EX-10.4






 Change Healthcare Inc. has requested confidential treatment of this registration statement
and associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 Exhibit 10.4 

EXECUTION VERSION 
 AMENDED AND
RESTATED 
 TAX RECEIVABLE AGREEMENT (REORGANZATIONS) 

among 
 EMDEON INC., 

H&F ITR HOLDCO, L.P., 
 BEAGLE
PARENT LLC, 
 and 
 GA-H&F ITR HOLDCO, L.P. 
 Dated as of November 2, 2011 

  














 Change Healthcare Inc. has requested confidential treatment of this registration statement
and associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	2	 
			
	 Section 1.1.
	 	 Definitions
	  	 	2	 
		
	 ARTICLE II DETERMINATION OF CERTAIN REALIZED TAX BENEFIT
	  	 	9	 
			
	 Section 2.1.
	 	 Pre-IPO Basis Adjustment
	  	 	9	 
			
	 Section 2.2.
	 	 Tax Benefit Schedule
	  	 	10	 
			
	 Section 2.3.
	 	 Procedures, Amendments
	  	 	10	 
		
	 ARTICLE III TAX BENEFIT PAYMENTS
	  	 	11	 
			
	 Section 3.1.
	 	 Payments
	  	 	11	 
			
	 Section 3.2.
	 	 No Duplicative Payments
	  	 	12	 
			
	 Section 3.3.
	 	 Pro Rata Payments; Coordination of Benefits With Other Tax Receivable Agreements
	  	 	12	 
		
	 ARTICLE IV TERMINATION
	  	 	13	 
			
	 Section 4.1.
	 	 Early Termination and Breach of Agreement
	  	 	13	 
			
	 Section 4.2.
	 	 Early Termination Notice
	  	 	14	 
			
	 Section 4.3.
	 	 Payment upon Early Termination
	  	 	14	 
		
	 ARTICLE V SUBORDINATION AND LATE PAYMENTS
	  	 	15	 
			
	 Section 5.1.
	 	 Subordination
	  	 	15	 
			
	 Section 5.2.
	 	 Late Payments by the Corporate Taxpayer
	  	 	15	 
		
	 ARTICLE VI NO DISPUTES; CONSISTENCY; COOPERATION
	  	 	15	 
			
	 Section 6.1.
	 	 Participation in the Corporate Taxpayer’s and EBS’s Tax Matters
	  	 	15	 
			
	 Section 6.2.
	 	 Consistency
	  	 	15	 
			
	 Section 6.3.
	 	 Cooperation
	  	 	15	 
			
	 Section 6.4.
	 	 Medifax Restructuring
	  	 	16	 
		
	 ARTICLE VII MISCELLANEOUS
	  	 	17	 
			
	 Section 7.1.
	 	 Notices
	  	 	17	 
			
	 Section 7.2.
	 	 Counterparts
	  	 	18	 
			
	 Section 7.3.
	 	 Entire Agreement; No Third Party Beneficiaries
	  	 	18	 
			
	 Section 7.4.
	 	 Governing Law
	  	 	18	 
			
	 Section 7.5.
	 	 Severability
	  	 	18	 
			
	 Section 7.6.
	 	 Successors; Assignment; Amendments; Waivers
	  	 	18	 
			
	 Section 7.7.
	 	 Titles and Subtitles
	  	 	19	 
			
	 Section 7.8.
	 	 Resolution of Disputes
	  	 	19	 


  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 


							
	 Section 7.9.
	 	 Reconciliation
	  	 	20	 
			
	 Section 7.10.
	 	 Withholding
	  	 	21	 
			
	 Section 7.11.
	 	 Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate
Assets
	  	 	21	 
			
	 Section 7.12.
	 	 Confidentiality
	  	 	22	 
			
	 Section 7.13.
	 	 Representations
	  	 	22	 


  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 AMENDED AND RESTATED 

TAX RECEIVABLE AGREEMENT (REORGANIZATIONS) 

This AMENDED AND RESTATED TAX RECEIVABLE AGREEMENT (REORGANIZATIONS) (this “Agreement”), dated as of November 2, 2011,
is hereby entered into by and among Emdeon Inc., a Delaware corporation (the “Corporate Taxpayer”), H&F ITR Holdco, L.P., a Delaware limited partnership (the “HF ITR Entity”), Beagle Parent LLC, a Delaware
limited liability company (the “BX ITR Entity”), GA-H&F ITR Holdco, L.P., a Delaware limited partnership (the “ITR Entity”), and each of the successors and assigns
thereto. 
 RECITALS 

WHEREAS, the Members (as defined below) hold or held member interests in EBS Master LLC, a Delaware limited liability company
(“EBS”), which is classified as a partnership for United States federal income tax purposes; 
 WHEREAS, the Corporate
Taxpayer is the managing member of EBS, and holds and will hold, directly and/or indirectly, member interests in EBS; 
 WHEREAS, EBS
Acquisition II LLC, a Delaware limited liability company (the “GA Corporate Member”) and H&F Harrington Inc., a Delaware corporation (the “HF Corporate Member”) were classified as associations taxable as
corporations for U.S. federal income tax purposes; 
 WHEREAS, pursuant to that certain Reorganization Agreement, dated as of August 4,
2009, among the Corporate Taxpayer and the parties named therein, the GA Corporate Member and the HF Corporate Member merged with and into wholly owned subsidiaries of the Corporate Taxpayer (the “Reorganization”); 

