Person to pay dividends or make any other distribution on any of such Person’s Capital Stock or other equity interests owned by the Parent Borrower or any Restricted Subsidiary, other than restrictions comparable to those described under Subsection 8.8 (except transactions described in clause (a), (e)(vi), (h) or (i) of such subsection); provided , however , that the Parent Borrower or any Restricted Subsidiary must own no less than 40% of the outstanding Capital Stock of such Person.

IFRS ”: International Financial Reporting Standards and applicable accounting requirements set by the International Accounting Standards Board or any successor thereto (or the Financial Accounting Standards Board, the Accounting Principles Board of the American Institute of Certified Public Accountants, or any successor to either such board, or the SEC, as the case may be), as in effect from time to time.

Immaterial Subsidiary ”: any Subsidiary of the Parent Borrower designated as such in writing by the Borrower Representative to the Security Agents that (i) (x) contributed 2.50% or less of EBITDA for the Most Recent Four Quarter Period, and (y) had consolidated assets representing 2.50% or less of Consolidated Total Assets for the Most Recent Four Quarter Period; and (ii) together with all other Immaterial Subsidiaries designated pursuant to the preceding clause (i) (x) contributed 5.00% or less of EBITDA for the Most Recent Four Quarter Period, and (y) had consolidated assets representing 5.00% or less of Consolidated Total Assets for the Most Recent Four Quarter Period; provided , however , that no Subsidiary of the Parent Borrower shall be an “Immaterial Subsidiary” if such Subsidiary is not an “Immaterial Subsidiary” (or comparable term) for purposes of the Term Loan Facility. Subject to the proviso in the preceding sentence, any Subsidiary so designated as an Immaterial Subsidiary that fails to meet the foregoing requirements as of the last day of the Most Recent Four Quarter Period shall continue to be deemed an “Immaterial Subsidiary” hereunder until the date that is sixty (60) days following the date on which such annual or quarterly financial statements were required to be delivered pursuant to Subsection 7.1(a) or 7.1(b) with respect to such Most Recent Four Quarter Period.

Incremental ABL Term Loans ”: as defined in Subsection 2.6(a) .

Incremental Facility ” and “ Incremental Facilities ”: as defined in Subsection 2.6(a) .

Incremental Facility Increase ”: as defined in Subsection 2.6(a) .

Incremental Indebtedness ”: Indebtedness incurred by any Borrower pursuant to and in accordance with Subsection 2.6 .

Incremental Revolving Commitment Effective Date ”: as defined in Subsection 2.6(d) .

Incremental Revolving Commitments ”: as defined in Subsection 2.6(a) .

 

36


Indebtedness ”: of any Person at any date, (a) all indebtedness of such Person for borrowed money or for the deferred purchase price of property (other than trade liabilities incurred in the ordinary course of business and payable in accordance with customary practices), which purchase price is due more than one year after the date of placing such property in final service or taking final delivery and title thereto, (b) any other indebtedness of such Person which is evidenced by a note, bond, debenture or similar instrument, (c) all obligations of such Person under Financing Leases, (d) all obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar instruments issued or created for the account of such Person, (e) for purposes of Subsection 9.1(e) only, all obligations of such Person in respect of interest rate protection agreements, interest rate futures, interest rate options, interest rate caps and any other interest rate hedge arrangements, (f) all indebtedness or obligations of the types referred to in the preceding clauses (a) through (e) to the extent secured by any Lien on any property owned by such Person even though such Person has not assumed or otherwise become liable for the payment thereof and (g) Guarantee Obligations of such Person in respect of any Indebtedness of the type described in the preceding clauses (a) through (f).

Individual Lender Exposure ”: of any Revolving Credit Lender, at any time, the sum of (a) the aggregate principal amount of all Revolving Credit Loans made by such Lender and then outstanding, (b) the sum of such Lender’s Commitment Percentage in each then outstanding Letter of Credit multiplied by the sum of the Stated Amount of the respective Letters of Credit and any Unpaid Drawings relating thereto and (c) such Lender’s Commitment Percentage of the Swingline Loans then outstanding.

Initial Agreement ”: as defined in Subsection 8.8(d) .

Insolvency ”: with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245 of ERISA.

Intellectual Property ”: as defined in Subsection 5.9 .

Intercreditor Agreement Supplement ”: as defined in Subsection 10.8(a) .

Interest Payment Date ”: (a) as to any ABR Loan, the last Business Day of each March, June, September and December to occur while such Loan is outstanding, and the final maturity date of such Loan, (b) as to any Eurodollar Loan having an Interest Period of three months or less, the last day of such Interest Period, and (c) as to any Eurodollar Loan having an Interest Period longer than three months, (i) each day which is three months, or a whole multiple thereof, after the first day of such Interest Period and (ii) the last day of such Interest Period.

Interest Period ”: with respect to any Eurodollar Loan:

(a) initially, the period commencing on the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and ending one, three or six (6) months (or, if required pursuant to Subsection 2.1(a) , or agreed to by each affected Lender, two (2) months, twelve (12) months or a shorter period) thereafter, as selected by the Borrower Representative in its notice of borrowing or notice of conversion, as the case may be, given with respect thereto; and

(b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such Eurodollar Loan and ending one, three or six (6) months (or if required pursuant to Subsection 2.1(a) or agreed to by each affected Lender, two (2) months, twelve (12) months or a shorter period) thereafter, as selected by the Borrower Representative by irrevocable notice to the Administrative Agent not less than three Business Days (or such shorter period as

 

37


may be agreed by the Agent) prior to the last day of the then current Interest Period with respect thereto; provided that all of the foregoing provisions relating to Interest Periods are subject to the following:

(i) if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day;

(ii) any Interest Period that would otherwise extend beyond the Termination Date shall (for all purposes other than Subsection 4.12 ) end on the Termination Date;

(iii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; and

(iv) the Borrower Representative shall select Interest Periods so as not to require a scheduled payment of any Eurodollar Loan during an Interest Period for such Loan.

Interest Rate Protection Agreement ”: with respect to any Person, any interest rate protection agreement, future agreement, option agreement, swap agreement, cap agreement, collar agreement, hedge agreement or other similar agreement or arrangement (including derivative agreements or arrangements) as to which such Person is a party or a beneficiary.

Interpolated Rate ”: at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBOR Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBOR Screen Rate for the longest period for which the LIBOR Screen Rate is available) that is shorter than the Impacted Interest Period; and (b) the LIBOR Screen Rate for the shortest period (for which that LIBOR Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.

Inventory ”: inventory (as defined in Article 9 of the UCC).

Investment ”: in any Person by any other Person, any direct or indirect advance, loan or other extension of credit (other than to customers, dealers, licensees, franchisees, suppliers, directors, officers or employees of any Person in the ordinary course of business) or capital contribution (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others) to, or any purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by, such Person. For purposes of the definition of “Unrestricted Subsidiary” and Subsection 8.12 only (i) “Investment” shall include the portion (proportionate to the Parent Borrower’s equity interest in such Subsidiary) of the Fair Market Value of the net assets of any Subsidiary of the Parent Borrower at the time that such Subsidiary is designated an Unrestricted Subsidiary, provided that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Parent Borrower shall be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to (x) the Parent Borrower’s “Investment” in such Subsidiary at the time of such redesignation less (y) the portion (proportionate to the Parent Borrower’s equity interest in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time of such redesignation and (ii) any property transferred to or from an

 

38


Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of such transfer. Guarantees shall not be deemed to be Investments. The amount of any Investment outstanding at any time shall be the original cost of such Investment, reduced (at the Parent Borrower’s option) by any dividend, distribution, interest payment, return of capital, repayment or other amount or value received in respect of such Investment.

Investment Company Act ”: the Investment Company Act of 1940, as amended from time to time.

Investment Grade Rating ”: a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or any equivalent rating by any other Rating Agency.

Investment Grade Securities ”: (i) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (other than Cash Equivalents); (ii) debt securities or debt instruments with an Investment Grade Rating, but excluding any debt securities or instruments constituting loans or advances among the Parent Borrower and its Subsidiaries; (iii) investments in any fund that invests exclusively in investments of the type described in clauses (i) and (ii) above, which fund may also hold cash pending investment or distribution; and (iv) corresponding instruments in countries other than the United States customarily utilized for high quality investments.

Investment Property ”: “investment property” (as such term is defined in Article 9 of the UCC) and any and all supporting obligations in respect thereof.

ISP ”: the International Standby Practices (1998), International Chamber of Commerce Publication No. 590.

Issuing Lender ”: as the context may require, (a) Deutsche Bank AG New York Branch, in its capacity as issuer of Letters of Credit issued by it; (b) Bank of America, N.A., in its capacity as issuer of Letters of Credit (including in its capacity as issuer of the Existing Letters of Credit); (c) JPMorgan Chase Bank, N.A., in its capacity as issuer of Letters of Credit issued by it, (d) Barclays Bank PLC, in its capacity as issuer of Letters of Credit issued by it, (e) any other Lender that may become an Issuing Lender pursuant to Subsections   3.10 and 3.11 in its capacity as issuer of Letters of Credit issued by such Lender; or (f) collectively, all of the foregoing.

Junior Lien Intercreditor Agreement ”: the intercreditor agreement substantially in the form of Exhibit   P to the Original Credit Agreement to be entered into as required by the terms hereof, as amended, supplemented, waived or otherwise modified, from time to time.

L/C Disbursement ”: as defined in Subsection   3.5 .

L/C Exposure ”: at any time the aggregate principal amount at such time of the L/C Obligations. The L/C Exposure of any Revolving Credit Lender at any time shall equal its Commitment Percentage of the aggregate L/C Exposure at such time.

L/C Fee Payment Date ”: with respect to any Letter of Credit, the last Business Day each of March, June, September and December to occur after the date of issuance thereof, to and including the first such day to occur on or after the date of expiry thereof; provided that if any L/C Fee Payment Date would otherwise occur on a day that is not a Business Day, such L/C Fee Payment Date shall be the immediately preceding Business Day.

L/C Fees ”: the fees and commissions specified in Subsection 3.3 .

 

39


L/C Obligations ”: at any time, an amount equal to the sum of (a) the aggregate then undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit which have not then been reimbursed pursuant to Subsection   3.5(a) .

L/C Request ”: a letter of credit request in the form of Exhibit J attached to the Original Credit Agreement or, in such form as the applicable Issuing Lender may specify from time to time, requesting the Issuing Lender to issue a Letter of Credit.

Lead Arrangers ”: JPMorgan Chase Bank, N.A., Barclays Bank PLC, Bank of America, N.A., Wells Fargo Bank, National Association and SunTrust Robinson Humphrey, Inc., as Joint Lead Arrangers.

Lender Default ”: (a) the refusal (which may be given verbally or in writing and has not been retracted) or failure of any Lender (including any Agent in its capacity as Lender) to make available its portion of any incurrence of Loans or reimbursement obligations, which refusal or failure is not cured within one (1) Business Day after the date of such refusal or failure, (b) the failure of any Lender (including any Agent in its capacity as Lender) to pay over to the Administrative Agent, any Issuing Lender or any other Lender any other amount required to be paid by it hereunder within one (1) Business Day of the date when due, unless the subject of a good faith dispute, (c) a Lender (including any Agent in its capacity as Lender) has notified the Parent Borrower or the Administrative Agent that it does not intend to comply with its funding obligations hereunder, (d) a Lender (including any Agent in its capacity as Lender) has failed, within ten (10) Business Days after request by the Administrative Agent, to confirm that it will comply with its funding obligations hereunder or (e) an Agent or a Lender has admitted in writing that it is insolvent or such Agent or Lender becomes subject to a Lender-Related Distress Event or a Bail-In Action.

Lender Joinder Agreement ”: as defined in Subsection 2.6(c)(i) .

Lender-Related Distress Event ”: with respect to any Agent or Lender (each, a “ Distressed Person ”), a voluntary or involuntary case with respect to such Distressed Person under any debt relief law, or a custodian, conservator, receiver or similar official is appointed for such Distressed Person or any substantial part of such Distressed Person’s assets, or such Distressed Person makes a general assignment for the benefit of creditors or is otherwise adjudicated as, or determined by any Governmental Authority having regulatory authority over such Distressed Person to be, insolvent or bankrupt; provided that a Lender-Related Distress Event shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any equity interests in any Agent or Lender or any person that directly or indirectly controls such Agent or Lender by a Governmental Authority or an instrumentality thereof.

Lenders ”: the several banks and other financial institutions from time to time parties to this Agreement together with, in each case, any affiliate of any such bank or financial institution through which such bank or financial institution elects, by notice to the Administrative Agent and the Borrower Representative to make any Revolving Credit Loans, Swingline Loans or Letters of Credit available to any Borrower, provided that for all purposes of voting or consenting with respect to (a) any amendment, supplementation or modification of any Loan Document, (b) any waiver of any of the requirements of any Loan Document or any Default or Event of Default and its consequences or (c) any other matter as to which a Lender may vote or consent pursuant to Subsection   11.1 hereof, the bank or financial institution making such election shall be deemed the “Lender” rather than such affiliate, which shall not be entitled to so vote or consent.

Letter of Credit Sublimit ”: with respect to (i) Deutsche Bank AG New York Branch, $50,000,000, (ii) JPMorgan Chase Bank, N.A., $84,000,000, (iii) each of Bank of America, N.A. and

 

40


Barclays Bank PLC, $83,000,000 and (iv) any other Issuing Lender, such amount as may be agreed in writing between the Borrower Representative and such Issuing Lender and notified in writing by the Borrower Representative to the Administrative Agent.

Letters of Credit ” or “ L/Cs ”: letters of credit (including Existing Letters of Credit) issued by any Issuing Lender to, or for the account of the Borrowers, pursuant to Section   3 .

LIBOR Rate ”: with respect to any Eurodollar Borrowing for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for U.S. dollars for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; in each case the “ LIBOR Screen Rate ”) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period; provided that if the LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided further that if the Screen Rate shall not be available at such time for such Interest Period (an “ Impacted Interest Period ”) then the LIBOR Rate shall be the Interpolated Rate; provided that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

LIBOR Screen Rate ”: as defined in the definition of “LIBOR Rate.”

Lien ”: any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof).

Loan ”: a Revolving Credit Loan or a Swingline Loan, as the context shall require; collectively, the “Loans.”

Loan Documents ”: this Agreement, any Notes, the L/C Requests, the ABL/Term Loan Intercreditor Agreement, the Guarantee and Collateral Agreement, the Junior Lien Intercreditor Agreement (on and after the execution thereof), each Other Intercreditor Agreement (on and after the execution thereof) and any other Security Documents, each as amended, supplemented, waived or otherwise modified from time to time.

Loan Parties ”: the Borrowers and the Subsidiary Guarantors; individually, a “ Loan Party .”

Loan Party Concentration Account ”: any concentration account maintained by any Loan Party (other than any such concentration account if such concentration account is (i) an Excluded Bank Account or (ii) all of the funds and other assets owned by a Loan Party held in such concentration account are excluded from the Collateral pursuant to any Security Document, including Excluded Assets) into which the funds in any Loan Party DDA and/or any funds in any Related Corporation DDA or Related Corporation Concentration Account are transferred on a periodic basis as provided for in Subsection 4.16(b) , as shall be set forth on Part 4 of Schedule 4.16 in all material respects as updated from time to time in accordance with the provisions of this Agreement. All funds in any Loan Party Concentration Account shall be conclusively presumed to be Collateral and proceeds of Collateral and the Agents and the Lenders shall have no duty to inquire as to the source of the amounts on deposit in such Loan Party Concentration Account, subject to the Security Documents, the ABL/Term Loan Intercreditor Agreement or any other applicable intercreditor agreement.

 

41


Loan Party DDA ”: any checking or other demand deposit bank account maintained by any Loan Party (other than any such checking or other demand deposit account if such checking or other demand deposit account is (i) an Excluded Bank Account or (ii) all of the funds and other assets owned by a Loan Party held in such checking or other demand deposit account are excluded from the Collateral pursuant to any Security Document, including Excluded Assets) into which the proceeds of ABL Priority Collateral are deposited or are expected to be deposited, as shall be set forth on Part 3 of Schedule 4.16 in all material respects as updated from time to time in accordance with the provisions of this Agreement. All funds in any Loan Party DDA shall be conclusively presumed to be Collateral and proceeds of Collateral and the Agents and the Lenders shall have no duty to inquire as to the source of the amounts on deposit in such Loan Party DDA, subject to the Security Documents, the ABL/Term Loan Intercreditor Agreement or any other applicable intercreditor agreement.

Management Advances ”: (1) loans or advances made to directors, officers, employees or consultants of any Parent Entity, any Borrower or any Restricted Subsidiary or to Related Physicians (x) in respect of travel, entertainment or moving related expenses incurred in the ordinary course of business, (y) in respect of moving related expenses incurred in connection with any closing or consolidation of any facility, or (z) in the ordinary course of business and (in the case of this clause (z)) not exceeding $25,000,000 in the aggregate outstanding at any time, (2) promissory notes of Management Investors acquired in connection with the issuance of Management Stock to such Management Investors, (3) Management Guarantees, or (4) other Guarantees of borrowings by Management Investors in connection with the purchase of Management Stock, which Guarantees are permitted under Subsection 8.13 .

Management Guarantees ”: guarantees (x) of up to an aggregate principal amount outstanding at any time of $50,000,000 of borrowings by Management Investors in connection with their purchase of Management Stock or (y) made on behalf of, or in respect of loans or advances made to, directors, officers or employees of any Parent Entity, the Parent Borrower or any Restricted Subsidiary or to any Related Physicians (1) in respect of travel, entertainment and moving related expenses incurred in the ordinary course of business, or (2) in the ordinary course of business and (in the case of this clause (2)) not exceeding $25,000,000 in the aggregate outstanding at any time.

Management Investors ”: the officers, directors, employees and other members of the management of any Parent Entity, the Parent Borrower or any of their respective Subsidiaries, or any Related Physicians, or family members or relatives of any of the foregoing, or trusts, partnerships or limited liability companies for the benefit of any of the foregoing, or any of their heirs, executors, successors and legal representatives, who at any date beneficially own or have the right to acquire, directly or indirectly, Capital Stock of the Parent Borrower or any Parent Entity.

Management Stock ”: Capital Stock of the Parent Borrower or any Parent Entity (including any options, warrants or other rights in respect thereof) held by any of the Management Investors.

Management Subscription Agreements ”: one or more stock subscription, stock option, grant or other agreements which have been or may be entered into between the Parent Borrower or any Parent Entity and one or more Management Investors (or any of their heirs, successors, assigns, legal representatives or estates), with respect to the issuance to and/or acquisition, ownership and/or disposition by any of such parties of common stock of the Parent Borrower or any Parent Entity, or options, warrants, units or other rights in respect of common stock of the Parent Borrower or any Parent Entity, any agreements entered into from time to time by transferees of any such stock, options, warrants or other rights in connection with the sale, transfer or reissuance thereof, and any assumptions of any of the foregoing by third parties, as amended, supplemented, waived or otherwise modified from time to time.

Mandatory Revolving Credit Loan Borrowing ”: as defined in Subsection 2.4(c) .

 

42


Material Adverse Effect ”: a material adverse effect on (a) the business, operations, property or condition (financial or otherwise) of the Parent Borrower and its Restricted Subsidiaries taken as a whole or (b) the validity or enforceability as to any Loan Party thereto of this Agreement or any of the other Loan Documents or the rights or remedies of the Agents and the Lenders under the Loan Documents or with respect to the Collateral comprising the Borrowing Base taken as a whole.

Material Subsidiaries ”: Restricted Subsidiaries of the Parent Borrower constituting, individually or in the aggregate (as if such Restricted Subsidiaries constituted a single Subsidiary), a “significant subsidiary” in accordance with Rule 1-02 under Regulation S-X.

Materials of Environmental Concern ”: any hazardous or toxic substances or materials or wastes defined, listed, or regulated as such in or under, or which may give rise to liability under, any applicable Environmental Law, including gasoline, petroleum (including crude oil or any fraction thereof), petroleum products or by-products, asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

Maximum Incremental Facilities Amount ”: at any date of determination, the sum of (i) $1.3 billion (amounts Incurred pursuant to this clause (i), the “ Cash Capped Incremental Facility ”) plus (ii) an additional amount if, after giving effect to the Incurrence of such additional amount (or, after giving pro forma effect to the Incurrence of the entire committed amount of such additional amount), the Consolidated First-Lien Net Leverage Ratio (as defined in the Term Loan Credit Agreement) shall not exceed 4.00 to 1.00 (as set forth in an officer’s certificate of a Responsible Officer of the Parent Borrower delivered to the Administrative Agent at the time of such Incurrence, together with calculations demonstrating compliance with such ratio) (amounts Incurred pursuant to this clause (ii), the “ Ratio Incremental Facility ”) (it being understood that (A) if pro forma effect is given to the entire committed amount of any such additional amount on the date of initial borrowing of such Indebtedness, such committed amount may thereafter be borrowed and reborrowed in whole or in part, from time to time, without further compliance with this clause (ii), (B) for purposes of so calculating the Consolidated First-Lien Net Leverage Ratio under this clause (ii), any additional amount, Incurred pursuant to this clause (ii) shall be treated as if such amount is Consolidated First-Lien Net Indebtedness, regardless of whether such amount is actually secured or is secured by Liens ranking junior to the Liens securing the First Lien Obligations and (C) for purposes of so calculating the Consolidated First-Lien Net Leverage Ratio under this clause (ii) in determining the amount of Ratio Incremental Facilities that may be Incurred on any date of determination, Consolidated First-Lien Net Indebtedness shall not include Indebtedness Incurred pursuant to the Cash Capped Incremental Facility (and shall not give effect to any Discharge of Indebtedness from the proceeds thereof) on such date of determination); provided , further , that any amounts incurred under the Cash Capped Incremental Facility, concurrently incurred with, or in a single transaction or series of related transactions with, amounts incurred under the Ratio Incremental Facility will not count as indebtedness for the purposes of calculating the Consolidated First-Lien Net Leverage Ratio to determine availability at such time under the Ratio Incremental Facility.

Medicaid ”: collectively, the healthcare assistance program established by Title XIX of the Social Security Act (42 U.S.C. §§ 1396 et seq .) and any statutes succeeding thereto, and all law, rules, regulations, manuals, orders, guidelines or requirements (whether or not having the force of law) pertaining to such program, in each case as the same may be amended, supplemented or otherwise modified from time to time.

Medicaid Account ”: an Account payable pursuant to an agreement entered into between a state agency or other entity administering Medicaid in such state and a Loan Party or a Related Corporation under which such Loan Party or Related Corporation agrees to provide services for Medicaid patients.

 

43


Medicare ”: collectively, the health insurance program for the aged and disabled established by Title XVIII of the Social Security Act (42 U.S.C. §§ 1395 et seq .) and any statutes succeeding thereto, and all laws, rules, regulations, manuals, orders or guidelines (whether or not having the force of law) pertaining to such program, in each case as the same may be amended, supplemented or otherwise modified from time to time.

Medicare Account ”: an Account payable pursuant to an agreement entered into between any entity administering Medicare in any state and a Loan Party or a Related Corporation under which such Loan Party or Related Corporation agrees to provide services for Medicare patients.

Minimum Extension Condition ”: as defined in Subsection 2.8(b) .

Minority Business ”: means any business unit of the Company that represents less than 50% of the EBITDA of the Company and its Restricted Subsidiaries as of the last day of the Most Recent Four Quarter Period.

Minority Business Assets ”: the assets of the Company and its Subsidiaries, including Capital Stock of Subsidiaries that relate to or form part of a Minority Business.

Minority Business Disposition ”: (i) any sale or other disposition of Capital Stock of any Minority Business Subsidiary (whether by issuance or sale of Capital Stock, merger, or otherwise) to one or more Persons (other than the Company or a Restricted Subsidiary) in any transaction or series of related transactions following the consummation of which such Minority Business Subsidiary is no longer a Restricted Subsidiary of the Company (excluding any Minority Business Offering) or (ii) any sale or other disposition of any assets of any Minority Business Subsidiary, including all or substantially all of the assets of any Minority Business Subsidiary, to one or more Persons (other than the Company or a Restricted Subsidiary) in any transaction or series of related transactions; provided that at the time of any such Minority Business Disposition (x) the Payment Condition is satisfied and (y) no Specified Default exists or would arise therefrom.

Minority Business Offering ”: a public offering of Capital Stock of any Minority Business Subsidiary for cash pursuant to a registration statement filed with the SEC; provided that at the time of any such Minority Business Offering (x) the Payment Condition is satisfied and (y) no Specified Default exists or would arise therefrom.

Minority Business Subsidiary ”: any of the Company’s Subsidiaries and successors in interest thereto to the extent any of such Subsidiaries form part of the relevant Minority Business.

Moody’s ”: as defined in the definition of “Cash Equivalents” in this Subsection 1.1 .

Most Recent Four Quarter Period ”: the four (4) Fiscal Quarter period of the Parent Borrower ending on the last day of the most recently completed Fiscal Year or Fiscal Quarter for which financial statements of the Parent Borrower have been (or have been required to be) delivered under Subsection 7.1(a) or 7.1(b) .

MTM ”: as defined in the definition of “Designated Hedging Reserves.”

Multiemployer Plan ”: a Plan which is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

44


Municipal Contract Lien ”: any Lien incurred in connection with any of the Parent Borrower’s or its Subsidiaries’ contracts with Governmental Authorities, including municipalities, providing for emergency 911 ambulance services.

Negotiable Collateral ”: letters of credit, letter of credit rights, instruments, promissory notes, drafts, documents, and chattel paper (including electronic chattel paper and tangible chattel paper), and any and all supporting obligations in respect thereof.

Net Proceeds ”: with respect to any new public or private issuance or sale of any securities, any capital contribution (whether of property or assets, including cash) or any incurrence of Indebtedness, an amount equal to the gross proceeds in cash and Cash Equivalents (or with respect to capital contributions of non-cash property or assets, the Fair Market Value) of such issuance, sale or contribution net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions, and brokerage, consultant and other fees actually incurred in connection with such issuance, sale or contribution and net of taxes paid or reasonably estimated to be payable as a result thereof.

New York Courts ”: as defined in Subsection 11.13(a) .

New York Supreme Court ”: as defined in Subsection 11.13(a) .

Non-Defaulting Lender ”: any Lender other than a Defaulting Lender.

Non-Excluded Taxes ”: all Taxes other than Excluded Taxes.

Non-Extending Lender ”: any Lender that does not accept an Extension Offer.

Non-Loan Party ”: each Subsidiary of the Parent Borrower that is not a Loan Party.

Notes ”: the collective reference to the Revolving Credit Notes and the Swingline Note.

NYFRB ”: the Federal Reserve Bank of New York.

NYFRB Rate ”: for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received to the Administrative Agent from a Federal funds broker of recognized standing selected by it; provided, further , that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

Obligations ”: obligations of the Parent Borrower and the other Loan Parties from time to time arising under or in respect of the due and punctual payment of (i) the principal of and premium, if any, and interest (including interest accruing during (or would accrue but for) the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by Borrowers and the other Loan Parties under this Agreement in respect of any Letter of Credit, when and as due, including payments in respect of Reimbursement Obligations and interest thereon and (iii) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Parent Borrower and the other Loan Parties under this Agreement and the other Loan Documents.

 

45


Obligo r”: any purchaser of goods or services or other Person obligated to make payment to the Parent Borrower or any of its Restricted Subsidiaries (other than any Restricted Subsidiary that is not a Loan Party) in respect of a purchase of such goods or services.

Operating Entity ”: a Person (i) that is an ambulatory surgery center, (ii) as to which the Parent Borrower or any Restricted Subsidiary or any Hospital Joint Venture owns more than 50% of the outstanding Capital Stock and as to which a Person other than the Parent Borrower or a Restricted Subsidiary or a Hospital Joint Venture has a noncontrolling or minority ownership interest and (iii) that is not subject to any contractual obligation that limits the ability of such Person to pay dividends or make any other distribution on any of such Person’s Capital Stock owned by the Parent Borrower or any Restricted Subsidiary or any Hospital Joint Venture, other than restrictions comparable to those described in Subsection 8.8 (except transactions described in clauses (a), (e)(iv), (h) or (i) of such subsection).

Optional Payments ”: as defined in Subsection 8.6(e) .

Organizational Documents ”: with respect to any Person, (a) the articles of incorporation, certificate of incorporation or certificate of formation (or the equivalent organizational documents) of such Person, (b) the bylaws or operating agreement (or the equivalent governing documents) of such Person and (c) any document (other than policy or procedural manuals or other similar documents) setting forth the manner of election or duties of the directors or managing members of such Person (if any) and the designation, amount or relative rights, limitations and preferences of any class or series of such Person’s Capital Stock.

Original Credit Agreement ”: as defined in the Recitals hereto.

Other ABL Term Commitments ”: one or more Tranches of term loan commitments hereunder that result from a Refinancing Amendment.

Other ABL Term Loans ”: one or more Tranches of term loans hereunder that result from a Refinancing Amendment.

Other Eligible Accounts ”: (i) those AMR Other Accounts created by a Loan Party in the ordinary course of business, (ii) those EmCare Hospital Accounts created by a Related Corporation or a Loan Party in the ordinary course of their business, and (iii) those EmCare Other Accounts created by a Loan Party (including, without limitation, any Loan Party that was a Subsidiary of AmSurg prior to the Third Amendment Effective Date) in the ordinary course of business, which Accounts in each case comply in all material respects with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one or more of the excluding criteria set forth below. Other Eligible Accounts shall not include the following:

(a) Excluded Accounts Receivable;

(b) if applicable, an amount equal to the amount of any reductions made to the gross amount invoiced or to be invoiced to Account Debtors reflecting contractual allowances provided to Account Debtors in respect of Accounts that would otherwise be Other Eligible Accounts;

(c) (i) Accounts (excluding any Accounts subject to clause (c)(ii) below) that have not been billed by the date that is 30 days after the earlier of (x) the Service Date or (y) the dates

 

46


as of which such Account is first included in the Borrowing Base Certificate or otherwise reported to the Administrative Agent as Collateral or (ii) if the Accounts are subject to a contractually agreed billing date, Accounts that are not billed on the contractually agreed billing date ( provided that in any event Accounts that are billed on a date later than 90 days after the date on which the Service Period, to which such Accounts relate, commenced shall be excluded under this clause (c)(ii));

(d) billed Accounts (i) that are unpaid more than ninety (90) days after the original billing date or, in respect of Accounts relating to the provision of air ambulance services only, the Service Date, for such Accounts or (ii) that are unpaid more than sixty (60) days after the original due date for such Accounts;

(e) the amount of any credit balances which are outstanding (i) more than ninety (90) days after the original billing date or, in respect of Accounts relating to the provision of air ambulance services only, the Service Date, of the Accounts to which such credit balances relate or (ii) more than 60 days after the original due date of the Accounts to which such credit balances relate;

(f) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of the total amount of all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (d) above;

(g) (i) Accounts that have been written off, or (ii) Accounts that the Security Agents, in their Permitted Discretion, believe to be doubtful by reason of the Account Debtor’s financial condition, upon notice thereof to the Borrower Representative;

(h) (i) an amount equal to the amount of any unreconciled differences relating to Other Eligible Accounts that has not been applied to or posted to any AMR Other Account or EmCare Hospital Account plus (ii) an amount equal to the product of (x) unapplied cash relating to EmCare Other Accounts multiplied by (y) the Cash Eligible Account Rate applicable to Other Eligible Accounts that are EmCare Other Accounts;

(i) Accounts with respect to which the Account Debtor is (i) an Affiliate of any Loan Party or an Affiliate of a Related Corporation or (ii) an employee or agent of any Loan Party or a Related Corporation or any Affiliate of such Loan Party or such Related Corporation, in each case, other than Accounts arising from the provision of medical care, including ambulance services, delivered in the ordinary course of business;

(j) Accounts that are not payable in Dollars;

(k) Accounts with respect to which the Account Debtor is insolvent, is subject to a proceeding related thereto, has gone out of business, or as to which a Loan Party or a Related Corporation has received notice of an imminent proceeding related to such Account Debtor being or alleged to be insolvent or which proceeding is reasonably likely to result in a material impairment of the financial condition of such Account Debtor;

(l) Accounts with respect to which the applicable Loan Party’s or Related Corporation’s right to receive payment is deferred or otherwise is not absolute or is contingent upon the fulfillment of any condition whatsoever (other than the preparation and delivery of an invoice), provided that any such Accounts shall be included as Other Eligible Accounts once the related services have been rendered or all conditions have been met and such Accounts are otherwise not excluded under clauses (a) to (v) of this definition;

 

47


(m) Accounts with respect to which the Account Debtor is a Person other than a Governmental Authority unless: (i) the Account Debtor (A) is a natural person with a billing address in the United States, (B) maintains its Chief Executive Office in the United States, or (C) is organized under the laws of the United States or any state, territory or subdivision thereof; (ii) the Account Debtor is a Third Party Payor (excluding for this purpose Government Accounts), or (iii) (A) the Account is supported by an irrevocable letter of credit satisfactory to the Security Agents, in their Permitted Discretion (as to form, substance, and issuer or domestic confirming bank), that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (B) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to the Security Agents, in their Permitted Discretion;

(n) Accounts with respect to which the Account Debtor is the government of any country or sovereign state other than the United States, or of any state, municipality or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (i) the Account is supported by an irrevocable letter of credit satisfactory to the Security Agents, in their Permitted Discretion (as to form, substance, and issuer or domestic confirming bank) that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (ii) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to the Security Agents, in their Permitted Discretion;

(o) Accounts with respect to which the Account Debtor is the federal government of the United States or any department, agency or instrumentality of the United States (exclusive, however, of (i) Accounts with respect to which the applicable Loan Party or Related Corporation has complied, to the reasonable satisfaction of the Security Agents, with the Assignment of Claims Act of 1940 (31 USC Section 3727) and (ii) Government Accounts, to the extent that these would otherwise be Other Eligible Accounts);

(p) (i) Accounts with respect to which the Account Debtor is a creditor of any Loan Party or any Related Corporation, and such Account Debtor has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such claim, right of setoff, or dispute, (ii) Accounts which are subject to a rebate that has been earned but not taken or a chargeback, to the extent of such rebate or chargeback, (iii) Accounts that comprise service charges or finance charges, or (iv) Accounts with respect to which the applicable Loan Party or Related Corporation is not able to bring suit or otherwise enforce its remedies against the Account Debtor through judicial process;

(q) Accounts that are not owned by (i) a Loan Party or (ii) a Related Corporation (excluding for this purpose AMR Other Accounts);

(r) Accounts which have been redated or extended ( provided that this shall not apply to any Accounts that have been re-categorized from one payor type to another payor type in the ordinary course of business);

(s) (i) with respect to Other Eligible Accounts that are created by a Loan Party, Accounts that are not subject to a valid and perfected first priority Lien in favor of the Collateral Agent, as applicable, pursuant to a Security Document (as and to the extent provided therein ( provided that in no event shall any Excluded Assets be deemed to be Other Eligible Accounts hereunder)) and (ii) with respect to Other Eligible Accounts that are created by a Related Corporation, Accounts that are subject to any Lien in favor of another Person ( provided that (x) in no event shall any Excluded Assets be deemed to be Other Eligible Accounts hereunder and (y) this exclusion shall not apply in respect of Liens permitted, mutatis mutandis, pursuant to

 

48


Subsection 8.14(a) , 8.14(c) , 8.14(e) (to the extent that the Liens on such Accounts are at least as subordinated to the Liens thereon securing the Obligations as the Liens securing the Term Loan Facility Obligations under the ABL/Term Loan Intercreditor Agreement), 8.14(h) , 8.14(q) or 8.14(s) );

(t) Accounts that exceed the amount such Loan Party or Related Corporation is entitled to receive under any capitation arrangement, fee schedule, discount formula, cost-based reimbursement or other adjustment or limitation to such Loan Party’s or such Related Corporation’s usual charges (to the extent of such excess);

(u) Accounts with respect to which the services giving rise to such Account have not yet been performed;

(v) Accounts that were acquired or originated by a Person acquired in a Permitted Acquisition consisting either of (x) receivables of a type substantially different from those in the Borrowing Base at such time, or (y) receivables of a type substantially similar to those in the Borrowing Base at such time, provided that in the case of clause (y) only, such Accounts with an aggregate net book value in an amount not exceeding 10% of the aggregate Borrowing Base at the time of such Permitted Acquisition shall not be excluded, provided , further , that this clause (u) shall cease to exclude any Accounts of the type listed under clause (x) or (y) above at the time the Parent Borrower delivers to the Security Agents a field exam in form and substance reasonably satisfactory to the Security Agents prepared by a third party field examiner reasonably satisfactory to the Security Agents with respect to such acquired Accounts, or such field exam requirement is waived by the Security Agents;

(w) any unearned amounts; or

(x) Accounts of Related Corporations with respect to which the proceeds thereof are not subject to sweep or transfer arrangements providing for such proceeds to be swept or transferred into a Concentration Account in accordance with Subsection 4.16 (for the avoidance of doubt, without regard to the “commercially reasonable efforts” standards set forth therein).

Notwithstanding the foregoing, the Security Agents may, from time to time, in the exercise of their Permitted Discretion, on not less than ten (10) Business Days’ prior notice to the Parent Borrower, change the criteria for Other Eligible Accounts as reflected on the Borrowing Base Certificate based on either: (i) an event, condition or other circumstance arising after the Third Amendment Effective Date, or (ii) an event, condition or other circumstance existing on the Third Amendment Effective Date to the extent the Security Agents had no knowledge thereof on or prior to the Third Amendment Effective Date, in either case under clause (i) or (ii), which adversely affects, or would reasonably be expected to adversely affect, Other Eligible Accounts in any material respect as determined by the Security Agents in the exercise of their Permitted Discretion. Any such change in criteria shall have a reasonable relationship to the event, condition or other circumstance that is the basis for such change. Upon delivery of the notice of such change pursuant to the foregoing sentence, the Security Agents shall be available to discuss the proposed change, and the applicable Borrower may take such action as may be required so that the event, condition or circumstance that is the basis for such change no longer exists, in a manner and to the extent reasonably satisfactory to the Security Agents in the exercise of their Permitted Discretion. Any Accounts of the Loan Parties that are not Other Eligible Accounts shall nevertheless be part of the Collateral as and to the extent provided in the Security Documents.

Other Intercreditor Agreement ”: an intercreditor agreement in form and substance reasonably satisfactory to the Parent Borrower and the Security Agents.

 

49


Other Representatives ”: each of JPMorgan Chase Bank, N.A., Barclays Bank PLC, Bank of America, N.A., Wells Fargo Bank, National Association and SunTrust Robinson Humphrey, Inc., in their collective capacity as Lead Arrangers, Deutsche Bank Securities Inc., BMO Capital Markets Corp. and RBC Capital Markets, in their collective capacity as co-managers, JPMorgan Chase Bank, N.A. and Barclays Bank PLC, in their collective capacity as co-syndication agents and Bank of America, N.A., Wells Fargo Bank, National Association and SunTrust Bank, in their collective capacity as co-documentation agents.

Other Revolving Credit Commitments ”: one or more Tranches of revolving credit commitments hereunder or extended Commitments in respect of the Revolving Credit Facility that result from a Refinancing Amendment.

Other Revolving Credit Loans ”: the Revolving Credit Loans made pursuant to any Other Revolving Credit Commitment.

Overnight Bank Funding Rate ”: for any day, the rate comprised of both overnight federal funds and overnight Eurodollar borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

Parent Borrower ”: as defined in the Preamble hereto.

Parent Entity ”: any Other Parent, and any other Person that is a Subsidiary of any Other Parent and of which the Parent Borrower is a Subsidiary. As used herein, “ Other Parent ” means a Person of which the Parent Borrower becomes a Subsidiary after the Third Amendment Effective Date, provided that either (x) immediately after the Parent Borrower first becomes a Subsidiary of such Person, more than 50.0% of the Voting Stock of such Person shall be held by one or more Persons that held more than 50.0% of the Voting Stock of the Parent Borrower or a Parent Entity of the Parent Borrower immediately prior to the Parent Borrower first becoming such Subsidiary or (y) such Person shall be deemed not to be an Other Parent for the purpose of determining whether a Change of Control shall have occurred by reason of the Parent Borrower first becoming a Subsidiary of such Person.

Parent Entity Expenses ”: (i) costs (including all professional fees and expenses) incurred by any Parent Entity in connection with maintaining its existence or in connection with its reporting obligations under, or in connection with compliance with, applicable laws or applicable rules of any governmental, regulatory or self-regulatory body or stock exchange, this Agreement or any other agreement or instrument relating to Indebtedness of the Parent Borrower or any Restricted Subsidiary, including in respect of any reports filed with respect to the Securities Act, the Exchange Act or the respective rules and regulations promulgated thereunder, (ii) expenses incurred by any Parent Entity in connection with the acquisition, development, maintenance, ownership, prosecution, protection and defense of its intellectual property and associated rights (including but not limited to trademarks, service marks, trade names, trade dress, patents, copyrights and similar rights, including registrations and registration or renewal applications in respect thereof; inventions, processes, designs, formulae, trade secrets, know-how, confidential information, computer software, data and documentation, and any other intellectual property rights; and licenses of any of the foregoing) to the extent such intellectual property and associated rights relate to the business or businesses of the Parent Borrower or any Subsidiary thereof, (iii) indemnification obligations of any Parent Entity owing to directors, officers, employees or other Persons under its charter or by-laws or pursuant to written agreements with or for the benefit of any such Person, or obligations in respect of director and officer insurance (including premiums therefor), (iv) other administrative and operational expenses of any Parent Entity incurred in the ordinary course of business, and (v) fees and expenses

 

50


incurred by any Parent Entity in connection with any offering of Capital Stock or Indebtedness, (w) which offering is not completed, or (x) where the net proceeds of such offering are intended to be received by or contributed or loaned to the Parent Borrower or a Restricted Subsidiary, or (y) in a prorated amount of such expenses in proportion to the amount of such net proceeds intended to be so received, contributed or loaned, or (z) otherwise on an interim basis prior to completion of such offering so long as any Parent Entity shall cause the amount of such expenses to be repaid to the Parent Borrower or the relevant Restricted Subsidiary out of the proceeds of such offering promptly if completed.

Participant ”: as defined in Subsection 11.6(c)(i) .

Participant Register ”: as defined in Subsection 11.6(b)(v) .

Patient Receivables ”: with respect to any Restricted Subsidiary, the patient accounts receivable of such Restricted Subsidiary existing or hereafter created, any and all rights to receive payments due on such accounts receivable from any Governmental Authority payor under or in respect of such accounts receivable (including, without limitation, Medicare, Medicaid, CHAMPVA and TRICARE), and all proceeds of or in any way derived, whether directly or indirectly, from any of the foregoing (including, without limitation, all interest, finance charges and other amounts payable by any Governmental Authority obligor, directly or indirectly, in respect thereof).

Payment Condition ”: at any time of determination with respect to any Specified Transaction, that the following conditions are all satisfied: (x) (1) 30-Day Specified Availability ( divided by Availability as of such time of determination and expressed as a percentage) and (2) the Specified Availability on the date of such Specified Transaction ( divided by Availability as of such time of determination and expressed as a percentage), in each case exceed the applicable Availability Percentage (as defined below) and (y) unless the Fixed Charge Condition (as defined below) is satisfied (to the extent applicable), the Parent Borrower shall be in Pro Forma Compliance with a minimum Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00. “ Availability Percentage ”: (a) in respect of any Restricted Payment pursuant to Subsection 8.3(i) , 17.5%; (b) in respect of (A) any investment or acquisition permitted pursuant to clause (u), (w) or (z) of the definition of “Permitted Investments,” (B) any acquisition permitted pursuant to clause (c) of the definition of “Permitted Acquisition,” or (C) any Guarantee Obligation Incurred pursuant to Subsection 8.13(f)(ii) , 12.5%; (c) in respect of any payment, repurchase or redemption pursuant to Subsection 8.6(a) , 15%; (d) in respect of a Minority Business Disposition or Minority Business Offering, 20%; and (e) in respect of (A) any merger, consolidation or amalgamation pursuant to Subsection 8.2(a) or 8.2(b) or (B) any Asset Sale that would otherwise have to comply with Subsection 8.5 , 12.5%. “Fixed Charge Condition” shall mean 30-Day Specified Availability (divided by Availability as of such time of determination and expressed as a percentage) exceeds: (a) in respect of (A) any acquisition permitted pursuant to clause (c) of the definition of “Permitted Acquisition,” (B) clause (w) or (z) of the definition of “Permitted Investments” or (C) Subsection 8.13(f)(ii) , 17.5%; (b) in respect of any investment permitted pursuant to clause (u) of the definition of “Permitted Investments,” 20%; (c) in respect of any payment, repurchase or redemption pursuant to Subsection 8.6(a) , 17.5%; (d) in respect of (A) any merger, consolidation or amalgamation pursuant to Subsection 8.2(a) or (b) or (B) any Asset Sale that would otherwise have to comply with Subsection 8.5 , 20%; and (e) in respect of any dividend payment pursuant to Subsection 8.3(i) , 25.0%.

PBGC ”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor thereto).

 

51


Permitted Acquisitions ”: any acquisition in a transaction that satisfies each of the following requirements:

(a) the business of the acquired company shall be substantially similar to, or ancillary, complementary or related to the line of business of the Parent Borrower and its Restricted Subsidiaries on the Third Amendment Effective Date, or the assets so acquired shall be used or useful in or otherwise relate to, any such business;

(b) the acquired company and its Subsidiaries will become (i) Guarantors and pledge their Collateral to the Administrative Agent to the extent required by Subsection 7.9(b) and Subsection 7.9(c) or (ii) Related Corporations on a basis consistent with past practices on or prior to the Third Amendment Effective Date or made in the ordinary course of business, including the entry into applicable Related Corporation Contracts in connection therewith; and

(c) either:

(i) the Payment Condition in respect of Permitted Acquisitions is satisfied, or

(ii) to the extent such Payment Condition is not satisfied, the Acquisition Consideration consists solely of any combination of (x) Capital Stock of any Parent Entity; and/or (y) amounts not to exceed the Available Excluded Contribution Amount Basket; and/or (z) additional cash and other property (excluding cash and other property covered in subclauses (x) and (y) of this clause (c)(ii)) and Indebtedness (whether incurred or assumed), provided that the aggregate amount of such cash consideration paid pursuant to this clause (c)(ii)(z) and all other cash consideration paid for Permitted Acquisitions consummated during any Fiscal Year in reliance on this clause (c)(ii)(z) is less than or equal to $50,000,000 (during the first Fiscal Year) and $25,000,000 (during each subsequent Fiscal Year), provided , further , that amounts unused in any Fiscal Year may be carried forward and used to make Permitted Acquisitions in succeeding Fiscal Years, and provided , further , that the Acquisition Consideration paid or payable pursuant to this clause (c)(ii)(z) during any one Fiscal Year shall not exceed $75,000,000 in the aggregate.

Permitted Cure Securities ”: common equity securities of any Parent Entity or other equity securities of any Parent Entity that do not constitute Disqualified Capital Stock.

Permitted Debt Exchange ”: as defined in Subsection 2.7(a) of the Term Loan Credit Agreement.

Permitted Debt Exchange Notes ”: as defined in Subsection 2.7(a) of the Term Loan Credit Agreement.

Permitted Discretion ”: the commercially reasonable judgment of the Security Agents exercised in good faith in accordance with customary business practices for comparable asset-based lending transactions, as to any factor which the Security Agents reasonably determine: (a) will or reasonably could be expected to adversely affect in any material respect the value of any Eligible Inventory or Eligible Accounts, the enforceability or priority of the applicable Agent’s Liens thereon or the amount which any Agent, the Lenders or any Issuing Lender would be likely to receive (after giving consideration to delays in payment and costs of enforcement) in the liquidation of such Eligible Inventory or Eligible Accounts or (b) is evidence that any collateral report or financial information delivered to the Security Agents by any Person on behalf of the applicable Borrower is incomplete, inaccurate or misleading in any material respect. In exercising such judgment, the Security Agents may consider, without duplication, such factors already included in or tested by the definition of Eligible Inventory or Eligible Accounts, as well as any of the following: (i) changes after the Third Amendment Effective Date in any material respect

 

52


in demand for, pricing of, or product mix of Inventory; (ii) changes after the Third Amendment Effective Date in any material respect in any concentration of risk with respect to Accounts; and (iii) any other factors arising after the Third Amendment Effective Date that change in any material respect the credit risk of lending to the Borrowers on the security of the Eligible Inventory or Eligible Accounts.

Permitted Hedging Arrangements ”: as defined in Subsection 8.10 .

Permitted Indebtedness ”: as defined in Subsection 8.13 .

Permitted Investments ”:

(a) Investments in accounts, payment intangibles and chattel paper (each as defined in the UCC), notes receivable, extensions of trade credit and similar items arising or acquired in the ordinary course of business consistent with the past practice of the Parent Borrower and its Restricted Subsidiaries;

(b) Investments in cash, Cash Equivalents, Investment Grade Securities and Temporary Cash Investments;

(c) Investments existing or made pursuant to legally binding written commitments in existence on the Third Amendment Effective Date and set forth on Schedule 1.1(f) ;

(d) Investments by any Loan Party in any other Loan Party or in any Captive Insurance Subsidiary; provided , however , that if any such Investment is in the form of intercompany Indebtedness, such Indebtedness shall not be secured by any Lien;

(e) Investments received in settlement amounts due to the Parent Borrower or any Restricted Subsidiary of the Parent Borrower effected in the ordinary course of business;

(f) Investments by any Non-Loan Parties in any other Non-Loan Party;

(g) Investments by Loan Parties in any Non-Loan Parties; provided , however , that (i) the aggregate outstanding amount at any time of all intercompany Investments made pursuant to this clause (g) in any Fiscal Year shall not exceed $50,000,000 during such Fiscal Year; provided , further , that amounts unused in any Fiscal Year may be carried forward and used to make Investments in succeeding Fiscal Years in an amount not to exceed $75,000,000 in the aggregate in any one Fiscal Year and (ii) in lieu of the Investments permitted by this clause (g), any Restricted Payment from Loan Parties to Non-Loan Parties may be made in amounts not exceeding the available limit as determined pursuant to this clause (g) (with a corresponding reduction in such limit as a result thereof);

(h) Investments by any Non-Loan Party in any Loan Party; provided , however , that if any such Investment is in the form of intercompany Indebtedness, such Indebtedness shall not be secured by any Lien;

(i) Investments by any Loan Party in any Non-Loan Party to the extent substantially concurrent with, and in any event within three (3) Business Days of, such Investment, a corresponding cash Investment or Restricted Payment is made from such Non-Loan Party, directly or indirectly, to a Loan Party;

 

53


(j) any Investment constituting or acquired in connection with a Permitted Acquisition, including any Investment in the form of a capital contribution or intercompany Indebtedness among the Parent Borrower and their respective Subsidiaries for the purpose of consummating a Permitted Acquisition;

(k) Investments made in connection with the Transactions;

(l) loans and advances (and guarantees of loans and advances by third parties) made to officers, directors or employees of any Parent Entity, the Parent Borrower or any of its Restricted Subsidiaries, or Related Physicians and Guarantee Obligations of the Parent Borrower or any of its Restricted Subsidiaries in respect of obligations of officers, directors or employees of any Parent Entity, the Parent Borrower or any of its Restricted Subsidiaries, or Related Physicians, in each case (i) in the ordinary course of business (other than in connection with the Management Subscription Agreement or the Stock Transfer and Option Agreements), (ii) existing on the Third Amendment Effective Date and described on Schedule 1.1(f) , (iii) made after the Third Amendment Effective Date for relocation expenses in the ordinary course of business, (iv) made for other purposes in an aggregate principal amount not to exceed $25,000,000 at any time or (v) relating to indemnification or reimbursement of any officers, directors or employees in respect of liabilities relating to their serving in any such capacity, in each case other than any loans or advances to any director or executive officer (or equivalent thereof) that would be in violation of Section 402 of the United States Sarbanes-Oxley Act of 2002; provided , however , that with respect to any employee of any Parent Entity, no such loans or advances shall be permitted unless the activities of such employee relate primarily to the Parent Borrower and its Restricted Subsidiaries;

(m) loans and advances (and guarantees of loans and advances by third parties) made to Management Investors in connection with the purchase by such Management Investors of Capital Stock of the Parent Borrower or any Parent Entity (so long as the Parent Borrower or such Parent Entity, as applicable, applies an amount equal to the Net Proceeds of such purchases to, directly or indirectly, make capital contributions to, or purchase Capital Stock of, the Parent Borrower or applies such proceeds to pay Parent Entity Expenses) of up to $35,000,000 outstanding at any one time and promissory notes of Management Investors acquired in connection with the issuance of Management Stock to such Management Investors;

(n) (i) Investments of the Parent Borrower and its Restricted Subsidiaries under Interest Rate Protection Agreements, Hedging Agreements or other Permitted Hedging Arrangements and (ii) any Investment by any Captive Insurance Subsidiary in connection with its provision of insurance to the Parent Borrower or any of its Subsidiaries which Investment is made in the ordinary course of business of such Captive Insurance Subsidiary, or by reason of applicable law, rule, regulation or order, or that is required or approved by any regulatory authority having jurisdiction over such Captive Insurance Subsidiary or its business, as applicable;

(o) Investments in the nature of pledges or deposits (x) with respect to leases or utilities provided to third parties in the ordinary course of business or (y) otherwise described in the definition of “Customary Permitted Liens” or made in connection with Liens permitted under Subsection 8.14 ;

(p) Investments representing non-cash consideration received by the Parent Borrower or any of its Restricted Subsidiaries in connection with any Disposition, provided that any such non-cash consideration received by the Parent Borrower or any other Loan Party is pledged to the Collateral Agent for the benefit of the Secured Parties pursuant to the Security Documents as and to the extent provided for therein;

 

54


(q) Investments by the Parent Borrower or any of its Restricted Subsidiaries in a Person in connection with a joint venture or similar arrangement; provided that (i) the aggregate amount of such Investments outstanding pursuant to this clause (q) do not exceed $75,000,000 at any time and (ii) the Parent Borrower or such Restricted Subsidiary complies with the provisions of Subsection 7.9(b) and (c) hereof, if applicable, with respect to such ownership interest;

(r) Investments in industrial development or revenue bonds or similar obligations secured by assets leased to and operated by the Parent Borrower or any of its Restricted Subsidiaries that were issued in connection with the financing of such assets, so long as the Parent Borrower or any such Restricted Subsidiary may obtain title to such assets at any time by optionally canceling such bonds or obligations, paying a nominal fee and terminating such financing transaction;

(s) Investments representing evidences of Indebtedness, securities or other property received from another Person by the Parent Borrower or any of its Restricted Subsidiaries in connection with any bankruptcy proceeding or other reorganization of such other Person or as a result of foreclosure, perfection or enforcement of any Lien or exchange for evidences of Indebtedness, securities or other property of such other Person held by the Parent Borrower or any of its Restricted Subsidiaries; provided that any such securities or other property received by the Parent Borrower or any other Loan Party is pledged to the Collateral Agent for the benefit of the Secured Parties pursuant to the Security Documents as and to the extent required thereby;

(t) any Investment to the extent not exceeding the Available Excluded Contribution Amount Basket;

(u) other Investments; provided that at the time such Investments are made the Payment Condition is satisfied;

(v) Investments by the Parent Borrower and its Restricted Subsidiaries in an aggregate amount outstanding at any time not to exceed $50,000,000;

(w) loans and advances to and other Investments in Related Corporations (a) made on a basis consistent with past practices on or prior to the Third Amendment Effective Date or made in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts, including obtaining letters of credit on behalf of Related Corporations or (b) in connection with the acquisition of, or Investment in, any Person that becomes a Related Corporation (promptly following such acquisition or Investment), in any such case by the Related Corporation in which such loans, advances or other Investments were made in or to on a basis consistent with past practices on or prior to the Third Amendment Effective Date or made in the ordinary course of business, including the entry into applicable Related Corporation Contracts in connection therewith, in the case of this clause (b) subject to (A) meeting the Payment Condition and (B) that no Specified Default or other Event of Default known to the Parent Borrower has occurred and is continuing or would result therefrom;

(x) any Investment to the extent made using Capital Stock of the Parent Borrower (other than Disqualified Capital Stock), or Capital Stock of any Parent Entity, as consideration; and

 

55


(y) any Investment by any Captive Insurance Subsidiary in connection with the provision of insurance to the Parent Borrower or any of its Subsidiaries, which Investment is made in the ordinary course of business of such Captive Insurance Subsidiary, or by reason of applicable law, rule, regulation or order, or that is required or approved by any regulatory authority having jurisdiction over such Captive Insurance Subsidiary or its business, as applicable; and

(z) so long as the Payment Condition is met and no Specified Default or other Event of Default known to the Parent Borrower has occurred and is continuing or would result therefrom, any purchase, redemption or other acquisition or retirement for value of shares of Capital Stock of a Restricted Subsidiary owned by a Strategic Investor if such purchase, redemption or other acquisition or retirement for value is made for consideration not in excess of the Fair Market Value of such Capital Stock.

For purposes of determining compliance with Subsection 8.12 , (i) in the event that any Investment meets the criteria of more than one of the types of Investments described in clauses (a) through (z) above, the Parent Borrower, in its sole discretion, shall classify such item of Investment and may include the amount and type of such Investment in one or more of such clauses (including in part under one such clause and in part under another such clause) and (ii) the amount of any Investment made or outstanding at any time under clause (g), (l), (m), (q), (v) and (w) shall be the original cost of such Investment, reduced (at the Parent Borrower’s option) by any dividend, distribution, interest payment, return of capital, repayment or other amount or value received in respect of such Investment.

Permitted Liens ”: as defined in Subsection 8.14 .

Person ”: an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.

Plan ”: at a particular time, any employee benefit plan which is covered by ERISA and in respect of which the Parent Borrower or a Commonly Controlled Entity is an “employer” as defined in Section 3(5) of ERISA.

Platform ”: Intralinks, SyndTrak Online or any other similar electronic distribution systems.

Preferred Stock ”: as applied to the Capital Stock of any corporation, Capital Stock of any class or classes (however designated) that by its terms is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation, over shares of Capital Stock of any other class of such corporation.

Prime Rate ”: the rate of interest per annum publicly announced from time to time by the Administrative Agent as its “prime rate” (which, in the case of Deutsche Bank AG New York Branch shall be its “prime rate” in effect at its office located at 60 Wall Street, New York, New York); each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

Pro Forma Basis ” or “ Pro Forma Compliance ”: with respect to any determination for any period, that such determination shall be made giving pro forma effect to any event that by the terms of the Loan Documents requires compliance on a “Pro Forma Basis” or “Pro Forma Compliance” (and, if relevant, to each Material Acquisition and each Material Disposition of any Person, business or asset), together with all transactions relating thereto, in each case consummated during such period or thereafter

 

56


and on or prior to the date of determination (including any incurrence, assumption, refinancing or repayment of Indebtedness), as if such acquisition, investment, sale (or other disposition), other event and related transactions had been consummated on the first day of such period, in each case based on historical results accounted for in accordance with GAAP, and taking into account adjustments consistent with the definition of EBITDA, including the amount of net cost savings projected by the Parent Borrower in good faith to be realized as the result of actions taken or to be taken on or prior to the date that is eighteen (18) months after the closing date of such transaction and prior to or during such period (calculated on a Pro Forma Basis as though such cost savings had been realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions, provided that such costs savings are reasonably identifiable and factually supportable and in an aggregate amount, when aggregated with the amount of prospective net cost savings increasing EBITDA for such period pursuant to clause (b) of the definition of “EBITDA,” not to exceed 20% of EBITDA (prior to giving effect to such cost savings) in any period of four (4) Fiscal Quarters. For purposes of the foregoing, “ Material Acquisition ” means any acquisition of property or series of related acquisitions of property that (x) constitutes assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the common stock of a Person and (y) involves the payment of consideration by the Parent Borrower or any of its Subsidiaries in excess of $12,500,000; and “ Material Disposition ” means any Disposition of property or series of related Dispositions of property that (x) constitutes assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the common stock of a Person and (y) yields gross proceeds to the Parent Borrower or any of its Subsidiaries in excess of $12,500,000.

Projections ”: those financial projections included in the Confidential Information Memoranda and related material prepared in connection with the syndication of the Loans and provided to the Lenders on or about November, 2016, covering the Fiscal Years ending in 2016 through 2020, inclusive.

Purchase Money Obligations ”: any Indebtedness incurred to finance or refinance the acquisition, leasing, construction or improvement of property (real or personal) or assets, and whether acquired through the direct acquisition of such property or assets or the acquisition of the Capital Stock of any Person owning such property or assets, or otherwise.

Ratio Incremental Facility ”: as defined in the definition of “Maximum Incremental Facilities Amount.”

Recovery Event ”: any settlement of or payment in respect of any property or casualty insurance claim or any condemnation proceeding relating to any asset of the Parent Borrower or any of its Restricted Subsidiaries.

refinance ”: refinance, refund, replace, renew, repay, modify, restate, defer, substitute, supplement, reissue, resell or extend (including pursuant to any defeasance or discharge mechanism); and the terms “ refinances ,” “ refinanced ” and “ refinancing ” as used for any purpose in this Agreement shall have a correlative meaning.

Refinanced Debt ”: as defined in the definition of “Credit Agreement Refinancing Indebtedness.”

Refinancing Agreement ”: as defined in Subsection 8.8(d) .

Refinancing Amendment ”: an amendment to this Agreement in form and substance reasonably satisfactory to the Administrative Agent and the institutions providing such Credit Agreement Refinancing Indebtedness executed by each of (a) the Parent Borrower, (b) the Administrative Agent and (c) each financial institution that agrees to provide any portion of the Credit Agreement Refinancing Indebtedness being incurred pursuant thereto, in accordance with Subsection   2.7 .

 

57


Register ”: as defined in Subsection 11.6(b)(iv) .

Regulation S-X ”: Regulation S-X promulgated by the United States Securities and Exchange Commission, as in effect on the Third Amendment Effective Date.

Regulation D ”: Regulation D of the Board as in effect from time to time.

Regulation T ”: Regulation T of the Board as in effect from time to time.

Regulation U ”: Regulation U of the Board as in effect from time to time.

Regulation X ”: Regulation X of the Board as in effect from time to time.

Reimbursement Obligations ”: the obligation of the applicable Borrower to reimburse the applicable Issuing Lender pursuant to Subsection 3.5(a) for amounts drawn under the applicable Letters of Credit.

Related Billing Entity ”: any Person whose only substantial activity is invoicing and collecting payments for professional medical services on behalf of a Related Professional Corporation or a Subsidiary of the Parent Borrower.

Related Corporation ”: (i) a Related Professional Corporation, (ii) a Related Billing Entity, (iii) a Hospital Joint Venture or (iv) an Operating Entity; provided that, (x) no assets of any Hospital Joint Venture or Operating Entity shall be included in the calculation of the Borrowing Base until the Security Agents have received the results of a field examination from a field examiner reasonably satisfactory to the Security Agents and the Security Agents shall have agreed in their Permitted Discretion to include assets of such Hospital Joint Venture and/or Operating Entity, as applicable, in the Borrowing Base and (y) no Hospital Joint Venture or Operating Entity shall be required to comply with Subsection 4.16 hereof unless the Security Agents shall have agreed in their Permitted Discretion to include assets of such Hospital Joint Venture and/or Operating Entity, as applicable, in the Borrowing Base.

Related Corporation Concentration Account ”: any concentration account (other than any Excluded Bank Account) maintained by any Related Corporation into which the proceeds of EmCare General Accounts, EmCare Hospital Accounts or EmCare Other Accounts are transferred after initial collection in a Related Corporation DDA, which Related Corporation Concentration Accounts as shall be set forth from time to time in all material respects on Part 2 of Schedule 4.16 .

Related Corporation Contracts ”: ( i ) management, practice support, administrative support, consulting and similar agreements, entered into on a basis consistent with past practices on or prior to the Third Amendment Effective Date or entered into in the ordinary course of business, with Related Corporations and ( ii ) joint venture agreements (including operating agreements and partnership agreements) entered into on a basis consistent with past practices on or prior to the Restatement Effective Date or entered into in the ordinary course of business with respect to Related Corporations.

Related Corporation DDAs ”: any checking or other demand deposit bank account (other than any Excluded Bank Account) maintained by any Related Corporation into which the proceeds of EmCare General Accounts, EmCare Hospital Accounts or EmCare Other Accounts are deposited or are expected to be deposited, which Related Corporation DDAs as shall be set forth from time to time in all material respects on Part 1 of Schedule   4.16 .

 

58


Related Parties ”: with respect to any Person, such Person’s affiliates and the partners, officers, directors, trustees, employees, shareholders, members, attorneys and other advisors, agents and controlling persons of such person and of such person’s affiliates and “Related Party” shall mean any of them.

Related Physicians ”: physicians or independent contractors that own, are employed by, or are under contract with, a Related Professional Corporation or a Subsidiary of the Parent Borrower.

Related Professional Corporation ”: any Person that is owned by one or more physicians and/or independent contractor physicians, in each case to whom a Subsidiary of the Parent Borrower or another Related Professional Corporation provides management services pursuant to a management services, practice support or similar agreement.

Related Taxes ”: (x) any taxes, charges or assessments, including but not limited to sales, use, transfer, rental, ad valorem , value-added, stamp, property, consumption, franchise, license, capital, net worth, gross receipts, excise, occupancy, intangibles or similar taxes, charges or assessments (other than federal, state or local taxes measured by income and federal, state or local withholding imposed by any government or other taxing authority on payments made by any Parent Entity other than to another Parent Entity), required to be paid by any Parent Entity by virtue of its being incorporated or having Capital Stock outstanding (but not by virtue of owning stock or other equity interests of any corporation or other entity other than the Parent Borrower, any of its Subsidiaries or any Parent Entity), or being a holding company parent of the Parent Borrower, any of its Subsidiaries or any Parent Entity or receiving dividends from or other distributions in respect of the Capital Stock of the Parent Borrower, any of its Subsidiaries or any Parent Entity or having guaranteed any obligations of the Parent Borrower or any Subsidiary thereof, or having made any payment in respect of any of the items for which the Parent Borrower or any of its Subsidiaries is permitted to make payments to any Parent Entity pursuant to Subsection 8.3 , or acquiring, developing, maintaining, owning, prosecuting, protecting or defending its intellectual property and associated rights (including but not limited to receiving or paying royalties for the use thereof) relating to the business or businesses of the Parent Borrower or any Subsidiary thereof, or (y) any taxes attributable to any taxable period (or portion thereof) ending on or prior to the Third Amendment Effective Date, or to the consummation of any of the Transactions, or to any Parent Entity’s receipt of (or entitlement to) any payment in connection with the Transactions, including any payment received after the Third Amendment Effective Date pursuant to any agreement relating to the Transactions, or (z) any other federal, state, foreign, provincial or local taxes measured by income for which any Parent Entity is liable up to an amount not to exceed, with respect to federal taxes, the amount of any such taxes that the Parent Borrower and its Subsidiaries would have been required to pay on a separate company basis, or on a consolidated basis as if the Parent Borrower had filed a consolidated return on behalf of an affiliated group (as defined in Section 1504 of the Code) of which it were the common parent, or with respect to state and local taxes, the amount of any such taxes that the Parent Borrower and its Subsidiaries would have been required to pay on a separate company basis, or on a consolidated, combined, unitary or affiliated basis as if the Parent Borrower had filed a consolidated, combined, unitary or affiliated return on behalf of an affiliated group (as defined in the applicable state or local tax laws for filing such return) consisting only of the Parent Borrower and its Subsidiaries. Taxes include all interest, penalties and additions relating thereto.

Reorganization ”: with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241 of ERISA.

 

59


Reportable Event ”: any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty (30) day notice period is waived under Section 21 , 22 , 23 , 24 , 25 , 27 or 28 of PBGC Regulation Section 4043 or any successor regulation thereto.

Required Lenders ”: Lenders the sum of whose outstanding Commitments (or after the termination thereof, outstanding Individual Lender Exposures) represent a majority of aggregate Commitments (or after the termination thereof, the sum of the Individual Lender Exposures) at such time; provided that the Commitments (or Individual Lender Exposures) held or deemed held by Defaulting Lenders shall be excluded for purposes of making a determination of Required Lenders.

Requirement of Law ”: as to any Person, the Organizational Documents of such Person, and any law, statute, ordinance, code, decree, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its material property or to which such Person or any of its material property is subject, including laws, ordinances and regulations pertaining to zoning, occupancy and subdivision of real properties; provided that the foregoing shall not apply to any non-binding recommendation of any Governmental Authority.

Responsible Officer ”: as to any Person, any of the following officers of such Person: (a) the chief executive officer or the president of such Person and, with respect to financial matters, the chief financial officer, the treasurer or the controller of such Person, (b) any vice president of such Person or, with respect to financial matters, any assistant treasurer or assistant controller of such Person, in each case who has been designated in writing to the Administrative Agent or the Collateral Agent as a Responsible Officer by such chief executive officer or president of such Person or, with respect to financial matters, by such chief financial officer of such Person, (c) with respect to Subsection 7.7 and without limiting the foregoing, the general counsel of such Person and (d) with respect to ERISA matters, the senior vice president -human resources (or substantial equivalent) of such Person.

Restricted Bank Account ”: any Loan Party DDA, Related Corporation DDA, Related Corporation Concentration Account or Loan Party Concentration Account as shall be set forth from time to time in all material respects on Part 5 of Schedule 4.16 .

Restricted Government Accounts ”: collectively, any and all Accounts which are (a) Medicare Accounts, (b) Medicaid Accounts, (c) TRICARE Accounts and (d) CHAMPVA Accounts, in each case, pursuant to Medicare, Medicaid, TRICARE, CHAMPVA or any other similar or replacement laws, rules or regulations of a Governmental Authority as amended or re-enacted from time to time and (e) Accounts arising from services provided under agreements with the U.S. Department of Health and Human Services but only to the extent such Accounts are subject to Medicare, Medicaid, TRICARE, CHAMPVA or any other similar or replacement laws, rules or regulations of a Governmental Authority as amended or re-enacted from time to time.

Restricted Indebtedness ”: as defined in Subsection 8.6(a) .

Restricted Payment ”: any dividend or any other payment whether direct or indirect (other than dividends payable solely in common stock of the Parent Borrower or options, warrants or other rights to purchase common stock of the Parent Borrower) on, or any payment on account of, or any setting apart of assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any shares of any class of Capital Stock of the Parent Borrower (other than any acquisition of Capital Stock deemed to occur upon the exercise of options if such Capital Stock represents a portion of the exercise price thereof) or any warrants or options to purchase any such Capital Stock, whether now or hereafter outstanding, or any other distribution (other than (x) distributions payable solely in common stock of the Parent Borrower or (y) options, warrants or other rights to purchase common stock of the Parent Borrower) in respect thereof, either directly or indirectly, whether in cash or property or in obligations of the Parent Borrower.

 

60


Restricted Subsidiary ”: any Subsidiary of the Parent Borrower other than an Unrestricted Subsidiary.

Retained Rights ”: with respect to any Patient Receivable owing from any Governmental Authority, the rights of any payee granted by applicable law and regulation over such Patient Receivable, which in the absence of a court order in the manner expressly contemplated by applicable state and federal law are subject to restrictions on assignment, pledging or are otherwise encumbered by applicable law or regulation, including, without limitation, and as applicable, restrictions on the collection thereof and discretion over the transfer thereof, to any party and restrictions on any such party’s ability to enforce the claim giving rise to such Patient Receivable against such Governmental Authority.

Revolving Credit Facility ”: the revolving credit facility available to the Borrowers hereunder.

Revolving Credit Lender ”: any Lender having a Commitment hereunder and/or a Revolving Credit Loan outstanding hereunder.

Revolving Credit Loan ”: a Loan made pursuant to Subsection 2.1(a) .

Revolving Credit Note ”: as defined in Subsection 2.1(d) .

Revolving Exposure ”: at any time the aggregate principal amount at such time of all outstanding Revolving Credit Loans. The Revolving Exposure of any Revolving Credit Lender at any time shall equal its Commitment Percentage of the aggregate Revolving Exposure at such time.

Rollover Indebtedness ”: Indebtedness of the Parent Borrower issued to any lender under the Term Loan Facility in lieu of such lender’s pro rata portion of any prepayment of Term Loans made pursuant to the Term Loan Credit Agreement.

S&P ”: as defined in the definition of the term “Cash Equivalents” in this Subsection 1.1 .

Sale and Leaseback Transaction ”: any arrangement with any Person providing for the leasing by the Parent Borrower or any of its Restricted Subsidiaries of real or personal property which has been or is to be sold or transferred by the Parent Borrower or any such Restricted Subsidiary to such Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental obligations of the Parent Borrower or such Restricted Subsidiary.

SEC ”: the United States Securities and Exchange Commission.

Secured Parties ”: the “Secured Parties” as defined in the Guarantee and Collateral Agreement.

Securities Act ”: the Securities Act of 1933, as amended from time to time.

Security Agents ”: the Collateral Agent and the Co-Collateral Agent.

 

61


Security Documents ”: the collective reference to the Guarantee and Collateral Agreement and all other similar security documents hereafter delivered to the Collateral Agent granting or perfecting a Lien on any asset or assets of any Person to secure the obligations and liabilities of the Loan Parties hereunder and/or under any of the other Loan Documents or to secure any guarantee of any such obligations and liabilities, including any security documents executed and delivered or caused to be delivered to the Collateral Agent pursuant to Subsection 7.9(a) , 7.9(b) or 7.9(c) , in each case, as amended, supplemented, waived or otherwise modified from time to time.

Self-Pay Account ”: any Account owed directly from a natural person for services provided or rendered to such natural person.

Senior Notes ”: 8.125% Senior Notes due 2019 of the Parent Borrower issued on the Closing Date, as the same may be exchanged for substantially similar senior notes that have been registered under the Securities Act, and as the same or such substantially similar notes may be amended, supplemented, waived or otherwise modified from time to time.

Senior Notes Debt Documents ”: the Senior Notes Indenture and all other instruments, agreements and other documents evidencing or governing the Senior Notes or providing for any guarantee, obligation, security or other right in respect thereof.

Senior Notes Indenture ”: the Indenture dated as of the Closing Date, under which the Senior Notes are issued, as the same may be amended, supplemented, waived or otherwise modified from time to time.

Senior Notes Offering ”: the issuance by the Parent Borrower of senior unsecured notes pursuant to Rule 144A and Regulation S under the Securities Act, under the Senior Notes Indenture on the Closing Date.

Service Date ”: with respect to services rendered to any patient, the date on which such services are rendered.

Service Period ”: with respect to any EmCare Other Business services rendered, each monthly or quarterly service period in respect of such services.

Set ”: the collective reference to Eurodollar Loans of a single Tranche, the then current Interest Periods with respect to all of which begin on the same date and end on the same later date (whether or not such Eurodollar Loans shall originally have been made on the same day).

Settlement Service ”: as defined in Subsection 11.6(b) .

Single Employer Plan ”: any Plan which is covered by Title IV or Section 302 of ERISA or Section 412 of the Code, but which is not a Multiemployer Plan.

Solvent ” and “ Solvency ”: with respect to the Parent Borrower and its Subsidiaries on the Third Amendment Effective Date on a consolidated basis after giving pro forma effect to the Transactions on the Third Amendment Effective Date means (i) the Fair Value and Present Fair Salable Value of the assets of the Parent Borrower and its Subsidiaries taken as a whole exceed their Stated Liabilities and Identified Contingent Liabilities; (ii) the Parent Borrower and its Subsidiaries taken as a whole do not have Unreasonably Small Capital; and (iii) the Parent Borrower and its Subsidiaries taken as a whole will be able to pay their Stated Liabilities and Identified Contingent Liabilities as they mature (all capitalized terms used in this definition other than “Parent Borrower” shall have the meaning assigned to such terms in the form of solvency certificate delivered pursuant to the Third Amendment).

 

62


Specified Availability ”: as of any date of determination, without duplication of amounts calculated thereunder, the sum of the Excess Availability plus Specified Unrestricted Cash (but excluding therefrom the cash proceeds of any Specified Equity Contribution), plus Specified Suppressed Availability as at such date.

Specified Default ”: (a) the occurrence and continuance of an Event of Default under Subsection 9.1(b) as a result of a material breach of any representation or warranty set forth in Subsection 5.21 or Subsection 5.22 , (b) the occurrence and continuance of an Event of Default under Subsection 9.1(c) as a result of the failure of any Loan Party to comply with the terms of Subsection 4.16 or a failure to comply with the delivery obligations with respect to Borrowing Base Certificates set forth in Subsection 7.2(f) or (c) the occurrence and continuance of an Event of Default under Subsection 9.1(a) or Subsection 9.1(f) .

Specified Equity Contribution ”: any cash equity contribution made to the Parent Borrower or any Parent Entity in exchange for Permitted Cure Securities; provided that (a)(i) such cash equity contribution to the Parent Borrower or any Parent Entity and (ii) the contribution of any proceeds therefrom to, and the receipt thereof by, the Parent Borrower occur (x) after the Third Amendment Effective Date and (y) (A) on or prior to the date that is ten (10) Business Days after the date on which financial statements are required to be delivered for a Fiscal Quarter (or Fiscal Year) pursuant to Subsection 7.1(a) or 7.1(b) or (B) on the date on which a Borrowing Base Certificate is delivered ( provided that the right to make a cash equity contribution for Permitted Cure Securities under this clause (a)(i)(y)(B) shall be limited to no more than once in each Fiscal Period) in accordance with Subsection 7.2(f) ; (b) the Parent Borrower identifies such equity contribution as a “Specified Equity Contribution” in a certificate of a Responsible Officer of the Parent Borrower delivered to the Administrative Agent; (c) in each four (4) Fiscal Quarter period, there shall exist a period of at least two (2) Fiscal Quarters in respect of which no Specified Equity Contribution shall have been made; (d) no more than four (4) Specified Equity Contributions may be made during the term of this Agreement; and (e) the amount of any Specified Equity Contribution included in the calculation of EBITDA hereunder shall be limited to the amount required to effect or continue compliance with Subsection 8.1 hereof, whether or not a Compliance Period is in effect, and such amount shall be added to EBITDA solely when calculating EBITDA for purposes of determining compliance with Subsection 8.1 .

Specified Suppressed Availability ”: an amount, if positive, by which the Borrowing Base exceeds the aggregate amount of the Commitments; provided that Specified Suppressed Availability shall not at any time exceed 5% of Availability at such time.

Specified Transaction ”: (a) any Restricted Payment pursuant to Subsection   8.3(i) , (b) any acquisition permitted pursuant to clause (c)(i) of the definition of “Permitted Acquisition,” (c) any investment or acquisition permitted pursuant to clause (u), (w) or (z) of the definition of “Permitted Investments,” (d) any Guarantee Obligation Incurred pursuant to Subsection 8.13(f)(ii) , (e) any Minority Business Disposition or any Minority Business Offering, (f) any payment, repurchase or redemption pursuant to Subsection   8.6(a) , (g) any merger, consolidation, amalgamation or asset sale pursuant to Subsection   8.2(a) or 8.2(b) , and (h) any Asset Sale pursuant to Subsection   8.5 .

Specified Unrestricted Cash ”: as of any date of determination, an amount equal to all Unrestricted Cash of the Parent Borrower and the Loan Parties that (in the case of cash) is deposited in (i) Loan Party DDAs, (ii) Loan Party Concentration Accounts, or (iii) other deposit accounts in the United States, in each case with respect to which a control agreement is in place between the applicable Loan

 

63


Party, the applicable depositary institution and the Administrative Agent or the Collateral Agent (or over which any such Agent has “control” whether or not pursuant to a control agreement) or that (in the case of Cash Equivalents) (a) are not in a securities account in respect of which the applicable Loan Party has entered into a “control agreement” with the applicable broker or securities intermediary for purposes of perfecting a security interest in favor of a third party and (b) are subject to the laws of any state, commonwealth, province or territory of the United States of America, provided that if, as of such date, the Excess Availability is less than the lesser of (x) 10% of Availability and (y) $50,000,000, the amount of Specified Unrestricted Cash shall equal zero and provided , further , that for purposes of calculating Specified Unrestricted Cash, (i) the term “Cash Equivalents” shall be deemed not to include any money, and (ii) the term “Unrestricted Cash” shall be deemed not to include any Temporary Cash Investments.

Standby Letter of Credit ”: as defined in Subsection 3.1(b) .

Stated Amount ”: at any time, as to any Letter of Credit, the maximum amount available to be drawn thereunder (regardless of whether any conditions for drawing could then be met).

Stated Maturity ”: with respect to any Indebtedness, the date specified in such Indebtedness as the fixed date on which the payment of principal of such Indebtedness is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase or repayment of such Indebtedness at the option of the holder thereof upon the happening of any contingency).

Statutory Reserves ”: for any day as applied to a Eurodollar Loan, the average maximum rate at which reserves (including any marginal, supplemental or emergency reserves) are required to be maintained during such Interest Period under Regulation D by member banks of the United States Federal Reserve System in New York City with deposits exceeding one billion Dollars against “ Eurocurrency liabilities ” (as such term is used in Regulation D). Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities and to be subject to such reserve requirements without benefit of or credit for proration, exceptions or offsets which may be available from time to time to any Lender under Regulation D.

Stock Transfer and Option Agreement ”: each Stock Transfer and Option Agreement entered into by EmCare Inc. with a Related Professional Corporation.

Strategic Investors ”: physicians, hospitals, health systems, other healthcare providers, other healthcare companies and other similar strategic joint venture partners which joint venture partners are actively involved in the day-to-day operations of providing surgical care and surgery-related services, or, in the case of physicians, that have retired therefrom, individuals who are former owners or employees of surgical care facilities purchased by the Parent Borrower, any of its Restricted Subsidiaries, and consulting firms that receive common stock solely as consideration for consulting services performed.

Subsidiary ”: as to any Person, a corporation, partnership, limited liability company or other entity (a) of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the Board of Directors or other managers of such corporation, partnership, limited liability company or other entity are at the time owned by such Person, or (b) the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person and, in the case of this clause (b), which is treated as a consolidated subsidiary for accounting purposes. The term “Subsidiary” shall not include any Related Corporation, provided that, for the avoidance of doubt, nothing in this sentence shall limit or otherwise affect the treatment of Related Corporations (including with respect to consolidation) for financial reporting purposes under and in accordance with GAAP. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Parent Borrower.

 

64


Subsidiary Borrower Joinder ”: a joinder in substantially the form of Exhibit N to the Original Credit Agreement, to be executed by each Subsidiary Borrower designated as such after the Third Amendment Effective Date.

Subsidiary Borrowers ”: each Domestic Subsidiary that is a Wholly Owned Subsidiary and a Restricted Subsidiary that becomes a Borrower after twelve (12) days’ (or such shorter period as may be agreed by the Security Agents) written notice to the Security Agents pursuant to a Subsidiary Borrower Joinder, together with their respective successors and assigns after such Subsidiary Borrower provides all information at least 3 Business Days prior to the date such Domestic Subsidiary is to become a Subsidiary Borrower as may be reasonably requested in writing by the Administrative Agent at least 10 days prior to such Domestic Subsidiary becoming a Subsidiary Borrower in order to comply with applicable “know your customer” requirements established by U.S. regulatory authorities; provided that any Domestic Subsidiary that is a Loan Party as of the Third Amendment Effective Date may become a Subsidiary Borrower on five (5) days’ notice and shall not be required to provide any such information.

Subsidiary Guarantor ”: each Domestic Subsidiary that is a Wholly Owned Subsidiary (other than any Borrower or Excluded Subsidiary) of the Parent Borrower which executes and delivers a Subsidiary Guaranty pursuant to Subsection 7.9 or otherwise, in each case, unless and until such time as the respective Subsidiary Guarantor (a) ceases to constitute a Domestic Subsidiary of the Parent Borrower in accordance with the terms and provisions hereof, (b) is designated an Unrestricted Subsidiary pursuant to the terms of this Agreement or (c) is released from all of its obligations under the Subsidiary Guaranty in accordance with terms and provisions thereof.

Subsidiary Guaranty ”: the guaranty of the Obligations of the Borrowers under the Loan Documents provided pursuant to the Guarantee and Collateral Agreement.

Successor Borrower ”: as defined in Subsection 8.2(a) .

Supermajority Lenders ”: Lenders the sum of whose outstanding Commitments (or after the termination thereof, outstanding Individual Lender Exposures) representing more than 66  2 3 % of the sum of the aggregate amount of the total Commitments less the Commitments of all Defaulting Lenders (or after the termination thereof, the sum of the Individual Lender Exposures of Non-Defaulting Lenders) at such time.