WHEREAS, as a result of the Reorganization, the GA Corporate Member and the HF Corporate Member merged with members of the consolidated group
of which the Corporate Taxpayer is the parent and the Corporate Taxpayer became entitled to utilize certain net operating losses and capital losses of the GA Corporate Member and the HF Corporate Member generated before the IPO (as defined below)
(the “NOLs”); 
 WHEREAS, the income, gain, loss, expense and other Tax (as defined below) items of the Corporate Taxpayer
may be affected by (i) adjustments to the tax basis of the IPO Date Assets (as defined below) attributable to the purchase of interests in EBS in connection with the transactions described in the Purchase Agreement (as defined below) or the
HLTH Merger Agreement (as defined below) (the “Pre-IPO Basis Adjustments”), (ii) NOLs, and (iii) the Imputed Interest (as defined below); 

WHEREAS, the Corporate Taxpayer, the ITR Entity, the HF ITR Entity and GA ITR Holdco, L.P., a Delaware limited partnership (the “GA
ITR Entity”) entered into that certain Tax Receivable Agreement (Reorganizations), dated as of August 17, 2009 (the “Original Agreement”) in order to make certain arrangements with respect to the effect of the NOLs,
the Pre-IPO Basis Adjustments and Imputed Interest on the liability for Taxes of the Corporate Taxpayer; 

  














 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 WHEREAS, the shareholders of the Corporate Taxpayer and the shareholders of the GA Corporate
Member before the Reorganization (the “Existing GA Owners”), HFCP VI Domestic MV, L.P., a Delaware limited partnership (“HFCP”), Hellman & Friedman Capital Associates VI, L.P., a Delaware limited
partnership (“HFCA”), Hellman & Friedman Capital Executives VI, L.P., a Delaware limited partnership (“HFCE”), Hellman & Friedman Investors VI, L.P., a Delaware limited partnership
(“H&F GP” and together with HFCP, HFCA and HFCE, the “HF Non-Corporate Members”), and H&F Harrington MV II, L.P., a Delaware limited partnership (“HF
Harrington” and together with HF Non-Corporate Members, the “HF Members”) engaged in certain transactions that have resulted or will result in various tax benefits to the Corporate
Taxpayer, and the Existing GA Owners and the HF Members previously agreed that any and all payments in respect of such tax benefits will be made 50% to the Existing GA Owners and 50% to the HF Members (such agreement being reflected in the Fourth
Amended and Restated Limited Liability Company Agreement of EBS dated as of May 21, 2008); 
 WHEREAS, the Existing GA Owners have
contributed all of their rights to receive payments of Tax savings related to the effect of the NOLs, the Pre-IPO Basis Adjustments and Imputed Interest attributable to the Corporate Taxpayer and the GA
Corporate Member to the GA ITR Entity in exchange for ownership interests in the GA ITR Entity, and HF Harrington has contributed all of its rights to receive payments of Tax savings related to the effect of the NOLs, the Pre-IPO Basis Adjustments and Imputed Interest attributable to the HF Corporate Member to the HF ITR Entity in exchange for ownership interests in the HF ITR Entity; 

WHEREAS, the GA ITR Entity and the HF ITR Entity have contributed all of their rights (including their rights under this Agreement) to receive
such payments of Tax savings attributable to the effect of the NOLs, the Pre-IPO Basis Adjustments and Imputed Interest from the Corporate Taxpayer to the ITR Entity in exchange for ownership interests in the
ITR Entity; 
 WHEREAS, as a result of such contributions, the ITR Entity was a party to the Original Agreement and shall be a party to this
Agreement; 
 WHEREAS, the BX ITR Entity acquired all of the GA ITR Entity’s ownership interests in the ITR Entity on the Closing Date
(as defined below) pursuant to a Transfer Agreement dated as of August 3, 2011, and a result of such acquisition the BX ITR Entity shall be a party to this Agreement; and 

WHEREAS, the parties to this Agreement desire to amend and restate the Original Agreement in its entirety pursuant to Section 7.6(b)
thereof. 
 NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements set forth herein, and intending to
be legally bound hereby, the parties hereto agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.1. Definitions. As used in this Agreement, the terms set forth in this Article I shall have the following meanings (such
meanings to be equally applicable to both the singular and plural forms of the terms defined). 

  
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 “Affiliate” means, with respect to any Person, any other Person that
directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person. 

“Agreed Rate” means LIBOR plus 100 basis points. 

“Agreement” is defined in the Recitals of this Agreement. 

“Amended Schedule” is defined in Section 2.3(b) of this Agreement. 

“Beagle Merger Agreement” means the Agreement and Plan of Merger, dated as of August 3, 2011, by and among Parent,
Beagle Acquisition Corp. and the Corporate Taxpayer. 
 A “Beneficial Owner” of a security is a Person who directly or
indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares: (i) voting power, which includes the power to vote, or to direct the voting of, such security and/or (ii) investment power, which
includes the power to dispose of, or to direct the disposition of, such security. The terms “Beneficially Own” and “Beneficial Ownership” shall have correlative meanings. 

“Board” means the Board of Directors of Parent. 