Swingline Commitment ”: the Swingline Lender’s obligation to make Swingline Loans pursuant to Subsection 2.4 .

Swingline Exposure ”: at any time the aggregate principal amount at such time of all outstanding Swingline Loans. The Swingline Exposure of any Revolving Credit Lender at any time shall equal its Commitment Percentage of the aggregate Swingline Exposure at such time.

Swingline Lender ”: as defined in the Preamble hereto.

Swingline Loan Participation Certificate ”: a certificate in substantially the form of Exhibit F to the Original Credit Agreement.

Swingline Loans ”: as defined in Subsection 2.4(a) .

 

65


Swingline Note ”: as defined in Subsection 2.4(b) .

Target Amount ”: an amount, when aggregated with all other amounts remaining on deposit in all DDAs and Related Corporation Concentration Accounts (excluding any Loan Party DDAs that are Blocked Accounts, Restricted Bank Accounts and Business Development Amounts) at any time, not exceeding $10,000,000.

Taxes ”: any and all present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority.

Temporary Cash Investments ”: any of the following: (i) any investment in (x) direct obligations of the United States of America, a member state of the European Union or any country in whose currency funds are being held pending their application in the making of an investment or capital expenditure by the Parent Borrower or a Restricted Subsidiary in that country or with such funds, or any agency or instrumentality of any thereof or obligations Guaranteed by the United States of America or a member state of the European Union or any country in whose currency funds are being held pending their application in the making of an investment or capital expenditure by the Parent Borrower or a Restricted Subsidiary in that country or with such funds, or any agency or instrumentality of any of the foregoing, or obligations guaranteed by any of the foregoing or (y) direct obligations of any foreign country recognized by the United States of America rated at least “A” by S&P or “A-1” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), (ii) overnight bank deposits, and investments in time deposit accounts, certificates of deposit, bankers’ acceptances and money market deposits (or, with respect to foreign banks, similar instruments) maturing not more than one year after the date of acquisition thereof issued by (x) any bank or other institutional lender under this Agreement or the Term Loan Facility or any affiliate thereof or (y) a bank or trust company that is organized under the laws of the United States of America, any state thereof or any foreign country recognized by the United States of America having capital and surplus aggregating in excess of $250,000,000 (or the foreign currency equivalent thereof) and whose long term debt is rated at least “A” by S&P or “A-1” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization) at the time such Investment is made, (iii) repurchase obligations with a term of not more than thirty (30) days for underlying securities or instruments of the types described in clause (i) or (ii) above entered into with a bank meeting the qualifications described in clause (ii) above, (iv) Investments in commercial paper, maturing not more than 270 days after the date of acquisition, issued by a Person (other than that of the Parent Borrower or any of its Subsidiaries), with a rating at the time as of which any Investment therein is made of “P-2” (or higher) according to Moody’s or “A-2” (or higher) according to S&P (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), (v) Investments in securities maturing not more than one year after the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P or “A” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), (vi) Preferred Stock (other than of the Parent Borrower or any of its Subsidiaries) having a rating of “A” or higher by S&P or “A2” or higher by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), (vii) investment funds investing 95.0% of their assets in securities of the type described in clauses (i) through (vi) above (which funds may also hold reasonable amounts of cash pending investment and/or distribution), (viii) any money market deposit accounts issued or offered by a domestic commercial bank or a commercial bank organized

 

66


and located in a country recognized by the United States of America, in each case, having capital and surplus in excess of $250,000,000 (or the foreign currency equivalent thereof), or investments in money market funds subject to the risk limiting conditions of Rule 2a-7 (or any successor rule) of the SEC under the Investment Company Act of 1940, as amended, and (ix) similar investments approved by the Board of Directors in the ordinary course of business.

Term Loan Agent ”: JPMorgan Chase Bank, N.A., in its capacity as administrative agent and collateral agent under the Term Loan Documents, or any successor administrative agent or collateral agent under the Term Loan Documents.

Term Loan Credit Agreement ”: the Amended and Restated Credit Agreement, dated as of the Third Amendment Effective Date, among the Parent Borrower, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent thereunder, as such agreement may be amended, supplemented, waived or otherwise modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original administrative agent and lenders or other agents and lenders or otherwise, and whether provided under the original Term Loan Credit Agreement or other credit agreements or otherwise, unless such agreement or instrument expressly provides that it is not intended to be and is not a Term Loan Credit Agreement hereunder). Any reference to the Term Loan Credit Agreement hereunder shall be deemed a reference to any Term Loan Credit Agreement then in existence.

Term Loan Documents ”: the “ Loan Documents ” as defined in the Term Loan Credit Agreement, as the same may be amended, supplemented, waived or otherwise modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (other than any agreement, document or instrument that expressly provides that it is not intended to be and is not a Term Loan Document).

Term Loan Facility ”: the collective reference to the Term Loan Credit Agreement, any Term Loan Documents, any notes and letters of credit issued pursuant thereto and any guarantee and collateral agreement, patent and trademark security agreement, mortgages, letter of credit applications and other guarantees, pledge agreements, security agreements and collateral documents, and other instruments and documents, executed and delivered pursuant to or in connection with any of the foregoing, in each case as the same may be amended, supplemented, waived or otherwise modified from time to time, or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original agent and lenders or other agents and lenders or otherwise, and whether provided under the original Term Loan Credit Agreement or one or more other credit agreements, indentures (including the Senior Notes Indenture) or financing agreements or otherwise, unless such agreement, instrument or document expressly provides that it is not intended to be and is not a Term Loan Facility). Without limiting the generality of the foregoing, the term “ Term Loan Facility ” shall include any agreement (i) changing the maturity of any Indebtedness incurred thereunder or contemplated thereby, (ii) adding Subsidiaries of the Parent Borrower as additional borrowers or guarantors thereunder, (iii) increasing the amount of Indebtedness incurred thereunder or available to be borrowed thereunder or (iv) otherwise altering the terms and conditions thereof.

Term Loan Facility Obligations ”: obligations of the Parent Borrower and the other Loan Parties from time to time arising under or in respect of the due and punctual payment of (i) the principal of and premium, if any, and interest (including interest accruing during (or would accrue but for) the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Term Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (ii) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent,

 

67


fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Parent Borrower and the other Loan Parties under the Term Loan Credit Agreement and the other Term Loan Documents.

Term Loan Priority Collateral ”: as defined in the ABL/Term Loan Intercreditor Agreement whether or not the same remains in full force and effect.

Term Loans ”: the loans borrowed under the Term Loan Facility.

Termination Date ”: the date which is the five (5) year anniversary of the Third Amendment Effective Date.

Third Amendment ”: the Third Amendment to ABL Credit Agreement, dated as of the Third Amendment Effective Date, among the Parent Borrower, the Subsidiary Borrowers party thereto, the Lenders party thereto and the Agents party thereto.

Third Amendment Effective Date ”: December 1, 2016.

Third Amendment Effective Date Existing Indebtedness ”: as defined in Subsection   8.13(d) .

Third Party Payor ”: any governmental entity, insurance company, health maintenance organization, professional provider organization or similar entity or any other Person (other than a natural person) that is obligated to make payments on any Account.

Total Leverage Ratio ”: as of any date of determination, the ratio (calculated on a Pro Forma Basis) of (a) Financial Covenant Debt of the Parent Borrower and its Restricted Subsidiaries determined on a consolidated basis in accordance with GAAP minus the amount of cash, Cash Equivalents, and Temporary Cash Investments held by the Parent Borrower and its Restricted Subsidiaries (whether or not such cash is held in a deposit account over which the Administrative Agent has “control”) as at such date to (b) EBITDA of the Parent Borrower and its Restricted Subsidiaries for the four (4) Fiscal Quarters ended on or most recently prior to such date for which financial statements have been delivered pursuant to Subsection 7.1 .

Tranche ”: each Tranche of Loans available hereunder, with there being two tranches on the Third Amendment Effective Date; namely, Revolving Credit Loans and Swingline Loans.

Transaction Documents ”: collectively, (i) the 2016 Merger Agreement, (ii) the indenture, dated as of December 1, 2016, among the Parent Borrower and Wilmington Trust, National Association, (iii) the purchase agreement, dated as of November 16, 2016, among the Parent Borrower and the initial purchasers party thereto, (iv) the Third Amendment, (v) the seventh amendment to the Term Loan Credit Agreement and (vi) customary director indemnification agreements.

Transactions ” means, collectively, any or all of the following: (i) the entry into the indenture, dated as of December 1, 2016, among the Parent Borrower and Wilmington Trust, National Association, entry into the purchase agreement, dated as of November 16, 2016, among the Parent Borrower and the initial purchasers party thereto and the issuance of the senior unsecured notes on December 1, 2016, (ii) the entry into the seventh amendment to the Term Loan Facility and the Incurrence of Term Loans thereunder, (iii) the entry into the Third Amendment, (iv) the consummation of the 2016 Mergers, (v) the repayment, refinancing, defeasance and/or redemption of certain Indebtedness of each of Envision

 

68


Healthcare Holdings, Inc. and its Subsidiaries and AmSurg in connection with the foregoing and (vi) all other transactions relating to any of the foregoing (including payment of fees and expenses related to any of the foregoing).

Transferee ”: any Participant or Assignee.

TRICARE ”: collectively, 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, which program was formerly known as the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), and all laws, rules, regulations, 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.

TRICARE Account ”: an Account payable pursuant to TRICARE.

Type ”: the type of Loan determined based on the currency in which the same is denominated, and the interest option applicable thereto, with there being multiple Types of Loans hereunder, namely ABR Loans and Eurodollar Loans.

UCC ”: the Uniform Commercial Code as in effect in the State of New York from time to time.

Underfunding ”: the excess of the present value of all accrued benefits under a Plan (based on those assumptions used to fund such Plan), determined as of the most recent annual valuation date, over the value of the assets of such Plan allocable to such accrued benefits.

Uniform Customs ”: the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600, as the same may be amended from time to time.

United States Person ”: any United States person within the meaning of Section 7701(a)(30) of the Code.

Unpaid Drawing ”: drawings on Letters of Credit that have not been reimbursed by the applicable Borrower.

Unrestricted Cash ”: as at any date of determination, without duplication (a) the aggregate amount of cash, Cash Equivalents and Temporary Cash Investments included in the cash accounts that would be listed on the consolidated balance sheet of the Parent Borrower prepared in accordance with GAAP as at such date to the extent such cash is not classified as “restricted” for financial statement purposes (unless so classified solely because of any provision under the Loan Documents or any other agreement or instrument governing other Indebtedness that is subject to the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement governing the application thereof or because they are subject to a Lien securing the Obligations or other Indebtedness that is subject to the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement), plus (b) the proceeds from any Incurrence of Indebtedness that is (in the good faith judgment of the Parent Borrower) intended to be used for working capital purposes at the date of determination, plus (c) the Net Proceeds from any Excluded Contribution that are intended (in the good faith judgment of the Parent Borrower) to be used for working capital purposes at the date of determination.

 

69


Unrestricted Government Accounts ”: collectively, any and all Accounts (other than Restricted Government Accounts) which (a) represent any government subsidies payable by a Governmental Authority, (b) are Accounts arising from services provided under agreements with the U.S. Department of Health and Human Services, including any pilot program, or (c) any other Account payable by a Governmental Authority approved by the Security Agents in their reasonable discretion.

Unrestricted Subsidiary ”: (i) any Subsidiary of the Parent Borrower designated at any time by the Board of Directors of the Parent Borrower as an Unrestricted Subsidiary hereunder by written notice to the Administrative Agent and (ii) any Subsidiary of an Unrestricted Subsidiary, provided that the Board of Directors of the Parent Borrower shall only be permitted to designate a subsidiary as an Unrestricted Subsidiary so long as:

(a) immediately after such designation, no Event of Default under Subsection   9.1(a) or 9.1(f) shall have occurred and be continuing;

(b) (i) such designation was made at or prior to the Third Amendment Effective Date; or

(ii) the Subsidiary to be so designated has Consolidated Total Assets of $1,000 or less at the time of designation; or

(iii) if such Subsidiary has Consolidated Total Assets greater than $1,000 at the time of designation, then immediately after giving effect to such designation, the Parent Borrower and its Restricted Subsidiaries shall be in compliance, on a Pro Forma Basis, with the covenant set forth in Subsection 8.1 , whether or not a Compliance Period is in effect, as demonstrated to the reasonable satisfaction of the Administrative Agent;

(c) no Subsidiary shall be designated as an Unrestricted Subsidiary if such Subsidiary owns (directly or indirectly) any Capital Stock or Indebtedness of, or holds any Liens on any property of, any Borrower or any Restricted Subsidiary that is not a Subsidiary of the Subsidiary to be so designated; and

(d) no Subsidiary may be designated as an Unrestricted Subsidiary if it is a “Restricted Subsidiary” for the purpose of the Term Loan Documents or the Senior Notes Debt Documents.

The designation of any Subsidiary as an Unrestricted Subsidiary shall constitute an Investment by the Parent Borrower therein (and must comply as such with the limitations on Investments under Subsection 8.12 ) at the date of designation in an amount equal to the net book value of the Parent Borrower’s Investment therein.

The Parent Borrower shall only be permitted to designate an Unrestricted Subsidiary as a Restricted Subsidiary so long as:

(a) immediately after such designation, no Event of Default under Subsection 9.1(a) or 9.1(f) shall have occurred and be continuing; and

(b) immediately after giving effect to such designation, the Parent Borrower and its Restricted Subsidiaries shall be in compliance, on a Pro Forma Basis, with the covenant set forth in Subsection 8.1 , whether or not a Compliance Period is in effect, as demonstrated to the reasonable satisfaction of the Administrative Agent.

 

70


The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the incurrence at the time of designation of any Indebtedness or Liens of such Subsidiary existing at such time and, in each case, shall be subject to the terms of Subsection 7.9 and Section 8 .

Unsecured Ratio Indebtedness ”: unsecured Indebtedness of any Loan Party evidenced by any notes, other debt securities or other indebtedness; provided that immediately after giving effect to each issuance of such Unsecured Ratio Indebtedness, the Total Leverage Ratio is less than or equal to 6.75 to 1:00.

Unutilized Commitment ”: with respect to any Lender at any time, an amount equal to the remainder of (x) such Lender’s Commitment as in effect at such time less (y) such Lender’s Individual Lender Exposure at such time (excluding any Swingline Exposure of such Lender).

U.S. Tax Compliance Certificate ”: as defined in Subsection 4.11(b)(ii)(2) .

Voting Stock ”: as to any entity, all classes of Capital Stock of such entity then outstanding and normally entitled to vote in the election of directors to the Board of Directors or all interests in such entity with the ability to control the management or actions of such entity.

Wholly Owned Subsidiary ”: as to any Person, any Subsidiary of such Person of which such Person owns, directly or indirectly through one or more Wholly Owned Subsidiaries, all of the Capital Stock of such Subsidiary other than directors qualifying shares or shares held by nominees.

Write-Down and Conversion Powers ”: with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

1.2 Other Definitional Provisions . Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in any Notes, any other Loan Document or any certificate or other document made or delivered pursuant hereto.

(a) As used herein and in any Notes and any other Loan Document, and any certificate or other document made or delivered pursuant hereto or thereto, accounting terms relating to the Parent Borrower and its Restricted Subsidiaries not defined in Subsection 1.1 and accounting terms partly defined in Subsection 1.1 , to the extent not defined, shall have the respective meanings given to them under GAAP.

(b) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Subsection, Schedule and Exhibit references are to this Agreement unless otherwise specified. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”

(c) Financial ratios and other financial calculations pursuant to this Agreement, including calculations pursuant to Subsection 8.1 shall, following any transaction described in the definition

 

71


of “Pro Forma Basis,” be calculated on a Pro Forma Basis until the completion of four (4) full Fiscal Quarters following such transaction (and shall also be subject to clause (d) below to the extent applicable).

(d) For purposes of determining any financial ratio or making any financial calculation for any Fiscal Quarter (or portion thereof) ending prior to the Third Amendment Effective Date (other than the calculation of Consolidated Interest Expense, as and to the extent set forth in the definition thereof), the components of such financial ratio or financial calculation shall be determined on a pro forma basis to give effect to the Transactions as if they had occurred at the beginning of such four quarter period; and each Person that is a Restricted Subsidiary upon giving effect to the Transaction shall be deemed to be a Restricted Subsidiary for purposes of the components of such financial ratio or financial calculation as of the beginning of such four quarter period.

(e) For purposes of this Agreement for periods ending on or prior to the Third Amendment Effective Date, references to the consolidated financial statements of the Parent Borrower shall be to (i) the consolidated financial statements of the consolidated financial statements of the Company with pro forma effect being given to the Transactions (with Subsidiaries of the Company being deemed Subsidiaries of the Parent Borrower (after giving pro forma effect to the Transactions)) or (ii) the consolidated financial statements of any Parent Entity whose financial statements satisfy the Parent Borrower’s reporting obligations under Subsection 7.1 , as the context may require.

(f) Any financial ratios required to be maintained pursuant to this Agreement (or required to be satisfied in order for a specific action to be permitted under this Agreement) shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

(g) Any references in this Agreement to “cash and/or Cash Equivalents,” “cash, Cash Equivalents and/or Temporary Cash Investments” or any similar combination of the foregoing shall be construed as not double counting cash or any other applicable amount which would otherwise be duplicated therein.

(h) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

(i) The Borrowing Base shall be calculated without duplication, including without duplication of any reserves, items that are otherwise addressed or excluded through eligibility criteria or items that are factored into the calculation of collection rates or collection percentages.

(j) All determinations of the Security Agents under the Loan Documents shall be made jointly by the Security Agents; provided that, in the event that the Security Agents cannot agree on any matter to be determined by the Security Agents, the determination shall be made by the individual Security Agent asserting the more conservative credit judgment, providing a notice to a Borrower requiring additional information, requesting to take an action for the benefit of the Lenders or declining to permit the requested action for which consent is being sought by a Borrower, as applicable.

(k) For purposes of this Agreement references to the consolidated financial statements of the Parent Borrower shall be deemed to include the consolidated financial statements of any Parent Entity whose financial statements satisfy the Parent Borrower’s reporting obligations under Subsection 7.1 , as the context may require.

 

72


1.3 Effect of Restatement . This Agreement shall amend and restate the Original Credit Agreement in its entirety, with the parties to the Third Amendment hereby agreeing that there is no novation of the Original Credit Agreement and from and after the effectiveness of this Agreement, the rights and obligations of the parties under the Original Credit Agreement shall be subsumed and governed by this Agreement. From and after the effectiveness of this Agreement, the Obligations and Letters of Credit under the Original Credit Agreement shall continue as Obligations and Letters of Credit under this Agreement and the Loan Documents until otherwise paid in accordance with the terms hereof. Without limiting the generality of the foregoing, the Security Documents and the grant of Liens on all of the Collateral described therein do and shall continue to secure the payment of all Obligations (as defined in the Guarantee and Collateral Agreement) of the Loan Parties under the Loan Documents, in each case, as amended by this Agreement.

SECTION 2

Amount and Terms of Commitments

2.1 Commitments .

(a) Subject to and upon the terms and conditions set forth herein, each Lender severally agrees to make, at any time and from time to time on or after the Third Amendment Effective Date and prior to the Termination Date, a Revolving Credit Loan or Revolving Credit Loans to any Borrower, which Revolving Credit Loans:

(i) shall be denominated in Dollars;

(ii) shall, at the option of the applicable Borrower, be incurred and maintained as, and/or converted into, ABR Loans or Eurodollar Loans, provided that except as otherwise specifically provided in Subsections 4.9 and 4.10 , all Revolving Credit Loans comprising the same Borrowing shall at all times be of the same Type;

(iii) may be repaid and reborrowed in accordance with the provisions hereof;

(iv) shall not be made (and shall not be required to be made) by any Lender to the extent the incurrence thereof (after giving effect to the use of the proceeds thereof on the date of the incurrence thereof to repay any amounts theretofore outstanding pursuant to this Agreement) would cause the Individual Lender Exposure of such Lender to exceed the amount of its Commitment at such time; and

(v) shall not be made (and shall not be required to be made) by any Lender to the extent the incurrence thereof (after giving effect to the use of the proceeds thereof on the date of the incurrence thereof to repay any amounts theretofore outstanding pursuant to this Agreement) would cause the Aggregate Lender Exposure to exceed the lesser of (A) the total Commitments as then in effect and (B) the Borrowing Base at such time (based on the Borrowing Base Certificate last delivered).

(b) Notwithstanding anything to the contrary in Subsection 2.1(a) or elsewhere in this Agreement, the Security Agents shall have the right to establish Availability Reserves in such amounts, and with respect to such matters, as the Security Agents in their Permitted Discretion shall deem necessary or appropriate, against the Borrowing Base including reserves with respect to (i) sums that the Borrowers are or will be required to pay (such as taxes (including payroll and sales taxes), assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases)

 

73


and have not yet paid and (ii) amounts owing by the Borrowers or, without duplication, their respective Restricted Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the ABL Priority Collateral, which Lien or trust, in the Permitted Discretion of the Security Agents is capable of ranking senior in priority to or pari passu with one or more of the Liens in the ABL Priority Collateral granted in the Security Documents (such as Liens or trusts in favor of landlords, warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem , excise, sales, or other taxes where given priority under applicable law) in and to such item of the ABL Priority Collateral; provided that (x) with respect to any Availability Reserve (other than any Designated Hedging Reserves or Cash Management Reserves), the Security Agents shall have provided the applicable Borrower reasonable advance notice of any such establishment and (y) (i) the imposition of any Designated Hedging Reserve or Cash Management Reserve shall be immediately effective upon the Parent Borrower notifying the Security Agents in writing of the imposition of any such Designated Hedging Reserve or Cash Management Reserve in accordance with Subsection 11.22 and (ii) any adjustment in any Designated Hedging Reserve or Cash Management Reserve contemplated by the respective definitions thereof shall be immediately effective upon the notification to the Security Agents; and provided , further , that the Security Agents may only establish an Availability Reserve after the Third Amendment Effective Date based on an event, condition or other circumstance arising after the Third Amendment Effective Date or based on facts not known to the Security Agents as of the Third Amendment Effective Date. The amount of any Availability Reserve shall have a reasonable relationship to the event, condition or other matter that is the basis for the Availability Reserve. Upon delivery of such notice, the Security Agents shall be available to discuss any proposed Availability Reserve, and the Borrowers may take such action as may be required so that the event, condition or matter that is the basis for such Availability Reserve or increase no longer exists, in a manner and to the extent reasonably satisfactory to the Security Agents in the exercise of its Permitted Discretion. In no event shall such notice and opportunity limit the right of the Security Agents to establish such Availability Reserve, unless the Security Agents shall have determined in their Permitted Discretion that the event, condition or other matter that is the basis for such new Availability Reserve no longer exists or has otherwise been adequately addressed by the applicable Borrower. In the event that the event, condition or other matter giving rise to the establishment of any Availability Reserve shall cease to exist (unless there is a reasonable prospect that such event, condition or other matter will occur again within a reasonable period of time thereafter), the Availability Reserve established pursuant to such event, condition or other matter, shall be discontinued. Notwithstanding anything herein to the contrary, Availability Reserves shall not duplicate (i) eligibility criteria contained in the definition of “Eligible Accounts” or “Eligible Inventory” and vice versa, (ii) reserves or criteria deducted in computing the value of Eligible Inventory (based on cost and quantity) and vice versa, or (iii) collection rate or collection percentages contained in the definition of “AMR Accounts Historical Collection Analysis,” “EmCare Projected Collection Analysis,” “EmCare Projected Collection Rate for 0-180 Days,” “EmCare Projected Collection Rate for 180-360 Days,” “AMR Self-Pay Accounts Collection Rate” and vice versa (it being understood that, notwithstanding this Subclause 2.1(b) (iii), the Security Agents shall not be restricted in their ability to establish a reserve in their Permitted Discretion related to collection rates or collection percentages used in determining eligibility).

(c) In the event the Borrowers are unable to comply with (i) the borrowing base limitations set forth in Subsection 2.1(a) or (ii) the conditions precedent to the making of Revolving Credit Loans or the issuance of Letters of Credit set forth in Section 6, the Lenders authorize the Administrative Agent (at the direction of the Security Agents), for the account of the Lenders, to make Revolving Credit Loans to the Borrowers, which may only be made as ABR Loans (each, an “Agent Advance”) for a period commencing on the date the Administrative Agent first receives a notice of Borrowing requesting an Agent Advance until the earliest of (i) the 30th Business Day after such date, (ii) the date the respective Borrowers or Borrower are again able to comply with the Borrowing Base limitations and the conditions precedent to the making of Revolving Credit Loans and issuance of Letters of Credit, or obtains an amendment or waiver with respect thereto and (iii) the date the Required Lenders instruct the Administrative

 

74


Agent to cease making Agent Advances (in each case, the “ Agent Advance Period ”). The Administrative Agent shall not make any Agent Advance to the extent that at such time the amount of such Agent Advance (A) when added to the aggregate outstanding amount of all other Agent Advances made to the Borrowers at such time, would exceed 5.0% of the Borrowing Base at such time (based on the Borrowing Base Certificate last delivered) or (B) when added to the Aggregate Lender Exposure as then in effect (immediately prior to the incurrence of such Agent Advance), would exceed the total Commitments at such time. It is understood and agreed that, subject to the requirements set forth above, Agent Advances may be made by the Administrative Agent in the discretion of the Security Agents to the extent the Security Agents deems such Agent Advances necessary or desirable (x) to preserve and protect the applicable Collateral, or any portion thereof, (y) to enhance the likelihood of, or maximize the amount of, repayment of the Loans and other obligations of the Loan Parties hereunder and under the other Loan Documents or (z) to pay any other amount chargeable to or required to be paid by the Borrowers pursuant to the terms of this Agreement, including payments of reimbursable expenses and other sums payable under the Loan Documents, and that the Borrowers shall have no right to require that any Agent Advances be made.

(d) Each Borrower agrees that, upon the request to the Administrative Agent by any Revolving Credit Lender made on or prior to the Third Amendment Effective Date or in connection with any assignment pursuant to Subsection 11.6(b) , in order to evidence such Lender’s Revolving Credit Loans, such Borrower will execute and deliver to such Lender a promissory note substantially in the form of Exhibit A-1 to the Original Credit Agreement (each, as amended, supplemented, replaced or otherwise modified from time to time, a “ Revolving Credit Note ”), with appropriate insertions as to payee, date and principal amount, payable to such Lender and in a principal amount equal to the aggregate unpaid principal amount of all Revolving Credit Loans made by such Revolving Credit Lender to such Borrower. Each Revolving Credit Note shall (i) be dated the Third Amendment Effective Date, (ii) be stated to mature on the Termination Date and (iii) provide for the payment of interest in accordance with Subsection 4.1 .

2.2 Procedure for Revolving Credit Borrowing . Each of the Borrowers may borrow under the Commitments during the Commitment Period on any Business Day, provided that the Borrower Representative shall give the Administrative Agent irrevocable (in the case of any notice except notice with respect to the initial Extension of Credit hereunder, which shall be irrevocable after the funding) notice (which notice must be received by the Administrative Agent prior to (a) 1:00 P.M., New York City time, at least three Business Days (or such later time as may be agreed by the Administrative Agent in its reasonable discretion) prior to the requested Borrowing Date, if all or any part of the requested Revolving Credit Loans are to be initially Eurodollar Loans or (b) noon, New York City time (or such later time as may be agreed by the Administrative Agent in its reasonable discretion), on the requested Borrowing Date, for ABR Loans) specifying (i) the identity of a Borrower, (ii) the amount to be borrowed, (iii) the requested Borrowing Date, (iv) whether the borrowing is to be of Eurodollar Loans, ABR Loans or a combination thereof and (v) if the borrowing is to be entirely or partly of Eurodollar Loans, the respective amounts of each such Type of Loan and the respective lengths of the initial Interest Periods therefor. Each borrowing shall be in an amount equal to (x) in the case of ABR Loans, except any ABR Loan to be used solely to pay a like amount of outstanding Reimbursement Obligations or Swingline Loans, in multiples of $1,000,000 (or, if the Commitments then available (as calculated in accordance with Subsection 2.1(a) ) are less than $1,000,000, such lesser amount) and (y) in the case of Eurodollar Loans, $1,000,000, or a whole multiple of $500,000 in excess thereof. Upon receipt of any such notice from the Borrower Representative the Administrative Agent shall promptly notify each applicable Revolving Credit Lender thereof. Subject to the satisfaction of the conditions precedent specified in Subsection 6.2 , each applicable Revolving Credit Lender will make the amount of its pro rata share of each borrowing of Revolving Credit Loans available to the Administrative Agent for the account of the Borrower identified in such notice at the office of the Administrative Agent specified in Subsection 11.2 prior to noon (or (i) 9:00 A.M., in the case of a borrowing hereunder on the Third Amendment Effective Date (other than a borrowing of

 

75


ABR Loans for which notice is provided on the Third Amendment Effective Date or (ii) 3:00 P.M. in the case of a borrowing of ABR Loans on same day notice), New York City time, or at such other office of the Administrative Agent or at such other time as to which the Administrative Agent shall notify such Borrower reasonably in advance of the Borrowing Date with respect thereto, on the Borrowing Date requested by such Borrower and in funds immediately available to the Administrative Agent.

2.3 Termination or Reduction of Commitments . The Parent Borrower (on behalf of itself and each other applicable Borrower) shall have the right, upon not less than three Business Days’ (or such later time as may be agreed by the Administrative Agent in its reasonable discretion) notice to the Administrative Agent (who will promptly notify the Lenders), to terminate the Commitments, or, from time to time, to reduce the amount of the Commitments; provided that no such termination or reduction shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Credit Loans and Swingline Loans made on the effective date thereof, the aggregate principal amount of the Revolving Credit Loans and Swingline Loans then outstanding, when added to the sum of the then outstanding L/C Obligations, would exceed the Commitments then in effect and provided , further , that any such notice of termination delivered by the Parent Borrower may state that such notice is conditioned upon the occurrence or non-occurrence of any event specified therein (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Parent Borrower (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any such reduction shall be in an amount equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof and shall reduce permanently the applicable Commitments then in effect.

2.4 Swingline Commitments .

(a) Subject to the terms and conditions hereof, the Swingline Lender agrees to make Swingline loans (individually, a “ Swingline Loan ”; collectively, the “ Swingline Loans ”) to any of the Borrowers from time to time during the Commitment Period in an aggregate principal amount at any one time outstanding not to exceed $50,000,000 (or such greater amount that does not exceed $75,000,000 as may be agreed by the Swingline Lender in its sole discretion from time to time); provided that at no time may the sum of the then outstanding Swingline Loans, Revolving Credit Loans and L/C Obligations exceed the lesser of (1) the Commitments then in effect and (2) the Borrowing Base then in effect (based on the most recent Borrowing Base Certificate). Swingline Loans shall be made in minimum amounts of $1,000,000 and integral multiples of $500,000 above such amount. Amounts borrowed by any Borrower under this Subsection 2.4 may be repaid and, through but excluding the Termination Date, reborrowed. All Swingline Loans made to any Borrower shall be made in Dollars as ABR Loans, and shall not be entitled to be converted into Eurodollar Loans. The Borrower Representative (on behalf of itself or any other Borrower as the case may be), shall give the Swingline Lender irrevocable notice (which notice must be received by the Swingline Lender prior to 12:00 P.M., New York City time, on the requested Borrowing Date) specifying (1) the identity of a Borrower, (2) the amount of the requested Swingline Loan and (3) that the Borrowing is to be of ABR Loans. The proceeds of the Swingline Loans will be made available by the Swingline Lender to the Borrower identified in such notice at an office of the Swingline Lender by crediting the account of such Borrower at such office with such proceeds in Dollars.

(b) Each of the Borrowers agrees that, upon the request to the Administrative Agent by the Swingline Lender made on or prior to the Third Amendment Effective Date or in connection with any assignment pursuant to Subsection 11.6(b) , in order to evidence the Swingline Loans such Borrower will execute and deliver to the Swingline Lender a promissory note substantially in the form of Exhibit A-2 to the Original Credit Agreement, with appropriate insertions (as the same may be amended, supplemented, replaced or otherwise modified from time to time, the “ Swingline Note ”), payable to the Swingline Lender and representing the obligation of such Borrower to pay the amount of the Swingline Commitment or, if less, the unpaid principal amount of the Swingline Loans made to such Borrower, with interest

 

76


thereon as prescribed in Subsection 4.1 . The Swingline Note shall (i) be dated the Third Amendment Effective Date, (ii) be stated to mature on the Termination Date and (iii) provide for the payment of interest in accordance with Subsection 4.1 .

(c) The Swingline Lender, at any time in its sole and absolute discretion may, and, at any time as there shall be a Swingline Loan outstanding for more than seven (7) Business Days, the Swingline Lender shall, on behalf of the Borrower to which the Swingline Loan has been made (which hereby irrevocably directs and authorizes such Swingline Lender to act on its behalf), request ( provided that such request shall be deemed to have been automatically made upon the occurrence of an Event of Default under Subsection 9.1(f) ) each Lender, including the Swingline Lender, to make a Revolving Credit Loan as an ABR Loan in an amount equal to such Lender’s Commitment Percentage of the principal amount of all Swingline Loans made in Dollars (each, a “ Mandatory Revolving Credit Loan Borrowing ”) in an amount equal to such Lender’s Commitment Percentage of the principal amount of all of the Swingline Loans (collectively, the “ Refunded Swingline Loans ”) outstanding on the date such notice is given; provided that the provisions of this Subsection 2.4 shall not affect the obligations of any Borrower to prepay Swingline Loans in accordance with the provisions of Subsection 4.4(c) . Unless the Commitments shall have expired or terminated (in which event the procedures of clause (d) of this Subsection 2.4 shall apply), each Lender hereby agrees to make the proceeds of its Revolving Credit Loan (including any Eurodollar Loan) available to the Administrative Agent for the account of the Swingline Lender at the office of the Administrative Agent prior to 11:00 A.M., New York City time, in funds immediately available on the Business Day next succeeding the date such notice is given notwithstanding (i) that the amount of the Mandatory Revolving Credit Loan Borrowing may not comply with the minimum amount for Revolving Credit Loans otherwise required hereunder, (ii) whether any conditions specified in Section 6 are then satisfied, (iii) whether a Default or an Event of Default then exists, (iv) the date of such Mandatory Revolving Credit Loan Borrowing and (v) the amount of the Commitment of such, or any other, Lender at such time. The proceeds of such Revolving Credit Loans (including without limitation, any Eurodollar Loan) shall be immediately applied to repay the Refunded Swingline Loans.

(d) If the Commitments shall expire or terminate at any time while Swingline Loans are outstanding, each Lender shall, at the option of the Swingline Lender, exercised reasonably, either (i) notwithstanding the expiration or termination of the Commitments, make a Loan as an ABR Loan (which Revolving Credit Loan shall be deemed a “ Revolving Credit Loan ” for all purposes of this Agreement and the other Loan Documents) or (ii) purchase an undivided participating interest in such Swingline Loans, in either case in an amount equal to such Lender’s Commitment Percentage determined on the date of, and immediately prior to, expiration or termination of the Commitments of the aggregate principal amount of such Swingline Loans; provided that in the event that any Mandatory Revolving Credit Loan Borrowing cannot for any reason be made on the date otherwise required above (including as a result of the commencement of a proceeding under any domestic or foreign bankruptcy, reorganization, dissolution, insolvency, receivership, administration or liquidation or similar law with respect to any Borrower), then each Lender hereby agrees that it shall forthwith purchase (as of the date the Mandatory Revolving Credit Loan Borrowing would otherwise have occurred, but adjusted for any payments received from such Borrower on or after such date and prior to such purchase) from the Swingline Lender such participations in such outstanding Swingline Loans as shall be necessary to cause such Lenders to share in such Swingline Loans ratably based upon their respective Commitment Percentages, provided , further , that (x) all interest payable on the Swingline Loans shall be for the account of the Swingline Lender until the date as of which the respective participation is required to be purchased and, to the extent attributable to the purchased participation, shall be payable to the participant from and after such date and (y) at the time any purchase of participations pursuant to this sentence is actually made, the purchasing Lender shall be required to pay the Swingline Lender interest on the principal amount of the participation purchased for each day from and including the day upon which the Mandatory Revolving Credit Loan Borrowing would otherwise have occurred to but excluding the date of payment for such participation, at the rate

 

77


otherwise applicable to Revolving Credit Loans made as ABR Loans. Each Lender will make the proceeds of any Revolving Credit Loan made pursuant to the immediately preceding sentence available to the Administrative Agent for the account of the Swingline Lender at the office of the Administrative Agent prior to 11:00 A.M., New York City time, in Dollars in funds immediately available on the Business Day next succeeding the date on which the Commitments expire or terminate. The proceeds of such Revolving Credit Loans shall be immediately applied to repay the Swingline Loans outstanding on the date of termination or expiration of the Commitments. In the event that the Lenders purchase undivided participating interests pursuant to the first sentence of this clause (d), each Lender shall immediately transfer to the Swingline Lender, in Dollars in immediately available funds, the amount of its participation and upon receipt thereof the Swingline Lender will deliver to such Lender a Swingline Loan Participation Certificate dated the date of receipt of such funds and in such amount.

(e) Whenever, at any time after the Swingline Lender has received from any Lender such Lender’s participating interest in a Swingline Loan, the Swingline Lender receives any payment on account thereof (whether directly from a Borrower or otherwise, including proceeds of Collateral applied thereto by the Swingline Lender), or any payment of interest on account thereof, the Swingline Lender will, if such payment is received prior to 11:00 A.M., New York City time, on a Business Day, distribute to such Lender its pro rata share thereof prior to the end of such Business Day and otherwise, the Swingline Lender will distribute such payment on the next succeeding Business Day (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded); provided , however , that in the event that such payment received by the Swingline Lender is required to be returned, such Lender will return to the Swingline Lender any portion thereof previously distributed by the Swingline Lender to it.

(f) Each Lender’s obligation to make the Revolving Credit Loans and to purchase participating interests with respect to Swingline Loans in accordance with Subsections 2.4(c) and 2.4(d) shall be absolute and unconditional and shall not be affected by any circumstance, including without limitation (i) any set-off, counterclaim, recoupment, defense or other right that such Lender or any of the Borrowers may have against the Swingline Lender, any of the Borrowers or any other Person for any reason whatsoever; (ii) the occurrence or continuance of a Default or an Event of Default; (iii) any adverse change in condition (financial or otherwise) of any of the Borrowers; (iv) any breach of this Agreement or any other Loan Document by any of the Borrowers, any other Loan Party or any other Lender; (v) any inability of any of the Borrowers to satisfy the conditions precedent to borrowing set forth in this Agreement on the date upon which such Revolving Credit Loan is to be made or participating interest is to be purchased or (vi) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.

2.5 Repayment of Loans .

(a) Each Borrower hereby unconditionally promises to pay to the Administrative Agent in Dollars for the account of: (i) each Lender the then unpaid principal amount of each Revolving Credit Loan of such Lender made to such Borrower, on the Termination Date (or such earlier date on which the Revolving Credit Loans become due and payable pursuant to Section 9 ); and (ii) the Swingline Lender, the then unpaid principal amount of the Swingline Loans made to such Borrower, on the Termination Date (or such earlier date on which the Swingline Loans become due and payable pursuant to Section 9 ). Each Borrower hereby further agrees to pay interest (which payments shall be in Dollars) on the unpaid principal amount of such Loans from time to time outstanding from the Third Amendment Effective Date until payment in full thereof at the rates per annum, and on the dates, set forth in Subsection 4.1 .

(b) Each Lender (including the Swingline Lender) shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of each of the Borrowers to such Lender resulting from each Loan of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement.

 

78


(c) The Administrative Agent shall maintain the Register pursuant to Subsection 11.6(b) , and a subaccount therein for each Lender, in which shall be recorded (i) the amount of each Loan made hereunder, the Type thereof, the Borrowers to which such Loan is made, each Interest Period, if any, applicable thereto and whether such Loans are Revolving Credit Loans or Swingline Loans, (ii) the amount of any principal or interest due and payable or to become due and payable from each of the Borrowers to each applicable Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from each of the Borrowers and each applicable Lender’s share thereof.

(d) The entries made in the Register and the accounts of each Lender maintained pursuant to Subsection 2.5(c) shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of each of the Borrowers therein recorded; provided , however , that the failure of any Lender or the Administrative Agent to maintain the Register or any such account, or any error therein, shall not in any manner affect the obligation of any Borrower to repay (with applicable interest) the Loans made to such Borrower by such Lender in accordance with the terms of this Agreement.

2.6 Incremental Facility .

(a) So long as no Specified Default exists or would arise therefrom, the Borrowers shall have the right, at any time and from time to time after the Third Amendment Effective Date, to request (i) an increase of the aggregate amount of the then outstanding Commitments (the “ Incremental Revolving Commitments ”) or (ii) one or more term loans (the “ Incremental ABL Term Loans ” and together with the Incremental Revolving Commitments, collectively, the “ Incremental Facilities ” and each, an “ Incremental Facility ”). Notwithstanding anything to contrary herein, the principal amount of any Incremental ABL Term Loans or Incremental Revolving Commitments shall not exceed the Available Incremental Amount at such time. The Parent Borrower may seek to obtain Incremental Revolving Commitments or Incremental ABL Term Loans from existing Lenders or other Persons, as applicable (each an “ Incremental Facility Increase ,” and each Person extending, or Lender extending, Incremental Revolving Commitments or Incremental ABL Term Loans, an “ Additional Lender ”), provided , however , that (i) no Lender shall be obligated to provide an Incremental Facility Increase as a result of any such request by the Borrowers, and (ii) any Additional Lender which is not an existing Lender shall be subject to the approval of, the Administrative Agent, the Swingline Lender, each Issuing Lender and the Borrowers (each such approval not to be unreasonably withheld, conditioned or delayed). Each Incremental Facility Increase shall be in a minimum aggregate amount of at least $15,000,000 and in integral multiples of $5,000,000 in excess thereof. Any Incremental Facility Increase may be denominated in Dollars.

(b) (i) Any Incremental ABL Term Loans (A) may not be guaranteed by any Subsidiaries of the Parent Borrower other than the Guarantors and shall rank pari passu (or, at the option of the Parent Borrower, junior) in right of (x) priority with respect to the Collateral and (y) payment with respect to the Obligations in respect of the Commitments and any existing Incremental ABL Term Loans, (B) shall be part of, and count against, the Borrowing Base, (C) shall not have a final maturity that is earlier than the Termination Date, (D) shall not amortize at a rate greater than 1.0% per annum, (E) for purposes of prepayments, shall be treated no more favorably than the Loans, (F) may not be secured by any Collateral or other assets of any Loan Party that do not also secure the Loans and (G) shall otherwise be on terms as are reasonably satisfactory to the Administrative Agent.

(ii) Any Incremental Revolving Commitments (A) shall be guaranteed by the Guarantors (and by no other Subsidiary) and shall rank pari passu in right of (x) priority with respect to the

 

79


Collateral and (y) payment with respect to the Obligations in respect of the Commitments in effect prior to the Incremental Revolving Commitment Effective Date and shall not be secured by any assets of any Loan Party that do not secure Obligations in respect of the Commitments in effect prior to the Incremental Revolving Commitment Effective Date and (B) shall be on terms and pursuant to the documentation applicable to the existing Commitments; provided that the Applicable Margin relating to the Incremental Revolving Commitments may exceed the Applicable Margin relating to the Commitments in effect prior to the Incremental Revolving Commitment Effective Date so long as the Applicable Margins relating to all Revolving Credit Loans shall be adjusted to be equal to the Applicable Margin payable to the Lenders providing such Incremental Revolving Commitments.

(iii) The Incremental Facilities may be in the form of a separate “first-in, last out” tranche (the “ FILO Tranche ”) with a separate borrowing base against the ABL Priority Collateral and interest rate margins in each case to be agreed upon (which, for the avoidance of doubt, shall not require any adjustment to the Applicable Margin of other Loans pursuant to clause (ii) above) among the Parent Borrower, the Administrative Agent and the Lenders providing the FILO Tranche so long as (1) any loans under the FILO Tranche may not be guaranteed by any Subsidiaries of the Parent Borrower other than the Guarantors and shall rank pari passu (or, at the option of the Parent Borrower, junior) in right of priority with respect to the Collateral; (2) if the FILO Tranche availability exceeds $0, any Extension of Credit under the Revolving Credit Facility thereafter requested shall be made under the FILO Tranche until the FILO Tranche availability no longer exceeds $0; (3) as between (x) the Revolving Credit Facility (other than the FILO Tranche), the Incremental ABL Term Loans (unless otherwise agreed in writing between the Administrative Agent and any Additional ABL Agent) and the Designated Hedging Agreements and Designated Cash Management Agreements and (y) the FILO Tranche, all proceeds from the liquidation or other realization of the Collateral (including ABL Priority Collateral) shall be applied, first to obligations owing under, or with respect to, the Revolving Credit Facility (other than the FILO Tranche), the Incremental ABL Term Loans (unless otherwise agreed in writing between the Administrative Agent and any Additional ABL Agent) and such Designated Hedging Agreements and Designated Cash Management Agreements and second to the FILO Tranche; (4) no Borrower may prepay Revolving Credit Loans under the FILO Tranche or terminate or reduce the commitments in respect thereof at any time that other Loans and/or Reimbursement Obligations (unless cash collateralized or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent) or Incremental ABL Term Loans (unless otherwise agreed in writing between the Administrative Agent and any Additional ABL Agent) are outstanding; (5) the Required Lenders (calculated as including Lenders under the Incremental Facilities and the FILO Tranche) shall, subject to the terms of the ABL/Term Loan Intercreditor Agreement, control exercise of remedies in respect of the Collateral and (6) no changes affecting the priority status of the Revolving Credit Facility (other than the FILO Tranche) or the Incremental ABL Term Loans (unless otherwise agreed in writing between the Administrative Agent and any Additional ABL Agent) vis-à-vis the FILO Tranche may be made without the consent of the Required Lenders under the Revolving Credit Facility, other than such changes which affect only the FILO Tranche, or only the Incremental ABL Term Loans, as the case may be.

(c) No Incremental Facility Increase shall become effective unless and until each of the following conditions have been satisfied:

(i) The Borrowers, the Administrative Agent, and any Additional Lender shall have executed and delivered a joinder to the Loan Documents (“ Lender Joinder Agreement ”) in substantially the form of Exhibit L to the Original Credit Agreement;

(ii) The Borrowers shall have paid such fees and other compensation to the Additional Lenders and to the Administrative Agent as the applicable Borrowers, the Administrative Agent and such Additional Lenders shall agree;

 

80


(iii) The applicable Borrowers shall deliver to the Administrative Agent and the Lenders an opinion or opinions, in form and substance reasonably satisfactory to the Administrative Agent from counsel to the applicable Borrowers reasonably satisfactory to the Administrative Agent and dated such date;

(iv) A Revolving Credit Note (to the extent requested) will be issued at the applicable Borrowers’ expense, to each such Additional Lender, to be in conformity with requirements of Subsection 2.1(d) (with appropriate modification) to the extent necessary to reflect the new Commitment of each Additional Lender;

(v) The Parent Borrower shall deliver a certificate certifying that (A) the representations and warranties made by the Parent Borrower and its Restricted Subsidiaries contained herein and in the other Loan Documents are true and correct in all material respects on and as of the Incremental Facility Closing Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and (B) no Specified Default has occurred and is continuing; and

(vi) The applicable Borrowers and Additional Lenders shall have delivered such other instruments, documents and agreements as the Administrative Agent may reasonably have requested in order to effectuate the documentation of the foregoing.

(d) (i) In the case of any Incremental Facility Increase constituting Incremental Revolving Commitments, the Administrative Agent shall promptly notify each Lender as to the effectiveness of such Incremental Facility Increase (with each date of such effectiveness being referred to herein as an “ Incremental Revolving Commitment Effective Date ”), and at such time (i) the Commitments under, and for all purposes of, this Agreement shall be increased by the aggregate amount of such Incremental Revolving Commitments, (ii) Schedule A shall be deemed modified, without further action, to reflect the revised Commitments and Commitment Percentages of the Lenders and (iii) this Agreement shall be deemed amended, without further action, to the extent necessary to reflect any such Incremental Revolving Commitments.

(ii) In the case of any Incremental Facility Increase, the Administrative Agent, the Additional Lenders and the Borrowers agree to enter into any amendment required to incorporate the addition of the Incremental Revolving Commitments and the Incremental ABL Term Loans, the pricing of the Incremental Revolving Commitments and the Incremental ABL Term Loans, the maturity date of the Incremental Revolving Commitments and the Incremental ABL Term Loans and such other amendments as may be necessary or appropriate in the reasonable opinion of the Administrative Agent and the Borrowers in connection therewith. The Lenders hereby irrevocably authorize the Administrative Agent to enter into such amendments.

(e) In connection with the Incremental Facility Increases hereunder, the Lenders and the Borrowers agree that, notwithstanding anything to the contrary in this Agreement, (i) the applicable Borrowers shall, in coordination with the Administrative Agent, (x) repay applicable outstanding Revolving Credit Loans of certain Lenders, and obtain applicable Revolving Credit Loans from certain other Lenders (including the Additional Lenders), or (y) take such other actions as reasonably may be required by the Administrative Agent to the extent necessary so that the Lenders effectively participate in each of the outstanding Revolving Credit Loans, as applicable, pro rata on the basis of their Commitment Percentages (determined after giving effect to any increase in the Commitments pursuant to this Subsection 2.6 ), and (ii) the applicable Borrowers shall pay to the Lenders any costs of the type referred to in Subsection 4.12 in connection with any repayment and/or Revolving Credit Loans required pursuant to the preceding clause (i). Without limiting the obligations of the Borrowers provided for in this Subsection 2.6 ,

 

81


the Administrative Agent and the Lenders agree that they will use commercially reasonable efforts to attempt to minimize the costs of the type referred to in Subsection 4.12 which the Borrowers would otherwise incur in connection with the implementation of an increase in the Commitments.

2.7 Refinancing Amendments .

(a) So long as no Specified Default exists or would arise therefrom, at any time after the Third Amendment Effective Date, the Borrowers may obtain, from any Lender, any Additional Lender or any other Person, Credit Agreement Refinancing Indebtedness in respect of the Facility (which for purposes of this clause (a) will be deemed to include any then outstanding (w) Other ABL Term Loans, (x) Incremental ABL Term Loans, (y) Other Revolving Credit Loans and (z) Loans provided against the Incremental Revolving Commitments, but will exclude the commitments in respect of the FILO Tranche unless (1) the Loans comprising the FILO Tranche are the only Loans outstanding and (2) the Commitments for the Revolving Credit Facility (excluding the FILO Tranche) have been terminated) in the form of (i) one or more Other ABL Term Loans or Other ABL Term Commitments, (ii) one or more Other Revolving Credit Loans or Other Revolving Credit Commitments, or (iii) in the case of the FILO Tranche, a new “first-in, last-out” tranche, as the case may be, in each case pursuant to a Refinancing Amendment. Each Tranche of Credit Agreement Refinancing Indebtedness incurred under this Subsection 2.7 shall be in an aggregate principal amount that is (x) not less than $15,000,000 in the case of Other ABL Term Loans or Other Revolving Credit Loans and (y) an integral multiple of $5,000,000 in excess thereof.

(b) The effectiveness of any Refinancing Amendment shall be subject to the satisfaction on the date thereof of each of the conditions set forth in Subsection 6.2(a) and 6.2(b) and, to the extent reasonably requested by the Administrative Agent, receipt by the Administrative Agent of legal opinions in form and substance reasonably satisfactory to the Administrative Agent from counsel to the applicable Borrowers reasonably satisfactory to the Administrative Agent. Any Refinancing Amendment may provide for the issuance of Letters of Credit for the account of the Borrowers, or the provision to the Borrowers of Swingline Loans, pursuant to any Other Revolving Credit Commitments established thereby, in each case on terms substantially equivalent to the terms applicable to Letters of Credit and Swingline Loans under the Commitments.

(c) The Administrative Agent shall promptly notify each Lender as to the effectiveness of each Refinancing Amendment. Each of the parties hereto hereby agrees that, upon the effectiveness of any Refinancing Amendment, this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Credit Agreement Refinancing Indebtedness incurred pursuant thereto (including any amendments necessary to treat the Loans and Commitments subject thereto as Other ABL Term Loans, Other Revolving Credit Loans, Other Revolving Credit Commitments and/or Other ABL Term Commitments). The Lenders hereby irrevocably authorize the Administrative Agent to enter into any Refinancing Amendment to effect such amendments to this Agreement and the other Loan Documents and such technical amendments as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower Representative, to effect the provisions of this Subsection 2.7 . In addition, if so provided in the relevant Refinancing Amendment and with the consent of each Issuing Lender, participations in Letters of Credit expiring on or after the Termination Date shall be partially or entirely reallocated from Lenders holding Commitments to Lenders holding extended revolving commitments in accordance with the terms of such Refinancing Amendment; provided , however , that such participation interests shall, upon receipt thereof by the relevant Lenders holding Commitments, be deemed to be participation interests in respect of such Commitments and the terms of such participation interests (including, without limitation, the commission applicable thereto) shall be adjusted accordingly.

 

82


2.8 Extension of Commitments .

(a) Notwithstanding anything to the contrary in this Agreement, pursuant to one or more offers (each, an “ Extension Offer ”) made from time to time by the Borrowers to all Revolving Credit Lenders of Commitments, with a like maturity date, or all lenders with ABL Term Loans, with a like maturity date, in each case on a pro rata basis (based on the aggregate outstanding principal amount of the applicable Commitments or ABL Term Loans, as applicable) and on the same terms to each such Lender, the Borrowers are hereby permitted to consummate from time to time transactions with individual Lenders that accept the terms contained in such Extension Offers to extend the maturity date of each such Lender’s Commitments or ABL Term Loans, as applicable, and otherwise modify the terms of such Commitments or ABL Term Loans pursuant to the terms of the relevant Extension Offer (including, without limitation, by increasing the interest rate or fees payable in respect of such Commitments (and related outstandings) or ABL Term Loans) (each, an “Extension,” and each group of Commitments or ABL Term Loans, as applicable, as so extended, as well as the original Commitments or ABL Term Loans (not so extended), as applicable, being a “tranche”; any Extended Revolving Commitments shall constitute a separate tranche of Commitments from the tranche of Commitments from which they were converted and any Extended ABL Term Loans shall constitute a separate tranche of ABL Term Loans from the tranche of ABL Term Loans from which they were converted), so long as the following terms are satisfied: (i) no Specified Default shall have occurred and be continuing at the time the offering document in respect of an Extension Offer is delivered to the Lenders, (ii) except as to interest rates, fees and final maturity (which shall be determined by the Borrowers and set forth in the relevant Extension Offer), (x) the Commitment of any Revolving Credit Lender that agrees to an extension with respect to such Commitment (an “ Extending Revolving Credit Lender ”) extended pursuant to an Extension (an “ Extended Revolving Commitment ”), and the related outstandings, shall be a Commitment (or related outstandings, as the case may be) with the same terms as the original Commitments (and related outstandings) and (y) the ABL Term Loans of any Lender that agrees to an extension with respect to such ABL Term Loans (an “ Extending ABL Term Lender ” and together with any Extending Revolving Credit Lender, if any, collectively, “ Extending Lenders ”) pursuant to an Extension (“ Extended ABL Term Loans ”) shall have the same terms as the original ABL Term Loans; provided that (x) subject to the provisions of Section 3 and Subsection 2.4 to the extent dealing with Letters of Credit and Swingline Loans which mature or expire after a maturity date when there exist Extended Revolving Commitments with a longer maturity date, all Letters of Credit and Swingline Loans shall be participated in on a pro rata basis by all Lenders with Commitments in accordance with their Commitment Percentage of the Commitments and all borrowings under Commitments and repayments thereunder shall be made on a pro rata basis (except for (A) payments of interest and fees at different rates on Extended Revolving Commitments (and related outstandings) and (B) repayments required upon the maturity date of the non-extending Commitments) and (y) at no time shall there be Commitments hereunder (including Extended Revolving Commitments and any original Commitments) which have more than two different maturity dates, unless otherwise agreed by the Administrative Agent and the Borrowers (including agreements as to additional administrative fees to be paid by the Borrowers), and (iii) any applicable Minimum Extension Condition shall be satisfied unless waived by the Borrowers.

(b) With respect to all Extensions consummated by the Borrowers pursuant to this Subsection 2.8 , (i) such Extensions shall not constitute optional or mandatory payments or prepayments for purposes of Subsection 4.4 and (ii) no Extension Offer is required to be in any minimum amount or any minimum increment, provided that the Borrowers may at their election specify as a condition (a “ Minimum Extension Condition ”) to consummating any such Extension that a minimum amount (to be determined and specified in the relevant Extension Offer in the Borrowers’ sole discretion and which may be waived by the Borrowers) of Commitments or ABL Term Loans, as applicable, of any or all applicable tranches be extended. The Administrative Agent and the Lenders hereby consent to the transactions contemplated by this Subsection 2.8 (including, for the avoidance of doubt, payment of any interest, fees or

 

83


premium in respect of any Extended Revolving Commitments or Extended ABL Term Loans, as applicable, on such terms as may be set forth in the relevant Extension Offer) and hereby waive the requirements of any provision of this Agreement (including, without limitation, Subsections 4.4 and 4.8 ) or any other Loan Document that may otherwise prohibit any such Extension or any other transaction contemplated by this Subsection 2.8 .

(c) No consent of any Lender or the Administrative Agent shall be required to effectuate any Extension, other than (A) the consent of each Lender agreeing to such Extension with respect to its Commitments or ABL Term Loans (or a portion thereof) and (B) with respect to any Extension of the Commitments, the consent of each Issuing Lender and the Swingline Lender, which consent shall not be unreasonably withheld, conditioned or delayed. All Extended Revolving Commitments and Extended ABL Term Loans and all obligations in respect thereof shall be Obligations under this Agreement and the other Loan Documents that are secured by the Collateral on a pari passu basis with all other applicable Obligations under this Agreement and the other Loan Documents. The Lenders hereby irrevocably authorize the Administrative Agent to enter into amendments to this Agreement and the other Loan Documents with the Borrowers as may be necessary in order to establish new tranches or sub-tranches in respect of Commitments or ABL Term Loans so extended, permit the repayment of non-extending Loans on the Termination Date and such technical amendments as may be necessary or appropriate in the reasonable opinion of the Administrative Agent and the Borrowers in connection therewith, in each case on terms consistent with this Subsection 2.8 .

(d) In connection with any Extension, the Borrowers shall provide the Administrative Agent at least five (5) Business Days’ (or such shorter period as may be agreed by the Administrative Agent) prior written notice thereof, and shall agree to such procedures (including, without limitation, regarding timing, rounding and other adjustments and to ensure reasonable administrative management of the credit facilities hereunder after such Extension), if any, as may be established by, or acceptable to, the Administrative Agent, in each case acting reasonably to accomplish the purposes of this Subsection 2.8 . The Parent Borrower may amend, revoke or replace an Extension Offer pursuant to procedures reasonably acceptable to the Administrative Agent at any time prior to the date (the “ Extension Offer Deadline ”) on which Lenders under the applicable tranche or tranches are requested to respond to the Extension Offer. Any Lender may revoke its offer to participate in the Extension (an “ Extension Election ”) at any time prior to 5:00 p.m. on the date that is two (2) Business Days prior to the Extension Offer Deadline, at which point the Extension Election becomes irrevocable (unless otherwise agreed by the Borrower). The revocation of an Extension Election prior to the Extension Offer Deadline shall not prejudice any Lender’s right to submit a new Extension Election prior to the Extension Offer Deadline.

(e) Following any Extension, with the consent of the Parent Borrower, any Non-Extending Lender may elect to have all or a portion of its existing Commitments or ABL Term Loans deemed to be an Extended Revolving Commitment or Extended ABL Term Loan, as applicable under the applicable extended tranche on any date (each date a “ Designation Date ”) prior to the maturity date or termination date, as applicable, of such extended tranche; provided that (i) such Lender shall have provided written notice to the Parent Borrower and the Administrative Agent at least ten (10) Business Days prior to such Designation Date (or such shorter period as the Administrative Agent may agree in its reasonable discretion) and (ii) no more than three (3) Designation Dates may occur in any one-year period without the written consent of the Administrative Agent. Following a Designation Date, the existing Commitments or ABL Term Loans, as applicable, held by such Lender so elected to be extended will be deemed to be an Extended Revolving Commitment or Extended ABL Term Loan, as applicable, and any existing Commitments or ABL Term Loans, as applicable, held by such Lender not elected to be extended, if any, shall continue to be existing Commitments or ABL Term Loans, as applicable.

 

84


SECTION 3

Letters of Credit

3.1 L/C Commitment .

(a) Subject to the terms and conditions hereof, each Issuing Lender, in reliance on the agreements of the other Revolving Credit Lenders set forth in Subsection 3.4(a) , agrees to continue under this Agreement for the account of the Borrowers the Existing Letters of Credit issued by it and to issue letters of credit (the letters of credit issued on and after the Third Amendment Effective Date pursuant to this Section 3 , together with the Existing Letters of Credit, collectively, the “ Letters of Credit ”) for the account of the applicable Borrower or (if required by the applicable Issuing Lender, so long as the Borrower Representative, on account of the Borrowers, is a co-applicant and jointly and severally liable thereunder) any Subsidiary or any Related Corporation on any Business Day during the Commitment Period but in no event later than the fifth (5th) day prior to the Termination Date in such form as may be approved from time to time by the Issuing Lender; provided that no Letter of Credit shall be issued if, after giving effect to such issuance, (i) the aggregate Extensions of Credit to the Borrowers would exceed the applicable limitations set forth in Subsection 2.1 , (ii) the L/C Obligations in respect of Letters of Credit would exceed $300,000,000 or (iii) the Aggregate Outstanding Credit of all the Revolving Credit Lenders would exceed the Commitments of all the Revolving Credit Lenders then in effect; provided , further , that no Issuing Lender shall be required to (but may, in its sole discretion) issue, renew, amend or extend any Letter of Credit if (x) after giving effect thereto, the aggregate L/C Obligations in respect of Letters of Credit issued by such Issuing Lender would exceed such Issuing Lender’s Letter of Credit Sublimit or (y) in the case of Barclays and Deutsche Bank AG New York Branch, such Letter of Credit is a Commercial L/C.

(b) Each Letter of Credit shall be denominated in Dollars and shall be either (i) a standby letter of credit issued to support obligations of the Parent Borrower or any of its Restricted Subsidiaries, or any Related Corporation, contingent or otherwise, which finance or otherwise arise in connection with the working capital and business needs of the Parent Borrower, its Restricted Subsidiaries or any Related Corporation, and for general corporate purposes, of the Parent Borrower, any of its Restricted Subsidiaries or any Related Corporation (a “ Standby Letter of Credit ”), or (ii) a commercial letter of credit in respect of the purchase of goods or services by the Parent Borrower, any of its Restricted Subsidiaries or any Related Corporation (a “ Commercial L/C ”), and unless otherwise agreed by the applicable Issuing Lender and, in the case of clause (B) below, the Administrative Agent, expire no later than the earlier of (A) one year after its date of issuance and (B) the fifth (5th) Business Day prior to the Termination Date; provided that, notwithstanding any extension of the Termination Date pursuant to Subsection 2.8 , unless otherwise agreed, no Issuing Lender shall be obligated to issue a Letter of Credit that expires beyond the non-extended Termination Date.

(c) Notwithstanding anything to the contrary in Subsection 3.1(b) , if the Borrower Representative so requests in any L/C Request, the applicable Issuing Lender may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic renewal provisions (each, an “ Auto-Renewal L/C ”); provided that any such Auto-Renewal L/C must permit the applicable Issuing Lender to prevent any such renewal at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by the applicable Issuing Lender, the applicable Borrower shall not be required to make a specific request to such Issuing Lender for any such renewal. Once an Auto-Renewal L/C has been issued, the Lenders shall be deemed to have authorized (but may not require) the applicable Issuing Lender to permit the renewal of such Letter of Credit at any time to an extended expiry date not later than the earlier of (i)

 

85


one year from the date of such renewal and (ii) the fifth (5th) Business Day prior to the Termination Date; provided that such Issuing Lender shall not permit any such renewal if (x) such Issuing Lender has determined that it would have no obligation at such time to issue such Letter of Credit in its renewed form under the terms hereof (by reason of the provisions of Subsection 3.2(c) or otherwise), or (y) it has received notice on or before the day that is two Business Days before the date which has been agreed upon pursuant to the proviso of the first sentence of this clause (c), (1) from the Administrative Agent that any Lender directly affected thereby has elected not to permit such renewal or (2) from the Administrative Agent, any Lender or Borrower that one or more of the applicable conditions specified in Section 6 are not then satisfied, or that the issuance of such Letter of Credit would violate Subsection 3.1 .

(d) Each Letter of Credit issued by an Issuing Lender shall be deemed to constitute a utilization of the Commitments, and shall be participated in (as more fully described in the following Subsection 3.4 ) by the Lenders in accordance with their respective Commitment Percentages. All Letters of Credit issued hereunder shall be denominated in Dollars and shall be issued for the account of the applicable Borrower or (if required by the applicable Issuing Lender, so long as the Borrower Representative, on behalf of the Borrowers, is a co-applicant and jointly and severally liable thereunder) any Subsidiary or any Related Corporation.

(e) Unless otherwise agreed by the applicable Issuing Lender and the Parent Borrower, each Letter of Credit shall be governed by, and shall be construed in accordance with, the laws of the State of New York, and to the extent not prohibited by such laws, the ISP shall apply to each standby Letter of Credit and the Uniform Customs shall apply to each Commercial L/C. The ISP shall not in any event apply to this Agreement.

3.2 Procedure for Issuance of Letters of Credit .

(a) The Borrower Representative may, from time to time during the Commitment Period but in no event later than the 30th day prior to the Termination Date, request that an Issuing Lender issue a Letter of Credit by delivering to such Issuing Lender and the Administrative Agent at its address for notices specified herein, an L/C Request therefor in the form of Exhibit J to the Original Credit Agreement (completed to the reasonable satisfaction of such Issuing Lender), and such other certificates, documents and other papers and information as such Issuing Lender may reasonably request. Upon receipt of any L/C Request, such Issuing Lender will process such L/C Request and the certificates, documents and other papers and information delivered to it in connection therewith in accordance with its customary procedures and shall promptly issue the Letter of Credit requested thereby (but in no event shall an Issuing Lender be required, unless otherwise agreed to by such Issuing Lender, to issue any Letter of Credit earlier than five (5) Business Days after its receipt of the L/C Request therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed by such Issuing Lender and the Borrower Representative. The applicable Issuing Lender shall furnish a copy of such Letter of Credit to the Borrower Representative promptly following the issuance thereof. No Issuing Lender shall amend, cancel or waive presentation of any Letter of Credit, or replace any lost, mutilated or destroyed Letter of Credit, without the prior written consent of the Borrower Representative. Upon the issuance of any Letter of Credit or amendment, renewal, extension or modification to a Letter of Credit, the applicable Issuing Lender shall promptly notify the Administrative Agent, who shall promptly notify each Lender, thereof, which notice shall be accompanied by a copy of such Letter of Credit or amendment, renewal, extension or modification to a Letter of Credit and the amount of such Lender’s respective participation in such Letter of Credit pursuant to Subsection 3.4 . If the applicable Issuing Lender is not the same person as the Administrative Agent, on the first Business Day of each calendar month, such Issuing Lender shall provide to the Administrative Agent a report listing all outstanding Letters of Credit and the amounts and beneficiaries thereof and the Administrative Agent shall promptly provide such report to each Lender.

 

86


(b) The making of each request for a Letter of Credit by the Borrower Representative shall be deemed to be a representation and warranty by the Borrower Representative that such Letter of Credit may be issued in accordance with, and will not violate the requirements of, Subsection 3.1 . Unless the respective Issuing Lender has received notice from the Required Lenders before it issues a Letter of Credit that one or more of the applicable conditions specified in Section 6 are not then satisfied, or that the issuance of such Letter of Credit would violate Subsection 3.1 , then such Issuing Lender may issue the requested Letter of Credit for the account of the applicable Borrower, Subsidiary or Related Corporation in accordance with such Issuing Lender’s usual and customary practices.

(c) No Issuing Lender shall be under any obligation to issue any Letter of Credit if

(i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Lender from issuing such Letter of Credit, or any Requirement of Law applicable to such Issuing Lender or any request or directive (whether or not having the force of law) from any banking regulatory authority with jurisdiction over such Issuing Lender shall prohibit the issuance of letters of credit generally; or

(ii) the issuance of such Letter of Credit would violate one or more existing (as of the Third Amendment Effective Date) policies of such Issuing Lender consistently applied by such Issuing Lender to borrowers generally.

3.3 Fees, Commissions and Other Charges .

(a) Each Borrower agrees to pay to the Administrative Agent a letter of credit commission with respect to each Letter of Credit issued by such Issuing Lender on its behalf, computed for the period from and including the date of issuance of such Letter of Credit through to the expiration date of such Letter of Credit, computed at a rate per annum equal to the Applicable Margin then in effect for Eurodollar Loans calculated based upon the actual number of days elapsed over a 360-day year, of the aggregate amount available to be drawn under such Letter of Credit, payable quarterly in arrears on each L/C Fee Payment Date with respect to such Letter of Credit and on the Termination Date or such earlier date as the Commitments shall terminate as provided herein. Such commission shall be payable to the Administrative Agent for the account of the applicable Revolving Credit Lenders to be shared ratably among them in accordance with their respective Commitment Percentages. Each Borrower shall pay to the relevant Issuing Lender with respect to each Letter of Credit a fee equal to 1/8 of 1.0% per annum of the aggregate amount available to be drawn under such Letter of Credit or such other amounts as may be agreed by such Borrower and such Issuing Lender, payable quarterly in arrears on each L/C Fee Payment Date with respect to such Letter of Credit and on the Termination Date or such other date as the Commitments shall terminate calculated based upon the actual number of days elapsed over a 360-day year. Such commissions and fees shall be nonrefundable. Such fees and commissions shall be payable in Dollars.

(b) In addition to the foregoing commissions and fees, each Borrower agrees to pay amounts necessary to reimburse the applicable Issuing Lender for such normal and customary costs and expenses as are incurred or charged by such Issuing Lender in issuing, effecting payment under, amending or otherwise administering any Letter of Credit issued by such Issuing Lender within ten (10) days after demand therefor.

(c) The Administrative Agent shall, promptly following any receipt thereof, distribute to the applicable Issuing Lender and the applicable Lenders all commissions and fees received by the Administrative Agent for their respective accounts pursuant to this Subsection 3.3 .

 

87


3.4 L/C Participations .

(a) By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the applicable Issuing Lender or the Lenders, each Issuing Lender hereby irrevocably grants to each Lender, and each Lender hereby acquires from such Issuing Lender, a participation in such Letter of Credit equal to such Lender’s Commitment Percentage of the aggregate amount available to be drawn under such Letter of Credit. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, or expiration, termination or cash collateralization of any Letter of Credit and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. All calculations of the Lenders’ Commitment Percentages shall be made from time to time by the Administrative Agent, which calculations shall be conclusive absent manifest error.

(b) If the Borrowers fail to reimburse the applicable Issuing Lender on the due date as provided in Subsection 3.5 , such Issuing Lender shall notify the Administrative Agent and the Administrative Agent shall notify each Lender of the applicable L/C Disbursement, the payment then due from the Borrowers in respect thereof and such Lender’s Commitment Percentage thereof. Each Lender shall pay by wire transfer of immediately available funds to the Administrative Agent not later than 2:00 P.M., New York City time, on such date (or, if such Lender shall have received such notice later than 12:00 P.M., New York City time, on any day, not later than 11:00 A.M., New York City time, on the next succeeding Business Day), an amount equal to such Lender’s Commitment Percentage of the unreimbursed L/C Disbursement in the same manner as provided in Subsection 2.2 with respect to Loans made by such Lender, and the Administrative Agent will promptly pay to the applicable Issuing Lender the amounts so received by it from the Lenders. The Administrative Agent will promptly pay to the applicable Issuing Lender any amounts received by it from the Borrowers pursuant to the above clause (a) prior to the time that any Lender makes any payment pursuant to the preceding sentence and any such amounts received by the Administrative Agent from the Borrowers thereafter will be promptly remitted by the Administrative Agent to the Lender that shall have made such payments and to such Issuing Lender, as appropriate.

(c) If any Lender shall not have made its Commitment Percentage of such L/C Disbursement available to the Administrative Agent as provided above, each of such Lender and the Borrowers severally agrees to pay interest on such amount, for each day from and including the date such amount is required to be paid in accordance with the foregoing to but excluding the date such amount is paid, to the Administrative Agent for the account of the applicable Issuing Lender at (i) in the case of Borrower, the rate per annum set forth in Subsection 3.5(b) and (ii) in the case of such Lender, at a rate determined by the Administrative Agent in accordance with banking industry rules or practices on interbank compensation.

3.5 Reimbursement Obligation of the Borrowers .

(a) Each Issuing Lender shall promptly notify the Borrower Representative of any presentation of a draft under any Letter of Credit. Each Borrower hereby agrees to reimburse each Issuing Lender, upon receipt by the Borrower Representative of notice from the applicable Issuing Lender of the date and amount of a draft presented under any Letter of Credit issued on its behalf and paid by such Issuing Lender (an “ L/C Disbursement ”), for the amount of such draft so paid and any taxes, fees, charges or other costs or expenses reasonably incurred by such Issuing Lender in connection with such payment. Each such payment shall be made to the applicable Issuing Lender, at its address for notices specified herein, in Dollars in immediately available funds, no later than 3:00 P.M., New York City time, on the date which is

 

88


one (1) Business Day (or, if the Facility is fully drawn on such date and the applicable Borrower does not have sufficient cash on hand to make such payment, two (2) Business Days) after the date on which the Borrower Representative receives such notice, if received prior to 11:00 A.M., New York City Time, on a Business Day and otherwise, no later than 3:00 P.M., New York City time, on the next succeeding Business Day; provided that the Borrowers may, subject to the conditions to borrowing set forth herein, request in accordance with Subsection 2.2 that such payment be financed with ABR Loans or Swingline Loans in an equivalent amount and, to the extent so financed, the Borrowers’ obligation to make such payment shall be discharged and replaced by the resulting ABR Loans or Swingline Loans.

(b) Interest shall be payable on any and all amounts remaining unpaid by the Borrowers under this Subsection 3.5(b) from the date the draft presented under the affected Letter of Credit is paid to the date on which the applicable Borrower is required to pay such amounts pursuant to clause (a) above at the rate which would then be payable on any outstanding ABR Loans that are Revolving Credit Loans and (ii) thereafter until payment in full at the rate which would be payable on any outstanding ABR Loans that are Revolving Credit Loans which were then overdue.

3.6 Obligations Absolute . The Reimbursement Obligations of Borrowers as provided in Subsection 3.5 shall be absolute, unconditional and irrevocable, and shall be paid and performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein; (ii) any draft or other document presented under a Letter of Credit being proved to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; (iii) payment by any Issuing Lender under a Letter of Credit against presentation of a draft or other document that fails to comply with the terms of such Letter of Credit; (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 3 , constitute a legal or equitable discharge of, or provide a right of setoff against, the obligations of any Borrower hereunder; (v) the fact that a Default shall have occurred and be continuing; or (vi) any material adverse change in the business, property, results of operations, prospects or condition, financial or otherwise, of the Parent Borrower and its Restricted Subsidiaries. None of the Agents, the Lenders, the Issuing Lenders or any of their affiliates shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Lenders; provided that the foregoing shall not be construed to excuse any Issuing Lender from liability to the Borrowers to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrowers to the extent permitted by applicable Requirements of Law) suffered by the Borrowers that are caused by such Issuing Lender’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the applicable Issuing Lender (as finally determined by a court of competent jurisdiction), such Issuing Lender shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the applicable Issuing Lender may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

89


3.7 L/C Disbursements . The applicable Issuing Lender shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. Such Issuing Lender shall promptly give written notice to the Administrative Agent and the Borrower Representative of such demand for payment and whether such Issuing Lender has made or will make an L/C Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve Borrower of its Reimbursement Obligation to such Issuing Lender and the Lenders with respect to any such L/C Disbursement (other than with respect to the timing of such Reimbursement Obligation set forth in Subsection 3.5 ).

3.8 L/C Request . In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any L/C Request or other application or agreement submitted by any Borrower, any Subsidiary or any Related Corporation to, or entered into by any Borrower, any Subsidiary or any Related Corporation with, any Issuing Lender relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

3.9 Cash Collateralization . If the maturity of the Loans has been accelerated, the Borrowers shall then deposit on terms and in accounts satisfactory to the Security Agents, in the name of the Collateral Agent and for the benefit of the Revolving Credit Lenders, an amount in cash equal to the L/C Obligations as of such date plus any accrued and unpaid interest thereon. Funds so deposited shall be applied by the Administrative Agent to reimburse the applicable Issuing Lender for L/C Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be applied to satisfy other Obligations of the Borrowers under this Agreement.

3.10 Additional Issuing Lenders . The Borrower Representative may, at any time and from time to time with the consent of the Administrative Agent (which consent shall not be unreasonably withheld, conditioned or delayed) and such Lender, designate one or more additional Lenders to act as an issuing lender under the terms of this Agreement. Any Lender designated as an issuing lender pursuant to this Subsection 3.10 shall be deemed to be an “ Issuing Lender ” (in addition to being a Lender) in respect of Letters of Credit issued or to be issued by such Lender, and, with respect to such Letters of Credit, such term shall thereafter apply to the other Issuing Lender or Issuing Lenders and such Lender. The Administrative Agent shall notify the Lenders of any such additional Issuing Lender. If at any time there is more than one Issuing Lender hereunder, the Borrower Representative may, in its discretion, select which Issuing Lender is to issue any particular Letter of Credit.

3.11 Resignation or Removal of the Issuing Lender . Any Issuing Lender may resign as Issuing Lender hereunder at any time upon at least thirty (30) days’ prior notice to the Lenders, the Administrative Agent and the Borrower Representative. Any Issuing Lender may be replaced at any time by written agreement among the Borrower Representative, each Agent, the replaced Issuing Lender and the successor Issuing Lender. The Administrative Agent shall notify the Lenders of any such resignation or replacement of an Issuing Lender. At the time any such resignation of an Issuing Lender shall become effective, the Borrowers shall pay all unpaid fees accrued for the account of the retiring Issuing Lender pursuant to Subsection 3.3 . From and after the effective date of any such resignation or replacement, (i) the successor Issuing Lender shall have all the rights and obligations of an Issuing Lender under this Agreement with respect to Letters of Credit to be issued by it thereafter and (ii) references herein to the term “Issuing Lender” shall be deemed to refer to such successor or to any previous Issuing Lender, or to such successor and all previous Issuing Lenders, as the context shall require. After the resignation or replacement of an Issuing Lender, the retiring or replaced Issuing Lender shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Lender under this Agreement with respect to Letters of Credit issued by it prior to such resignation or replacement, but shall not be required to issue additional Letters of Credit.

 

90


SECTION 4

General Provisions Applicable to Loans and Letters of Credit

4.1 Interest Rates and Payment Dates .

(a) Each Eurodollar Loan shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Adjusted LIBOR Rate determined for such day plus the Applicable Margin in effect for such day.

(b) Each ABR Loan shall bear interest for each day that it is outstanding at a rate per annum equal to the Alternate Base Rate in effect for such day plus the Applicable Margin in effect for such day.

(c) If all or a portion of (i) the principal amount of any Loan, (ii) any interest payable thereon or (iii) any commitment fee, letter of credit commission, letter of credit fee or other amount payable hereunder shall not be paid when due (whether at the Stated Maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per annum which is (x) in the case of overdue principal, the rate that would otherwise be applicable thereto pursuant to the relevant foregoing provisions of this Subsection 4.1 plus 2.00%, (y) in the case of overdue interest, the rate that would be otherwise applicable to principal of the related Loan pursuant to the relevant foregoing provisions of this Subsection 4.1 (other than clause (x) above) plus 2.00% and (z) in the case of, fees, commissions or other amounts, the rate described in clause (b) of this Subsection 4.1 for ABR Loans that are Revolving Credit Loans accruing interest at the Alternate Base Rate plus 2.00%, in each case from the date of such nonpayment until such amount is paid in full (as well after as before any judgment relating thereto).

(d) Interest shall be payable by in arrears on each Interest Payment Date, provided that interest accruing pursuant to clause (c) of this Subsection   4.1 shall be payable from time to time on demand.

(e) It is the intention of the parties hereto to comply strictly with applicable usury laws; accordingly, it is stipulated and agreed that the aggregate of all amounts which constitute interest under applicable usury laws, whether contracted for, charged, taken, reserved, or received, in connection with the indebtedness evidenced by this Agreement or any Notes, or any other document relating or referring hereto or thereto, now or hereafter existing, shall never exceed under any circumstance whatsoever the maximum amount of interest allowed by applicable usury laws.

4.2 Conversion and Continuation Options .

(a) Subject to its obligations pursuant to Subsection 4.12(c) , the applicable Borrowers may elect from time to time to convert outstanding Revolving Credit Loans from Eurodollar Loans to ABR Loans by the Borrower Representative giving the Administrative Agent irrevocable notice of such election prior to 1:00 P.M., New York City time two Business Days prior to such election (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion). The Borrowers may elect from time to time to convert outstanding Revolving Credit Loans from ABR Loans to Eurodollar Loans by the Borrower Representative giving the Administrative Agent irrevocable notice of such election prior to 1:00 P.M., New York City time at least three (3) Business Days prior to such election (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion). Any such notice of conversion to Eurodollar Loans shall specify the length of the initial Interest Period or Interest Periods therefor. Upon receipt of any such notice the Administrative Agent shall promptly notify each affected Lender thereof. All or any part of outstanding Eurodollar Loans or ABR Loans may be converted

 

91


as provided herein, provided that (i) (unless the Required Lenders otherwise consent) no Loan may be converted into a Eurodollar Loan when any Default or Event of Default has occurred and is continuing and, in the case of any Default (other than any Default under Subsection 9.1(f) ), the Administrative Agent has given notice to the Parent Borrower that no such conversions may be made and (ii) no Loan may be converted into a Eurodollar Loan after the date that is one month prior to the Termination Date.

(b) Any Eurodollar Loan may be continued as such upon the expiration of the then current Interest Period with respect thereto by the Borrower Representative giving notice to the Administrative Agent of the length of the next Interest Period to be applicable to such Loan, determined in accordance with the applicable provisions of the term “Interest Period” set forth in Subsection 1.1 , provided that no Eurodollar Loan may be continued as such (i) (unless the Required Lenders otherwise consent) when any Default or Event of Default has occurred and is continuing and, in the case of any Default (other than any Default under Subsection 9.1(f) ), the Administrative Agent has given notice to the Borrower Representative that no such continuations may be made or (ii) after the date that is one month prior to the applicable Termination Date, and provided , further , that if the Borrower Representative shall fail to give any required notice as described above in this clause (b) or if such continuation is not permitted pursuant to the preceding proviso such Eurodollar Loans shall be automatically converted to ABR Loans on the last day of such then expiring Interest Period. Upon receipt of any such notice of continuation pursuant to this Subsection 4.2(b) , the Administrative Agent shall promptly notify each affected Lender thereof.

4.3 Minimum Amounts; Maximum Sets . All borrowings, conversions and continuations of Loans hereunder and all selections of Interest Periods hereunder shall be in such amounts and be made pursuant to such elections so that, after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each Set shall be equal to $1,000,000 or a whole multiple of $500,000 in excess thereof and so that there shall not be more than 15 Sets at any one time outstanding.