“Business Day” means Monday through Friday of each week, except that a legal holiday recognized as such by the government of
the United States of America or the State of New York shall not be regarded as a Business Day. 
 “BX ITR Entity” is
defined in the Recitals of this Agreement. 
 “Change of Control” means the occurrence of any of the following events: 

 

	 	(i)	 any Person or any group of Persons acting together which would constitute a “group” for purposes of
Section 13(d) of the Securities and Exchange Act of 1934, or any successor provisions thereto (excluding a group of Persons which includes one or more Affiliates of Hellman & Friedman LLC, one or more Affiliates of The Blackstone
Group, L.P. and Persons who acquire an ownership interest in Parent pursuant to Section 2.7(d) of the Interim Investors Agreement, dated as of August 3, 2011, by and among Parent and the Investors named therein, and such Persons’
Affiliates), is or becomes the Beneficial Owner, directly or indirectly, of securities of Parent representing more than 50% of the combined voting power of Parent’s then outstanding voting securities; or 



 

	 	(ii)	 the following individuals cease for any reason to constitute a majority of the number of directors of Parent
then serving: individuals who, on the Closing Date, constitute the Board and any new director whose appointment or election by the Board or nomination for election by Parent’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the Closing Date or whose appointment, election or nomination for election was previously so approved or recommended by the
directors referred to in this clause (ii); or 



  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 


	 	(iii)	 there is consummated a merger or consolidation of Parent with any other corporation or other entity, and,
immediately after the consummation of such merger or consolidation, either (x) the Board immediately prior to the merger or consolidation does not constitute at least a majority of the board of directors of the company surviving the merger or,
if the surviving company is a Subsidiary, the ultimate parent thereof, or (y) the voting securities of Parent immediately prior to such merger or consolidation do not continue to represent or are not converted into more than 50% of the combined
voting power of the then outstanding voting securities of the Person resulting from such merger or consolidation or, if the surviving company is a Subsidiary, the ultimate parent thereof; or 



 

	 	(iv)	 the shareholders of Parent approve a plan of complete liquidation or dissolution of Parent or there is
consummated an agreement or series of related agreements for the sale or other disposition, directly or indirectly, by Parent of all or substantially all of Parent’s assets, other than such sale or other disposition by Parent, of all or
substantially all of Parent’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by shareholders of Parent in substantially the same proportions as their ownership of Parent immediately
prior to such sale. 


 Notwithstanding the foregoing, (A) except with respect to clause (ii) and clause (iii)(x) above, a
“Change of Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the shares of Parent immediately prior to such
transaction or series of transactions continue to have substantially the same proportionate ownership in, and own substantially all of the shares of, an entity which owns all or substantially all of the assets of Parent immediately following such
transaction or series of transactions and (B) a “Change of Control” shall not be deemed to have occurred upon the consummation of the transactions contemplated by the Beagle Merger Agreement. 

“Change of Control Termination Rate” means 10% per annum, compounded annually. 

“Closing Date” has the meaning set forth in the Beagle Merger Agreement. 

“Code” means the United States Internal Revenue Code of 1986, as amended. 

“Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Corporate Taxpayer” is
defined in the Recitals of this Agreement. 
 “Corporate Taxpayer Return” means the federal and/or state and/or local Tax
Return, as applicable, of the Corporate Taxpayer filed with respect to Taxes of any Taxable Year. 
 “Cumulative Net Realized Tax
Benefit” for a Taxable Year means the cumulative amount of Realized Tax Benefits for all Taxable Years of the Corporate Taxpayer, up to and including such Taxable Year, net of the cumulative amount of Realized Tax Detriments for the same
period. The Realized Tax Benefit and Realized Tax Detriment for each Taxable Year shall be determined based on the most recent Tax Benefit Schedule or Amended Schedule, if any, in existence at the time of such determination. 

  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 “Default Rate” means LIBOR plus 500 basis points. 

“Determination” shall have the meaning ascribed to such term in Section 1313(a) of the Code or similar provision of
state and local tax law, as applicable, or any other event (including the execution of IRS Form 870-AD) that finally and conclusively establishes the amount of any liability for Tax. 

“Dispute” has the meaning set forth in Section 7.8(a) of this Agreement. 

“Early Termination Date” means the date of an Early Termination Notice for purposes of determining the Early Termination
Payment. 
 “Early Termination Effective Date” is defined in Section 4.2 of this Agreement. 

“Early Termination Notice” is defined in Section 4.2 of this Agreement. 

“Early Termination Schedule” is defined in Section 4.2 of this Agreement. 

“Early Termination Payment” is defined in Section 4.3(b) of this Agreement. 

“Early Termination Rate” means the lesser of (i) 6.5% per annum, compounded annually, and (ii) LIBOR plus 100 basis
points. 
 “Existing GA Owners” is defined in the Recitals of this Agreement. 

“Expert” is defined in Section 7.9 of this Agreement. 

“GA Corporate Member” is defined in the Recitals of this Agreement. 

“GA ITR Entity” is defined in the Recitals of this Agreement. 

“HF Corporate Member” is defined in the Recitals of this Agreement. 

“H&F GP” is defined in the Recitals of this Agreement. 

“HF Harrington” is defined in the Recitals of this Agreement. 

“HF ITR Entity” is defined in the Recitals of this Agreement. “HF Members” is defined in the Recitals of this
Agreement. 
 “HF Non-Corporate Members” is defined in the Recitals of this
Agreement. 
 “HLTH Merger Agreement” means the Amended and Restated Agreement and Plan of Merger, dated as of
November 15, 2006, among Emdeon Corporation (now known as HLTH), EBS, EBS Acquisition LLC (the predecessor of the Corporate Taxpayer) and certain other parties. 

  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 “Hypothetical Tax Liability” means, with respect to any Taxable Year, the
liability for Taxes of (i) the Corporate Taxpayer and (ii) without duplication, EBS, but only with respect to Taxes imposed on EBS and allocable to the Corporate Taxpayer or to the other members of the consolidated group of which the
Corporate Taxpayer is the parent, in each case using the same methods, elections, conventions and similar practices used on the relevant Corporate Taxpayer Return, but (i) using the Non-Stepped Up Tax
Basis, (ii) without taking into account the use of available NOLs, if any, and (iii) excluding any deduction attributable to Imputed Interest; provided, that the Non-Stepped Up Tax Basis and
NOLs shall be based on the IPO Date Asset Disclosure Letter including amendments thereto. For the avoidance of doubt, Hypothetical Tax Liability shall be determined without taking into account the carryover or carryback of any Tax item (or portions
thereof) that is attributable to the NOLs, the Pre-IPO Basis Adjustment or Imputed Interest. 

“Imputed Interest” shall mean any interest imputed under Section 1272, 1274 or 483 or other provision of the Code and
any similar provision of state and local tax law with respect to the Corporate Taxpayer’s payment obligations under this Agreement. 

“Investors Tax Receivable Agreement (Exchanges)” means the Amended and Restated Tax Receivable Agreement (Exchanges), dated
as of November 2, 2011, by and among the Corporate Taxpayer, HF ITR Entity, BX ITR Entity and the ITR Entity. 
 “IPO”
means the initial public offering of Class A common stock by the Corporate Taxpayer that occurred on the IPO Date. 
 “IPO
Date” means August 11, 2009. 
 “IPO Date Asset” means an asset that was held by EBS, or by any of its direct
or indirect subsidiaries treated as a partnership or disregarded entity for purposes of the applicable Tax, immediately prior to the IPO Date (“IPO Date Asset”). An IPO Date Asset also includes any asset that is “substituted
basis property” under Section 7701(a)(42) of the Code with respect to an IPO Date Asset. 
 “IPO Date Asset Disclosure
Letter” is defined in Section 2.1 of this Agreement. 
 “IRS” means the United States Internal Revenue
Service. 
 “ITR Entity” is defined in the Recitals of this Agreement. 

“LIBOR” means during any period, an interest rate per annum equal to the one-year
LIBOR reported, on the date two days prior to the first day of such period, on the Telerate Page 3750 (or if such screen shall cease to be publicly available, as reported on Reuters Screen page “LIBOR01” or by any other publicly available
source of such market rate) for London interbank offered rates for United States dollar deposits for such period. 

  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 “LLC Agreement” means, with respect to EBS, the Sixth Amended and Restated
Limited Liability Company Agreement of EBS, as amended from time to time. 
 “Management Tax Receivable Agreement” means
the Tax Receivable Agreement (Management), dated as of August 17, 2009, by and among the Corporate Taxpayer and certain members of the senior management of EBS, as amended , restated, supplemented or modified. 

“Material Objection Notice” has the meaning set forth in Section 4.2 of this Agreement. 

“Medifax Restructuring” means the distribution of the stock of Medifax-EDI Holding
Company by Emdeon Business Services LLC to EBS followed by the distribution of such stock by EBS to the Corporate Taxpayer. 

“Members” means the HF Non-Corporate Members, the HF Corporate Member and the GA
Corporate Member. 
 “NOLs” is defined in the Recitals of this Agreement. 

“Non-Stepped Up Tax Basis” means, with respect to any IPO Date Asset at any time, the
Tax basis that such asset would have had at such time if no Pre-IPO Basis Adjustments had been made. 

“Objection Notice” has the meaning set forth in Section 2.3(a) of this Agreement. 

“Parent” means Beagle Parent Corp. 

“Payment Date” means any date on which a payment is required to be made pursuant to this Agreement. 

“Person” means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust,
business association, organization, governmental entity or other entity. 
 “Purchase Agreement” means the Securities
Purchase Agreement, dated as of February 8, 2008, by and among I-ILTH, EBS, the GA Corporate Member, H&F Harrington MV I, L.P., HFCP, HFCA, HFCE and certain other parties. 

“Realized Tax Benefit” means, for a Taxable Year, the excess, if any, of the Hypothetical Tax Liability over the actual
liability for Taxes of (i) the Corporate Taxpayer and (ii) without duplication, EBS, but only with respect to Taxes imposed on EBS and allocable to the Corporate Taxpayer or to the other members of the consolidated group of which the
Corporate Taxpayer is the parent for such Taxable Year. If all or a portion of the actual liability for such Taxes for the Taxable Year arises as a result of an audit by a Taxing Authority of any Taxable Year, such liability shall not be included in
determining the Realized Tax Benefit unless and until there has been a Determination. 

  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 “Realized Tax Detriment” means, for a Taxable Year, the excess, if any, of
the actual liability for Taxes of (i) the Corporate Taxpayer and (ii) without duplication, EBS, but only with respect to Taxes imposed on EBS and allocable to the Corporate Taxpayer or to the other members of the consolidated group of
which the Corporate Taxpayer is the parent for such Taxable Year, over the Hypothetical Tax Liability for such Taxable Year. If all or a portion of the actual liability for such Taxes for the Taxable Year arises as a result of an audit by a Taxing
Authority of any Taxable Year, such liability shall not be included in determining the Realized Tax Detriment unless and until there has been a Determination. 

“Reconciliation Dispute” has the meaning set forth in Section 7.9 of this Agreement. 

“Reconciliation Procedures” has the meaning set forth in Section 2.3(a) of this Agreement. 

“Reorganization” is defined in the Recitals of this Agreement. 