4.4 Optional and Mandatory Prepayments .

(a) The Borrowers may at any time and from time to time prepay the Loans, in whole or in part, subject to Subsection 4.12 , without premium or penalty, upon notice by the Borrower Representative to the Administrative Agent prior to 1:00 P.M., New York City time at least three (3) Business Days (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion) prior to the date of prepayment (in the case of Eurodollar Loans), prior to 12:00 P.M., New York City time at least one Business Day (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion) prior to the date of prepayment (in the case of ABR Loans other than Swingline Loans) or same-day notice by the Borrower Representative to the Administrative Agent (in the case of (x) Swingline Loans and (y) Reimbursement Obligations outstanding in Dollars). Such notice shall be irrevocable except as provided in Subsection 4.4(g) . Such notice shall specify, in the case of any prepayment of Loans, the date and amount of prepayment and whether the prepayment is (i) of Revolving Credit Loans or Swingline Loans, or a combination thereof, and (ii) of Eurodollar Loans or ABR Loans, or a combination thereof, and, in each case if a combination thereof, the principal amount allocable to each. Any such notice may state that such notice is conditioned upon the occurrence or non-occurrence of any event specified therein (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Borrower (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Upon the receipt of any such notice the Administrative Agent shall promptly notify each affected Lender thereof. If any such notice is given, the amount specified in such notice shall (subject to Subsection 4.4(g) ) be due and payable on the date specified therein, together with (if a Eurodollar Loan is prepaid other than at the end of the Interest Period applicable thereto) any amounts payable pursuant to Subsection 4.12 , the Revolving Credit Loans and the Reimbursement Obligations pursuant to this Section shall (unless the Parent Borrower otherwise directs) be applied, first , to payment of the Swingline Loans then outstanding, and second , to payment of the Revolving

 

92


Credit Loans then outstanding, and third , to payment of any Reimbursement Obligations then outstanding. Partial prepayments pursuant to this Subsection 4.4(a) shall be in multiples of $1,000,000, as applicable, provided that, notwithstanding the foregoing, any Loan may be prepaid in its entirety.

(b) On any day (other than during an Agent Advance Period) on which the Aggregate Lender Exposure or the unpaid balance of Extensions of Credit to, or for the account of, the Borrowers exceeds the Borrowing Base (based on the Borrowing Base Certificate last delivered) or the total Commitments at such time, the Borrowers shall prepay on such day the principal of outstanding Revolving Credit Loans in an amount equal to such excess. If, after giving effect to the prepayment of all outstanding Revolving Credit Loans, the aggregate amount of the L/C Obligations exceeds the Borrowing Base at such time (based on the Borrowing Base Certificate last delivered), the Borrowers shall pay to the Administrative Agent on such day an amount of cash and/or Cash Equivalents equal to the amount of such excess (up to a maximum amount equal to such L/C Obligations at such time), such cash and/or Cash Equivalents to be held as security for all obligations of the Borrowers to the Issuing Lenders and the Revolving Credit Lenders hereunder in a cash collateral account to be established by, and under the sole dominion and control of, the Administrative Agent.

(c) The Borrowers shall prepay all Swingline Loans then outstanding simultaneously with each borrowing by them of Revolving Credit Loans.

(d) Prepayments pursuant to Subsection 4.4(b) shall be applied, first , to prepay Swingline Loans then outstanding, second , to prepay Revolving Credit Loans then outstanding, third , to pay any Reimbursement Obligations then outstanding and, last , to cash collateralize all L/C Obligations on terms reasonably satisfactory to the Administrative Agent.

(e) For avoidance of doubt, the Commitments shall not be correspondingly reduced by the amount of any prepayments of Revolving Credit Loans, payments of Reimbursement Obligations and cash collateralizations of L/C Obligations, in each case, made under Subsections   4.4(b) .

(f) Notwithstanding the foregoing provisions of this Subsection 4.4 , if at any time any prepayment of the Loans pursuant to Subsection 4.4(a) or 4.4(b) would result, after giving effect to the procedures set forth in this Agreement, in any Borrower incurring breakage costs under Subsection 4.12 as a result of Eurodollar Loans being prepaid other than on the last day of an Interest Period with respect thereto, then, the relevant Borrower may, so long as no Default or Event of Default shall have occurred and be continuing, in its sole discretion, initially (i) deposit a portion (up to 100.0%) of the amounts that otherwise would have been paid in respect of such Eurodollar Loans with the Administrative Agent (which deposit must be equal in amount to the amount of such Eurodollar Loans not immediately prepaid), to be held as security for the obligations of such Borrowers to make such prepayment pursuant to a cash collateral agreement to be entered into on terms reasonably satisfactory to the Administrative Agent with such cash collateral to be directly applied upon the first occurrence thereafter of the last day of an Interest Period with respect to such Eurodollar Loans (or such earlier date or dates as shall be requested by such Borrower) or (ii) make a prepayment of the Revolving Credit Loans in accordance with Subsection 4.4(a) with an amount equal to a portion (up to 100.0%) of the amounts that otherwise would have been paid in respect of such Eurodollar Loans (which prepayment, together with any deposits pursuant to clause (i) above, must be equal in amount to the amount of such Eurodollar Loans not immediately prepaid); provided that, notwithstanding anything in this Agreement to the contrary, none of the Borrowers may request any Extension of Credit under the Commitments that would reduce Excess Availability to an amount that is less than the amount of such prepayment until the related portion of such Eurodollar Loans have been prepaid upon the first occurrence thereafter of the last day of an Interest Period with respect to such Eurodollar Loans; provided that, in the case of either clause (i) or (ii) above, such unpaid Eurodollar Loans shall continue to bear interest in accordance with Subsection 4.1 until such unpaid Eurodollar Loans or the related portion of such Eurodollar Loans, as the case may be, have or has been prepaid.

 

93


(g) If a notice of prepayment in connection with a repayment of all outstanding Loans is given in connection with a conditional notice of termination of Commitments as contemplated by Subsection 2.3 , then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Subsection 2.3 .

(h) Notwithstanding anything to the contrary herein, this Subsection 4.4 may be amended (and the Lenders hereby irrevocably authorize the Administrative Agent to enter into any such amendments) to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new classes or tranches of loans added pursuant to Subsections 2.6 , 2.7 and 2.8 , as applicable.

4.5 Commitment Fees; Administrative Agent s Fee; Other Fees .

(a) Each Borrower agrees to pay to the Administrative Agent, for the account of each Lender, a commitment fee for the period from and including the first day of the Commitment Period to the Termination Date, computed at the Applicable Commitment Fee Rate on the average daily amount of the Unutilized Commitment of such Revolving Credit Lender during the period for which payment is made, payable quarterly in arrears on the last Business Day of each March, June, September and December and on the Termination Date or such earlier date as the Commitments shall terminate as provided herein, commencing on the first such date to occur after the Third Amendment Effective Date.

(b) Each Borrower agrees to pay to the Administrative Agent the fees set forth in the fourth paragraph under the heading “ABL Facilities Fees” of the Fee Letter.

4.6 Computation of Interest and Fees .

(a) Interest (other than interest based on the Prime Rate) shall be calculated on the basis of a 360-day year for the actual days elapsed; and commitment fees and interest based on the Prime Rate shall be calculated on the basis of a 365 day year (or 366-day year, as the case may be) for the actual days elapsed. The Administrative Agent shall as soon as practicable notify the Parent Borrower and the affected Lenders of each determination of an Adjusted LIBOR Rate. Any change in the interest rate on a Loan resulting from a change in the Alternate Base Rate or the Statutory Reserves shall become effective as of the opening of business on the day on which such change becomes effective. The Administrative Agent shall as soon as practicable notify the Parent Borrower and the affected Lenders of the effective date and the amount of each such change in interest rate.

(b) Each determination of an interest rate by the Administrative Agent pursuant to any provision of this Agreement shall be conclusive and binding on each of the Borrowers and the Lenders in the absence of manifest error. The Administrative Agent shall, at the request of the Borrower Representative or any Lender, deliver to the Borrower Representative or such Lender a statement showing in reasonable detail the calculations used by the Administrative Agent in determining any interest rate pursuant to Subsection 4.1 .

4.7 Inability to Determine Interest Rate . If prior to the first day of any Interest Period, the Administrative Agent shall have determined (which determination shall be conclusive and binding upon each of the Borrowers) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Adjusted LIBOR Rate with respect to any Eurodollar Loan for such Interest Period (the “ Affected Eurodollar Rate ”), the Administrative Agent shall give telecopy

 

94


or telephonic notice thereof to the Parent Borrower and the Lenders as soon as practicable thereafter. If such notice is given (a) any Eurodollar Loans the rate of interest applicable to which is based on the Affected Eurodollar Rate requested to be made on the first day of such Interest Period shall be made as ABR Loans and (b) any Loans that were to have been converted on the first day of such Interest Period to or continued as Eurodollar Loans the rate of interest applicable to which is based upon the Affected Eurodollar Rate shall be converted to or continued as ABR Loans. Until such notice has been withdrawn by the Administrative Agent, no further Eurodollar Loans the rate of interest applicable to which is based upon the Affected Eurodollar Rate shall be made or continued as such, nor shall any of the Borrowers have the right to convert ABR Loans to Eurodollar Loans the rate of interest applicable to which is based upon the Affected Eurodollar Rate.

4.8 Pro Rata Treatment and Payments .

(a) Except as expressly otherwise provided herein, each borrowing of Revolving Credit Loans (other than Swingline Loans) by any of the applicable Borrowers from the Lenders hereunder shall be made, each payment by any of the Borrowers on account of any commitment fee in respect of the Commitments hereunder shall be allocated by the Administrative Agent and any reduction of the Commitments of the Lenders, as applicable, shall be allocated by the Administrative Agent in each case pro rata according to the Commitment Percentage of the Lenders. Except as expressly otherwise provided herein, each payment (including each prepayment (but excluding payments made pursuant to Subsection 2.6 , 2.7 , 2.8 , 4.5(b) , 4.9 , 4.10 , 4.11 , 4.12 , 4.13(d) , 4.15(c), 8.6(b)(ii) (to the extent declined by a Lender or the Administrative Agent) or 11.1(g) )) by any of the applicable Borrowers on account of principal of and interest on any Revolving Credit Loans shall be allocated by the Administrative Agent pro rata according to the respective outstanding principal amounts of such Revolving Credit Loans then held by the relevant Revolving Credit Lenders, and each payment on account of principal of and interest on any loans made pursuant to any Tranche established after the date of this Agreement shall be allocated pro rata (or as may otherwise be provided for in the applicable amendment to this Agreement relating to such Tranche) among the Lenders with Incremental Revolving Commitments in respect thereof or with participations in such Tranche (in each case subject to any limitations on non-pro rata payments otherwise provided for in Subsection 2.6(b)(i)(E) or 2.6(b)(ii) ). All payments (including prepayments) to be made by any of the Borrowers hereunder, whether on account of principal, interest, fees, Reimbursement Obligations or otherwise, shall be made without set-off or counterclaim and shall be made on or prior to the time expressly required hereunder or under such other Loan Document for such payment (or, if no such time is expressly required, prior to 2:00 P.M., New York City time), on the due date thereof to the Administrative Agent for the account of the Lenders holding the relevant Loans, the Lenders, the Administrative Agent, or the Other Representatives, as the case may be, at the Administrative Agent’s office specified in Subsection 11.2 , in Dollars, and in immediately available funds. Payments received by the Administrative Agent after such time shall, at the option of the Administrative Agent, be deemed to have been received on the next Business Day. The Administrative Agent shall distribute such payments to such Lenders or Other Representatives, as the case may be, if any such payment is received prior to 2:00 P.M., New York City time, on a Business Day, in like funds as received prior to the end of such Business Day and otherwise the Administrative Agent shall distribute such payment to such Lenders or Other Representatives, as the case may be, on the next succeeding Business Day. If any payment hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day, the maturity of such payment shall be extended to the next succeeding Business Day, and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension. If any payment on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity of such payment shall be extended to the next succeeding Business Day (and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension) unless the result of such extension would be to extend such payment into another calendar month, in which event such payment shall be made on the immediately preceding Business Day. This Subsection 4.8(a) may be amended

 

95


in accordance with Subsection 11.1(d) to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new classes or tranches of loans added pursuant to Subsections 2.6 , 2.7 and 2.8 , as applicable.

(b) Unless the Administrative Agent shall have been notified in writing by any Lender prior to a borrowing that such Lender will not make the amount that would constitute its share of such borrowing available to the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available to the Administrative Agent, and the Administrative Agent may, in reliance upon such assumption, make available to the applicable Borrowers in respect of such borrowing a corresponding amount. If such amount is not made available to the Administrative Agent by the required time on the Borrowing Date therefor, such Lender shall pay to the Administrative Agent on demand, such amount with interest thereon at a rate equal to the daily average Federal Funds Effective Rate for the period until such Lender makes such amount immediately available to the Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with respect to any amounts owing under this Subsection 4.8(b) shall be conclusive in the absence of manifest error. If such Lender’s share of such borrowing is not made available to the Administrative Agent by such Lender within three Business Days of such Borrowing Date, (x) the Administrative Agent shall notify the Parent Borrower of the failure of such Lender to make such amount available to the Administrative Agent and the Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum applicable to ABR Loans hereunder on demand from such Borrower and (y) then such Borrower may, without waiving or limiting any rights or remedies it may have against such Lender hereunder or under applicable law or otherwise, borrow a like amount on an unsecured basis from any commercial bank for a period ending on the date upon which such Lender does in fact make such borrowing available, provided that at the time such borrowing is made and at all times while such amount is outstanding such Borrower would be permitted to borrow such amount pursuant to Subsection 2.1 .

4.9 Illegality . Notwithstanding any other provision herein, if the adoption of or any change in any Requirement of Law or in the interpretation or application thereof occurring after the Third Amendment Effective Date shall make it unlawful for any Lender to make or maintain any Eurodollar Loans as contemplated by this Agreement (“ Affected Loans ”), (a) such Lender shall promptly give written notice of such circumstances to the Borrower Representative and the Administrative Agent (which notice shall be withdrawn whenever such circumstances no longer exist), (b) the commitment of such Lender hereunder to make Affected Loans, continue Affected Loans as such and convert an ABR Loan to an Affected Loan shall forthwith be cancelled and, until such time as it shall no longer be unlawful for such Lender to make or maintain such Affected Loans, such Lender shall then have a commitment only to make an ABR Loan (or a Swingline Loan) when an Affected Loan is requested and (c) such Lender’s Loans then outstanding as Affected Loans, if any, shall be converted automatically to ABR Loans on the respective last days of the then current Interest Periods with respect to such Affected Loans or within such earlier period as required by law. If any such conversion or prepayment of an Affected Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, the applicable Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Subsection 4.12 .

4.10 Requirements of Law .

(a) If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof applicable to any Lender or any Issuing Lender, or compliance by any Lender or any Issuing Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority, in each case made subsequent to the Third Amendment Effective Date (or, if later, the date on which such Lender becomes a Lender or such Issuing Lender becomes an Issuing Lender):

(i) shall subject such Lender or such Issuing Lender to any Tax of any kind whatsoever with respect to any Letter of Credit, any L/C Request or any Eurodollar Loans made or maintained by it or its obligation to make or maintain Eurodollar Loans, or change the basis of taxation of payments to such Lender in respect thereof, in each case, except for Non-Excluded Taxes, Taxes imposed by FATCA and Taxes measured by or imposed upon net income, or franchise Taxes, or Taxes measured by or imposed upon overall capital or net worth, or branch Taxes (in the case of such capital, net worth or branch Taxes, imposed in lieu of such net income Tax), of such Lender, such Issuing Lender or its applicable lending office, branch, or any affiliate thereof;

 

96


(ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender which is not otherwise included in the determination of the LIBOR Rate hereunder; or

(iii) shall impose on such Lender or such Issuing Lender any other condition (excluding any Tax of any kind whatsoever);

and the result of any of the foregoing is to increase the cost to such Lender or such Issuing Lender, by an amount which such Lender or such Issuing Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar Loans, or issuing or participating in Letters of Credit or to reduce any amount receivable hereunder in respect thereof, then, in any such case, upon notice to the Parent Borrower from such Lender, through the Administrative Agent in accordance herewith, the applicable Borrower shall promptly pay such Lender or such Issuing Lender, upon its demand, any additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable with respect to such Eurodollar Loans, or Letters of Credit, provided that, in any such case, such Borrower may elect to convert the Eurodollar Loans made by such Lender hereunder to ABR Loans by giving the Administrative Agent at least one Business Days’ notice of such election (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion), in which case such Borrower shall promptly pay to such Lender, upon demand, without duplication, amounts theretofore required to be paid to such Lender pursuant to this Subsection 4.10(a) and such amounts, if any, as may be required pursuant to Subsection 4.12 . If any Lender becomes entitled to claim any additional amounts pursuant to this Subsection 4.10(a) , it shall provide prompt notice thereof to the Parent Borrower, through the Administrative Agent, certifying (x) that one of the events described in this clause (a) has occurred and describing in reasonable detail the nature of such event, (y) as to the increased cost or reduced amount resulting from such event and (z) as to the additional amount demanded by such Lender and a reasonably detailed explanation of the calculation thereof. Such a certificate as to any additional amounts payable pursuant to this Subsection 4.10(a) submitted by such Lender, through the Administrative Agent, to the Parent Borrower shall be conclusive in the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

(b) If any Lender or any Issuing Lender shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or liquidity or in the interpretation or application thereof or compliance by such Lender or such Issuing Lender or any corporation controlling such Lender or such Issuing Lender with any request or directive regarding capital adequacy or liquidity (whether or not having the force of law) from any Governmental Authority, in each case, made subsequent to the Third Amendment Effective Date, does or shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of such Lender’s or such Issuing Lender’s obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender or such corporation could have achieved but for such change or compliance (taking into consideration

 

97


such Lender’s or such Issuing Lender’s or such corporation’s policies with respect to capital adequacy or liquidity) by an amount deemed by such Lender or such Issuing Lender to be material, then from time to time, within ten Business Days after submission by such Lender to the Parent Borrower (through the Administrative Agent) of a written request therefor certifying (x) that one of the events described in this clause (b) has occurred and describing in reasonable detail the nature of such event, (y) as to the reduction of the rate of return on capital resulting from such event and (z) as to the additional amount or amounts demanded by such Lender or such Issuing Lender or corporation and a reasonably detailed explanation of the calculation thereof, the applicable Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or corporation for such reduction. Such a certificate as to any additional amounts payable pursuant to this Subsection 4.10(b) submitted by such Lender, through the Administrative Agent, to the Parent Borrower shall be conclusive in the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

(c) Notwithstanding anything herein to the contrary, (i) the Dodd Frank Wall Street Reform and Consumer Protection Act, and all requests, rules, regulations, guidelines and directives promulgated thereunder or issued in connection therewith shall be deemed to have been enacted, adopted or issued, as applicable, subsequent to the Third Amendment Effective Date for all purposes herein and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall, in each case, be deemed to have been enacted, adopted or issued, as applicable, subsequent to the Third Amendment Effective Date for all purposes herein.

4.11 Taxes .

(a) Except as provided below in this Subsection 4.11 or as required by law, all payments made by each of the Borrowers or the Agents under this Agreement and any Notes shall be made free and clear of, and without deduction or withholding for or on account of any Taxes; provided that if any Non-Excluded Taxes are required to be withheld from any amounts payable by any Borrower to any Agent or any Lender hereunder or under any Notes, the amounts so payable by such Borrower shall be increased to the extent necessary to yield to such Agent or such Lender (after payment of all Non-Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement; provided , however , that each of the Borrowers shall be entitled to deduct and withhold, and the Borrowers shall not be required to indemnify for any Non-Excluded Taxes, and any such amounts payable by any Borrower to or for the account of any Agent or Lender, shall not be increased (x) if such Agent or Lender fails to comply with the requirements of clauses (b), (c) or (d) of this Subsection 4.11 or with the requirements of Subsection 4.13 , or (y) with respect to any Non-Excluded Taxes imposed in connection with the payment of any fees paid under this Agreement unless such Non-Excluded Taxes are imposed as a result of a Change in Law, or (z) with respect to any Non-Excluded Taxes imposed by the United States or any state or political subdivision thereof, unless such Non-Excluded Taxes are imposed as a result of a change in treaty, law or regulation that occurred after such Agent became an Agent hereunder or such Lender became a Lender hereunder (or, if such Agent or Lender is a non-U.S. intermediary or flow-through entity for U.S. federal income tax purposes, after the relevant beneficiary or member of such Agent or Lender became such a beneficiary or member, if later) (any such change, at such time, a “ Change in Law ”). Whenever any Non-Excluded Taxes are payable by any Borrower, as promptly as possible thereafter such Borrower shall send to the Administrative Agent for its own account or for the account of the respective Lender or Agent, as the case may be, a certified copy of an original official receipt received by such Borrower showing payment thereof. If any Borrower fails to pay any Non-Excluded Taxes when due to the appropriate Governmental Authority in accordance with applicable law or fails to remit to the Administrative Agent the required receipts or other required

 

98


documentary evidence, such Borrower shall indemnify the Administrative Agent, the Lenders and the Agents for any incremental Taxes, interest or penalties that may become payable by the Administrative Agent or any Lender as a result of any such failure. The agreements in this Subsection 4.11 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

(b) Each Agent and each Lender that is not a United States Person shall:

(i) (1) on or before the date of any payment by any of the Borrowers under this Agreement or any Notes to, or for the account of, such Agent or Lender, deliver to the Borrowers and the Administrative Agent (A) two duly completed copies of Internal Revenue Service Form W-8BEN (certifying that it is a resident of the applicable country within the meaning of the income tax treaty between the United States and that country) or Form W-8ECI, or successor applicable form, as the case may be, in each case certifying that it is entitled to receive all payments under this Agreement and any Notes without deduction or withholding of any United States federal income taxes, and (B) such other forms, documentation or certifications, as the case may be, certifying that it is entitled to an exemption from United States backup withholding tax with respect to payments under this Agreement and any Notes;

(2) deliver to the Borrowers and the Administrative Agent two further copies of any such form or certification provided in Subsection 4.11(b)(i)(1) on or before the date that any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form or certificate previously delivered by it to the Borrowers;

(3) obtain such extensions of time for filing and completing such forms or certifications as may reasonably be requested by any Borrower or the Administrative Agent; and

(4) deliver, to the extent legally entitled to do so, upon reasonable request by the Parent Borrower, to the Parent Borrower and the Administrative Agent such other forms as may be reasonably required in order to establish the legal entitlement of such Lender to an exemption from withholding with respect to payments under this Agreement and any Notes, provided that in determining the reasonableness of a request under this clause (4) such Lender shall be entitled to consider the cost (to the extent unreimbursed by any Loan Party) which would be imposed on such Lender of complying with such request; or

(ii) in the case of any such Lender that is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code and is claiming the so-called “portfolio interest exemption,”

(1) represent to the Borrowers and the Administrative Agent that it is not (A) a bank within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrowers within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code;

(2) deliver to the Borrowers on or before the date of any payment by any of the Borrowers with a copy to the Administrative Agent, (A) two certificates substantially in the form of Exhibit D to the Original Credit Agreement (any such certificate a “ U.S. Tax Compliance Certificate ”) and (B) two accurate and complete original signed copies of Internal Revenue Service Form W-8BEN, or successor applicable form, certifying to such Lender’s legal entitlement at the date of such form to an exemption from U.S. withholding tax under the provisions of Section 871(h) or Section 881(c) of the Code with respect to payments to be made under this Agreement and any Notes and (C) such other forms, documentation or certifications, as the case may be certifying that it is entitled to

 

99


an exemption from United States backup withholding tax with respect to payments under this Agreement and any Notes (and shall also deliver to the Borrowers and the Administrative Agent two further copies of such form or certificate on or before the date it expires or becomes obsolete and after the occurrence of any event requiring a change in the most recently provided form or certificate and, if necessary, obtain any extensions of time reasonably requested by any Borrower or the Administrative Agent for filing and completing such forms or certificates); and

(3) deliver, to the extent legally entitled to do so, upon reasonable request by any Borrower, to the Borrowers and the Administrative Agent such other forms as may be reasonably required in order to establish the legal entitlement of such Lender to an exemption from withholding with respect to payments under this Agreement and any Notes, provided that in determining the reasonableness of a request under this clause (3) such Lender shall be entitled to consider the cost (to the extent unreimbursed by any of the Borrowers) which would be imposed on such Lender of complying with such request; or

(iii) in the case of any such Agent or Lender that is a non-U.S. intermediary or flow-through entity for U.S. federal income tax purposes,

(1) on or before the date of any payment by any of the Borrowers under this Agreement or any Notes to, or for the account of, such Agent or Lender, deliver to the Borrowers and the Administrative Agent two accurate and complete original signed copies of Internal Revenue Service Form W-8IMY and, if any beneficiary or member of such Lender is claiming the so-called “portfolio interest exemption,” (I) represent to the Borrowers and the Administrative Agent that such Lender is not (A) a bank within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrowers within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (II) also deliver to the Borrowers and the Administrative Agent two U.S. Tax Compliance Certificates certifying to such Lender’s legal entitlement at the date of such certificate to an exemption from U.S. withholding tax under the provisions of Section 881(c) of the Code with respect to payments to be made under this Agreement and any Notes; and

(A) with respect to each beneficiary or member of such Agent or Lender that is not claiming the so-called “portfolio interest exemption,” also deliver to the Borrowers and the Administrative Agent (I) two duly completed copies of Internal Revenue Service Form W-8BEN (certifying that such beneficiary or member is a resident of the applicable country within the meaning of the income tax treaty between the United States and that country), Form W-8ECI or Form W-9, or successor applicable form, as the case may be, in each case so that each such beneficiary or member is entitled to receive all payments under this Agreement and any Notes without deduction or withholding of any United States federal income taxes and (II) such other forms, documentation or certifications, as the case may be, certifying that each such beneficiary or member is entitled to an exemption from United States backup withholding tax with respect to all payments under this Agreement and any Notes; and

(B) with respect to each beneficiary or member of such Lender that is claiming the so-called “portfolio interest exemption,” (I) represent to the Borrowers and the Administrative Agent that such beneficiary or member is not (1) a bank within the meaning of Section 881(c)(3)(A) of the Code, (2) a “10 percent

 

100


shareholder” of the Borrowers within the meaning of Section 881(c)(3)(B) of the Code, or (3) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (II) also deliver to the Borrowers and the Administrative Agent two U.S. Tax Compliance Certificates from each beneficiary or member and two accurate and complete original signed copies of Internal Revenue Service Form W-8BEN, or successor applicable form, certifying to such beneficiary’s or member’s legal entitlement at the date of such certificate to an exemption from U.S. withholding tax under the provisions of Section 871(h) or Section 881(c) of the Code with respect to payments to be made under this Agreement and any Notes, and (III) also delivers to Borrowers and the Administrative Agent such other forms, documentation or certifications, as the case may be, certifying that it is entitled to an exemption from United States backup withholding tax with respect to payments under this Agreement and any Notes;

(2) deliver to the Borrowers and the Administrative Agent two further copies of any such forms, certificates or certifications referred to above on or before the date any such form, certificate or certification expires or becomes obsolete, or any beneficiary or member changes, and after the occurrence of any event requiring a change in the most recently provided form, certificate or certification and obtain such extensions of time reasonably requested by any Borrower or the Administrative Agent for filing and completing such forms, certificates or certifications; and

(3) deliver, to the extent legally entitled to do so, upon reasonable request by any Borrower, to the Borrowers and the Administrative Agent such other forms as may be reasonably required in order to establish the legal entitlement of such Agent or Lender (or beneficiary or member) to an exemption from withholding with respect to payments under this Agreement and any Notes, provided that in determining the reasonableness of a request under this clause (iii) such Agent or Lender shall be entitled to consider the cost (to the extent unreimbursed by any of the Borrowers) which would be imposed on such Agent or Lender (or beneficiary or member) of complying with such request;

unless in any such case there has been a Change in Law which renders all such forms inapplicable or which would prevent such Agent or such Lender (or such beneficiary or member) from duly completing and delivering any such form with respect to it and such Agent or such Lender so advises the Parent Borrower and the Administrative Agent.

(c) Each Lender and each Agent, in each case that is a United States Person, shall on or before the date of any payment by any Borrower under this Agreement or any Notes to such Lender or Agent, deliver to such Borrower and the Administrative Agent two duly completed copies of Internal Revenue Service Form W-9, or successor form, certifying that such Lender or Agent is a United States Person and that such Lender or Agent is entitled to complete exemption from United States backup withholding tax.

(d) Notwithstanding the foregoing, on or before the date of any payment by any of the Borrowers under this Agreement or any Notes to the Administrative Agent, the Administrative Agent shall:

(i) deliver to the Borrowers (A) two duly completed copies of Internal Revenue Service Form W-8ECI, or successor applicable form, with respect to any amounts payable to the Administrative Agent for its own account, (B) two duly completed copies of Internal Revenue Service Form W-8IMY, or successor applicable form, with respect to any amounts payable to the

 

101


Administrative Agent for the account of others, certifying that it is a “U.S. branch” and that the payments it receives for the account of others are not effectively connected with the conduct of its trade or business in the United States and that it is using such form as evidence of its agreement with the Borrowers to be treated as a U.S. person with respect to such payments (and the Borrowers and the Administrative Agent agree to so treat the Administrative Agent as a U.S. person with respect to such payments as contemplated by U.S. Treasury Regulation § 1.1441-1(b)(2)(iv)) or (C) such other forms or certifications as may be sufficient under applicable law to establish that the Administrative Agent is entitled to receive any payment by any of the Borrowers under this Agreement or any Notes (whether for its own account or for the account of others) without deduction or withholding of any United States federal income taxes;

(ii) deliver to the Borrowers two further copies of any such form or certification provided in Subsection 4.11(d)(i) on or before the date that any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form or certificate previously delivered by it to the Borrowers; and

(iii) obtain such extensions of time for filing and completing such forms or certifications as may reasonably be requested by any Borrower or the Administrative Agent.

(e) If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA, such Lender shall deliver to the Administrative Agent and the Borrowers, at the time or times prescribed by law and at such time or times reasonably requested by the Administrative Agent or the Borrowers, such documentation prescribed by applicable law and such additional documentation reasonably requested by the Administrative Agent or the Borrowers as may be necessary for the Administrative Agent and the Borrowers to comply with their respective obligations (including any applicable reporting requirements) under FATCA, to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment

4.12 Indemnity . Each Borrower agrees to indemnify each Lender in respect of Extensions of Credit made, or requested to be made, to the Borrowers and to hold each such Lender harmless from any loss or expense which such Lender may sustain or incur (other than through such Lender’s gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final and nonappealable decision) as a consequence of (a) default by such Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans, after the Parent Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, (b) default by such Borrower in making any prepayment or conversion of Eurodollar Loans after the Borrower Representative has given a notice thereof in accordance with the provisions of this Agreement or (c) the making of a payment or prepayment of Eurodollar Loans or the conversion of Eurodollar Loans on a day which is not the last day of an Interest Period with respect thereto. Such indemnification may include an amount equal to the excess, if any, of (i) the amount of interest which would have accrued on the amount so prepaid, or converted, or not so borrowed, converted or continued, for the period from the date of such prepayment or conversion or of such failure to borrow, convert or continue to the last day of the applicable Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of interest for such Eurodollar Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the amount of interest (as reasonably determined by such Lender) which would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank eurodollar market. If any Lender becomes entitled to claim any amounts under the indemnity contained in this Su b section 4.12 , it shall provide prompt notice thereof to the Parent Borrower, through the Administrative

 

102


Agent, certifying (x) that one of the events described in clause (a), (b) or (c) has occurred and describing in reasonable detail the nature of such event, (y) as to the loss or expense sustained or incurred by such Lender as a consequence thereof and (z) as to the amount for which such Lender seeks indemnification hereunder and a reasonably detailed explanation of the calculation thereof. Such a certificate as to any indemnification pursuant to this Subsection 4.12 submitted by such Lender, through the Administrative Agent, to the Parent Borrower shall be conclusive in the absence of manifest error. The Parent Borrower shall pay (or cause the relevant Borrower to pay) such Lender the amount shown as due on any such certificate within five Business Days after receipt thereof. This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

4.13 Certain Rules Relating to the Payment of Additional Amounts .

(a) Upon the request, and at the expense of the applicable Borrower, each Lender to which any of the Borrowers is required to pay any additional amount pursuant to Subsection 4.10 or 4.11 , and any Participant in respect of whose participation such payment is required, shall reasonably afford such Borrower the opportunity to contest, and reasonably cooperate with such Borrower in contesting, the imposition of any Non-Excluded Tax giving rise to such payment; provided that (i) such Lender shall not be required to afford such Borrower the opportunity to so contest unless such Borrower shall have confirmed in writing to such Lender its obligation to pay such amounts pursuant to this Agreement and (ii) such Borrower shall reimburse such Lender for its reasonable attorneys’ and accountants’ fees and disbursements incurred in so cooperating with such Borrower in contesting the imposition of such Non-Excluded Tax; provided , however , that notwithstanding the foregoing no Lender shall be required to afford any Borrower the opportunity to contest, or cooperate with such Borrower in contesting, the imposition of any Non-Excluded Taxes, if such Lender in its sole discretion in good faith determines that to do so would have an adverse effect on it.

(b) If a Lender changes its applicable lending office (other than (i) pursuant to clause (c) below or (ii) after an Event of Default under Subsection 9.1(a) or 9.1(f) has occurred and is continuing) and the effect of such change, as of the date of such change, would be to cause any of the Borrowers to become obligated to pay any additional amount under Subsection 4.10 or 4.11 , such Borrower shall not be obligated to pay such additional amount.

(c) If a condition or an event occurs which would, or would upon the passage of time or giving of notice, result in the payment of any additional amount to any Lender by any of the Borrowers pursuant to Subsection 4.10 or 4.11 or result in Affected Loans or commitments to make Affected Loans being automatically converted to ABR Loans or commitments to make ABR Loans, as the case may be, pursuant to Subsection 4.9 , such Lender shall promptly notify the Parent Borrower and the Administrative Agent and shall take such steps as may reasonably be available to it to mitigate the effects of such condition or event (which shall include efforts to rebook the Loans held by such Lender at another lending office, or through another branch or an affiliate, of such Lender); provided that such Lender shall not be required to take any step that, in its reasonable judgment, would be materially disadvantageous to its business or operations or would require it to incur additional costs (unless the Parent Borrower agrees to reimburse such Lender for the reasonable incremental out-of-pocket costs thereof).

(d) If any of the Borrowers shall become obligated to pay additional amounts pursuant to Subsection 4.10 or 4.11 and any affected Lender shall not have promptly taken steps necessary to avoid the need for payments under Subsection 4.10 or 4.11 or if Affected Loans or commitments to make Affected Loans are automatically converted to ABR Loans or commitments to make ABR Loans, as the case may be, under Subsection 4.9 and any affected Lender shall not have promptly taken steps necessary to avoid the need for such conversion under Subsection 4.9 , the applicable Borrower shall have the right, for so long as such obligation remains, (i) with the assistance of the Administrative Agent to seek one or

 

103


more substitute Lenders reasonably satisfactory to the Administrative Agent and such Borrower to purchase the affected Loan, in whole or in part, at an aggregate price no less than such Loan’s principal amount plus accrued interest, and assume the affected obligations under this Agreement, or (ii) so long as no Event of Default under Subsection 9.1(a) or 9.1(f) then exists or will exist immediately after giving effect to the respective prepayment, upon notice to the Administrative Agent to prepay the affected Loan, in whole or in part, subject to Subsection 4.12 , without premium or penalty and terminate the Commitments in respect of the Revolving Credit Facility of such Lender. In the case of the substitution of a Lender, then, the Parent Borrower, any other applicable Borrower, the Administrative Agent, the affected Lender, and any substitute Lender shall execute and deliver an appropriately completed Assignment and Acceptance pursuant to Subsection 11.6(b) to effect the assignment of rights to, and the assumption of obligations by, the substitute Lender; provided that any fees required to be paid by Subsection 11.6(b) in connection with such assignment shall be paid by the Parent Borrower or the substitute Lender. In the case of a prepayment of an affected Loan, the amount specified in the notice shall be due and payable on the date specified therein, together with any accrued interest to such date on the amount prepaid. In the case of each of the substitution of a Lender and of the prepayment of an affected Loan, the applicable Borrower shall first pay the affected Lender any additional amounts owing under Subsections 4.10 and 4.11 (as well as any commitment fees and other amounts then due and owing to such Lender, including any amounts under this Subsection 4.13 ) prior to such substitution or prepayment. In the case of the substitution of a Lender pursuant to this Subsection 4.13(d) or Subsection 4.15(c)(i) , if the Lender being replaced does not execute and deliver to the Administrative Agent a duly completed Assignment and Acceptance and/or any other documentation necessary to reflect such replacement by the later of (a) the date on which the assignee Lender executes and delivers such Assignment and Acceptance and/or such other documentation and (b) the date as of which all obligations of the Borrowers owing to such replaced Lender relating to the Loans and participations so assigned shall be paid in full by the assignee Lender and/or the Parent Borrower to such Lender being replaced, then the Lender being replaced shall be deemed to have executed and delivered such Assignment and Acceptance and/or such other documentation as of such date and the applicable Borrower shall be entitled (but not obligated) to execute and deliver such Assignment and Acceptance and/or such other documentation on behalf of such Lender.

(e) If any Agent or any Lender receives a refund directly attributable to Taxes for which any of the Borrowers has made additional payments pursuant to Subsection 4.10(a) or 4.11(a) , such Agent or such Lender, as the case may be, shall promptly pay such refund (together with any interest with respect thereto received from the relevant taxing authority, but net of any reasonable cost incurred in connection therewith) to such Borrower; provided , however , that such Borrower agrees promptly to return such refund (together with any interest with respect thereto due to the relevant taxing authority) (free of all Non-Excluded Taxes) to such Agent or the applicable Lender, as the case may be, upon receipt of a notice that such refund is required to be repaid to the relevant taxing authority.

(f) The obligations of any Agent, Lender or Participant under this Subsection 4.13 shall survive the termination of this Agreement and the payment of the Loans and all amounts payable hereunder.

4.14 Controls on Prepayment if Aggregate Outstanding Credit Exceeds Aggregate Revolving Credit Loan Commitments .

(a) In addition to the provisions set forth in Subsection 4.4(b) , the Parent Borrower will implement and maintain internal controls to monitor the borrowings and repayments of Loans by the Borrowers and the issuance of and drawings under Letters of Credit, with the objective of preventing any request for an Extension of Credit that would result in (i) the Aggregate Outstanding Credit with respect to all of the Revolving Credit Lenders (including the Swingline Lender) being in excess of the aggregate Commitments then in effect or (ii) any other circumstance under which an Extension of Credit would not be permitted pursuant to Subsection 2.1(a) .

(b) The Administrative Agent will calculate the Aggregate Outstanding Credit with respect to all of (A) the Revolving Credit Lenders and (B) the Lenders (in each case, including the Swingline Lender) from time to time, and in any event not less frequently than once during each calendar week. In making such calculations, the Administrative Agent will rely on the information most recently received by it from the Swingline Lender in respect of outstanding Swingline Loans and from the Issuing Lenders in respect of outstanding L/C Obligations.

 

104


4.15 Defaulting Lenders . Notwithstanding anything contained in this Agreement to the contrary, if any Revolving Credit Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Revolving Credit Lender is a Defaulting Lender:

(a) no commitment fee shall accrue for the account of a Defaulting Lender so long as such Lender shall be a Defaulting Lender (except to the extent it is payable to the Issuing Lender pursuant to clause (d)(v) below);

(b) in determining the Required Lenders or Supermajority Lenders, any Lender that at the time is a Defaulting Lender (and the Revolving Credit Loans and/or Commitment of such Defaulting Lender) shall be excluded and disregarded;

(c) the Parent Borrower shall have the right, at its sole expense and effort (i) to seek one or more Persons reasonably satisfactory to the Administrative Agent and the Parent Borrower to each become a substitute Revolving Credit Lender and assume all or part of the Commitment of any Defaulting Lender and the Parent Borrower, the Administrative Agent and any such substitute Revolving Credit Lender shall execute and deliver, and such Defaulting Lender shall thereupon be deemed to have executed and delivered, an appropriately completed Assignment and Acceptance to effect such substitution or (ii) so long as no Event of Default under Subsection 9.1(a) or 9.1(f) then exists or will exist immediately after giving effect to the respective prepayment, upon notice to the Administrative Agent, to prepay the Loans and, at the Parent Borrower’s option, terminate the Commitments of such Defaulting Lender, in whole or in part, without premium or penalty;

(d) if any Swingline Exposure exists or any L/C Obligations exist at the time a Revolving Credit Lender becomes a Defaulting Lender then:

(i) all or any part of such Swingline Exposure and L/C Obligations shall be re-allocated among the Non-Defaulting Lenders in accordance with their respective Commitment Percentages but only to the extent the sum of all Non-Defaulting Lenders’ Revolving Exposures plus such Defaulting Lender’s Swingline Exposure and L/C Obligations does not exceed the total of all Non-Defaulting Lenders’ Commitments;

(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrowers shall within one Business Day following notice by the Administrative Agent (x) first, prepay such Defaulting Lender’s Swingline Exposure and (y) second, cash collateralize such Defaulting Lender’s L/C Obligations (after giving effect to any partial reallocation pursuant to clause (i) above) on terms reasonably satisfactory to the Administrative Agent for so long as such L/C Obligations are outstanding;

 

105


(iii) if any portion of such Defaulting Lender’s L/C Obligations is cash collateralized pursuant to clause (ii) above, the Borrowers shall not be required to pay the L/C Fee for participation with respect to such portion of such Defaulting Lender’s L/C Exposure so long as it is cash collateralized;

(iv) if any portion of such Defaulting Lender’s L/C Obligations is reallocated to the Non-Defaulting Lenders pursuant to clause (i) above, then the letter of credit commission with respect to such portion shall be allocated among the Non-Defaulting Lenders in accordance with their Commitment Percentages; or

(v) if any portion of such Defaulting Lender’s L/C Obligations is neither cash collateralized nor reallocated pursuant to this Subsection 4.15(d) , then, without prejudice to any rights or remedies of the Issuing Lender or any Revolving Credit Lender hereunder, the commitment fee that otherwise would have been payable to such Defaulting Lender (with respect to the portion of such Defaulting Lender’s Commitment that was utilized by such L/C Obligations) and the letter of credit commission payable with respect to such Defaulting Lender’s L/C Obligations shall be payable to the Issuing Lender until such L/C Obligations are cash collateralized and/or reallocated;

(e) so long as any Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loan and the Issuing Lender shall not be required to issue, amend or increase any Letter of Credit, unless they are respectively satisfied that the related exposure will be 100% covered by the Commitments of the Non-Defaulting Lenders and/or cash collateralized on terms reasonably satisfactory to the Administrative Agent, and participations in any such newly issued or increased Letter of Credit or newly made Swingline Loan shall be allocated among Non-Defaulting Lenders in accordance with their respective Commitment Percentages (and Defaulting Lenders shall not participate therein); and

(f) any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender pursuant to Subsection 11.7 ) may, in lieu of being distributed to such Defaulting Lender, be retained by the Administrative Agent in a segregated non-interest bearing account and, subject to any applicable Requirements of Law, be applied at such time or times as may be determined by the Administrative Agent (i) first , to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second , pro rata , to the payment of any amounts owing by such Defaulting Lender to the Issuing Lender or Swingline Lender hereunder, (iii) third , to the funding of any Loan or the funding or cash collateralization of any participation in any Swingline Loan or Letter of Credit in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent, (iv) fourth , if so determined by the Administrative Agent and the Parent Borrower, held in such account as cash collateral for future funding obligations of the Defaulting Lender under this Agreement, (v) fifth , pro rata , to the payment of any amounts owing to the Borrowers or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by a Borrower or any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement and (vi) sixth , to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if such payment is (x) a prepayment of the principal amount of any Loans or Reimbursement Obligations in respect of L/C Disbursements in respect of which a Defaulting Lender has funded its participation obligations and (y) made at a time when the conditions set forth in Subsection 6.2 are satisfied, such payment shall be applied solely to prepay the Loans of, and Reimbursement Obligations owed to, all Non-Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans, or Reimbursement Obligations owed to, any Defaulting Lender.

 

106


(g) In the event that the Administrative Agent, the Borrower Representative, each applicable Issuing Lender or the Swingline Lender, as the case may be, each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and L/C Obligations of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Commitment Percentage. The rights and remedies against a Defaulting Lender under this Subsection 4.15 are in addition to other rights and remedies that the Borrowers, the Administrative Agent, the Issuing Lenders, the Swingline Lender and the Non-Defaulting Lenders may have against such Defaulting Lender. The arrangements permitted or required by this Subsection 4.15 shall be permitted under this Agreement, notwithstanding any limitation on Liens or the pro rata sharing provisions or otherwise.

4.16 Cash Management .

(a) Within 90 days after the date hereof (or such later date as may be agreed by the Security Agents), the Borrowers shall deliver to the Security Agents a Schedule 4.16 , Parts 1 to 5 respectively (which may be modified from time to time by notice to the Security Agents or in accordance with Subsection 4.16(i) ), which schedule shall provide a list of all Related Corporation DDAs, Related Corporation Concentration Accounts, Loan Party DDAs, Loan Party Concentration Accounts and Restricted Bank Accounts that are maintained by the Related Corporations and the Loan Parties, as applicable, and which schedule shall include (except for the schedules relating to Related Corporation DDAs and Related Corporation Concentration Accounts), with respect to each depository (i) the name and address of such depository; (ii) the account number(s) (and account name(s) of such bank account(s)) maintained with such depository; and (iii) a contact person at such depository.

(b) Except as otherwise agreed by the Security Agents, and subject to clauses (c), (d) and (o) below, after the Third Amendment Effective Date the Parent Borrower shall, and shall cause each Loan Party to, as applicable:

(i) at all times on and after the Third Amendment Effective Date, instruct each Account Debtor of any Loan Party with respect to any Eligible Account that remits payments thereon by ACH or wire transfer to cause (i) such payments to be made to a Loan Party DDA or a Loan Party Concentration Account and (ii) payments in respect of Restricted Government Accounts to be made to such Loan Party DDA or Loan Party Concentration Account that is not a Blocked Account and instruct each depository institution for each Loan Party DDA (other than Excluded Bank Accounts) to sweep the entire available balance in excess of the Target Amount at the end of each Business Day in such Loan Party DDA to one of the Loan Party Concentration Accounts no less frequently than on a daily basis,

(ii) at all times on and after the Third Amendment Effective Date, use commercially reasonable efforts to cause each Related Corporation to (w) instruct each Account Debtor of such Related Corporation with respect to any Eligible Account that remits payments thereon by ACH or wire transfer to cause (i) such payments to be made to a Related Corporation DDA, Related Corporation Concentration Account, Loan Party DDA or a Loan Party Concentration Account and (ii) payments in respect of Restricted Government Accounts to be made to such Related Corporation DDA, Related Corporation Concentration Account, Loan Party DDA or Loan Party Concentration Account that is not a Blocked Account and (x) instruct each depository institution for each Related Corporation DDA (other than an Excluded Bank Account) to sweep the entire available balance in excess of the Target Amount at the end of each Business Day in such Related Corporation DDA to one of the Related Corporation Concentration Accounts or Loan Party Concentration

 

107


Accounts no less frequently than on a daily basis, or (y) transfer the entire available balance in excess of the Target Amount at the end of each Business Day in all Related Corporation DDAs not subject to instructions given in accordance with clause (x) above to one of Related Corporation Concentration Accounts or the Loan Party Concentration Accounts no less frequently than on a daily basis,

(iii) at all times on and after the Third Amendment Effective Date, use commercially reasonable efforts to cause each Related Corporation with a Related Corporation Concentration Account to (x) instruct each depository institution for each Related Corporation Concentration Account (other than an Excluded Bank Account) to sweep the entire available balance in excess of the Target Amount at the end of each Business Day in such Related Corporation Concentration Account to (directly, or through one or more of the Related Corporation Concentration Accounts) Loan Party Concentration Accounts no less frequently than on a daily basis, or (y) transfer the entire available balance in excess of the Target Amount at the end of each Business Day in all Related Corporation Concentration Account not subject to instructions given in accordance with clause (x) above to (directly, or through one or more of the Related Corporation Concentration Accounts) the Loan Party Concentration Accounts no less frequently than on a daily basis,

(iv) enter, or cause the applicable Loan Party to enter, into a blocked account agreement (each, a “ Blocked Account Agreement ”), in form reasonably satisfactory to the Administrative Agent, with the Administrative Agent or the Collateral Agent and any depositary with which such Loan Party maintains a Loan Party Concentration Account (and, at the option of the Parent Borrower, a Loan Party DDA) (each such account, a “ Blocked Account ”), covering each such Loan Party Concentration Account (and, at the option of the Parent Borrower, one or more Loan Party DDAs) maintained with such depositary,

(v) (A) instruct all Account Debtors of such Loan Party that remit payments of Accounts regularly by check pursuant to arrangements with such Loan Party to remit all such payments (other than (i) any Accounts (or any payment thereof) that are to be deposited in Excluded Bank Accounts or (ii) any Accounts (or any payment thereof) excluded from the Collateral pursuant to any Security Document, including Excluded Assets), to the applicable “ P.O. Boxes ” or “ Lockbox Addresses ” with respect to the applicable Loan Party DDA or any applicable Loan Party Concentration Account, which remittances shall be collected by the applicable depositary and deposited in the applicable Loan Party DDA or the applicable Loan Party Concentration Account or (B) cause any checks relating to any such Accounts to be deposited in the applicable Loan Party DDA or applicable Loan Party Concentration Account within two (2) Business Days after such check is received by such Loan Party; provided that the applicable Loan Party will instruct the applicable depository or otherwise use commercially reasonable efforts to cause such checks in respect of Restricted Government Accounts to not be deposited into Blocked Accounts, and

(vi) Use commercially reasonable efforts to cause each Related Corporation with Accounts intended to be included as Eligible Accounts to (A) instruct all Account Debtors of such Related Corporation that remit payments of Accounts regularly by check pursuant to arrangements with such Related Corporation to remit all such payments (other than (i) any Accounts (or any payment thereof) that are to be deposited in Excluded Bank Accounts or (ii) any Accounts (or any payment thereof) excluded from the Collateral pursuant to any Security Document, including Excluded Assets) to the applicable “ P.O. Boxes ” or “ Lockbox Addresses ” with respect to the applicable Related Corporation DDA, which remittances shall be collected by the applicable depositary and deposited in the applicable Related Corporation DDA or (B) cause any checks relating to any such Accounts to be deposited in the applicable Related Corporation DDA within two (2) Business Days after such check is received by such Related Corporation or Loan Party, as the case may be.

 

108


(c) Notwithstanding the provisions of clause (b) above, (i) in relation to the DDAs and Related Corporation Concentration Accounts, it will not be a breach of the covenants contained in clause (b) above with respect to any DDA or Related Corporation Concentration Account if the amount that is not transferred from such DDA or Related Corporation Concentration Account to any Loan Party Concentration Account, when aggregated with the amounts not transferred from all other DDAs and Related Corporation Concentration Accounts to any Loan Party Concentration Account (but excluding for this purpose any amounts permitted to remain in any Restricted Bank Account and any amounts in any Loan Party DDAs that are Blocked Accounts), does not at any time exceed the sum of the Target Amount plus the Business Development Amount and (ii) arrangements entered into with the Collateral Agent in connection with the Original Credit Agreement, to the extent otherwise satisfying the requirements set forth above, shall be taken into account in determining compliance with this covenant.

(d) Notwithstanding the provisions of clause (b) above, with respect to any DDA or Concentration Account that has been designated as a Restricted Bank Account in accordance with Subsection 4.16(k) , the provisions of clause (b) shall not apply to such Restricted Bank Account to the extent of any legal restriction or requirement (including under applicable law, statute, ordinance, code, decree, treaty, rule or regulation, pursuant to the determination or order of any court, tribunal, administrative agency or other Governmental Authority or to the extent otherwise requested or required by any Governmental Authority, each, for purposes of this Subsection 4.16 a “ legal requirement ”), or any contractual requirement applicable to such Person or its assets or to which such person or its assets are bound or subject, which either prohibits the transfer of any funds in such Restricted Bank Account or requires a minimum credit balance to be maintained in such Restricted Bank Account, for so long as such legal requirement or contractual requirement remains in effect, provided that the amount in such Restricted Bank Account which may not be transferred, or the minimum credit balance that must be maintained, in each case unless otherwise further notified, shall not exceed the applicable affected amount notified by the Parent Borrower to the Security Agents at the time of designation of such bank account as a Restricted Bank Account.

(e) (i) The Parent Borrower shall not, and shall cause each Loan Party to not, cause any proceeds of any Accounts that are to be deposited into any Loan Party DDA or transferred to any Loan Party Concentration Account in accordance with clause (b) above to be otherwise redirected and (ii) the Parent Borrower shall not, and use commercially reasonable efforts to cause each Related Corporation to not, cause any proceeds of any Accounts that are to be deposited into any Related Corporation DDA or transferred to any Related Corporation Concentration Account or Loan Party Concentration Account in accordance with clause (b) above to be otherwise redirected.

(f) Each Blocked Account Agreement shall require, after the occurrence and during the continuance of a Dominion Event, the ACH or wire transfer no less frequently than once per Business Day (unless the Commitments have been terminated and the monetary obligations then due and owing hereunder and under the other Loan Documents have been paid in full and all Letters of Credit have either been terminated or expired (unless cash collateralized or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent)), of all available cash balances and cash receipts, including the then contents or then entire available ledger balance of each Blocked Account net of such minimum balance (not to exceed $2,500,000 per account or $7,500,000 in the aggregate), if any, required by the bank at which such Blocked Account is maintained to a bank account maintained by the Administrative Agent at Deutsche Bank AG New York Branch (or another bank of recognized standing reasonably selected by the Security Agents with the reasonable consent of the Parent Borrower) (the “ Core Concentration Account ”). The Parent Borrower shall not, and shall cause each Loan Party to not, cause the proceeds of any Blocked Account to be otherwise redirected.

 

109


(g) All collected amounts received in the Core Concentration Account shall be distributed and applied on a daily basis in the following order (in each case, to the extent the Administrative Agent has actual knowledge of the amounts owing or outstanding as described below and after giving effect to the application of any such amounts constituting proceeds from any Collateral otherwise required to be applied pursuant to the terms of the respective Security Document or any applicable intercreditor agreement): (1) first , to the payment (on a ratable basis) of any outstanding expenses actually due and payable to the Administrative Agent or the Security Agents under any of the Loan Documents and to repay or prepay outstanding Revolving Credit Loans advanced by the Administrative Agent; (2) second , to the extent all amounts referred to in preceding clause (1) have been paid in full, to pay (on a ratable basis) all outstanding expenses actually due and payable to each Issuing Lender under any of the Loan Documents and to repay all outstanding Unpaid Drawings and all interest thereon; (3) third , to the extent all amounts referred to in preceding clauses (1) and (2) have been paid in full, to pay (on a ratable basis) all accrued and unpaid interest actually due and payable on the Revolving Credit Loans and all accrued and unpaid Fees actually due and payable to the Administrative Agent, the Issuing Lenders and the Lenders under any of the Loan Documents; (4) fourth , to the extent all amounts referred to in preceding clauses (1) through (3), inclusive, have been paid in full, to repay (on a ratable basis) the outstanding principal of Revolving Credit Loans (whether or not then due and payable); (5) fifth , to the extent all amounts referred to in preceding clauses (1) through (4), inclusive, have been paid in full, to pay (on a ratable basis) all outstanding obligations of the Borrowers then due and payable to the Administrative Agent, the Collateral Agent, the Co-Collateral Agent, the Issuing Lenders and the Lenders under this Agreement; and (6) sixth , to the extent all amounts referred to in preceding clauses (1) through (5), inclusive, have been paid in full, to pay (on a ratable basis) all other outstanding obligations of the Borrowers then due and payable to the Administrative Agent, the Collateral Agent, the Co-Collateral Agent, the Issuing Lenders and the Lenders under any of the Loan Documents. This Subsection 4.16(g) may be amended (and the Lenders hereby irrevocably authorize the Administrative Agent to enter into such amendments) to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new classes or tranches of loans added pursuant to Subsections   2.6 , 2.7 and 2.8 , as applicable, in accordance with Subsection 11.1(d) .

(h) If, at any time after the occurrence and during the continuance of a Dominion Event as to which the Security Agents have notified the Borrower Representative, any cash, Cash Equivalents or Temporary Cash Investments owned by any Loan Party (other than (i)  de minimis cash, Cash Equivalents and/or Temporary Cash Investments from time to time inadvertently misapplied by any Loan Party, (ii) cash, Cash Equivalents or Temporary Cash Investments deposited or to be deposited in an Excluded Bank Account or a Restricted Bank Account in accordance with this Subsection 4.16 , (iii) cash, Cash Equivalents or Temporary Cash Investments that are (or are in any bank account that is) excluded from the Collateral pursuant to any Security Document, including Excluded Assets and (iv) cash, Cash Equivalents or Temporary Cash Investments in the Asset Sales Proceeds Account (as defined in the ABL/Term Loan Intercreditor Agreement, if any) are deposited to any bank account, or held or invested in any manner, otherwise than in a Blocked Account subject to a Blocked Account Agreement (or a Loan Party DDA which is swept daily to such Blocked Account), the Security Agents shall be entitled to require the applicable Loan Party to close such bank account and have all funds therein transferred to a Blocked Account, and to cause all future deposits that were previously made or required to be made to such bank account to be made to a Blocked Account.

(i) (a) The Loan Parties and Related Corporations respectively may close DDAs or Concentration Accounts and/or open new DDAs or new Concentration Accounts, subject to, in the case of any new Loan Party Concentration Account, (i) the contemporaneous execution and delivery to the Security

 

110


Agents of a Blocked Account Agreement consistent with the provisions of this Subsection   4.16 with respect to each such new Loan Party Concentration Account or (ii) other arrangements reasonably satisfactory to the Security Agents and (b) as part of the Compliance Certificate to be delivered concurrently with the delivery of financial statements and reports referred to in Subsections 7.1(a) and 7.1(b) the Parent Borrower will provide a list to the Security Agents of any new opened or acquired Loan Party DDAs or Loan Party Concentration Accounts during the preceding Fiscal Quarter.

(j) In the event that a Loan Party or a Related Corporation acquires new demand deposit accounts or new concentration accounts in connection with an acquisition, the Parent Borrower will procure that such Loan Party shall within ninety (90) days of the date of such acquisition (or such longer period as may be agreed by the Security Agents) cause such new demand deposit accounts or new concentration accounts so acquired to comply with the applicable requirements of Subsection   4.16(b) (including, with respect to any new Loan Party Concentration Account, by entering into a Blocked Account Agreement) or shall enter into other arrangements consistent with the provisions of this Subsection   4.16 and otherwise reasonably satisfactory to the Security Agents with respect to any new Loan Party Concentration Account or Loan Party DDA that, in either case, is to become a Blocked Account.

(k) In order for any DDA or Concentration Account to be designated as a Restricted Bank Account, the Parent Borrower shall notify the Security Agents in writing of the account number(s) (and account name(s)) of the applicable DDA or Concentration Account and any minimum credit balance that must be maintained or any restriction on the amount of funds that may be transferred out of the applicable DDA or Concentration Account, in each case pursuant to any contractual requirement with a customer or because of a legal requirement, including the reason for such minimum credit balance or restriction (it being understood that any such minimum credit balance required to be maintained or any restriction on the amount of funds that may be transferred out of the applicable Restricted Bank Account may be increased or updated from time to time by further notice to the Administrative Agent), and such DDA or Concentration Account (and such related information) shall be deemed added to Part 5 of Schedule   4.16 , and such DDA or Concentration Account shall thereafter continue to be designated as a Restricted Bank Account, for so long as the relevant legal requirement or contractual requirement affecting such Restricted Bank Account remains in effect.

(l) The Core Concentration Account shall at all times be under the sole dominion and control of the Administrative Agent. The Parent Borrower, on behalf of each Loan Party, hereby acknowledges and agrees that, except to the extent otherwise provided in the Guarantee and Collateral Agreement, the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement, as applicable, (x) such Loan Party has no right of withdrawal from the Core Concentration Account, (y) the funds on deposit in the Core Concentration Account shall at all times continue to be collateral security for all of the Obligations of the Loan Parties hereunder and under the other Loan Documents, and (z) the funds on deposit in the Core Concentration Account shall be applied as provided in this Agreement and the ABL/Term Loan Intercreditor Agreement (and any other applicable intercreditor agreement). In the event that, notwithstanding the provisions of this Subsection 4.16 , any Loan Party receives or otherwise has dominion and control of any proceeds or collections required to be transferred to the Core Concentration Account pursuant to Subsection   4.16(f) , such proceeds and collections shall be held in trust by such Loan Party for the Administrative Agent, shall not be commingled with any of such Loan Party’s other funds or deposited in any bank account of such Loan Party (other than any bank account by which such Loan Party received or acquired dominion or control over such proceeds and collections or with any funds in such bank account) and shall promptly be deposited into the Core Concentration Account or dealt with in such other fashion as such Loan Party may be instructed by the Security Agents.

 

111


(m) So long as no Dominion Event has occurred and is continuing, the Loan Parties may direct, and shall have sole control over, the manner of disposition of funds in the Blocked Accounts.

(n) Any amounts held or received in the Core Concentration Account (including all interest and other earnings with respect hereto, if any) at any time (x) when all of the monetary obligations due and owing hereunder and under the other Loan Documents have been satisfied or (y) all Dominion Events have been cured or waived, shall (subject in the case of clause (x) to the provisions of the applicable intercreditor agreement), be remitted to the operating bank account of the applicable Loan Party.

(o) Notwithstanding anything herein to the contrary, the Loan Parties shall be deemed to be in compliance with the requirements set forth in this Subsection 4.16 during the initial 180 day period commencing on the Third Amendment Effective Date to the extent that the arrangements described above are established and effective not later than the date that is 180 days following the Third Amendment Effective Date or such later date as the Security Agents, in their sole discretion, may agree.

SECTION 5

Representations and Warranties

To induce the Administrative Agent and each Lender to make the Extensions of Credit requested to be made by it on the Third Amendment Effective Date and on each Borrowing Date thereafter, the Parent Borrower with respect to itself and its Restricted Subsidiaries, hereby represents and warrants, on the Third Amendment Effective Date, in each case after giving effect to the Transactions, and on every Borrowing Date thereafter to the Administrative Agent and each Lender that:

5.1 Financial Condition .

(a) (i) The audited consolidated balance sheets of the Parent Borrower as of December 31, 2015, December 31, 2014 and December 31, 2013 and the related consolidated related statements of operations, comprehensive income (loss) and cash flows for the Fiscal Years ended December 31, 2015, December 31, 2014 and December 31, 2013, reported on by and accompanied by unqualified reports from Ernst & Young LLP; (ii) the unaudited consolidated balance sheets of the Parent Borrower and the related statements of operations, comprehensive income (loss) and cash flows for the fiscal quarter ended September 30, 2016, June 30, 2016 and March 31, 2016, (iii) audited consolidated balance sheets of AmSurg and its Subsidiaries as of December 31, 2015, December 31, 2014 and December 31, 2013 and the related consolidated related statements of earnings and cash flows for the Fiscal Years ended December 31, 2015, December 31, 2014 and December 31, 2013, reported on by and accompanied by unqualified reports from Deloitte & Touche LLP and (iv) the unaudited consolidated balance sheets of AmSurg and its Subsidiaries and the related statements of earnings and cash flows for the fiscal quarter ended September 30, 2016, June 30, 2016 and March 31, 2016. The financial statements referred to in clauses (i) and (ii) above present fairly, in all material respects, the consolidated financial condition as at such dates, and the consolidated statements of operations and consolidated cash flows for the respective Fiscal Years then ended, of Envision Healthcare Holdings, Inc. The financial statements referred to in clauses (iii) and (iv) above present fairly, in all material respects, the consolidated financial condition as at such dates, and the consolidated statements of operations and consolidated cash flows for the respective Fiscal Years then ended, of AmSurg and its Subsidiaries. All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP consistently applied throughout the periods covered thereby (except as approved by a Responsible Officer, and disclosed in any such schedules and notes).

 

112


(b) As of the Third Amendment Effective Date, except as set forth in the financial statements referred to in Subsection 5.1(a) , there are no liabilities of any Loan Party of any kind, whether accrued, contingent, absolute, determined, determinable or otherwise, which could reasonably be expected to result in a Material Adverse Effect.

(c) The pro forma balance sheet and statements of operations of the Parent Borrower, copies of which have heretofore been furnished to each Lender, are the balance sheet and statements of operations of the Parent Borrower and its Subsidiaries as of September 30, 2016, prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of operations), which shall be prepared in all material respects in compliance with Regulation S-X.

(d) The Projections have been prepared by management of the Parent Borrower in good faith based upon assumptions believed by management to be reasonable at the time of preparation thereof (it being understood that such Projections, and the assumptions on which they were based, may or may not prove to be correct).

5.2 No Change; Solvent . Since the Third Amendment Effective Date, except as and to the extent disclosed on Schedule 5.2 , there has been no development or event relating to or affecting any Loan Party which has had or would be reasonably expected to have a Material Adverse Effect (after giving effect to (i) the consummation of the Transactions, (ii) the making of the Extensions of Credit to be made on the Third Amendment Effective Date and the application of the proceeds thereof as contemplated hereby, and (iii) the payment of actual or estimated fees, expenses, financing costs and tax payments related to the Transactions contemplated hereby). As of the Third Amendment Effective Date, after giving effect to the consummation of the transactions described in preceding clauses (i) through (iii) of the preceding sentence, the Parent Borrower, together with its Subsidiaries on a consolidated basis, is Solvent.

5.3 Corporate Existence; Compliance with Law . Each of the Loan Parties (a) except as set forth on Schedule 5.3 , is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation (to the extent applicable in the relevant jurisdiction) except (other than with respect to the Borrowers or any Material Subsidiary), to the extent that the failure to be in good standing would not reasonably be expected to have a Material Adverse Effect, (b) has the legal right to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged, except to the extent that the failure to have such legal right would not be reasonably expected to have a Material Adverse Effect, (c) is duly qualified as a foreign corporation or limited liability company and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification, other than in such jurisdictions where the failure to be so qualified and in good standing would not be reasonably expected to have a Material Adverse Effect and (d) is in compliance with all Requirements of Law, except to the extent that the failure to comply therewith would not, in the aggregate, be reasonably expected to have a Material Adverse Effect.

5.4 Corporate Power; Authorization; Enforceable Obligations . Each Loan Party has the corporate or other organizational power and authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party and, in the case of each of the Borrowers, to obtain Extensions of Credit hereunder, and each such Loan Party has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, in the case of each of the Borrowers, to authorize the Extensions of Credit to it, if any, on the terms and conditions of this Agreement, any Notes and the L/C Requests. No consent or authorization of, filing with, notice to or other similar act by or in respect of, any Governmental Authority or any other

 

113


Person is required to be obtained or made by or on behalf of any Loan Party in connection with the execution, delivery, performance, validity or enforceability of the Loan Documents to which it is a party or, in the case of each of the Borrowers, with the Extensions of Credit to it, if any, hereunder, except for (a) consents, authorizations, notices and filings described in Schedule 5.4 , all of which have been obtained or made prior to the Third Amendment Effective Date, (b) filings to perfect the Liens created by the Security Documents, (c) filings pursuant to the Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq .), in respect of Accounts of the Parent Borrower and its Restricted Subsidiaries the Obligor in respect of which is the United States of America or any department, agency or instrumentality thereof, (d) establishment of assignment of Restricted Government Accounts by or pursuant to the order of a court of competent jurisdiction and (e) consents, authorizations, notices and filings which the failure to obtain or make would not reasonably be expected to have a Material Adverse Effect. This Agreement has been duly executed and delivered by the Parent Borrower and each of the Borrowers, and each other Loan Document to which any Loan Party is a party will be duly executed and delivered on behalf of such Loan Party. This Agreement constitutes a legal, valid and binding obligation of each of the Borrowers and each other Loan Document to which any Loan Party is a party when executed and delivered will constitute a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, in each case except as enforceability may be limited by applicable domestic or foreign bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

5.5 No Legal Bar . The execution, delivery and performance of the Loan Documents by any of the Loan Parties, the Extensions of Credit hereunder and the use of the proceeds thereof (a) will not violate any Requirement of Law or Contractual Obligation of such Loan Party in any respect that would reasonably be expected to have a Material Adverse Effect, (b) will not result in, or require the creation or imposition of any Lien (other than Liens securing the Obligations) on any of its properties or revenues pursuant to any such Requirement of Law or Contractual Obligation and (c) will not violate any provision of the Organizational Documents of such Loan Party or any of the Restricted Subsidiaries, except (other than with respect to the Parent Borrower or any Material Subsidiary) as would not reasonably be expected to have a Material Adverse Effect.

5.6 No Material Litigation . No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Parent Borrower, threatened by or against the Parent Borrower or any of its Restricted Subsidiaries or against any of their respective properties or revenues, (a) except as described on Schedule 5.6 , which is so pending or threatened at any time on or prior to the Third Amendment Effective Date and relates to any of the Loan Documents or any of the transactions contemplated hereby or thereby or (b) which would be reasonably expected to have a Material Adverse Effect.

5.7 No Default . Neither the Parent Borrower nor any of its Restricted Subsidiaries is in default under or with respect to any of its Contractual Obligations in any respect which would be reasonably expected to have a Material Adverse Effect. Since the Third Amendment Effective Date, no Default or Event of Default has occurred and is continuing.

5.8 Ownership of Property; Liens . Each of the Parent Borrower and its Restricted Subsidiaries has good title in fee simple to, or a valid leasehold interest in, all its material real property, and good title to, or a valid leasehold interest in, all its other material property, except those for which the failure to have such good title or have such leasehold interest in would not be reasonably expected to have a Material Adverse Effect, and none of such real or other property is subject to any Lien, except for Permitted Liens.

 

114


5.9 Intellectual Property . The Parent Borrower and each of its Restricted Subsidiaries owns, or has the legal right to use, all United States and foreign patents, patent applications, trademarks, trademark applications, trade names, copyrights, technology, know-how and processes necessary for each of them to conduct its business as currently conducted (the “ Intellectual Property ”) except for those the failure to own or have such legal right to use would not be reasonably expected to have a Material Adverse Effect. Except as provided on Schedule 5.9 , no claim has been asserted and is pending by any Person against the Parent Borrower or any of its Restricted Subsidiaries challenging or questioning the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does the Parent Borrower know of any such claim, and, to the knowledge of the Parent Borrower, the use of such Intellectual Property by the Parent Borrower and its Restricted Subsidiaries does not infringe on the rights of any Person, except for such claims and infringements which in the aggregate, would not be reasonably expected to have a Material Adverse Effect.

5.10 Taxes . To the knowledge of the Parent Borrower, (1) the Parent Borrower and its Restricted Subsidiaries has filed or caused to be filed all material tax returns which are required to be filed by it and has paid (a) all Taxes shown to be due and payable on such returns and (b) all Taxes shown to be due and payable on any assessments of which it has received notice made against it or any of its property and all other Taxes imposed on it or any of its property by any Governmental Authority and (2) no Tax Liens have been filed (except for Liens for Taxes not yet due and payable), and no claim is being asserted in writing, with respect to any such Taxes (in each case other than in respect of any such (i) Taxes with respect to which the failure to pay, in the aggregate, would not have a Material Adverse Effect or (ii) Taxes the amount or validity of which are currently being contested in good faith by appropriate proceedings diligently conducted and with respect to which reserves in conformity with GAAP have been provided on the books of the Parent Borrower or its Restricted Subsidiaries, as the case may be).

5.11 Federal Regulations . No part of the proceeds of any Extensions of Credit will be used for any purpose which violates the provisions of the Regulations of the Board, including without limitation, Regulation T, Regulation U or Regulation X of the Board. If requested by any Lender or the Administrative Agent, the Parent Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U-1, referred to in said Regulation U.

5.12 ERISA .

(a) During the five year period prior to each date as of which this representation is made, or deemed made, with respect to any Plan, none of the following events or conditions, either individually or in the aggregate, has resulted or is reasonably likely to result in a Material Adverse Effect: (i) a Reportable Event; (ii) a failure to satisfy the minimum funding standard (within the meaning of Section 412 of the Code or Section 302 of ERISA); (iii) any noncompliance with the applicable provisions of ERISA or the Code; (iv) a termination of a Single Employer Plan (other than a standard termination pursuant to Section 4041(b) of ERISA); (v) a Lien on the property of the Parent Borrower or its Restricted Subsidiaries in favor of the PBGC or a Plan; (vi) a complete or partial withdrawal from any Multiemployer Plan by the Parent Borrower or any Commonly Controlled Entity; (vii) the Reorganization or Insolvency of any Multiemployer Plan; or (viii) any transactions that resulted or could reasonably be expected to result in any liability to the Parent Borrower or any Commonly Controlled Entity under Section 4069 of ERISA or Section 4212(c) of ERISA.

(b) With respect to any Foreign Plan, none of the following events or conditions exists and is continuing that, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect: (i) substantial non-compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders; (ii) failure to be maintained, where required,

 

115


in good standing with applicable regulatory authorities; (iii) any obligation of the Parent Borrower or its Restricted Subsidiaries in connection with the termination or partial termination of, or withdrawal from, any Foreign Plan; (iv) any Lien on the property of the Parent Borrower or its Restricted Subsidiaries in favor of a Governmental Authority as a result of any action or inaction regarding a Foreign Plan; (v) for each Foreign Plan which is a funded or insured plan, failure to be funded or insured on an ongoing basis to the extent required by applicable non-U.S. law (using actuarial methods and assumptions which are consistent with the valuations last filed with the applicable Governmental Authorities); (vi) any facts that, to the best knowledge of the Parent Borrower or any of its Restricted Subsidiaries, exist that would reasonably be expected to give rise to a dispute and any pending or threatened disputes that, to the best knowledge of the Parent Borrower or any of its Restricted Subsidiaries, would reasonably be expected to result in a material liability to the Parent Borrower or any of its Restricted Subsidiaries concerning the assets of any Foreign Plan (other than individual claims for the payment of benefits); and (vii) failure to make all contributions in a timely manner to the extent required by applicable non-U.S. law.

5.13 Collateral . The Guarantee and Collateral Agreement will be effective to create (to the extent described therein) in favor of the Collateral Agent for the benefit of the Secured Parties, a legal, valid and enforceable security interest in or liens on the Collateral described therein, except as to enforcement, as may be limited by applicable domestic or foreign bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing (and with respect to Restricted Government Accounts, only after assignment thereof has been established by or pursuant to the order of a court of competent jurisdiction). When (a) the actions specified in Schedule 3 to the Guarantee and Collateral Agreement have been duly taken, (b) all applicable Instruments, Chattel Paper and Documents (each as described therein) a security interest in which is perfected by possession have been delivered to, and/or are in the continued possession of, the Collateral Agent and (c) all Deposit Accounts and Pledged Stock (each as defined in the Guarantee and Collateral Agreement) a security interest in which is required to be or is perfected by “control” (as described in the Uniform Commercial Code as in effect in each applicable jurisdiction (in the case of Deposit Accounts) and the State of New York (in the case of Pledged Stock) from time to time) are under the “control” of the Collateral Agent or the Administrative Agent, as agent for the Collateral Agent and as directed by the Collateral Agent, the security interests and liens granted pursuant thereto shall constitute (to the extent described therein), a perfected security interest in (to the extent intended to be created thereby and required to be perfected under the Loan Documents), all right, title and interest of each pledgor or mortgagor (as applicable) party thereto in the Collateral described therein (excluding Commercial Tort Claims, as defined in the Guarantee and Collateral Agreement, other than such Commercial Tort Claims set forth on Schedule 6 thereto (if any)) with respect to such pledgor or mortgagor (as applicable). Notwithstanding any other provision of this Agreement, capitalized terms that are used in this Subsection 5.13 and not defined in this Agreement are so used as defined in the applicable Security Document.

5.14 Investment Company Act; Other Regulations . None of the Borrowers is an “investment company,” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act. None of the Borrowers is subject to regulation under any federal or state statute or regulation (other than Regulation X of the Board) which limits its ability to incur Indebtedness as contemplated hereby.

5.15 Subsidiaries Schedule 5.15 sets forth all the Subsidiaries of the Parent Borrower at the Third Amendment Effective Date (after giving pro forma effect to the Transactions), the jurisdiction of their organization and the direct or indirect ownership interest of the Parent Borrower therein.

 

116


5.16 Purpose of Loans . The proceeds of Revolving Credit Loans and Swingline Loans shall be used by the Borrowers (i) to effect, in part, the Transactions, and to pay certain fees and expenses relating thereto and (ii) to finance the working capital, capital expenditures, business requirements, acquisitions and other general corporate purposes of the Parent Borrower and its Restricted Subsidiaries.

5.17 Environmental Matters . Other than as disclosed on Schedule 5.17 or exceptions to any of the following that would not, individually or in the aggregate, reasonably be expected to give rise to a Material Adverse Effect:

(a) The Parent Borrower and its Restricted Subsidiaries: (i) are, and within the period of all applicable statutes of limitation have been, in compliance with all applicable Environmental Laws; (ii) hold all Environmental Permits (each of which is in full force and effect) required for any of their current operations or for any property owned, leased, or otherwise operated by any of them and reasonably expect to timely obtain without material expense all such Environmental Permits required for planned operations; (iii) are, and within the period of all applicable statutes of limitation have been, in compliance with all of their Environmental Permits; and (iv) believe they will be able to maintain compliance with Environmental Laws, including any reasonably foreseeable future requirements thereto.

(b) Materials of Environmental Concern have not been transported, disposed of, emitted, discharged, or otherwise released or threatened to be released, to or at any real property presently or formerly owned, leased or operated by the Parent Borrower or any of its Restricted Subsidiaries or at any other location, which would reasonably be expected to (i) give rise to liability or other Environmental Costs of the Parent Borrower or any of its Restricted Subsidiaries under any applicable Environmental Law, or (ii) interfere with the planned or continued operations of the Parent Borrower and its Restricted Subsidiaries, or (iii) impair the fair saleable value of any real property owned by the Parent Borrower or any of its Restricted Subsidiaries that is part of the Collateral.

(c) There is no judicial, administrative, or arbitral proceeding (including any notice of violation or alleged violation) under any Environmental Law to which the Parent Borrower or any of its Restricted Subsidiaries is, or to the knowledge of the Parent Borrower or any of its Restricted Subsidiaries is reasonably likely to be, named as a party that is pending or, to the knowledge of the Parent Borrower or any of its Restricted Subsidiaries, threatened.

(d) Neither the Parent Borrower nor any of its Restricted Subsidiaries has received any written request for information, or been notified that it is a potentially responsible party, under the federal Comprehensive Environmental Response, Compensation, and Liability Act or any similar Environmental Law, or received any other written request for information from any Governmental Authority with respect to any Materials of Environmental Concern.

(e) Neither the Parent Borrower nor any of its Restricted Subsidiaries has entered into or agreed to any consent decree, order, or settlement or other agreement, nor is subject to any judgment, decree, or order or other agreement, in any judicial, administrative, arbitral, or other forum, relating to compliance with or liability under any Environmental Law.

5.18 No Material Misstatements . The written information (including the Confidential Information Memorandum), reports, financial statements, exhibits and schedules furnished by or on behalf of the Parent Borrower to the Administrative Agent, the Other Representatives and the Lenders on or prior to the Third Amendment Effective Date in connection with the negotiation of any Loan Document

 

117


or included therein or delivered pursuant thereto, taken as a whole, did not contain as of the Third Amendment Effective Date any material misstatement of fact and did not omit to state as of the Third Amendment Effective Date any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading in their presentation of the Parent Borrower and its Restricted Subsidiaries taken as a whole. It is understood that (a) no representation or warranty is made concerning the forecasts, estimates, pro forma information, projections and statements as to anticipated future performance or conditions, and the assumptions on which they were based or concerning any information of a general economic nature or general information about Parent Borrower’s and its Subsidiaries’ industry, contained in any such information, reports, financial statements, exhibits or schedules, except that, in the case of such forecasts, estimates, pro forma information, projections and statements, as of the date such forecasts, estimates, pro forma information, projections and statements were generated, (i) such forecasts, estimates, pro forma information, projections and statements were based on the good faith assumptions of the management of the Parent Borrower and (ii) such assumptions were believed by such management to be reasonable and (b) such forecasts, estimates, pro forma information and statements, and the assumptions on which they were based, may or may not prove to be correct.

5.19 Labor Matters . There are no strikes pending or, to the knowledge of the Parent Borrower, reasonably expected to be commenced against the Parent Borrower or any of its Restricted Subsidiaries which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. The hours worked and payments made to employees of the Parent Borrower and each of its Restricted Subsidiaries have not been in violation of any applicable laws, rules or regulations, except where such violations would not reasonably be expected to have a Material Adverse Effect.

5.20 Insurance Schedule 5.20 sets forth a complete and correct listing of all insurance that is (a) maintained by the Loan Parties and (b) material to the business and operations of the Parent Borrower and its Restricted Subsidiaries, in each case, taken as a whole as of the Third Amendment Effective Date, with the amounts insured (and any deductibles) set forth therein.

5.21 Eligible Accounts . As of the date of any Borrowing Base Certificate, the Accounts included in the calculation of Eligible Accounts on such Borrowing Base Certificate satisfy in all material respects the requirements of an “Eligible Account” hereunder.

5.22 Eligible Inventory . As of the date of any Borrowing Base Certificate, the Inventory included in the calculation of Eligible Inventory on such Borrowing Base Certificate satisfy in all material respects the requirements of an “Eligible Inventory” hereunder.

5.23 Anti-Terrorism . To the extent applicable, each of the Borrowers and each Restricted Subsidiary is in compliance, in all material respects, with (i) the PATRIOT Act, (ii) the Trading with the Enemy Act, as amended and (iii) any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“ OFAC ”) and any other enabling legislation or executive order relating thereto. Neither the Borrowers, nor any Restricted Subsidiary nor, to the knowledge of the Borrowers, any director, officer or employee of any Borrower or any Restricted Subsidiary, is the target of any U.S. sanctions administered by OFAC or a person on the list of “Specially Designated Nationals and Blocked Persons.” No proceeds of the Loans or Letters of Credit will knowingly be used for the purpose of funding or financing any activities or business of or with any Person that at the time of such funding or financing is either the target of any U.S. sanctions administered by OFAC or a person on the list of “Specially Designated Nationals and Blocked Persons” or in any country or territory that is the target of any U.S. sanctions administered by OFAC. Except as would not reasonably be expected to have a Material Adverse Effect, each of the Borrowers, each Restricted Subsidiary and to the knowledge of the Borrowers, their respective officers and directors, are in compliance with Anti-Corruption Laws. No proceeds of the Loans or the Letters of Credit will knowingly be used by the Borrowers or any Restricted Subsidiary in violation of any Anti-Corruption Law.

 

118


SECTION 6

Conditions Precedent

6.1 [Reserved] .

6.2 Conditions to Each Extension of Credit After the Third Amendment Effective Date . The agreement of each Lender to make any Extension of Credit requested to be made by it on any date after the Third Amendment Effective Date (including each Swingline Loan made after the Third Amendment Effective Date) is subject to the satisfaction or waiver of the following conditions precedent:

(a) Representations and Warranties . Each of the representations and warranties made by any Loan Party pursuant to this Agreement or any other Loan Document (or in any amendment, modification or supplement hereto or thereto) to which it is a party, and each of the representations and warranties contained in any certificate furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any other Loan Document shall, except to the extent that they relate to a particular date, be true and correct in all material respects on and as of such date as if made on and as of such date.

(b) No Default . No Default or Event of Default shall have occurred and be continuing on such date or after giving effect to the Extensions of Credit requested to be made on such date.

(c) Borrowing Notice or L/C Request . With respect to any Borrowing, the Administrative Agent shall have received a notice of such Borrowing as required by Subsection 2.2 or 2.4 , as applicable (or such notice shall have been deemed given in accordance with Subsection 2.2 or 2.4 , as applicable). With respect to the issuance of any Letter of Credit, the applicable Issuing Lender shall have received a L/C Request, completed to its satisfaction, and such other certificates, documents and other papers and information as such Issuing Lender may reasonably request.

Each borrowing of Loans by and each Letter of Credit issued on behalf of any of the Borrowers hereunder shall constitute a representation and warranty by the Parent Borrower as of the date of such borrowing or such issuance that the conditions contained in this Subsection 6.2 have been satisfied (excluding, for the avoidance of doubt, the initial Extensions of Credit hereunder).