“Schedule” means any of the following: (i) the IPO Date Asset Disclosure Letter, (ii) a Tax Benefit Schedule, or
(iii) the Early Termination Schedule. 
 “Senior Obligations” is defined in Section 5.1 of this Agreement. 

“Subsequent IPO” means the initial public offering and sale of the common stock of the Corporate Taxpayer, Parent or any
other direct or indirect parent company of the Corporate Taxpayer (or any of their successors) that occurs subsequent to the transactions contemplated by the Beagle Merger Agreement. 

“Subsidiaries” means, with respect to any Person, as of any date of determination, any other Person as to which such Person,
owns, directly or indirectly, or otherwise controls more than 50% of the voting power or other similar interests or the sole general partner interest or managing member or similar interest of such Person. 

“Subsidiary Stock” means any stock or other equity interest in any subsidiary entity of EBS that is treated as a corporation
for United States federal income tax purposes. 
 “Tax Benefit Payment” is defined in Section 3.1(b) of this
Agreement. 
 “Tax Benefit Schedule” is defined in Section 2.2 of this Agreement. 

“Tax Receivable Agreements” shall mean this Agreement, the Investors Tax Receivable Agreement (Exchanges) and the Management
Tax Receivable Agreement. 
 “Tax Return” means any return, declaration, report or similar statement required to be filed
with respect to Taxes (including any attached schedules), including, without limitation, any information return, claim for refund, amended return and declaration of estimated Tax. 

“Taxable Year” means a taxable year of the Corporate Taxpayer as defined in Section 441(b) of the Code or comparable
section of state or local tax law, as applicable (and, therefore, for the avoidance of doubt, may include a period of less than 12 months for which a Tax Return is made), ending on or after the IPO Date. 

  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 “Taxes” means any and all United States federal, state and local taxes,
assessments or similar charges that are based on or measured with respect to net income or profits, and any interest related to such Tax. 

“Taxing Authority” shall mean any domestic, federal, national, state, county or municipal or other local government, any
subdivision, agency, commission or authority thereof, or any quasi-governmental body exercising any taxing authority or any other authority exercising Tax regulatory authority. 

“Treasury Regulations” means the final, temporary and proposed regulations under the Code promulgated from time to time
(including corresponding provisions and succeeding provisions) as in effect for the relevant taxable period. 
 “Valuation
Assumptions” shall mean, as of an Early Termination Date, the assumptions that (1) in each Taxable Year ending on or after such Early Termination Date, the Corporate Taxpayer will have taxable income sufficient to fully utilize
(i) the NOLs that have not been previously utilized in determining a Tax Benefit Payment under this Agreement, subject to all applicable limitations on the use of such NOLs and to assumption (3) below, and (ii) deductions arising from
the Pre-IPO Basis Adjustments and the Imputed Interest during such Taxable Year or future Taxable Years in which such deductions would become available, (2) the United States federal income tax rates and
state and local income tax rates that will be in effect for each such Taxable Year will be those specified for each such Taxable Year by the Code and other law as in effect on the Early Termination Date, and (3) any NOLs or loss carryovers
generated by any Pre-IPO Basis Adjustment or Imputed Interest and available as of the date of the Early Termination Schedule will be utilized by the Corporate Taxpayer on a pro rata basis from the date of the
Early Termination Schedule through the scheduled expiration date of such NOLs or loss carryovers. 
 ARTICLE II 

DETERMINATION OF CERTAIN REALIZED TAX BENEFIT 

Section 2.1. Pre-IPO Basis Adjustment. The letter dated August 17, 2009 from the ITR
Entity to the Corporate Taxpayer shows, in reasonable detail necessary to perform the calculations required by this Agreement, including a breakdown by each party to which Pre-IPO Basis Adjustments or NOLs are
attributable, for purposes of Taxes, estimates of (i) the Non-Stepped Up Tax Basis, (ii) the Pre-IPO Basis Adjustments, calculated in the aggregate,
(iii) the period (or periods) over which the IPO Date Assets are amortizable and/or depreciable, (iv) the period (or periods) over which each Pre-IPO Basis Adjustment is amortizable and/or
depreciable, (v) the NOLs that are attributable to the Corporate Taxpayer, the GA Corporate Member and the HF Corporate Member as of the date of the Reorganization or the IPO Date, as the case may be, using the closing-the-books methodology, and (vi) the scheduled expiration date (or dates) of the NOLs (the “IPO Date Asset Disclosure Letter”). As promptly as practicable, the ITR Entity and the
Corporate Taxpayer shall agree on a replacement IPO Date Asset Disclosure Letter that reflects any adjustments necessary as a result of the IPO. 

  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
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 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 Section 2.2. Tax Benefit Schedule. 