 

119


SECTION 7

Affirmative Covenants

The Parent Borrower hereby agrees that, from and after the Third Amendment Effective Date and so long as the Commitments remain in effect, and thereafter until payment in full of the Loans, all Reimbursement Obligations and all other Obligations then due and owing to any Lender or any Agent hereunder and termination or expiration of all Letters of Credit (unless cash collateralized or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent), the Parent Borrower shall and (except in the case of delivery of financial information, reports and notices) shall cause each of its respective Restricted Subsidiaries to:

7.1 Financial Statements . Furnish to the Administrative Agent for delivery to each Lender (and the Administrative Agent agrees to make and so deliver such copies):

(a) as soon as available, but in any event not later than the fifth (5th) Business Day after the ninetieth (90th) day following the end of each Fiscal Year of the Parent Borrower ending on or after the Third Amendment Effective Date, a copy of the consolidated balance sheet of the Parent Borrower as at the end of such year and the related consolidated statements of operations, changes in common stockholders’ equity and cash flows for such year, setting forth in each case, in comparative form, the figures for and as of the end of the previous year, reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by Ernst & Young LLP or other independent certified public accountants of nationally recognized standing not unacceptable to the Administrative Agent in its reasonable judgment (it being agreed that the furnishing of the Parent Borrower’s or any Parent Entity’s annual report on Form 10-K for such year, as filed with the SEC or any successor or analogous Governmental Authority, will satisfy the Parent Borrower’s obligation under this Subsection 7.1(a) with respect to such year except with respect to the requirement that such financial statements be reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit);

(b) as soon as available, but in any event not later than the fifth (5th) Business Day after the forty-fifth (45th) day following the end of each of the first three quarterly periods of each Fiscal Year of the Parent Borrower, the unaudited consolidated balance sheet of the Parent Borrower as at the end of such quarter and the related unaudited consolidated statements of operations and cash flows of the Parent Borrower for such quarter and the portion of the Fiscal Year through the end of such quarter, setting forth in each case in comparative form, the figures for and as of the corresponding periods of the previous year, certified by a Responsible Officer of the Parent Borrower as being fairly stated in all material respects (subject to normal year-end audit and other adjustments) (it being agreed that the furnishing of the Parent Borrower’s or any Parent Entity’s quarterly report on Form 10-Q for such quarter, as filed with the SEC or any successor or analogous Governmental Authority, will satisfy the Parent Borrower’s obligations under this Subsection 7.1(b) with respect to such quarter);

(c) all such financial statements delivered pursuant to Subsection 7.1(a) or (b) (and, in the case of any financial statements delivered pursuant to Subsection 7.1(b) shall be certified by a Responsible Officer of the Parent Borrower to) fairly present in all material respects the financial condition of the Parent Borrower in conformity with GAAP and to be (and, in the case of any financial statements delivered pursuant to Subsection 7.1(b) shall be certified by a Responsible Officer of the Parent Borrower as being) in reasonable detail and prepared in accordance with GAAP applied consistently throughout the periods reflected therein and with prior periods that began on or after the Third Amendment Effective Date (except as disclosed therein, and except, in the case of any financial statements delivered pursuant to Subsection 7.1(b) , for the absence of certain notes); and

(d) to the extent applicable, concurrently with any delivery of consolidated financial statements referred to in Subsections 7.1(a) and (b) above, related unaudited condensed consolidating financial statements and appropriate reconciliations reflecting the material adjustments necessary (as determined by the Parent Borrower in good faith) to eliminate the accounts of Unrestricted Subsidiaries (if any) and, if applicable, any Parent Entity and its Subsidiaries (other than the Parent Borrower and its Subsidiaries) from such consolidated financial statements.

 

120


7.2 Certificates; Other Information . Furnish to the Administrative Agent for delivery to each Lender (and the Administrative Agent agrees to make and so deliver such copies):

(a) during the continuance of any Compliance Period, concurrently with the delivery of the financial statements referred to in Subsection 7.1(a) , a certificate or report of the independent certified public accountants reporting on such financial statements stating that in making the audit necessary therefor no knowledge was obtained of any Default or Event of Default under Subsection 8.1 insofar as the same relates to any financial accounting matters covered by their audit, except as specified in such certificate or report (which certificate or report may be limited in accordance with accounting rules or guidelines or internal policy of the independent certified public accountant);

(b) concurrently with the delivery of the financial statements and reports referred to in Subsections 7.1(a) and (b) , a certificate signed by a Responsible Officer of the Parent Borrower (a “ Compliance Certificate ”) (i) stating that, to the best of such Responsible Officer’s knowledge, the Parent Borrower and its Restricted Subsidiaries during such period has observed or performed all of its covenants and other agreements, and satisfied every condition, contained in this Agreement or the other Loan Documents to which it is a party to be observed, performed or satisfied by it, and that such Responsible Officer has obtained no knowledge of any Default or Event of Default, except, in each case, as specified in such certificate, and (ii) commencing with the Compliance Certificate delivered for the Fiscal Quarter ended on March 31, 2017, setting forth a reasonably detailed calculation of the Consolidated Fixed Charge Coverage Ratio for the Most Recent Four Quarter Period (whether or not a Compliance Period is in effect) and, if applicable, demonstrating compliance with Subsection 8.1 (in the case of a certificate furnished with the financial statements referred to in Subsections 7.1(a) and (b) );

(c) as soon as available, but in any event not later than the fifth (5th) Business Day following the ninetieth (90th) day after the beginning of each Fiscal Year of the Parent Borrower, a copy of the annual business plan by the Parent Borrower of the projected operating budget (including an annual consolidated balance sheet, income statement and statement of cash flows of the Parent Borrower for each Fiscal Quarter of such Fiscal Year prepared in reasonable detail), each such business plan to be accompanied by a certificate signed by a Responsible Officer of the Parent Borrower to the effect that such Responsible Officer believes such projections to have been prepared on the basis of reasonable assumptions at the time of preparation and delivery thereof;

(d) within five (5) Business Days after the same are filed, copies of all financial statements and periodic reports which the Parent Borrower may file with the SEC or any successor or analogous Governmental Authority;

(e) within five (5) Business Days after the same are filed, copies of all registration statements and any amendments and exhibits thereto, which the Parent Borrower may file with the SEC or any successor or analogous Governmental Authority; and

(f) not later than 5:00 P.M., New York City time, on or before the fifteenth (15th) Business Day of each Fiscal Period of the Parent Borrower (or (i) more frequently as the Parent Borrower may elect, so long as the same frequency of delivery is maintained by the Parent Borrower for the immediately following ninety (90) day period or (ii) upon the occurrence and continuance of a Dominion Event, not later than Wednesday of each week), a borrowing base certificate setting forth the Borrowing Base (with supporting calculations) substantially in the form of Exhibit K to the Original Credit Agreement (each, a “ Borrowing Base Certificate ”), which shall

 

121


be prepared as of the last Business Day of the preceding Fiscal Period of the Parent Borrower (or (x) such other applicable date to be agreed by the Parent Borrower and the Security Agents in the case of clause (i) above or (y) the previous Friday in the case of clause (ii) above); provided that a revised Borrowing Base Certificate based on the Borrowing Base Certificate most recently delivered shall be delivered within five (5) Business Days after (1) the consummation of a sale of ABL Priority Collateral not in the ordinary course of business with an aggregate value in excess of $25,000,000 or (2) any merger, consolidation or disposition pursuant to clause (3) or (4) of the last proviso of each of Subsection 8.2(a)(y) or 8.2(b) , as applicable, giving pro forma effect to such sale or such merger, consolidation or disposition, unless, in the case of the preceding clauses (1) and (2), the effect of such event was already reflect on such Borrowing Base Certificate last delivered. Each such Borrowing Base Certificate shall include such supporting information as may be reasonably requested from time to time by the Security Agents;

(g) promptly, such additional financial and other information as any Agent or Lender may from time to time reasonably request;

(h) promptly upon reasonable request from the Administrative Agent calculations of EBITDA and other Fixed GAAP Terms as reasonably requested by the Administrative Agent upon receipt of a written notice from the Parent Borrower electing to change the Fixed GAAP Date, which calculations shall show the calculations of the respective Fixed GAAP Terms after giving effect to the change in the Fixed GAAP Date and identify the material change(s) in GAAP giving rise to the change in such calculations;

(i) not later than 5:00 P.M., New York City time, on or before the fifteenth (15th) Business Day after the end of the second Fiscal Period in each Fiscal Quarter (or on such other date as the Parent Borrower and the Security Agents shall agree) and in any event not less frequently than once every three months, (i) an updated AMR Accounts Historical Collection Analysis showing, separately historical percentage collection data for Self-Pay Accounts and Third Party Payor Accounts, (ii) an updated EmCare Projected Collection Analysis for 0-180 Days and an EmCare Projected Collection Analysis for 180-360 Days showing projected collection data for EmCare General Accounts and (iii) an updated Cash Analysis, in form, substance and detail previously agreed with the Administrative Agent, in each case as of such date; and

(j) during a Dominion Event, if requested by the Security Agents, no less frequently than once per month, a consolidating balance sheet (including net accounts receivable for the AMR Business and the EmCare Business) for the Parent Borrower prepared as of the end of the relevant Fiscal Period, as soon as available and in any event not later than the fifteenth (15th) day after the end of such Fiscal Period or promptly following the commencement of such Dominion Event and request for such consolidating balance sheet if the Dominion Event commences on or after the fifteenth (15th) day of such Fiscal Period, commencing with the Fiscal Period most recently ended prior to the date on which such Dominion Event commenced for which such consolidating balance sheet is then available and for each subsequent Fiscal Period ending during such Dominion Event.

Documents required to be delivered pursuant to Subsection 7.1 or 7.2 may at the Parent Borrower’s option be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (i) on which the Parent Borrower posts such documents, or provides a link thereto on the Parent Borrower’s (or any Parent Entity’s) website on the Internet at the website address listed on Schedule 7.2 (or such other website address as the Parent Borrower may specify by written notice to the Administrative Agent from time to time); or (ii) on which such documents are posted on the Parent Borrower’s (or any Parent Entity’s) behalf on an Internet or intranet website to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent).

 

122


7.3 Payment of Obligations . Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all taxes, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings diligently conducted and reserves in conformity with GAAP with respect thereto have been provided on the books of the Parent Borrower or any of its Restricted Subsidiaries, as the case may be, and except in each case to the extent that failure to do so, in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

7.4 Conduct of Business and Maintenance of Existence; Compliance with Contract u al Obl i gations and Requirements of Law . Preserve, renew and keep in full force and effect its existence and take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of the business of the Parent Borrower and its Restricted Subsidiaries, taken as a whole, except as otherwise permitted pursuant to Subsection 8.2 , 8.4 or 8.5 , provided that the Parent Borrower and its Restricted Subsidiaries shall not be required to maintain any such rights, privileges or franchises and the Parent Borrower’s Restricted Subsidiaries shall not be required to maintain such existence, if the failure to do so would not reasonably be expected to have a Material Adverse Effect; and comply with all Contractual Obligations and Requirements of Law except to the extent that failure to comply therewith, in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

7.5 Maintenance of Property; Insurance .

(a) (i) Keep all property useful and necessary in the business of the Parent Borrower and its Restricted Subsidiaries, taken as a whole, in good working order and condition, except where failure to do so would not reasonably be expected to have a Material Adverse Effect; (ii) maintain with financially sound and reputable insurance companies (or any Captive Insurance Subsidiary) insurance on, or self-insure, all property material to the business of the Parent Borrower and its Restricted Subsidiaries, taken as a whole, in at least such amounts and against at least such risks (but including in any event public liability and business interruption) as are usually insured against in the same general area by companies engaged in the same or a similar business; (iii) furnish to the Security Agents, upon written request, information in reasonable detail as to the insurance carried; (iv) use commercially reasonable efforts to maintain property and liability policies that provide that in the event of any cancellation thereof during the term of the policy, either by the insured or by the insurance company, the insurance company shall provide to the secured party at least thirty (30) days prior written notice thereof, or in the case of cancellation for non-payment of premium, ten (10) days prior written notice thereof; (v) in the event of any material change in any of the property or liability policies referenced in the preceding clause (iv), use commercially reasonable efforts to provide the Security Agents with at least thirty (30) days prior written notice thereof, and (vi) use commercially reasonable efforts to ensure that, subject to the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement at all times the Collateral Agent for the benefit of the Secured Parties, shall be named as an additional insured with respect to liability policies and the Collateral Agent for the benefit of the Secured Parties, shall be named as loss payee with respect to the property insurance maintained by each Borrower and each Subsidiary Guarantor; provided that, unless an Event of Default or a Dominion Event shall have occurred and be continuing, (A) the Collateral Agent shall turn over to the Parent Borrower any amounts received by it as loss payee under any property insurance maintained by the Parent Borrower and its Restricted Subsidiaries, (B) the Collateral Agent agrees that the Parent Borrower and/or the applicable Subsidiary shall have the sole right to adjust or settle any claims under such insurance and (C) all proceeds from a Recovery Event shall be paid to the Parent Borrower.

 

123


7.6 Inspection of Property; Books and Records; Discussions .

(a) (i) In the case of the Parent Borrower, keep proper books of records in a manner to allow financial statements to be prepared in conformity with GAAP consistently applied in respect of all material financial transactions and matters involving the material assets and business of the Parent Borrower and its Restricted Subsidiaries, taken as a whole; and (ii) permit representatives of the Security Agents to visit and inspect any of its properties and examine and, to the extent reasonable, make abstracts from any of its books and records and to discuss the business, operations, properties and financial and other condition of the Parent Borrower and its Restricted Subsidiaries with officers of the Parent Borrower and its Restricted Subsidiaries and with its independent certified public accountants, in each case at any reasonable time, upon reasonable notice, and as often as may reasonably be desired; provided that representatives of the Parent Borrower may be present during any such visits, discussions and inspections. Each Borrower shall keep records of its Inventory in accordance with past practice and shall furnish the Security Agents on an annual basis, upon request of the Security Agents, with a summary showing inventory balance per site (and costing of inventory) or, if a Dominion Event has occurred and is continuing, more frequently as reasonably requested by the Security Agents, in form and substance substantially consistent with the Parent Borrower’s past practice or in such other form and substance as the Security Agents may otherwise consent (such consent not to be unreasonably withheld, conditioned or delayed) together with such supporting information (including count sheets) as the Security Agents shall reasonably request. Each Borrower shall, at such Borrower’s expense, conduct a physical inventory and costing of its Inventory on an annual basis substantially consistent with past practice or in such other manner as the Security Agents may otherwise consent (such consent not to be unreasonably withheld, conditioned or delayed). The summary referred to in the second preceding sentence shall be based on such physical inventory and costing.

(b) At reasonable times during normal business hours and upon reasonable prior notice that the Security Agents request, independently of or in connection with the visits and inspections provided for in clause (a) above, the Parent Borrower and its Restricted Subsidiaries will grant access to the Security Agents (including employees of the Security Agents or any consultants, accountants, lawyers and appraisers retained by the Security Agents) to such Person’s premises, books, records and accounts so that (i) the Security Agents or an appraiser retained by the Security Agents may conduct (or engage third parties to conduct) such field examinations, verifications and evaluations (including environmental assessments) as the Security Agents may deem reasonably necessary or appropriate, including evaluation of the Parent Borrower’s practices in the computation of the Borrowing Base. Unless an Event of Default exists, or if previously approved by the Parent Borrower, no environmental assessment by the Security Agents may include any sampling or testing of the soil, surface water or groundwater. The Security Agents may conduct one (1) field examination in each calendar year in each case for all of the Loan Parties each at the Loan Parties’ expense; provided that, the Security Agents may conduct up to two (2) field examinations in a calendar year if Excess Availability falls below 30.0% of Availability for five (5) consecutive Business Days at any time in such calendar year, each at the Loan Parties’ expense. Notwithstanding anything to the contrary contained herein, after the occurrence and during the continuance of any Event of Default, the Security Agents may cause such additional field examinations to be taken for each of the Loan Parties as the Security Agents in their reasonable discretion determines are necessary or appropriate (each, at the expense of the Loan Parties). All amounts chargeable to the applicable Borrowers under this Subsection 7.6(b) shall constitute obligations that are secured by all of the applicable Collateral and shall be payable to the Agents hereunder.

(c) During the course of the above-described visits, inspections, examinations and discussions, representatives of the Security Agents and the Lenders may encounter individually identifiable healthcare information as defined under the Administrative Simplification (including privacy and security) regulations promulgated pursuant to the Health Insurance Portability and Accountability Act of

 

124


1996, as amended (collectively, “ HIPAA ”), or other confidential information relating to healthcare patients whether protected under HIPAA or otherwise (collectively, the “ Confidential Healthcare Information ”). The Parent Borrower or any Restricted Subsidiary shall, consistent with HIPAA’s “minimum necessary” provisions, permit such disclosure of Confidential Healthcare Information to representatives of the Security Agents or the Lenders for their “healthcare operations” purposes only to the extent permissible under applicable laws, regulations or ordinances intended to protect the privacy rights of healthcare patients, including, without limitation, HIPAA and its “minimum necessary” provision. Unless otherwise required by law, the Security Agents, the Lenders and their respective representatives shall not require or perform any act that would cause the Parent Borrower or any of its Subsidiaries to violate any laws, regulations or ordinances intended to protect the privacy rights of healthcare patients, including, without limitation, HIPAA.

7.7 Notices . Promptly give notice to the Administrative Agent and each Lender of:

(a) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, the occurrence of any Default or Event of Default;

(b) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, any default or event of default under any Contractual Obligation of the Parent Borrower or any of its Restricted Subsidiaries, other than as previously disclosed in writing to the Lenders, which, if not cured, would reasonably be expected to have a Material Adverse Effect;

(c) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, the occurrence of (i) any default or event of default under the Term Loan Credit Agreement or the Senior Notes Indenture (or any agreement or indenture governing refinancing Indebtedness in respect of the Senior Notes, in each case relating to Indebtedness in an aggregate principal amount equal to or greater than $150,000,000) or (ii) any payment default under any Additional Obligations Documents or under any agreement or document governing other Indebtedness, in each case relating to Indebtedness in an aggregate principal amount equal to or greater than $150,000,000;

(d) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, any litigation, investigation or proceeding affecting the Parent Borrower or any of its Restricted Subsidiaries that would reasonably be expected to have a Material Adverse Effect;

(e) the following events, as soon as possible and in any event within thirty (30) days after a Responsible Officer of the Parent Borrower knows thereof: (i) the occurrence or expected occurrence of any Reportable Event (or similar event) with respect to any Single Employer Plan (or Foreign Plan), a failure to make any required contribution to a Single Employer Plan, Multiemployer Plan or Foreign Plan, the creation of any Lien on the property of the Parent Borrower or its Restricted Subsidiaries in favor of the PBGC, a Plan or a Foreign Plan or any withdrawal from, or the full or partial termination, Reorganization or Insolvency of, any Multiemployer Plan or Foreign Plan; (ii) the institution of proceedings or the taking of any other formal action by the PBGC or the Parent Borrower or any of its Restricted Subsidiaries or any Commonly Controlled Entity or any Multiemployer Plan which would reasonably be expected to result in the withdrawal from, or the termination, Reorganization or Insolvency of, any Single Employer Plan, Multiemployer Plan or Foreign Plan; provided , however , that no such notice will be required under clause (i) or (ii) above unless the event giving rise to such notice, when aggregated with all other such events under clause (i) or (ii) above, would be reasonably expected to result in a Material Adverse Effect; or (iii) the first occurrence after the Third Amendment Effective Date of an Underfunding under a Single Employer Plan or Foreign Plan that exceeds 10% of the value of the assets of such

 

125


Single Employer Plan or Foreign Plan, in each case, determined as of the most recent annual valuation date of such Single Employer Plan or Foreign Plan on the basis of the actuarial assumptions used to determine the funding requirements of such Single Employer Plan or Foreign Plan as of such date;

(f) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, (i) any release or discharge by the Parent Borrower or any of its Restricted Subsidiaries of any Materials of Environmental Concern required to be reported under applicable Environmental Laws to any Governmental Authority, unless the Parent Borrower reasonably determines that the total Environmental Costs arising out of such release or discharge would not reasonably be expected to have a Material Adverse Effect; (ii) any condition, circumstance, occurrence or event not previously disclosed in writing to the Administrative Agent that would reasonably be expected to result in liability or expense under applicable Environmental Laws, unless the Parent Borrower reasonably determines that the total Environmental Costs arising out of such condition, circumstance, occurrence or event would not reasonably be expected to have a Material Adverse Effect, or would not reasonably be expected to result in the imposition of any lien or other material restriction on the title, ownership or transferability of any facilities and properties owned, leased or operated by the Parent Borrower or any of its Restricted Subsidiaries that would reasonably be expected to result in a Material Adverse Effect; and (iii) any proposed action to be taken by the Parent Borrower or any of its Restricted Subsidiaries that would reasonably be expected to subject the Parent Borrower or any of its Restricted Subsidiaries to any material additional or different requirements or liabilities under Environmental Laws, unless the Parent Borrower reasonably determines that the total Environmental Costs arising out of such proposed action would not reasonably be expected to have a Material Adverse Effect;

(g) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, any loss, damage, or destruction to a significant portion of the ABL Priority Collateral, whether or not covered by insurance; and

(h) as soon as possible after a Responsible Officer of the Parent Borrower knows of any notice thereof from a depositary or other financial institution, details of any cancellation or suspension of any sweep or transfer from a Related Corporation DDA or a Related Corporation Concentration Account that is instructed by a physician bank account signatory and a reasonably detailed explanation of the steps being taken as a result thereof.

Each notice pursuant to this Subsection 7.7 shall be accompanied by a statement of a Responsible Officer of the Parent Borrower (and, if applicable, the relevant Commonly Controlled Entity or Restricted Subsidiary) setting forth details of the occurrence referred to therein and stating what action the Parent Borrower (or, if applicable, the relevant Commonly Controlled Entity or Restricted Subsidiary) proposes to take with respect thereto.

7.8 Environmental Laws .

(a) (i) Comply substantially with, and require substantial compliance by all tenants, subtenants, contractors, and invitees with, all applicable Environmental Laws; (ii) obtain, comply substantially with and maintain any and all Environmental Permits necessary for its operations as conducted and as planned; and (iii) require that all tenants, subtenants, contractors, and invitees obtain, comply substantially with and maintain any and all Environmental Permits necessary for their operations as conducted and as planned, with respect to any property leased or subleased from, or operated by the Parent Borrower or its Restricted Subsidiaries. For purposes of this Subsection 7.8(a) , noncompliance shall not constitute a breach of this covenant; provided , that upon learning of any actual or suspected noncompliance, the

 

126


Parent Borrower and any such affected Restricted Subsidiary shall promptly undertake and diligently pursue reasonable efforts, if any, to achieve compliance; and provided , further , that in any case such noncompliance would not reasonably be expected to have a Material Adverse Effect.

(b) Promptly comply, in all material respects, with all orders and directives of all Governmental Authorities regarding Environmental Laws, other than such orders or directives (i) as to which the failure to comply would not reasonably be expected to result in a Material Adverse Effect or (ii) as to which: (x) appropriate reserves have been established in accordance with GAAP; (y) an appeal or other appropriate contest is or has been timely and properly taken and is being diligently pursued in good faith; and (z) if the effectiveness of such order or directive has not been stayed, the failure to comply with such order or directive during the pendency of such appeal or contest would not reasonably be expected to have a Material Adverse Effect.

7.9 Subsidiaries .

(a) [Reserved].

(b) With respect to (i) any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than (x) an Excluded Subsidiary and (y) a Subsidiary that will be (and, unless the Security Agents shall otherwise agree in their sole discretion, within 90 days following its creation or acquisition, is) converted into a Related Professional Corporation in a manner consistent with past practices on or prior to the Third Amendment Effective Date or in the ordinary course of business) created or acquired (including by reason of any Foreign Subsidiary Holdco ceasing to constitute same) subsequent to the Third Amendment Effective Date by the Parent Borrower or any of its Domestic Subsidiaries that are Wholly Owned Subsidiaries (other than an Excluded Subsidiary), (ii) any Unrestricted Subsidiary that is a Wholly Owned Subsidiary being designated as a Restricted Subsidiary (and not otherwise constituting an Excluded Subsidiary), (iii) any Excluded Subsidiary that is a Wholly Owned Subsidiary ceasing to be an “Excluded Subsidiary” as provided in the definition thereof after the expiry of any applicable period referred to in such definition and (iv) any entity becoming a Domestic Subsidiary that is a Wholly Owned Subsidiary as a result of a transaction pursuant to, and permitted by, Subsection 8.2 or 8.4 (other than an Excluded Subsidiary or a Subsidiary of the type described in sub-clause (y) of the first parenthetical in the preceding clause (i)), promptly notify the Security Agents of such occurrence and, if the Security Agents or the Required Lenders so request, promptly (i) execute and deliver to the Collateral Agent for the benefit of the Secured Parties such amendments to the Guarantee and Collateral Agreement as the Collateral Agent shall reasonably deem necessary or reasonably advisable to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected second priority security interest in accordance with the terms of the ABL/Term Loan Intercreditor Agreement (as and to the extent provided in the Guarantee and Collateral Agreement) in the Capital Stock of such new Domestic Subsidiary, (ii) deliver to the Collateral Agent the certificates (if any) representing such Capital Stock, together with undated stock powers, executed and delivered in blank by a duly authorized officer of the parent of such new Domestic Subsidiary that is directly owned by any Borrower or any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than any Excluded Subsidiary and other than a Subsidiary that will be (and, unless the Security Agents shall otherwise agree in their sole discretion, within 90 days following its creation or acquisition, is) converted into a Related Professional Corporation in a manner consistent with past practices on or prior to the Third Amendment Effective Date or in the ordinary course of business) and (iii) cause such new Domestic Subsidiary (A) to become a party to the Guarantee and Collateral Agreement and (B) to take all actions reasonably deemed by the Security Agents to be necessary or advisable to cause the Lien created by the Guarantee and Collateral Agreement in such new Domestic Subsidiary’s Collateral to be duly perfected in accordance with all applicable Requirements of Law (as and to the extent provided in the Guarantee and Collateral Agreement), including the filing of financing statements in such jurisdictions as may be reasonably requested by the Collateral Agent. In addition, the Parent Borrower may cause any Domestic

 

127


Subsidiary that is a Restricted Subsidiary that is not required to become a Subsidiary Guarantor to become a Subsidiary Guarantor by taking the actions provided above applicable to Domestic Subsidiaries that are required to become Subsidiary Guarantors.

(c) With respect to any Foreign Subsidiary or Domestic Subsidiary that is not a Wholly Owned Subsidiary created or acquired subsequent to the Third Amendment Effective Date by the Parent Borrower or any of its Domestic Subsidiaries that are Wholly Owned Subsidiaries (in each case, other than any Excluded Subsidiary and other than a Subsidiary that will be (and, unless the Security Agents shall otherwise agree in their sole discretion, within 90 days following its creation or acquisition, is) converted into a Related Professional Corporation in a manner consistent with past practices on or prior to the Third Amendment Effective Date or in the ordinary course of business), the Capital Stock of which is owned directly by the Parent Borrower or a Domestic Subsidiary that is a Wholly Owned Subsidiary (other than an Excluded Subsidiary or a Subsidiary referred to in the immediately preceding parenthetical), promptly notify the Security Agents of such occurrence and if the Security Agents or the Required Lenders so request, promptly (i) execute and deliver to the Collateral Agent a new pledge agreement or such amendments to the Guarantee and Collateral Agreement as the Collateral Agent shall reasonably deem necessary or reasonably advisable to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected second priority security interest in accordance with the terms of the ABL/Term Loan Intercreditor Agreement (as and to the extent provided in the Guarantee and Collateral Agreement) in the Capital Stock of such new Subsidiary that is directly owned by any Borrower or any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than an Excluded Subsidiary or a Subsidiary referred to in the third preceding parenthetical) and (ii) to the extent reasonably deemed advisable by the Security Agents, deliver to the Collateral Agent the certificates, if any, representing such Capital Stock, together with undated stock powers, executed and delivered in blank by a duly authorized officer of the relevant parent of such new Subsidiary and take such other action as may be reasonably deemed by the Security Agents to be necessary or desirable to perfect the Collateral Agent’s security interest therein (in each case as and to the extent required by the Guarantee and Collateral Agreement); provided that in either case in no event shall more than 65.0% of each series of Capital Stock of any new Foreign Subsidiary be required to be so pledged and, provided , further , that in either case no such pledge or security shall be required with respect to any Subsidiary that is not a Wholly Owned Subsidiary and a Restricted Subsidiary to the extent that the grant of such pledge or security interest would violate the terms of any agreements under which the Investment by the Parent Borrower or any of its Restricted Subsidiaries was made therein.

(d) At its own expense, execute, acknowledge and deliver, or cause the execution, acknowledgement and delivery of, and thereafter register, file or record in an appropriate governmental office, any document or instrument reasonably deemed by the Security Agents to be necessary or desirable for the creation, perfection and priority and the continuation of the validity, perfection and priority of the foregoing Liens or any other Liens created pursuant to the Security Documents (to the extent the Security Agents determine, in their reasonable discretion, that such action is required to ensure the perfection or the enforceability as against third parties of its security interest in such Collateral) in each case in accordance with, and to the extent required by, the Guarantee and Collateral Agreement.

(e) Notwithstanding anything to the contrary in this Agreement, (A) the foregoing requirements shall be subject to the terms of the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement and, in the event of any conflict with such terms, the terms of the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement, as applicable, shall control, (B) no security interest is or will be granted pursuant to any Loan Document or otherwise in any right, title or interest of any of the Parent Borrower or any of its Subsidiaries in, and “Collateral” shall not include, any Excluded Asset (as defined in the Guarantee and Collateral Agreement); (C) no Loan Party or any Affiliate thereof shall be

 

128


required to take any action in any non-U.S. jurisdiction or required by the laws of any non-U.S. jurisdiction in order to create any security interests in assets located or titled outside of the U.S. or to perfect any security interests (it being understood that there shall be no security agreements or pledge agreements governed under the laws of any non-U.S. jurisdiction) and (D) nothing in this Subsection 7.9 shall require that any Subsidiary grant a Lien with respect to any property or assets in which such Subsidiary acquires ownership rights to the extent that the Administrative Agent, in its reasonable judgment, determines that the granting of such a Lien is impracticable.

7.10 Use of Proceeds . Use the proceeds of the Loans only for the purposes set forth in Subsection 5.16 and request the issuance of Letters of Credit only for the purposes set forth in Subsection 3.1(b) .

7.11 Accounting Changes . The Parent Borrower will, for financial reporting purposes, cause the Parent Borrower’s and each of its Subsidiaries’ Fiscal Years to end on December 31st of each calendar year; provided that the Parent Borrower may, upon written notice to the Administrative Agent, change the financial reporting convention specified above to any other financial reporting convention reasonably acceptable to the Administrative Agent, in which case the Parent Borrower and the Administrative Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary in order to reflect such change in financial reporting.

7.12 [Reserved] .

7.13 [Reserved] .

7.14 [Reserved] .

SECTION 8

Negative Covenants

The Parent Borrower hereby agrees that, from and after the Third Amendment Effective Date and so long as the Commitments remain in effect, and thereafter until payment in full of the Loans, all Reimbursement Obligations and all other Obligations then due and owing to any Lender or any Agent and termination or expiration of all Letters of Credit (unless cash collateralized or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent), the Parent Borrower shall not and shall not permit any of its Restricted Subsidiaries to, directly or indirectly:

8.1 Financial Condition Covenant . During each Compliance Period, permit, for the Most Recent Four Quarter Period, the Consolidated Fixed Charge Coverage Ratio as at the last day of such period of four (4) consecutive Fiscal Quarters to be less than 1.00 to 1.00.

8.2 Limitation on Fundamental Changes . Enter into any merger or consolidation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer or otherwise dispose of, all or substantially all of its property, business or assets, except:

(a) (x) any Borrower may be merged or consolidated with or into another Person if a Borrower is the surviving Person or the Person (the “ Successor Borrower ”) formed by or surviving such merger or consolidation (i) is organized or existing under the laws of the United States, or any state, district or territory thereof and (ii) expressly assumes all obligations of such Borrower under the Loan Documents pursuant to documentation reasonably satisfactory to the Administrative Agent after, solely with respect to a Successor Borrower that is not a Loan Party as of the

 

129


Third Amendment Effective Date, such Successor Borrower provides all information at least 3 Business Days prior to the date of such merger or consolidation as may be reasonably requested in writing by the Administrative Agent at least 10 days prior to such merger or consolidation in order to comply with applicable “know your customer” requirements established by U.S. regulatory authorities); provided that (i) immediately after giving effect to the transaction (and treating any Indebtedness that becomes an Obligation of the Successor Borrower as a result of such transaction as having been incurred by the Successor Borrower at the time of such transaction), no Default will have occurred and be continuing, (ii) each Subsidiary Guarantor (other than (x) any Subsidiary Guarantor that will be released from its obligations under its Subsidiary Guaranty in connection with such transaction and (y) any party to any such consolidation or merger) shall have delivered a joinder or other document or instrument in form reasonably satisfactory to the Security Agents, confirming its Subsidiary Guaranty (other than any Subsidiary Guaranty that will be discharged or terminated in connection with such transaction) and (iii) each Subsidiary Guarantor (other than (x) any Subsidiary that will be released from its grant or pledge of Collateral under the Guarantee and Collateral Agreement in connection with such transaction and (y) any party to any such consolidation or merger) shall have by a supplement to the Guarantee and Collateral Agreement or another document or instrument affirmed that its obligations thereunder shall apply to its Guarantee as reaffirmed pursuant to clause (ii) above; and (y) any Restricted Subsidiary of the Parent Borrower other than any Borrower may be merged or consolidated with or into the Parent Borrower ( provided that the Parent Borrower shall be the continuing or surviving entity) or with or into any one or more Restricted Subsidiaries that are Wholly Owned Subsidiaries of the Parent Borrower ( provided that the Wholly Owned Subsidiary or Restricted Subsidiaries of the Parent Borrower shall be the continuing or surviving entity); provided that (x) in any case where the Subsidiary that is the non-surviving entity is a Loan Party and such Subsidiary’s assets include real property owned by such Loan Party or Voting Stock of any other Loan Party, or (y) if such merger or consolidation constitutes (alone or together with any related merger or consolidation by any Loan Party) a transfer of all or substantially all of the assets of the Domestic Subsidiaries that are Loan Parties, then in the case of either (x) or (y), (1) the continuing or surviving entity shall be a Loan Party, or (2) such merger or consolidation shall be in the ordinary course of business, or (3) if the continuing or surviving entity is not a Loan Party, the Fair Market Value of all such assets transferred by a Loan Party pursuant to this clause (3) does not exceed $35,000,000 in any Fiscal Year or (4) at the time of such merger or consolidation, (A) the Payment Condition in respect of merger or consolidation is satisfied and (B) no Specified Default or other Event of Default known to the Parent Borrower has occurred and is continuing or would result therefrom;

(b) any Restricted Subsidiary of the Parent Borrower may sell, lease, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation or otherwise) to the Parent Borrower or any Restricted Subsidiary that is a Wholly Owned Subsidiary of the Parent Borrower (and, in the case of a non-Wholly Owned Subsidiary, may be liquidated to the extent the Parent Borrower or any Wholly Owned Subsidiary which is a direct parent of such non-Wholly Owned Subsidiary receives a pro rata distribution of the assets thereof); provided that if the Subsidiary that disposes of any or all of its assets is a Loan Party and such disposition includes real property owned by such Loan Party or Voting Stock of any other Loan Party, or constitutes (alone or together with any related disposition of assets by any Loan Party) all or substantially all of the assets of the Domestic Subsidiaries that are Loan Parties, (1) the transferee of such assets shall be a Loan Party, or (2) such disposition shall be in the ordinary course of business, or (3) if the transferee of such assets is not a Loan Party, the Fair Market Value of all such assets transferred by a Loan Party pursuant to this clause (3) does not exceed $35,000,000 in any Fiscal Year or (4) at the time of such sale, lease, transfer or other disposition, (A) the Payment Condition in respect of asset sales is satisfied and (B) no Specified Default or other Event of Default known to the Parent Borrower has occurred and is continuing or would result therefrom;

 

130


(c) to the extent such sale, lease, transfer or other disposition or transaction is expressly excluded from the definition of “Asset Sale” or, if such sale, lease transfer or other disposition or transaction constitutes an “Asset Sale,” such Asset Sale is made in compliance with Subsection 8.5 ;

(d) the Parent Borrower or any Restricted Subsidiary may be merged or consolidated with or into any other Person in order to effect any acquisition permitted pursuant to Subsection 8.4 ;

(e) any Restricted Subsidiary acquired after the Third Amendment Effective Date (whether by merger, consolidation, amalgamation, asset purchase or otherwise) may be converted into a Related Corporation; or

(f) in connection with the Transactions.

For purposes of this Subsection 8.2 , so long as at the time of any Minority Business Disposition or any Minority Business Offering, (x) the Payment Condition is satisfied and (y) no Specified Default or Event of Default known to the Parent Borrower exists or would arise therefrom, the Minority Business Assets shall not be deemed at any time to constitute all or substantially all of the assets of the Company, and any sale or transfer of all or any part of the Minority Business Assets (whether directly or indirectly, whether by sale or transfer of any such assets, or of any Capital Stock or other interest in any Person holding such assets, or any combination thereof, and whether in one or more transactions, or otherwise, including any Minority Business Offering or any Minority Business Disposition) shall not be prevented or otherwise restricted by the terms of this Subsection 8.2 .

8.3 Limitation on Restricted Payments . Declare or pay any Restricted Payment, except that:

(a) the Parent Borrower may pay cash dividends, payments and distributions in an amount sufficient to allow any Parent Entity to pay legal, accounting and other maintenance and operational expenses (other than taxes) incurred in the ordinary course of business, provided that, if any Parent Entity shall own any material assets other than the Capital Stock of the Parent Borrower or another Parent Entity or other assets, relating to the ownership interest of such Parent Entity in another Parent Entity, the Parent Borrower or its Subsidiaries, such cash dividends with respect to such Parent Entity shall be limited to the reasonable and proportional share, as determined by the Parent Borrower in its reasonable discretion, of such expenses incurred by such Parent Entity relating or allocable to its ownership interest in the Parent Borrower or another Parent Entity and such other related assets;

(b) the Parent Borrower may pay cash dividends, payments and distributions in an amount sufficient to cover reasonable and necessary expenses (including professional fees and expenses) (other than taxes) incurred by any Parent Entity in connection with (i) registration, public offerings and exchange listing of equity or debt securities and maintenance of the same, (ii) reporting obligations under, or in connection with compliance with, applicable laws or applicable rules of any governmental, regulatory or self-regulatory body or stock exchange, this Agreement, the Term Loan Documents, the Senior Notes Debt Documents or any other agreement or instrument relating to Indebtedness of any Loan Party or any of the Restricted Subsidiaries and (iii) indemnification and reimbursement of directors, officers and employees in respect of liabilities relating

 

131


to their serving in any such capacity, or obligations in respect of director and officer insurance (including premiums therefor), provided that, in the case of subclause (i) above, if any Parent Entity shall own any material assets other than the Capital Stock of the Parent Borrower or another Parent Entity or other assets relating to the ownership interest of such Parent Entity in another Parent Entity, the Parent Borrower or its Subsidiaries, with respect to such Parent Entity such cash dividends shall be limited to the reasonable and proportional share, as determined by the Parent Borrower in its reasonable discretion, of such expenses incurred by such Parent Entity relating or allocable to its ownership interest in another Parent Entity, the Parent Borrower and such other assets;

(c) the Parent Borrower may pay, without duplication, cash dividends, payments and distributions (A) pursuant to any tax sharing agreement with any Parent Entity; and (B) to pay or permit any Parent Entity to pay any Related Taxes;

(d) [reserved];

(e) the Parent Borrower may pay cash dividends, payments and distributions in an amount sufficient to repurchase or to allow any Parent Entity to repurchase shares of its Capital Stock or rights, options or units in respect thereof from any Management Investors or former Management Investors (or any of their respective heirs, successors, assigns, legal representatives or estates) (including any repurchase or acquisition by reason of the Parent Borrower or any Parent Entity retaining any Capital Stock, option, warrant or other right in respect of any withholding obligations, and any related payment in respect of any such obligations), or as otherwise contemplated by any Management Subscription Agreements for an aggregate purchase price not to exceed in any calendar year $50,000,000; provided that such amount shall be increased by (A) an amount equal to the proceeds to the Parent Borrower or any Parent Entity of any resales or new issuances of shares and options to any Management Investors, at any time after the initial issuances to any Management Investors, together with the aggregate amount of deferred compensation owed by any Parent Entity the Parent Borrower or any of its Subsidiaries to any Management Investor that shall thereafter have been cancelled, waived or exchanged at any time after the initial issuances to any thereof in connection with the grant to such Management Investor of the right to receive or acquire shares of the Parent Borrower’s or any Parent Entity’s Capital Stock; provided , however , that, if applicable, any amount actually received by any Parent Entity in accordance with this clause (A) shall have been further contributed to the Parent Borrower or applied (i) to pay expenses, taxes or other amounts (in respect of which the Parent Borrower is permitted to make dividends, payments or distributions pursuant to this Subsection 8.3 ) or (ii) in payment of Parent Entity Expenses; and (B) the cash proceeds of key man life insurance policies received by the Parent Borrower or any of its Subsidiaries (or by any Parent Entity and contributed to the Parent Borrower);

(f) the Parent Borrower may pay dividends, payments and distributions to the extent of Net Proceeds from any Excluded Contribution to the extent such dividend, payment or distribution is made (regardless of whether any Default or Event of Default has occurred and is continuing) within one hundred and eighty (180) days of the date when such Excluded Contribution was received by the Parent Borrower; provided that any payment pursuant to this Subsection 8.3(f) shall be deemed to be a usage of the Available Excluded Contribution Amount Basket;

(g) the Parent Borrower may pay dividends, payments and distributions in an amount not to exceed the Available Excluded Contribution Amount Basket, (i) for purposes permitted under Subsection 8.3(e) if at the time such dividend, payment or distribution is made no Specified Default shall have occurred and be continuing or would result therefrom or (ii) for any other purposes

 

132


if at the time such dividend, payment or distribution is made no Specified Default or Event of Default known to the Parent Borrower shall have occurred and be continuing or would result therefrom;

(h) the Parent Borrower may pay cash dividends, payments and distributions, (i) (x) for purposes permitted under Subsection 8.3(e) if at the time such dividend, payment or distribution is declared no Specified Default shall have occurred and be continuing or would if paid on the date of such declaration result therefrom or (y) for any other purposes, if at the time such dividend, payment or distribution is declared no Specified Default or Event of Default known to the Parent Borrower shall have occurred and be continuing or would if paid on the date of such declaration result therefrom (provided in each case that such dividend, payment or distribution is paid within thirty (30) days of such declaration) and (ii) the aggregate amount of such dividends, payments and distributions pursuant to this clause (h), when aggregated with all optional prepayments made pursuant to Subsection 8.6(e)(i) , do not exceed $50,000,000 in the aggregate;

(i) in addition to the foregoing dividends, the Parent Borrower may pay additional dividends, payments and distributions, (x) for purposes permitted under Subsection 8.3(e) if at the time such dividend, payment or distribution is declared no Specified Default shall have occurred and be continuing or would if paid on the date of such declaration result therefrom or (y) for any other purposes, if at the time such dividend, payment or distribution is declared no Specified Default or Event of Default known to the Parent Borrower shall have occurred and be continuing or would if paid on the date of such declaration result therefrom, provided that in each case the Payment Condition shall be satisfied and provided further , that in each case such dividend, payment or distribution is paid within thirty (30) days of such declaration; and

(j) on or prior to July 1, 2017, the Parent Borrower may declare and pay dividends with respect to the Existing Mandatory Convertible Preferred in accordance with the terms thereof as in effect on the Issue Date.

For purposes of determining compliance with Subsection 8.3 , in the event that any Restricted Payment meets the criteria of more than one of the types of Restricted Payments described in one or more of the clauses of Subsection 8.3 , the Parent Borrower, in its sole discretion, shall classify such item of Restricted Payment and may include the amount and type of such Restricted Payment in one or more of such clauses (including in part under one such clause and in part under another such clause).

8.4 Limitations on Certain Acquisitions . Acquire by purchase or otherwise all the business or assets of, or stock or other evidences of beneficial ownership of, any Person, except that the Parent Borrower and its Restricted Subsidiaries shall be allowed to make any such acquisitions so long as:

(a) such acquisition is expressly permitted by Subsection 8.2 (other than clause (d)); or

(b) such acquisition is a Permitted Acquisition;

provided that in the case of each such acquisition pursuant to clause (a) or (b) after giving effect thereto, no Specified Default or other Event of Default known to the Parent Borrower shall occur as a result of such acquisition and; provided , further , that with respect to any acquisition that is consummated in a single transaction or a series of related transactions, all or any of which might constitute an Investment but not the acquisition of all of the business or assets of, or stock or other evidences of beneficial ownership of, any Person, the Parent Borrower at its option may classify such transactions in whole or in part as an acquisition subject to this Subsection 8.4 (and for the avoidance of doubt not as Investments subject to Subsection 8.12 ).

 

133


8.5 Limitation on Dispositions of Collateral . Unless the Payment Condition shall have been satisfied, engage in any Asset Sale with respect to any of the Collateral, except that the Parent Borrower and its Restricted Subsidiaries shall be allowed to engage in any Asset Sale, so long as the consideration received (including by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise) in connection with such Asset Sale is for Fair Market Value, and if the consideration received is greater than $100,000,000, at least 75.0% of such consideration received (excluding, in the case of an Asset Sale (or series of related Asset Sales), any consideration by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise, that are not Indebtedness) is in the form of cash. For the purposes of the foregoing, the following are deemed to be cash: (1) Cash Equivalents and Temporary Cash Investments, (2) the assumption of Indebtedness of the Parent Borrower (other than Disqualified Capital Stock of the Parent Borrower) or any Restricted Subsidiary and the release in writing of the Parent Borrower or such Restricted Subsidiary from all liability on payment of the principal amount of such Indebtedness in connection with such Asset Sale, (3) Indebtedness of any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of such Asset Sale, to the extent that the Parent Borrower and each other Restricted Subsidiary are released in writing from any Guarantee Obligation of payment of the principal amount of such Indebtedness in connection with such Asset Sale, (4) securities received by the Parent Borrower or any Restricted Subsidiary from the transferee that are converted by the Parent Borrower or such Restricted Subsidiary into cash within 180 days, (5) consideration consisting of Indebtedness of the Parent Borrower or any Restricted Subsidiary, (6) Additional Assets and (7) any Designated Noncash Consideration received by the Parent Borrower or any of its Restricted Subsidiaries in an Asset Sale having an aggregate Fair Market Value, taken together with all other Designated Noncash Consideration received pursuant to this clause, not to exceed an aggregate amount at any time outstanding equal to the greater of $425,000,000 and 2.5% of Consolidated Total Assets at the time of designation (with the Fair Market Value of each item of Designated Noncash Consideration being measured at the time received and without giving effect to subsequent changes in value).

In connection with any Asset Sale permitted under this Subsection 8.5 or a Disposition that is excluded from the definition of “Asset Sale,” the Administrative Agent shall, and the Lenders hereby authorize the Administrative Agent to, execute such releases of Liens and take such other actions as the Parent Borrower may reasonably request in connection with the foregoing.

8.6 Limitation on Optional Payments and Modifications of Restricted Indebtedness and Other Documents .

(a) Make any optional payment or prepayment on or optional repurchase or redemption of (i) the Senior Notes, (ii) the Term Loan Facility or (iii) any Indebtedness that, in each case refinances, refunds, replaces, renews, repays, restructures or extends the Indebtedness set forth in preceding clauses (i) and (ii) or any refinancing thereof (in each case whether incurred under Subsection 8.13(i)(ii) or with the proceeds of any Indebtedness incurred under any other provision of Subsection 8.13 ) (including any Additional Obligations, any Permitted Debt Exchange Notes or any Indebtedness that is by its terms subordinated to the payment in cash of the Obligations, in each case that refinances, refunds, replaces, renews, repays, restructures or extends the Indebtedness set forth in preceding clauses (i) and (ii) or any refinancing thereof) (collectively or individually, “ Restricted Indebtedness ”), including any payments on account of clauses (i) through (iii), or for a sinking or other analogous fund for, the repurchase, redemption, defeasance or other acquisition thereof (it being understood that (x) payments of regularly scheduled interest and (y) AHYDO Payments shall be permitted, provided that in the case of this clause (y) in respect of Indebtedness other than the Senior Notes (or any Indebtedness the proceeds of which are

 

134


applied to refinance all or any part of the Senior Notes or any refinancing thereof) after giving effect to such AHYDO Payments, the Total Leverage Ratio would not be greater than 5.00:1.00), unless (i) the Payment Condition shall have been satisfied or such payment or prepayment on or optional repurchase or redemption of Restricted Indebtedness is financed with an amount not exceeding the Available Excluded Contribution Amount Basket and (ii) no Specified Default or other Event of Default known to the Parent Borrower has occurred and is continuing or would result therefrom; provided that the Parent Borrower or any of its Restricted Subsidiaries may consummate any redemption of Restricted Indebtedness within sixty (60) days after the date of giving an irrevocable notice of redemption if at such date of giving of such notice, such redemption would have complied with this Subsection 8.6(a) .

(b) In the event of the occurrence of a Change of Control, repurchase or repay any Restricted Indebtedness then outstanding or any portion thereof, unless the Borrowers shall have (i) made payment in full of the Loans, all Reimbursement Obligations and any other Obligations then due and owing hereunder and under any Note and cash collateralized the L/C Obligations on terms reasonably satisfactory to the Administrative Agent or (ii) made an offer to pay the Loans, all Reimbursement Obligations and any other Obligations then due and owing to each Lender and the Administrative Agent hereunder and under any Note and to cash collateralize the L/C Obligations on terms reasonably satisfactory to the Administrative Agent in respect of each Lender and shall have made payment in full thereof to each such Lender or the Administrative Agent which has accepted such offer and cash collateralized the L/C Obligations in respect of each such Lender which has accepted such offer. Upon the Borrowers having made all payments of Loans and other Obligations then due and owing to any Lender required by the preceding sentence, any Event of Default arising under Subsection 9.1(k) by reason of such Change of Control shall be deemed not to have occurred or be continuing.

(c) Amend, supplement, waive or otherwise modify any of the provisions of any Restricted Indebtedness (excluding for this purpose any Restricted Indebtedness the proceeds of which were used to refinance, refund, replace, renew, repay, restructure or extend the Senior Notes or the Term Loan Facility or any refinancing thereof, that was incurred under any provision of Subsection 8.13 other than Subsection 8.13(i)(ii) ) in a manner that (A) shortens the maturity date of the Indebtedness incurred thereunder to a date prior to the date that is 91 days after the Termination Date or (B) provides for a shorter weighted average life to maturity, at the time of issuance or incurrence, than the remaining weighted average life to maturity of the Indebtedness that is refinanced, refunded, replaced, renewed, repaid, restructured or extended ( provided that compliance with this restriction shall be determined ignoring the effect of any payment of customary upfront fees or any permanent prepayment of such Indebtedness, in each case based on market conditions at the time of the applicable amendment, supplement, waiver or other modification), or (C) only with respect to Indebtedness under the Senior Notes Debt Documents increases the rate or shortens the time for payment of interest or premium payable, whether at maturity, at a date fixed for prepayment or by acceleration or otherwise thereunder. Notwithstanding the foregoing, the provisions of this Subsection 8.6(c) shall not restrict or prohibit any refinancing of Indebtedness (in whole or in part) with the proceeds of any Indebtedness otherwise permitted to be incurred pursuant to Subsection 8.13 .

(d) [Reserved].

(e) Notwithstanding the foregoing the Parent Borrower shall be permitted to make the following optional payments, repurchases and redemptions (“ Optional Payments ”) in respect of Restricted Indebtedness:

(i) Optional Payments pursuant to this clause (e)(i) in an aggregate amount that, when aggregated with all cash dividends paid pursuant to Subsection 8.3(h) , does not exceed $50,000,000;

 

135


(ii) Optional Payments by exchange for, or out of the proceeds of, the issuance, sale or other incurrence of Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries permitted under Subsection 8.13 ;

(iii) Optional Payments by conversion or exchange of Restricted Indebtedness to Capital Stock (other than Disqualified Capital Stock) or Indebtedness of any Parent Entity; and

(iv) Optional Payments in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of making such Optional Payment.

8.7 [Reserved] .

8.8 Limitation on Negative Pledge Clauses . Enter into with any Person any agreement which prohibits or limits the ability of the Parent Borrower or any of its Restricted Subsidiaries that are Loan Parties to create, incur, assume or suffer to exist any Lien in favor of the Lenders in respect of obligations and liabilities under this Agreement or any other Loan Documents upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than:

(a) any agreement or instrument in effect at or entered into on the Third Amendment Effective Date, this Agreement, the other Loan Documents and any related documents, the Term Loan Documents, the Senior Notes Debt Documents and, on and after the execution and delivery thereof, the Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement, any Intercreditor Agreement Supplement, any Permitted Debt Exchange Notes (and any related documents) and any Additional Obligations Documents;

(b) any agreement governing or relating to Indebtedness and/or other obligations and liabilities, in each case secured by a Lien permitted by Subsection 8.14 (in which case any restriction shall only be effective against the assets subject to such Lien, except as may otherwise be permitted under this Subsection 8.8 );

(c) any agreement or instrument of a Person, or relating to Indebtedness (including any Guarantee Obligation in respect thereto) or Capital Stock of a Person, which Person is acquired by or merged or consolidated with or into the Parent Borrower or any Restricted Subsidiary, or which agreement or instrument is assumed by the Parent Borrower, or any Restricted Subsidiary in connection with an acquisition from such Person or any other transaction entered into in connection with any such acquisition, merger or consolidation, as in effect at the time of such acquisition, merger, consolidation or transaction (except to the extent that such Indebtedness was incurred to finance, or otherwise in connection with, such acquisition, merger, consolidation or transaction), provided that for purposes of this Subsection 8.8(c) , if a Person other than a Borrower is the Successor Borrower with respect thereto, any Subsidiary thereof or agreement or instrument of such Person or any such Subsidiary shall be deemed acquired or assumed, as the case may be, by the Parent Borrower or a Restricted Subsidiary, as the case may be, when such Person becomes such Successor Borrower;

(d) any agreement or instrument (a “ Refinancing Agreement ”) effecting a refinancing of Indebtedness incurred or outstanding pursuant or relating to, or that otherwise extends, renews, refunds, refinances or replaces, any agreement or instrument referred to in Subsections 8.8(a) or 8.8(c) or this Subsection 8.8(d) (an “ Initial Agreement ”) or that is, or is contained in, any amendment, supplement or other modification to an Initial Agreement or Refinancing Agreement (an “ Amendment ”); provided , however , that the encumbrances and restrictions contained

 

136


in any such Refinancing Agreement or Amendment taken as a whole are not materially less favorable to the Lenders than encumbrances and restrictions contained in the Initial Agreement or Initial Agreements to which such Refinancing Agreement or Amendment relates (as determined in good faith by the Parent Borrower);

(e) (i) any agreement or instrument that restricts in a customary manner (as determined in good faith by the Parent Borrower) the assignment or transfer thereof, or the subletting, assignment or transfer of any property or asset subject thereto, (ii) any restriction by virtue of any transfer of, agreement to transfer, option or right with respect to, or Lien on, any property or assets of the Parent Borrower or any Restricted Subsidiary not otherwise prohibited by this Agreement, (iii) mortgages, pledges or other security agreements securing Indebtedness or other obligations of the Parent Borrower or a Restricted Subsidiary to the extent restricting the transfer of the property or assets subject thereto, (iv) customary provisions (as determined in good faith by the Parent Borrower) restricting dispositions of real property interests set forth in any reciprocal easement agreements of the Parent Borrower or any Restricted Subsidiary, (v) Purchase Money Obligations that impose encumbrances or restrictions on the property or assets so acquired, (vi) agreement with customers or suppliers entered into in the ordinary course of business that impose restrictions with respect to cash or other deposits or net worth, (vii) pursuant to customary provisions (as determined in good faith by the Parent Borrower) contained in agreements and instruments entered into in the ordinary course of business (including but not limited to leases and licenses) or in joint venture and other similar agreements, or in shareholder, partnership, limited liability company and other similar agreements in respect of non-Wholly Owned Restricted Subsidiaries, (viii) restrictions that arise or are agreed to in the ordinary course of business and does not detract from the value of property or assets of the Parent Borrower or any Restricted Subsidiary in any manner material to the Parent Borrower or such Restricted Subsidiary, (ix) Interest Rate Protection Agreements, Hedging Agreements or other Permitted Hedging Arrangements or under Bank Products Agreements, or (x) Related Corporation Contracts;

(f) any agreement or instrument (i) relating to any Indebtedness permitted to be incurred subsequent to the Third Amendment Effective Date pursuant to Subsection 8.13 , (x) if the encumbrances and restrictions contained in any such agreement or instrument taken as a whole are not materially less favorable to the Lenders than the encumbrances and restrictions contained in the Initial Agreements (as determined in good faith by the Parent Borrower), or (y) if such encumbrance or restriction is not materially more disadvantageous to the Lenders than is customary in comparable financings (as determined in good faith by the Parent Borrower) and either (1) the Parent Borrower determines in good faith that such encumbrance or restriction will not materially affect the Parent Borrower’s ability to create and maintain the Liens on the ABL Priority Collateral pursuant to the Security Documents and make principal or interest payments on the Term Loans or (2) such encumbrance or restriction applies only if a default occurs in respect of a payment or financial covenant relating to such Indebtedness, or (ii) relating to any sale of receivables by or Indebtedness of a Foreign Subsidiary;

(g) any agreement relating to intercreditor arrangements and related rights and obligations, to or by which the Lenders and/or the Administrative Agent, the Collateral Agent or any other agent, trustee or representative on their behalf may be party or bound at any time or from time to time, and any agreement providing that in the event that a Lien is granted for the benefit of the Lenders another Person shall also receive a Lien, which Lien is permitted by Subsection 8.14 ;

 

137


(h) any agreement for the direct or indirect disposition of Capital Stock of any Person, property or assets, imposing restrictions with respect to such Person, Capital Stock, property or assets pending the closing of such disposition; and

(i) by reason of any applicable law, rule, regulation or order, or required by any regulatory authority having jurisdiction over the Parent Borrower or any Restricted Subsidiary or any of their businesses, including any such law, rule, regulation, order or requirement applicable in connection with such Restricted Subsidiary’s status (or the status of any Subsidiary of such Restricted Subsidiary) as a Captive Insurance Subsidiary.

8.9 Limitation on Lines of Business . Enter into any business, either directly or through any Restricted Subsidiary, except for those businesses of the same general type as those in which the Parent Borrower and its Restricted Subsidiaries are engaged in on the Third Amendment Effective Date or which are reasonably related thereto and any business related thereto.

8.10 Limitations on Currency, Commodity and Other Hedging Transactions . Enter into any Hedging Agreement, or purchase or otherwise acquire, or enter into agreements or arrangements relating to, any currency or commodity (each a “ Hedging Arrangement ”) except, to the extent and only to the extent, that such Hedging Agreements or other agreements or arrangements are entered into with, or such currency or commodity is purchased or otherwise acquired through, reputable financial institutions or vendors other than for purposes of speculation (any such Hedging Agreement, agreement or arrangement, or purchase or acquisition permitted by this Subsection, a “ Permitted Hedging Arrangement ”).

8.11 Limitations on Transactions with Affiliates . Except as otherwise expressly permitted in this Agreement, enter into any transaction, including any purchase, sale, lease or exchange of property or the rendering of any service, with any Affiliate unless such transaction is (A) not otherwise prohibited under this Agreement, and (B) upon terms not materially less favorable to the Parent Borrower or such Restricted Subsidiary, as the case may be, than those that could be obtained at the time in a transaction with a Person which is not an Affiliate; provided that nothing contained in this Subsection 8.11 shall be deemed to prohibit:

(a) (1) the Parent Borrower or any Restricted Subsidiary from entering into, modifying, maintaining or performing any consulting, management, compensation, collective bargaining, benefits or employment agreements, related trust agreement or other compensation arrangements with a director, officer, employee, consultant or former officer, director, employee or consultant of or to the Parent Borrower or such Restricted Subsidiary or any Parent Entity in the ordinary course of business, including vacation, health insurance, deferred compensation, severance, retirement, savings, or other similar plans, programs or arrangements, (2) payments, compensation, performance of indemnification or contribution obligations, the making or cancellation of loans or any issuance, grant or award of stock, options, other equity related interests or other securities, to any such employees, officers, directors or consultants in the ordinary course of business, (3) the payment of reasonable fees to directors of the Parent Borrower or any of its Subsidiaries or any Parent Entity (as (i) approved by the Board of Directors of the Parent Borrower or any Parent Entity (including the compensation committee thereof), (ii) in an amount not in excess of $10,000,000 for such director, or (iii) in the ordinary course of business), or (4) Management Advances and payments in respect thereof (or in reimbursement of any expenses referred to in the definition of such term);

(b) the payment of all amounts in connection with this Agreement or any of the Transactions;

 

138


(c) the Parent Borrower or any of its Restricted Subsidiaries from entering into, making payments pursuant to and otherwise performing (i) the obligations under the Transaction Documents and (ii) an indemnification and contribution agreement in favor of each person who is or becomes a director, officer, agent, consultant or employee of the Parent Borrower or any of its Subsidiaries or any Parent Entity, in respect of liabilities (A) arising under the Securities Act, the Exchange Act and any other applicable securities laws or otherwise, in connection with any offering of securities by any Parent Entity ( provided that, if such Parent Entity shall own any material assets other than the Capital Stock of the Parent Borrower or another Parent Entity, or other assets relating to the ownership interest by such Parent Entity in the Parent Borrower or another Parent Entity, such liabilities shall be limited to the reasonable and proportional share, as determined by the Parent Borrower in its reasonable discretion based on the benefit therefrom to the Parent Borrower and its Subsidiaries, of such liabilities relating or allocable to the ownership interest of such Parent Entity in the Parent Borrower or another Parent Entity and such other related assets) or the Parent Borrower or any of its Subsidiaries, (B) incurred to third parties for any action or failure to act of the Parent Borrower or any of its Subsidiaries or any Parent Entity or any of their predecessors or successors, (C) [reserved], (D) arising out of the fact that any indemnitee was or is a director, officer, agent, consultant or employee of the Parent Borrower or any of its Subsidiaries or any Parent Entity, or is or was serving at the request of any such Person as a director, officer, agent, consultant or employee of another corporation, partnership, joint venture, trust, enterprise or other Person or (E) to the fullest extent permitted by Delaware or other applicable state law, arising out of any breach or alleged breach by such indemnitee of his or her fiduciary duty as a director or officer of the Parent Borrower or any of its Subsidiaries or any Parent Entity;

(d) any issuance or sale of Capital Stock of the Parent Borrower or any Parent Entity or capital contribution to the Parent Borrower or any Restricted Subsidiary;

(e) the execution, delivery and performance of any tax sharing agreement and any Transaction Document;

(f) the execution, delivery and performance of agreements or instruments (i) under which the Parent Borrower or its Restricted Subsidiaries do not make payments or provide consideration in excess of $12,500,000 per Fiscal Year or (ii) set forth on Schedule 8.11 ;

(g) (i) any transaction among any of the Parent Borrower, one or more Restricted Subsidiaries, and/or one or more Related Corporations (in the case of Related Corporations only, pursuant to or in connection with a Related Corporation Contract), (ii) any transaction permitted by clause (c), (d), (f), (g), (h), (i), (j), (l), (m), (n)(ii), (w) or (z) of the definition of “Permitted Investments” ( provided that any transaction pursuant to clause (l) or (m) shall be limited to guarantees of loans and advances by third parties), (iii) any transaction permitted by Subsection 8.2 or 8.3 or specifically excluded from the definition of “Restricted Payment” and (iv) any transaction permitted by Subsection 8.13(f)(i) , 8.13(f)(ii) , 8.13(f)(iii) , 8.13(f)(vii) , 8.13(f)(viii) , or 8.13(j) ;

(h) the Transactions and all transactions in connection therewith (including but not limited to the financing thereof), and all fees and expenses paid or payable in connection with the Transactions; and

(i) any transaction in the ordinary course of business, or approved by a majority of the Board of Directors of the Parent Borrower, between the Parent Borrower or any Restricted Subsidiary and any Affiliate of the Parent Borrower controlled by the Parent Borrower that is a joint venture or similar entity.

 

139


For purposes of this Subsection 8.11 , (i) any transaction with any Affiliate shall be deemed to have satisfied the standard set forth in clause (B) of the first sentence hereof if (x) such transaction is approved by a majority of the Disinterested Directors of the Board of Directors of the Parent Borrower, or (y) in the event that at the time of any such transaction, there are no Disinterested Directors serving on the Board of Directors of the Parent Borrower, a fairness opinion is provided by a nationally recognized appraisal or investment banking firm with respect to such transaction and (ii) “Disinterested Director” shall mean, with respect to any Person and transaction, a member of the Board of Directors of such Person who does not have any material direct or indirect financial interest in or with respect to such transaction; it being understood that a member of any such Board of Directors shall not be deemed to have such a financial interest by reason of such member holding Capital Stock of the Parent Borrower or any Parent Entity or any options, warrants or other rights in respect of such Capital Stock.

8.12 Limitations on Investments . Make, directly or indirectly, any Investment except for Permitted Investments.

8.13 Limitations on Indebtedness . Directly or indirectly create, incur, assume or otherwise become directly or indirectly liable with respect to any Indebtedness except for the following (collectively, “ Permitted Indebtedness ”):

(a) Indebtedness (i) incurred by any Loan Party pursuant to the Term Loan Facility and Indebtedness incurred by any Loan Party otherwise than pursuant to the Term Loan Facility (including pursuant to any Additional Obligations Documents, any Permitted Debt Exchange or any Rollover Indebtedness but not pursuant to the Loan Documents) in an aggregate principal amount at any time outstanding not to exceed (A) $3,495,000,000 plus (B) the Maximum Incremental Facilities Amount and (ii) incurred pursuant to the Senior Notes Debt Documents in an aggregate principal amount not to exceed $550,000,000;

(b) Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries incurred pursuant to this Agreement and the other Loan Documents (including, without limitation, any Incremental Facility, Extension or any Credit Agreement Refinancing Indebtedness);

(c) Unsecured Ratio Indebtedness (including, subject to meeting the Total Leverage Ratio requirement set forth in the definition of “Unsecured Ratio Indebtedness,” Additional Obligations that are unsecured);

(d) Indebtedness (other than Indebtedness permitted by clauses (a) through (c) above) existing on the Third Amendment Effective Date, and disclosed on Schedule 8.13(d) (“ Third Amendment Effective Date Existing Indebtedness ”), together with any renewal, extension, refinancing or refunding pursuant to clause (i) below;

(e) Indebtedness of (i) the Parent Borrower or any Restricted Subsidiary to the Parent Borrower or any other Restricted Subsidiary, or (ii) of the Parent Borrower or any Restricted Subsidiary to any Related Corporation, incurred consistent with past practices on or prior to the Third Amendment Effective Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts;

(f) Guarantee Obligations incurred by:

(i) the Parent Borrower or any of its Restricted Subsidiaries in respect of Indebtedness of a Loan Party that is permitted hereunder; provided that Guarantee Obligations in respect of Indebtedness permitted pursuant to clauses (a), (c) and (m) shall be

 

140


permitted only to the extent that such Guarantee Obligations are incurred by Guarantors (other than, in the case of clause (m), Guarantee Obligations incurred by any Foreign Subsidiary that is not a Guarantor);

(ii) a Loan Party in respect of Indebtedness of (x) a Non-Loan Party or (y) a Related Corporation, incurred consistent with past practices on or prior to the Third Amendment Effective Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts, provided that in the event any such Guarantee Obligation guarantees any Indebtedness of a Related Corporation incurred to finance an acquisition by such Related Corporation, at the time of incurrence of such Guarantee Obligation the Payment Condition is satisfied;

(iii) a Non-Loan Party in respect of Indebtedness of another Non-Loan Party that is permitted hereunder;

(iv) the Parent Borrower or any of its Restricted Subsidiaries in respect of Indebtedness of any Person (other than the Parent Borrower or any of its Restricted Subsidiaries or any Related Corporation), provided that the aggregate amount at any time outstanding of such Guarantee Obligations incurred pursuant to this clause (iv), when aggregated with the amount of all other Guarantee Obligations incurred and outstanding pursuant to this clause (iv) and all Indebtedness incurred and outstanding pursuant to clause (w) of this Subsection 8.13 , shall not exceed (when incurred) the greater of (x) $775,000,000 and (y) the amount equal to 4.75% of Consolidated Total Assets at the time of such Guarantee Obligations being incurred;

(v) the Parent Borrower or any of its Restricted Subsidiaries in connection with sales or other dispositions permitted under Subsection 8.5 , including indemnification obligations with respect to leases, and guarantees of collectability in respect of accounts receivable or notes receivable for up to face value;

(vi) the Parent Borrower or any of its Restricted Subsidiaries consisting of accommodation guarantees for the benefit of trade creditors of the Parent Borrower or any of its Restricted Subsidiaries in the ordinary course of business;

(vii) the Parent Borrower or any of its Restricted Subsidiaries in respect of Investments expressly permitted pursuant to clauses (c), (j), (l), (m), (v) or (w) of the definition of “Permitted Investments”;

(viii) the Parent Borrower or any of its Restricted Subsidiaries in respect of (x) Management Guarantees and (y) third-party loans and advances to officers or employees of any Parent Entity, the Parent Borrower or any of its Restricted Subsidiaries or Related Physicians permitted pursuant to clauses (l) or (m) of the definition of “Permitted Investments”;

(ix) the Parent Borrower or any of its Restricted Subsidiaries in respect of Reimbursement Obligations in respect of Letters of Credit or with respect to reimbursement obligations in respect of any other letters or credit permitted under this Agreement;

(x) the Parent Borrower or any of its Restricted Subsidiaries in respect of performance, bid, appeal, surety, judgment, replevin and similar bonds, other suretyship arrangements, other similar obligations and letters of credit, bankers’ acceptances or similar instruments or obligations, all in, or relating to liabilities or obligations incurred in, the ordinary course of business; and

(xi) the Parent Borrower or any of its Restricted Subsidiaries in respect of Indebtedness or other obligations of a Person (other than the Parent Borrower or any of its Restricted Subsidiaries) in connection with a joint venture or similar arrangement in respect of which the aggregate outstanding amount of such Indebtedness, together with the aggregate amount of Investments permitted pursuant to clause (q) of the definition of “Permitted Investments,” does not exceed $75,000,000;

 

141


provided , however , that if any Indebtedness referred to in clauses (i) through (iv) above is subordinated in right of payment to the Obligations or is secured by Liens that are senior or subordinate to any Liens securing the Collateral, then any corresponding Guarantee Obligations shall be subordinated and the Liens securing the corresponding Guarantee Obligations shall be senior or subordinate to substantially the same extent;

(g) Purchase Money Obligations, Financing Lease Obligations and other Indebtedness incurred by the Parent Borrower or a Restricted Subsidiary of the Parent Borrower to finance the acquisition, leasing, construction or improvement of fixed assets; provided , however , that (i) the aggregate principal amount at any time outstanding of Purchase Money Obligations, Financing Lease Obligations and other Indebtedness incurred pursuant to this clause (g), when aggregated with the principal amount of all other Purchase Money Obligations, Financing Lease Obligations and other Indebtedness incurred and outstanding at such time pursuant to this clause (g) (together with any renewal, extension, refinancing or refunding pursuant to clause (i) below) shall not exceed an amount equal to the greater of $325,000,000 million and 2.0% of Consolidated Total Assets, and (ii) such Financing Lease Obligations and Indebtedness shall be incurred prior to or within 180 days of such acquisition or leasing or completion of construction or improvement of such assets;

(h) Indebtedness of Foreign Subsidiaries of the Parent Borrower that are Restricted Subsidiaries in support of working capital needs up to an aggregate outstanding principal amount, which shall not exceed $75,000,000 at any time ( provided that an additional $25,000,000 of such Indebtedness shall be permitted to be outstanding at any time in connection with overdraft and similar facilities);

(i) renewals, extensions, refinancings and refundings of Indebtedness (in whole or in part) permitted by:

(i) clause (d) or (g) above or this clause (i)(i) provided , however , that (A) any such renewal, extension, refinancing or refunding is in an aggregate principal amount not greater than the principal amount (or accreted value, if applicable) of such Indebtedness so renewed, extended, refinanced or refunded (plus accrued interest, any premium and reasonable commission, fees, underwriting discounts and other costs and expenses incurred in connection with such refinanced Indebtedness) and (B) such Indebtedness has a weighted average life to maturity no shorter than the remaining weighted average life to maturity of the Indebtedness so renewed, extended, refinanced or refunded; and

(ii) clause (a), (c) or (m) hereof or this clause (i)(ii); provided , however , that (A) any such renewal, extension, refinancing or refunding is in an aggregate principal amount (or, if issued with original issue discount, the accreted value) not greater than the principal amount (or accreted value, if applicable) of such Indebtedness so renewed, extended,

 

142


refinanced or refunded (plus accrued interest, any premium and reasonable commission, fees, underwriting discounts and other costs and expenses incurred in connection with such refinanced Indebtedness), (B) with respect to Indebtedness incurred under Subsections 8.13(a) , 8.13(c) or 8.13(m) , such Indebtedness has (x) a Stated Maturity date that is (i) at least 91 days after the Termination Date or (ii) in respect of Indebtedness with a Stated Maturity earlier than 91 days after the Termination Date, not earlier than the Stated Maturity date of the Indebtedness that is renewed, extended, refinanced or refunded and (y) (only with respect to Restricted Indebtedness (excluding for this purpose any Restricted Indebtedness the proceeds of which were used to refinance, refund, replace, renew, repay, restructure or extend the Senior Notes or the Term Loan Facility or any refinancing thereof, that was incurred under any provision of Subsection 8.13 other than this Subsection 8.13(i)(ii) ), a weighted average life to maturity, at the time of issuance or incurrence, of not less than the remaining weighted average life to maturity of the Indebtedness that is renewed, extended, refinanced or refunded ( provided that compliance with this restriction shall be determined ignoring the effect of any payment of customary upfront fees or any permanent prepayment of such Indebtedness being refinanced, in each case based on market conditions at the time of any such refinancing), (C) if secured by any Collateral, such Indebtedness shall be subject to the terms of the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement, or any Other Intercreditor Agreement, (D) to the extent that the Indebtedness to be renewed, extended, refinanced or refunded is unsecured and, at the time of such renewal, extension, refinancing or refunding, such Indebtedness could not be incurred under Subsection 8.13(a)(i)(B) by meeting the Consolidated First-Lien Net Leverage Ratio (as defined in the Term Loan Credit Agreement), then such renewed, extended, refinanced or refunded Indebtedness may not be secured by any Collateral and (E) such renewed, extended, refinanced or refunded Indebtedness shall not include Indebtedness of a Restricted Subsidiary that is not a Loan Party that refinances Indebtedness of a Loan Party that could not have been initially incurred by such Restricted Subsidiary pursuant to this Subsection 8.13 ;

(j) Indebtedness of the Parent Borrower or any Restricted Subsidiary to the Parent Borrower or any of its Subsidiaries to the extent the Investment in such Indebtedness is not restricted by Subsection 8.12 ;

(k) Indebtedness incurred under any agreement pursuant to which a Person provides cash management services or similar financial accommodations to the Parent Borrower or any of its Restricted Subsidiaries (including any Cash Management Arrangements);

(l) Indebtedness constituting indemnities and adjustments (including pension plan adjustments and contingent payments adjustments) under the 2016 Merger Agreement;

(m) Indebtedness incurred or assumed in connection with, or as a result of, a Permitted Acquisition so long as: (i) with respect to any newly incurred Indebtedness, such Indebtedness is unsecured, (ii) the Parent Borrower would be in compliance, on a Pro Forma Basis after giving effect to the consummation of such acquisition and the incurrence or assumption of such Indebtedness, with Subsection 8.1 recomputed as of the last day of the most recently ended Fiscal Quarter of the Parent Borrower for which financial statements are available, whether or not compliance with Subsection 8.1 is otherwise required at such time (it being understood that, as a condition precedent to the effectiveness of any such incurrence or assumption, the Parent Borrower shall deliver to the Administrative Agent a certificate of a Responsible Officer setting forth in reasonable detail the calculations demonstrating such compliance), (iii) after giving effect thereto, no Specified Default or Event of Default known to the Parent Borrower has occurred and is continuing,

 

143


and (iv) with respect to any newly incurred Indebtedness, such Indebtedness does not have any maturity or amortization rate greater than 1.0% per annum prior to the date that is 91 days after the Termination Date (other than (x) mandatory prepayments with proceeds of and exchanges for refinancing Indebtedness in respect thereof permitted hereunder or (y) an earlier maturity date and/or higher amortization rate for customary bridge financings, which, subject to customary conditions, would either be automatically converted into or required to be exchanged for permanent financing which does not provide for an earlier maturity date or an amortization rate greater than 1.0% per annum prior to the date that is 91 days after the Termination Date and other mandatory prepayments with proceeds of and exchanges for refinancing Indebtedness in respect thereof permitted hereunder) and does not provide for redemption or repayment requirements from asset sales, casualty or condemnation events or excess cash flow on terms more favorable than those under the Term Loan Credit Agreement (other than, in the case of any customary bridge financing, prepayments of such bridge financing from the issuance of equity or other indebtedness permitted hereunder which meets the requirements of this Subsection 8.13(m) ); it being understood that, in the event that any such Indebtedness incurred under this Subsection 8.13(m) is incurred in good faith to finance the purchase price of any such acquisition in advance of the closing of such acquisition, and such closing shall thereafter not occur and such Indebtedness (or an equal principal amount of other Indebtedness) is redeemed, repaid or otherwise retired promptly after the Parent Borrower determines that such transaction has been abandoned, such Indebtedness shall be deemed to comply with this Subsection 8.13(m) ;

(n) Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries incurred to finance insurance premiums in the ordinary course of business;

(o) Indebtedness (A) arising from the honoring of a check, draft or similar instrument against insufficient funds in the ordinary course of business; or (B) consisting of indemnities, obligations in respect of earnouts or other purchase price adjustments, or similar obligations, created, incurred or assumed in connection with the acquisition or disposition of any business, assets or Person;

(p) Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries in respect of Financing Leases which have been funded solely by Investments of the Parent Borrower and its Restricted Subsidiaries permitted under clause (r) of the definition of “Permitted Investments”;

(q) Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries arising in connection with industrial development or revenue bonds or similar obligations secured by property or assets leased to and operated by the Parent Borrower or such Restricted Subsidiary that were issued in connection with the financing or refinancing of such property or assets, provided , that the aggregate principal amount of such Indebtedness outstanding at any time shall not exceed $60,000,000;

(r) Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries in respect of obligations evidenced by bonds, debentures, notes or similar instruments issued as payment-in-kind interest payments in respect of Indebtedness otherwise permitted hereunder;

(s) accretion of the principal amount of Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries otherwise permitted hereunder issued at any original issue discount;

 

144


(t) Indebtedness of the Parent Borrower and its Restricted Subsidiaries under Interest Rate Protection Agreements, Hedging Agreements and other Permitted Hedging Arrangements;

(u) Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries in respect of any Sale and Leaseback Transaction;

(v) Indebtedness in respect of any letters of credit issued in favor of any Issuing Lender or the Swingline Lender to support any Defaulting Lender’s participation in Letters of Credit or Swingline Loans as provided for in Subsection 3.4 , in each case to the extent not exceeding the maximum amount of such participations;

(w) other Indebtedness of the Parent Borrower or any of its Restricted Subsidiaries; provided that the aggregate amount outstanding at any time of such Indebtedness incurred or assumed pursuant to this clause (w), when aggregated with all other Indebtedness incurred or assumed and outstanding pursuant to this clause (w) and all Guarantee Obligations incurred and outstanding pursuant to Subsection 8.13(f)(iv) , shall not exceed (when incurred) the greater of (i) $775,000,000 and (ii) the amount equal to 4.75% of the Consolidated Total Assets at the time of incurrence of such Indebtedness; and

(x) Indebtedness in respect of performance, bid, appeal, surety, judgment, replevin and similar bonds, other suretyship arrangements, other similar obligations, letters of credit, bankers’ acceptances or similar instruments or obligations, and take-or-pay obligations under supply arrangements, all provided in, or relating to liabilities or obligations incurred in, the ordinary course of business, including those issued (i) to government entities in connection with self-insurance under applicable workers’ compensation statutes or (ii) on behalf of any Related Corporation, incurred consistent with past practices on or prior to the Third Amendment Effective Date or in the ordinary course of business, pursuant to or in connection with Related Corporation Contracts.

For purposes of determining compliance with and the outstanding principal amount of any particular Indebtedness (including Guarantee Obligations) incurred pursuant to this Subsection 8.13 , (i) in the event that any Indebtedness (including Guarantee Obligations) meets the criteria of more than one of the types of Indebtedness (including Guarantee Obligations) described in clauses (a) through (x) above or any related subclauses, the Parent Borrower, in its sole discretion, shall classify such item of Indebtedness and may include the amount and type of such Indebtedness in one or more of such clauses or subclauses (including in part under one such clause or subclause and in part under another such clause or subclause), (ii) the amount of any Indebtedness denominated in any currency other than Dollars shall be calculated based on customary currency exchange rates in effect, in the case of such Indebtedness incurred (in respect of term Indebtedness) or committed (in respect of revolving Indebtedness), on the date that such Indebtedness was incurred (in respect of term Indebtedness) or committed (in respect of revolving Indebtedness); provided that if such Indebtedness is incurred to refinance other Indebtedness denominated in a currency other than Dollars (or in a different currency from the Indebtedness being refinanced), and such refinancing would cause the applicable Dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such Dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed (1) the outstanding or committed principal amount or, if issued with original issued discount, the aggregated accreted value (whichever is higher) of such Indebtedness being refinanced plus (2) the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses incurred in connection with such refinancing, (iii) if any Indebtedness is incurred to refinance Indebtedness initially incurred in reliance on a basket measured by reference to a percentage

 

145


of Consolidated Total Assets at the time of incurrence, and such refinancing would cause the percentage of Consolidated Total Assets restriction to be exceeded if calculated based on the Consolidated Total Assets on the date of such refinancing, such percentage of Consolidated Total Assets restriction shall not be deemed to be exceeded so long as the principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced, plus accrued interest, any premium and reasonable commission, fees, underwriting discounts and other costs and expenses incurred in connection with such refinanced Indebtedness, (iv) the amount of Indebtedness issued at a price that is less than the principal amount thereof shall be equal to the amount of the liability in respect thereof determined in accordance with GAAP; (v) the principal amount of Indebtedness outstanding under any subclause of Subsection 8.13 , including for purposes of any determination of the “Maximum Incremental Facilities Amount,” shall be determined after giving effect to the application of proceeds of any such Indebtedness to refinance any such other Indebtedness and (vi) in the event that the Parent Borrower shall classify Indebtedness incurred on the date of determination as incurred in part pursuant to Subsection 8.13(a)(i)(B) and clause (ii) of the definition of “Maximum Incremental Facilities Amount” and in part pursuant to one or more other clauses of Subsection 8.13 , as provided in clause (i) of this paragraph, any calculation of the Consolidated First-Lien Net Leverage Ratio (as defined in the Term Loan Credit Agreement), including in the definition of “Maximum Incremental Facilities Amount,” on any date of determination shall not include any such Indebtedness (and shall not give effect to any discharge of Indebtedness from the proceeds thereof) to the extent incurred pursuant to any such other clause of Subsection 8.13 on such date of determination.

8.14 Limitations on Liens . Create or suffer to exist, any Lien upon or with respect to any of their respective properties or assets, whether now owned or hereafter acquired, or assign, or permit any of their respective Restricted Subsidiaries to assign, any right to receive income, except for the following (collectively, “ Permitted Liens ”):

(a) Liens (i) created pursuant to the Loan Documents or otherwise securing, directly or indirectly, the Obligations or other Indebtedness permitted by Subsection 8.13(b) , (ii) created pursuant to the Term Loan Documents, or (iii) created pursuant to any Additional Obligations Documents or any documents entered into in connection with any Permitted Debt Exchange or Rollover Indebtedness or otherwise securing, directly or indirectly, Additional Obligations, Permitted Debt Exchange Notes, Rollover Indebtedness or other Indebtedness permitted by Subsection 8.13(a)(i) , in the case of clauses (ii) and (iii) above, (x) in respect of any such Indebtedness permitted to be secured, including, in the case of Indebtedness incurred under Subsection 8.13(a)(i)(B) , to the extent such Indebtedness is permitted to be secured pursuant to clause (ii) of the definition of “Maximum Incremental Facilities Amount” and (y) provided that any such Indebtedness shall be secured on a junior basis with this Facility with respect to ABL Priority Collateral and on a pari passu or junior basis with the Term Loan Facility (or any refinancing Indebtedness in respect thereof permitted by the terms of this Agreement) with respect to Term Loan Priority Collateral;

(b) Liens existing on the Third Amendment Effective Date and disclosed on Schedule 8.14(b) ;

(c) Customary Permitted Liens;

(d) Liens (including Purchase Money Obligations Liens) granted by the Parent Borrower or any of its Restricted Subsidiaries (including the interest of a lessor under a Financing Lease and Liens to which any property is subject at the time, on or after the Third Amendment Effective Date, of the Parent Borrower’s or such Restricted Subsidiary’s acquisition thereof) securing Indebtedness permitted under Subsection 8.13(g) and limited in each case to the property purchased with the proceeds of such Indebtedness or subject to such Lien or Financing Lease;

 

146


(e) any Lien securing the renewal, extension, refinancing or refunding of any Indebtedness secured by any Lien permitted by clause (a), (b) or (d) above, clause (l) or (q) below, or this clause (e); provided that (i) (A) in the case of any renewal, extension, refinancing or refunding of Indebtedness secured by any Lien permitted by clause (a)(ii) above any such Indebtedness shall be secured on a junior basis with this Facility with respect to ABL Priority Collateral and on a pari passu or junior basis with the Term Loan Facility (or any refinancing indebtedness in respect thereof permitted by the terms of this Agreement) with respect to Term Loan Priority Collateral, (B) in the case of any renewal, extension, refinancing or refunding of Indebtedness secured by any Lien permitted by clause (b) or (d) above (or successive renewals, extensions, refinancings or refundings thereof) such renewal, extension, refinancing or refunding is made without any change in the class or category of assets or property subject to such Lien and no such Lien is extended to cover any additional class or category of assets or property, (C) in the case of any renewal, extension, refinancing or refunding of Indebtedness secured by any Lien permitted by clause (l) below (or successive renewals, extensions, refinancings or refundings thereof), such Lien does not extend to cover any other assets or property (other than the proceeds or products thereof and after-acquired property subjected to a Lien pursuant to terms existing at the time of such acquisition, it being understood that such requirement shall not be permitted to apply to any property to which such requirement would not have applied but for such acquisition) and (D) in the case of any renewal, extension, refinancing or refunding of Indebtedness secured by any Lien permitted by clause (q) below (or successive renewals, extensions, refinancings or refundings thereof), such Liens do not encumber any assets or property other than Collateral (with the priority of such Liens in the ABL Priority Collateral and Term Loan Priority Collateral or equivalent thereof being no less favorable to the Lenders than the priority set forth in the ABL/Term Loan Intercreditor Agreement); and (E) in the case of any renewal, extension, refinancing or refunding of Indebtedness of the Parent Borrower and its Restricted Subsidiaries permitted by Subsection 8.13(i) , that the principal amount of such Indebtedness is not increased except as permitted by Subsection 8.13(i) .

(f) Liens on assets of any Foreign Subsidiary of the Parent Borrower securing Indebtedness of such Foreign Subsidiary permitted under Subsection 8.13(h) ;

(g) Liens in favor of lessors securing operating leases permitted hereunder;

(h) statutory or common law Liens or rights of setoff of depository banks or securities intermediaries with respect to deposit accounts, securities accounts or other funds of the Parent Borrower or any Restricted Subsidiary maintained at such banks or intermediaries, including to secure fees and charges in connection with returned items or the standard fees and charges of such banks or intermediaries in connection with the deposit accounts, securities accounts or other funds maintained by the Parent Borrower or such Restricted Subsidiary at such banks or intermediaries (excluding any Indebtedness for borrowed money owing by the Parent Borrower or such Restricted Subsidiary to such banks or intermediaries);

(i) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by the Parent Borrower or its Restricted Subsidiaries in the ordinary course of business;

(j) Liens securing Indebtedness of the Parent Borrower and its Restricted Subsidiaries permitted by Subsection 8.13(p) ;

 

147


(k) (i) Liens on the property or assets described in Subsection 8.13(q) in respect of Indebtedness of the Parent Borrower and its Subsidiaries permitted by Subsection 8.13(q) , (ii) Liens on cash, Cash Equivalents and Temporary Cash Investments in respect of Indebtedness permitted by Subsection 8.13(x) , or (iii) Liens securing Management Advances or Management Guarantees, in each case including Liens securing any Guarantee of any thereof;

(l) Liens securing Indebtedness of the Parent Borrower and its Restricted Subsidiaries permitted by Subsection 8.13(m) assumed in connection with any Permitted Acquisition (other than Liens on the Capital Stock of any Person that becomes a Restricted Subsidiary); provided that (i) such Lien was not created in contemplation of such acquisition or such Person becoming a Restricted Subsidiary, (ii) such Lien does not extend to cover any other assets or property (other than the proceeds or products thereof and after-acquired property subjected to a Lien pursuant to terms existing at the time of such acquisition, it being understood that such requirement shall not be permitted to apply to any property to which such requirement would not have applied but for such acquisition) and (iii) such Lien shall be created no later than the later of the date of such acquisition or the date of the assumption of such Indebtedness (other than as permitted by clause (ii) above);

(m) any encumbrance or restriction (including put and call agreements) with respect to the Capital Stock of any joint venture or similar arrangement pursuant to the joint venture or similar agreement with respect to such joint venture or similar arrangement;

(n) Liens on intellectual property, including any foreign patents, patent applications, trademarks, trademark applications, trade names, copyrights, technology, know-how or processes; provided that such Liens result from the granting of licenses in the ordinary course of business to any Person to use such intellectual property or such foreign patents, patent applications, trademarks, trademark applications, trade names, copyrights, technology, know-how or processes, as the case may be;

(o) Liens in respect of Guarantee Obligations permitted under Subsection 8.13(f) relating to Indebtedness otherwise permitted under Subsection 8.13 , to the extent Liens in respect of such Indebtedness are permitted under this Subsection 8.14 ;

(p) Liens on assets of the Parent Borrower or any of its Restricted Subsidiaries not otherwise permitted by the foregoing clauses of this Subsection 8.14 securing obligations or other liabilities of the Parent Borrower or any of its Restricted Subsidiaries; provided that the aggregate outstanding amount of obligations and liabilities secured by such Liens (when created), when aggregated with the amount of all other obligations and liabilities secured by other Liens incurred and outstanding under this clause (p), shall not exceed the greater of (i) $350,000,000 and (ii) the amount equal to 2.10% of Consolidated Total Assets at the time such obligations are incurred; provided , further , that any Lien securing Indebtedness created pursuant to this clause (p) on ABL Priority Collateral shall be junior to the Lien on ABL Priority Collateral securing the Obligations under this Facility and subject to the terms of the ABL/Term Loan Intercreditor Agreement or otherwise be on terms reasonably satisfactory to the Administrative Agent;

(q) Liens securing Indebtedness permitted by Subsections 8.13(k) and 8.13(t) , provided that to the extent that the Parent Borrower determines to secure such Indebtedness with a Lien on any ABL Priority Collateral on a basis pari passu in priority with the Liens securing the amounts due under the Facility and with a higher payment priority pursuant to Subsection 10.14 than Interest Rate Protection Agreements, Hedging Agreements, other Permitted Hedging Arrangements or Cash Management Arrangements otherwise secured under the Security Documents,

 

148


(x) only in respect of (i) any Bank Product Agreements constituting such Indebtedness permitted by Subsection 8.13(k) that are designated as Designated Cash Management Agreements and (ii) any Interest Rate Protection Agreements, Hedging Agreements or other Permitted Hedging Arrangements constituting such Indebtedness permitted by Subsection 8.13(t) that are designated as Designated Hedging Agreements, in each case in accordance with the terms of Subsection 11.22 and (y) provided that either (1) the other party to such Bank Product Agreement, Interest Rate Protection Agreement, Hedging Agreement or other Permitted Hedging Arrangement, as the case may be, that is so designated, or an agent, trustee or other representative therefor, shall enter into a joinder to the ABL/Term Loan Intercreditor Agreement as contemplated thereby, or another intercreditor agreement in form and substance reasonably satisfactory to the Parent Borrower and the Administrative Agent or (2) the Parent Borrower shall designate the other party to such Bank Product Agreement, Interest Rate Protection Agreement, Hedging Agreement or other Permitted Hedging Arrangement, as the case may be, as a Bank Products Affiliate or a Hedging Affiliate for the purposes of the Guarantee and Collateral Agreement in accordance with the terms of Subsection 11.22 ;

(r) Liens securing Indebtedness permitted by Subsection 8.13(u) or (v) ;

(s) Retained Rights;

(t) Municipal Contract Liens; and

(u) any other Lien on property or assets of Parent Borrower or any of its Subsidiaries (other than ABL Priority Collateral) permitted under the Term Loan Facility or any Additional Term Credit Facility.

For purposes of determining compliance with this Subsection 8.14 , (i) a Lien need not be incurred solely by reference to one category of Permitted Liens described in this Subsection 8.14 but may be incurred under any combination of such categories (including in part under one such category and in part under any other such category), (ii) in the event that a Lien (or any portion thereof) meets the criteria of one or more of such categories of Permitted Liens, the Parent Borrower shall, in its sole discretion, classify or reclassify such Lien (or any portion thereof) and may include the amount and type of such Lien in one or more of the clauses of this Subsection 8.14 , (iii) if any Liens securing Indebtedness are incurred to refinance Liens securing Indebtedness initially incurred in reliance on a basket measured by reference to a percentage of Consolidated Total Assets at the time of incurrence, and such refinancing would cause the percentage of Consolidated Total Assets restriction to be exceeded if calculated based on the Consolidated Total Assets on the date of such refinancing, such percentage of Consolidated Total Assets restriction shall not be deemed to be exceeded so long as the principal amount of such Indebtedness secured by such Liens does not exceed the principal amount of such Indebtedness secured by such Liens being refinanced, plus accrued interest, any premium and reasonable commission, fees, underwriting discounts and other costs and expenses incurred in connection with such refinanced Indebtedness, (iv) it is understood that a Lien securing Indebtedness that is permitted by the foregoing provisions of this Subsection 8.14 may secure Obligations with respect to such Indebtedness, and (v) in the event that the Parent Borrower shall classify Indebtedness incurred on the date of determination as secured in part pursuant to Subsection 8.14(a) in respect of Indebtedness Incurred pursuant to Subsection 8.13(a)(i)(B) and clause (ii) of the definition of “Maximum Incremental Facilities Amount” and in part pursuant to one or more other clauses of Subsection 8.14 , as provided in clause (ii) of this paragraph, any calculation of the Consolidated First-Lien Net Leverage Ratio (as defined in the Term Loan Credit Agreement), including in the definition of “Maximum Incremental Facilities Amount,” on any date of determination shall not include any such Indebtedness (and shall not give effect to any discharge of Indebtedness from the proceeds thereof) to the extent secured pursuant to any such other clause of Subsection 8.14 on such date of determination.

 

149


SECTION 9

Events of Default

9.1 Events of Default . Any of the following from and after the Third Amendment Effective Date shall constitute an event of default:

(a) Any of the Borrowers shall fail to pay any principal of any Loan or any Reimbursement Obligation when due in accordance with the terms hereof (whether at Stated Maturity, by mandatory prepayment or otherwise); or any of the Borrowers shall fail to pay any interest on any Loan, or any other amount payable hereunder, within five (5) Business Days after any such interest or other amount becomes due in accordance with the terms hereof; or

(b) Any representation or warranty made or deemed made by any Loan Party herein or in any other Loan Document (or in any amendment, modification or supplement hereto or thereto) or which is contained in any certificate furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any such other Loan Document shall prove to have been incorrect in any material respect on or as of the date made or deemed made; or

(c) Any Loan Party shall default in the payment, observance or performance of any term, covenant or agreement contained in (i) Subsection 4.16 ( provided that, if any such failure with respect to Subsection 4.16 (other than Subsections 4.16(b)(ii) and 4.16(b)(iii) ) is (x) of a type that can be cured within five (5) Business Days and (y) such Default could not materially adversely impact the Lenders’ Liens on the Collateral, such failure shall not constitute an Event of Default for a five (5) Business Day period after the occurrence thereof so long as the Loan Parties are diligently pursuing the cure of such failure and provided , further , that if any such failure with respect to Subsections 4.16(b)(ii) and 4.16(b)(iii) is (x) of a type that can be cured within three (3) Business Days and (y) such Default could not materially adversely impact the Lenders’ Liens on the Collateral, such failure shall not constitute an Event of Default for a three (3) Business Day period after the occurrence thereof so long as the Loan Parties are diligently pursuing the cure of such failure), (ii) Subsection 7.2(f) (after a grace period of five (5) Business Days or, if during the continuance of a Dominion Event, a grace period of one (1) Business Day) or (iii) Section 8; or

(d) Any Loan Party shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other than as provided in clauses (a) through (c) of this Subsection 9.1 ), and such default shall continue unremedied for a period of thirty (30) days after the earlier of (A) the date on which a Responsible Officer of the Parent Borrower becomes aware of such failure and (B) the date on which written notice thereof shall have been given to the Parent Borrower by the Administrative Agent or the Required Lenders; or

(e) Any Loan Party or any of its Restricted Subsidiaries shall (i) default in (x) any payment of principal of or interest on any Indebtedness (excluding the Loans and the Reimbursement Obligations) in excess of $150,000,000 or (y) in the payment of any Guarantee Obligation in excess of $150,000,000, beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness or Guarantee Obligation was created; or (ii) default in the observance or performance of any other agreement or condition relating to any Indebtedness (excluding the Loans and the Reimbursement Obligations) or Guarantee Obligation of Indebtedness referred to in clause (i) above or contained in any instrument or agreement evidencing, securing or relating thereto (other than a failure to provide notice of a default or an event of default

 

150


under such instrument or agreement), or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness or beneficiary or beneficiaries of such Guarantee Obligation (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice or lapse of time if required, such Indebtedness to become due prior to its Stated Maturity or such Guarantee Obligation to become payable (an “ Acceleration ”; and the term “ Accelerated ” shall have a correlative meaning), and such time shall have lapsed and, if any notice (a “ Default Notice ”) shall be required to commence a grace period or declare the occurrence of an event of default before notice of Acceleration may be delivered, such Default Notice shall have been given and such default, event or condition shall not have been remedied or waived by or on behalf of such holder or holders ( provided that this clause (ii) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder); or

(f) If (i) any Borrower or any Material Subsidiary of the Parent Borrower shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts (excluding, in each case, the solvent liquidation or reorganization of any Foreign Subsidiary of the Parent Borrower that is not a Loan Party), or (B) seeking appointment of a receiver, interim receiver, receivers, receiver and manager, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or any Borrower or any Material Subsidiary of the Parent Borrower shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against any Borrower or any Material Subsidiary of the Parent Borrower any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged, unstayed or unbonded for a period of sixty (60) days; or (iii) there shall be commenced against any Borrower or any Material Subsidiary of the Parent Borrower any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of an order for any such relief which shall not have been vacated, discharged, stayed or bonded pending appeal within sixty (60) days from the entry thereof; or (iv) any Borrower or any Material Subsidiary of the Parent Borrower shall take any corporate or other similar organizational action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) any Borrower or any Material Subsidiary of the Parent Borrower shall be generally unable to, or shall admit in writing its general inability to, pay its debts as they become due; or

(g) (i) Any Person shall engage in any “prohibited transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any failure to satisfy the minimum funding standard (within the meaning of Section 412 of the Code or Section 302 of ERISA), whether or not waived, shall exist with respect to any Plan or any Lien in favor of the PBGC or a Plan shall arise on the assets of either of the Parent Borrower or any Commonly Controlled Entity, (iii) a Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Single Employer Plan, which Reportable Event or commencement of proceedings or appointment of a trustee is in the reasonable opinion of the Administrative Agent likely to result in the termination of such Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for purposes of Title IV of ERISA other than a standard termination pursuant to Section 4041(b) of ERISA, (v) either of the Parent Borrower or any Commonly Controlled Entity shall, or

 

151


in the reasonable opinion of the Administrative Agent is reasonably likely to, incur any liability in connection with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan, or (vi) any other event or condition shall occur or exist with respect to a Plan; and in each case in clauses (i) through (vi) above, such event or condition, together with all other such events or conditions, if any, could be reasonably expected to result in a Material Adverse Effect; or

(h) One or more judgments or decrees shall be entered against the Parent Borrower or any of its Restricted Subsidiaries involving in the aggregate at any time a liability (net of any insurance or indemnity payments actually received in respect thereof prior to or within sixty (60) days from the entry thereof, or to be received in respect thereof in the event any appeal thereof shall be unsuccessful) of $150,000,000 or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within sixty (60) days from the entry thereof; or

(i) (i) Any material provision of any Security Document shall cease for any reason to be in full force and effect (other than pursuant to the terms hereof or thereof), or any Loan Party which is a party to any such Security Document shall so assert in writing, or (ii) the Lien created by any of the Security Documents shall cease to be perfected and enforceable in accordance with its terms or of the same effect as to perfection and priority purported to be created thereby with respect to any portion of the ABL Priority Collateral in excess of $50,000,000 (other than in connection with any termination of such Lien in respect of any Collateral as permitted hereby or by any Security Document), and such failure of such Lien to be perfected and enforceable with such priority shall have continued unremedied for a period of twenty (20) days;

(j) Any Loan Party shall assert in writing that any of the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement (after execution and delivery thereof) or any Other Intercreditor Agreement (after execution and delivery thereof) shall have ceased for any reason to be in full force and effect (other than pursuant to the terms hereof or thereof) or shall knowingly contest, or knowingly support any other Person in any action that seeks to contest, the validity or effectiveness of any such intercreditor agreement (other than pursuant to the terms hereof or thereof); or

(k) A Change of Control shall have occurred.

9.2 Remedies Upon an Event of Default .

(a) If any Event of Default occurs and is continuing, then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or (ii) of Subsection 9.1(f) with respect to any Borrower, automatically the Commitments, if any, shall immediately terminate and the Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement (including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) shall immediately become due and payable, and (B) if such event is any other Event of Default, either or both of the following actions may be taken: (i) with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders the Administrative Agent shall, by notice to the Borrower Representative, declare the Commitments to be terminated forthwith, whereupon the Commitments, if any, shall immediately terminate; and (ii) with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower Representative, declare the Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement (including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) to be due and payable forthwith, whereupon the same shall immediately become due and payable.

(b) Except as expressly provided above in this Section 9 , presentment, demand, protest and all other notices of any kind are hereby expressly waived.

 

152


9.3 Borrower’s Right to Cure .

(a) Notwithstanding anything to the contrary otherwise contained in Section 9 , in the event of any Event of Default under the covenant set forth in Subsection 8.1 and upon the receipt of a Specified Equity Contribution within the time period specified, and subject to the satisfaction of the other conditions with respect to Specified Equity Contribution set forth in the definition thereof, EBITDA shall be increased with respect to such applicable Fiscal Quarter and any four (4) Fiscal Quarter period that contains such Fiscal Quarter by the amount of such Specified Equity Contribution (the “ Cure Amount ”), solely for the purpose of measuring compliance with Subsection 8.1 . If, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Parent Borrower and its Restricted Subsidiaries, in each case, with respect to such Fiscal Quarter only), the Parent Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of Subsection 8.1 , they shall be deemed to have been in compliance therewith as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default hereunder that had occurred shall be deemed cured for the purposes of this Agreement.

(b) The parties hereby acknowledge that notwithstanding any other provision in this Agreement to the contrary, (i) the Cure Amount received pursuant to the occurrence of any Specified Equity Contribution shall be disregarded for purposes of determining any financial ratio-based conditions (other than as applicable to Subsection 8.1 ), pricing or any available basket under Section 8 and (ii) no Lender or Issuing Lender shall be required to make any extension of credit hereunder, if an Event of Default under the covenant set forth in Subsection 8.1 has occurred and is continuing, (x) during the ten (10) Business Day period during which a Specified Equity Contribution may be made, or (y) on the date on which a Borrowing Base Certificate is delivered and on which a Specified Equity Contribution may be made (in each case as provided in the definition of “Specified Equity Contribution”), unless and until the Cure Amount is actually received.

 

153


SECTION 10

The Agents and the Other Representatives

10.1 Appointment .

(a) Each Lender and each Issuing Lender hereby irrevocably designates and appoints the Agents as the agents of such Lender or Issuing Lender under this Agreement and the other Loan Documents, and each such Lender or Issuing Lender irrevocably authorizes each Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise such powers and perform such duties as are expressly delegated to or required of such Agent by the terms of this Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the Agents and the Other Representatives shall not have any duties or responsibilities, except, in the case of the Administrative Agent, the Collateral Agent and the Issuing Lender, those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against any Agent or the Other Representatives.

(b) Each of the Agents may perform any of their respective duties under this Agreement, the other Loan Documents and any other instruments and agreements referred to herein or therein by or through its respective officers, directors, agents, employees or affiliates, or delegate any and all such rights and powers to, any one or more sub-agents appointed by such Agent (it being understood and agreed, for the avoidance of doubt and without limiting the generality of the foregoing, that the Administrative Agent and the Collateral Agent may perform any of their respective duties under the Security Documents by or through one or more of their respective affiliates). Each Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as its activities as Agent.

(c) Except solely to the extent of the Parent Borrower’s rights to consent pursuant to and subject to the conditions in Subsection 10.9 and except for Subsections 10.8(a) , (b) , (c) and (e) and 10.13 , the provisions of this Section 10 are solely for the benefit of the Agents, the Lenders and the Issuing Lenders, and no Borrower or any other Loan Party shall have rights as a third-party beneficiary of any of such provisions.

10.2 The Administrative Agent and Affiliates . Each person serving as an Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include each person serving as an Agent hereunder in its individual capacity. Such person and its affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrowers or any Subsidiary or other Affiliate thereof as if such person were not an Agent hereunder and without any duty to account therefor to the Lenders.

10.3 Action by an Agent . Each Agent may execute any of its duties under this Agreement and the other Loan Documents by or through agents or attorneys-in-fact (including the Collateral Agent in the case of the Administrative Agent), and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact or counsel selected by it with reasonable care.

 

154


10.4 Exculpatory Provisions .

(a) No Agent shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, no Agent:

(i) shall be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

(ii) shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that such Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided that such Agent shall not be required to take any action that, in its judgment or the judgment of its counsel, may expose such Agent to liability or that is contrary to any Loan Document or applicable Requirement of Law; and

(iii) shall, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrowers or any of their Affiliates that is communicated to or obtained by the person serving as such Agent or any of its affiliates in any capacity.

(b) No Agent shall be liable for any action taken or not taken by it (x) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as such Agent shall believe in good faith shall be necessary, under the circumstances as provided in Subsection 11.1 ) or (y) in the absence of its own gross negligence or willful misconduct. No Agent shall be deemed to have knowledge of any Default unless and until notice describing such Default is given to such Agent by a Borrower, a Lender or an Issuing Lender.

(c) No Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Section 6 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to such Agent. Without limiting the generality of the foregoing, the use of the term “agent” in this Agreement with reference to the Administrative Agent or the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom and is intended to create or reflect only an administrative relationship between independent contracting parties.

(d) Each party to this Agreement acknowledges and agrees that the Administrative Agent may use an outside service provider for the tracking of all UCC financing statements required to be filed pursuant to the Loan Documents and notification to the Administrative Agent, of, among other things, the upcoming lapse or expiration thereof, and that any such service provider will be deemed to be acting at the request and on behalf of the Borrowers and the other Loan Parties. No Agent shall be liable for any action taken or not taken by any such service provider.

10.5 Acknowledgement and Representations by Lenders . Each Lender and each Issuing Lender expressly acknowledges that none of the Agents or the Other Representatives nor any of their

 

155


officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by any Agent or any Other Representative hereafter taken, including any review of the affairs of any Borrowers or any other Loan Party, shall be deemed to constitute any representation or warranty by such Agent or such Other Representative to any Lender. Each Lender further represents and warrants that it has had the opportunity to review the Confidential Information Memorandum and each other document made available to it on the Platform in connection with this Agreement and has acknowledged and accepted the terms and conditions applicable to the recipients thereof. Each Lender and each Issuing Lender represents to the Agents, the Other Representatives and each of the Loan Parties that, independently and without reliance upon any Agent, the Other Representatives or any other Lender, and based on such documents and information as it has deemed appropriate, it has made and will make, its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Borrowers and the other Loan Parties, it has made its own decision to make its Loans or issue Letters of Credit hereunder and enter into this Agreement and it will make its own decisions in taking or not taking any action under this Agreement and the other Loan Documents and, except as expressly provided in this Agreement, neither the Agents nor any Other Representative shall have any duty or responsibility, either initially or on a continuing basis, to provide any Lender or the holder of any Note with any credit or other information with respect thereto, whether coming into its possession before the making of the Loans or at any time or times thereafter. Each Lender and each Issuing Lender represents to each other party hereto that it is a bank, savings and loan association or other similar savings institution, insurance company, investment fund or company or other financial institution which makes or acquires commercial loans in the ordinary course of its business, that it is participating hereunder as a Lender or Issuing Lender, as applicable, for such commercial purposes, and that it has the knowledge and experience to be and is capable of evaluating the merits and risks of being a Lender hereunder. Each Lender and each Issuing Lender acknowledges and agrees to comply with the provisions of Subsection 11.6 applicable to the Lenders and Issuing Lenders hereunder.

10.6 Indemnity; Reimbursement by Lenders .

(a) To the extent that the Parent Borrower or any other Loan Party for any reason fails to indefeasibly pay any amount required under Subsection 11.5 to be paid by it to the Administrative Agent (or any sub-agent thereof), the Collateral Agent (or any sub-agent thereof), the Co-Collateral Agent (or any sub-agent thereof), the Issuing Lenders, the Swingline Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay ratably according to their respective Commitment Percentages in effect on the date on which the applicable unreimbursed expense or indemnity payment is sought under this Subsection 10.6 (or, if the applicable unreimbursed expense or indemnity payment is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with their Commitment Percentages, immediately prior to such date) such unpaid amount (such indemnity shall be effective whether or not the related losses, claims, damages, liabilities and related expenses are incurred or asserted by any party hereto or any third party); provided that (i) the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent), the Collateral Agent (or any sub-agent thereof), the Co-Collateral Agent (or any sub-agent thereof), the Swingline Lender or the Issuing Lenders in their capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), the Collateral Agent (or any sub-agent thereof), the Co-Collateral Agent (or any sub-agent thereof), the Swingline Lender or Issuing Lenders in connection with such capacity and (ii) such indemnity for the Swingline Lender or the Issuing Lenders shall not include losses incurred by the Swingline Lender or the Issuing Lenders due to one or more Lenders defaulting in their obligations to purchase participations of Swingline Exposure under Subsections 2.4(c) and 2.4(d) or L/C Obligations under Subsection 3.4 (it being understood that this proviso shall not affect the Swingline Lender’s or any Issuing Lender’s rights against any Defaulting Lender). The obligations of the Lenders under this Subsection 10.6 are subject to the provisions of Subsection 4.8 .

 

156


(b) Any Agent shall be fully justified in failing or refusing to take any action hereunder and under any other Loan Document (except actions expressly required to be taken by it hereunder or under the Loan Documents) unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and all liability, cost and expense that it may incur by reason of taking or continuing to take any such action.

(c) All amounts due under this Subsection 10.6 shall be payable not later than 3 Business Days after demand therefor. The agreements in this Subsection 10.6 shall survive the payment of the Loans and all other amounts payable hereunder.

10.7 Right to Request and Act on Instructions; Reliance .

(a) Each Agent may at any time request instructions from the Lenders with respect to any actions or approvals which by the terms of this Agreement or of any of the Loan Documents an Agent is permitted or desires to take or to grant, and if such instructions are promptly requested, the requesting Agent shall be absolutely entitled as between itself and the Lenders to refrain from taking any action or to withhold any approval and shall not be under any liability whatsoever to any Lender for refraining from any action or withholding any approval under any of the Loan Documents until it shall have received such instructions from Required Lenders or all or such other portion of the Lenders as shall be prescribed by this Agreement. Without limiting the foregoing, no Lender shall have any right of action whatsoever against any Agent as a result of an Agent acting or refraining from acting under this Agreement or any of the other Loan Documents in accordance with the instructions of Required Lenders or Supermajority Lenders (or all or such other portion of the Lenders as shall be prescribed by this Agreement) and, notwithstanding the instructions of Required Lenders or Supermajority Lenders (or such other applicable portion of the Lenders), an Agent shall have no obligation to any Lender to take any action if it believes, in good faith, that such action would violate applicable law or expose an Agent to any liability for which it has not received satisfactory indemnification in accordance with the provisions of Subsection 10.6 .

(b) Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper person. Each Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender or such Issuing Lender unless the Administrative Agent shall have received notice to the contrary from such Lender or such Issuing Lender prior to the making of such Loan or the issuance of such Letter of Credit. Each Agent may consult with legal counsel (who may be counsel for the Borrowers), independent accountants and other experts selected by it, and shall be entitled to rely upon the advice of any such counsel, accountants or experts and shall not be liable for any action taken or not taken by it in accordance with such advice.

10.8 Collateral Matters .

(a) Each Lender authorizes and directs the Collateral Agent to enter into (x) the Security Documents and the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement for the benefit of the Lenders and the other Secured Parties, (y) any amendments, amendments and restatements, restatements or waivers of or supplements to or other modifications to the Security Documents and the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement or enter into other intercreditor

 

157


agreements in connection with the incurrence by any Loan Party or any Subsidiary thereof of Additional Indebtedness (each an “ Intercreditor Agreement Supplement ”) to permit such Additional Indebtedness to be secured by a valid, perfected lien (with such priority as may be designated by the Parent Borrower or relevant Subsidiary, to the extent such priority is permitted by the Loan Documents) and (z) any amendments provided for under Subsections 2.6 , 2.7 and 2.8 , respectively. Each Lender hereby agrees, and each holder of any Note or participant in Letters of Credit by the acceptance thereof will be deemed to agree, that, except as otherwise set forth herein, any action taken by the Collateral Agent or the Required Lenders in accordance with the provisions of this Agreement, the Security Documents, the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement, any Intercreditor Agreement Supplement, or any agreement required in connection with an Incremental Facility pursuant to Subsection 2.6 , any agreement required in connection with a Refinancing Amendment pursuant to Subsection 2.7 and any agreement required in connection with an Extension Offer pursuant to Subsection 2.8 , and the exercise by the Agents or the Required Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders; provided that the Collateral Agent shall exercise its rights under the Security Documents, the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement as directed by the Security Agents. The Collateral Agent is hereby authorized on behalf of all of the Lenders, without the necessity of any notice to or further consent from any Lender, from time to time, to take any action with respect to any applicable Collateral or Security Documents which may be necessary to perfect and maintain perfected the security interest in and liens upon the Collateral granted pursuant to the Security Documents with the consent of the Security Agents. Each Lender agrees that it will not have any right individually to enforce or seek to enforce any Security Document or to realize upon any Collateral for the Loans unless instructed to do so by the Collateral Agent, it being understood and agreed that such rights and remedies may be exercised only by the Collateral Agent. The Collateral Agent may grant extensions of time for the creation and perfection of security interests in or the obtaining of title insurance, legal opinions or other deliverables with respect to particular assets or the provision of any guarantee by any Subsidiary (including extensions beyond the Third Amendment Effective Date or in connection with assets acquired, or Subsidiaries formed or acquired, after the Third Amendment Effective Date) where the Security Agents determine that such action cannot be accomplished without undue effort or expense by the time or times at which it would otherwise be required to be accomplished by this Agreement or the Security Documents. Each Lender consents to the releases of Collateral for the Original Credit Agreement contemplated by the Third Amendment.

(b) The Lenders hereby authorize each Agent, in each case at its option and in its discretion, (A) to release any Lien granted to or held by such Agent upon any Collateral (i) upon termination of the Commitments and payment and satisfaction of all of the Obligations under the Loan Documents at any time arising under or in respect of this Agreement or the Loan Documents or the transactions contemplated hereby or thereby that are then due and unpaid, (ii) constituting property being sold or otherwise disposed of (to Persons other than a Loan Party) upon the sale or other disposition thereof, (iii) owned by any Subsidiary Guarantor which becomes an Excluded Subsidiary (so long as Excess Availability after excluding the assets of such Subsidiary from the Borrowing Base would not be less than zero) or ceases to be a Restricted Subsidiary of the Parent Borrower or constituting Capital Stock or other equity interests that are Excluded Assets, (iv) if approved, authorized or ratified in writing by the Required Lenders (or such greater amount, to the extent required by Subsection 11.1 ), (v) constituting Term Loan Priority Collateral upon the “ Discharge of Term Loan Collateral Obligations ” (as defined in the ABL/Term Loan Intercreditor Agreement) or (vi) as otherwise may be expressly provided in the relevant Security Documents, (B) enter into any intercreditor agreement (including the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement) on behalf of, and binding with respect to, the Lenders and their interest in designated assets, including to clarify the respective rights of all parties in and to designated assets, (C) to subordinate any Lien (or confirm the absence

 

158


of any Lien) on any Excluded Assets or any other property granted to or held by such Agent, as the case may be under any Loan Document, to the holder of any Lien on such property that is permitted by Subsection 8.14 and (D) to release any Subsidiary Guarantor from its Obligations under any Loan Documents to which it is a party if such Person ceases to be a Restricted Subsidiary of the Parent Borrower or becomes an Excluded Subsidiary. Upon request by any Agent, at any time, the Lenders will confirm in writing any Agent’s authority to release particular types or items of Collateral pursuant to this Subsection 10.8 .

(c) The Lenders hereby authorize the Administrative Agent and the Collateral Agent, as the case may be, in each case at its option and in its discretion, to enter into any amendment, amendment and restatement, restatement, waiver, supplement or modification, and to make or consent to any filings or to take any other actions, in each case as contemplated by Subsection 11.17 . Upon request by any Agent, at any time, the Lenders will confirm in writing the Administrative Agent’s and the Collateral Agent’s authority under this Subsection 10.8(c) .

(d) No Agent shall have any obligation whatsoever to the Lenders to assure that the Collateral exists or is owned by the Parent Borrower or any of its Restricted Subsidiaries or is cared for, protected or insured or that the Liens granted to any Agent herein or pursuant hereto have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Agents in this Subsection 10.8 or in any of the Security Documents, it being understood and agreed by the Lenders that in respect of the Collateral, or any act, omission or event related thereto, each Agent may act in any manner it may deem appropriate, in its sole discretion, given such Agent’s own interest in the Collateral as a Lender and that no Agent shall have any duty or liability whatsoever to the Lenders, except for its bad faith, gross negligence or willful misconduct.

(e) Notwithstanding any provision herein to the contrary, any Security Document may be amended (or amended and restated), restated, waived, supplemented or modified as contemplated by and in accordance with either Subsection 11.1 or 11.17 , as applicable, with the written consent of the Security Agents and the Loan Party party thereto.

(f) The Collateral Agent may, and hereby does, appoint the Administrative Agent as its agent for the purposes of holding any Collateral and/or perfecting the Collateral Agent’s security interest therein and for the purpose of taking such other action with respect to the collateral as such Agents may from time to time agree.

10.9 Successor Agent . Subject to the appointment of a successor as set forth herein, (i) the Administrative Agent, the Collateral Agent or the Co-Collateral Agent may be removed by the Required Lenders if the Administrative Agent, the Collateral Agent, the Co-Collateral Agent, or a controlling affiliate of the Administrative Agent, the Collateral Agent or the Co-Collateral Agent is a Defaulting Lender or, in the case of the Co-Collateral Agent, if the Co-Collateral Agent ceases to be a Lender and (ii) the Administrative Agent and the Collateral Agent may resign as Administrative Agent or Collateral Agent, respectively, in each case upon 10 days’ notice to the Lenders, the Issuing Lenders and the Parent Borrower. If the Administrative Agent, the Collateral Agent or the Co-Collateral Agent shall be removed by the Required Lenders pursuant to clause (i) above or if the Administrative Agent or the Collateral Agent shall resign as Administrative Agent or Collateral Agent, as applicable, under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which such successor agent shall be subject to approval by the Parent Borrower; provided that such approval by the Parent Borrower in connection with the appointment of any successor Administrative Agent shall only be required so long as no Event of Default under Subsection 9.1(a) or

 

159


9.1(f) has occurred and is continuing; provided , further , that the Parent Borrower shall not unreasonably withhold its approval of any successor Administrative Agent if such successor is a commercial bank with a consolidated combined capital and surplus of at least $5,000,000,000; provided , further , that if no successor shall have been so appointed in accordance with the foregoing requirements and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent, in consultation with the Parent Borrower, may appoint a successor Administrative Agent which shall be a commercial bank with a consolidated combined capital and surplus of at least $5.0 billion with an office in New York, New York, or an Affiliate of any such bank. Upon the successful appointment of a successor agent, such successor agent shall succeed to the rights, powers and duties of the Administrative Agent, the Collateral Agent or the Co-Collateral Agent, as applicable, and the term “Administrative Agent,” “Collateral Agent” or “Co-Collateral Agent,” as applicable, shall mean such successor agent effective upon such appointment and approval, and the former Agent’s rights, powers and duties as Administrative Agent, Collateral Agent or the Co-Collateral Agent, as applicable, shall be terminated, without any other or further act or deed on the part of such former Agent or any of the parties to this Agreement or any holders of the Loans or issuers of Letters of Credit. After any retiring Agent’s resignation or removal as Agent, the provisions of this Section 10 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement and the other Loan Documents. Additionally, after such retiring Agent’s resignation as such Agent, the provisions of this Subsection 10.9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was such Agent under this Agreement and the other Loan Documents. After the resignation or removal of any Administrative Agent pursuant to the preceding provisions of this Subsection 10.9 , such resigning or removed Administrative Agent (x) shall not be required to act as Issuing Lender for any Letters of Credit to be issued after the date of such resignation or removal (and all unpaid fees accrued for the account of the resigning Issuing Lender shall be paid in full upon its resignation or removal) and (y) shall not be required to act as Swingline Lender with respect to Swingline Loans to be made after the date of such resignation or removal (and all outstanding Swingline Loans of such resigning or removed Administrative Agent shall be required to be repaid in full upon its resignation or removal), although the resigning or removed Administrative Agent shall retain all rights hereunder as Issuing Lender and Swingline Lender with respect to all Letters of Credit issued by it, and all Swingline Loans made by it, prior to the effectiveness of its resignation or removal as Administrative Agent hereunder. The fees payable by the Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor.

10.10 Swingline Lender . The provisions of this Section 10 shall apply to the Swingline Lender in its capacity as such to the same extent that such provisions apply to the Administrative Agent.

10.11 Withholding Tax . To the extent required by any applicable law, each Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding tax, and in no event shall such Agent be required to be responsible for or pay any additional amount with respect to any such withholding. If the Internal Revenue Service or any other Governmental Authority asserts a claim that any Agent did not properly withhold tax from amounts paid to or for the account of any Lender because the appropriate form was not delivered or was not properly executed or because such Lender failed to notify such Agent of a change in circumstances which rendered the exemption from or reduction of withholding tax ineffective or for any other reason, without limiting the provisions of Subsection 4.11(a) or 4.12 , such Lender shall indemnify such Agent fully for all amounts paid, directly or indirectly, by such Agent as tax or otherwise, including any penalties or interest and together with any expenses incurred and shall make payable in respect thereof within thirty (30) days after demand therefor. A certificate as to the amount of such payment or liability delivered to any Lender or any Issuing Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender and each Issuing Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender or such Issuing Lender under this Agreement or any other Loan Document against any

 

160


amount due the Administrative Agent under this Subsection 10.11 . The agreements in this Subsection 10.11 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations. For purposes of this Subsection 10.11 , the term “Lender” includes any Issuing Lender.

10.12 Other Representatives . None of the entities identified as joint bookrunners and joint lead arrangers pursuant to the definition of Other Representative contained herein, shall have any duties or responsibilities hereunder or under any other Loan Document in its capacity as such. Without limiting the foregoing, no Other Representative shall have nor be deemed to have a fiduciary relationship with any Lender. At any time that any Lender serving as an Other Representative shall have transferred to any other Person (other than any of its affiliates) all of its interests in the Loans and in the Commitments, such Lender shall be deemed to have concurrently resigned as such Other Representative.

10.13 Appointment of Borrower Representatives . Each Borrower hereby designates the Parent Borrower as its Borrower Representative. The Borrower Representative will be acting as agent on each of the Borrowers’ behalf for the purposes of issuing notices of Borrowing and notices of conversion/continuation of any Loans pursuant to Subsection 4.2 or similar notices, giving instructions with respect to the disbursement of the proceeds of the Loans, selecting interest rate options, requesting Letters of Credit, giving and receiving all other notices and consents hereunder or under any of the other Loan Documents and taking all other actions (including in respect of compliance with covenants) on behalf of any Borrower or the Borrowers under the Loan Documents. The Borrower Representative hereby accepts such appointment. Each Borrower agrees that each notice, election, representation and warranty, covenant, agreement and undertaking made on its behalf by the Borrower Representative shall be deemed for all purposes to have been made by such Borrower and shall be binding upon and enforceable against such Borrower to the same extent as if the same had been made directly by such Borrower.

10.14 Application of Proceeds . The Lenders and the Agents agree, as among such parties, as follows: subject to the terms of the ABL/Term Loan Intercreditor Agreement, the Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement or any Intercreditor Agreement Supplement, after the occurrence and during the continuance of an Event of Default, all amounts collected or received by the Administrative Agent, the Collateral Agent, any Lender or any Issuing Lender on account of amounts then due and outstanding under any of the Loan Documents shall, except as otherwise expressly provided herein, be applied as follows:  first , to pay interest on and then principal of Agent Advances then outstanding, second , to pay interest on and then principal of Swingline Loans then outstanding, third , to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees to the extent provided herein) due and owing hereunder of the Administrative Agent and the Security Agents in connection with enforcing the rights of the Agents, the Lenders and the Issuing Lenders under the Loan Documents (including all expenses of sale or other realization of or in respect of the Collateral and any sums advanced to the Collateral Agent or to preserve its security interest in the Collateral), fourth , to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees to the extent provided herein) due and owing hereunder of each of the Lenders and each of the Issuing Lenders in connection with enforcing such Lender’s or such Issuing Lender’s rights under the Loan Documents, fifth , to pay (on a ratable basis) (A) interest on and then principal of Revolving Credit Loans then outstanding and any Reimbursement Obligations then outstanding, and to cash collateralize any outstanding L/C Obligations on terms reasonably satisfactory to the Administrative Agent and (B) any outstanding obligations payable under (i) Designated Cash Management Agreements, up to the maximum amount of the Cash Management Reserves then in effect with respect thereto and (ii) Designated Hedging Agreements up to the maximum amount of the Designated Hedging Reserves then in effect with respect thereto in each case which are secured under the Security Documents or otherwise, sixth , to pay obligations under Cash Management Arrangements (other than pursuant to any Designated Cash Management Agreements, but including any

 

161


amounts not paid pursuant to clause “ fifth ”(B)(i) above) and Permitted Hedging Arrangements (other than pursuant to any Designated Hedging Agreements, but including any amounts not paid pursuant to clause “ fifth ”(B)(ii) above) permitted hereunder and secured by the Guarantee and Collateral Agreement and seventh , to pay the surplus, if any, to whomever may be lawfully entitled to receive such surplus. To the extent that any amounts available for distribution pursuant to clause “ fifth ” above are attributable to the issued but undrawn amount of outstanding Letters of Credit which are then not yet required to be reimbursed hereunder, such amounts shall be held by the Collateral Agent in a cash collateral account and applied (x) first, to reimburse the applicable Issuing Lender from time to time for any drawings under such Letters of Credit and (y) then, following the expiration of all Letters of Credit, to all other obligations of the types described in such clause “ fifth .” To the extent any amounts available for distribution pursuant to clause “ fifth ” are insufficient to pay all obligations described therein in full, such moneys shall be allocated pro rata among the Lenders and Issuing Lenders based on their respective Commitment Percentages. This Subsection 10.14 may be amended (and the Lenders hereby irrevocably authorize the Administrative Agent to enter into any such amendment) to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new classes or tranches of loans added pursuant to Subsections 2.6 , 2.7 and 2.8 , as applicable.

SECTION 11

Miscellaneous

11.1 Amendments and Waivers .

(a) Neither this Agreement nor any other Loan Document, nor any terms hereof or thereof, may be amended, supplemented, modified or waived except in accordance with the provisions of this Subsection 11.1 . The Required Lenders may, or, with the written consent of the Required Lenders, the Administrative Agent may, from time to time, (x) enter into with the respective Loan Parties hereto or thereto, as the case may be, written amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any provisions to this Agreement or to the other Loan Documents or changing, in any manner the rights or obligations of the Lenders or the Loan Parties hereunder or thereunder or (y) waive at any Loan Party’s request, on such terms and conditions as the Required Lenders or the Administrative Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its consequences; provided , however , that amendments pursuant to Subsections 11.1(d) and 11.1(f) may be effected without the consent of the Required Lenders to the extent provided therein; provided , further , that no such waiver and no such amendment, supplement or modification shall:

(i) (A) reduce or forgive the amount or extend the scheduled date of maturity of any Loan or any Reimbursement Obligation or of any scheduled installment thereof (including extending the Termination Date), (B) reduce the stated rate of any interest, commission or fee payable hereunder (other than as a result of any waiver of the applicability of any post-default increase in interest rates) or postpone any date scheduled for any payment of any interest payable hereunder, (C) (except as provided in Subsection 11.1(d) ) increase the amount or extend the expiration date of any Lender’s Commitment or extend the scheduled date of any payment thereof or (D) change the currency in which any Loan or Reimbursement Obligation is payable, in each case without the consent of each Lender directly and adversely affected thereby (it being understood that amendments or supplements to, or waivers or modifications of, any conditions precedent, representations, warranties, covenants, Defaults or Events of Default or of a mandatory repayment or mandatory reduction in the aggregate Commitments of all Lenders shall not constitute an increase of the Commitment of, or an extension of the scheduled date of maturity, any scheduled installment, or the scheduled date of payment of the Loans of, any Lender, and that an increase in the available portion of any Commitment of any Lender shall not constitute an increase in the Commitment of such Lender)

 

162


(ii) amend, modify or waive any provision of this Subsection 11.1(a) or reduce the percentage specified in the definition of “Required Lenders” or “Supermajority Lenders,” or consent to the assignment or transfer by the Parent Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, in each case without the written consent of all the Lenders; provided that, as further provided in Subsection 11.1(d) , the definition of “Required Lenders” and “Supermajority Lenders” may be amended in connection with any amendment pursuant to Subsections 2.6 , 2.7 or 2.8 to include appropriately the Lenders participating in such incremental facility, refinancing, or extension in any required vote or action of the Required Lenders or the Supermajority Lenders, as applicable;

(iii) release all or substantially all of the Guarantors under any Security Document, or, in the aggregate (in a single transaction or a series of related transactions), all or substantially all of the Collateral without the consent of all of the Lenders, except as expressly permitted hereby or by any Security Document (as such documents are in effect on the Third Amendment Effective Date or, if later, the date of execution and delivery thereof in accordance with the terms hereof);

(iv) require any Lender to make Loans having an Interest Period of longer than six months or shorter than one month without the consent of such Lender;

(v) amend, modify or waive any provision of Section 10 without the written consent of the then Agents;

(vi) amend, modify or waive any provision of Subsections 10.1(a) , 10.5 or 10.12 without the written consent of any Other Representative directly and adversely affected thereby;

(vii) amend, modify or waive any provision of the Swingline Note (if any) or Subsection 2.4 without the written consent of the Swingline Lender and each other Lender, if any, which holds, or is required to purchase, a participation in any Swingline Loan pursuant to Subsection 2.4(d) ;

(viii) amend, modify or waive the provisions of any Letter of Credit or any L/C Obligation without the written consent of the Issuing Lender with respect thereto and each directly and adversely affected Lender;

(ix) increase the advance rates set forth in the definition of “Borrowing Base,” or make any change to the definitions of “Borrowing Base” (by adding additional categories or components thereof), “AMR Service Eligible Accounts,” “EmCare General Adjusted Eligible Accounts,” “EmCare General Eligible Accounts,” “Eligible Accounts,” “Eligible Inventory” or “Other Eligible Accounts” that would have the effect of increasing the amount of the Borrowing Base in each case without the consent of the Supermajority Lenders; provided that the Security Agents may increase or decrease the amount of, or otherwise modify or eliminate, any Availability Reserves that it implements in their Permitted Discretion in accordance with Subsection 2.1(b) or otherwise in accordance with the terms of this Agreement, and in any such case, such change will not be deemed to require any Supermajority Lender or other Lender consent; or

(x) amend, modify or waive the order of application of payments set forth in the penultimate sentence of Subsection 4.4(a) , or Subsections 4.4(d) , 4.8(a) , 4.16(g) , 10.14 or 11.7 hereof, in each case without the consent of each Lender directly and adversely affected thereby;

 

163


provided that, as more fully set forth in Subsection 11.1(d) , these sections may be amended or modified in connection with any amendment, supplement or joinder pursuant to Subsections 2.6 , 2.7 or 2.8 to reflect the priorities as permitted by, and contemplated by, such Subsections with the consent of the Administrative Agent and the Lenders participating in such incremental facility, refinancing, or extension,

provided , further , that notwithstanding and in addition to the foregoing, and in addition to Liens the Collateral Agent is authorized to release pursuant to Subsection 10.8(b) , the Collateral Agent may, with the consent of the Security Agents in their sole discretion, release the Lien on Collateral valued in the aggregate not in excess of $30,000,000 in any Fiscal Year without the consent of any Lender.

(b) Any waiver and any amendment, supplement or modification pursuant to this Subsection 11.1 shall apply to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Agents and all future holders of the Loans. In the case of any waiver, each of the Loan Parties, the Lenders and the Agents shall be restored to their former position and rights hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon.

(c) Notwithstanding any provision herein to the contrary, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except to the extent the consent of such Lender would be required under clause (i) in the second proviso to the second sentence of Subsection 11.1(a) .

(d) Notwithstanding any provision herein to the contrary, this Agreement and the other Loan Documents may be amended (i) to cure any ambiguity, mistake, omission, defect or inconsistency, (ii) in accordance with Subsection 2.6 to incorporate the terms of any Incremental ABL Term Loans and Incremental Revolving Commitments, (iii) by a Refinancing Amendment in accordance with Subsection 2.7 , (iv) in accordance with Subsection 2.8 to effectuate an Extension and to provide for non- pro rata borrowings and payments of any amounts hereunder as between the Loans and any Commitments in connection therewith, in each case with the consent of the Administrative Agent but without the consent of any Lender (except as expressly provided in Subsections 2.6 , 2.7 or 2.8 , as applicable) required, including, without limitation, as provided in Subsections 4.4(h) and 4.16(g) and (v) in accordance with Subsection 7.11 , to change the financial reporting convention.

(e) Notwithstanding any provision herein to the contrary, this Agreement may be amended (or deemed amended) or amended and restated with the written consent of the Required Lenders, the Administrative Agent and the Borrowers (x) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the existing Facilities and the accrued interest and fees in respect thereof, (y) to include, as appropriate, the Lenders holding such credit facilities in any required vote or action of the Required Lenders or of the Lenders of each Facility hereunder and (z) to provide class protection for any additional credit facilities.

(f) Notwithstanding any provision herein to the contrary, any Security Document may be amended (or amended and restated), restated, waived, supplemented or modified as contemplated by Subsection 11.17 with the written consent of the Agent party thereto and the Loan Party party thereto.

(g) If, in connection with any proposed change, waiver, discharge or termination of or to any of the provisions of this Agreement and/or any other Loan Document as contemplated by Sub section 11.1(a) ,

 

164


the consent of the Supermajority Lenders, each Lender or each affected Lender, as applicable, is required and the consent of the Required Lenders at such time is obtained but the consent of one or more of such other Lenders whose consent is required is not obtained (each such other Lender, a “ Non-Consenting Lender ”) then the Parent Borrower may, on notice to the Administrative Agent and the Non-Consenting Lender, (A) replace such Non-Consenting Lender by causing such Lender to (and such Lender shall be obligated to) assign pursuant to Subsection 11.6 (with the assignment fee and any other costs and expenses to be paid by the Parent Borrower in such instance) all of its rights and obligations under this Agreement to one or more assignees; provided that neither the Administrative Agent nor any Lender shall have any obligation to the Parent Borrower to find a replacement Lender; provided , further , that the applicable assignee shall have agreed to the applicable change, waiver, discharge or termination of this Agreement and/or the other Loan Documents; and provided , further , that all obligations of the Borrowers owing to the Non-Consenting Lender relating to the Loans and participations so assigned shall be paid in full by the assignee Lender (or, at the Parent Borrower’s option, by a Borrower) to such Non-Consenting Lender concurrently with such Assignment and Acceptance or (B) so long as no Event of Default under Subsection 9.1(a) or 9.1(f) then exists or will exist immediately after giving effect to the respective prepayment, upon notice to the Administrative Agent, prepay the Loans and, at the Parent Borrower’s option, terminate the Commitments of such Non-Consenting Lender, in whole or in part, subject to Subsection 4.12 , without premium or penalty. In connection with any such replacement under this Subsection 11.1(g) , if the Non-Consenting Lender does not execute and deliver to the Administrative Agent a duly completed Assignment and Acceptance and/or any other documentation necessary to reflect such replacement by the later of (a) the date on which the replacement Lender executes and delivers such Assignment and Acceptance and/or such other documentation and (b) the date as of which all obligations of the Borrowers owing to the Non-Consenting Lender relating to the Loans and participations so assigned shall be paid in full by the assignee Lender to such Non-Consenting Lender, then such Non-Consenting Lender shall be deemed to have executed and delivered such Assignment and Acceptance and/or such other documentation as of such date and the applicable Borrower shall be entitled (but not obligated) to execute and deliver such Assignment and Acceptance and/or such other documentation on behalf of such Non-Consenting Lender.

11.2 Notices .

(a) All notices, requests, and demands to or upon the respective parties hereto to be effective shall be in writing (including telecopy or electronic mail), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered by hand, or three days after being deposited in the mail, postage prepaid, or, in the case of telecopy or electronic mail notice, when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day) or, in the case of delivery by a nationally recognized overnight courier, when received, addressed as follows in the case of the Borrowers, the Administrative Agent and the Collateral Agent, and as set forth in Schedule A in the case of the other parties hereto, or to such other address as may be hereafter notified by the respective parties hereto and any future holders of the Loans:

 

The Parent Borrower (including in its capacity as Borrower Representative)   

Envision Healthcare Corporation

6363 S. Fiddlers Green Circle

14th Floor

Greenwood Village, Colorado 80111

Attention: General Counsel

Facsimile: (303) 495-1800

Telephone: (303) 495-1254

   and

 

165


   Envision Healthcare Corporation
   1 Burton Hills Blvd.
   Nashville, TN 37215
   Attention: Chief Financial Officer
   Facsimile: (615) 234-1426
   Telephone: (615) 665-1283
With copies to:    Debevoise & Plimpton LLP
   919 Third Avenue
   New York, New York 10022
   Attention: Jeffrey E. Ross, Esq.
   Facsimile: (212) 521-7465
   Telephone: (212) 909-6000
The Administrative Agent/the Collateral Agent:   

Deutsche Bank AG New York Branch

Agent: 60 Wall Street

   New York, New York 10005
   Attention: Randall Mann
   Telephone: (212) 250-5552
   Email: randall.mann@db.com
   and
   Deutsche Bank Trust Company Americas
   5022 Gate Parkway, Suite 200
   Jacksonville, Florida 32256
   Attention: Ryan Johnson
   Telephone: (904) 645-1089
   Email:  ryan.johnson@db.com
With copies to:    White & Case LLP
   1155 Avenue of the Americas
   New York, New York 10036
   Attention: Eliza McDougall
   Facsimile: (212) 354-8113
   Telephone: (212) 819-2590
   Email: emcdougall@whitecase.com
The Co- Collateral Agent    JPMorgan Chase Bank, N.A.
   3424 Peachtree Road, NE, 23 rd Floor
   Atlanta, GA 30326
   Attention: Regional Portfolio Manager
   Facsimile: 404-926-2655
   Telephone: 404- 926-2707

provided that any notice, request or demand to or upon the Administrative Agent or the Lenders pursuant to Subsection 3.2 , 4.2 , 4.4 or 4.8 shall not be effective until received.

(b) Without in any way limiting the obligation of any Loan Party and its Subsidiaries to confirm in writing any telephonic notice permitted to be given hereunder, the Administrative Agent, the Swingline Lender (in the case of a Borrowing of Swingline Loans) or any Issuing Lender (in the case

 

166


of the issuance of a Letter of Credit), as the case may be, may prior to receipt of written confirmation act without liability upon the basis of such telephonic notice, believed by the Administrative Agent, the Swingline Lender or such Issuing Lender in good faith to be from a Responsible Officer of a Loan Party.

(c) Loan Documents may be transmitted and/or signed by facsimile or other electronic means (i.e., a “pdf” or “tif”). The effectiveness of any such documents and signatures shall, subject to applicable Law, have the same force and effect as manually signed originals and shall be binding on each Loan Party, each Agent and each Lender. The Administrative Agent may also require that any such documents and signatures be confirmed by a manually signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any facsimile or other electronic document or signature.

(d) Notices and other communications to the Lenders and any Issuing Lender hereunder may be delivered or furnished by electronic communication (including electronic mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent. Unless the Administrative Agent otherwise prescribes (with the Parent Borrower’s consent), (i) notices and other communications sent to an e-mail address shall be deemed to have been duly made or given when delivered, provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the posting thereof.

11.3 No Waiver; Cumulative Remedies . No failure to exercise and no delay in exercising, on the part of any Agent, any Lender or any Loan Party, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

11.4 Survival of Representations and Warranties . All representations and warranties made hereunder and in the other Loan Documents (or in any amendment, modification or supplement hereto or thereto) and in any certificate delivered pursuant hereto or such other Loan Documents shall survive the execution and delivery of this Agreement and the making of the Loans hereunder.

11.5 Payment of Expenses and Taxes . The Parent Borrower agrees (a) to pay or reimburse the Agents and the Other Representatives for (1) all their reasonable out-of-pocket costs and expenses incurred in connection with (i) the syndication of the Facilities and the development, preparation, execution and delivery of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith, (ii) the consummation and administration of the transactions (including the syndication of the Commitments) contemplated hereby and thereby and (iii) efforts to monitor the Loans and verify, protect, evaluate, assess, appraise, collect, sell, liquidate or otherwise dispose of any of the Collateral, and (2) the reasonable fees and disbursements of White & Case LLP and Cahill Gordon & Reindel LLP , and such other special or local counsel, consultants, advisors, appraisers and auditors whose retention (other than during the continuance of an Event of Default) is approved by the Parent Borrower, (b) to pay or reimburse each Lender, each Lead Arranger and the Agents for all their reasonable costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement, the other Loan Documents and any other documents prepared in connection herewith or therewith, including the fees and disbursements of counsel to the Agents and the Lenders, (c) to pay, indemnify, or reimburse each Lender, each Lead Arranger and the Agents for, and hold each Lender, each Lead Arranger and the Agents harmless from, any

 

167


and all recording and filing fees and any and all liabilities with respect to, or resulting from any delay in paying, any stamp, documentary, excise and other similar taxes, if any, which may be payable or determined to be payable in connection with the execution, delivery or enforcement of, or consummation or administration of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan Documents and any such other documents, and (d) to pay, indemnify or reimburse each Lender, each Lead Arranger, each Agent (and any sub-agent thereof), each Issuing Lender and each Related Party of any of the foregoing Persons (each, an “ Indemnitee ”) for, and hold each Indemnitee harmless from and against, any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents and any such other documents, including any of the foregoing relating to the use of proceeds of the Loans or Letters of Credit (including any refusal by an Issuing Lender to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of the Parent Borrower or any of its Restricted Subsidiaries or any of the property of the Parent Borrower or any of its Restricted Subsidiaries, of any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Parent Borrower or any other Loan Party and regardless of whether any Indemnitee is a party thereto (all the foregoing in this clause (d), collectively, the “ Indemnified Liabilities ”), provided that the Parent Borrower shall not have any obligation hereunder to the Administrative Agent, any Other Representative, any other Agent, any Issuing Lender or any Lender (or any Related Party of any of the foregoing Persons) with respect to Indemnified Liabilities arising from (i) the gross negligence, bad faith or willful misconduct of such Agent (and any sub-agent thereof), such Other Representative, such Issuing Lender or any such Lender (or any Related Party of such Agent, Other Representative, Issuing Lender or Lender), as the case may be, as determined by a court of competent jurisdiction in a final and non-appealable decision, (ii) a material breach of the Loan Documents by such Agent, Other Representative, Issuing Lender or Lender (or any Related Party of such Agent, Other Representative, Issuing Lender or Lender), as the case may be, as determined by a court of competent jurisdiction in a final and non-appealable decision, or (iii) claims against such Indemnitee or any Related Party brought by any other Indemnitee that do not involve any Lead Arranger, any Agent in its capacity as such and claims arising out of or in connection with or by reason of any act or omission of any Loan Party or any of its Affiliates. No Indemnitee shall be liable for any consequential or punitive damages in connection with the Facilities. All amounts due under this Subsection 11.5 shall be payable not later than thirty (30) days after written demand therefor. Statements reflecting amounts payable by the Loan Parties pursuant to this Subsection 11.5 shall be submitted to the address of the Parent Borrower set forth in Su b section 11.2 , or to such other Person or address as may be hereafter designated by the Parent Borrower in a notice to the Administrative Agent. Notwithstanding the foregoing, except as provided in Subsections 11.5(b) and (c) above, the Parent Borrower shall have no obligation under this Subsection 11.5 to any Indemnitee with respect to any tax, levy, impost, duty, charge, fee, deduction or withholding imposed, levied, collected, withheld or assessed by any Governmental Authority. The agreements in this Subse c tion 11.5 shall survive repayment of the Loans and all other amounts payable hereunder.

11.6 Successors and Assigns; Participations and Assignments .

(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any affiliate of the applicable Issuing Lender that issues any Letter of Credit), except that (i) other than in accordance with Subsection 8.2 , none of the Loan Parties may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by any Loan Party without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Subsection 11.6 .

 

168


(b) (i) Subject to the conditions set forth in Subsection 11.6(b)(ii) below, any Lender other than a Conduit Lender may, in the ordinary course of business and in accordance with applicable law, assign (other than to a Disqualified Lender, to any natural person or to the Parent Borrower or any of its Subsidiaries) to one or more assignees (each, an “ Assignee ”) all or a portion of its rights and obligations under this Agreement (including its Commitment and/or Loans, pursuant to an Assignment and Acceptance) with the prior written consent (such consent not to be unreasonably withheld, conditioned or delayed) of:

(A) the Parent Borrower, provided that no consent of the Parent Borrower shall be required for an assignment (x) to a Lender or (y) if an Event of Default under Subsection 9.1(a) or 9.1(f) has occurred and is continuing, to any other Person; and

(B) the Administrative Agent, each Issuing Lender and the Swingline Lender (each such consent not to be unreasonably withheld, conditioned or delayed).

(ii) Assignments shall be subject to the following additional conditions:

(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitments or Loans under any Facility, the amount of the Commitments or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless the Parent Borrower and the Administrative Agent otherwise consent, provided that (1) no such consent of the Parent Borrower shall be required if an Event of Default under Subsection 9.1(a) or 9.1(f) has occurred and is continuing and (2) such amounts shall be aggregated in respect of each Lender and its Affiliates, if any;

(B) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500 (unless waived by the Administrative Agent in any given case); provided that for concurrent assignments to two or more Lenders or Affiliates of a Lender, such assignment fee shall only be required to be paid once in respect of and at the time of such assignments; and

(C) the Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an administrative questionnaire.

(iii) Subject to acceptance and recording thereof pursuant to clause (b)(iv) below, from and after the effective date specified in each Assignment and Acceptance the Assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of (and bound by any related obligations under) Subsections 4.10 , 4.11 , 4.12 , 4.13 , 4.15 and 11.5 , and bound by its continuing obligations under Subsection 11.16 ). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Subsection 11.6 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with clause (c) of this Subsection 11.6 .

 

169


(iv) The Borrowers hereby collectively designate the Administrative Agent, and the Administrative Agent agrees, to serve as the Borrowers’ agent, solely for purposes of this Subsection 11.6 , to maintain at one of its offices in New York, New York a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and interest and principal amount of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “ Register ”). The entries in the Register shall be conclusive absent manifest error, and the Borrowers, the Administrative Agent, the Issuing Lender and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrowers, the Issuing Lender and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

(v) Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrowers, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “ Participant Register ”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and a Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

(vi) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender (unless such assignment is being made in accordance with Subsection 4.13(d) , Subsection 4.15(c) , or Subsection 11.1(g) , in which case the effectiveness of such Assignment and Acceptance shall not require execution by the assigning Lender) and an Assignee, the Assignee’s completed administrative questionnaire (unless the Assignee shall already be a Lender hereunder), the processing and recordation fee referred to in this Subsection 11.6(b) and any written consent to such assignment required by this Subsection 11.6(b) , the Administrative Agent shall accept such Assignment and Acceptance, record the information contained therein in the Register and give prompt notice of such assignment and recordation to the Parent Borrower. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this clause (vi).

(vii) On or prior to the effective date of any assignment pursuant to this Subsection 11.6(b) , the assigning Lender shall surrender any outstanding Notes held by it all or a portion of which are being assigned. Any Notes surrendered by the assigning Lender shall be returned by the Administrative Agent to the Parent Borrower marked “cancelled.”

Notwithstanding the foregoing provisions of this Subsection 11.6(b) or any other provision of this Agreement, if the Parent Borrower shall have consented thereto in writing in its sole discretion, the Administrative Agent shall have the right, but not the obligation, to effectuate assignments of Loans and Commitments via an electronic settlement system acceptable to Administrative Agent and the

 

170


Parent Borrower as designated in writing from time to time to the Lenders by Administrative Agent (the “ Settlement Service ”). At any time when the Administrative Agent elects, in its sole discretion, to implement such Settlement Service, each such assignment shall be effected by the assigning Lender and proposed Assignee pursuant to the procedures then in effect under the Settlement Service, which procedures shall be subject to the prior written approval of the Parent Borrower and shall be consistent with the other provisions of this Subsection 11.6(b). Each assigning Lender and proposed Assignee shall comply with the requirements of the Settlement Service in connection with effecting any assignment of Loans and Commitments pursuant to the Settlement Service. Assignments and assumptions of the Loans and Commitments shall be effected by the provisions otherwise set forth herein until the Administrative Agent notifies Lenders of the Settlement Service as set forth herein. The Parent Borrower may withdraw its consent to the use of the Settlement Service at any time upon notice to the Administrative Agent, and thereafter assignments and assumptions of the Loans and Commitments shall be effected by the provisions otherwise set forth herein.

Furthermore, no Assignee, which as of the date of any assignment to it pursuant to this Subsection 11.6(b) would be entitled to receive any greater payment under Subsection 4.10 , 4.11 or 11.5 than the assigning Lender would have been entitled to receive as of such date under such Subsections with respect to the rights assigned, shall, notwithstanding anything to the contrary in this Agreement, be entitled to receive such greater payments unless the assignment was made after an Event of Default under Subsection 9.1(a) or 9.1(f) has occurred and is continuing or the Parent Borrower has expressly consented in writing to waive the benefit of this provision at the time of such assignment.

(c) (i) Any Lender other than a Conduit Lender may, in the ordinary course of its business and in accordance with applicable law, without the consent of the Parent Borrower or the Administrative Agent, sell participations (other than to any Disqualified Lender, or a natural person or the Parent Borrower or any of the Parent Borrower’s Affiliates or its Subsidiaries) to one or more banks or other entities (a “ Participant ”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (C) such Lender shall remain the holder of any such Loan for all purposes under this Agreement and the other Loan Documents and (D) the Parent Borrower, the Administrative Agent, the Issuing Lender and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement; provided that such agreement may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver that (1) requires the consent of each Lender directly affected thereby pursuant to the second proviso to the second sentence of Subsection 11.1(a) and (2) directly affects such Participant. Subject to Subsection 11.6(c)(ii) , each Borrower agrees that each Participant shall be entitled to the benefits of (and shall have the related obligations under) Subsections 4.10 , 4.11 , 4.12 , 4.13 , 4.15 and 11.5 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Subsection 11.6(b) . To the extent permitted by law, each Participant also shall be entitled to the benefits of Subsection 11.7(b) as though it were a Lender, provided that such Participant shall be subject to Subsection 11.7(a) as though it were a Lender. Notwithstanding the foregoing, no Lender shall be permitted to sell participations under this Agreement to any Disqualified Lender.

(ii) No Loan Party shall be obligated to make any greater payment under Subsection 4.10 , 4.11 or 11.5 than it would have been obligated to make in the absence of any participation, unless the sale of such participation is made with the prior written consent of the Parent Borrower and the Parent Borrower expressly waives the benefit of this provision at the time of such participation. Any Participant that is not incorporated under the laws of the United States of America or a state thereof shall not be entitled to the benefits of Subsection 4.11 unless such Participant complies with Subsection 4.11(b) and provides the forms and certificates referenced therein to the Lender that granted such participation.

 

171


(d) Any Lender, without the consent of the Parent Borrower or the Administrative Agent, may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Subsection 11.6 shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute (by foreclosure or otherwise) any such pledgee or Assignee for such Lender as a party hereto.

(e) No assignment or participation made or purported to be made to any Assignee or Participant shall be effective without the prior written consent of the Parent Borrower if it would require the Parent Borrower to make any filing with any Governmental Authority or qualify any Loan or Note under the laws of any jurisdiction, and the Parent Borrower shall be entitled to request and receive such information and assurances as it may reasonably request from any Lender or any Assignee or Participant to determine whether any such filing or qualification is required or whether any assignment or participation is otherwise in accordance with applicable law.

(f) Notwithstanding the foregoing, any Conduit Lender may assign any or all of the Loans it may have funded hereunder to its designating Lender without the consent of the Parent Borrower or the Administrative Agent and without regard to the limitations set forth in Subsection 11.6(b) . Each Borrower, each Lender and the Administrative Agent hereby confirms that it will not institute against a Conduit Lender or join any other Person in instituting against a Conduit Lender any domestic or foreign bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any state, federal or provincial bankruptcy or similar law, for one year and one day after the payment in full of the latest maturing commercial paper note issued by such Conduit Lender; provided , however , that each Lender designating any Conduit Lender hereby agrees to indemnify, save and hold harmless each other party hereto for any loss, cost, damage or expense arising out of its inability to institute such a proceeding against such Conduit Lender during such period of forbearance. Each such indemnifying Lender shall pay in full any claim received from the Parent Borrower pursuant to this Subsection 11.6(f) within thirty (30) Business Days of receipt of a certificate from a Responsible Officer of the Parent Borrower specifying in reasonable detail the cause and amount of the loss, cost, damage or expense in respect of which the claim is being asserted, which certificate shall be conclusive absent manifest error. Without limiting the indemnification obligations of any indemnifying Lender pursuant to this Subsection 11.6(f) , in the event that the indemnifying Lender fails timely to compensate the Parent Borrower for such claim, any Loans held by the relevant Conduit Lender shall, if requested by the Parent Borrower, be assigned promptly to the Lender that administers the Conduit Lender and the designation of such Conduit Lender shall be void.

(g) If the Parent Borrower wishes to replace the Loans or Commitments under any Facility with ones having different terms, it shall have the option, with the consent of the Administrative Agent and subject to at least three Business Days’ (or such shorter period as agreed to by the Administrative Agent in its reasonable discretion) advance notice to the Lenders under such Facility, instead of prepaying the Loans or reducing or terminating the Commitments to be replaced, to (i) require the Lenders under such Facility to assign such Loans or Commitments to the Administrative Agent or its designees and (ii) amend the terms thereof in accordance with Subsection 11.1 . Pursuant to any such assignment, (x) all Loans to be replaced shall be purchased at par (allocated among the Lenders under such Facility in the same manner as would be required if such Loans were being optionally prepaid), accompanied by payment of any accrued interest and fees thereon and any amounts owing pursuant to Subsection 4.12 and (y) all Commitments to be replaced shall be allocated among the Lenders under such Facility in the same manner as would be required if such Commitments were being optionally reduced or terminated by the

 

172


Borrowers, accompanied by payment of any accrued fees thereon and any amounts owing pursuant to Subsection 4.12 . By receiving such purchase price (including accrued interest, fees and indemnity payments), the Lenders under such Facility shall automatically be deemed to have assigned the Loans or Commitments under such Facility pursuant to the terms of the form of the Assignment and Acceptance, and accordingly no other action by such Lenders shall be required in connection therewith. The provisions of this clause (g) are intended to facilitate the maintenance of the perfection and priority of existing security interests in the Collateral during any such replacement.

11.7 Adjustments; Set-off; Calculations; Computations .

(a) If any Lender (a “ Benefited Lender ”) shall at any time receive any payment of all or part of its Revolving Credit Loans or the Reimbursement Obligations owing to it, or interest thereon, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in Subsection 9.1(f) , or otherwise (except pursuant to Subsection 2.6 , 2.7 , 2.8 , 4.4 , 4.5(b) , 4.9 , 4.10 , 4.11 , 4.12 , 4.13(d) , 8.6(b) , 11.1(g) or 11.6 )), in a greater proportion than any such payment to or collateral received by any other Lender, if any, in respect of such other Lender’s Revolving Credit Loans or the Reimbursement Obligations, as the case may be, owing to it, or interest thereon, such Benefited Lender shall purchase for cash from the other Lenders an interest (by participation, assignment or otherwise) in such portion of each such other Lender’s Revolving Credit Loans or the Reimbursement Obligations, as the case may be, owing to it, or shall provide such other Lenders with the benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to share the excess payment or benefits of such collateral or proceeds ratably with each of the Lenders; provided , however , that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.

(b) In addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior notice to the Borrowers, any such notice being expressly waived by each Borrower to the extent permitted by applicable law, upon the occurrence of an Event of Default under Subsection 9.1(a) to set-off and appropriate and apply against any amount then due and payable under Subsection 9.1(a) by such Borrower any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of such Borrower. Each Lender agrees promptly to notify the Parent Borrower and the Administrative Agent after any such set-off and application made by such Lender, provided that the failure to give such notice shall not affect the validity of such set-off and application. Notwithstanding anything to the contrary in any Loan Document, any Secured Party and its Affiliates (and each Participant of any Lender or any of its Affiliates) that is a Government Accounts Receivable Bank shall not have the right and hereby expressly waives any rights it might otherwise have, to set-off or appropriate and apply any or all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held by or owing to such Secured Party or its Affiliates (and each Participant of any Lender or any of its Affiliates) or any branch or agency thereof in a Government Receivables Deposit Account (but no other deposit account or any subsequent deposit accounts to which the proceeds of Restricted Government Accounts may be transferred) to or for the credit or the account of any Borrower or any Guarantor, in each case to the extent necessary for the Loan Parties to remain in compliance with Medicare, Medicaid, TRICARE, CHAMPVA or any other similar or replacement laws, rules or regulations of a Governmental Authority as amended or re-enacted from time to time.

 

173


11.8 Judgment .

(a) If, for the purpose of obtaining or enforcing judgment against any Loan Party in any court in any jurisdiction, it becomes necessary to convert into any other currency (such other currency being hereinafter in this Subsection 11.8 referred to as the “ Judgment Currency ”) an amount due under any Loan Document in any currency (the “ Obligation Currency ”) other than the Judgment Currency, the conversion shall be made at the rate of exchange prevailing on the Business Day immediately preceding the date of actual payment of the amount due, in the case of any proceeding in the courts of any other jurisdiction that will give effect to such conversion being made on such date, or the date on which the judgment is given, in the case of any proceeding in the courts of any other jurisdiction (the applicable date as of which such conversion is made pursuant to this Subsection 11.8 being hereinafter in this Subsection 11.8 referred to as the “ Judgment Conversion Date ”).

(b) If, in the case of any proceeding in the court of any jurisdiction referred to in Subsection 11.8(a) , there is a change in the rate of exchange prevailing between the Judgment Conversion Date and the date of actual receipt for value of the amount due, the applicable Loan Party shall pay such additional amount (if any, but in any event not a lesser amount) as may be necessary to ensure that the amount actually received in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of the Judgment Currency stipulated in the judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date. Any amount due from any Loan Party under this Subsection 11.8(b) shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of any of the Loan Documents.

(c) The term “rate of exchange” in this Subsection 11.8 means the rate of exchange at which the Administrative Agent, on the relevant date at or about 12:00 noon (New York time), would be prepared to sell, in accordance with its normal course foreign currency exchange practices, the Obligation Currency against the Judgment Currency.

11.9 Counterparts . This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by facsimile and other electronic transmission), and all of such counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Agreement signed by all the parties shall be delivered to the Parent Borrower and the Administrative Agent.

11.10 Severability . Any provision of this Agreement which 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 any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

11.11 Integration . This Agreement and the other Loan Documents represent the entire agreement of each of the Loan Parties party hereto, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by any of the Loan Parties party hereto, the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

11.12 Governing Law . THIS AGREEMENT AND ANY NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT AND ANY NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR

 

174


RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

11.13 Submission to Jurisdiction; Waivers . Each party hereto hereby irrevocably and unconditionally:

(a) submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party to the exclusive general jurisdiction of the Supreme Court of the State of New York for the County of New York (the “ New York Supreme Court ”), and the United States District Court for the Southern District of New York (the “ Federal District Court ,” and together with the New York Supreme Court, the “ New York Courts ”) and appellate courts from either of them; provided that nothing in this Agreement shall be deemed or operate to preclude (i) any Agent from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations (in which case any party shall be entitled to assert any claim or defense, including any claim or defense that this Subsection 11.13 would otherwise require to be asserted in a legal action or proceeding in a New York Court), or to enforce a judgment or other court order in favor of the Administrative Agent or the Collateral Agent, (ii) any party from bringing any legal action or proceeding in any jurisdiction for the recognition and enforcement of any judgment, (iii) if all such New York Courts decline jurisdiction over any Person, or decline (or in the case of the Federal District Court, lack) jurisdiction over any subject matter of such action or proceeding, a legal action or proceeding may be brought with respect thereto in another court having jurisdiction and (iv) in the event a legal action or proceeding is brought against any party hereto or involving any of its assets or property in another court (without any collusive assistance by such party or any of its Subsidiaries or Affiliates), such party from asserting a claim or defense (including any claim or defense that this Subsection 11.13(a) would otherwise require to be asserted in a legal proceeding in a New York Court) in any such action or proceeding.

(b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient forum and agrees not to plead or claim the same;

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the applicable Borrower, the applicable Lender or the Administrative Agent, as the case may be, at the address specified in Subsection 11.2 or at such other address of which the Administrative Agent, any such Lender and any such Borrower shall have been notified pursuant thereto;

(d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or (subject to clause (a) above) shall limit the right to sue in any other jurisdiction; and

(e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Subsection 11.13 any consequential or punitive damages.

 

175


11.14 Acknowledgements . Each Borrower hereby acknowledges that:

(a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents;

(b) neither any Agent nor any Other Representative or Lender has any fiduciary relationship with or duty to any Borrower arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Administrative Agent and Lenders, on the one hand, and the Borrowers, on the other hand, in connection herewith or therewith is solely that of creditor and debtor; and

(c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby and thereby among the Lenders or among any of the Borrowers and the Lenders.

11.15 Waiver of Jury Trial . EACH OF THE BORROWERS, THE AGENTS AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY NOTES OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

11.16 Confidentiality .

(a) Each Agent and each Lender agrees to keep confidential any information (a) provided to it by or on behalf of any of the Borrowers or any of their respective Subsidiaries pursuant to or in connection with the Loan Documents or (b) obtained by such Lender based on a review of the books and records of any of the Borrowers or any of their respective Subsidiaries; provided that nothing herein shall prevent any Lender from disclosing any such information (i) to any Agent, any Other Representative or any other Lender, (ii) to any Transferee, or prospective Transferee or any creditor or any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to any Borrower and its obligations which agrees to comply with the provisions of this Subsection 11.16 pursuant to a written instrument (or electronically recorded agreement from any Person listed above in this clause (ii), in respect to any electronic information (whether posted or otherwise distributed on any Platform)) for the benefit of the Parent Borrower (it being understood that each relevant Lender shall be solely responsible for obtaining such instrument (or such electronically recorded agreement)), (iii) to its affiliates and the employees, officers, partners, directors, agents, attorneys, accountants and other professional advisors of it and its affiliates, provided that such Lender shall inform each such Person of the agreement under this Subsection 11.16 and take reasonable actions to cause compliance by any such Person referred to in this clause (iii) with this agreement (including, where appropriate, to cause any such Person to acknowledge its agreement to be bound by the agreement under this Subsection 11.16 ), (iv) upon the request or demand of any Governmental Authority having jurisdiction over such Lender or its affiliates or to the extent required in response to any order of any court or other Governmental Authority or as shall otherwise be required pursuant to any Requirement of Law, provided that, other than with respect to any disclosure to any bank regulatory authority, such Lender shall, unless prohibited by any Requirement of Law, notify the Parent Borrower of any disclosure pursuant to this clause (iv) as far in advance as is reasonably practicable under such circumstances, (v) which has been publicly disclosed other than in breach of this Agreement, (vi) in connection with the exercise of any remedy hereunder, under any Loan Document or under any Interest Rate Protection Agreement, (vii) in connection with periodic regulatory examinations and reviews conducted by the National Association of Insurance Commissioners or any Governmental Authority having jurisdiction over such Lender or its affiliates (to the extent applicable), (viii) in connection with any litigation to which such Lender (or, with respect to any Interest Rate Protection Agreement, any affiliate of any Lender party thereto) may be a party subject to the proviso in clause (iv) above, and

 

176


(ix) if, prior to such information having been so provided or obtained, such information was already in an Agent’s or a Lender’s possession on a non-confidential basis without a duty of confidentiality to any Borrower being violated. Notwithstanding any other provision of this Agreement, any other Loan Document or any Assignment and Acceptance, the provisions of this Subsection 11.16 shall survive with respect to each Agent and Lender until the second anniversary of such Agent or Lender ceasing to be an Agent or a Lender, respectively.

(b) Each Lender acknowledges that any such information referred to in Subsection 11.16(a) , and any information (including requests for waivers and amendments) furnished by the Borrowers or the Administrative Agent pursuant to or in connection with this Agreement and the other Loan Documents, may include material non-public information concerning the Borrowers, the other Loan Parties and their respective Affiliates or their respective securities. Each Lender represents and confirms that such Lender has developed compliance procedures regarding the use of material non-public information; that such Lender will handle such material non-public information in accordance with those procedures and applicable law, including United States federal and state securities laws; and that such Lender has identified to the Administrative Agent a credit contact who may receive information that may contain material non-public information in accordance with its compliance procedures and applicable law.

11.17 Incremental Indebtedness; Additional Indebtedness . In connection with the incurrence by any Loan Party or any Subsidiary thereof of any Incremental Indebtedness or Additional Indebtedness, each of the Administrative Agent and the Collateral Agent agree to execute and deliver the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement, or any Other Intercreditor Agreement or any Intercreditor Agreement Supplement and amendments, amendments and restatements, restatements or waivers of or supplements to or other modifications to, any Security Document, and to make or consent to any filings or take any other actions in connection therewith, as may be reasonably deemed by the Parent Borrower to be necessary or reasonably desirable for any Lien on the assets of any Loan Party permitted to secure such Incremental Facility or Additional Indebtedness to become a valid, perfected lien (with such priority as may be designated by the relevant Loan Party or Subsidiary, to the extent such priority is permitted by the Loan Documents) pursuant to the Security Document being so amended, amended and restated, restated, waived, supplemented or otherwise modified or otherwise. Additionally, each of the Administrative Agent and the Collateral Agent agree to execute and deliver any amendment to any Blocked Account Agreement as may be reasonably requested by the Parent Borrower to reflect the Term Loan Agent as a party thereto in place of its predecessor under such Blocked Account Agreement

11.18 USA PATRIOT Act Notice . Each Lender hereby notifies each Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “PATRIOT Act”), it is required to obtain, verify, and record information that identifies each Borrower, which information includes the name of each Borrower and other information that will allow such Lender to identify each Borrower in accordance with the PATRIOT Act, and each Borrower agrees to provide such information from time to time to any Lender.