(a) Tax Benefit Schedule. Within 90 calendar days after the filing of the United States federal income tax return of the Corporate
Taxpayer for any Taxable Year in which there is a Realized Tax Benefit or Realized Tax Detriment, the Corporate Taxpayer shall provide to the ITR Entity a schedule showing, in reasonable detail, the calculation of the Realized Tax Benefit or
Realized Tax Detriment for such Taxable Year (a “Tax Benefit Schedule”). The Tax Benefit Schedule will become final as provided in Section 2.3(a) and may be amended as provided in Section 2.3(b) (subject to the procedures
set forth in Section 2.3(b)). 
 (b) Applicable Principles. Subject to Section 3.3(a), the Realized Tax Benefit or Realized
Tax Detriment for each Taxable Year is intended to measure the decrease or increase in the actual liability for Taxes of the Corporate Taxpayer for such Taxable Year attributable to the NOLs, the Pre-IPO Basis
Adjustments and Imputed Interest, determined using a “with and without” methodology. For the avoidance of doubt, the actual liability for Taxes will take into account the deduction of the portion of the Tax Benefit Payment that must be
accounted for as interest under the Code based upon the characterization of Tax Benefit Payments as additional consideration payable by the Corporate Taxpayer for the acquisition of the shares or assets of the GA Corporate Member or the HF Corporate
Member in connection with the Reorganization. Carryovers or carrybacks of any Tax item attributable to the NOLs, the Pre-IPO Basis Adjustment and Imputed Interest shall be considered to be subject to the rules
of the Code and the Treasury Regulations or the appropriate provisions of U.S. state and local income and franchise tax law, as applicable, governing the use, limitation and expiration of carryovers or carrybacks of the relevant type. If a carryover
or carryback of any Tax item includes a portion that is attributable to the NOLs, the Pre-IPO Basis Adjustment or Imputed Interest and another portion that is not, such portions shall be considered to be used
in accordance with the “with and without” methodology. 
 Section 2.3. Procedures, Amendments.  

(a) Procedure. Every time the Corporate Taxpayer delivers to the ITR Entity an applicable Schedule under this Agreement, including any
Amended Schedule delivered pursuant to Section 2.3(b), but excluding any Early Termination Schedule or amended Early Termination Schedule, the Corporate Taxpayer shall also (x) deliver to the ITR Entity schedules and work papers, as
determined by the Corporate Taxpayer or requested by the ITR Entity, providing reasonable detail regarding the preparation of the Schedule and (y) allow the ITR Entity reasonable access at no cost to the appropriate representatives at the
Corporate Taxpayer, as determined by the Corporate Taxpayer or requested by the ITR Entity, in connection with a review of such Schedule. Without limiting the application of the preceding sentence, each time the Corporate Taxpayer delivers to the
ITR Entity a Tax Benefit Schedule, in addition to the Tax Benefit Schedule duly completed, the Corporate Taxpayer shall deliver to the ITR Entity the Corporate Taxpayer Return, the reasonably detailed calculation by the Corporate Taxpayer of the
Hypothetical Tax Liability, the reasonably detailed calculation by the Corporate Taxpayer of the actual Tax liability, as well as any other work papers as determined by the Corporate Taxpayer or requested by the ITR Entity. An applicable Schedule or
amendment thereto shall become final and binding on all parties 30 calendar days from the first date on which the ITR Entity has received the applicable Schedule or amendment thereto unless the ITR Entity (i) within 30 calendar days after
receiving an applicable Schedule or amendment thereto, provides the Corporate Taxpayer with notice of a material objection to such Schedule (“Objection Notice”) 

  
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made in good faith or (ii) provides a written waiver of such right of any Objection Notice within the period described in clause (i) above, in which case such Schedule or amendment
thereto becomes binding on the date the waiver is received by the Corporate Taxpayer. If the parties, for any reason, are unable to successfully resolve the issues raised in the Objection Notice within 30 calendar days after receipt by the Corporate
Taxpayer of an Objection Notice, the Corporate Taxpayer and the ITR Entity shall employ the reconciliation procedures as described in Section 7.9 of this Agreement (the “Reconciliation Procedures”). 

(b) Amended Schedule. The applicable Schedule for any Taxable Year may be amended from time to time by the Corporate Taxpayer
(i) in connection with a Determination affecting such Schedule, (ii) to correct inaccuracies in the Schedule identified as a result of the receipt of additional factual information relating to a Taxable Year after the date the Schedule was
provided to the ITR Entity, (iii) to comply with the Expert’s determination under the Reconciliation Procedures, (iv) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to a
carryback or carryforward of a loss or other tax item to such Taxable Year, or (v) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to an amended Tax Return filed for such Taxable Year
(any such Schedule, an “Amended Schedule”). The IPO Date Asset Disclosure Letter shall be appropriately amended by the ITR Entity and the Corporate Taxpayer to the extent that, as a result of a Determination the Corporate Taxpayer
is required to calculate its Tax liability in a manner inconsistent with the IPO Date Asset Disclosure Letter. 
 ARTICLE III 

TAX BENEFIT PAYMENTS 

Section 3.1. Payments. 

(a) Payments. Within five (5) calendar days after a Tax Benefit Schedule delivered to the ITR Entity becomes final in accordance
with Section 2.3(a), the Corporate Taxpayer shall pay to the ITR Entity for such Taxable Year the Tax Benefit Payment determined pursuant to Section 3.1(b). Each such Tax Benefit Payment shall be made by wire transfer of immediately
available funds to the bank account previously designated by the ITR Entity to the Corporate Taxpayer or as otherwise agreed by the Corporate Taxpayer and the ITR Entity. For the avoidance of doubt, no Tax Benefit Payment shall be made in respect of
estimated tax payments, including, without limitation, federal estimated income tax payments. Notwithstanding anything herein to the contrary, in no event shall the aggregate Tax Benefit Payments (including Tax Benefit Payments previously made
pursuant to the Original Agreement) (excluding any amount accounted for as interest under the Code) exceed $96,000,000 in respect of the Corporate Taxpayer, $63,000,000 in respect of the GA Corporate Member, and $53,000,000 in respect of the HF
Corporate Member. 
 (b) A “Tax Benefit Payment” means an amount, not less than zero, equal to the sum of the Net Tax
Benefit and the Interest Amount. For the avoidance of doubt, for Tax purposes, the Interest Amount shall not be treated as interest but shall instead be treated as additional consideration for the acquisition of the assets or stock of the GA
Corporate Member, the HF Corporate Member in connection with the IPO and the Reorganization, unless otherwise required by law. Subject to Section 3.3(a), the “Net Tax Benefit” for a Taxable Year shall be an amount