11.19 Electronic Execution of Assignments and Certain Other Documents . The words “execution,” “signed,” “signature” and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

177


11.20 Reinstatement . This Agreement shall remain in full force and effect and continue to be effective should any petition or other proceeding be filed by or against any Loan Party for liquidation or reorganization, should any Loan Party become insolvent or make an assignment for the benefit of any creditor or creditors or should an interim receiver, receiver, receiver and manager or trustee be appointed for all or any significant part of any Loan Party’s assets, and shall continue to be effective or to be reinstated, as the case may be, if at any time payment and performance of the obligations of the Borrowers under the Loan Documents, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the obligations, whether as a fraudulent preference, reviewable transaction or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the obligations of the Borrowers hereunder shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

11.21 Joint and Several Liability; Postponement of Subrogation .

(a) The obligations of the Borrowers hereunder and under the other Loan Documents shall be joint and several and, as such, each Borrower shall be liable for all of such obligations of the other Borrowers under this Agreement and the other Loan Documents. To the fullest extent permitted by law the liability of each Borrower for the obligations under this Agreement and the other Loan Documents of the other applicable Borrowers with whom it has joint and several liability shall be absolute, unconditional and irrevocable, without regard to (i) the validity or enforceability of this Agreement or any other Loan Document, any of the obligations hereunder or thereunder or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by any applicable Secured Party, (ii) any defense, set-off or counterclaim (other than a defense of payment or performance hereunder; provided that no Borrower hereby waives any suit for breach of a contractual provision of any of the Loan Documents) which may at any time be available to or be asserted by such other applicable Borrower or any other Person against any Secured Party or (iii) any other circumstance whatsoever (with or without notice to or knowledge of such other applicable Borrower or such Borrower) which constitutes, or might be construed to constitute, an equitable or legal discharge of such other applicable Borrower for the obligations hereunder or under any other Loan Document, or of such Borrower under this Subsection 11.21 , in bankruptcy or in any other instance.

(b) Each Borrower agrees that it will not exercise any rights which it may acquire by way of rights of subrogation under this Agreement, by any payments made hereunder or otherwise, until the prior payment in full in cash of all of the obligations hereunder and under any other Loan Document, the termination or expiration of all Letters of Credit and the permanent termination of all Commitments. Any amount paid to any Borrower on account of any such subrogation rights prior to the payment in full in cash of all of the obligations hereunder and under any other Loan Document, the termination or expiration of all Letters of Credit and the permanent termination of all Commitments shall be held in trust for the benefit of the applicable Secured Parties and shall immediately be paid to the Administrative Agent for the benefit of the applicable Secured Parties and credited and applied against the obligations of the applicable Borrowers, whether matured or unmatured, in such order as the Administrative Agent shall elect. In furtherance of the foregoing, for so long as any obligations of the Borrowers hereunder, any Letters of Credit or any Commitments remain outstanding, each Borrower shall refrain from taking any action or commencing any proceeding against any other Borrower (or any of its successors or assigns, whether in connection with a bankruptcy proceeding or otherwise) to recover any amounts in respect of payments made in respect of the obligations hereunder or under any other Loan Document of such other Borrower to any Secured Party.

 

178


11.22 Designated Cash Management Agreements and Designated Hedging Agreements .

(a) The Borrower Representative may from time to time elect by notice in writing to the Security Agents that (x) a Cash Management Arrangement is to be a “Designated Cash Management Agreement” and that the monetary obligations thereunder be treated as pari passu with the Obligations with respect to the priority of payment of proceeds of the Collateral in accordance with the waterfall provisions set forth in Subsection 10.14 and may establish a Cash Management Reserve with respect to any such Designated Cash Management Agreement so long as, immediately after giving effect thereto, Availability would be not less than zero, or (y) an Interest Rate Protection Agreement, Hedging Agreement or other Permitted Hedging Arrangement is to be a “Designated Hedging Agreement” and that the monetary obligations thereunder be treated as pari passu with the Obligations with respect to the priority of payment of proceeds of the Collateral in accordance with the waterfall provisions set forth in Subsection 10.14 and may establish a Designated Hedging Reserve with respect to any such Designated Hedging Agreement so long as, immediately after giving effect thereto, Availability would be not less than zero, provided that no Designated Cash Management Agreement or Designated Hedging Agreement can be secured at the same time on a first lien basis by the Term Loan Priority Collateral (and any request under this Subsection 11.22 will be deemed to be a representation by the Parent Borrower to such effect), and provided , further , that no monetary obligations under any Designated Cash Management Agreement or Designated Hedging Agreement shall receive any benefit of the designation under this Subsection 11.22 after the Discharge of ABL Obligations. The Borrower Representative may from time to time (i) reduce or eliminate the amount of any Cash Management Reserve or Designated Hedging Reserve by delivering to the Security Agents a notice of such reduction or elimination or (ii) increase the amount of any Cash Management Reserved by notice in writing to the Security Agents so long as in the case of this clause (ii), immediately after giving effect to such increase, Availability would be not less than zero.

(b) Notwithstanding any such designation of a Cash Management Arrangement as a Designated Cash Management Agreement or an Interest Rate Protection Agreement, Hedging Agreement or other Permitted Hedging Arrangement as a Designated Hedging Agreement, no provider or holder of any such Designated Cash Management Agreement or Designated Hedging Agreement shall have any voting or approval rights hereunder (or be deemed a Lender) solely by virtue of its status as the provider under such agreements, nor shall their consent be required (other than in their capacities as a Lender to the extent applicable) for any matter hereunder or under any of the other Loan Documents, including, without limitation, as to any matter relating to the Collateral or the release of the Collateral or any Subsidiary Guarantors.

(c) The Administrative Agent accepts no responsibility and shall have no liability for the calculation of the exposure owing by the Loan Parties under any such Designated Cash Management Arrangement or Designated Hedging Agreement, and shall be entitled in all cases to rely on the applicable Cash Management Party, Hedging Party or the Parent Borrower, as the case may be, in each case party to such agreement for the calculation thereof.

11.23 Acknowledgement and Consent to Bail-In of EEA Financial Institutions . Notwithstanding anything to the contrary herein or in any other Loan Document, each party hereto acknowledges that any liability of any party hereto that is an EEA Financial Institution arising hereunder or under any other Loan Document, to the extent such liability is unsecured (all such liabilities, other than any Excluded Liability, the “ Covered Liabilities ”), may be subject to Write-down and Conversion Powers and agrees and consents to, and acknowledges and agrees to be bound by:

(i) the application of Write-Down and Conversion Powers to any Covered Liability arising hereunder or under any other Loan Document which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

179


(ii) the effects of any Bail-in Action on any such Covered Liability, including, if applicable:

(A) a reduction in full or in part or cancellation of any such Covered Liability;

(B) a conversion of all, or a portion of, such Covered Liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such Covered Liability under this Agreement or any other Loan Document; or

(C) the variation of the terms of such Covered Liability in connection with the exercise of Write-Down and Conversion Powers.

Notwithstanding anything to the contrary herein, nothing contained in this Subsection 11.23 shall modify or otherwise alter the rights or obligations under this Agreement or any other Loan Document with respect to any liability that is not a Covered Liability.

[SIGNATURE PAGES INTENTIONALLY OMITTED]

 

180


SCHEDULE A

Commitments and Addresses

 

Lender

   Commitment  

JPMorgan Chase Bank, N.A.

3424 Peachtree Road, NE, 23 rd Floor

Atlanta, GA 30326

   $ 122,750,000   

Barclays Bank PLC

745 7th Avenue

New York, NY 10019

   $ 122,750,000   

Bank of America, N.A.

150 N. College St., NC1-028-17-16

Charlotte, NC 28255

   $ 100,000,000   

SunTrust Bank

303 Peachtree Street, N.E.

Atlanta, GA 30308

   $ 100,000,000   

Wells Fargo Bank, N.A.

2450 Colorado Avenue, Suite 3000 West

Santa Monica, CA 90404

   $ 100,000,000   

Deutsche Bank AG New York Branch

60 Wall Street

New York, NY 10005

   $ 50,000,000   

NYCB Specialty Finance Company, LLC

16 Chestnut Street

Foxboro, NY 02035

   $ 50,000,000   

BMO Harris Bank, N.A.

115 S. LaSalle St.

Chicago, IL 60603

   $ 40,000,000   

Royal Bank of Canada

200 Vesey Street

New York, NY 10281

   $ 40,000,000   

KeyBank National Association

127 Public Square

Cleveland, OH 44114-1306

   $ 37,500,000   

City National Bank, A National Banking Association

400 Park Avenue – 7 th Floor

New York, NY 10022

   $ 35,000,000   

 

1


SCHEDULE A

 

Healthcare Financial Solutions, LLC

77 W. Wacker Drive

Chicago, IL 60601

   $ 25,000,000   

Pinnacle Bank

150 3rd Avenue South

Nashville, TN 37201

   $ 15,000,000   

Whitney Bank

2510 14th Street

Gulfport, MS 39501

   $ 10,000,000   

CapStar Bank

PO Box 305065

Nashville, TN 37230-5065

   $ 2,000,000   
  

 

 

 

Total:

   $ 850,000,000   
  

 

 

 

 

2


SCHEDULE 1.1(a)

Assumed Indebtedness

 

1. Credit Agreements

None.

 

2. Bonds

 

(a) Indenture, dated as of December 1, 2016, among the New Amethyst Corp. (to be renamed Envision Healthcare Corporation), a Delaware corporation (the “ Issuer ”), the Subsidiary Guarantors (as defined therein) from time to time parties thereto and Wilmington Trust, National Association, as trustee (the “ Trustee ”), as supplemented by the First Supplemental Indenture, dated as of December 1, 2016 and the Second Supplemental Indenture, dated as of December 1, 2016.

 

(b) Indenture, dated as of July 16, 2014, among AmSurg Escrow Corp., the guarantors party thereto and U.S. Bank National Association, as trustee, as supplemented by the First Supplemental Indenture, dated as of July 16, 2014, the Second Supplemental Indenture, dated as of August 17, 2016, the Third Supplemental Indenture, dated as of December 1, 2016 and the Fourth Supplemental Indenture, dated as of December 1, 2016.

 

(c) Indenture, dated as of June 18, 2014, among Envision Healthcare Corporation, a Delaware corporation (the “ Issuer ”), the Subsidiary Guarantors (as defined therein) from time to time parties thereto and Wilmington Trust, National Association, as trustee (the “ Trustee ”), as supplemented by the First Supplemental Indenture, dated as of June 18, 2014, the Second Supplemental Indenture, dated as of September 10, 2014, the Third Supplemental Indenture, dated as of May 4, 2015, the Fourth Supplemental Indenture, dated as of November 23, 2015, the Fifth Supplemental Indenture, dated as of January 25, 2015, the Sixth Supplemental Indenture, dated as of November 30, 2015, the Seventh Supplemental Indenture, dated as of December 1, 2016, the Eighth Supplemental Indenture, dated as of December 1, 2016 and the Ninth Supplemental Indenture, dated as of December 1, 2016.

 

3. Swaps

 

(a) ISDA Master Agreement and Schedule between Barclays Bank PLC and Emergency Medical Services Corporation, dated as of July 18, 2012.

 

4. Guarantees

Guarantee, dated 2012, by the Guarantors under the Credit Agreement of all obligations and liabilities of EMS under the EMS ISDA Master Agreement.

 

3


SCHEDULE 1.1(a)

 

5. Financing Leases

 

(a) Building Lease, with Sahuarita Rancho XX LLC.

 

(b) Equipment Lease, with Pima County, Arizona.

 

(c) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 39966).

 

(d) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 45583).

 

(e) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 48135).

 

(f) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 48275).

 

(g) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 48956).

 

(h) Equipment Lease, with Advantage Funding Commercial Capital (regarding Shop 60410).

 

(i) Equipment Lease, with Pitney Bowes (regarding Asset #68363).

 

(j) Equipment Lease, with Pitney Bowes (regarding Asset #68364)

 

(k) Master Lease, with Enterprise FM Trust (regarding Motor Vehicles).

 

ID

  

Common Name

 

Legal Name

  General
Partner
Guarantee
%
   

Vendor

  Balance per
Ledger @
09/30/16
   

Collateral Amount

2217   

Phoenix/NorthValley

 

North Valley Orthopedic Surgery Center, LLC

    55      Konica   $ 431.84      Individual Equipment
2266   

Norwich

 

Eastern Connecticut Endoscopy Center, LLC

    40      De Lage Landen     1,260.91      Individual Equipment
2130   

St George GI

 

St George Endoscopy Center, LLC

    51      De Lage Landen     1,495.58      Individual Equipment
2267   

Milburn NJ Multi

 

Short Hills Surgery Center, LLC

    55      De Lage Landen     1,696.89      Individual Equipment
2268   

Fort Lee NJ Multi

 

Hudson Crossing Surgery Center, LLC

    55      Stryker     3,143.18      Individual Equipment
2058   

Louisville GI

 

Louisville Endoscopy Center, PLLC

    51      Konica     3,155.17      Individual Equipment

 

4


SCHEDULE 1.1(a)

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
    

Vendor

   Balance per
Ledger @
09/30/16
    

Collateral Amount

2267   

Milburn NJ Multi

  

Short Hills Surgery Center, LLC

     55       ProHealth Carl Zeiss      3,592.66       Individual Equipment
2268   

Fort Lee NJ Multi

  

Hudson Crossing Surgery Center, LLC

     55       TCF-PDS      4,245.14       Individual Equipment
2307   

Pascagoula MS Multi

  

Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC

     51       Hancock Lease: Copier      5,000.78       Individual Equipment
2268   

Fort Lee NJ Multi

  

Hudson Crossing Surgery Center, LLC

     55       TCF-Medtronic      5,948.20       Individual Equipment
2267   

Milburn NJ Multi

  

Short Hills Surgery Center, LLC

     55       ProHealth Carl Zeiss      6,802.24       Individual Equipment
2301   

Tualatin OR Multi

  

South Portland Surgical Center, LLC

     55       Stryker      7,513.19       Individual Equipment
2132   

Temecula

  

Temecula CA Endoscopy ASC, L.P.

     51       De Lage Landen      8,256.00       Individual Equipment
2306   

Ocean Springs MS Multi

  

Ocean Springs Surgical &amp; Endoscopy Center, LLC

     51       Hancock Leasing      8,328.05       Individual Equipment
2194   

Baltimore-Greene Tree MD GI

  

Pikesville MD Endoscopy ASC, LLC

     51       Olympus      8,962.50       Individual Equipment
2267   

Milburn NJ Multi

  

Short Hills Surgery Center, LLC

     55       ProHealth      10,017.83       Individual Equipment
2138   

Gainesville

  

The Gainesville FL Orthopaedic ASC, LLC

     51       GE Healthcare      10,070.70       Individual Equipment
2195   

Glen Burnie MD GI

  

Glen Burnie MD Endoscopy ASC, LLC

     51       Olympus      12,864.92       Individual Equipment
2268   

Fort Lee NJ Multi

  

Hudson Crossing Surgery Center, LLC

     55       ProHealth      15,192.66       Individual Equipment
2236   

Bend Urology

  

Doctors Park Surgery Center, LLC

     51       Boston Scientific      15,837.42       Individual Equipment
2116   

Tulsa Eye

  

The Tulsa OK Ophthalmology ASC, LLC

     51       Alcon      15,922.44       Individual Equipment
2138   

Gainesville

  

The Gainesville FL Orthopaedic ASC, LLC

     51       Cisco      16,958.29       Individual Equipment
2194   

Baltimore-Greene Tree MD GI

  

Pikesville MD Endoscopy ASC, LLC

     51       Olympus      17,416.00       Individual Equipment
2285   

Allentown PA GI

  

College Heights Endoscopy Center, LLC

     51       Olympus      20,188.51       Individual Equipment
2185   

Mesquite GI

  

Mesquite TX Endoscopy ASC, LLC

     51       Mesquite GI Medivators      20,796.53       Individual Equipment
2232   

Pioneer Valley Multi

  

Pioneer Valley Surgicenter, LLC

     65       Karl Storz lease      21,466.72       Individual Equipment
2194   

Baltimore-Greene Tree MD GI

  

Pikesville MD Endoscopy ASC, LLC

     51       Olympus      24,415.71       Individual Equipment
2167   

Torrance

  

The Torrance CA Multi-Specialty ASC LLC

     51       Stryker      25,131.28       Individual Equipment

 

5


SCHEDULE 1.1(a)

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
    

Vendor

   Balance per
Ledger @
09/30/16
    

Collateral Amount

2265   

Harvey LA Multi

  

WB Surgery Center, LLC

     57       DeLage/ Linvatec      27,720.16       Individual Equipment
2226   

Port ST Lucie FL Eye

  

Hillmoor Eye Surgery Center, LLC

     55       Alcon      30,053.17       Individual Equipment
2281   

Boca Raton FL Multi

  

South Palm Ambulatory Surgery Center, LLC

     49       Americorp      38,263.53       Individual Equipment
2069   

Burbank Eye

  

The Burbank Ophthalmology ASC, L.P.

     51       Alcon      44,183.29       Individual Equipment
2238   

Coral Springs Multi

  

Coral Springs Ambulatory Surgery Center, LLC

     64.51       Byline Financial      45,864.93       Individual Equipment
2303   

Morehead City

  

Center of Morehead City, LLC

     60       GE Healthcare      46,724.82       Individual Equipment
2095   

Dover Multi

  

The Dover Ophthalmology ASC, LLC

     51       Alcon      49,989.56       Individual Equipment
2300   

Forty Fort PA Multi

  

Surgical Specialty Center of Northeastern Pennsylvania, LLC

     51       Alcon      53,985.13       Individual Equipment
2303   

Morehead City

  

Center of Morehead City, LLC

     60       Stryker      54,744.39       Individual Equipment
2167   

Torrance

  

The Torrance CA Multi-Specialty ASC LLC

     51       Alcon      59,418.94       Individual Equipment
2055   

Boca Raton

  

The Boca Raton Ophthalmology ASC, LLC

     51       Alcon      72,734.83       Individual Equipment
2238   

Coral Springs Multi

  

Coral Springs Ambulatory Surgery Center, LLC

     64.51       Baytree lease      79,041.42       Individual Equipment
2307   

Pascagoula MS Multi

  

Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC

     51       Hancock Lease      79,441.21       Individual Equipment
2294   

Millburn East Willow NJ Multi

  

Surgical Center at Millburn, LLC

     55       Stryker      98,350.55       Individual Equipment
2306   

Ocean Springs MS Multi

  

Ocean Springs Surgical &amp; Endoscopy Center, LLC

     51       Alcon Labs      103,272.65       Individual Equipment
2268   

Fort Lee NJ Multi

  

Hudson Crossing Surgery Center, LLC

     55       Arthrex      105,042.69       Individual Equipment
2151   

Puyallup GI - 003

  

Western Washington Endoscopy Centers, LLC

     51       Olympus      108,169.51       Individual Equipment
2080   

Clemson Multi

  

The Blue Ridge/Clemson Orthopaedic ASC, LLC

     51       Alcon      109,339.59       Individual Equipment
2268   

Fort Lee NJ Multi

  

Hudson Crossing Surgery Center, LLC

     55       Olympus      111,536.87       Individual Equipment
2276   

Charleston Eye

  

Physicians’ Eye Surgery Center, LLC

     56       First Citizens      111,647.80       Individual Equipment
2121   

Lewes GI

  

The Lewes DE Endoscopy ASC, LLC

     51       Olympus      116,185.93       Individual Equipment
2280   

Bend Multi

  

Bend Surgery Center, LLC

     51       Mindray      116,516.87       Individual Equipment

 

6


SCHEDULE 1.1(a)

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
    

Vendor

   Balance per
Ledger @
09/30/16
    

Collateral Amount

2133   

Lakeland

  

The Lakeland FL Endoscopy ASC, LLC

     51       Olympus      125,138.31       Individual Equipment
2151   

Gig Harbor GI - 004

  

Western Washington Endoscopy Centers, LLC

     51       Olympus      130,387.06       Individual Equipment
2151   

Tacoma GI - 002

  

Western Washington Endoscopy Centers, LLC

     51       Olympus      158,960.30       Individual Equipment
2306   

Ocean Springs MS Multi

  

Ocean Springs Surgical &amp; Endoscopy Center, LLC

     51       Hancock Leasing      160,538.97       Individual Equipment
2291   

Elmwood Park NJ Eye

  

River Drive Surgery Center, LLC

     59       Abbott      167,286.46       Individual Equipment
2257   

Newark Mid Atlantic DE GI

  

Mid-Atlantic Endoscopy Center, LLC

     51       Olympus      170,054.31       Individual Equipment
2306   

Ocean Springs MS Multi

  

Ocean Springs Surgical &amp; Endoscopy Center, LLC

     51       Hancock Leasing      177,291.17       Individual Equipment
2291   

Elmwood Park NJ Eye

  

River Drive Surgery Center, LLC

     59       Alcon      179,378.57       Individual Equipment
2307   

Pascagoula MS Multi

  

Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC

     51       Hancock Leasing      179,433.31       Individual Equipment
2183   

Kissimme GI

  

The Kissimmee FL Endoscopy ASC, LLC

     51       Olympus      182,295.19       Individual Equipment
N/A   

Sheridan

  

Sheridan

     N/A       Toshiba Software      50,024.49       Individual Equipment
2151   

Waldron GI - 001

  

Western Washington Endoscopy Centers, LLC

     51       Olympus      273,775.11       Individual Equipment
2246   

Torrance Crenshaw CA Multi

  

Torrance Surgery Center, LP

     62.49       Alcon      173,884.07       Individual Equipment
2003   

Ocala GI

  

The Endoscopy Center of St. Thomas, L.P.

     60       K2 Capital Group      253,798.27       Individual Equipment

 

ID

  

Common Name

  

Legal Name

   General
Partner
Guarantee
%
    

Vendor

   Balance per Ledger
@ 09/30/16
 
2306   

Ocean Springs MS Multi

  

Ocean Springs Surgical &amp; Endoscopy Center, LLC

     51       Building Capital Lease 8.16-7.31      5,085,017.91   
2228   

Phoenix AZ GI

  

Arizona Endoscopy Center, LLC

     55       Building Lease      1,289,389.96   
2282   

Bradenton FL Multi

  

Manatee Surgical Center, LLC

     49.9       Building Lease      4,249,202.85   
2294   

Millburn East Willow NJ Multi

  

Surgical Center at Millburn, LLC

     55       Building Lease      3,049,364.83   
2217   

Phoenix/NorthValley

  

North Valley Orthopedic Surgery Center, LLC

     55       Building Lease (2217NOR01)      5,679,302.77   
2307   

Pascagoula MS Multi

  

Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC

     51       Building Lease: 8/16-7/2031      6,589,752.38   

 

7


SCHEDULE 1.1(a)

 

6. Earn-out obligations under the following agreements:

 

(a) Agreement and Plan of Merger, dated as of August 6, 2015, by and among Northwest Tucson Emergency Physicians, P.C., Arizona EM-I Medical Services, P.C., Bear Down Merger, P.C., and Jim Hassen, MD.

 

(b) Asset Purchase Agreement dated November 1, 2014, among Southeast Perinatal Associates, Inc., Sheridan Healthcorp, Inc., Laurie Scott, M.D. and Scott MFM, LLC.

 

7. Letters of Credit

 

(a) Letter of Credit issued by Western Alliance Bank in favor of PPG MOB Fund 1A, LLC, in the amount of $912,216.06.

 

(b) Schedule 1.1(d) is incorporated herein by reference.

 

8. Other Indebtedness

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2197  

Orlando Mills FL

 

Orlando Mills FL Endoscopy ASC, LLC

    100      BBVA   Y   $ 16,484.36      Individual Equipment
2152  

Central FL GI - 001

 

The Orlando FL Endoscopy ASC LLC

    100      BBVA   Y     17,684.47      Individual Equipment
2152  

Citrus GI - 002

 

The Orlando FL Endoscopy ASC LLC

    100      BBVA   Y     17,684.47      Individual Equipment
2223  

Waltham

 

Boston Out-Patient Surgical Suites, LLC

    100      BBVA   Y     20,234.01      Individual Equipment
2250  

Weston

 

Weston Outpatient Surgical Center, LTD

    100      BBVA   Y     23,749.54      Individual Equipment
2291  

Elmwood Park NJ Eye

 

River Drive Surgery Center, LLC

    100      BBVA   Y     25,506.00      Individual Equipment
2122  

Rodgers Eye

 

The Rogers AR Ophthalmology ASC, LLC

    100      BBVA   Y     26,006.25      Individual Equipment
2250  

Weston

 

Weston Outpatient Surgical Center, LTD

    100      BBVA   Y     27,034.48      Individual Equipment
2236  

Bend OR Urology

 

Doctors Park Surgery Center, LLC

    100      BBVA   Y     28,007.80      Individual Equipment
2200  

Pomona CA Multi

 

Casa Colina Surgery Center, LLC

    100      BBVA   Y     31,433.34      Individual Equipment

 

8


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2167  

Torrance Multi

 

The Torrance CA Multi-Specialty ASC LLC

    100      BBVA   Y     36,595.71      Individual Equipment
2229  

ColumbusOH Eye

 

COA ASC of Franklin County, LLC

    100      BBVA   Y     38,468.33      Individual Equipment
2132  

Temecula

 

Temecula CA Endoscopy ASC, L.P.

    100      BBVA   Y     44,605.24      Individual Equipment
2229  

ColumbusOH Eye

 

COA ASC of Franklin County, LLC

    100      BBVA   Y     48,794.95      Individual Equipment
2229  

ColumbusOH Eye

 

COA ASC of Franklin County, LLC

    100      BBVA   Y     49,173.84      Individual Equipment
2205  

Silver Spring MD Eye

 

Eye Surgery Center, LLC

    100      BBVA   Y     51,712.61      Individual Equipment
2070  

Waldorf GI

 

The Waldorf Endoscopy ASC, LLC

    100      BBVA   Y     54,582.61      Individual Equipment
2223  

Waltham

 

Boston Out-Patient Surgical Suites, LLC

    100      BBVA   Y     63,105.87      Individual Equipment
2275  

Mountainside NJ Multi

 

Center for Ambulatory Surgery, LLC

    100      BBVA   Y     66,714.61      Individual Equipment
2223  

Waltham

 

Boston Out-Patient Surgical Suites, LLC

    100      BBVA   Y     70,956.34      Individual Equipment
2122  

Rodgers Eye

 

The Rogers AR Ophthalmology ASC, LLC

    100      BBVA   Y     88,682.26      Individual Equipment
2242  

Long Beach CA Multi

 

Long Beach Surgery Center, LP

    100      BBVA   Y     125,219.06      Individual Equipment
2186  

Conroe GI

 

The Conroe TX Endoscopy ASC, LLC

    100      BBVA   Y     130,725.96      Individual Equipment
2291  

Elmwood Park NJ Eye

 

River Drive Surgery Center, LLC

    100      BBVA   Y     615,723.13      Individual Equipment
2005  

Beaumont GI

 

The Endoscopy Center of Southeast Texas, L.P.

    100      BBVA   Y     27,255.77      Individual Equipment
2066  

Crestview Hills GI

 

AmSurg Northern Kentucky GI, LLC

    100      BBVA   Y     70,826.17      Individual Equipment
2113  

Paducah Eye

 

The Paducah Ophthalmology ASC, LLC

    100      BBVA   Y     47,185.99      Individual Equipment
2207  

Bryan TX GI

 

Central Texas Endoscopy Center, LLC

    100      BBVA   Y     231,378.50      Individual Equipment
2232  

Pioneer Valley MA Multi

 

Pioneer Valley Surgicenter, LLC

    100      BBVA   Y     30,798.06      Individual Equipment
2267  

Milburn NJ Multi

 

Short Hills Surgery Center, LLC

    100     

BBVA

  Y     243,753.26      Individual Equipment
2267  

Milburn NJ Multi

 

Short Hills Surgery Center, LLC

    100     

BBVA

  Y     48,883.71      Individual Equipment
2267  

Milburn NJ Multi

 

Short Hills Surgery Center, LLC

    100     

BBVA

  Y     75,989.61      Individual Equipment

 

9


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2093  

Columbia Multi

 

The Surgery Center of Middle Tennessee, LLC

    100      BBVA   Y     74,436.80      Individual Equipment
2093  

Columbia Multi

 

The Surgery Center of Middle Tennessee, LLC

    100      BBVA   Y     40,731.00      Individual Equipment
2093  

Columbia Multi

 

The Surgery Center of Middle Tennessee, LLC

    100      BBVA   Y     61,917.15      Individual Equipment
2093  

Columbia Multi

 

The Surgery Center of Middle Tennessee, LLC

    100      BBVA   Y     79,303.40      Individual Equipment
2062  

Indianapolis GI

 

Northside Gastroenterology Endoscopy Center, LLC

    100      BBVA   Y     931,152.31      Individual Equipment
2026  

Springfield GI

 

The Hillmont ASC, L.P.

    100      BBVA   Y     35,746.40      Individual Equipment
2196  

St Clair Shores MI Eye

 

St. Clair Shores MI Ophthalmology ASC, LLC

    100      Fifth Third   Y     23,500.00      Individual Equipment
2279  

Rancho Pueblo CA GI

 

Temecula CA United Surgery Center, L.P.

    100      Fifth Third   Y     23,552.93      Individual Equipment
2167  

Torrance Multi

 

The Torrance CA Multi-Specialty ASC LLC

    100      Fifth Third   Y     43,750.76      Individual Equipment
2271  

Colton CA Multispecialty

 

Colton CA Multi ASC, LP

    100      Fifth Third   Y     46,990.85      Individual Equipment
2279  

Rancho Pueblo CA GI

 

Temecula CA United Surgery Center, L.P.

    100      Fifth Third   Y     51,678.72      Individual Equipment
2068  

La Jolla GI

 

The La Jolla Endoscopy Center, L.P.

    100      Fifth Third   Y     54,400.04      Individual Equipment
2100  

Bloomfield Eye

 

Bloomfield Eye Surgery Center, LLC

    100      Fifth Third   Y     66,181.87      Individual Equipment
2093  

Columbia Multi

 

The Surgery Center of Middle Tennessee, LLC

    100      Fifth Third   Y     72,741.89      Individual Equipment
2202  

Akron

 

Digestive Health Center, LLC

    100      Fifth Third   Y     77,416.23      Individual Equipment
2203  

Redding

 

Gastroenterology Associates Endoscopy Center, LLC

    100      Fifth Third   Y     77,494.37      Individual Equipment
2242  

Long Beach CA Multi

 

Long Beach Surgery Center, LP

    100      Fifth Third   Y     105,663.90      Individual Equipment
2275  

Mountainside NJ Multi

 

Center for Ambulatory Surgery, LLC

    100      Fifth Third   Y     122,342.68      Individual Equipment
2231  

MDSine MA Multi

 

MDSine, LLC

    100      Fifth Third   Y     132,343.23      Individual Equipment
2081  

Las Vegas East

 

The Las Vegas East Ophthalmology ASC, LLC

    100      Fifth Third   Y     143,839.50      Individual Equipment
2279  

Rancho Pueblo CA GI

 

Temecula CA United Surgery Center, L.P.

    100      Fifth Third   Y     164,896.62      Individual Equipment
2191  

San Diego Ortho

 

San Diego CA Multi Specialty ASC, LLC

    100      Fifth Third   Y     165,840.00      Individual Equipment
2269  

Allentown PA Multi

 

Surgery Center of Allentown, LLC

    100      Fifth Third   Y     277,358.20      Individual Equipment
2172  

Main Line (002)

 

The Main Line PA Endoscopy ASC, LP

    100      Fifth Third   Y     84,304.21      Individual Equipment

 

10


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2172  

Main Line (001)

 

The Main Line PA Endoscopy ASC, LP

    100      Fifth Third   Y     27,613.80      Individual Equipment
2278  

Wichita KS Eye

 

Eye Surgery Center of Wichita, LLC

    100      Whitney Hancock   Y     21,534.88      Individual Equipment
2202  

Akron

 

Digestive Health Center, LLC

    100      Whitney Hancock   Y     25,064.97      Individual Equipment
2275  

Mountainside NJ Multi

 

Center for Ambulatory Surgery, LLC

    100      Whitney Hancock   Y     25,785.53      Individual Equipment
2283  

Rutherford NJ Multi

 

Meadows Surgery Center, LLC

    100      Whitney Hancock   Y     27,062.16      Individual Equipment
2191  

San Diego Ortho

 

San Diego CA Multi Specialty ASC, LLC

    100      Whitney Hancock   Y     37,935.26      Individual Equipment
2129  

Tampa GI

 

The Tampa FL Endoscopy ASC, LLC

    100      Whitney Hancock   Y     48,578.56      Individual Equipment
2136  

Reno GI

 

The Northern NV Endoscopy ASC, LLC

    100      Whitney Hancock   Y     88,879.75      Individual Equipment
2041  

Cincinnati GI

 

The Cincinnati ASC, LLC

    100      Whitney Hancock   Y     184,747.56      Individual Equipment
2280  

Bend Surgery Center

 

Bend Surgery Center, LLC

    100      Whitney Hancock   Y     374,485.03      Individual Equipment
2063  

Chattanooga GI

 

The Chattanooga Endoscopy ASC, LLC

    100      Whitney Hancock   Y     643,990.34      Individual Equipment
2107  

Alexandria

 

The Alexandria Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     46,067.19      Individual Equipment
2120  

Kingsport

 

The Kingsport TN Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     197,174.90      Individual Equipment
2288  

Texarkana TX

 

Surgery Center of Northeast Texas, LLC

    100      Whitney Hancock   Y     3,969.85      Individual Equipment
2001  

Knoxville West GI - 002

 

The Endoscopy Center of Knoxville, L.P.

    100      Whitney Hancock   Y     397,950.26      Individual Equipment
2006  

Santa Fe

 

The Endoscopy Center of Santa Fe, L.P.

    100      Whitney Hancock   Y     17,257.10      Individual Equipment
2009  

Washington D.C.

 

The Endoscopy Center of Washington, D.C., L.P.

    100      Whitney Hancock   Y     86,295.32      Individual Equipment
2013  

Abilene ASC, L.P.

 

The Abilene ASC, L.P.

    100      Whitney Hancock   Y     73,124.41      Individual Equipment
2015  

Shawnee GI

 

The Westglen Endoscopy Center, LLC

    100      Whitney Hancock   Y     11,452.91      Individual Equipment
2015  

Shawnee GI

 

The Westglen Endoscopy Center, LLC

    100      Whitney Hancock   Y     14,109.35      Individual Equipment
2015  

Shawnee GI

 

The Westglen Endoscopy Center, LLC

    100      Whitney Hancock   Y     66,268.62      Individual Equipment
2018  

Knoxville Eye

 

The Knoxville Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     17,440.51      Individual Equipment
2018  

Knoxville Eye

 

The Knoxville Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     22,033.78      Individual Equipment

 

11


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2024  

Melbourne GI

 

The Melbourne ASC, L.P.

    100      Whitney Hancock   Y     126,240.93      Individual Equipment
2028  

Panama City GI

 

The Northwest Florida ASC, L.P.

    100      Whitney Hancock   Y     36,877.85      Individual Equipment
2035  

Wichita

 

The Wichita Orthopaedic ASC, LLC

    100      Whitney Hancock   Y     10,361.20      Individual Equipment
2035  

Wichita

 

The Wichita Orthopaedic ASC, LLC

    100      Whitney Hancock   Y     29,558.44      Individual Equipment
2035  

Wichita

 

The Wichita Orthopaedic ASC, LLC

    100      Whitney Hancock   Y     23,633.35      Individual Equipment
2035  

Wichita

 

The Wichita Orthopaedic ASC, LLC

    100      Whitney Hancock   Y     20,386.44      Individual Equipment
2038  

Chevy Chase

 

The Chevy Chase ASC, LLC

    100      Whitney Hancock   Y     215,492.77      Individual Equipment
2043  

Crystal River GI

 

The Crystal River Endoscopy ASC, L.P.

    100      Whitney Hancock   Y     143,677.83      Individual Equipment
2046  

Independence GI -001

 

The Independence ASC, LLC

    100      Whitney Hancock   Y     206,741.90      Individual Equipment
2047  

Phoenix Eye

 

The Phoenix Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     25,170.68      Individual Equipment
2047  

Phoenix Eye

 

The Phoenix Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     24,864.60      Individual Equipment
2051  

Sun City Eye

 

The Sun City Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     15,462.98      Individual Equipment
2051  

Sun City Eye

 

The Sun City Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     98,380.36      Individual Equipment
2051  

Sun City Eye

 

The Sun City Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     212,744.13      Individual Equipment
2051  

Sun City Eye

 

The Sun City Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     13,809.47      Individual Equipment
2062  

Indianapolis GI

 

Northside Gastroenterology Endoscopy Center, LLC

    100      Whitney Hancock   Y     13,394.12      Individual Equipment
2064  

Mt Dora Eye

 

The Mount Dora Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     23,674.76      Individual Equipment
2064  

Mt Dora Eye

 

The Mount Dora Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     14,160.86      Individual Equipment
2068  

La Jolla GI

 

The La Jolla Endoscopy Center, L.P.

    100      Whitney Hancock   Y     22,115.54      Individual Equipment
2072  

Sarasota GI

 

The Sarasota Endoscopy ASC, LLC

    100      Whitney Hancock   Y     12,322.14      Individual Equipment
2081  

Las Vegas East

 

The Las Vegas East Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     101,387.99      Individual Equipment
2082  

Hutchinson Multi

 

The Hutchinson Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     9,809.35      Individual Equipment
2084  

Metairie Eye

 

The Metairie Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     20,794.34      Individual Equipment

 

12


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2089  

Inverness GI

 

The Suncoast Endoscopy ASC, L.P.

    100      Whitney Hancock   Y     11,075.19      Individual Equipment
2093  

Columbia Multi

 

The Surgery Center of Middle Tennessee, LLC

    100      Whitney Hancock   Y     11,460.30      Individual Equipment
2093  

Columbia Multi

 

The Surgery Center of Middle Tennessee, LLC

    100      Whitney Hancock   Y     13,105.88      Individual Equipment
2094  

Bel Air

 

The Bel Air Endoscopy ASC, LLC

    100      Whitney Hancock   Y     42,310.07      Individual Equipment
2105  

Newark

 

The Newark Endoscopy ASC, LLC

    100      Whitney Hancock   Y     25,058.42      Individual Equipment
2107  

Alexandria

 

The Alexandria Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     13,481.88      Individual Equipment
2110  

Troy GI

 

The Southfield Endoscopy ASC, LLC

    100      Whitney Hancock   Y     115,846.91      Individual Equipment
2113  

Paducah Eye

 

The Paducah Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     133,336.12      Individual Equipment
2132  

Temecula

 

Temecula CA Endoscopy ASC, L.P.

    100      Whitney Hancock   Y     11,947.85      Individual Equipment
2135  

Rockledge GI

 

The Rockledge FL Endoscopy ASC, LLC

    100      Whitney Hancock   Y     8,046.64      Individual Equipment
2135  

Rockledge GI

 

The Rockledge FL Endoscopy ASC, LLC

    100      Whitney Hancock   Y     39,383.42      Individual Equipment
2136  

Reno GI

 

The Northern NV Endoscopy ASC, LLC

    100      Whitney Hancock   Y     124,200.04      Individual Equipment
2138  

Gainesville

 

The Gainesville FL Orthopaedic ASC, LLC

    100      Whitney Hancock   Y     13,653.03      Individual Equipment
2138  

Gainesville

 

The Gainesville FL Orthopaedic ASC, LLC

    100      Whitney Hancock   Y     67,034.64      Individual Equipment
2140  

Raleigh GI

 

The Raleigh NC Endoscopy ASC, LLC

    100      Whitney Hancock   Y     28,847.14      Individual Equipment
2142  

Port Huron

 

Blue Water ASC LLC

    100      Whitney Hancock   Y     43,931.24      Individual Equipment
2146  

Rockville GI

 

The Rockville MD Endoscopy ASC, LLC

    100      Whitney Hancock   Y     100,144.32      Individual Equipment
2146  

Rockville GI

 

The Rockville MD Endoscopy ASC, LLC

    100      Whitney Hancock   Y     17,123.61      Individual Equipment
2147  

Overland Park GI

 

The Overland Park KS Endoscopy ASC, LLC

    100      Whitney Hancock   Y     142,433.07      Individual Equipment
2155  

Towson-West Road GI

 

Maryland Endoscopy Center LLC

    100      Whitney Hancock   Y     45,743.49      Individual Equipment
2159  

Salem Eye

 

The Salem OR Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     56,784.56      Individual Equipment
2159  

Salem Eye

 

The Salem OR Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     11,762.55      Individual Equipment
2163  

Laurel

 

The Laurel MD Endoscopy ASC, LLC

    100      Whitney Hancock   Y     514,145.92      Individual Equipment

 

13


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2164  

El Dorado

 

The El Dorado AR Multispecialty ASC, LLC

    100      Whitney Hancock   Y     9,210.85      Individual Equipment
2164  

El Dorado

 

The El Dorado AR Multispecialty ASC, LLC

    100      Whitney Hancock   Y     66,968.20      Individual Equipment
2167  

Torrance Multi

 

The Torrance CA Multi-Specialty ASC LLC

    100      Whitney Hancock   Y     31,370.82      Individual Equipment
2167  

Torrance Multi

 

The Torrance CA Multi-Specialty ASC LLC

    100      Whitney Hancock   Y     17,691.71      Individual Equipment
2169  

Arcadia

 

The Arcadia CA Endoscopy ASC, LP

    100      Whitney Hancock   Y     275,580.40      Individual Equipment
2172  

Main Line (003)

 

The Main Line PA Endoscopy ASC, LP

    100      Whitney Hancock   Y     49,695.66      Individual Equipment
2172  

Main Line (002)

 

The Main Line PA Endoscopy ASC, LP

    100      Whitney Hancock   Y     50,486.05      Individual Equipment
2172  

Main Line (001)

 

The Main Line PA Endoscopy ASC, LP

    100      Whitney Hancock   Y     72,958.11      Individual Equipment
2178  

New Orleans GI - 001

 

The New Orleans LA Uptown West Bank Endoscopy ASC, LLC

    100      Whitney Hancock   Y     26,743.56      Individual Equipment
2178  

New Orleans GI - 002

 

The New Orleans LA Uptown West Bank Endoscopy ASC, LLC

    100      Whitney Hancock   Y     22,848.21      Individual Equipment
2179  

Metairie GI

 

The Metairie LA Endoscopy ASC, LLC

    100      Whitney Hancock   Y     227,650.36      Individual Equipment
2186  

Conroe GI

 

The Conroe TX Endoscopy ASC, LLC

    100      Whitney Hancock   Y     71,950.63      Individual Equipment
2196  

St Clair Shores MI Eye

 

St. Clair Shores MI Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     35,609.38      Individual Equipment
2205  

Silver Spring MD Eye

 

Eye Surgery Center, LLC

    100      Whitney Hancock   Y     31,040.94      Individual Equipment
2207  

Bryan TX GI

 

Central Texas Endoscopy Center, LLC

    100      Whitney Hancock   Y     149,696.05      Individual Equipment
2211  

Dayton - 004

 

Digestive Endoscopy Center, LLC

    100      Whitney Hancock   Y     120,483.79      Individual Equipment
2219  

Dallas-Redbird Sq. TX GI

 

Redbird Square Endoscopy Center, LLC

    100      Whitney Hancock   Y     424,018.02      Individual Equipment
2224  

Boynton Beach

 

Bethesda Outpatient Surgery Center, LLC

    100      Whitney Hancock   Y     27,784.29      Individual Equipment
2226  

Port St Lucie FL Eye

 

Hillmoor Eye Surgery Center, LLC

    100      Whitney Hancock   Y     309,323.48      Individual Equipment
2227  

Port Orange Multi

 

Surgery Center of Volusia, LLC

    100      Whitney Hancock   Y     198,853.31      Individual Equipment
2228  

Phoenix McDowell AZ

 

Arizona Endoscopy Center, LLC

    100      Whitney Hancock   Y     17,249.17      Individual Equipment
2229  

ColumbusOH Eye

 

COA ASC of Franklin County, LLC

    100      Whitney Hancock   Y     86,267.31      Individual Equipment

 

14


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2235  

Meridian ID Eye

 

Eagle Eye Surgery and Laser Center, LLC

    100      Whitney Hancock   Y     37,284.39      Individual Equipment
2242  

Long Beach CA Multi

 

Long Beach Surgery Center, LP

    100      Whitney Hancock   Y     14,090.13      Individual Equipment
2244  

San Antonio

 

San Antonio ASC, LP

    100      Whitney Hancock   Y     16,513.62      Individual Equipment
2244  

San Antonio

 

San Antonio ASC, LP

    100      Whitney Hancock   Y     96,259.86      Individual Equipment
2244  

San Antonio

 

San Antonio ASC, LP

    100      Whitney Hancock   Y     13,415.68      Individual Equipment
2244  

San Antonio

 

San Antonio ASC, LP

    100      Whitney Hancock   Y     43,069.09      Individual Equipment
2248  

Twin Falls Multi

 

Southern Idaho Ambulatory Surgery Center, LLC

    100      Whitney Hancock   Y     95,816.82      Individual Equipment
2250  

Weston

 

Weston Outpatient Surgical Center, LTD

    100      Whitney Hancock   Y     82,948.62      Individual Equipment
2261  

Wellesley Hills MA GI

 

Boston Endoscopy Center, LLC

    100      Whitney Hancock   Y     23,891.60      Individual Equipment
2263  

Shreveport LA Multi

 

Red River Surgery Center, LLC

    100      Whitney Hancock   Y     36,322.66      Individual Equipment
2265  

Harvey LA Multi

 

WB Surgery Center, LLC

    100      Whitney Hancock   Y     11,726.89      Individual Equipment
2265  

Harvey LA Multi

 

WB Surgery Center, LLC

    100      Whitney Hancock   Y     68,085.04      Individual Equipment
2275  

Mountainside NJ Multi

 

Center for Ambulatory Surgery, LLC

    100      Whitney Hancock   Y     16,912.97      Individual Equipment
2275  

Mountainside NJ Multi

 

Center for Ambulatory Surgery, LLC

    100      Whitney Hancock   Y     48,187.72      Individual Equipment
2276  

Charleston Eye

 

Physicians’ Eye Surgery Center, LLC

    100      Whitney Hancock   Y     47,315.42      Individual Equipment
2276  

Charleston Eye

 

Physicians’ Eye Surgery Center, LLC

    100      Whitney Hancock   Y     20,216.36      Individual Equipment
2276  

Charleston Eye

 

Physicians’ Eye Surgery Center, LLC

    100      Whitney Hancock   Y     26,784.19      Individual Equipment
2276  

Charleston Eye

 

Physicians’ Eye Surgery Center, LLC

    100      Whitney Hancock   Y     32,624.38      Individual Equipment
2253  

Norwood Multi

 

Eastern Massachusetts Surgery Center, LLC

    100      Whitney Hancock   Y     18,872.46      Individual Equipment
2048  

Toledo GI

 

The Toledo Endoscopy ASC, LLC

    100      Whitney Hancock   Y     21,751.77      Individual Equipment
2022  

Evansville Eye

 

EyeCare Consultants Surgery Center, LLC

    100      Whitney Hancock   Y     43,157.34      Individual Equipment
2135  

Rockledge GI

 

The Rockledge FL Endoscopy ASC, LLC

    100      Whitney Hancock   Y     65,978.61      Individual Equipment
2047  

Phoenix Eye

 

The Phoenix Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     82,231.38      Individual Equipment

 

15


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2288  

Texarkana TX

 

Surgery Center of Northeast Texas, LLC

    100      Whitney Hancock   Y     91,198.74      Individual Equipment
2149  

San Luis Obispo GI - 001

 

The San Luis Obispo CA Endoscopy ASC, LP

    100      Whitney Hancock   Y     99,764.70      Individual Equipment
2120  

Kingsport

 

The Kingsport TN Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     104,199.00      Individual Equipment
2095  

Dover Multi

 

The Dover Ophthalmology ASC, LLC

    100      Whitney Hancock   Y     194,947.88      Individual Equipment
2045  

Fayetteville GI

 

The Fayetteville ASC, LLC

    100      Whitney Hancock   Y     417,127.84      Individual Equipment
2215  

Cannon City CO Multi

 

Canon City CO Multispecialty ASC, LLC

    51      Whitney Hancock   Y     24,252.72      Individual Equipment
2114  

Columbia TN GI

 

The Columbia TN Endoscopy ASC, LLC

    51      Community 1st Bank & Trust       328,054.31      Individual Equipment
2248  

Twin Falls Multi

 

Southern Idaho Ambulatory Surgery Center, LLC

    54.78      DL Evans Bank       43,178.94      Individual Equipment
2161  

St. Cloud

 

The St. Cloud MN Ophthalmology ASC, LLC

    51      Everbank Commercial Finance       13,996.70      Individual Equipment
2276  

Charleston Eye

 

Physicians’ Eye Surgery Center, LLC

    56      First Citizens       747,937.90      All Assets
2093  

Columbia Multi

 

The Surgery Center of Middle Tennessee, LLC

    51      First Farmers & Merchants Bank       1,267,400.36      All Assets
2268  

Fort Lee NJ Multi

 

Hudson Crossing Surgery Center, LLC

    55      GE Loan       43,193.26      Individual Equipment
2035  

Wichita

 

The Wichita Orthopaedic ASC, LLC

    51      InTrust Bank       67,385.51      All Assets
2211  

Dayton - 002

 

Digestive Endoscopy Center, LLC

    51      JP Morgan Chase       844,880.10      All Assets
2301  

Tualatin OR Multi

 

South Portland Surgical Center, LLC

    55      Key Bank       604,276.07      All Assets
2301  

Tualatin OR Multi

 

South Portland Surgical Center, LLC

    55      Key Bank       879,333.13      All Assets
2301  

Tualatin OR Multi

 

South Portland Surgical Center, LLC

    55      Key Bank       45,694.38      All Assets
2268  

Fort Lee NJ Multi

 

Hudson Crossing Surgery Center, LLC

    55      ProHealth       4,270.90      Individual Equipment
2268  

Fort Lee NJ Multi

 

Hudson Crossing Surgery Center, LLC

    55      ProHealth       29,392.94      Individual Equipment
2018  

Knoxville Eye

 

The Knoxville Ophthalmology ASC, LLC

    51      Suntrust       46,300.38      Individual Equipment
2268  

Fort Lee NJ Multi

 

Hudson Crossing Surgery Center, LLC

    55      GE Loan       1,918.07      Individual Equipment
2221  

Plano

 

Park Ventura Endoscopy Center, LLC

    57      Tenant Allowance Debt 4th       105,907.12      No Security Interest

 

16


SCHEDULE 1.1(a)

 

ID

 

Common Name

 

Legal Name

  General Partner
Guarantee %
   

Vendor

  AmSurg Master
Guarantor
  Balance per Ledger @
09/30/16
   

Collateral Amount

2086  

Kingston

 

The Kingston Ophthalmology ASC, LLC

    51      Wells Fargo       186,724.35      Individual Equipment
           

 

 

   
 

Total

            20,401,552.33     
           

 

 

   

 

17


SCHEDULE 1.1(b)

Disposition of Certain Assets

Real Property:

None.

Other Assets:

None.

 

18


SCHEDULE 1.1(c)

Existing Financing Leases

Item 5 on Schedule 1.1(a) is incorporated herein by reference.

 

19


SCHEDULE 1.1(d)

Existing Letters of Credit

 

Beneficiary

   Date Issued    Date Renewed    Expiration Date    Current Amount ($)  

City of Arlington

   02/10/05    02/01/11    02/01/17      1,750,000.00   

Kaiser Foundation Health Plan

   03/10/05    02/01/11    02/01/17      268,528.57   

City of Akron

   03/10/05    02/01/11    02/01/17      500,000.00   

County of Sonoma

   03/10/05    02/01/11    02/01/17      1,500,000.00   

City of Spokane Fire Department

   03/10/05    02/01/11    02/01/17      2,000,000.00   

City of Seattle

   03/10/05    02/01/11    02/01/17      2,000,000.00   

Multnomah County Emergency

   09/23/05    09/01/10    09/01/17      2,750,000.00   

County of Clackamas, Oregon

   05/05/06    02/01/11    02/01/17      1,500,000.00   

Vista Insurance Plan, Inc.

   08/30/07    08/21/10    08/21/17      68,000.00   

El Paso County Emergency Services Agency

   12/24/08    12/24/10    12/24/16      3,000,000.00   

Laramie County EMS Joint Powers Board

   05/15/09    02/01/11    02/01/17      400,000.00   

City of Amarillo

   01/15/10    01/05/11    01/15/17      625,000.00   

Ambulance Service Boards, Representing Specified Municipalities in Spokane County

   06/24/10    n/a    06/17/17      2,000,000.00   

Sentry Insurance

   10/04/11       09/28/17      1,350,000.00   

County of Monterey

   10/06/11    n/a    07/15/17      1,500,000.00   

Pacific Employers Insurance Co

   02/17/12    n/a    02/17/17      60,590,588.00   

FSP Galleria North Limited

   03/15/12    n/a    12/31/16      440,000.00   

Continental Casualty Company

   05/29/12    n/a    05/24/17      17,979,208.00   

CapitalSource Bank

   12/05/12    n/a    12/05/16      804,140.00   

Aetna Health Management, LLC

   02/28/13    n/a    02/26/17      250,000.00   

Emergency Medical Services Authority

   10/15/13    n/a    10/01/17      5,000,000.00   

Texas Dept of State Health Services – Milam County

   01/09/14    n/a    12/31/16      75,000.00   

Texas Dept of State Health Services – Farmers Branch

   01/09/14    n/a    12/31/16      50,000.00   

Texas Dept of State Health Services – Amarillo

   01/28/14    n/a    01/31/17      75,000.00   

Texas Dept of State Health Services – AASI

   06/04/14    n/a    06/12/17      25,000.00   

Texas Dept of Health Services – Collin County

   12/09/14    n/a    11/30/16      50,000.00   

Continental Casualty Company

   01/16/15    n/a    12/31/16      3,939,984.00   

Nero Equipment CO, Inc.

   06/17/15    n/a    12/01/16      120,000.00   

Reliance Insurance Company

   11/16/15    n/a    11/16/17      569,049.00   

County of Santa Clara

   11/16/15    n/a    11/16/17      5,000,000.00   

Ohio Bureau of Workers Comp

   11/16/15    n/a    11/16/17      330,000.00   

ACE American Insurance Company

   01/11/16    n/a    01/11/17      17,415,648.00   
           

 

 

 
   Subtotal            133,925,145.57   
           

 

 

 

 

20


SCHEDULE 1.1(e)

Fiscal Periods

Monthly Fiscal Periods end on the last day of the applicable calendar month.

 

21


SCHEDULE 1.1(f)

Existing Investments

1. Ownership interests in the following limited liability companies or limited partnerships, as the case may be:

 

Legal Owner

  

Issuer

   Direct Percentage
Ownership
    Indirect Percentage
Ownership of Borrower,
if applicable
 

Evolution Health LLC

  

Vivify Health, Inc.

     14.29% Series B-1 Shares        N/A   

Evolution Health LLC

  

Vivify Health, Inc.

     14.29% Series B-2 Shares        N/A   

EMSC

  

Ziqitza Healthcare Limited

     0.3     N/A   

Evolution Health LLC

  

Ascension Health at Home, LLC

     50     N/A   

EmCare, Inc.

  

UHS-Evolution Homecare, LLC

     50     N/A   

EmCare, Inc.

  

HCA-EmCare Holdings, LLC

     50     N/A   

EmCare, Inc.

  

Integrated Health Ventures LLC

     50     N/A   

San Antonio NSC, LLC

  

SSPC Building, LP

     1     N/A   

Austin NSC, LP

  

Austin Endoscopy Center I, LP

     20     N/A   

Austin NSC, LP

  

Austin Endoscopy Center II, LP

     20     N/A   

AmSurg Holdings, Inc.

  

The Chattanooga Endoscopy ASC, LLC

     35     N/A   

The Chattanooga Endoscopy ASC, LLC

  

AmSurg Chattanooga Anesthesia, LLC

     35     35

AmSurg Holdings, Inc.

  

Banner Arizona ASC, LLC

     49     N/A   

AmSurg Holdings, Inc.

  

Baycare Surgery Centers, LLC

     49     N/A   

Baycare Surgery Centers, LLC

  

Trinity Surgery Center, LLC

     56     28.46

Baycare Surgery Centers, LLC

  

Bardmoor Surgery Center, LLC

     64     31.36

AmSurg Holdings, Inc.

  

Jersey ASC Ventures, LLC

     49     N/A   

Jersey ASC Ventures, LLC

  

The Florham Park Endoscopy ASC, LLC

     51     24.99

Jersey ASC Ventures, LLC

  

The Hanover NJ Endoscopy ASC, L.L.C.

     51     24.99

Jersey ASC Ventures, LLC

  

Livingston ASC, LLC

     100     49

Jersey ASC Ventures, LLC

  

May Street Surgi Center, L.L.C.

     51     24.99

Jersey ASC Ventures, LLC

  

West Orange NJ Endoscopy ASC, LLC

     51     24.99

Jersey ASC Ventures, LLC

  

West Orange ASC, LLC

     100     49

AmSurg Holdings, Inc.

  

AmSurg Baptist Network Alliance, LLC

     49     N/A   

AmSurg Baptist Network Alliance, LLC

  

Baptist Surgery and Endoscopy Centers, L.L.C.

    
 
52.7342% interest in a
division of the Series LLC
  
  
    25.84

AmSurg Holdings, Inc.

  

CHIC/AMSURG Surgery Centers, LLC

     49     N/A   

CHIC/AMSURG Surgery Centers, LLC

  

Canon City CO Multi-Speciality ASC, LLC

     51     24.99

 

22


SCHEDULE 1.1(a)

 

Legal Owner

  

Issuer

   Direct Percentage
Ownership
    Indirect Percentage
Ownership of Borrower,
if applicable
 

Torrance NSC, LLC

  

Torrance Memorial Surgical Center, LLC I

     49     49

Torrance Memorial Surgical Center, LLC I

  

Torrance Surgery Center, LP

     51     36.16

AmSurg Holdings, Inc.

  

Voorhees Endoscopy Holding Co., LLC

     49     N/A   

Voorhees Endoscopy Holding Co., LLC

  

The Voorhees NJ Endoscopy ASC, LLC

     51     24.99

AmSurg Holdings, Inc.

  

Central California Healthcare Holdings, LLC

     26.89745     N/A   

Central California Healthcare Holdings, LLC

  

Sierra Pacific Surgery Center, LLC

     99.99     26.89

AmSurg Holdings, Inc.

  

Sierra Pacific Surgery Center, LLC

     0.01     N/A   

Central California Healthcare Holdings, LLC

 

AmSurg Fresno CA, Inc.

  

Fresno CA Multi ASC, L.P.

    

 

 

47.24

 

52.76

 

    26.89745

Central California Healthcare Holdings, LLC

  

AmSurg Fresno CA, Inc.

     100     26.89745

Central California Healthcare Holdings, LLC

 

FSC Hospital, LLC

  

Fresno Surgery Center, L.P.

    

 

 

24.887788

 

75.102212

 

    26.89745

Central California Healthcare Holdings, LLC

  

FSC Hospital, LLC

     100     26.89745

AmSurg Holdings, Inc.

  

MASC Partners, L.L.C.

     20.69     N/A   

MASC Partners, L.L.C.

  

Manchester Ambulatory Surgery Center, LP

     100     20.69

AmSurg Holdings, Inc.

  

Duke Triangle Endoscopy Center, LLC

     49     N/A   

Sheridan InvestCo, LLC

  

HCA-Sheridan Holdings, LLC

     51     N/A   

HCA-Sheridan Holdings, LLC

  

Anesthesia Physician Solutions of North Florida, LLC

     100     51

HCA-Sheridan Holdings, LLC

  

Anesthesia Physician Solutions of South Florida, LLC

     100     51

HCA-Sheridan Holdings, LLC

  

Anesthesia Physician Solutions of West Florida, LLC

     100     51

HCA-Sheridan Holdings, LLC

  

Emergency Physician Solutions of South Florida, LLC

     100     51

HCA-Sheridan Holdings, LLC

  

Emergency Physician Solutions of North Florida, LLC

     100     51

HCA-Sheridan Holdings, LLC

  

Emergency Physician Solutions of South Florida Peds, LLC

     100     51

HCA-Sheridan Holdings, LLC

  

Neonatology Physician Solutions of South Florida, LLC

     100     51

HCA-Sheridan Holdings, LLC

  

Radiology Physician Solutions of Florida, LLC

     100     51

HCA-Sheridan Holdings, LLC

  

Radiology Physician Solutions of North Florida, LLC

     100     51

 

23


SCHEDULE 1.1(a)

 

Legal Owner

  

Issuer

   Direct Percentage
Ownership
    Indirect Percentage
Ownership of Borrower,
if applicable
 

HCA-Sheridan Holdings, LLC

  

Radiology Physician Solutions of West Florida, LLC

     100     51

Jupiter Healthcare, LLC

  

Jupiter Medical Specialists, LLC

     60     N/A   

Jupiter Medical Specialists, LLC

  

General Surgery of Jupiter Medical Specialists, LLC

     100     60

Jupiter Medical Specialists, LLC

  

Nephrology Services of Jupiter Medical Specialists, LLC

     100     60

Jupiter Medical Specialists, LLC

  

Primary Care Services of Jupiter Medical Specialists, LLC

     100     60

Jupiter Medical Specialists, LLC

  

Radiology Services of Jupiter Medical Specialists, LLC (f/k/a Radiology Oncology Services of Jupiter Medical Specialists, LLC)

     100     60

Jupiter Medical Specialists, LLC

  

Women’s Health and Wellness of Jupiter Medical Specialists, LLC

     100     60

Valley Anesthesia Consultants, Inc.

  

RBG – Risk Retention Interest

     <5     N/A   

Chandler Emergency Medical Group, L.L.C.

  

Applied Medico-Legal Solutions Risk Retention Group, Inc.

     <1     N/A   

Sheridan CADR Solutions, Inc.

  

Anesthesia Business Group, LLC

     20     N/A   

Global Surgical Partners of Sarasota, L.L.C.

  

Sarasota Physicians Surgical Center, LLC

     10     10

Medical Information Management Solutions, LLC

  

VPC North Scottsdale, LLC

     24     N/A   

Medi-Bill of North Florida, Inc.

  

Surgicare of Orange Park, Ltd.

     1     N/A   

 

24


SCHEDULE 4.16(b)

Blocked Accounts

 

Legal Entity Name

 

Depository

Account Name/

Business Entity

Name

 

Depository

Name and

Address

 

Account

Code

 

Account Number

 

Wire ABA

 

Account Type

EmCare, Inc.   Deutsche Bank AG New York Branch   Wells Fargo, National Association   WB285736   2000045285736   121000248   Depository
EmCare, Inc.   Deutsche Bank AG New York Branch   Wells Fargo, National Association   WB261633   2000049261633   121000248   Depository
EmCare, Inc.   Deutsche Bank AG New York Branch   Wells Fargo, National Association   WB038587   2000454038587   121000248   Depository
EMS Management, LLC   Deutsche Bank AG New York Branch   Wells Fargo, National Association   WB714767   2000019714767   121000248   Concentration
Mission Care Services, LLC   Deutsche Bank AG New York Branch   PNC Bank, National Association   PNC7715   4612917715   071921891   Depository
American Medical Response, Inc.   Deutsche Bank AG New York Branch   PNC Bank, National Association   PNC4141   4643684141   071921891   Depository
Pinnacle Consultants Mid-Atlantic, L.L.C.   Deutsche Bank AG New York Branch   Bank of Texas   BOT6678   8092196678   111014325   Depository
EmCare Holdings, Inc.   Deutsche Bank AG New York Branch   Old National Bank   ONB1440   109831440   086300012   Depository
EmCare Holdings, Inc.   Deutsche Bank AG New York Branch   Bank of America, N.A.   BOA0279   3756580279   026009593   Depository
American Medical Response, Inc.   Deutsche Bank AG New York Branch   Bank of America, N.A.   BOA1074   3756581074   026009593   Depository
EMS Management LLC   Deutsche Bank AG New York Branch   Bank of America, N.A.   BOA3412   3756583412   026009593   Depository

 

25


SCHEDULE 5.2

Material Adverse Effect Disclosure

None.

 

26


SCHEDULE 5.3

Good Standing Disclosure

None.

 

27


SCHEDULE 5.4

Consents Required

 

1. Under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “ HSR Act ”), the 2016 Mergers may not be completed until the Company and Holdings each file a notification and report form under the HSR Act with the Federal Trade Commission (the “ FTC ”), and the Antitrust Division of the Department of Justice (the “ DOJ ”), and the applicable waiting period has expired or been terminated. The notification and report forms under the HSR Act were filed with the FTC and DOJ on June 29, 2016 and the HSR waiting period expired on September 1, 2016.

 

2. The Federal Communications Commission must consent to the transfer of control of AMR Holdco, Inc. and various of its Subsidiaries that hold Federal Communications Commission licenses under Title III of the Communications Act of 1934, as amended, 47 U.S.C. Sec. 301, authorizing it to use radio spectrum.

 

3. The Mergers may require consents from, or notice to, Governmental Entities with which Subsidiaries of Holdings do business or in connection with certificates of need or licenses (or exemptions therefrom) issued or granted to such Subsidiaries by Governmental Entities.

 

4. That certain Reaffirmation and Ratification of Continuing Guarantees by and between Fifth Third Bank and AmSurg Corp. dated as of November 14, 2016, consenting to revisions to seventeen (17) Master Loan and Security Agreements.

 

5. That certain Letter Agreement for AmSurg Corp. Mergers with New Amethyst Corp. and Envision Healthcare Holdings, Inc. by and between Whitney Bank and AmSurg Corp. dated as of September 27, 2016.

 

6. That certain Letter Agreement for AmSurg Corp. Mergers with New Amethyst Corp. and Envision Healthcare Holdings, Inc. by and between BBVA Compass Financial Corporation and AmSurg Corp. dated as of November 14, 2016.

 

28


SCHEDULE 5.6

Litigation

Following the announcement of the 2016 Mergers, a purported stockholder of the Envision Healthcare Holdings, Inc. (the “Company”) filed a putative stockholder class action lawsuit against the members of the Company’s board of directors (the “Board”) and Barclays PLC in the Court of Chancery of the state of Delaware on July 15, 2016. The case is captioned Anderson v. Sanger et al. , C.A.No. 12561-CB (Del. Ch.). On September 22, 2016, the plaintiff filed an amended complaint, which alleges that the members of the Company’s Board violated their fiduciary duties in connection with the 2016 Mergers and that Barclays PLC aided and abetted those breaches. Among other remedies, the plaintiff seeks to enjoin the 2016 Mergers from proceeding or, alternatively, damages in the event the 2016 Mergers are consummated. The time for defendants to respond to the motion or to move or answer with respect to the complaint has not yet expired.

On August 31, 2016, a purported Company stockholder filed a putative stockholder class action against the Company, the members of the Board, AmSurg and New Amethyst Corp. in the United States District Court for the District of Colorado, captioned Voth v. Envision Healthcare Holdings, Inc. et al. , No. 1:16-cv-02213 (D. Colo.). On September 8, 2016, another purported Company stockholder filed a similar putative stockholder class action against the Company, the members of the Board, AmSurg and New Amethyst Corp. in the United States District Court for the District of Colorado, captioned LeMay v. Envision Healthcare Holdings, Inc. et al. , No. 1:16-cv-02265 (D. Colo.). The complaint in each lawsuit (the “Related Actions”) alleges that the Company and the members of the Board violated Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder by disseminating a false and misleading registration statement in connection with the 2016 Mergers and that the members of Envision Healthcare’s Board, AmSurg and New Amethyst violated Section 20(a) of the Exchange Act by virtue of their purported status as controlling persons of the Company. Among other remedies, the plaintiffs seek to enjoin the 2016 Mergers from proceeding or, alternatively, rescission of the 2016 Mergers or damages in the event the 2016 Mergers are consummated. On September 30, 2016, the plaintiff in the Voth action filed a motion for expedited discovery. On October 20, 2016, the plaintiff filed a notice of withdrawal of the motion for expedited discovery, and on October 21, 2016, the Court denied the motion as moot. On October 27, 2016, the plaintiff in the Voth action filed an unopposed motion to consolidate the Related Actions, which the court granted on November 15, 2016. The motion to consolidate stated that the plaintiffs plan to dismiss the Related Actions as moot, but will request that the Court retain continuing jurisdiction solely for purposes of further proceedings related to the adjudication of plaintiffs’ anticipated application for an award of attorneys’ fees and expenses based on supplemental disclosure provided by the Company. On November 14, 2016, the court granted the defendants’ unopposed motions in both of the Related Actions to extend Defendants’ time to answer or otherwise respond to each complaint until January 10, 2017. The time for defendants to respond to the motion or to move or answer with respect to the complaint therefore has not yet expired.

 

29


SCHEDULE 5.9

Intellectual Property Claims

None.

 

30


SCHEDULE 5.15

Subsidiaries

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

A1 Leasing, Inc.

  

Regional Emergency Services, L.P.

   Florida      100

Abbott Ambulance, Inc.

  

Mission Care of Missouri, LLC

   Missouri      100

Accent Home Health Care Inc.

  

Guardian Healthcare Holdings, Inc.

   Indiana      100

Access 2 Care, LLC

  

Mission Care Services, LLC

   Missouri      100

Acute Management, LLC

  

Hawkeye HoldCo, LLC

   Texas      100

Adam Transportation Service, Inc.

  

American Medical Response, Inc.

   New York      100

Affilion, Inc.

  

Sun Devil Acquisition LLC

   Delaware      100

Agape Health Care Agency, LLC.

  

Guardian Healthcare Holdings, Inc.

   Ohio      100

Air Ambulance Specialists, Inc.

  

American Medical Response, Inc.

   Colorado      100

Alpha Physician Resources, L.L.C. (a/k/a Alpha Group I, LLC)

  

EmCare, Inc.

   New Jersey      100

Ambulance Acquisition, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Emergency Physicians Management, Inc.

  

EmCare of California, Inc.

   California      100

American Investment Enterprises, Inc.

  

Mercy, Inc.

   Nevada      100

American Medical Pathways, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response Ambulance Service, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response Delaware Valley, LLC

  

American Medical Response Mid-Atlantic, Inc.

   Delaware      100

American Medical Response Holdings, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response HPPP, LLC

  

American Medical Response, Inc. (Sole Member)

   Delaware      100

American Medical Response Management, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response Mid-Atlantic, Inc.

  

American Medical Response, Inc.

   Pennsylvania      100

American Medical Response Northwest, Inc.

  

American Medical Response, Inc.

   Oregon      100

American Medical Response of Colorado, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of Connecticut, Incorporated

  

American Medical Response, Inc.

   Connecticut      100

American Medical Response of Georgia, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of Illinois, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of Inland Empire

  

American Medical Response, Inc.

   California      100

American Medical Response of Maricopa, LLC

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of Massachusetts, Inc.

  

American Medical Response, Inc.

   Massachusetts      100

 

31


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

American Medical Response of New York, LLC

  

American Medical Response, Inc. (sole member)

   New York      100

American Medical Response of North Carolina, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of Oklahoma, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of Pima, LLC

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of South Carolina, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of Southern California

  

American Medical Response Ambulance Service, Inc.

   California      100

American Medical Response of Tennessee, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response of Texas, Inc.

  

American Medical Response, Inc.

   Delaware      100

American Medical Response West

  

American Medical Response, Inc.

   California      100

American Medical Response, Inc.

  

AMR HoldCo, Inc.

   Delaware      100

AMR Bay State, LLC

  

American Medical Response, Inc. (Sole Member)

   Delaware      100

AMR Brockton, L.L.C.

  

American Medical Response of Massachusetts, Inc.

   Delaware      100

AMR HoldCo, Inc. (f/k/a EMSC Management, Inc.)

  

Emergency Medical Services L.P.

   Delaware      100

AMR of Central Texas I, LLC

  

American Medical Response, Inc.

   Texas      100

AMR of Central Texas II, LLC

  

AMR of Central Texas I, LLC

   Texas      100

Apex Acquisition LLC

  

EmCare, Inc.

   Delaware      100

APH Laboratory Services, Inc.

  

Evolution Health, LLC

   Texas      100

Arizona EMS Holdings, Inc.

  

R/M Arizona Holdings, Inc.

   Arizona      100

Associated Ambulance Service, Inc.

  

American Medical Response, Inc.

   New York      100

Atlantic Ambulance Services Acquisition, Inc.

  

American Medical Response, Inc.

   Delaware      100

Atlantic/Key West Ambulance, Inc.

  

American Medical Response, Inc.

   Delaware      100

Atlantic/Palm Beach Ambulance, Inc.

  

American Medical Response, Inc.

   Delaware      100

Beacon Transportation, Inc.

  

Rural/Metro of Rochester, Inc.

   New York      100

BestPractices, Inc.

  

Holiday Acquisition Company, Inc.

   Virginia      100

Blythe Ambulance Service

  

Springs Ambulance Service, Inc.

   California      100

Bowers Companies, Inc.

  

Rural/Metro of Northern California, Inc.

   California      100

Bravo Reimbursement Specialist, L.L.C. (a/k/a Bravo Associates, L.L.C.)

  

Alpha Physician Resources, L.L.C

   New Jersey      100

Broward Ambulance, Inc.

  

American Medical Response, Inc.

   Delaware      100

Care Connection of Cincinnati LLC

  

Guardian Healthcare Holdings, Inc.

   Ohio      100

 

32


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Clinical Partners Management Company, LLC

  

EmCare, Inc.

   Texas      100

CMORx, LLC

  

EmCare, Inc.

   Texas      100

Community Auto and Fleet Services, L.L.C.

  

Gila HoldCo, LLC

   Delaware      100

Community EMS, Inc.

  

AMR Bay State, LLC

   Massachusetts      100

ComTrans Ambulance Service, Inc.

  

Arizona EMS Holdings, Inc.

   Arizona      100

ComTrans, Inc.

  

Gila HoldCo, LLC

   Delaware      100

Corning Ambulance Service Inc.

  

Rural/Metro of New York, Inc.

   New York      100

Desert Valley Medical Transport, Inc.

  

American Medical Response of Inland Empire

   California      100

Donlock, Ltd.

  

Rural/Metro Operating Company, LLC

   Pennsylvania      100

E.M.S. Ventures, Inc.

  

Rural/Metro Corporation (AZ)

   Georgia      100

Eastern Ambulance Service, Inc.

  

Rural/Metro Corporation (AZ)

   Nebraska      100

Eastern Paramedics, Inc.

  

Rural/Metro of New York, Inc.

   Delaware      100

ED Solutions, LLC

  

Alpha Physician Resources, L.L.C

   New Jersey      100

EDIMS, L.L.C.

  

Alpha Physician Resources, L.L.C

   New Jersey      100

EHR Management Co.

  

EmCare, Inc.

   Delaware      100

EmCare Anesthesia Providers, Inc.

  

EmCare, Inc.

   Delaware      100

EmCare HoldCo, Inc.

  

Emergency Medical Services L.P.

   Delaware      100

EmCare Holdings Inc.

  

EmCare HoldCo, Inc.

   Delaware      100

EmCare of California, Inc.

  

EmCare, Inc.

   California      100

EmCare Physician Providers, Inc.

  

EmCare, Inc.

   Missouri      100

EmCare Physician Services, Inc.

  

EmCare, Inc.

   Delaware      100

EmCare, Inc.

  

EmCare Holdings Inc.

   Delaware      100

Emergency Medical Services LP Corporation (f/k/a Emergency Medical Services L.P.)

  

Emergency Medical Services Corporation / EMS Executive Investco LLC

   Delaware      97% / 3

Emergency Medical Transport, Inc.

  

Arizona EMS Holdings, Inc.

   Arizona      100

Emergency Medical Transportation, Inc.

  

AMR Bay State, LLC

   Massachusetts      100

Emergency Medicine Education Systems, Inc.

  

EmCare, Inc.

   Texas      100

EMS Management LLC

  

AMR HoldCo, Inc. / EmCare HoldCo, Inc.

   Delaware      50% / 50

EMS Offshore Medical Services, LLC

  

American Medical Response, Inc.

   Delaware      100

EMS Ventures of South Carolina, Inc.

  

Rural/Metro Corporation (AZ)

   South Carolina      100

EMSC ServicesCo, LLC (f/k/a EMSC TransactionCo, LLC)

  

Envision Healthcare Corporation (sole member)

   Delaware      100

Epsilon Management Group, Inc.

  

EmCare, Inc. (Majority Shareholder)

   Delaware      100

 

33


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

ERgency Staffing and Recruiting, LLC

  

Epsilon Management Group, Inc.

   Michigan      100

EverRad, LLC

  

Templeton Readings, LLC

   Florida      100

Evolution Health LLC

  

Emergency Medical Services LP Corporation

   Delaware      100

Evolution Mobile Imaging, LLC

  

Evolution Health, LLC (Sole Member)

   Delaware      100

Five Counties Ambulance Service, Inc.

  

American Medical Response, Inc.

   New York      100

Florida Emergency Partners, Inc.

  

American Medical Response, Inc.

   Texas      100

Fountain Ambulance Service, Inc.

  

Hank’s Acquisition Corp.

   Alabama      100

Gem City Home Care, LLC.

  

Guardian Healthcare Holdings, Inc.

   Ohio      100

Gila Holdco LLC

  

American Medical Response, Inc.

   Delaware      100

Gold Coast Ambulance Service

  

V.I.P. Professional Services, Inc.

   California      100

Gold Cross Ambulance Service of Pa., Inc.

  

Gold Cross Ambulance Services, Inc.

   Ohio      100

Gold Cross Ambulance Services, Inc.

  

Rural/Metro of Ohio, Inc.

   Delaware      100

Grace Behavioral Health, L.L.C.

  

Gila HoldCo, LLC

   Delaware      100

Greater Pinellas Transportation Management Services, Inc.

  

Transportation Management Services of Brevard, Inc.

   Florida      100

Guardian Health Care, Inc.

  

Guardian Healthcare Holdings, Inc.

   Texas      100

Guardian Healthcare Group, Inc.

  

Evolution Health, LLC

   Delaware      100

Guardian Healthcare Holdings, Inc.

  

Guardian Healthcare Group, Inc.

   Delaware      100

Guardian Ohio Newco, LLC

  

Guardian Healthcare Holdings, Inc.

   Ohio      100

Hank’s Acquisition Corp.

  

American Medical Response, Inc.

   Alabama      100

Hawkeye Holdco LLC

  

EmCare, Inc. is Sole Member

   Delaware      100

Health Priority Home Care, Inc.

  

Guardian Health Care, Inc.

   Texas      100

Healthcare Administrative Services, Inc.

  

EmCare, Inc.

   Delaware      100

Hemet Valley Ambulance Service, Inc.

  

American Medical Response Ambulance Service, Inc.

   California      100

Herren Enterprises, Inc.

  

American Medical Response Ambulance Service, Inc.

   California      100

Holiday Acquisition Company, Inc.

  

EmCare, Inc.

   Colorado      100

International Life Support, Inc.

  

American Medical Response of Colorado, Inc.

   Hawaii      100

JLM Healthcare, Inc.

  

Guardian Healthcare Holdings, Inc.

   Texas      100

KMAC, Inc.

  

Guardian Healthcare Holdings, Inc.

   Texas      100

Kutz Ambulance Service, Inc.

  

American Medical Response, Inc.

   Wisconsin      100

LaSalle Ambulance Inc.

  

Rural/Metro of New York, Inc.

   New York      100

Life Line Ambulance Service, Inc.

  

American Medical Response, Inc.

   Arizona      100

LifeCare Ambulance Service, Inc.

  

American Medical Response Ambulance Service, Inc.

   Illinois      100

LifeFleet Southeast, Inc.

  

American Medical Response, Inc.

   Florida      100

 

34


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Mainstay Solutions, LLC

  

R/M Management Co., Inc. & Rural/Metor Corporation

   Arizona      100

Marlboro Hudson Ambulance & Wheelchair Service, Inc.

  

AMR Bay State, LLC

   Massachusetts      100

MedAssociates, LLC

  

EmCare, Inc.

   Texas      100

Medevac Medical Response, Inc.

  

American Medical Response, Inc.

   Missouri      100

Medevac MidAmerica, Inc.

  

American Medical Response, Inc.

   Missouri      100

Medic One Ambulance Services, Inc.

  

American Medical Response, Inc.

   Delaware      100

Medic One of Cobb, Inc.

  

American Medical Response Ambulance Service, Inc.

   Georgia      100

Medical Emergency Devices and Services (MEDS), Inc.

  

Rural/Metro Operating Company, LLC

   Arizona      100

Medi-Car Ambulance Service, Inc.

  

Medi-Car Systems, Inc.

   Florida      100

Medi-Car Systems, Inc.

  

American Medical Response, Inc.

   Florida      100

Medics Ambulance Service (Dade), Inc.

  

American Medical Response, Inc.

   Florida      100

Medics Ambulance Service, Inc.

  

American Medical Response, Inc.

   Florida      100

Medics Ambulance, Inc.

  

American Medical Response, Inc.

   Florida      100

Medics Emergency Services of Palm Beach County, Inc.

  

American Medical Response, Inc.

   Florida      100

Medics Subscription Services, Inc.

  

American Medical Response, Inc.

   Florida      100

Medics Transport Services, Inc.

  

American Medical Response, Inc.

   Florida      100

MedicWest Ambulance, Inc.

  

MedicWest Holdings, Inc.

   Nevada      100

MedicWest Holdings, Inc.

  

Nevada Red Rock Ambulance, Inc.

   Delaware      100

MedLife Emergency Medical Service, Inc.

  

Hank’s Acquisition Corp.

   Alabama      100

MedStat EMS, Inc.

  

American Medical Response, Inc.

   Mississippi      100

Mercury Ambulance Service, Inc.

  

Rural/Metro Corporation (AZ)

   Kentucky      100

Mercy Ambulance of Evansville, Inc.

  

Paramed, Inc.

   Indiana      100

Mercy Life Care

  

American Medical Response Ambulance Service, Inc.

   California      100

Mercy, Inc.

  

American Medical Response Ambulance Service, Inc.

   Nevada      100

Metro Ambulance Service (Rural), Inc.

  

American Medical Response, Inc.

   Delaware      100

Metro Ambulance Service, Inc.

  

American Medical Response, Inc.

   Delaware      100

Metro Ambulance Services, Inc.

  

American Medical Response, Inc.

   Georgia      100

Metro Care Corp.

  

Rural/Metro Operating Company, LLC

   Ohio      100

MetroCare Services – Abilene, L.P.

  

AMR of Central Texas I, LLC

   Texas      100

Metropolitan Ambulance Service

  

American Medical Response West

   California      100

Midwest Ambulance Management Company

  

American Medical Response, Inc.

   Delaware      100

Mission Care of Illinois, LLC

  

Mission Care Services, LLC

   Illinois      100

 

35


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Mission Care of Missouri, LLC

  

Mission Care Services, LLC

   Missouri      100

Mission Care Services, LLC

  

American Medical Response, Inc.

   Missouri      100

Mobile Medic Ambulance Service, Inc.

  

American Medical Response, Inc.

   Delaware      100

MSO Newco, LLC

  

Apex Acquisition LLC

   Delaware      100

National Ambulance & Oxygen Service, Inc.

  

Rural/Metro of Rochester, Inc.

   New York      100

Nevada Red Rock Ambulance, Inc.

  

Nevada Red Rock Holdings, Inc.

   Delaware      100

Nevada Red Rock Holdings, Inc.

  

American Medical Response, Inc.

   Delaware      100

North Miss. Ambulance Service, Inc.

  

Rural/Metro Operating Company, LLC

   Mississippi      100

Northwood Anesthesia Associates, L.L.C.

  

EmCare, Inc.

   Florida      100

Oherbst, Inc.

  

Guardian Healthcare Holdings, Inc.

   Texas      100

Pacific Ambulance, Inc.

  

Rural/Metro of Northern California, Inc.

   California      100

Paramed, Inc.

  

American Medical Response, Inc.

   Michigan      100

Park Ambulance Service Inc.

  

American Medical Response, Inc.

   New York      100

Patient Advocacy Group, LLC

  

AMR Holdco, Inc.

   Delaware      100

Phoenix Physicians, LLC

  

EmCare, Inc. (sole Member)

   Florida      100

Physician Account Management, Inc.

  

EmCare Physician Providers, Inc.

   Florida      100

Physicians & Surgeons Ambulance Service, Inc.

  

American Medical Response, Inc.

   Ohio      100

Pinnacle Consultants Mid-Atlantic, L.L.C.

  

Apex Acquisition LLC

   Delaware      100

Professional Medical Transport, Inc.

  

Arizona EMS Holdings, Inc.

   Arizona      100

Proven Healthcare Solutions of New Jersey, LLC (a/k/a Proven Healthcare Solutions)

  

Alpha Physician Resources, L.L.C

   New Jersey      100

ProvidaCare, L.L.C.

  

American Medical Pathways, Inc.

   Texas      100

Provider Account Management, Inc.

  

EmCare Physician Services, Inc.

   Delaware      100

Puckett Ambulance Service, Inc.

  

American Medical Response Ambulance Service, Inc.

   Georgia      100

QRx Medical Management, LLC

  

EmCare, Inc. (sole Member)

   Delaware      100

R/M Arizona Holdings, Inc.

  

Rural/Metro Corporation (AZ)

   Arizona      100

R/M Management Co., Inc.

  

Rural/Metro Corporation (AZ)

   Arizona      100

R/M of Tennessee G.P., Inc.

  

Rural/Metro Corporation of Tennessee

   Delaware      100

R/M of Tennessee L.P., Inc.

  

Rural/Metro Corporation of Tennessee

   Delaware      100

Radiology Staffing Solutions, Inc.

  

EmCare, Inc.

   Delaware      100

Radstaffing Management Solutions, Inc.

  

EmCare, Inc.

   Delaware      100

Randle Eastern Ambulance Service, Inc.

  

American Medical Response, Inc.

   Florida      100

 

36


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Regional Emergency Services, L.P.

  

Florida Emergency Partners, Inc. / American Medical Response Management, Inc.

   Delaware      1% / 99

Reimbursement Technologies, Inc.

  

EmCare, Inc.

   Pennsylvania      100

River Medical Incorporated

  

Arizona Oasis Acquisition, Inc.

   Arizona      100

RMC Corporate Center, L.L.C.

  

Rural/Metro Corporation

   Arizona      100

Rose Radiology, LLC

  

Spotlight HoldCo, LLC

   Texas      100

Rural/Metro (Delaware) Inc.

  

Rural/Metro Operating Company, LLC

   Delaware      100

Rural/Metro Corporation

  

WP Rocket Holdings, Inc.

   Delaware      100

Rural/Metro Corporation

  

Rural/Metro Operating Company, LLC

   Arizona      100

Rural/Metro Corporation of Florida

  

Rural/Metro Corporation (AZ)

   Florida      100

Rural/Metro Corporation of Tennessee

  

Rural/Metro Corporation (AZ)

   Tennessee      100

Rural/Metro Fire Dept., Inc.

  

Rural/Metro Corporation (AZ)

   Arizona      100

Rural/Metro Mid-South, L.P.

  

North Miss. Ambulance Service, Inc. / R/M of Tennesseee, G.P., Inc.

   Delaware      99% / 1

Rural/Metro of Brewerton, Inc.

  

Eastern Paramedics, Inc.

   New York      100

Rural/Metro of California, Inc.

  

Rural/Metro Corporation (AZ)

   Delaware      100

Rural/Metro of Central Alabama, Inc.

  

Rural/Metro Corporation (AZ)

   Delaware      100

Rural/Metro of Central Colorado, Inc.

  

Rural/Metro Operating Company, LLC

   Delaware      100

Rural/Metro of Central Ohio, Inc.

  

Rural/Metro of Ohio, Inc.

   Delaware      100

Rural/Metro of Greater Seattle, Inc.

  

Rural/Metro Operating Company, LLC

   Washington      100

Rural/Metro of Indiana, L.P.

  

The Aid Ambulance Company, Inc. / The Aid Company, Inc.

   Delaware      100

Rural/Metro of New York, Inc.

  

Rural/Metro Corporation (AZ)

   Delaware      100

Rural/Metro of Northern California, Inc.

  

Rual/Metro of California, Inc.

   Delaware      100

Rural/Metro of Northern Ohio, Inc.

  

Rural/Metro of Ohio, Inc.

   Delaware      100

Rural/Metro of Ohio, Inc.

  

Rural/Metro Corporation (AZ)

   Delaware      100

Rural/Metro of Oregon, Inc.

  

Rural/Metro Corporation (AZ)

   Delaware      100

Rural/Metro of Rochester, Inc.

  

Rural/Metro of New York, Inc.

   New York      100

Rural/Metro of San Diego, Inc.

  

Rural/Metro of California, Inc.

   California      100

Rural/Metro of Southern California, Inc.

  

Rural/Metro of California, Inc.

   Delaware      100

Rural/Metro of Southern Ohio, Inc.

  

Rural/Metro Operating Company, LLC

   Ohio      100

Rural/Metro of Tennessee, L.P.

  

R/M of Tennessee, L.P., Inc. / R/M of Tennessee, G.P., Inc.

   Delaware      99% / 1

Rural/Metro Operating Company, LLC

  

Rural/Metro Corporation (DE)

   Delaware      100

S. Fisher & S. Thomas Inc.

  

Guardian Healthcare Holdings, Inc.

   Texas      100

 

37


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

San Diego Medical Services Enterprise, LLC

  

Rural/Metro of Southern California, Inc. & Rural/Metro of San Diego, Inc.

   California      100

Seawall Acquisition, LLC

  

American Medical Response, Inc.

   Delaware      100

Seminole County Ambulance, Inc.

  

American Medical Response, Inc.

   Delaware      100

Sioux Falls Ambulance, Inc.

  

Rural.Metro Corporation (AZ)

   South Dakota      100

Southwest Ambulance and Rescue of Arizona, Inc.

  

Southwest Ambulance of Casa Grande, Inc.

   Arizona      100

Southwest Ambulance of Casa Grande, Inc.

  

Rural/Metro Operating Company, LLC

   Arizona      100

Southwest Ambulance of New Mexico, Inc.

  

Rural/Metro Operating Company, LLC

   New Mexico      100

Southwest Ambulance of Southeastern Arizona, Inc.

  

Southwest Ambulance of Casa Grande, Inc.

   Arizona      100

Southwest Ambulance of Tucson, Inc.

  

Rural/Metro Operating Company, LLC

   Arizona      100

Southwest General Services, Inc.

  

Rural/Metro Operating Company, LLC

   Arizona      100

Spotlight Holdco LLC

  

EmCare, Inc.

   Delaware      100

Springs Ambulance Service, Inc.

  

American Medical Response, Inc.

   California      100

SSAG, LLC

  

Gila HoldCo, LLC

   Delaware   

STAT Healthcare, Inc.

  

American Medical Response, Inc.

   Delaware      100

Streamlined Medical Solutions LLC

  

EmCare, Inc. (sole member)

   Texas      100

Sun Devil Acquisition LLC

  

EmCare, Inc.

   Delaware      100

Sunrise Handicap Transport Corp.

  

American Medical Response, Inc.

   New York      100

SW General, Inc.

  

Rural/Metro Operating Company, LLC

   Arizona      100

T.M.S. Management Group, Inc.

  

Access2Care, LLC

   Florida      100

TEK Ambulance, Inc.

  

American Medical Response Ambulance Service, Inc.

   Illinois      100

Templeton Readings, LLC

  

EmCare, Inc.

   Maryland      100

The Aid Ambulance Company, Inc.

  

Rural/Metro Corporation (AZ)

   Delaware      100

The Aid Company, Inc.

  

Rural/Metro Operating Company, LLC

   Indiana      100

Tidewater Ambulance Service, Inc.

  

Paramed, Inc.

   Virginia      100

TKG, Inc.

  

Guardian Healthcare Holdings, Inc.

   Oklahoma      100

Towns Ambulance Service, Inc.

  

Rural/Metro of New York, Inc.

   New York      100

Transportation Management Services of Brevard, Inc.

  

Access2Care, LLC

   Florida      100

Troup County Emergency Medical Services, Inc.

  

American Medical Response of Georgia, Inc.

   Georgia      100

V.I.P. Professional Services, Inc.

  

Seawall Acquisition, LLC

   California      100

Valley Fire Service, Inc.

  

Rural/Metro of Oregon, Inc.

   Delaware      100

Velita Smith Home Health, Inc.

  

Guardian Health Care, Inc.

   Texas      100

Vista Staffing Solutions, Inc.

  

EmCare, Inc.

   Delaware      100

 

38


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Vital Enterprises, Inc.

  

AMR Bay State, LLC

   Massachusetts      100

W & W Leasing Company, Inc.

  

Rural/Metro Corporation (AZ)

   Arizona      100

Whitaker Physicians Services, L.L.C.

  

Vista Staffing Solutions, Inc.

   Texas      100

WP Rocket Holdings Inc.

  

AMR HoldCo, Inc.

   Delaware      100

AmSurg KEC, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg EC Topeka, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg EC St. Thomas, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg EC Beaumont, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg EC Santa Fe, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg EC Washington, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Finance, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Torrance, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Abilene, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Maryville, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Melbourne, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Hillmont, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Northwest Florida, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Palmetto, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Ocala, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Crystal River, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Abilene Eye, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg El Paso, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg La Jolla, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Burbank, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Inglewood, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Suncoast, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg San Antonio TX, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Temecula CA, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Escondido CA, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg San Luis Obispo CA, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Scranton PA, Inc.

  

AmSurg Holdings, Inc.

   Tennessee      100

AmSurg Arcadia CA, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Main Line PA, LLC

  

ASDH I, LLC

   Tennessee      100

AmSurg Oakland CA, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Lancaster PA, LLC

  

ASDH I, LLC

   Tennessee      100

AmSurg Pottsville PA, LLC

  

ASDH I, LLC

   Tennessee      100

AmSurg Glendora CA, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Holdings, Inc.

  

Envision Healthcare Corporation

   Delaware      100

AmSurg Anesthesia Management Services, LLC

  

Envision Healthcare Corporation

   Tennessee      100

ASDH I, LLC

  

Sheridan Healthcare, Inc.

Envision Healthcare Corporation

   Tennessee     

 

5

95


Long Beach NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Torrance NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Davis NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

 

39


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Fullerton NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

San Antonio NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Austin NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Austin NSC, LP

  

AmSurg Holdings, Inc.

Austin NSC, LLC

   Texas     

 

99

1


Twin Falls NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Kenwood NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Towson NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Wilton NSC, LLC

  

AmSurg Holdings, Inc.

   Connecticut      100

NSC West Palm, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Tampa Bay NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Coral Springs NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

Weston NSC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

SHI II, LLC

  

Sheridan Holdings, Inc.

   Tennessee      100

NSC RBO East, LLC

  

AmSurg Holdings, Inc.

   Tennessee      100

AmSurg Colton CA, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Fresno Endoscopy, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Temecula II, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Kissimmee FL, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

AmSurg Altamonte Springs FL, Inc.

  

Envision Healthcare Corporation

   Tennessee      100

All Women’s Healthcare Holdings, Inc.

  

Sheridan Holdings, Inc.

   Delaware      100

All Women’s Healthcare, Inc.

  

All Women’s Healthcare Holdings, Inc.

   Florida      100

All Women’s Healthcare of Dade, Inc.

  

All Women’s Healthcare Holdings, Inc.

   Florida      100

All Women’s Healthcare of Sawgrass, Inc.

  

All Women’s Healthcare Holdings, Inc.

   Florida      100

All Women’s Healthcare of West Broward, Inc.

  

All Women’s Healthcare Holdings, Inc.

   Florida      100

All Women’s Healthcare Services, Inc.

  

All Women’s Healthcare Holdings, Inc.

   Florida      100

AllegiantMD, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Anesthesiologists of Greater Orlando, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Arizona Perinatal Care Centers, LLC

  

Sheridan Healthcorp, Inc.

   Arizona      100

Anesthesiology Associates of Tallahassee, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Bay Area Anesthesia, L.L.C.

  

Sheridan Healthcorp, Inc.

   Florida      100

Bethesda Anesthesia Associates, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Boca Anesthesia Service, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Broad Midwest Anesthesia, LLC

  

Sheridan Healthcorp, Inc.

   Missouri      100

Coastal Anesthesia Staffing, LLC

  

Coastal Anesthesiology Consultants, LLC

   Florida      100

 

40


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Coastal Anesthesiology Consultants, LLC

  

Sheridan Healthcorp, Inc.

   Florida      100

Chandler Emergency Medical Group, L.L.C. d/b/a Premier Emergency Medical Specialists

  

Sheridan Emergency Physician Services, Inc.

   Arizona      100

Discovery Clinical Research, Inc.

  

All Women’s Healthcare Holdings, Inc.

   Florida      100

Doctors Billing Service, Inc.

  

Partners in Medical Billing, Inc.

   California      100

Drs. Ellis, Rojas, Ross & Debs, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Flamingo Anesthesia Associates, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

FM Healthcare Services, Inc.

  

FMO Healthcare Holdings, Inc.

   Florida      100

FO Investments, Inc.

  

FMO Healthcare Holdings, Inc.

   Florida      100

FO Investments II, Inc.

  

FMO Healthcare Holdings, Inc.

   Florida      100

FO Investments III, Inc.

  

FMO Healthcare Holdings, Inc.

   Florida      100

FMO Healthcare Holdings, Inc.

  

Sheridan Holdings, Inc.

   Delaware      100

Global Surgical Partners, Inc.

  

FM Healthcare Services, Inc.

   Florida      100

Greater Florida Anesthesiologists, LLC

  

Sheridan Healthcorp, Inc.

   Florida      100

Gynecologic Oncology Associates, Inc.

  

Sheridan Healthcare, Inc.

   Florida      100

Jacksonville Beaches Anesthesia Associates, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Jupiter Anesthesia Associates, L.L.C.

  

Sunbeam Asset, LLC

   Florida      100

Jupiter Healthcare, LLC

  

Sheridan Healthcorp, Inc.

   Florida      100

Medi-Bill of North Florida, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Medical Information Management Solutions, LLC

  

Sheridan Healthcorp, Inc.

   Arizona      100

NAC Properties, LLC

  

Sheridan Healthcorp, Inc.

   Georgia      100

New Generations Babee Bag, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

North Florida Anesthesia Consultants, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

North Florida Perinatal Associates, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Parity Healthcare, Inc.

  

Sheridan Healthcare, Inc.

   Florida      100

Partners in Medical Billing, Inc.

  

Sheridan Holdings, Inc.

   Florida      100

Physician Office Partners, Inc.

  

Partners in Medical Billing, Inc.

   Kansas      100

Sentinel Healthcare Services, LLC

  

Sheridan Healthcorp, Inc.

   Georgia      100

Sheridan Anesthesia Services of Alabama, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Anesthesia Services of Louisiana, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Anesthesia Services of Virginia, Inc.

  

Sheridan Healthcare of Virginia, Inc.

   Florida      100

Sheridan CADR Solutions, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

 

41


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Sheridan Children’s Healthcare Services, Inc.

  

Sheridan Healthcare, Inc.

   Florida      100

Sheridan Children’s Healthcare Services of Arizona, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan Children’s Healthcare Services of Louisiana, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan Children’s Healthcare Services of New Mexico, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan Children’s Healthcare Services of Kentucky, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan Children’s Healthcare Services of Ohio, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan Children’s Healthcare Services of Virginia, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan Clinical Research, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Emergency Physician Services, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Emergency Physician Services of North Missouri, Inc.

  

Sheridan Emergency Physician Services, Inc.

   Florida      100

Sheridan Emergency Physician Services of Missouri, Inc.

  

Sheridan Emergency Physician Services, Inc.

   Florida      100

Sheridan Emergency Physician Services of South Florida, Inc.

  

Sheridan Emergency Physician Services, Inc.

   Florida      100

Sheridan Healthcare, Inc.

  

Sheridan Holdings, Inc.

   Delaware      100

Sheridan Healthcare of Louisiana, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Healthcare of Missouri, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Healthcare of Vermont, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Healthcare of Virginia, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Healthcare of West Virginia, Inc.

  

Sheridan Healthcorp, Inc.

   West Virginia      100

Sheridan Healthcorp, Inc.

  

Sheridan Healthcare, Inc.

   Florida      100

Sheridan Healthcorp of California, Inc.

  

Sheridan Healthcorp, Inc.

   California      100

Sheridan Healthy Hearing Services, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan Holdings, Inc.

  

Envision Healthcare Corporation

   Delaware      100

Sheridan Hospitalist Services of Florida, Inc.

  

Sheridan Emergency Physician Services, Inc.

   Florida      100

Sheridan InvestCo, LLC

  

Sheridan Healthcorp, Inc.

Sheridan Emergency Physician Services, Inc.

Florida United Radiology, L.C.

   Delaware     

 

 

33.333

33.333

33.333


Sheridan Leadership Academy, Inc.

  

Sheridan Holdings, Inc.

   Florida      100

 

42


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Sheridan Radiology Services, Inc.

  

Sheridan Holdings, Inc.

   Delaware      100

Sheridan Radiology Management Services, Inc.

  

Sheridan Radiology Services, Inc.

   Delaware      100

Sheridan ROP Services of Florida, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan ROP Services of Virginia, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Sheridan Scientific Intelligence, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Southeast Perinatal Associates, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

Sunbeam Asset LLC

  

Sheridan Healthcorp, Inc.

   Delaware      100

Tennessee Valley Neonatology, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

Tiva Healthcare, Inc.

  

Sheridan Healthcare, Inc.

   Florida      100

Valley Anesthesiology Consultants, Inc.

  

Sheridan Healthcorp, Inc.

   Arizona      100

Valley Clinical Research, Inc.

  

Sheridan Healthcorp, Inc.

   Florida      100

St. Lucie Anesthesia Associates, LLC

  

Sheridan Healthcorp, Inc.

   Florida      100

Sheridan Children’s Services of Alabama, Inc.

  

Sheridan Children’s Healthcare Services, Inc.

   Florida      100

The Kissimmee FL Endoscopy ASC, LLC

  

AmSurg Kissimmee FL, Inc.

   Tennessee      51

The Altamonte Springs FL Endoscopy ASC, LLC

  

AmSurg Altamonte Springs FL, Inc.

   Tennessee      51

Southern Idaho Ambulatory Surgery Center, LLC

  

Twin Falls NSC, LLC

   Idaho      54.78

Kenwood ASC, LLC

  

Kenwood NSC, LLC

   Ohio      75.94

Towson Surgical Center, LLC

  

Towson NSC, LLC

   Maryland      66.18

Coral Springs Ambulatory Surgery Center, LLC

  

Coral Springs NSC, LLC

   Florida      63.72

Stamford/NSC Management, LLC

  

Wilton NSC, LLC

   Connecticut      50.0

Wilton Surgery Center, LLC

  

Stamford/NSC Management, LLC

   Connecticut      54.92

Center of Morehead City, LLC

  

AmSurg Holdings, Inc.

   Tennessee      60

Eastern Shore Endoscopy, LLC

  

AmSurg Holdings, Inc.

   Tennessee      55

Central Massachusetts Ambulatory Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      55

The Knoxville Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Montgomery Eye Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

EyeCare Consultants Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Columbia ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Wichita Orthopaedic ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Willoughby ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

 

43


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

The Westglen Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Chevy Chase ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Oklahoma City ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Cincinnati ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Fayetteville ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Independence ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

AmSurg Northern Kentucky GI, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

AmSurg Louisville GI, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

AmSurg Kentucky Ophthalmology, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Phoenix Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Toledo Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Sun City Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Cape Coral/Ft. Myers Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Baltimore Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      60

The Boca Raton Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Minneapolis Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Northside Gastroenterology Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Mount Dora Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      54

The Oakhurst Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Waldorf Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Sarasota Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Middletown Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Dover Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Surgery Center of Middle Tennessee, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Kingston Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Las Vegas East Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Nevada      51

The Blue Ridge/Clemson Orthopaedic ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Hutchinson Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

 

44


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

The Metairie Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      69.2

College Heights Endoscopy Center, L.L.C.

  

AmSurg Holdings, Inc.

   Tennessee      56

Ocala FL Orthopaedic ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Bel Air Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Bloomfield Eye Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Newark Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Southfield Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Alexandria Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Columbia ASC Northwest, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

St. George Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Paducah Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Greenville ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Columbia TN Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Rogers AR Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Tulsa OK Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Kingsport TN Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Lewes DE Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Winter Haven/Sebring FL Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Rockledge FL Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Tampa FL Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Pueblo CO Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Western Washington Endoscopy Centers, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Lakeland FL Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      60.31

The Northern NV Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Edina MN Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The West Palm Beach FL Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

 

45


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Gainesville FL Orthopaedic ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Raleigh NC Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Lake Bluff IL Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Sun City AZ Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Overland Park KS Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Casper WY Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Rockville MD Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Blue Water ASC, LLC

  

AmSurg Holdings, Inc.

   Michigan      51

Greenspring Station Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Maryland      51

Maryland Endoscopy Center Limited Liability Company

  

AmSurg Holdings, Inc.

   Maryland      51

The Scranton PA GP, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Orlando FL Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The St. Louis MO Orthopaedic ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Yuma AZ Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Greensboro NC Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Tulsa OK Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The St. Cloud MN Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Salem OR Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The El Dorado Multi- Specialty ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Nashville TN Ophthalmology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Laurel MD Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Torrance CA Muti-Specialty ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Shenandoah TX Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The New Orleans LA Uptown/West Bank Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Metairie LA Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

 

46


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

The Rockville, ESC-North MD Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Silver Spring MD Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Ocean Endosurgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The South Bend IN Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Mesquite TX Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Conroe TX Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Glendale AZ Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Poway CA Multi-Specialty ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51.57

The San Diego CA Multi-Specialty ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      52.21

The Baton Rouge LA Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Pikesville MD Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Glen Burnie MD Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

West Bridgewater MA Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

The Orlando/Mills FL Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Miami Kendall FL Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

St. Clair Shores MI Opthamology ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Marin Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Blaine MN Multi-Specialty ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      53

Casa Colina Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Digestive Health Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Digestive Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Phoenix Orthopaedic Ambulatory Center, L.L.C.

  

AmSurg Holdings, Inc.

   Tennessee      51

Gastroenterology Associates Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Phoenix Endoscopy, L.L.C.

  

AmSurg Holdings, Inc.

   Tennessee      51

Central Texas Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Eye Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Carroll County Digestive Disease Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

 

47


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Elms Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

TEC North, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Hermitage TN Endoscopy ASC, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Central Park Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      55

North Richland Hills Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      57

Old Town Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      56.3648

Park Ventura Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      54.6363

Redbird Square Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      57

North Valley Orthopedic Surgery Center, L.L.C.

  

AmSurg Holdings, Inc.

   Tennessee      55

Boston Out-Patient Surgical Suites, L.L.C.

  

AmSurg Holdings, Inc.

   Tennessee      58.25

Waco Gastroenterology Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Bethesda Outpatient Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      55.42

Hillmoor Eye Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      55

Surgery Center of Volusia, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Arizona Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      55

COA ASC of Franklin County, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

North Valley Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

MDSINE, LLC

  

AmSurg Holdings, Inc.

   Tennessee      52.17

Pioneer Valley Surgicenter, LLC

  

AmSurg Holdings, Inc.

   Tennessee      63

East Valley Endoscopy, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Eagle Eye Surgery and Laser Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Doctors Park Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Eastern Massachusetts Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      61.36428

Sierra Pacific Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      0.01

Northeast Surgical Care of Newington, LLC

  

AmSurg Holdings, Inc.

   Tennessee      53.50

AmSurg Tampa Bay Anesthesia, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Middlesex Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      65

Mid Atlantic Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

Glen Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      51

32nd Street Surgery Center, LLC

  

AmSurg Holdings, Inc.

   Tennessee      57.43

 

48


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

WB Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      55.196

Red River Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      52.75

Eastern Connecticut Endoscopy Center, LLC

   AmSurg Holdings, Inc.    Connecticut      51

Boston Endoscopy Center, LLC

   AmSurg Holdings, Inc.    Tennessee      60

Connecticut Eye Surgery Center South, LLC

   AmSurg Holdings, Inc.    Connecticut      51

Hudson Crossing Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      51.8407

Short Hills Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      51.2069

Surgery Center of Allentown, LLC

   AmSurg Holdings, Inc.    Tennessee      62.

Cascade Endoscopy Center, LLC

   AmSurg Holdings, Inc.    Tennessee      51

Diagnostic Endoscopy Center, LLC

   AmSurg Holdings, Inc.    Tennessee      62

Oak Lawn IL Endoscopy ASC, LLC

   AmSurg Holdings, Inc.    Tennessee      51

Physicians’ Eye Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      54.32

Center for Ambulatory Surgery, LLC

   AmSurg Holdings, Inc.    Tennessee      53.5

St. Charles-AmSurg ASC Partners, LLC

   AmSurg Holdings, Inc.    Delaware      51

AmSurg Rockledge FL Anesthesia, LLC

   AmSurg Holdings, Inc.    Tennessee      51

Bend Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      51

Eye Surgery Center of Wichita, LLC.

   AmSurg Holdings, Inc.    Tennessee      51

River Drive Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      58.71540

South Portland Surgical Center, LLC

   AmSurg Holdings, Inc.    Tennessee      55

Eye Surgery Center of Western Ohio, LLC

   AmSurg Holdings, Inc.    Tennessee      51

Surgical Speciality Center of Northeastern Pennsylvania, LLC

   AmSurg Holdings, Inc.    Tennessee      1

Sunrise Ambulatory Surgical Center, LLC

   AmSurg Holdings, Inc.    Tennessee      51

AmSurg Columbia Anesthesia, LLC

   AmSurg Holdings, Inc.    Tennessee      51

Surgical Center of Millburn, LLC

   AmSurg Holdings, Inc.    Tennessee      55

Associated Eye Surgical Center, LLC

   AmSurg Holdings, Inc.    Tennessee      53

Campus Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      56.4103

Waverly Surgery Center, LLC

   AmSurg Holdings, Inc.    Tennessee      55

Surgery Center of Northeast Texas, LLC

   AmSurg Holdings, Inc.    Tennessee      53

Nashville Gastrointestinal Specialists, LLC

   AmSurg Holdings, Inc.    Tennessee      51

Connecticut Eye Anesthesia, LLC

   AmSurg Holdings, Inc.    Tennessee      51

 

49


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

Mississippi Coast Endoscopy and Ambulatory Surgery Center, LLC

  

AmSurg Holdings, Inc.

  

Tennessee

     51

Ocean Springs Surgical and Endoscopy Center, LLC

  

AmSurg Holdings, Inc.

  

Tennessee

     51

The Endoscopy Center of Knoxville, L.P.

  

AmSurg KEC, Inc.

  

Tennessee

     51

The Endoscopy Center of Topeka, L.P.

  

AmSurg EC Topeka, Inc.

  

Tennessee

     51

The Endoscopy Center of St. Thomas, L.P.

  

AmSurg EC St. Thomas, Inc.

  

Tennessee

     60

The Endoscopy Center of Southeast Texas, L.P.

  

AmSurg EC Beaumont, Inc.

  

Tennessee

     51

AmSurg South Bay Anesthesia, L.P.

  

AmSurg Torrance, Inc.

  

Tennessee

     51

Long Beach Surgery Center, L.P.

  

Long Beach NSC, LLC

  

California

     51.77

Davis Surgery Center, L.P.

  

Davis NSC, LLC

  

California

     69.47

Fullerton Surgical Center, L.P.

  

Fullerton NSC, LLC

  

California

     62.37

San Antonio ASC, LP

  

San Antonio NSC, LLC

  

Texas

     52.76

South Austin Holdings, L.L.P.

  

Austin NSC, LLC

  

Tennessee

     56.97517

West Palm Outpatient Surgery & Laser Center, Ltd.

  

NSC West Palm, LLC

  

Florida

     52.74

Weston Outpatient Surgical Center, Ltd.

  

Weston NSC, LLC

  

Florida

     55.791

Fresno CA Endoscopy ASC, L.P.

  

AmSurg Fresno Endoscopy, Inc.

  

Tennessee

     51

AmSurg Fresno CA Anesthesia, LP

  

AmSurg Fresno Endoscopy, Inc.

  

Tennessee

     51

AmSurg Arcadia Anesthesia, LP

  

AmSurg Arcadia CA, Inc.

  

Tennessee

     51

AmSurg Oakland Anesthesia, LP

  

AmSurg Oakland CA, Inc.

  

Tennessee

     51

Amsurg Marin Anesthesia, L.P.

  

AmSurg Holdings, Inc.

  

Tennessee

     51

AmSurg Stamford Anesthesia, LLC

  

AmSurg Holdings, Inc.

  

TN

     62

The Endoscopy Center of Santa Fe, L.P.

  

AmSurg EC Santa Fe, Inc.

  

Tennessee

     51

The Endoscopy Center of Washington D.C., L.P.

  

AmSurg EC Washington, Inc.

  

Tennessee

     51

Endoscopy Center of the South Bay, L.P.

  

AmSurg Torrance, Inc.

  

Tennessee

     51

The Abilene ASC, L.P.

  

AmSurg Abilene, Inc.

  

Tennessee

     60

The Maryville ASC, L.P.

  

AmSurg Maryville, Inc.

  

Tennessee

     53

The Melbourne ASC, L.P.

  

AmSurg Melbourne, Inc.

  

Tennessee

     51

The Hillmont ASC, L.P.

  

AmSurg Hillmont, Inc.

  

Tennessee

     51

The Northwest Florida ASC, L.P.

  

AmSurg Northwest Florida, Inc.

  

Tennessee

     51

The Palmetto ASC, L.P.

  

AmSurg Palmetto, Inc.

  

Tennessee

     51

The Ocala Endoscopy ASC, L.P.

  

AmSurg Ocala, Inc.

  

Tennessee

     51

The Crystal River Endoscopy ASC, L.P.

  

AmSurg Crystal River, Inc.

  

Tennessee

     51

The Abilene Eye ASC, L.P.

  

AmSurg Abilene Eye, Inc.

  

Tennessee

     51

 

50


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

The El Paso ASC, L.P.

  

AmSurg El Paso, Inc.

  

Tennessee

     51

The La Jolla Endoscopy Center, L.P.

  

AmSurg La Jolla, Inc.

  

Tennessee

     51

The Burbank Ophthalmology ASC, L.P.

  

AmSurg Burbank, Inc.

  

Tennessee

     51

Los Angeles/Inglewood Endoscopy ASC, L.P.

  

AmSurg Inglewood, Inc.

  

Tennessee

     51

The Suncoast Endoscopy ASC, L.P.

  

AmSurg Suncoast, Inc.

  

Tennessee

     51

The San Antonio TX Endoscopy ASC, L.P.

  

AmSurg San Antonio TX, Inc.

  

Tennessee

     51

The Temecula CA Endoscopy ASC, L.P.

  

AmSurg Temecula CA, Inc.

  

Tennessee

     51

The Escondido CA Endoscopy ASC, LP

  

AmSurg Escondido CA, Inc.

  

Tennessee

     51

The San Luis Obispo CA Endoscopy ASC, L.P.

  

AmSurg San Luis Obispo CA, Inc.

  

Tennessee

     51

The Scranton PA Endoscopy ASC, L.P.

  

AmSurg Scranton PA, Inc.

  

Tennessee

     51

The Arcadia CA Endoscopy ASC, L.P.

  

AmSurg Arcadia CA, Inc.

  

Tennessee

     51

The Main Line PA Endoscopy ASC, L.P.

  

AmSurg Main Line PA, LLC

  

Tennessee

     51

The Oakland CA Endoscopy ASC, L.P.

  

AmSurg Oakland CA, Inc.

  

Tennessee

     51

The Pottsville PA Endoscopy ASC, L.P.

  

AmSurg Pottsville PA, LLC

  

Tennessee

     51

Glendora CA Endoscopy ASC, L.P.

  

AmSurg Glendora CA, Inc.

  

Tennessee

     51

The Lancaster PA Endoscopy ASC, L.P.

  

AmSurg Lancaster PA, LLC

  

Tennessee

     51

Manatee Surgical Center, LLC

  

FO Investments II, Inc.

  

Florida

     50.1

South Palm Ambulatory Surgery Center, LLC

  

FO Investments, Inc.

  

Florida

     51

Meadows Surgery Center, LLC

  

FO Investments III, Inc.

  

New Jersey

     50.1

Anesthesia Associates of Joplin, LLC

  

32nd Street Surgery Center, LLC

  

Tennessee

     57.43

AmSurg Westminster Anesthesia, LLC

  

Carroll County Digestive Disease Center, LLC

  

Tennessee

     51

Anesthesia Associates of Bryan, LLC

  

Central Texas Endoscopy Center, LLC

  

Tennessee

     51

Easton Anesthesia Associates, LLC

  

Eastern Shore Endoscopy, LLC

  

Tennessee

     55

Redding Anesthesia Associates LP

  

Gastroenterology Associates Endsocopy Center, LLC

  

Tennessee

     51

AmSurg Hermitage Anesthesia, LLC

  

Hermitage TN Endoscopy ASC, LLC

  

Tennessee

     51

Maryland Endoscopy Anesthesia, LLC

  

Maryland Endsocopy Center, LLC

  

Tennessee

     51

AmSurg MDSine Anesthesia, LLC

  

MDSINE, LLC

  

Tennessee

     54.17

 

51


SCHEDULE 5.15

 

Name of Entity

  

Legal Ownership

  

Jurisdiction of
Organization

   Ownership
Interest
 

AmSurg North Valley Anesthesia, LLC

  

North Valley Endsocopy Center, LLC

  

Tennessee

     51

AmSurg Oak Lawn IL Anesthesia, LLC

  

Oak Lawn IL Endoscopy ASC, LLC

  

Tennessee

     51

AmSurg Citrus Anesthesia, LLC

  

Orland FL Endsocopy ASC, LLC

  

Tennessee

     51

AmSurg St. George Anesthesia, LLC

  

St. George Endoscopy Center, LLC

  

Tennessee

     51

AmSurg Port Orange Anesthesia, LLC

  

Surgery Center of Volusia, LLC

  

Tennessee

     51

Forty Fort Anesthesia Associates, LLC

  

Surgical Specialty Center of Northeastern Pennsylvania, Inc.

  

Tennessee

     51

AmSurg Abilene Anesthesia, LLC

  

The Abilene ASC, L.P.

  

Tennessee

     60

AmSurg Altamonte Springs Anesthesia, LLC

  

The Altamonte Springs FL Endsocopy ASC, LLC

  

Tennessee

     51

AmSurg Chattanooga Anesthesia, LLC

  

The Chatanooga Endoscopy ASC, LLC

  

Tennessee

     35

AmSurg Cincinnati Anesthesia, LLC

  

The Cincinnati ASC, LLC

  

Tennessee

     51

Anesthesia Associates of Columbia TN, LLC

  

The Columbia TN Endsocopy ASC, LLC

  

Tennessee

     51

AmSurg Greensboro Anesthesia, LLC

  

The Greensboro NC Endsocopy ASC, LLC

  

Tennessee

     51

AmSurg Greenville Anesthesia, LLC

  

The Greenville ASC, LLC

  

Tennessee

     51

Knoxville Eye Anesthesia, LLC

  

The Knoxville Ophthalmology ASC, LLC

  

Tennessee

     51

AmSurg Lewes Anesthesia, LLC

  

The Lewes DE Endoscopy ASC, LLC

  

Tennessee

     51

AmSurg Melbourne Anesthesia, LLC

  

The Melbourne ASC, L.P.

  

Tennessee

     51

AmSurg Indianapolis Anesthesia, LLC

  

The Northside Gastroenterology Endoscopy Center, LLC

  

Tennessee

     51

Anesthesia Associates of Ocala, LLC

  

The Ocala Endoscopy ASC, L.P.

  

Tennessee

     51

AmSurg San Luis Obispo Anesthesia, LLC

  

The San Luis Obispo CA Endoscopy ASC, L.P.

  

Tennessee

     51

AmSurg Toledo Anesthesia, LLC

  

The Toledo Endoscopy ASC, LLC

  

Tennessee

     51

AmSurg Willoughby Anesthesia, LLC

  

Willoughby ASC, LLC

  

Tennessee

     51

MSC Anesthesia, Inc.

  

Manatee Surgical Center, LLC

  

Florida

     50.10

Marblehead Surety & Reinsurance Company, Ltd.

  

Sheridan Healthcare, Inc.

  

Cayman Islands

     100

 

52


SCHEDULE 5.17

Environmental Matters

None.

 

53


SCHEDULE 5.20

Insurance

 

Coverage

  

Insured

  

Policy Number

  

Term

  

Insurer

  

Deductibles

/ SIR

  

Limits

Casualty

                 

General Liability

   Envision    HAZ40320740893    03/31/16 – 03/31/17    Continental Casualty   

$2,750,000 deductible xs

$250,000 SIR

  

$2,750,000 per occurrence / $5,000,000 general aggregate

$100,000 damage to rented premises

$10,000 medical expense

Automobile Liability
All States

   Envision    ISA H09041114    03/31/16 – 03/31/17    ACE American Ins. Co    $2,000,000   

$10,000,000 CSL

$10,000 medical payments

Automobile Liability Oklahoma

   Envision    ISA H09041874    03/31/16 – 03/31/17    ACE American Ins. Co    $2,000,000   

$10,000,000 CSL

$10,000 medical payments UM/UIM

Automobile Liability Texas

   Envision    ISA H09041886    03/31/16 – 03/31/17    ACE American Ins. Co    $2,000,000   

$10,000,000 CSL

$10,000 medical payments

UM/UIM $1,000,000

Excess Automobile Liability

   Envision    AEC019233700    03/31/16 – 03/31/17    American Guarantee & Liability Insurance Co. (Zurich)    N/A    $20,000,000 xs $10M

Workers Compensation
All Other States

   Envision    WLRC48602356    03/31/16 – 03/31/17    Indemnity Insurance Co. of N.A. (ACE)    $1,000,000    Statutory / $1,000,000

Workers Compensation
Wisconsin

   Envision    SCFC48602368    03/31/16 – 03/31/17    ACE Fire Underwriters    $1,000,000    Statutory / $1,000,000

Workers Compensation
AR, AZ, CA, MA

   Envision    WLRC48602344    03/31/16 – 03/31/17    ACE American Ins. Co    $1,000,000    Statutory / $1,000,000

Workers Compensation Excess
OH & WA

   Envision    WCU C4860237A    03/31/16 – 03/31/17    ACE American Ins. Co    $1,000,000 SIR    Statutory / $1,000,000

Healthcare Professional Liability
(AMR) / Excess Umbrella Liability

   Envision    6796605    03/31/16 – 03/31/17    Lexington Ins. Co.    N/A    $10,000,000 Healthcare PL / $14,000,000 Umbrella

Healthcare Professional Liability
(AMR) / Excess Umbrella Liability

   Envision    W1B173160101    03/31/16 – 03/31/17    Syndicates 2623/623 at Lloyd’s    N/A   

$10,000,000 Healthcare PL / $11,000,000 Umbrella

xs $10M/$14M

Excess Liability 1 st Excess

   Envision    EXC4223941    03/31/16 – 03/31/17    Great American Insurance Company of NY    N/A    $25,000,000 xs u/l

Excess Liability 2 nd Excess

   Envision    93642351    03/31/16 – 03/31/17    Federal Insurance Company    N/A    $25,000,000 xs $25M

 

54


SCHEDULE 5.20

 

Coverage

  

Insured

  

Policy Number

  

Term

  

Insurer

  

Deductibles

/ SIR

  

Limits

Excess Liability 3 rd Excess

   Envision    100003600306    03/31/16 – 03/31/17    Liberty Insurance Underwriters    N/A    $25,000,000 xs $50M

FINPRO

Fiduciary Liability

   Envision    8223-8478    12/01/15 – 12/01/16    Federal Insurance Company    $75,000    $5,000,000

Excess Fiduciary 10M xs 5M

   Envision    14-MGU-15-A36440    12/01/15 – 12/01/16    US. Specialty Insurance Company    N/A    $10,000,000 xs $5M

Excess Fiduciary 5M xs 15M

   Envision    106209925    12/01/15 – 12/01/16    Travelers Casualty & Surety Co. of America    N/A    $5,000,000 xs $15M

Fiduciary Liability

   Texas EM-1    8241-8192    12/01/15 – 12/01/16    Federal Insurance Company    $75,000    $5,000,000

Excess Fiduciary 10M xs 5M

   Texas EM-1    14-MGU-15-A36438    12/01/15 – 12/01/16    US. Specialty Insurance Company    N/A    $10,000,000 xs $5M

Excess Fiduciary 5M xs 15M

   Texas EM-1    106209918    12/01/15 – 12/01/16    Travelers Casualty & Surety Co. of America    N/A    $5,000,000 xs $15M

Crime Insurance

   Envision    025856185    12/01/15 – 12/01/16    National Union Fire Insurance Co of Pittsburgh, PA (Chartis)    $100,000    $10,000,000

Excess Crime Insurance 10M xs 10M

   Envision    IPR0379236500    03/31/16 - 03/31/17    Steadfast Insurance Company    $100,000    $10,000,000

Special Risk

   Envision    34-215-756    12/01/14 – 12/01/17    National Union Fire Insurance Co of Pittsburgh, PA (Chartis)    $0    $5,000,000

Errors & Omissions – Medical Billing

   Envision    6802-7537    12/01/15 – 12/01/16    Executive Risk Indemnity Inc. (Chubb)    $100,000    $10,000,000

Cyber Liability

   Envision    W180C1160201    03/20/16 – 03/20/17    Lloyds of London – Beazley    $250,000    $10,000,000

Excess Cyber Liability

   Envision    E05SAA4MH2002    03/20/16 – 03/20/17    Liberty Surplus Insurance Company    N/A    $10,000,000 xs $10M

 

55


SCHEDULE 5.20

 

Coverage

  

Insured

  

Policy Number

  

Term

  

Insurer

  

Deductibles

/ SIR

  

Limits

Excess Cyber Liability

   Envision    USUCS269875216    03/20/16 – 03/20/17    Lloyds of London - Hiscox    N/A    $10,000,000 xs $20M

International

Foreign Policy – Commercial Package

   Envision    PHFD37999313003    03/31/16 – 03/31/17    ACE American Ins. Co    N/A    $1,000,000/$2,000,000 agg

Public and Products Liability

   GMRTT    B0509PA011910    09/30/15 – 09/30/16    QBE Syndicates    N/A   

$5,000,000 Public Liability

$5,000,000 Pollution Liability

$5,000,000 Products Liability

Aviation & Pollution

Non-Owned Aviation

   Envision    AV04505440603    06/03/16 - 06/03/17    AIG Specialty    N/A    $10,000,000

Excess Aviation

   Envision    AX01166476904    06/03/16 - 06/03/17    AIG Aviation Insurance    N/A    $50,000,000 xs $10,000,000

Pollution Legal Liability & Remediation Legal Liability

   Envision    PEC001843810    05/01/16- 05/01/17    Greenwich Insurance Co (XL)    $50,000    $4,500,000 (Aggregate) / $1,250,000 (each)

EmCare

EmCare Medical Professional Liability AOS

   EmCare    HAZ104002538114    03/31/16 – 03/31/17    Continental Casualty    N/A   

$1,000,000 shared by physicians and allied health professionals - each medical incident

$3,000,000 per physician or allied health professional - annual agg

$1,000,000 shared by corporate entities - each medical incident

$5,000,000 shared by all corporate entities - annual aggregate

EmCare Medical Professional Liability Florida

   EmCare    HAZ106438754112    03/31/16 - 03/31/17    Continental Casualty    $250,000    $250,000 Each Medical Incident per Physician $750,000 Annual Agg - per Physician

EmCare Medical Professional Liability Indiana

   EmCare    HAZ104002542815    03/31/16 - 03/31/17    Continental Casualty    $250,000    $250,000 Each Medical Incident per Physician $750,000 Annual Agg - per Physician

EmCare Medical Professional Liability Kansas

   EmCare    HAZ106437784911    03/31/16 - 03/31/17    Continental Casualty    $200,000    $200,000 each claim $600,000 Aggregate

EmCare Professional Liability Louisiana

   EmCare    HAZ104002540015    03/31/16 - 03/31/17    Continental Casualty    $100,000    $100,000 each Medical Incident per Physician $300,000 Aggregate per Physician

EmCare Professional Liability New York

   EmCare    HAZ106440138715    03/31/16 - 03/31/17    Continental Casualty    $1,300,000    $1,300,000 each Medical Incident per Physician $3,900,000 Aggregate per Physician

EmCare Professional Liability Pennsylvania

   EmCare    HAZ104002539515    03/31/16 - 03/31/17    Continental Casualty    $500,000    $500,000 Per Physician $1,500,000 Aggregate Per Physician

 

56


SCHEDULE 5.20

 

Coverage

  

Insured

  

Policy Number

  

Term

  

Insurer

  

Deductibles

/ SIR

  

Limits

EmCare Professional Liability Wisconsin

   EmCare    HAZ104002541415    03/31/16 - 03/31/17    Continental Casualty    $1,000,000    $1,000,000 each Medical Incident per Physician $3,000,000 Aggregate per Physician

EmCare Work Comp

EmCare Workers Compensation/Employers Liability

   EmCare    90-16943 (plus various suffixes)    09/01/16 - 09/01/17    Sentry Insurance    $500,000    Statutory / $1,000,000

Ascension Health At Home

Professional / General Liability

   Ascension    MFL0045000216    02/01/16 – 02/01/17    OneBeacon (Homeland Insurance Company of NY)    $1,000 Employee Benefit Deductible per claim   

Healthcare Professional: Claims Made Retro 2/1/2012

$1,000,000 Each Claim

$3,000,000 Aggregate Sexual Misconduct Sublimit; (Included in PL)

$1,000,000 Per claim /agg General Liability: Occurrence

$1,000,000 Each Claim $3,000,000 Aggregate for all claims

$100,000 Damage to Premises Rented

Excess Liability

   Ascension    MFX0021100216    02/01/16 – 02/01/17    OneBeacon (Homeland Insurance Company of NY)    N/A    $10,000,000

Workers Compensation – AL

   Ascension    PLAL129001    02/01/16 – 02/01/17    AL State Fund    N/A    Statutory/$1,000,000

Workers Compensation – WI, IL, OH, MI, IN, TX, OK, KS

   Ascension    WC 5573428    02/01/16 – 02/01/17    AIG (Commerce and Industry Insurance Company)    N/A    Statutory/$1,000,000

Auto Liability

   Ascension    ISAH09041746    03/31/16 – 03/31/17    ACE American Insurance Company    $150,000   

$1,000,000 CSL

$5,000 Medical Payment

Directors & Officers and Employment Practices Liability

   Ascension    8242-1893    03/01/16 - 02/01/17    Chubb (Federal Insurance Company)    $50,000    $5,000,000

Crime Insurance

   Ascension    8242-1893    03/01/16 - 02/01/17    Chubb (Federal Insurance Company)    $25,000    $5,000,000

Special Risk

   Ascension    8242-1893    03/01/16 - 02/01/17    Chubb (Federal Insurance Company)    $0    $1,000,000

 

57


SCHEDULE 5.20

 

Coverage

  

Insured

  

Policy Number

  

Term

  

Insurer

  

Deductibles

/ SIR

  

Limits

Cyber Liability

   Ascension    0309-4184    03/01/16 – 02/01/17    AWAC    $25,000    $5,000,000

UHS

General Liability/PL

   UHS    MFL0049240416    4/24/16 - 4/24/17    Homeland Insurance Company of New York    $0    $1,000,000 Each Claim/ $3,000,000 Aggregate

Cyber Liability

   UHS    03101056    4/24/16 - 4/24/17    Allied World Assurance Company (U.S.) Inc.    $10,000    $1,000,000 Aggregate

D&O

   UHS    03101062    4/24/16 - 4/24/17    Allied World Assurance Company (U.S.) Inc.    $10,000    $1,000,000 Aggregate

EMX

Directors & Officers Runoff

   EMX    8243-7044    09/15/15 – 09/15/21    Chubb (Federal Insurance Company)   

$50,000

$100,000 (Anti-Trust)

   $5,000,000

Directors & Officers Excess Runoff

   EMX    SISIXFL21234315    09/15/15 – 09/15/21    Starr Indemnity    N/A    $5,000,000

Directors & Officers Go-Forward

   EMX    8243-7043    09/15/15 – 09/15/17    Chubb (Federal Insurance Company)   

$50,000

$100,000 (Anti-Trust)

   $1,000,000

Rural/Metro

Contractors Pollution Liability

   Rural/Metro    37313484    12/31/14 - 12/31/16    Chubb (Chubb Custom Insurance Company)    $100,000 Each Pollution Incident   

$10,000,000 Each Pollution Incident

$10,000,000 Agg Limit

Auto – NY

   Rural/Metro    ISAH08867410    1/1/16 - 1/1/17    ACE American Insurance Company    N/A    $50,000

Property

Primary Property $50mm

   EVHC    25032476    10/28/16-10/28/17    Lexington Insurance Company    25000    $50,000,000

D&O

Directors & Officers Runnoff - 01 - Rural Metro

   EVHC    01-144-29-89    10/28/15 - 10/28/21    National Untion Fire Insurance CO      

Directors & Officers Runnoff - 02 - Rural Metro

   EVHC    8237-8577    10/28/15 - 10/28/21    Chubb Custom Ins      

 

58


SCHEDULE 5.20

 

Coverage

  

Insured

  

Policy Number

  

Term

  

Insurer

   Deductibles
/ SIR
  

Limits

Directors & Officers Runnoff - 03 - Rural Metro

   EVHC    ELU18381-15    10/28/15 - 10/28/21    XL Specialty Insurance Company      

Directors & Officers Runnoff - 04 - Rural Metro

   EVHC    G23678950 002    10/28/15 - 10/28/21    ACE American Insurance Company      
                 

Directors & Officers Primary

   EVHC    ELU141341-15    10/14/15 - 12/31/16    XL Specialty Insurance Company    2500000   

Directors & Officers - 1st Shared Excess

   EVHC    01-932-84-93    10/14/15 – 12/31/16    National Union Fire Insurance Company      

Directors & Officers - 2nd Shared Excess

   EVHC    G27164183 003    10/14/15 - 12/31/16    ACE American Insurance Company      

Directors & Officers - 3rd Shared Excess

   EVHC    DOX10007978800    10/14/15 - 12/31/16    Endurance American Insurance Company      

Directors & Officers - 4th Shared Excess

   EVHC    106392688    10/14/15 – 12/31/16    Travelers Casualty & Surety Comp      

Directors & Officers - 5th Shared Excess

   EVHC    MAXA6EL0002271    10/14/15 - 12/31/16    Markel Insurance Company      

Directors & Officers - 6th Shared Excess

   EVHC    01-932-94-17    10/14/15 - 12/31/16    National Union Fire Insurance Company      

Directors & Officers - 7th Shared Excess

   EVHC    01-932-94-20    10/14/15 - 12/31/16    National Union Fire Insurance Company      

Directors & Officers - 8th Shared Excess

   EVHC    MLA65N115A0Q    10/14/15 - 12/31/16    Aspen Bermuda Limited       $10,000,000 xs $90,000,000

Directors & Officers - 9th Shared Excess

   EVHC    ELU141343-15    10/14/15 - 12/31/16    XL Specialty Insurance Company      

Directors & Officers - 10th Shared Excess

   EVHC    18015754    10/14/15 - 12/31/16    Berkley Professional Liability LLC      

 

59


SCHEDULE 5.20

 

Coverage

  

Insured

  

Policy Number

  

Term

  

Insurer

  

Deductibles
/ SIR

  

Limits

State Workers’ Compensation Policies

Alabama WC

   Care First Hospice LLC    100-1000128    01/01/16 - 01/01/17    Alabama Self-Insured Workers’ Compensation Fund       Statutory

Alabama WC

   St. Vincent’s Home Health, LLC    100-1000127    01/01/16 - 01/01/17    Alabama Self-Insured Workers’ Compensation Fund       Statutory

Nevada WC

   UHS JV    NRN4903-2016-04       Nevada Retail Network       Statutory

North Dakota

   Rural Metro    1271960            

Ohio BWC

   Guardain Healthcare Holdings Inc    20005742    01/01/16 - 01/01/17    Ohio Bureau of Workers’ Compensation       Statutory

Ohio BWC

   Ohio EM-I Medical Services, PC    1447675    01/01/16 - 01/01/17    Ohio Bureau of Workers’ Compensation       Statutory

Ohio BWC

   Phoenix Physicians    1593854    01/01/16 - 01/01/17    Ohio Bureau of Workers’ Compensation       Statutory

Ohio BWC

   Physicians & Surgeons Ambulance Service, Inc.    20005293    01/01/16 - 01/01/17    Ohio Bureau of Workers’ Compensation       Statutory

Ohio BWC

   Rural/Metro of Ohio, Inc.    20005020    01/01/16 - 01/01/17    Ohio Bureau of Workers’ Compensation       Statutory

Washington WC

   Envision Healthcare Corporation    602587788 / 890,424-02    01/01/16 - 01/01/17    Washington State Department of Labor & Industries       Statutory

Washington WC

   Inpatient Services of Washington, PC    602479324 / 036,076-01    01/01/16 - 01/01/17    Washington State Department of Labor & Industries       Statutory

Washington WC

   Washington EM-I Medical Services, PC    601913783 / 036,076-00    01/01/16 - 01/01/17    Washington State Department of Labor & Industries       Statutory

See also Annex A and Annex B attached hereto.

 

60


SCHEDULE 5.20

Annex A

 

Policy
Effective
Date

  

Policy
Expiration
Date

  

Carrier Name

   Policy Number   

Coverage Type

   Limits of Insurance      Deductible/
Retention
 

10/1/2015

   12/31/2016    Federal Insurance Company    82227077   

Directors & Officers Liab

($10M)

     $10,000,000        
 
 
 
 
 
 
 
 
 
 
$250,000 Non-
Securities
Claims
$1,500,000
Securities
Claims
$2,500,000
Merger
Objection
Securities
Claims
 
  
  
  
  
  
  
  
  
  
  

10/1/2015

   12/31/2016    Axis Insurance Co.    MNN710029012015    Excess Director & Officer ($10M x $10M)      $10,000,000         Nil   

10/1/2015

   12/31/2016    ACE American Insurance Company    DOX G26810425 002    Excess Director & Officer ($10M x $20M)      $10,000,000         Nil   

10/1/2015

   12/31/2016    RLI Insurance Company    EPG0013963    Excess Director & Officer ($10M x $30M)      $10,000,000         Nil   

10/1/2015

   12/31/2016    National Union Fire Company of Pittsburgh, Pa.    01-823-80-79    Excess Director & Officer ($10M x $40M)      $10,000,000         Nil   

10/1/2015

   12/31/2016    Argonaut Insurance Company    MLX 7601000-01    Excess Director & Officer 8th ($10x $50M)      $10,000,000         Nil   

10/1/2015

   12/31/2016    Ironshore Indemnity Inc.    2099101    Excess Director & Officer 9th ($10x $60M)      $10,000,000         Nil   

10/1/2015

   12/31/2016    RLI Insurance Company    EPG0013964    Excess Director & Officer 10th ($10M x $70) xs Side A      $10,000,000         Nil   

10/1/2015

   12/31/2016    XL Specialty Insurance Company    ELU140961-15    Excess Director & Officer 11th ($5M x $80M) xs Side A      $5,000,000         Nil   

10/1/2015

   12/31/2016    Endurance Risk Solutions Assurance Co.    ADX10005272501    Excess Director & Officer 12th ($10 x $85M) xs Side A      $10,000,000         Nil   

10/1/2015

   12/31/2016    National Union Fire Ins. Co. of PA    01-823-80-82    Excess Director & Officer 13th (5M xs $95M) xs Side A      $5,000,000         Nil   

 

61


SCHEDULE 5.20

Annex A

 

Policy
Effective
Date

  

Policy
Expiration
Date

  

Carrier Name

   Policy Number   

Coverage Type

   Limits of Insurance      Deductible/
Retention
 

10/1/2015

   12/31/2016    Underwriters at Lloyds (Beazley Syndicate)    B0146ERUSA1500306    Employment Practices Liability      $10,000,000        
 
 
 
$100,000
(AmSurg)
$250,000
(Sheridan)
  
 
  
  

10/1/2015

   12/31/2016    Federal Insurance Company    82227075    Fiduciary Liability ($10M)      $10,000,000         $25,000   

10/1/2015

   12/31/2016    RLI Insurance Company    EPG0013961    Excess Fiduciary Liability ($10M xs $10M)      $10,000,000         Nil   

10/1/2015

   12/31/2016    AXIS Insurance Company    MNN769441012015    Crime ($5M)      $5,000,000         $100,000   

10/1/2015

   12/31/2016    RLI Insurance Company    BND0101311    Excess Crime ($5M xs $5M)      $5,000,000         Nil   

10/1/2015

   12/31/2016    Federal Insurance Company    8241-2473    Employed Lawers Professional Liability      $1,000,000         $25,000   

1/1/2015 until cancelled

   Travelers Casualty & Surety Co. of Amer    106169161   

ERISA Bond - Center

#2063-001

     $25,000         Nil   

4/1/2008 until cancelled

   Travelers Casualty & Surety Co. of Amer    105101282   

ERISA Bond - Center

#2155-001

     $100,000         Nil   

4/1/2008 until cancelled

   Travelers Casualty & Surety Co. of Amer    105101288   

ERISA Bond - Center

#2150-001

     $50,000         Nil   

7/1/2008 until cancelled

   Travelers Casualty & Surety Co. of Amer    105150268   

ERISA Bond - Center

#2177-001

     $40,000         Nil   

12/31/2009 until cancelled

   Travelers Casualty & Surety Co. of Amer    105389246   

ERISA Bond - Center

#2211-001

     $200,000         Nil   

10/18/2015 until cancelled

   Travelers Casualty & Surety Co. of Amer    106335504   

ERISA Bond - Center

#2206-001

     $150,000         Nil   

8/14/2016

   8/13/2019    Great American Insurance Company    E062917    ERISA Bond      $84,000         Nil   

7/29/2016

   7/28/2019    Great American Insurance Company    1534103   

ERISA Bond - Center

#2034-001

     $150,000         Nil   

7/29/2016

   7/28/2019    Great American Insurance Company    1534113   

ERISA Bond - Center

#2106-001

     $100,000         Nil   

11/1/2016

   11/1/2017    Columbia Casualty Company    NSN4015780009    Medical Professional Liability (Anesthesologist/CRNA)      $1M/$3M         Nil   

 

62


SCHEDULE 5.20

Annex A

 

Policy
Effective
Date

  

Policy
Expiration
Date

  

Carrier Name

   Policy Number   

Coverage Type

   Limits of Insurance      Deductible/
Retention
 

10/1/2016

   10/1/2017    Zurich American Insurance Company    HPC387160215    Professional/General Liability (Kansas)     
 

 

$200K/$600K; $1M/$3M -
PL

$1M/$3M - GL

  
  

  

     $25,000   

10/1/2016

   10/1/2017    Zurich-American Insurance Company of Illinois    HPC587239614    Professional/General Liability (Delaware)     
 
$1M/$3M - PL
$1M/$3M - GL
  
  
     $25,000   

10/1/2016

   10/1/2017    Steadfast Insurance Company    HPC378263816    Professional/General Liability (All Other States)     
 

 

$100K/$300K; $1M/$3M -
PL

$1M/$3M - GL

  
  

  

     $25,000   

10/1/2016

   10/1/2017    Steadfast Insurance Company    HPC913954010    Umbrella      $10,000,000         $100,000   

10/1/2016

   10/1/2017    National Fire & Marine Insurance Company    42-XHC-170048-03    Excess Liability ($10M x $10M)      $10,000,000         Nil   

10/1/2016

   10/1/2017    Illinois Union Insurance Company    XFL G27114118 004    Excess Liability ($5M x $5M)      $5,000,000         Nil   

10/1/2016

   10/1/2017    American Zurich Insurance Company    BAP4353384-04    Commercial Automobile      $1,000,000         $1,000   

10/1/2016

   10/1/2017    Zurich American Insurance Company    WC435338304    Workers Compensation      $1,000,000         Nil   

10/1/2016

   10/1/2017    Zurich American Insurance Company    WC435338504    Workers Compensation - Wilton      $1,000,000         Nil   
            Workers Compensation - Colton      

6/30/2016

   6/30/2017    XL Insurance America, Inc.    US00067448PR16A    Commercial Property      $200,000,000        
 
 
 
$100K Per
occurrence
$300K
Aggregate
  
  
  
  

6/30/2016

   6/30/2017    QBE Specialty Insurance Company (75%) General Security Indemnity Co. of Arizona (25%)    ESE1358100
TR00014860050515
   Earthquake      $30,000,000        
 
 
 
5%, subject to
$100,000
minimum per
occurrence
  
  
  
  

4/30/2016

   4/30/2017    Wright National Flood Insurance Company    17115032419206    Flood - Center #2084-001     
 
$0 Building
$500,000 Contents
  
  
    
 
$0 Building
$1,000 Contents
  
  

9/6/2016

   9/6/2017    Wright National Flood Insurance Company    9115006801407    Flood - Center #2028-001     
 
$0 Building
$500,000 Contents
  
  
    
 
$0 Building
$1,000 Contents
  
  

 

63


SCHEDULE 5.20

Annex A

 

Policy
Effective
Date

  

Policy
Expiration
Date

  

Carrier Name

   Policy Number   

Coverage Type

   Limits of Insurance      Deductible/
Retention
 

3/16/2016

   3/16/2017    Wright National Flood Insurance Company    9115025756106    Flood - Center #2250-001     
 
$0 Building
$500,000 Contents
  
  
    
 
$0 Building
$1,000 Contents
  
  

6/13/2016

   6/13/2017    Wright National Flood Insurance Company    9115043864906    Flood - Center #2056-001     
 
$0 Building
$500,000 Contents
  
  
    
 
$0 Building
$1,000 Contents
  
  

6/13/2016

   6/13/2017    Wright National Flood Insurance Company    9115043865006    Flood - Center #2031-001     
 
$0 Building
$500,000 Contents
  
  
    
 
$0 Building
$1,000 Contents
  
  

6/17/2016

   6/17/2017    Wright National Flood Insurance Company    17115044798706    Flood - Center #2179-001     
 
$0 Building
$500,000 Contents
  
  
    
 
$0 Building
$1,000 Contents
  
  

3/21/2016

   3/21/2017    American Bankers Ins. Co. of FL    60029455972015    Flood - Center #2249-001     
 
$500,000 Building
$500,000 Contents
  
  
    
 
$1,250 Building
$1,250 Contents
  
  

8/16/2016

   8/16/2017    Standard Fire Insurance Company    60101835052015    Flood - Center #2265-001     
 
$500,000 Building
$500,000 Contents
  
  
    
 
$1,250 Building
$1,250 Contents
  
  

1/18/2016

   1/18/2017    Wright National Flood Insurance Company    17115088641103    Flood - Center #2178-001     
 
$0 Building
$500,000 Contents
  
  
    
 
 
$0 Building
$50,000
Contents
  
  
  

3/30/2016

   3/30/2017    Wright National Flood Insurance Company    9115088625802    Flood - Center #2198-001     
 
$0 Building
$500,000 Contents
  
  
    
 
$0 Building
$1,000 Contents
  
  

1/8/2016

   1/8/2017    Wright National Flood Insurance Company    39115105862002    Flood - Center #2276-001     
 
$0 Building
$500,000 Contents
  
  
    
 
$0 Building
$1,000 Contents
  
  

11/6/2008

   11/6/1959    ReliaStar Life Insurance Company    AD20066900    Key Man Life Insurance - Dr. William Mayoral      $2,000,000         Nil   

11/3/2008

   11/3/1945    ReliaStar Life Insurance Company    AD20064402    Key Man Life Insurance - Dr. William B. Ruderman      $2,000,000         Nil   

8/13/2013

   8/13/1964    ReliaStar Life Insurance Company    AD20586653    Key Man Life Insurance - Dr. Matthew Boyer      $2,000,000         Nil   

10/1/2015

   12/31/2016    Beazley Insurance Company    PH1500223    Breach Response Liability      $10,000,000         $25,000   

12/9/2016

   12/9/2017    Columbia Casualty Company    NSD6014620695    Professional Liability      $1M / $3M         Nil   

 

64


SCHEDULE 5.20

 

Annex B

 

Policy Effective
Date

  Policy Expiration
Date
 

Named Insured

  Policy Number  

Coverage

Type

 

Carrier

  Premium*   Limits of Insurance   Deductible/
Retention

2/14/2014

  2/14/2015  

Manatee Surgery Center, LLC

  1259099   Directors & Officers   Carolina Casualty Insurance Company   $8,575   $1M D&O/EPL   $15,000

9/1/2013

  9/1/2014  

Manatee Surgery Center, LLC

  CA00143165   Commercial Auto   FCCI Insurance Company   $285   $1M   NIL

9/1/2013

  9/1/2014  

Manatee Surgery Center, LLC

  GL 00091415   General Liability   Federal Insurance Company   $3,829   $1M/$2M   $10,000

12/9/2013

  12/9/2014  

Manatee Surgery Center, LLC

  IJG418010   Professional Liability   General Star Indemnity   $175,767   $1M/$3M   NIL

9/1/2013

  9/1/2014  

Manatee Surgery Center, LLC

  UMB00094455   Umbrella   FCCI Insurance Company   $3,865   $3M   $10,000

1/1/2014

  1/1/2015  

Manatee Surgery Center, LLC

  001-WC14A-67700   Workers Compensation   FCCI Insurance Company   $42,638   $500K/$500K/
$500K
  NIL

9/1/2013

  9/1/2014  

Manatee Surgery Center, LLC

  CP00058905   Property   FCCI Insurance Company   $32,963   $3,043,589 Building

$1,862,715 BPP

$1,800,000
Business Income

  $5,000

12/11/2013

  12/11/2014  

Manatee Surgery Center, LLC

  0305-1104   Professional Liab/ General Liab   Darwin Insurance Company   $16,011   $1M/$3M   NIL

4/7/2014

  4/7/2015  

Meadows Surgery Center, LLC

  13 SBA R02274   Property/GL/Auto /UMB   Sentinel Insurance Company   $12,823   $1M/$2M;

BPP $3,526,900;
M&S $10k/$5k; BI
on ALS basis;

EPL $10k;
HNOA $1M;
EBL $1M;

$3M UMB (which
includes WC
13WBCZP1999)

  NIL

 

65


SCHEDULE 5.20

Annex B

 

Policy Effective
Date

  Policy Expiration
Date
 

Named Insured

  Policy Number  

Coverage

Type

 

Carrier

  Premium*   Limits of Insurance   Deductible/
Retention

1/31/2011

  Until
Cancelled
 

Meadows Surgery Center, LLC

  13BDDFY1148   Crime Bond   Sentinel Insurance Company   $388   500000   NIL

4/7/2014

  4/7/2015  

Meadows Surgery Center, LLC

  13WBCZP1999   Workers Comp   Sentinel Insurance Company   $9,752   $1M/$1M/$1M   NIL

10/30/2013

  10/30/2014  

Meadows Surgery Center, LLC

  EKO3114814   Directors & Officers   National Casualty Company   $10,882   $2M D&O, $2M EPLI,
$1M FID
  $15,000 EPL

8/15/2013

  8/15/2014  

South Palm Ambulatory Surgery Center

  87048406532013   Flood   Hartford Fire Insurance Company   $3,428   $500K limit   NIL

7/2/2013

  7/2/2014  

South Palm Ambulatory Surgery Center

  G24299326002   Directors & Officers   Westchester Fire Insurance Company   $3,663   $1m/$2m   NIL

8/24/13

  8/24/2014  

South Palm Ambulatory Surgery Center

  LHC740819   Professional Liab/ General Liab   Landmark American Ins Co (RSUI)   $36,625   $1M/$3M   NIL

3/21/2014

  3/21/2015  

South Palm Ambulatory Surgery Center

  MXI-93057167
(COP)
  Property   AGCS Marine Insurance Company   $34,197     $5,000

6/1/2013

  6/1/2014  

Melbourne Surgery Center - Excess Policy

  HPE40320940520   Professional Liab/ General Liab Excess   CNA   $23,223   $1M/$1M   NIL

2/2/2015

  2/2/2016  

Western Pennsylvania Anesthesia Associates, Ltd.

  1-GLCM001012   Professional Liability   Healthcare Providers Insurance Exchange   $34,721
MCARE Billed
Separately
  $500K/$1.5M Physicians

$500K/$1.5M Entity

$500K/$1.5M MCARE

  NIl

2/2/2015

  2/2/2016  

Western Pennsylvania Anesthesia Associates, Ltd.

  1-GLCM001013   Professional Liability   Healthcare Providers Insurance Exchange   $6,806   $500K/$1.5M
Designated Medical
Employee
  NIL

2/2/2015 Cancellation Date

   

Leena P Shete, MD
Western Pennsylvania Anesthesia Associates, Ltd.

  1-CMP0000387   Professional Liability - Reporting Endorsement   Healthcare Providers Insurance Exchange   $0   $500K/$1.5M
Physicians
  NIL

 

66


SCHEDULE 5.20

Annex B

 

Policy Effective
Date

  Policy Expiration
Date
 

Named Insured

  Policy Number  

Coverage

Type

 

Carrier

  Premium*   Limits of Insurance   Deductible/
Retention

8/1/2015

  8/1/2016  

Tennessee Valley Neonatology, Inc

  MP77837   Professional Liability   ProAssurnace Indemnity Company, Inc.   $38,971   $1M/$3M   NIL

8/15/2015

  8/15/2016  

Physicians Office Partners

  37 SBA
UX3412
SA
  BOP   Hartford Fire Insurance Company   $5,433   $1M/$2M GL
Various by Location - BPP
  $500 Property

1/1/2015

  1/1/2016  

Physicians Office Partners

  8242-0642   EPL/Fiduciary/Miscellaneous Professional/Cyber/Crime   Federal Insurance Company   $23,374   $1M EPL

$1M Fiduciary

$1M Maximum

Aggregate

$1M Cyber

$1M Crime

  $10,000 EPL
NIL Fiduciary
$10,000 MP
$25K Cyber
$1K Crime

3/6/2015

  3/6/2016  

Radiology Associates of Hollywood, PA

  Unknown   Professional Liability   Physicians Professional Liability Risk Retention Group   Unknown   $250K/$750K   NIL

4/1/2015

  4/1/2016  

Halifax Anesthesiology Associates, PA

  Unknown   Professional Liability   Halifax Insurance Plan, Inc.   Unknown   $500K/$1M
$1M Group Agg
  NIL

 

67


SCHEDULE 7.2

Website Address for Electronic Financial Reporting

 

1. investor.evhc.net

or

 

2. ir.emsc.net

 

68


SCHEDULE 8.11

Affiliate Transactions

None.

 

69


SCHEDULE 8.13(d)

Third Amendment Effective Date Existing Indebtedness

General

 

1. Schedule 1.1(a) is incorporated herein by reference.

 

2. Surety Bonds listed on Annex A hereto.

 

70


SCHEDULE 8.13(d)

Annex A

[See attachment]

 

71


Surety Report (by Client/Surety)

 

   

Bond No.

 

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation
Provision

     

Bond
Amount

  Premium     Replacing
Bond No.
    Replaced By
Bond No.
 

AmSurg Corp.

                   

Active Bonds

                   
 

Western Surety Company

               
 

62564367

  FL   11/2/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      11/2/2017       Requested By:   Monique Crawford   
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 814 S. Washington Avenue, Titusville, FL 32780-2406    
 

62829917

  FL   6/29/2016   Continuous Until Cancelled/Released   60 Days NOC     $50,000.00   $ 375.00        N/A        N/A   
      6/29/2017       Requested By:   Thadius Sankey   
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1900 Don Wickman Road, Clermont, FL 34711-1979    
 

62829920

  FL   6/29/2016   Continuous Until Cancelled/Released   60 Days NOC     $50,000.00   $ 375.00        N/A        N/A   
      6/29/2017       Requested By:   Thadius Sankey   
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1800 Oakley Seaver Drive, Clermont, FL 34711-1916    
 

62829923

  FL   6/29/2016   Continuous Until Cancelled/Released   60 Days NOC     $50,000.00   $ 375.00        N/A        N/A   
      6/29/2017       Requested By:   Thadius Sankey   
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 2040 Oakley Seaver Drive, Suite 100, Clermont, FL 34711-1962     

 

 

Tuesday, November 15, 2016    Page 1 of 8

 

LOGO


   

Bond No.

 

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation
Provision

     

Bond
Amount

  Premium     Replacing
Bond No.
    Replaced By
Bond No.
 
 

62865556

  FL   8/2/2016   Continuous Until Cancelled/Released   60 Days NOC     $50,000.00   $ 375.00        N/A        N/A   
      8/2/2017       Requested By:   Thadius Sankey   
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1600 Southeast 17th Street, Ocala, FL 34471-4606    
 

62879191

  FL   8/22/2016   Continuous Until Cancelled/Released   60 Days NOC     $50,000.00   $ 375.00        N/A        N/A   
      8/22/2016       Requested By:   Thadius Sankey   
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 2550 S Douglas Road, Coral Gables, FL 33134-6104    
 

62904899

  FL   9/9/2016   Continuous Until Cancelled/Released   60 Days NOC     $50,000.00   $ 375.00        N/A        N/A   
      9/9/2017       Requested By:   Thadius Sankey   
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1309 N Flagler Dr. , West Palm Beach, FL 33401-3406    
 

69717160

  FL   5/22/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      5/22/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 60 Memorial Medical Pkwy Palm Coast, FL 32164    
 

70273067

  FL   3/26/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      3/26/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 10101 Forest Hill Blvd, Wellington, FL 33414    

 

 

Tuesday, November 15, 2016    Page 2 of 8

 

LOGO


   

Bond No.

 

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation
Provision

     

Bond
Amount

  Premium     Replacing
Bond No.
    Replaced By
Bond No.
 
 

70289838

  FL   5/1/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      5/1/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 13001 Southern Blvd, Loxahatchee, FL 33470    
 

70293106

  FL   5/7/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      5/7/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 12961 Palms West Dr., Loxahatchee, FL 33470    
 

70685144

  FL   3/18/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      3/18/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1150 N 35th Ave #445, Hollywood, FL 33021-5430    
 

70776204

  FL   8/14/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      8/14/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 9100 SW 87th Avenue, Miami, FL 33176    
 

70825184

  FL   11/2/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      11/2/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 21 Hospital Drive, Suite 220, Palm Coast, FL 32164    

 

 

Tuesday, November 15, 2016    Page 3 of 8

 

LOGO


   

Bond No.

 

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation
Provision

     

Bond
Amount

  Premium     Replacing
Bond No.
    Replaced By
Bond No.
 
 

70881265

  FL   3/15/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      3/15/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1395 S State Rd 7 #100, Wellington, FL 33414    
 

71124273

  FL   7/1/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      7/1/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1005 Joe DiMaggio Dr., Hollywood, FL 33021    
 

71158325

  FL   9/30/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      9/30/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 502 West Highland Blvd, Inverness, FL 34952    
 

71430157

  FL   6/20/2016   Continuous Until Cancelled/Released   60 days NOC     $50,000.00   $ 375.00        N/A        N/A   
      6/20/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                     
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA) Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1613 N Harrison Pkwy, #200, Sunrise, FL 33323    

 

RIDERS

   Effective
Date
   Sign/Seal
Date
  

Rider Description

   Increased-Decreased By     

Return-Addl

Premium

   11/14/2014    10/8/2014    Bond cancelled per Monique Crawford    $ 0.00      

Add’l/Return Premium, if any, included above

   6/20/2014    11/10/2014    Bond reinstated per Monique Crawford    $ 0.00      

Add’l/Return Premium, if any, included above

 

 

Tuesday, November 15, 2016    Page 4 of 8

 

LOGO


   

Bond No.

 

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation
Provision

      Bond
Amount
    Premium     Replacing
Bond No.
  Replaced By
Bond No.
 

71438883

  FL   7/25/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      7/25/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 8383 N. Davis Hwy. Pensacola, FL 32514
 

71438889

  FL   7/25/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      7/25/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1431 S. W.1st Avenue, Ocala, FL 34471
 

71438892

  FL   7/25/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      7/25/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp. Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 4600 S. W. 46th Ct., Ocala, FL 34474
 

71439894

  FL   7/25/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      7/25/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1000 Mar-Walt Dr., Fort Walton Beach, FL 32547
 

71467292

  FL   10/11/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      10/11/2017       Requested By:        
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 95 Bulldog Blvd., Ste. 104, Melbourne, FL 32901

 

 

Tuesday, November 15, 2016    Page 5 of 8

 

LOGO


   

Bond No.

 

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation
Provision

      Bond
Amount
    Premium     Replacing
Bond No.
  Replaced By
Bond No.
 

71473854

  FL   11/1/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      11/1/2017       Requested By:
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Heatlhcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 3201 South Tamiami Trail, Sarasota, FL 34239
 

71492069

  FL   1/1/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      1/1/2017       Requested By:
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 701 6th Street South Saint Petersburg, FL 33701
 

71492097

  FL   1/1/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      1/1/2017       Requested By:
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 603 7th Street South Saint Petersburg, FL 33701
 

71588213

  FL   10/1/2016   Continuous Until Cancelled/Released   60 Days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      10/1/2017       Requested By: Monique Crawford
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1401 West Seminole Blvd., Sanford, FL 32771 Seminole County
 

71590690

  FL   11/1/2016   Continuous Until Cancelled/Released   60 Days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      11/1/2017       Requested By: Monique Crawford
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

   

Medicaid Provider Surety Bond Address: 1041 Dunlawton Avenue, Port Orange, FL 32127

Volusia County

 

 

Tuesday, November 15, 2016    Page 6 of 8

 

LOGO


   

Bond No.

 

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation
Provision

      Bond
Amount
    Premium     Replacing
Bond No.
  Replaced By
Bond No.
 

71590694

  FL   11/1/2016   Continuous Until Cancelled/Released   60 Days NOC     $ 50,000.00      $ 375.00      N/A   N/A
      11/1/2017       Requested By: Monique Crawford
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 303 N. Clyde Morris Blvd., Daytona Beach, FL 32114 Volusia County
 

71623140

  FL   2/1/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 0.00      N/A   N/A
      2/1/2017       Requested By: Monique Crawford
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 449 W 23rd Street, Panama City, FL 32405
 

71663111

  FL   5/1/2016   Continuous Until Cancelled/Released   60 days NOC     $ 50,000.00      $ 375.00       
      5/1/2017       Requested By: Monique Crawford
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 6110 SW 70th Street, South Miami, FL 33143
 

71676654

  FL   6/29/2016   Continuous Until Cancelled/Released   60 Days NOC     $ 50,000.00      $ 375.00       
      6/29/2017       Requested By: Monique Crawford
   

Principal

         

Obligee

         

Description

                   
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 4500 Newberry Road, Gainesville, FL 32607
 

71683071

  FL   7/1/2016   Continuous Until Cancelled/Released   60 Days NOC     $ 50,000.00      $ 375.00       
      7/1/2017       Requested By: Monique Crawford

 

 

Tuesday, November 15, 2016    Page 7 of 8

 

LOGO


   

Bond No.

 

State

 

Eff Date

Exp Date

 

Renewal Type

 

Cancellation
Provision

      Bond
Amount
    Premium     Replacing
Bond No.
    Replaced By
Bond No.
 
   

Principal

         

Obligee

         

Description

                       
 

Sheridan Healthcorp, Inc.

     

State of Florida, Agency for Health Care Administration (AHCA)

Filed with: Florida Agency for Healthcare Administration

Long Term Care Unit

2727 Mahan Dr., Mail Stop MS 33

Tallahassee, FL 32308-

    Medicaid Provider Surety Bond Address: 1200 37th Street, Vero Beach, FL 32960    
 

Total for Western Surety Company

            $ 1,650,000.00      $ 12,000.00       

Total for Active Bonds

              $ 1,650,000.00      $ 12,000.00       

Total for AmSurg Corp.

              $ 1,650,000.00      $ 12,000.00       

 

 

Tuesday, November 15, 2016    Page 8 of 8

 

LOGO


SCHEDULE 8.14(b)

Existing Liens

 

Debtor

  

Jurisdiction

  

Secured Party /

Other Obligee

  

Collateral /

Amount

  

File Date

  

File Number

Air Ambulance Specialists, Inc.    Colorado    CapitalSource Bank    Equipment   

12/7/12

1/11/13

  

20122075348

20132004029

American Medical Response Ambulance Service, Inc.    Delaware    Var Resources, LLC.    Equipment    12/6/13    2013 4951852
American Medical Response of Southern California    US District Court    National Emergency Medical Services Association    Judgment    8/1/11    Case No. 2:10-cv-09672-JHN-MANx
American Medical Response West    US District Court    National Emergency Medical Services Association    Judgment    1/31/12    Case No. 1:11-CV-00077-AWI-GSA
Bowers Companies, Inc.    California    Timepayment Corporation    Equipment    10/15/12    12-7333728329
Gem City Home Care, LLC.    Ohio    U.S. Bank Equipment Finance, A Division of U.S. Bank National Association    Equipment    2/13/13    OH00164820671
Gem City Home Care, LLC.    Ohio    U.S. Bank Equipment Finance, A Division of U.S. Bank National Association    Equipment    2/22/13    OH00164996389
Guardian Healthcare Holdings, Inc.    Delaware    Ricoh USA Inc    Equipment    1/18/13    2013 0253105
Guardian Health Care, Inc.    Travis County District Court    Texas State Board of Nurse Examiners    Judgment    4/5/07    Cause No. D-1-GN-06-003773
Medstat Ems, Inc.    Mississippi    Dell Financial Services L.L.C.    Equipment   

12/30/08

9/17/13

  

20080282957E

20131141453B

Medstat Ems, Inc.    Mississippi    Dell Financial Services L.L.C.    Equipment   

2/1/11

1/13/16

  

20110309857A

20161870135B

Physicians & Surgeons Ambulance Service, Inc.    Summit County Recorder, OH    Ohio Department of Job and Family Services    Tax    6/6/15    UC130106
Professional Medical Transport, Inc.    Maricopa County Superior Court, AZ    Virgil Nephew    Judgment    8/7/15    TJ2015-005165
Randle Eastern Ambulance Service, Inc.    Florida    State of Florida, Department of Revenue    Judgment    10/5/16    J16000658694

 

72


SCHEDULE 8.14(b)

 

Debtor

  

Jurisdiction

  

Secured Party /

Other Obligee

  

Collateral /

Amount

  

File Date

  

File Number

Rose Radiology, LLC    US District Court    Lisa Corbett and Avant & Mitchell, P.C.    Judgment    10/26/11    Case No. 1:10-cv-00773-SS
Rural/Metro Corporation    Delaware    CCA Financial, LLC    All personal property subject to the Master Lease Agreement dated 12/14/05   

12/15/05

10/29/15

  

5389321 2

20155217186

Rural/Metro Corporation    Delaware    CCA Financial, LLC    All personal property subject to the Master Lease Agreement dated 1/14/10   

1/25/10

12/1/14

  

2010 0255665

2014 4821732

Rural/Metro Corporation    Delaware    Qwest Communications Company, LLC    Equipment    12/15/11    2011 4828433
Rural/Metro Corporation    Delaware    Team Financial Group, Inc.    Equipment    6/11/14    2014 2264208
Rural/Metro of Northern California, Inc.    Delaware    BMO Harris Bank National Association    Lease   

6/10/13

7/29/13

  

2013 2290295

2013 3034619

Rural/Metro Operating Company, LLC    Delaware    Northwest Savings Bank    Equipment   

6/6/12

12/10/12

  

2012 2160838

2012 4778314

Rural/Metro Operating Company, LLC    Delaware    U.S. Bank Equipment Finance, A Division of U.S. Bank National Association    Equipment    3/1/13    2013 0813353
Rural/Metro Operating Company, LLC    Delaware    U.S. Bank Equipment Finance, A Division of U.S. Bank National Association    Equipment    3/1/13    2013 0814989
SW General, Inc.    Maricopa County Recorder, AZ    Steve M. Tidmore, Tidmore Law Offices, L.L.P. and Daniel S. Ho, Law Offices of Ho & Greene, P.L.L.C.    Judgment    12/5/13    20131038640
T.M.S. Management Group, Inc.    Florida    Dell Financial Services L.L.C.    Equipment    1/18/13    201308276670
Troup County Emergency Medical Services, Inc.    Georgia    Bank of America, N.A.    Equipment    2/14/05    033-2005-001450
North Florida Perinatal Associates, Inc.    Florida Secretary of State    General Electric Capital Corporation    Equipment    3/26/14    201401000175

 

73


SCHEDULE 8.14(b)

 

Debtor

  

Jurisdiction

  

Secured Party /

Other Obligee

  

Collateral /

Amount

  

File Date

  

File Number

Physician Office Partners, Inc.    Kansas Secretary of State    Sumner Group, Inc.    Equipment   

5/13/13

6/5/13

8/10/15

2/16/16

4/11/16

9/20/16

  

100368953

100456071

104411964

106478102

107364566

109241481

Physician Office Partners, Inc.    Kansas Secretary of State    Toshiba Financial Services    Equipment    1/4/16    72119220
Sheridan Healthcorp, Inc.    Florida Secured Transaction Registry    Xerox Financial Services    Equipment   

7/25/14

2/26/15

11/17/15

12/21/15

4/29/16

9/23/16

  

201401881147

201503157804

20150573888X

201506038032

20160746455X

201608948429

Sheridan Healthcorp, Inc.    Florida Secured Transaction Registry    General Electric Capital Corporation    Equipment   

6/29/15

6/29/15

6/29/15

6/29/15

6/29/15

6/30/15

6/30/15

6/30/15

6/30/15

8/19/15

9/29/15

11/5/15

11/16/15

  

201504257144

201504257438

201504257489

201504257527

201504266119

20150427572X

201504275738

201504276076

201504273581

201504754156

201505166053

201505643293

201505724811

Sheridan Healthcorp, Inc.    Florida Secured Transaction Registry    GE HFS, LLC    Equipment    8/5/16    201608377731
Valley Anesthesiology Consultants, Ltd.    Arizona Secretary of State    CIT Finance, LLC    Equipment    7/10/12    201216984418
Valley Anesthesiology Consultants, Ltd.    Arizona Secretary of State    Cisco Systems Capital CRP    Equipment    12/14/12    201217201232
Valley Anesthesiology Consultants, Ltd.    Arizona Secretary of State    GE HFS, LLC    Equipment   

5/30/13

5/30/13

11/24/14

  

201317413236

201317413329

201400364850

Valley Anesthesiology Consultants, Ltd.    Arizona Secretary of State    Everbank Commercial Finance, Inc.    Equipment    5/12/15    201500164137

 

74


SCHEDULE 8.14(b)

 

Debtor

  

Jurisdiction

  

Secured Party /

Other Obligee

  

Collateral /

Amount

  

File Date

  

File Number

AmSurg Corp. (predecessor by merger to Envision Healthcare Corporation)    Tennessee Secretary of State    Kingsbridge Holdings, LLC    Equipment    10/4/13    420535029

Liens securing debt listed on Schedule 1.1(a).