  
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equal to the excess, if any, of 85% of the Cumulative Net Realized Tax Benefit as of the end of such Taxable Year over the total amount of payments previously made under this Section 3.1
(excluding payments attributable to Interest Amounts); provided, for the avoidance of doubt, that the ITR Entity shall not be required to return any portion of any previously made Tax Benefit Payment. The “Interest Amount”
shall equal the interest on the Net Tax Benefit calculated at the Agreed Rate from the due date (without extensions) for filing the Corporate Taxpayer Return with respect to Taxes for such Taxable Year until the Payment Date. Notwithstanding the
foregoing, for each Taxable Year ending on or after the date of a Change of Control, all Tax Benefit Payments shall be calculated by utilizing Valuation Assumptions (1) and (3), substituting in each case the terms “the closing date of a
Change of Control” for an “Early Termination Date.” 
 Section 3.2. No Duplicative Payments. It is intended that
the provisions of this Agreement will not result in duplicative payment of any amount (including interest) required under this Agreement. It is also intended that the provisions of this Agreement provide that Tax Benefit Payments are paid to the ITR
Entity pursuant to this Agreement. The provisions of this Agreement shall be construed in the appropriate manner to ensure such intentions are realized. 

Section 3.3. Pro Rata Payments; Coordination of Benefits With Other Tax Receivable Agreements. 

(a) Notwithstanding anything in Section 3.1 to the contrary, to the extent that the aggregate tax benefit of the Corporate Taxpayer’s
deduction with respect to the NOLs, the Pre-IPO Basis Adjustments, the Basis Adjustments or Imputed Interest under the Tax Receivable Agreements (as such terms are defined in each Tax Receivable Agreement) is
limited in a particular Taxable Year because the Corporate Taxpayer does not have sufficient taxable income, the limitation on the tax benefit for the Corporate Taxpayer shall be allocated among the Tax Receivable Agreements (and among all parties
eligible for payments thereunder) in proportion to the respective amounts of Realized Tax Benefits that would have been determined under the Tax Receivable Agreements if the Corporate Taxpayer had sufficient taxable income so that there were no such
limitation. 
 (b) If for any reason the Corporate Taxpayer does not fully satisfy its payment obligations to make all Tax Benefit Payments
due under the Tax Receivable Agreements in respect of a particular Taxable Year, then the Corporate Taxpayer and the ITR Entity agree that (i) the Corporate Taxpayer shall pay the same proportion of each Tax Benefit Payment due under each of
the Tax Receivable Agreements in respect of such Taxable Year, without favoring one obligation over the other, and (ii) no Tax Benefit Payment shall be made in respect of any Taxable Year until all Tax Benefit Payments in respect of prior
Taxable Years have been made in full. 
 (c) To the extent that the Corporate Taxpayer makes payments to the ITR Entity in respect of a
particular Taxable Year in an amount greater than the payments that should have been made in accordance with Section 3.3(b), then the ITR Entity shall be obligated to make payments to the parties to the other Tax Receivable Agreements (other
than the Corporate Taxpayer) in the amounts necessary so that each party to the Tax Receivable Agreements shall have received the amount that it would have received if all payments by the Corporate Taxpayer had been in accordance with
Section 3.3(b); provided, that the ITR Entity’s obligation to pay over to the parties to the other Tax Receivable Agreements amounts received from the Corporate Taxpayer pursuant to this Section 3.3(c) shall terminate on the
one year anniversary of the receipt by the ITR Entity of such amounts. 

  
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 (d) The parties hereto agree that the parties to the Investors Tax Receivable Agreement
(Exchanges) and the parties to the Management Tax Receivable Agreement are expressly made third party beneficiaries of the provisions of this Section 3.3. 

ARTICLE IV 
 TERMINATION

 Section 4.1. Early Termination and Breach of Agreement. 

(a) The Corporate Taxpayer may terminate this Agreement with respect to all amounts payable to the ITR Entity at any time by paying to the ITR
Entity the Early Termination Payment; provided, that the Corporate Taxpayer may withdraw any notice to execute its termination rights under this Section 4.1(a) prior to the time at which any Early Termination Payment has been paid. Upon
payment of the Early Termination Payment by the Corporate Taxpayer, neither the ITR Entity nor the Corporate Taxpayer shall have any further payment obligations under this Agreement, other than for any (a) Tax Benefit Payment agreed to by the
Corporate Taxpayer and the ITR Entity as due and payable but unpaid as of the Early Termination Notice and (b) Tax Benefit Payment due for the Taxable Year ending with or including the date of the Early Termination Notice (except to the extent
that the amount described in this clause (b) is included in the Early Termination Payment). 
 (b) In the event that the Corporate
Taxpayer breaches any of its material obligations under this Agreement, whether as a result of failure to make any payment when due, failure to honor any other material obligation required hereunder or by operation of law as a result of the
rejection of this Agreement in a case commenced under the Bankruptcy Code or otherwise, then all obligations hereunder shall be accelerated and such obligations shall be calculated as if an Early Termination Notice had been delivered on the date of
such breach and shall include, but not be limited to, (1) the Early Termination Payment calculated as if an Early Termination Notice had been delivered on the date of a breach, (2) any Tax Benefit Payment agreed to by the Corporate
Taxpayer and the ITR Entity as due and payable but unpaid as of the date of a breach with respect to any Taxable Year prior to the Taxable Year ending with or including the date of a breach, and (3) any Tax Benefit Payment due for the Taxable
Year ending with or including the date of a breach but reduced by any amount with respect to the portion of such Taxable Year beginning after the date of such breach taken into account for purposes of determining the amount due under clause
(1) of this sentence. Notwithstanding the foregoing, in the event that the Corporate Taxpayer breaches this Agreement, the ITR Entity shall be entitled to elect to receive the amounts set forth in clauses (1), (2) and (3) above or to seek
specific performance of the terms hereof. The parties agree that the failure to make any payment due pursuant to this Agreement within three months of the date such payment is due shall be deemed to be a breach of a material obligation under this
Agreement for all purposes of this Agreement, and that it will not be considered to be a breach of a material obligation under this Agreement to make a payment due pursuant to this Agreement within three months of the date such payment is due.