Pledge, Collateral Assignment and Control Agreement dated November 30, 2016, among AmSurg Corp., Citibank, N.A., as Secured Party, and Citibank, N.A., as Collateral Agent, which collateralizes continuing letter of credit obligations.

 

75

Exhibit 10.13

INDEMNIFICATION AGREEMENT

Indemnification Agreement (this “ Agreement ”), dated as of December 1, 2016, by and between Envision Healthcare Corporation, a Delaware corporation (the “ Corporation ”), and the undersigned director of the Corporation (“ Indemnitee ”).

WHEREAS, qualified persons are reluctant to serve companies as directors unless they are provided with broad indemnification and insurance against claims arising out of their service to and activities on behalf of the companies; and

WHEREAS, the Corporation has determined that attracting and retaining such persons is in the best interests of the Corporation and its stockholders and that it is reasonable, prudent and necessary for the Corporation to indemnify such persons to the fullest extent permitted by applicable law and to provide reasonable assurance regarding insurance;

NOW, THEREFORE, the Corporation and Indemnitee hereby agree as follows:

1. Defined Terms; Construction.

(a) Defined Terms . As used in this Agreement, the following terms shall have the following meanings:

Affiliate ” means, with respect to any person, any other person directly or indirectly controlling, controlled by or under common control with such first person. For these purposes, “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a person by reason of ownership of voting securities, by contract or otherwise.

Change in Control ” means, and shall be deemed to have occurred if, on or after the date of this Agreement, ( i ) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than ( A ) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any of its subsidiaries acting in such capacity, or ( B ) a corporation owned directly or indirectly by the stockholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Corporation representing more than 50% of the total voting power represented by the Corporation’s then outstanding Voting Securities, ( ii ) during any period of two consecutive years commencing from and after the date hereof, individuals who at the beginning of such period constitute the board of directors of the Corporation and any new director whose election by the board of directors of the Corporation or nomination for election by the Corporation’s stockholders was approved by a vote of at least two-thirds


(2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof, ( iii ) the stockholders of the Corporation approve a merger or consolidation of the Corporation with any other corporation other than a merger or consolidation that would result in the Voting Securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) more than 50% of the total voting power represented by the Voting Securities of the Corporation or such surviving entity outstanding immediately after such merger or consolidation, ( iv ) the stockholders of the Corporation approve a plan of complete liquidation of the Corporation or an agreement for the sale or disposition by the Corporation of (in one transaction or a series of related transactions) all or substantially all of its assets or ( v ) the Corporation shall file or have filed against it, and such filing shall not be dismissed, any bankruptcy, insolvency or dissolution proceedings, or a trustee, administrator or creditors committee shall be appointed to manage or supervise the affairs of the Corporation.

Corporate Status ” means the status of a person who is or was a member of the Governing Body (or of any committee thereof), officer, employee or agent of the Corporation or any of its subsidiaries, or of any predecessor thereof, or is or was serving at the request of the Corporation as a member of the Governing Body (or of any committee thereof), officer, employee, manager or agent, of another entity, or of any predecessor thereof, including service with respect to an employee benefit plan.

Determination ” means a determination that either ( x ) there is a reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a particular standard of conduct (a “ Favorable Determination ”) or ( y ) there is no reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee failed to meet a particular standard of conduct (an “ Adverse Determination ”). An Adverse Determination shall include the decision that a Determination was required in connection with indemnification and the decision as to the applicable standard of conduct.

DGCL ” means the General Corporation Law of the State of Delaware, as amended from time to time.

Expenses ” means all attorneys’ fees and expenses, retainers, court, arbitration and mediation costs, transcript costs, fees and expenses of experts, witnesses and public relations consultants, bonds, costs of collecting and producing documents, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, appealing or otherwise participating in a Proceeding.

 

2


Governing Body ” means in the case of a corporation the board of directors, in the case of a limited liability company, the board of managers or similar body and in the case of any other form of entity any similar governing body.

Independent Legal Counsel ” means an attorney or firm of attorneys competent to render an opinion under the applicable law, selected in accordance with the provisions of Section 6(e), who has not performed any services for the Corporation or any of its subsidiaries or for Indemnitee (other than in connection with a Determination or a determination regarding the rights of indemnitees under other indemnity agreements) within the past five years.

Proceeding ” means a threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation a claim, demand, discovery request, formal or informal investigation, inquiry, administrative hearing, arbitration or other form of alternative dispute resolution, including an appeal from any of the foregoing.

Voting Securities ” means any securities of the Corporation that vote generally in the election of members of the Governing Body of the Corporation.

(b) Construction . For purposes of this Agreement,

(i) References to the Corporation and its “subsidiaries” shall include any corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise that before or after the date of this Agreement is party to a merger or consolidation with the Corporation or any such subsidiary or that is a successor to the Corporation as contemplated by
Section 9(e) (whether or not such successor has executed and delivered the written agreement contemplated by Section 9(e)).

(ii) References to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan.

(iii) References to a “witness” in connection with a Proceeding shall include any interviewee or person called upon to produce documents in connection with such Proceeding.

2. Agreement to Serve.

Indemnitee agrees to serve as a member of the Governing Body of the Corporation or one or more of its subsidiaries and in such other capacities as Indemnitee

 

3


may serve at the request of the Corporation from time to time, and by the execution of this Agreement the Corporation confirms its request that Indemnitee so serve. Indemnitee shall be entitled to resign or otherwise terminate such service with immediate effect at any time, and neither such resignation or termination nor the length of such service shall affect Indemnitee’s rights under this Agreement. This Agreement shall not constitute an employment agreement, supersede any employment agreement to which Indemnitee is a party or create any right of Indemnitee to continued employment or appointment.

3. Indemnification.

(a) General Indemnification . Subject to Section 3(e), the Corporation shall indemnify Indemnitee, to the fullest extent permitted by applicable law in effect on the date hereof or as amended to increase the scope of permitted indemnification, against ( i ) Expenses, losses, liabilities, judgments, fines, penalties and amounts paid in settlement (including all interest, taxes, assessments and other charges in connection therewith) actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding (other than any Proceeding by or in the right of the Corporation) in which Indemnitee was or is a party or is threatened to be made a party by reason of the Indemnitee’s Corporate Status and ( ii ) Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding by or in the right of the Company in which Indemnitee was or is a party or is threatened to be made a party by reason of the Indemnitee’s Corporate Status. Indemnitee shall have the right to choose counsel of his or her own choice.

(b) Additional Indemnification Regarding Expenses . Without limiting the foregoing, in the event any Proceeding is initiated by Indemnitee or by the Corporation, any of its subsidiaries or any other person to enforce or interpret this Agreement or any rights of Indemnitee to indemnification or advancement of Expenses (or related obligations of Indemnitee) under the Corporation or any such subsidiary’s certificate of incorporation, bylaws or other organizational agreement or instrument, any other agreement to which Indemnitee and the Corporation or any of its subsidiaries are party, any vote of stockholders, directors, members or managers of the Corporation or any of its subsidiaries, the DGCL, any other applicable law or any liability insurance policy, to the fullest extent allowable under applicable law, the Corporation shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding. Indemnitee shall be required to reimburse the Corporation in the event that a final judicial determination is made that any such action brought by Indemnitee was frivolous or made in bad faith.

(c) Partial Indemnification . If Indemnitee is entitled under any provision of this Agreement to indemnification by the Corporation for a portion of any

 

4


Expenses, losses, liabilities, judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred by Indemnitee, but not for the total amount thereof, the Corporation shall nevertheless indemnify Indemnitee for such portion.

(d) Non-exclusivity; Other Rights to Indemnification . The indemnification and advancement rights provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may now or in the future be entitled under the certificate of incorporation, bylaws or other organizational agreement or instrument of the Corporation or any of its subsidiaries, any other agreement, any vote of stockholders or directors, the DGCL, any other applicable law or any liability insurance policy.

(e) Exceptions . Any other provision herein to the contrary notwithstanding, the Corporation shall not be obligated under this Agreement to indemnify Indemnitee:

(i) for Expenses incurred in connection with the prosecution of affirmative claims for damages in Proceedings initiated or brought voluntarily by Indemnitee and not by way of defense, application for declaratory relief, counterclaim or crossclaim, except ( x ) as contemplated by Section 3(b), ( y ) in specific cases if the Governing Body of the Corporation has approved the initiation or bringing of such Proceeding, and ( z ) as may be required by law;

(ii) for ( y ) an accounting of profits arising from the purchase or sale by Indemnitee of securities of the Corporation in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), or any similar successor statute, or ( z ) any reimbursement of the Corporation by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Corporation, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Corporation pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “ Sarbanes-Oxley Act ”) or Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the payment to the Corporation of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act);

(iii) in connection with Proceedings involving the enforcement of non-compete and/or non-disclosure agreements or the non-compete and/or non-disclosure provisions of employment, consulting or similar agreements the Indemnitee may be a party to with the Corporation, or any subsidiary of the Corporation or any other applicable foreign or domestic corporation, partnership, joint venture, trust or other enterprise, if any; and

 

5


(iv) if and to the extent that it should ultimately be determined by a court of competent jurisdiction in a final and non-appealable decision that Indemnitee acted in bad faith and not in a manner which he or she reasonably believed to be in, or not opposed to, the best interests of the Corporation, and, with respect to Proceedings by or in the right of the Corporation, if applicable law so provides, against Expenses made in respect of any such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Corporation unless and to the extent that the Court of Chancery of the State of Delaware shall determine that such indemnification may be made, and, with respect to any criminal action or proceeding, Indemnitee had reasonable cause to believe that his or her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed not to be in or opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.

(f) Subrogation . In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute such documents and do such acts as the Corporation may reasonably request to secure such rights and to enable the Corporation effectively to bring suit to enforce such rights.

4. Contribution.

(a) The Corporation hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Corporation, other than Indemnitee, who may be jointly liable with Indemnitee.

(b) To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Corporation, in lieu of indemnifying Indemnitee, shall contribute to the amount actually and reasonably incurred by Indemnitee, whether for Expenses, judgments, fines, penalties, ERISA excise taxes or amounts paid or to be paid in settlement, in connection with any Proceeding, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect ( i ) the relative benefits received by the Corporation and Indemnitee as a result of the event(s) or transaction(s) giving cause to such Proceeding and/or ( ii ) the relative fault of the Corporation (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) or transaction(s); provided, that, without limiting the generality of the foregoing, such contribution shall not be required when the indemnification provided for in this Agreement is unavailable due to ( y ) the failure of Indemnitee to meet the applicable standard of conduct, or ( z ) any limitation on indemnification set forth in Section 3(e) hereof.

 

6


5. Advancement of Expenses.

The Corporation shall pay all Expenses actually and reasonably incurred by Indemnitee in connection with any Proceeding in which Indemnitee was or is a party or is threatened to be made a party by reason of the Indemnitee’s Corporate Status, other than a Proceeding initiated by Indemnitee for which the Corporation would not be obligated to indemnify Indemnitee pursuant to Section 3(e)(i), in advance of the final disposition of such Proceeding upon written request of the Indemnitee and delivery of an undertaking by the Indemnitee to repay such Expenses if it shall ultimately be determined that Indemnitee is not entitled to be indemnified for such Expenses, and without regard to whether Indemnitee will ultimately be entitled to be indemnified for such Expenses and without regard to whether an Adverse Determination has been made, except as contemplated by the last sentence of Section 6(f). Indemnitee shall repay such amounts advanced if it shall ultimately be determined by a court of competent jurisdiction in a final and non-appealable decision that Indemnitee is not entitled to be indemnified by the Corporation for such Expenses. Such repayment obligation shall be unsecured and shall not bear interest. The Corporation shall not impose on Indemnitee additional conditions to advancement or require from Indemnitee additional undertakings regarding repayment.

6. Indemnification Procedure.

(a) Notice of Proceeding; Cooperation . Indemnitee shall give the Corporation notice in writing as soon as practicable of any Proceeding for which indemnification will or could be sought under this Agreement; provided that any failure or delay in giving such notice shall not relieve the Corporation of its obligations under this Agreement unless and to the extent that ( i ) the Corporation is a party to or aware of such Proceeding and ( ii ) the Corporation is prejudiced by such failure (and, in that event, only to the proven extent of the amount of such purported prejudice, whether money damages or injunctive relief).

(b) Settlement . The Corporation will not, without the prior written consent of Indemnitee, which may be provided or withheld in Indemnitee’s sole discretion, effect any settlement of any Proceeding against Indemnitee or which could have been brought against Indemnitee unless such settlement solely involves the payment of money by persons other than Indemnitee and includes an unconditional release of Indemnitee from all liability on any matters that are the subject of such Proceeding and an acknowledgment that Indemnitee denies all wrongdoing in connection with such matters. The Corporation shall not be obligated to indemnify Indemnitee against amounts paid in settlement of a Proceeding against Indemnitee if such settlement is effected by Indemnitee without the Corporation’s prior written consent, unless consent is unreasonably withheld.

 

7


(c) Request for Payment; Timing of Payment . To obtain indemnification payments or advances under this Agreement, Indemnitee shall submit to the Corporation a written request therefor, together with such invoices or other supporting information as may be reasonably requested by the Corporation and reasonably available to Indemnitee and an undertaking by the Indemnitee to repay such amount if it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Corporation. The Corporation shall make indemnification payments to Indemnitee no later than 90 days, and advances to Indemnitee no later than 20 days, after receipt of the written request of Indemnitee.

(d) Determination . The Corporation intends that Indemnitee shall be indemnified to the fullest extent permitted by law as provided in Section 3 and that no Determination shall be required in connection with such indemnification. In no event shall a Determination be required in connection with advancement of Expenses pursuant to Section 5 or in connection with indemnification for Expenses incurred as a witness or incurred in connection with any Proceeding or portion thereof with respect to which Indemnitee has been successful on the merits or otherwise (including, without limitation, settlement of any Proceeding with or without payment of money or other consideration or the termination of any issue or matter in such Proceeding by dismissal, with or without prejudice). Any decision that a Determination is required by law in connection with any other indemnification of Indemnitee, and any such Determination, shall be made within 30 days after receipt of Indemnitee’s written request for indemnification, as follows:

(i) If no Change in Control has occurred, ( w ) by a majority vote of the members of the Governing Body of the Corporation who are not parties to such Proceeding, even though less than a quorum, with the advice of Independent Legal Counsel, or ( x ) by a committee of such members designated by majority vote of such members, even though less than a quorum, with the advice of Independent Legal Counsel, or ( y ) if there are no such members, or if such members so direct, by Independent Legal Counsel in a written opinion to the Corporation and Indemnitee, or ( z ) by the stockholders of the Corporation.

(ii) If a Change in Control has occurred, by Independent Legal Counsel in a written opinion to the Corporation and Indemnitee.

The Corporation shall pay all Expenses incurred by Indemnitee in connection with a Determination.

(e) Independent Legal Counsel . If there has not been a Change in Control, Independent Legal Counsel shall be selected by the Governing Body of the

 

8


Corporation and approved by Indemnitee (which approval shall not be unreasonably withheld or delayed). If there has been a Change in Control, Independent Legal Counsel shall be selected by Indemnitee and approved by the Corporation (which approval shall not be unreasonably withheld or delayed). The Corporation shall pay the fees and expenses of Independent Legal Counsel and indemnify Independent Legal Counsel against any and all expenses (including attorneys’ fees), claims, liabilities and damages arising out of or relating to its engagement.

(f) Consequences of Determination; Remedies of Indemnitee . The Corporation shall be bound by and shall have no right to challenge a Favorable Determination. If an Adverse Determination is made, or if for any other reason the Corporation does not make timely indemnification payments or advances of Expenses, Indemnitee shall have the right to commence a Proceeding before a court of competent jurisdiction to challenge such Adverse Determination and/or to require the Corporation to make such payments or advances (and the Corporation shall have the right to defend its position in such Proceeding and to appeal any adverse judgment in such Proceeding). Indemnitee shall be entitled to be indemnified for all Expenses incurred in connection with such a Proceeding in accordance with Section 3(b) and to have such Expenses advanced by the Corporation in accordance with Section 5. If Indemnitee fails to timely challenge an Adverse Determination, or if Indemnitee challenges an Adverse Determination and such Adverse Determination has been upheld by a court of competent jurisdiction in a final and non-appealable decision, then the Corporation shall not be obligated to indemnify or advance Expenses to Indemnitee under this Agreement.

(g) Presumptions; Burden and Standard of Proof . In connection with any Determination, or any review of any Determination, by any person, including a court:

(i) It shall be a presumption that a Determination is not required.

(ii) It shall be a presumption that Indemnitee has met the applicable standard of conduct and that indemnification of Indemnitee is proper in the circumstances.

(iii) The burden of proof shall be on the Corporation to overcome the presumptions set forth in the preceding clauses (i) and (ii), and each such presumption shall only be overcome if the Corporation establishes that there is no reasonable basis to support it.

(iv) The termination of any Proceeding by judgment, order, finding, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere , or its equivalent, shall not create a presumption that indemnification is not proper or that Indemnitee did not meet the applicable standard of conduct or that a court has determined that indemnification is not permitted by this Agreement or otherwise.

 

9


(v) Neither the failure of any person or persons to have made a Determination nor an Adverse Determination by any person or persons shall be a defense to Indemnitee’s claim or create a presumption that Indemnitee did not meet the applicable standard of conduct, and any Proceeding commenced by Indemnitee pursuant to Section 6(f), other than one to enforce a Favorable Determination, shall be de novo with respect to all determinations of fact and law.

7. Directors and Officers Liability Insurance.

(a) Maintenance of Insurance . So long as the Corporation or any of its subsidiaries maintains directors and officers liability insurance for any managers, directors, officers, employees or agents of any such person, the Corporation shall ensure that Indemnitee is covered by such insurance in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Corporation and its subsidiaries’ then current managers, directors and officers. If at any time ( i ) such insurance ceases to cover acts and omissions occurring during all or any part of the period of Indemnitee’s Corporate Status or ( ii ) the Corporation or any of its subsidiaries maintains any such insurance, the Corporation shall ensure that Indemnitee is covered, with respect to acts or omissions prior to such time, for at least six years (or such shorter period as is available on commercially reasonable terms) from such time, by other directors and officers liability insurance, in amounts and on terms (including the portion of the period of Indemnitee’s Corporate Status covered) no less favorable to Indemnitee than the amounts and terms of the liability insurance maintained on the date hereof.

(b) Notice to Insurers . Upon receipt of notice of a Proceeding pursuant to Section 6(a), the Corporation shall give or cause to be given prompt notice of such Proceeding to all insurers providing liability insurance in accordance with the procedures set forth in all applicable or potentially applicable policies. The Corporation shall thereafter take all necessary action to cause such insurers to pay all amounts payable in accordance with the terms of such policies, unless the Corporation shall have paid in full all indemnification, advancement and other obligations payable to Indemnitee under this Agreement.

8. Exculpation, etc.

(a) Limitation of Liability . Indemnitee shall not be personally liable to the Corporation or any of its subsidiaries or to the stockholders of the Corporation or any such subsidiary for monetary damages for breach of fiduciary duty as a director of the Corporation or member of the Governing Body of any such subsidiary; provided ,

 

10


however , that the foregoing shall not eliminate or limit the liability of Indemnitee ( i ) for any breach of Indemnitee’s duty of loyalty to the Corporation or such a subsidiary or the stockholders thereof; ( ii ) for acts or omissions not in good faith, or which involve intentional misconduct or a knowing violation of the law; ( iii ) under Section 174 of the DGCL or any similar provision of other applicable law; or ( iv ) for any transaction from which Indemnitee derived an improper personal benefit as is determined by a court of competent jurisdiction in a final, non-appealable action. If the DGCL or such other applicable law shall be amended to permit further elimination or limitation of the personal liability of directors or members of Governing Bodies, then the liability of Indemnitee shall, automatically, without any further action, be eliminated or limited to the fullest extent permitted by the DGCL or such other applicable law as so amended.

(b) Indemnitee shall not be liable to the Corporation, its stockholders, or its Affiliates for any action or omission ( i ) taken in good faith or omitted to be taken in good faith or ( ii ) which the Indemnitee thought was in the interest of the Corporation. Indemnitee shall have the benefit of the business judgment rule.

(c) Period of Limitations . No legal action shall be brought and no cause of action shall be asserted by or in the right of the Corporation or any of its subsidiaries against Indemnitee or Indemnitee’s estate, spouses, heirs, executors, personal or legal representatives, administrators or assigns after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Corporation or any of its subsidiaries shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

9. Miscellaneous.

(a) Non-Circumvention . The Corporation shall not seek or agree to any order of any court or other governmental authority that would prohibit or otherwise interfere, and shall not take or fail to take any other action if such action or failure would reasonably be expected to have the effect of prohibiting or otherwise interfering, with the performance of the Corporation’s indemnification, advancement or other obligations under this Agreement.

(b) Severability . If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: ( i ) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; ( ii ) such provision or

 

11


provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and ( iii ) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

(c) Notices . All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given ( i ) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, ( ii ) on the first business day following the date of dispatch if delivered by a recognized next-day courier service or ( iii ) on the third business day following the date of mailing if delivered by domestic registered or certified mail, properly addressed, or on the fifth business day following the date of mailing if sent by airmail from a country outside of North America, to Indemnitee at the address shown on the signature page of this Agreement, to the Corporation at the address shown on the signature page of this Agreement, or in either case as subsequently modified by written notice.

(d) Amendment and Termination . No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is in writing signed by all the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.

(e) Successors and Assigns . This Agreement ( i ) shall be binding upon the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Corporation) and ( ii ) shall inure to the benefit of and be enforceable by ( A ) the parties hereto, ( B ) any such successors and assigns, ( C ) any heirs, executors, devisees, administrators and other legal representatives of Indemnitee and ( D ) to the extent provided in Section 3(d) above, any express third party beneficiary hereof.

(f) Duration . All agreements and obligations of the Corporation contained herein shall continue during the period that Indemnitee is a director or officer of the Corporation (or is serving at the request of the Corporation as a director, officer, employee, member, trustee or agent of another company) as well as for any act performed or omitted to be performed by the Indemnitee in connection with or arising out of or relating to the business of the Corporation or its Affiliates and/or by virtue of Indemnitee’s relationship to the Corporation and shall continue thereafter ( i ) so long as Indemnitee may be subject to any possible Proceeding relating to Indemnitee’s Corporate Status (including any rights of appeal thereto) and ( ii ) throughout the pendency of any Proceeding (including any rights of appeal thereto) commenced by Indemnitee to enforce or interpret his or her rights under this Agreement, even if, in either case, he or she may have ceased to serve in such capacity at the time of any such Proceeding.

 

12


(g) Choice of Law; Consent to Jurisdiction . This Agreement shall be governed by and its provisions construed in accordance with the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to be performed entirely within Delaware, without regard to the conflict of law principles thereof. The Corporation and Indemnitee each hereby irrevocably consents to the jurisdiction of the state courts of the State of Delaware for all purposes in connection with any Proceeding which arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be brought only in the state courts of the State of Delaware.

(h) Integration and Entire Agreement . This Agreement sets forth the entire understanding between the parties hereto and supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between the parties hereto, including any existing indemnification agreements relating to membership of a Governing Body of the Corporation; provided that the provisions hereof shall be cumulative of (and for the benefit of Indemnitee) and not supersede the provisions of the certificate of incorporation, bylaws or other organizational agreement or instrument of the Corporation and its subsidiaries, any employment or other agreement, any vote of members, managers, stockholders or directors, the DGCL or other applicable law. To the extent of any conflict between the terms of this Agreement and any other corporate document, the terms most favorable to the Indemnitee shall apply at the election of Indemnitee.

(i) Counterparts . This Agreement may be executed in one or more counterparts (including facsimile counterparts), each of which shall constitute an original.

[Remainder of this page intentionally left blank]

 

13


IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

ENVISION HEALTHCARE CORPORATION
By:  

 

  Name:  
  Title:  
Address:   1A Burton Hills Boulevard
    Nashville, Tennessee 37215

 

AGREED TO AND ACCEPTED:
INDEMNITEE:
By:  

 

  Name:  
  Title:   Director
Address:  

 

14

Exhibit 10.14

CONFIDENTIAL

ENVISION HEALTHCARE HOLDINGS, INC.

SEVERANCE AND RETENTION PLAN

FOR SENIOR MANAGEMENT

Envision Healthcare Holdings, Inc., a Delaware corporation (the “ Company ”), has adopted this Severance and Retention Plan for Senior Management (this “ Plan ”), effective as of the Closing Date, for the benefit of executives and other members of the senior management of the Company and its Subsidiaries (as defined below) who are eligible to participate in this Plan.

ARTICLE I

PURPOSES

The purposes of this Plan are as follows:

1.1 To reinforce and encourage the continued attention and dedication of Participants (as defined below) to their assigned duties during the period between the execution of the Merger Agreement (as defined below) and the Closing Date (as defined below), as well as following the Merger (as defined below);

1.2 To enable and encourage Participants to focus their attention on obtaining the best possible outcome for the Company’s shareholders, without being influenced by their personal concerns regarding the possible impact of the Merger on the security of their jobs and benefits; and

1.3 To provide severance payments and benefits to any Participant who incurs a qualifying termination of employment under the circumstances described herein.

ARTICLE II

DEFINED TERMS

2.1 For purposes of this Plan, the following terms shall have the meanings indicated below:

Base Salary ” means, as to any Participant, the amount the Participant is entitled to receive as annual base salary, in each case without reduction for any pre-tax contributions to benefit plans. Base Salary does not include bonuses, incentives, commissions, overtime pay, shift pay, premium pay, cost of living allowances, perquisites, reimbursed expenses, or income from stock options, stock grants or other incentives awarded under the Equity Plans or otherwise.

Board ” means the Board of Directors of the Company and, as of the Closing Date, the Board of Directors of New Envision.


Cause ” means any of the following:

(a) the Participant’s commission of a crime involving fraud, theft, false statements or other similar acts or commission of any crime that is a felony (or comparable classification in a jurisdiction that does not use these terms);

(b) the Participant’s willful or grossly negligent failure to perform his or her material employment-related duties for the Company and its Subsidiaries;

(c) the Participant’s material violation of any Company policy as then in effect;

(d) the Participant’s engaging in any act or making any public statement that materially impairs, impugns, denigrates, disparages or negatively reflects upon the name, reputation or business interests of the Company or its Subsidiaries;

(e) the Participant’s material breach of any award agreement, employment agreement, or noncompetition, nondisclosure or non-solicitation agreement to which the Participant is a party or by which the Participant is bound; or

(f) the Participant’s engaging in any conduct injurious or detrimental to the Company or any of its Subsidiaries.

Closing Date ” has the meaning ascribed to such term in the Merger Agreement.

Code ” means the Internal Revenue Code of 1986, as amended.

Committee ” means the Compensation Committee of the Board.

Company Group ” means the Company, New Envision and each of their respective Subsidiaries.

Date of Termination ,” means the date on which the Participant’s employment is terminated, subject to the provisions of Section 4.1.

Equity Award ” means each stock option, restricted stock unit or other equity or equity-based compensation award in respect of Shares granted to a Participant under the Equity Plans prior to the Closing Date (including, for the avoidance of doubt, any such awards converted under the terms of Section 2.3 of the Merger Agreement).

Equity Plans ” means the means the Envision Healthcare Holdings, Inc. 2013 Omnibus Incentive Plan, the CDRT Holding Corporation Stock Incentive Plan, as amended, and any other equity-based compensation plan maintained by the Company Group.

ERISA ” means the Employee Retirement Income Security Act of 1974, as amended.

Fair Market Value ” has the meaning ascribed to such term in the applicable Equity Plan.

 

2


Good Reason ” means the occurrence of any one or more of the following events without the Participant’s prior written consent:

(a) a material diminution in the Participant’s duties or responsibilities (including a material diminution in Company or business segment level responsibilities and/or material change in the Participant’s reporting relationship);

(b) a material reduction in the Participant’s Base Salary or annual bonus opportunity; or

(c) a change in the Participant’s principal place of work to a location of more than fifty (50) miles from the Participant’s principal place of work immediately prior to such change in location;

provided , that (x) the Participant provides a Notice of Termination to the Company within ninety (90) days of the initial existence of the facts or circumstances constituting such event, (y) the Company fails to cure such facts or circumstances within thirty (30) days after receipt of such Notice of Termination and (z) the Date of Termination of the Participant occurs no later than ninety (90) days after the expiration of the such cure period; and provided , further , that if a Participant has accepted changes to his or her title, duties, responsibilities, reporting relationship, compensation or other terms of employment in connection with or as a result of the Merger (regardless of whether such changes would otherwise constitute Good Reason), the criteria in subclauses (a)-(c) shall be applied with reference to the Participant’s terms of employment after such changes, not with reference to the Participant’s terms of employment prior to the Merger.

Merger ” means the completion of the transactions contemplated by the Merger Agreement.

Merger Agreement ” means the Agreement and Plan of Merger, dated as of June 15, 2016, by and among the Company, New Amethyst Corp., a Delaware corporation, and AmSurg Corp., a Tennessee corporation.

New Envision ” means, following the Closing Date, Envision Healthcare Corporation, a Delaware corporation.

Notice of Termination ” means a written notice which shall set forth (i) the termination provision in this Plan relied upon, (ii) in reasonable detail, the facts and circumstances claimed to provide a basis for termination of a Participant’s employment under the provision so indicated, and (iii) subject to the terms of Section 4.1, the Date of Termination.

Participant ” means each of the Tier I Participants, the Tier II Participants and the Tier III Participants; provided, that no person shall be a “Participant” under the Terms of this Plan unless he or she has executed and delivered to the Company within fifteen (15) days following the Closing Date the Designation Letter in the form attached hereto as Exhibit A (collectively, the “ Participants ”).

Performance-Vesting Equity Award ” means any Equity Award that is not a Time-Vesting Equity Award. For the avoidance of doubt, a Performance-Vesting Equity Award shall include any Equity Award that is either expressly and exclusively subject to performance-based vesting or a hybrid of time-based vesting and performance-based vesting.

 

3


Post-Closing Protection Period ” means (i) with respect to Tier I Participants and Tier II Participants, the eighteen (18) month period beginning on the Closing Date and (ii) with respect to Tier III Participants, the twelve (12) month period beginning on the Closing Date.

Qualifying Termination ” means a termination of employment with the Company Group with respect to which notice has been given during the applicable Post-Closing Protection Period (or, if such termination occurs in anticipation of the Merger, prior to the Closing Date) either by (i) the Company (other than for Cause) or (ii) a Participant for Good Reason. For purposes of clarification, the termination of a Participant’s employment by reason of the Participant’s death or permanent disability (as determined under the Company’s long-term disability plan) or voluntary termination by Participant other than for Good Reason shall not be deemed a Qualifying Termination.

Separation from Service ” has the meaning set forth in Section 409A of the Code and Treasury Regulation Section 1.409A-1(h)).

Severance Amount ” with respect to a Participant means the sum of (x) the Participant’s Base Salary as in effect on the Date of Termination (without giving effect to any reduction that constitutes Good Reason) multiplied by the Severance Multiple plus (y) either (A) the Severance Bonus Amount, if any, specified in the Participant’s Designation Letter, multiplied by the Severance Multiple or (B), if no Severance Bonus Amount is specified in the Participant’s Designation Letter, the Participant’s annual target bonus as in effect on the Date of Termination (without giving effect to any reduction that constitutes Good Reason) multiplied by the Severance Multiple.

Severance Bonus Amount ” means the amount, if any, specified in a Participant’s Designation Letter.

Severance Period ” means a number of whole and partial years equal to the Severance Multiple (e.g. one year for a Severance Multiple of 1, one and one-half years for a Severance Multiple of 1.5).

Severance Multiple ” means the number indicated in Schedule 2.1 hereto.

Share ” has the meaning ascribed to such term in the applicable Equity Plan.

Subsidiary ” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns equity possessing fifty percent (50%) or more of the total combined voting power of all classes of equity in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the date hereof shall be considered a Subsidiary commencing as of such date.

Tier I Participant ” means the individuals identified as Tier I Participants in Schedule 2.1 hereto.

 

4


Tier II Participant ” means the individuals identified as Tier II Participants in Schedule 2.1 hereto.

Tier III Participant ” means the individuals identified as Tier III Participants in Schedule 2.1 hereto.

Time-Vesting Equity Award ” means any Equity Award that is expressly and exclusively subject to vesting based on continued service.

ARTICLE III

TERMINATION BENEFITS AND PAYMENTS

3.1 Qualifying Termination . If a Participant incurs a Qualifying Termination, the Participant shall be entitled to receive the following payments and benefits, subject to Section 3.3 and Section 9.2 and provided , that if the Merger does not occur and the Merger Agreement is terminated, any such payments and benefits shall be repaid to the Company:

(a) (i) A single lump-sum payment within ten (10) days after the Date of Termination (or earlier, to the extent required by applicable law), in an aggregate amount equal to the Participant’s earned but unpaid Base Salary and accrued but unpaid vacation pay (if any) through the Date of Termination and (ii) subject to submission by the Participant of supporting documentation, reimbursement of any unreimbursed business expenses incurred by the Participant through the Date of Termination in accordance with the Company’s reimbursement policy payable at the times provided for in such policy (the amounts described in clauses (i) and (ii), collectively, the “ Accrued Obligations ”);

(b) Payment of the Severance Amount in the form of substantially equal installments on regularly scheduled payroll dates over the Severance Period; provided , that, to the extent required to comply with Section 409A of the Code, if the Release Period spans two calendar years, any installment of the Severance Amount that would have been payable during the Release Period if the Release had been fully effective as of the Date of Termination shall be paid on the first regularly scheduled payroll date in such second calendar year after the date on which the Release is irrevocable;

(c) Any unpaid bonus that would have become payable to the Participant in respect of any fiscal year that ends on or before the Date of Termination, where the Participant remained employed through the full fiscal year or performance period but incurs a Qualifying Termination prior to the payment date for such bonus (to be calculated based on the actual achievement of applicable Company performance metrics with respect to such fiscal year, and with any applicable personal performance metrics to be calculated as though Participant had achieved “target” levels of performance), payable in a single-lump sum on the later of (i) the date on which such bonus would have been paid to the Participant if he or she had remained employed on the payment date or (ii) the first payroll date following the date on which the Release (as defined below) becomes irrevocable (or, to the extent required to comply with Section 409A of the Code, if the Release Period spans two calendar years, the first regularly scheduled payroll date in such second calendar year after the date on which the Release is irrevocable);

 

5


(d) A pro rata annual bonus for the fiscal year in which the Date of Termination occurs in an amount equal to the product of (i) the Severance Bonus Amount, if any, specified in the Participant’s Designation Letter, or, if no Severance Bonus Amount is specified in the Participant’s Designation Letter, the annual bonus that would have become payable to the Participant in respect of the fiscal year in which the Date of Termination occurred if the Participant had remained employed through the full fiscal year or performance period and the applicable payment date for such annual bonus (based on the actual achievement of applicable Company performance metrics with respect to such fiscal year, and with any applicable personal performance metrics to be calculated as though Participant had achieved “target” levels of performance) and (ii) a fraction, the numerator of which shall be the number of days elapsed through the Date of Termination in the fiscal year in which the Date of Termination occurs, and the denominator of which shall be three hundred and sixty-five (365), payable in a single lump-sum on the date on which such annual bonus would have been paid to the Participant if he or she had remained employed on the payment date; provided , that, to the extent required to comply with Section 409A of the Code, if the Release Period spans two calendar years, such amount shall be paid on the first regularly scheduled payroll date in such second calendar year after the date on which the Release is irrevocable;

(e) To the extent not previously vested as of the Date of Termination, any outstanding Equity Awards held by the Participant shall vest and, if applicable, become exercisable as follows; provided , that if the applicable award agreement evidencing any such Equity Award provides for more favorable vesting, then the terms of such award agreement shall instead govern the treatment of such Equity Award:

(i) With respect to any Time-Vesting Equity Award (including any Equity Award that is a stock option) held by the Participant, the vesting of such award will immediately accelerate with respect to all of the unvested options or Shares, as applicable, subject thereto; or

(ii) With respect to any Performance-Vesting Equity Award held by the Participant, the vesting of the Shares subject to such award will immediately accelerate, at “target” levels of achievement (as specified in the applicable award agreement), with respect to all of the unvested Shares subject thereto; and

(f) Additional benefits:

(i) If the Participant is a Tier I Participant or Tier II Participant, a lump sum cash payment, payable on the date the first payment is made to the Participant pursuant to Section 3.1(b), equal to the cost to the Participant of COBRA continuation coverage under the Company’s group health and life insurance plans (based on the Participant’s elections in place at the Date of Termination) for eighteen (18) months following the Date of Termination (the “ Benefit Payment ”), plus an additional payment such that, after payment of all federal, state and local taxes on the Benefit Payment, the Participant retains an amount equal to the Benefit Payment; and

 

6


(ii) If the Participant is a Tier III Participant, and subject to the Participant enrolling for COBRA continuation coverage, the Participant may continue participation at then-existing participation and coverage levels at the Company’s expense for a period of twelve (12) months following the Date of Termination in the Company’s group health insurance plans comparable to the terms in effect from time to time for the Company’s senior executives, including any co-payment and premium payment requirements. After such period, the Participant will retain any rights to continue coverage under the group health plans under the benefits continuation provisions pursuant to Section 4980B of the Code. Because of the current uncertainty in the taxation of health benefits, in the event that the Company determines that the provision of health benefits in the manner provided in this clause (ii) becomes legally prohibited or would subject the Participant or the Company to a material tax or penalty, or that such benefits are otherwise unable to be provided in a manner consistent with the intent of the parties to provide the Participant with a non-taxable benefit (both as the cost of the coverage and the provision of benefits under such coverage), the Company and the Participant shall cooperate reasonably and in good faith to preserve, to the maximum extent practicable without the imposition of material additional cost to the Company, the intended benefits hereunder.

3.2 Non-Qualifying Terminations .

(a) Death and Disability . If a Participant’s employment with the Company is terminated due to the Participant’s death or permanent disability (as determined under the Company’s long-term disability plan), then the Participant (or the Participant’s beneficiary or estate, as applicable) shall be entitled to payment of the Accrued Obligations in a single lump-sum within ten (10) days after the Date of Termination (or earlier, to the extent required by applicable law). In addition, to the extent not previously vested, any outstanding Equity Awards held by the Participant shall vest on the terms applicable to a Participant’s outstanding Equity Awards in the event of a Qualifying Termination, as described in Section 3.1(e).

(b) Other Terminations . If a Participant’s employment with the Company is terminated (i) by the Company for Cause, (ii) by a Participant without Good Reason, or (iii) for any reason not within the definition of a Qualifying Termination (other than the Participant’s death or disability as described in Section 3.2(a)), the Participant shall be entitled to payment of the Accrued Obligations in a single lump-sum within ten (10) days after the Date of Termination (or earlier, to the extent required by applicable law). In no event shall any such Participant otherwise be eligible to receive any payments or benefits under this Plan, except to the extent explicitly required by applicable law; provided , that the Committee may, in its sole discretion, determine to provide for the full or partial vesting of any Equity Award held by the Participant as of the Date of Termination.

 

7


3.3 Release and Other Conditions to Severance . Any payments or benefits that may be provided to a Participant under Section 3.1 of this Plan (other than payment of the Accrued Obligations) shall be conditioned upon the following events:

(a) The Participant’s execution, delivery and non-revocation of an effective release of claims against the Company Group (the “ Release ”), containing the provisions attached hereto as Exhibit B and such other terms as may be mutually agreed by the parties to the Release, which Release shall be delivered to the Participant within ten (10) days following the Date of Termination and which must be executed (and not revoked) by the Participant within sixty (60) days following the Date of Termination (the “ Release Period ”); and

(b) At the Company’s request, the Participant’s return of all property belonging to the Company Group (including, but not limited to, any Company Group-provided laptops, computers, cell phones, wireless electronic mail devices or other equipment, or documents and property belonging to the Company Group).

ARTICLE IV

TERMINATION PROCEDURE

4.1 Notice Period . The Company must provide a Participant with ninety (90) days advance written notice of its intention to terminate the Participant’s employment for any reason other than for Cause. A Participant must provide the Company with ninety (90) days advance written notice of an intention to terminate employment for any reason. The Company may, in its sole discretion (but subject to applicable law, including Section 409A) take the following steps under the following circumstances: (a) in the event of a Participant’s voluntary resignation or termination for Good Reason, the Company may unilaterally shorten the notice period and declare the termination of employment immediately effective with no pay in lieu of notice; (b) in the event of any termination of employment by the Company other than for Cause, the Company may, in lieu of any notice the Company is required to provide to the Participant hereunder, immediately terminate the employment of the Participant and unilaterally pay the compensation that the Participant would have been paid or would have earned during such notice period (including the portion of the pro rata annual bonus described in Section 3.1(d) attributable to the notice period); or (c) in the event of any termination of employment (whether initiated by the Company or by the Participant), the Company may unilaterally treat all or any portion of the notice period as a period of “garden leave” and require the Participant to not report to any work location and to refrain from performing any or all of Participant’s responsibilities during the notice period. In the event of a termination for Cause, no notice shall be required, and therefore no pay in lieu is required.

4.2 Notice of Termination . Any purported termination of a Participant’s employment by the Company with or without Cause, or by a Participant for Good Reason, shall be communicated by a written notice, given in accordance with Article VII, which shall (a) indicate the termination provision in this Plan relied upon and (b) set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of a Participant’s employment under the provision so indicated. The failure by the Participant or the Company to set forth in

 

8


the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Participant or the Company, respectively, under this Plan or preclude the Participant or the Company from asserting such fact or circumstance in enforcing the Participant’s or the Company’s rights under this Plan.

ARTICLE V

NO MITIGATION OR OFFSET

The Company agrees that, in order for a Participant to be eligible to receive the payments and other benefits described herein, the Participant is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Participant by the Company pursuant to Section 3.1. Further, the amount of any payment or benefit provided for in this Plan shall not be reduced by any compensation earned by the Participant following the Date of Termination as the result of employment by another employer or otherwise, by retirement benefits, by offset against any amount claimed to be owed by the Participant to the Company, or otherwise.

ARTICLE VI

SUCCESSORS; BINDING AGREEMENT

6.1 The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume this Plan and all obligations of the Company hereunder in the same manner and to the same extent that the Company would be so obligated if no such succession had taken place.

6.2 This Plan shall inure to the benefit of and shall be binding upon the Company, its permitted successors and assigns. For avoidance of doubt, upon consummation the Mergers, the rights and obligations of and with respect to the Company hereunder shall be and become rights and obligations of and with respect to New Envision.

6.3 Except as otherwise provided herein or by law, no right or interest of any Participant under this Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including, without limitation, by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective; and no right or interest of any Participant under this Plan shall be liable for, or subject to, any obligation or liability of such Participant. When a payment is due under this Plan to a Participant who is unable to care for his or her affairs, payment may be made directly to the Participant’s legal guardian or personal representative. Notwithstanding the foregoing, if a Participant dies while any amount would still be payable to the Participant hereunder (other than amounts which, by their terms, terminate upon the death of the Participant) if the Participant had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Plan to the executors, personal representatives or administrators of the Participant’s estate.

 

9


ARTICLE VII

NOTICES

For the purpose of this Plan, notices and all other communications provided for in this Plan shall be given in writing and delivered by hand or sent by overnight courier, certified or registered mail, return receipt requested, postage prepaid, and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to the Participant, five (5) days after deposit in the United States mail, postage prepaid, addressed to the Participant at the last address the Participant provided to the Company and, if to the Company, to the address set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt:

To the Company:

6363 South Fiddlers Green Circle, 14 th Floor

Attention: General Counsel

Greenwood Village, Colorado 80111

ARTICLE VIII

DISPUTES

8.1 Exclusive Jurisdiction; Waiver of Jury Trial . Notwithstanding anything herein to the contrary, the Company shall have the right to enforce the provisions of Section 3.3 through an action, suit or proceeding brought in any federal court located in the State of Colorado or any Colorado state court, and each Participant consents to the exclusive jurisdiction and venue of such courts (and of the appropriate appellate courts therefrom) in any such action, suit or proceeding and irrevocably waives, to the fullest extent permitted by law, any right to a jury trial and any objection that such party may now or hereafter have to the laying of the venue of any such action, suit or proceeding in any such court or that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

8.2 Expenses . In the event that the Company or any Participant initiates legal proceedings to enforce any provision of this Plan or resolve any dispute hereunder, and the Participant is the prevailing party, then the Company shall be responsible for payment of the Participant’s costs incurred in connection therewith, including reasonable attorneys’ fees.

ARTICLE IX

SECTION 409A

9.1 To the extent applicable, this Plan shall be interpreted and applied consistent and in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of this Plan to the contrary, to the extent that the Committee determines that any payments or benefits under this

 

10


Plan may not be either compliant with or exempt from Section 409A of the Code and related Department of Treasury guidance, the Committee may in its sole discretion adopt such amendments to this Plan or take such other actions that the Committee determines are necessary or appropriate to (i) exempt the compensation and benefits payable under this Plan from Section 409A of the Code and/or preserve the intended tax treatment of such compensation and benefits, or (ii) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance; provided , that this Section 9.1 shall not create any obligation on the part of the Committee to adopt any such amendment or take any other action.

9.2 Notwithstanding anything to the contrary in this Plan, no amounts shall be paid to any Participant under this Plan during the six (6) month period following such Participant’s Separation from Service to the extent that paying such amounts at the time or times indicated in this Plan would result in a prohibited distribution under Section 409A(a)(2)(b)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six (6) month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of the Participant’s death), the Participant shall receive payment of a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Participant during such six (6) month period without interest thereon.

9.3 Notwithstanding anything to the contrary herein, to the extent required by Section 409A of the Code, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of amounts or benefits upon or following a termination of employment unless such termination is also a Separation from Service with the Company, and, for purposes of any such provision of this Plan, references to a “resignation,” “termination,” “termination of employment” or like terms shall mean Separation from Service.

9.4 For purposes of Section 409A of the Code, each installment payment or other payment in series of payments made under this Plan shall be designated as a “separate payment” within the meaning of Section 409A of the Code.

9.5 Notwithstanding anything to the contrary herein, except to the extent any expense, reimbursement or in-kind benefit provided pursuant to this Plan does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code, (a) the amount of expenses eligible for reimbursement or in-kind benefits provided to the Participant during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Participant in any other calendar year; (b) the reimbursements for expenses for which the Participant is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred; and (c) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

 

11


ARTICLE X

TERMINATION AND AMENDMENT

This Plan may be amended or terminated, and any provision hereof may be modified (or waived), for one or more Participants at any time by the Committee in its sole discretion; provided , that no such amendment, modification or termination may adversely affect the rights of a Participant without the consent of such person, except as required by law. This Plan shall automatically expire after eighteen (18) months have elapsed following the Closing Date, except that such expiration shall have no effect on the rights of any Participant as to whom a Notice of Termination was provided (either by the Company or by the Participant) prior to such expiration.

ARTICLE XI

MISCELLANEOUS

11.1 No Waiver . No waiver by the Company or any Participant, as the case may be, at any time of any breach by the other party of, or of any lack of compliance with, any condition or provision of this Plan to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. All other plans, policies and arrangements of the Company Group in which a Participant participates during the term of this Plan shall be interpreted so as to avoid the duplication of benefits paid hereunder.

11.2 No Right to Employment . Nothing contained in this Plan or any documents relating to this Plan shall (i) confer upon any Participant any right to continue as a Participant or in the employ or service of any member of the Company Group, (ii) constitute any contract or agreement of employment, or (iii) interfere in any way with any “at-will” nature (if applicable) of the Participant’s employment with the Company Group.

11.3 Tax Withholding . All amounts payable hereunder shall be subject to withholdings for applicable federal, state, local or non-U.S. taxes and other required payroll deductions, including, in respect of any Equity Awards, under any Company “withhold to cover” or “sell to cover” program as then in effect.

11.4 Other Benefits . Amounts payable hereunder shall not be counted as compensation for purposes of determining benefits under other benefit plans, programs, policies and agreements, except to the extent expressly provided therein or herein. While in effect, this Plan is the only severance pay plan, program or policy of the Company applicable to Participants, and supersedes all other severance plans, programs, practices, policies, understandings and agreements, express or implied, written or oral, including any individual severance arrangement provided for in any employment agreement between any Participant and the Company or any predecessor of the Company.

11.5 Governing Law . This Plan and all rights hereunder shall be governed, construed and interpreted in accordance with the laws of the State of Delaware without regard to its principles of conflicts of laws.

 

12


11.6 Unfunded Obligation . All amounts payable under this Plan shall constitute an unfunded obligation of the Company. Payments shall be made, as due, from the general funds of the Company. This Plan shall constitute solely an unsecured promise by the Company to provide such benefits to Participants to the extent provided herein. For avoidance of doubt, any pension, health or life insurance benefits to which a Participant may be entitled under this Plan shall be provided under other applicable employee benefit plans of the Company Group. This Plan does not provide the substantive benefits under such other employee benefit plans, and nothing in this Plan shall restrict the ability of any member of the Company Group to amend, modify or terminate such other employee benefit plans.

11.7 Validity . The invalidity or unenforceability of any provision of this Plan shall not affect the validity or enforceability of any other provision of this Plan, which shall remain in full force and effect.

 

13


CONFIDENTIAL

Exhibit A

Form of Designation Letter

ENVISION HEALTHCARE HOLDINGS, INC.

6363 SOUTH FIDDLERS GREEN CIRCLE, 14 th FLOOR

GREENWOOD VILLAGE, COLORADO 80111

[INSERT DATE]

[INSERT NAME]

c/o Envision Healthcare Holdings, Inc.

6363 South Fiddlers Green Circle, 14 th Floor

Greenwood Village, Colorado 80111

Re: The Envision Healthcare Holdings, Inc. Severance and Retention Plan for Senior Management

Dear [NAME]:

This letter agreement (the “ Designation Letter ”) relates to the Envision Healthcare Holdings, Inc. Severance and Retention Plan for Senior Management (the “ Plan ”). Through this Designation Letter, you are being offered the opportunity to become a participant in the Plan. Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Plan.

Envision Healthcare Holdings, Inc. (together with New Envision and its subsidiaries, the “ Company ”) has designated you as a Tier [●] Participant (as defined in the Plan) and thereby you are eligible to receive the severance and other benefits set forth in the Plan subject to the terms and conditions thereof. A copy of the Plan has been made available to you. You should read it carefully and become comfortable with its terms and conditions and those set forth below.

By accepting this Designation Letter, you acknowledge the following provisions:

 

    that you have received and reviewed a copy of the Plan;

 

    that you understand that participation in the Plan requires that you agree to the terms of the Plan and that you irrevocably and voluntarily agree to those terms;


    that you have had the opportunity to carefully evaluate this opportunity and desire to participate in the Plan according to the terms and conditions set forth therein;

 

    that, while in effect, the Plan is the only severance pay plan, program or policy of the Company applicable to you, and supersedes all other severance plans, programs, practices, policies, understandings and agreements, express or implied, written or oral, including any individual severance arrangement provided for in any employment agreement between you and the Company or any predecessor of the Company; and

 

    that the Company does not make any representations with respect to the application of Section 409A of the Code to any tax, economic or legal consequences of any payments payable to you under the Plan; and that (i) you retain full responsibility for the potential application of Section 409A of the Code to the tax and legal consequences of payments payable to you under the Plan and (ii) the Company shall not indemnify or otherwise compensate you for any violation of Section 409A of the Code that my occur in connection with the Plan.

You further acknowledge and agree that, as a condition precedent and subsequent to the receipt of any actual payments (other than payment of the Accrued Obligations) and benefits provided to you under Section 3.1 of the Plan, in order to accept any such benefits and payments, you must comply with the following conditions:

 

   

Restrictive Covenants . The protection of confidential information and trade secrets is essential for the Company, the other members of the Company Group and their employees’ future security. You agree that for [●] months following a Qualifying Termination (the “ Restricted Period ”), you will not in any manner, without the prior written consent of the Company, directly or indirectly: (a) disclose or divulge to any person, entity, firm, company or employer, or use for your own benefit or the benefit of any other person, entity, firm, company or employer directly or indirectly in competition with the Company, any knowledge, information, business methods, techniques or data of the Company; (b) solicit, divert, take away or interfere with any of the customers, accounts, trade, business patronage, employees or contractual arrangements of the Company; or (c) either individually or in partnership, or jointly in conjunction with any other person, entity or organization, as principal, agent, consultant, lender, contractor, employer, employee, investor, shareholder, or in any other manner, directly or indirectly, advise, manage, carry on, establish, control, engage in, invest in, offer financial assistance, financial services to, or permit your name to be used by any business that competes with the then-existing Business of the Company, provided that you


 

shall be entitled, for investment purposes, to purchase and trade shares of a public company which are listed and posted for trading on a recognized stock exchange and the business of which public company may be in competition with the Business of the Company, provided that you shall not directly or indirectly own more than five percent (5%) of the issued share capital of the public company, or participate in its management or operation, or in any advisory capacity within the time limits set out herein. For purposes of this paragraph, the “ Business of the Company ” shall mean (i) the ambulatory surgery business; (ii) any business the products, services, or activities of which include the provision of medical services, including without limitation, the provision of anesthesia services, pain management services, emergency medicine services, gynecological and obstetrical services, primary medical care services, neonatology services, pediatric services, perinatology services, radiology services, medical transportation services and post-acute care medical services; (iii) any business the products, services, or activities of which include the provision of administrative services for medical services, including without limitation, quality assurance services, utilization management services, billing services, recruitment services, medical management information services and physician practice management services and (iv) any other line of business in which the Company is engaged on the date of termination of your employment with the Company (provided that the Company shall not be deemed to be engaged in a line of business if the Company provides the goods or services that constitute such line of business solely to business units, segments or subsidiaries of the Company or facilities owned or operated by the Company).

 

    Non-Solicitation . You further agree that during the Restricted Period, you will not solicit for hire or rehire, or take away, or cause to be hired, or taken away, management level employee(s) of the Company.

 

   

Cooperation . You further agree that, during the Restricted Period and, if longer, during the pendency of any litigation or other proceeding, you (a) will not communicate with anyone (other than your attorneys and tax and/or financial advisors and except to the extent you determine in good faith is necessary in the performance of your duties hereunder) with respect to the facts or subject matter of any pending or potential litigation, or regulatory or administrative proceeding involving the Company Group, other than any litigation or other proceeding in which you are a party-in-opposition, without giving prior notice to the Company, and (b) in the event that any other party attempts to obtain information or documents from you (other than in connection with any litigation or other proceeding in which you are a party-in-opposition) with respect to matters you believe in good faith are related to such litigation or other proceeding, you will promptly so notify the


 

Company’s counsel. You agree to cooperate, in a reasonable and appropriate manner, with the Company and its attorneys, both during and after the termination of employment, in connection with any litigation or other proceeding arising out of or relating to matters in which you were involved prior to the termination of employment to the extent the Company pays all Company-approved expenses you incur in connection with such cooperation.

 

    Nondisparagement . You further agree that, except as may be required by applicable law, during the Restricted Period, you shall not make any statement, written or verbal, in any forum or media, or take any other action in disparagement of the Company or its subsidiaries or affiliates or their respective past or present products, services, officers, directors, employees or agents. Nothing in this paragraph shall preclude you from providing truthful testimony or other evidence or documents in connection with (i) any action to enforce your rights hereunder or under any other agreement between you and the Company or (ii) in response to any judicial or administrative subpoena, or from otherwise participating in any investigation or inquiry being conducted by a judicial or administrative body having competent jurisdiction.

Notwithstanding the foregoing, this Designation Letter does not (a) prohibit you from providing truthful testimony or accurate information in connection with any investigation being conducted into the business or operations of the Company and its affiliates by any government agency or other regulator that is responsible for enforcing a law on behalf of the government or otherwise providing information to the appropriate government regulatory agency or body regarding conduct or action undertaken or omitted to be taken by the Company or its affiliates that you reasonably believe is illegal or in material non-compliance with any financial disclosure or other regulatory requirement applicable to the Company or any affiliate or (b) require you to obtain the approval of, or give notice to, the Company or any of its employees or representatives to take any action permitted under clause (a).

It is the intention of the parties to restrict your activities in a manner which reasonably protects the legitimate business interests of the Company. In the event the restrictive conditions expressed herein are deemed overly broad or unenforceable by a court of competent jurisdiction, it is the intent of the parties that the terms of this Designation Letter be enforced to the fullest extent allowed under applicable law, and be reformulated by such court to the extent necessary to so enforce it.

You hereby agree that (i) your acceptance of this Designation Letter will result in your participation in the Plan subject to the terms and conditions thereof and (ii) this Designation Letter may not be amended, modified or terminated except pursuant to Article X of the Plan.


This Designation Letter is subject in all respects to the terms and provisions of the Plan, as amended from time to time. In the event of any conflict between the terms of this Designation Letter and the terms of the Plan, the terms of the Plan shall govern.


Your participation in the Plan will be conditioned and effective upon your acceptance of this Designation Letter.

 

Sincerely,
ENVISION HEALTHCARE HOLDINGS, INC.
By:  

 

  Name:
  Title:

 

Accepted and agreed:

 

[NAME]


Exhibit B

Release Provisions

Release and Waiver of Claims . In consideration of the payments and benefits to which you are entitled as a Participant (as defined in the Plan) in the Envision Healthcare Holdings, Inc. Severance and Retention Plan for Senior Management (the “ Plan ”), you hereby waive and release and forever discharge Envision Healthcare Holdings, Inc. and Envision Healthcare Corporation (together, the “ Company ”), its parent entities, subsidiaries, divisions, limited partnerships, affiliated corporations, successors and assigns and their respective past and present directors, managers, officers, stockholders, partners, agents, employees, insurers, attorneys, and servants each in his, her or its capacity as such, and each of them, separately and collectively (collectively, “ Releasees ”), from any and all existing claims, charges, complaints, liens, demands, causes of action, obligations, damages and liabilities, known or unknown, suspected or unsuspected, whether or not mature or ripe, that you ever had and now have against any Releasee including, but not limited to, claims and causes of action arising out of or in any way related to your employment with or separation from the Company, to any services performed for the Company, to any status, term or condition in such employment, or to any physical or mental harm or distress from such employment or non-employment or claim to any hire, rehire or future employment of any kind by the Company, all to the extent allowed by applicable law. This release of claims includes, but is not limited to, claims based on express or implied contract, compensation plans, covenants of good faith and fair dealing, wrongful discharge, claims for discrimination, harassment and retaliation, violation of public policy, tort or common law, whistleblower or retaliation claims; and claims for additional compensation or damages or attorneys’ fees or claims under federal, state, and local laws, regulations and ordinances, including but not limited to Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Worker Adjustment and Retraining Notification Act (“WARN”), or equivalent state WARN act, the Employee Retirement Income Security Act (“ERISA”), and the Sarbanes-Oxley Act of 2002. You understand that this release of claims includes a release of all known and unknown claims through the date on which this release of claims becomes irrevocable (the “ Effective Date ”).

Limitation of Release : Notwithstanding the foregoing, this release of claims will not prohibit you from filing a charge of discrimination with the National Labor Relations Board, the Equal Employment Opportunity Commission (“ EEOC ”) or an equivalent state civil rights agency, but you agree and understand that you are waiving your right to monetary compensation thereby if any such agency elects to pursue a claim on your behalf. Further, nothing in this release of claims shall be construed to waive any right that is not subject to waiver by private agreement under federal, state or local employment or other laws, such as claims for workers’ compensation or unemployment benefits or any claims that may arise after the Effective Date. In addition, nothing in this release of claims will be construed to affect any of the following claims, all rights in respect of which are reserved:

 

  (a) Any payment or benefit set forth in the Plan;

 

  (b) Reimbursement of unreimbursed business expenses properly incurred prior to the termination date in accordance with the policy of the Company;


  (c) Claims under the Equity Plans (as defined in the Plan) in respect of vested Company equity held by you;

 

  (d) Vested benefits under the general Company employee benefit plans (other than severance pay or termination benefits, all rights to which are hereby waived and released);

 

  (e) Any claim for unemployment compensation or workers’ compensation administered by a state government to which you are presently or may become entitled;

 

  (f) Any claim that the Company has breached this release of claims; and

 

  (g) Indemnification as a current or former director or officer of the Company or any of its subsidiaries (including as a fiduciary of any employee benefit plan), or inclusion as a beneficiary of any insurance policy related to your service in such capacity.

Return of Company Property . Not later than the Effective Date, you agree to return, or hereby represent that you have returned as of such date (if you have not signed this Agreement by such date), to the Company all Company property, equipment and materials, including, but not limited to, any company vehicle, any laptop computer and peripherals; any cell phone or other portable computing device; any telephone calling cards; keys; Company identification card; any credit or fuel cards; and all tangible written or graphic materials (and all copies) relating in any way to the Company or its business, including, without limitations, documents, manuals, customer lists and reports, as well as all data contained on computer files, “thumb” drives, “cloud” services, or other data storage device, or home or personal computers and/or e-mail or internet accounts.


Schedule 2.1

 

Participant

 

Title

  Tier   Severance Multiple

Randel Owen

  Executive Vice President, Chief Operating Officer and Chief Financial Officer   Tier I   1.75

Craig Wilson

  General Counsel   Tier I   1.5

Steven Ratton, Jr.

  Chief Strategy Officer and Treasurer   Tier I   1.5

Thomas Bongiorno

  Chief Accounting Officer   Tier I   1.5

Mark Hagan

  Chief Information Officer   Tier I   1.5

David Esler

  Chief Human Resources Officer   Tier I   1.5

Edward Van Horne

  Chief Executive Officer of AMR   Tier II   1.5

Timothy Dorn

  Chief Financial Officer of AMR   Tier II   1.5

R. Jason Standifird

  Chief Financial Officer of EmCare   Tier II   1.5

Eric Beck

  Chief Executive Officer of Evolution Health   Tier II   1.5

Ajay Gupta

  Chief Financial Officer, Evolution Health   Tier II   1.5

Ross Ronan

  Chief Compliance Officer   Tier III   1.0

Dighton Packard

  Chief Medical Officer   Tier III   1.0

William Johnson

  Chief Audit Executive   Tier III   1.0

Robert Kneeley

  Vice President, Investor Relations   Tier III   1.0

Janell Marshall

  Chief Marketing Officer   Tier III   1.0

Exhibit 10.15

CONFIDENTIAL

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “ Agreement ”) is entered into this 1 st day of December, 2016, by and between Envision Healthcare Holdings, Inc., a Delaware corporation with its principal place of business at 6200 S. Syracuse Way, Suite 200, Greenwood Village, Colorado 80111 (“ Envision ”), and William A. Sanger (the “ Executive ”).

WHEREAS, the Executive and Emergency Medical Services Corporation previously entered into that certain Employment Agreement dated as of December 6, 2004, as subsequently amended and modified on June 18, 2007, January 1, 2009, March 12, 2009 and May 25, 2011 (collectively, the “ Envision Employment Agreement ”); and

WHEREAS, Envision is a party to that certain Agreement and Plan of Merger among Envision, New Amethyst Corp. (the “ Company ”) and AmSurg Corp., dated as of June 15, 2016 (the “ Merger Agreement ”), pursuant to which, on the Closing Date (as defined in the Merger Agreement), the Company will, by reason of the merger transactions contemplated therein, become the direct and indirect owner of the businesses previously conducted by Envision and AmSurg Corp.; and

WHEREAS, in connection with Envision’s entry in the Merger Agreement, Envision and the Executive entered into that certain letter agreement, dated as of June 15, 2016 (the “ Envision Letter Agreement ”) relating to the Executive’s services to be provided to the Company following the Merger 2 Effective Time (as defined in the Merger Agreement).

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, and pursuant to the Merger Agreement, Envision (on behalf of the Company) and the Executive hereby agree as follows:

 

1. EMPLOYMENT . Effective as of the Merger 2 Effective Time, the Company shall employ the Executive, and the Executive hereby accepts employment with the Company, under the terms and conditions hereinafter set forth. Effective as of the Merger 2 Effective Time, and without further action required by the parties, this Agreement shall be assumed by, and the rights and obligations of Envision shall become rights and obligations of, the Company. Envision shall provide evidence reasonably satisfactory to the Executive of the Company’s assumption of this Agreement prior to, or reasonably promptly following, the Closing Date.

 

2. DUTIES .

 

  a.

Executive Chairman Period . The Executive shall be engaged as the Executive Chairman of the Company during the period beginning as of the Merger 2 Effective Time on the Closing Date and ending on the first anniversary of the Closing Date (the “ Executive Chairman Period ”). During the Executive Chairman Period, the Executive shall be a member of, and in an executive


 

capacity shall report to, the board of directors of the Company (the “ Board ”) and shall have the duties and authority provided for the role of Executive Chairman in the Company’s Corporate Governance Guidelines.

 

  b. Following the Executive Chairman Period . For the period beginning on the first date immediately following the Executive Chairman Period and ending on the second anniversary of such date, the Executive shall be engaged as non-executive Chairman of the Company and, in a non-employee capacity, shall have the duties and authority of individuals customarily serving as non-executive chairman of a public company.

In order to give effect to the provisions of this Section 2, during the term of this Agreement, the Company shall cause the Executive to be nominated for election as a member of the Board at each meeting of the Company’s shareholders at which his election is subject to a vote by the Company’s shareholders and shall recommend that the shareholders of the Company vote to elect the Executive as a member of the Board.

 

3. TERM . Subject to the provisions of termination as hereinafter provided, the term of the Executive’s employment and services under this Agreement shall commence on the Closing Date and shall terminate on the third anniversary of the Closing Date. The Executive’s services following the third anniversary of the Closing Date, if any, shall be as mutually agreed between the Executive and the Board.

 

4. COMPENSATION .

 

  a. During the Executive Chairman Period:

 

  i. for all duties rendered by the Executive, the Company shall pay the Executive a base salary at a rate of $1,106,000 per year, payable not less frequently than in equal semi-monthly installments;

 

  ii. the Executive shall be eligible to receive an annual bonus under the same terms and conditions of the applicable bonus program in which the Company’s other executive officers participate, with a target bonus payment equal to two hundred percent (200%) of the Executive’s annual base salary;

 

  iii. the Executive shall receive a one-time award of time-vesting equity interests in Company stock with a value equal to $3,000,000, to be granted to the Executive not later than 60 days following the Closing Date, which award shall vest in three equal annual installments beginning on the first anniversary of the Closing Date, becoming fully vested on the third anniversary of the Closing Date;

 

2


  iv. the Executive shall be eligible to receive equity incentive awards on the same terms and conditions applicable to the equity incentive awards granted to the Company’s other executive officers;

 

  v. the Company shall pay the reasonable expenses incurred by the Executive in the performance of his duties under this Agreement (or shall reimburse the Executive on account of such expenses paid directly by the Executive) in accordance with the Company’s policies and procedures. Any such reimbursement of expenses shall be made by the Company promptly upon or as soon as reasonably practicable following receipt of supporting documentation reasonably satisfactory to the Company (but in any event not later than the close of the Executive’s taxable year following the taxable year in which the expense is incurred by the Executive); provided , however , that upon the Executive’s termination of employment with the Company, in no event shall any additional reimbursement be made prior to the Section 409A Payment Date (as such term is defined in Section 20 ) to the extent such payment delay is required under Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “ Code ”). In no event shall any reimbursement be made to the Executive for such expenses after the later of (i) the first anniversary of the date of the Executive’s death or (ii) December 31 of the calendar year following the year of the Executive’s termination of employment with the Company (other than by reason of the Executive’s death); and

 

  vi. the Company shall (i) provide the Executive with a monthly allowance of $1,200 for expenses incurred by the Executive for the leasing of an automobile, and reimburse the Executive for expenses incurred by the Executive in connection with the related operating and insurance expenses for such automobile, provided that the Executive provides an itemized written account and receipts acceptable to the Company and (ii) make a one-time payment to the Executive in the amount of $420,200.00 in consideration of which the Executive will, as of the date hereof, cease to be entitled to use the Company’s corporate aircraft for personal travel, and the Letter Agreement dated May 25, 2011 between the Executive and CDRT Holding Corporation is hereby modified accordingly.

 

  b. For the remaining term of this Agreement following the Executive Chairman Period, the Executive’s compensation shall be determined by the Board or the compensation committee thereof in accordance with the New Amethyst director compensation policy in effect at such time, provided that, during the Executive’s period of service as a member of the Board, any unvested equity incentive awards held by the executive and granted to the Executive while an employee (the “ Employee Equity Awards ”) shall continue to vest according to the terms under which they were granted as if he had remained an employee during such period of Board service.

 

  c. All compensation payable hereunder shall be subject to withholding for federal income taxes, FICA and all other applicable federal, state and local withholding requirements.

 

3


5. EXTENT OF SERVICE . During the Executive Chairman Period, the Executive shall devote substantially his entire time, attention and energies to the business of the Company and shall not during the term of this Agreement take an active role in any other business activity without the prior written consent of the Company; but this shall not prevent the Executive from making real estate or other investments of a passive nature or devoting time to charitable and non-profit activities and service as a director on the board(s) of directors of companies (whether public or private) other than the Company, in each case, in accordance with the Company’s Corporate Governance Guidelines and in a manner that does not interfere with the performance of his duties to the Company. Following the Executive Chairman Period, the extent of the Executive’s services to the Company will be subject to the Board’s policies in effect with respect to its non-employee directors generally.

 

6. DEATH AND DISABILITY . In the event of the Executive’s death or termination due to permanent disability during the Executive Chairman Period, the one-time equity award described in Section 4(a)(iii) shall become fully and immediately vested, and, in addition, the Company shall provide the Executive with the Accrued Rights (as defined in Section 7(a) below). In the event of such a termination, the Employee Equity Awards shall be treated as provided in the relevant award documentation applicable to such a termination.

 

7. TERMINATION FOR CAUSE .

 

  a. The Company may terminate the Executive’s employment for Cause during the Executive Chairman Period without any further liability hereunder to the Executive, except that the Executive shall be entitled to payment of all accrued but unpaid salary through the date of termination, reimbursement for all incurred but unreimbursed expenses for which the Executive is entitled to reimbursement in accordance with Section 4(a)(v) and Section 4(a)(vi) , any bonus to which the Executive is entitled for any completed performance period, and benefits to which the Executive is entitled as of the date of termination of employment under the terms of applicable benefit plans and programs (the “ Accrued Rights ”). In the event of such a termination, the Employee Equity Awards shall be treated as provided in the relevant award documentation applicable to such a termination.

 

  b.

For the purposes of this Agreement, the Company shall have “ Cause ” to terminate the Executive’s employment based upon the following grounds: (i) a felony conviction of the Executive or the failure of the Executive to contest prosecution for a felony, (ii) conviction of a crime involving moral turpitude, or (iii) willful

 

4


 

and continued misconduct or gross negligence by the Executive in the performance of his duties after written notice from the Company that reasonably identifies the manner in which the Company believes that he has committed gross negligence or willful misconduct and the failure by the Executive to cure such failure within forty-five (45) days after delivery of such notice. For purposes of this Section 7 , “willful” shall be determined by the Board. In making such determination, the Board shall not act unreasonably or arbitrarily and no act or omission by the Executive shall be deemed willful if taken by the Executive in a good faith belief that such act or omission to act was in the best interests of the Company or if done at the express direction of the Board.

 

  c. Prior to making a determination to terminate the Executive’s employment for Cause, the Executive shall have the opportunity, together with his counsel, to be heard before the Board.

 

8. TERMINATION WITHOUT CAUSE OR FOR GOOD REASON . The Executive’s employment under this Agreement may be terminated by the Board at any time during the Executive Chairman Period without Cause or by the Executive for Good Reason (as defined in Section 19 ). In the event the Executive’s employment under this Agreement is terminated during the Executive Chairman Period by the Board without Cause or by the Executive for Good Reason the Executive shall be entitled to the following payments and benefits:

 

  a. The Accrued Rights;

 

  b. Any unpaid portion of the annual base salary specified in Section 4(a)(i) to which the Executive would have been entitled had the Executive’s employment continued until the end of the Executive Chairman Period, payable the Executive in equal semi-monthly installments through the end of the Executive Chairman Period;

 

  c. An annual bonus under the applicable bonus program adopted by the Company with respect to its executive officers for the bonus period in which the termination of employment occurs, based upon the actual performance of the applicable bonus criteria for the year of termination, and prorated for the period of employment during the applicable bonus period (the “ Pro Rata Bonus ”); and

 

  d. The one-time award of time-vesting equity interests in Company stock granted to the Executive as specified in
Section 4(a)(iii) ) shall become fully and immediately vested. In the event of such a termination, the Employee Equity Awards shall be treated as provided in the relevant award documentation applicable to such a termination.

Receipt by the Executive of the payment and other benefits under this Section 8 shall be subject to the Executive’s execution and delivery, pursuant to the terms of Section 10 below, to the Company of a general release in form and substance reasonably acceptable to the Company and the Executive.

 

5


9. TERMINATION BY THE EXECUTIVE WITHOUT GOOD REASON . The Executive may terminate his employment under this Agreement during the Executive Chairman Period at any time other than for Good Reason (as defined in Section 19 ) upon the provision of sixty (60) days prior written notice to the Company. In the event of such a termination, the Employee Equity Awards shall be treated as provided in the relevant award documentation applicable to such a termination. In such event, the Company shall pay the Executive the Accrued Rights, and the Executive shall not be entitled to any other benefits under this Agreement following the date of termination of this employment with the Company. In the event the Executive gives notice of his intent to terminate his employment other than for Good Reason, the Company may elect to waive the period of notice or any portion thereof and accept the Executive’s resignation prior to the end of the notice period.

 

10. COORDINATION WITH RELEASE . Notwithstanding any provision herein to the contrary, the provisions of this Section 10 shall apply to the payment of benefits under Section 8(b) (the “ Severance Payments ”). The Severance Payments shall be made only if the Executive shall have executed, on or prior to the Release Expiration Date (as defined below), a general release in form and substance reasonably acceptable to the Company and the Executive (the “ Release ”) and any waiting periods contained in the Release shall have expired. In any instance where the execution of a Release is required, the Company shall deliver the Release to the Executive within eight (8) days following the date of the Executive’s Separation from Service. If the Executive fails to execute and deliver the Release on or prior to the Release Expiration Date or timely revokes the Executive’s acceptance of the Release thereafter, the Executive shall not be entitled to any Severance Payments. The Severance Payments shall be made immediately upon the expiration of any waiting periods contained in the Release, or if no waiting periods are applicable, within two (2) business days following the Executive’s execution and delivery of the Release to the Company; provided, however, notwithstanding anything herein to the contrary, in any case where the date the Separation from Service and the Release Expiration Date fall in two separate taxable years, any Severance Payments that are treated as deferred compensation for purposes of Section 409A of the Code shall be made in the later taxable year. For purposes of this Section 10 , the “ Release Expiration Date ” shall mean the later of (i) the date of the Executive’s Separation from Service, and (ii) the date that is twenty-one (21) days following the date on which the Company timely delivers a Release to the Executive for the Executive’s execution, or in the event that the Executive’s Separation from Service is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the date that is forty-five (45) days following such delivery date.

 

6


11. RESTRICTIVE COVENANTS .

 

  a. Confidential Information . The Executive agrees not to disclose, either during the time he is employed by the Company or following the termination of his employment at the Company, any confidential information concerning the Company, including, but not limited to, customer lists, business plans, contract terms, financial costs, sales data, or business opportunities whether for existing, new or developing businesses.

 

  b.

Non-Competition . The Executive agrees that at all times (i) during his employment pursuant to this Agreement, (ii) for twenty-four (24) months following termination of the Executive Chairman Period (x) by the Company without Cause, (y) by the Executive for Good Reason or (z) upon expiration of the Executive Chairman Period on the first anniversary of the Closing Date, and (iii) at the Board’s sole election, for twenty-four (24) months following the Executive’s termination of his employment during the Executive Chairman Period without Good Reason (but, in the case of clause (iii), only if the Board elects to provide the Executive with a severance payment equal to at least two times the annual base salary specified in Section 4(a)(i) , payable in equal monthly installments over a period of twenty-four (24) months following the date of termination), the Executive will not compete, solicit or accept business with respect to products competitive with those of the Company from any of the Company’s customers, wherever situated, and he shall not either individually or in partnership, or jointly in conjunction with any other person, entity or organization, as principal, agent, consultant, lender, contractor, employer, employee, investor, shareholder, or in any other manner, directly or indirectly, advise, manage, carry on, establish, control, engage in, invest in, offer financial assistance or services to, or permit his name to be used by any business that competes with the then-existing business of the Company, provided that the Executive shall be entitled, for investment purposes, to purchase and trade shares of a public company which are listed and posted for trading on a recognized stock exchange and the business of which public company may be in competition with the business of the Company, provided that the Executive shall not directly or indirectly own more than five percent (5%) of the issued share capital of the public company, or participate in its management or operation, or in any advisory capacity within the time limits set out herein. For purposes of this Section 11(b) , the business of the Company shall mean (a) the ambulatory surgery business; (b) any business the products, services, or activities of which include the provision of medical services, including without limitation, the provision of anesthesia services, pain management services, emergency medicine services, gynecological and obstetrical services, primary medical care services, neonatology services, pediatric services, perinatology services, radiology services, medical transportation services and post-acute care medical services; (c) any business the products, services, or activities of which include the provision of administrative

 

7


 

services for medical services, including without limitation, quality assurance services, utilization management services, billing services, recruitment services, medical management information services and physician practice management services and (d) any other line of business in which the Company is engaged on the date of termination of Executive’s employment with the Company (provided that the Company shall not be deemed to be engaged in a line of business if the Company provides the goods or services that constitute such line of business solely to business units, segments or subsidiaries of the Company or facilities owned or operated by the Company).

 

  c. Non-Solicitation . The Executive further agrees that, during the period during which the restriction of competition set forth in clause (b) is applicable, he will not solicit for hire or rehire, or take away, or cause to be hired, or taken away, employee(s) of the Company.

 

  d. Enforcement . The Executive and the Company acknowledge and agree that any of the covenants contained in this Section 11 may be specifically enforced through injunctive relief, but such right to injunctive relief shall not preclude Company from other remedies which may be available to it.

 

  e. Termination . Notwithstanding any provision to the contrary otherwise contained in this Agreement, the agreements and covenants contained in this Section 11 shall not terminate upon the Executive’s termination of his employment with the Company or upon the termination of this Agreement under any other provision of this Agreement.

 

12. BENEFITS . During the Executive Chairman Period, in addition to the benefits specifically provided for herein, the Executive shall be entitled to participate in all retirement and welfare benefit plans offered to the Company’s executive officers.

 

13. NOTICES . Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, and if sent by registered or certified mail to his residence in the case of the Executive, or to its principal office in the case of Envision or the Company, as applicable.

 

14. WAIVER OF BREACH . The waiver by either party of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by the other party.

 

15. ATTORNEYS’ FEES . In the event that either party initiates legal proceedings to enforce any provision of this Agreement or resolve any dispute hereunder, and the Executive is the prevailing party, then the Company shall be responsible for payment of the Executive’s reasonable attorneys’ fees incurred in connection therewith.

 

16.

ASSIGNMENT . The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the

 

8


 

Company. The Executive acknowledges that the services to be rendered by him are unique and personal, and the Executive may not assign any of his rights or delegate any of his duties or obligations under this Agreement.

 

17. ENTIRE AGREEMENT . This instrument contains the entire agreement of the parties with respect to the matters addressed herein. It may not be changed orally but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. This Agreement shall be governed by the laws of the State of Delaware. Without limiting the generality of the foregoing, effective as of the Merger 2 Effective Time, this Agreement shall supersede and replace the Employment Agreement.

 

18. HEADINGS . The sections, subjects and headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

 

19. DEFINITIONS . For purposes of this Agreement the following definitions shall apply:

 

  a. Good Reason ” shall exist if;

 

  i. there is a material diminution in the nature or the scope of the Executive’s authority and responsibilities as Executive Chairman, during the Executive Chairman Period;

 

  ii. there is a material diminution in the Executive’s rate of base salary or overall compensation (for reasons other than Company performance or stock price) during the Executive Chairman Period;

 

  iii. during the Executive Chairman Period, the Company, without the Executive’s consent, changes the principal location in which the Executive is required to perform services to a location outside a fifty (50) mile radius of the Company’s principal offices in Greenwood Village, Colorado; or

 

  iv. during the Executive Chairman Period, the Company engages in any other action or inaction that constitutes a material breach of this Agreement by the Company.

A termination under the circumstances listed above shall be for “Good Reason” only if (A) the Executive notifies the Company of the existence of the condition that otherwise constitutes Good Reason within ninety (90) days of the initial existence of the condition, (B) the Company fails to remedy the condition within forty-five (45) days following its receipt of the Executive’s notice of Good Reason and (C) the Executive Separates from Service from the Company due to the condition within twelve (12) months of the initial existence of such condition.

 

9


  b. Separation From Service ” shall mean the date on which the Company and the Executive reasonably anticipate that no further services will be performed after such date, or that the level of bona fide services the Executive will perform after such date will permanently decrease to no more than 20% of the average level of bona fide services performed over the immediately preceding 36-month period. Whether a Separation from Service occurs shall be interpreted consistent with Section 1.409A-1(h) of the U.S. Treasury Regulations.

 

20. DELAY OF PAYMENTS . It is intended that (1) each installment of the payments provided under this Agreement is a separate “payment” for purposes of Section 409A of the Code; and (2) that the payments satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code, including those provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(9)(iii), and 1.409A-1(b)(9)(v). Notwithstanding anything to the contrary in this Agreement, if the Company determines (i) that on the date the Executive’s employment with the Company terminates or at such other time that the Company determines to be relevant, the Executive is a “specified employee” (as such term is defined under Treasury Regulation 1,409A-1(i)(1)) of the Company and (ii) that any payments to be provided to the Executive pursuant to this Agreement are or may become subject to the additional tax under Section 409A(a)(1)(B) of the Code or any other taxes or penalties imposed under Section 409A of the Code (“ Section 409A Taxes ”) if provided at the time otherwise required under this Agreement then such payments shall be delayed until the date that is six months after the date of the Executive’s Separation from Service with the Company, or, if earlier, the date of the Executive’s death. Any payments delayed pursuant to this Section 20 shall be made in a lump sum on the first day of the seventh month following the Executive’s Separation from Service, or, if earlier, the date of the Executive’s death (the “ Section 409A Payment Date ”). In addition, to the extent that any reimbursement, fringe benefit or other, similar plan or arrangement in which the Executive participates during the term of the Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation” within the meaning of Section 409A of the Code, (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) such right to reimbursement or payment shall not be subject to liquidation or exchange for another benefit.

 

21. HEALTH BENEFITS . The costs of the Company’s portion of any post termination health or life insurance premiums due under this Agreement shall be included in the Executive’s gross income to the extent the provision of such benefits is deemed to be discriminatory under Section 105(h) of the Code.

 

10


22. DEEMED RESIGNATION . In the event the Executive’s employment under this Agreement is terminated for any reason, unless otherwise determined by the Board, the Executive shall be deemed, without any further action on the part of the Executive, to have automatically resigned as a director of the Company and as an officer and director, if applicable, of all subsidiaries of the Company.

[ Remainder of page intentionally left blank ]

 

11


IN WITNESS WHEREOF, Envision and the Executive have duly executed this Amendment as of the date first above written.

 

ENVISION HEALTHCARE HOLDINGS, INC.
By:  

/s/ Craig A. Wilson

  Name:   Craig A Wilson
  Title:   Senior Vice President, General Counsel and Secretary
EXECUTIVE

/s/ William A. Sanger

William A. Sanger

 

12