  
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Notwithstanding anything in this Agreement to the contrary, it shall not be a breach of this Agreement if the Corporate Taxpayer fails to make any Tax Benefit Payment when due to the extent that
the Corporate Taxpayer has insufficient funds to make such payment; provided that the interest provisions of Section 5.2 shall apply to such late payment (unless the Corporate Taxpayer does not have sufficient cash to make such payment
as a result of limitations imposed by any credit agreement to which the Corporate Taxpayer or any of its Subsidiaries is a party, in which case Section 5.2 shall apply, but the Default Rate shall be replaced by LIBOR plus 300 basis points).

 Section 4.2. Early Termination Notice. 

(a) If the Corporate Taxpayer chooses to exercise its right of early termination under Section 4.1 above other than in connection with a
Change of Control or Subsequent IPO, the Corporate Taxpayer shall deliver to the ITR Entity notice of such intention to exercise such right (“Early Termination Notice”) and a schedule (the “Early Termination
Schedule”) specifying the Corporate Taxpayer’s intention to exercise such right and showing in reasonable detail the calculation of the Early Termination Payment for the ITR Entity. The Early Termination Schedule shall become final and
binding on all parties 30 calendar days from the first date on which the ITR Entity has received such Schedule or amendment thereto unless the ITR Entity (i) within 30 calendar days after receiving the Early Termination Schedule, provides the
Corporate Taxpayer with notice of a material objection to such Schedule made in good faith (“Material Objection Notice”) or (ii) provides a written waiver of such right of a Material Objection Notice within the period described
in clause (i) above, in which case such Schedule becomes binding on the date the waiver is received by the Corporate Taxpayer (the “Early Termination Effective Date”). If the parties, for any reason, are unable to successfully
resolve the issues raised in such notice within 30 calendar days after receipt by the Corporate Taxpayer of the Material Objection Notice, the Corporate Taxpayer and the ITR Entity shall employ the Reconciliation Procedures. 

(b) If the Corporate Taxpayer chooses to exercise its right of early termination under Section 4.1 above in connection with a Change of
Control or Subsequent IPO, any reference to 30 calendar days in Section 4.2(a) above shall instead be deemed to be 10 calendar days. 

Section 4.3. Payment upon Early Termination. 

(a) Within three calendar days after the Early Termination Effective Date, the Corporate Taxpayer shall pay to the ITR Entity an amount equal
to the Early Termination Payment. Such payment shall be made by wire transfer of immediately available funds to a bank account or accounts designated by the ITR Entity or as otherwise agreed by the Corporate Taxpayer and the ITR Entity. 

(b) “Early Termination Payment” shall equal the present value, discounted at the Early Termination Rate as of the Early
Termination Effective Date, of all Tax Benefit Payments that would be required to be paid by the Corporate Taxpayer to the ITR Entity beginning from the Early Termination Date and assuming that the Valuation Assumptions are applied,
provided, that the Change of Control Termination Rate (instead of the Early Termination Rate) shall be used to determine the Early Termination Payment in the case of an early termination in connection with a Change of Control or
Subsequent IPO. 

  
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 ARTICLE V 

SUBORDINATION AND LATE PAYMENTS 

Section 5.1. Subordination. Notwithstanding any other provision of this Agreement to the contrary, any payment required to be made
by the Corporate Taxpayer under this Agreement shall rank subordinate and junior in right of payment to any principal, interest or other amounts due and payable in respect of any obligations in respect of indebtedness for borrowed money of the
Corporate Taxpayer and its Subsidiaries (“Senior Obligations”) and shall rank pari passu with all current or future unsecured obligations of the Corporate Taxpayer that are not Senior Obligations. 

Section 5.2. Late Payments by the Corporate Taxpayer. The amount of all or any portion of any Tax Benefit Payment or Early
Termination Payment not made to the ITR Entity when due under the terms of this Agreement shall be payable together with any interest thereon, computed at the Default Rate and commencing from the date on which such Tax Benefit Payment or Early
Termination Payment was due and payable. 
 ARTICLE VI 

NO DISPUTES; CONSISTENCY; COOPERATION 

Section 6.1. Participation in the Corporate Taxpayer’s and EBS’s Tax Matters. Except as otherwise provided herein, the
Corporate Taxpayer shall have full responsibility for, and sole discretion over, all Tax matters concerning the Corporate Taxpayer and EBS, including without limitation the preparation, filing or amending of any Tax Return and defending, contesting
or settling any issue pertaining to Taxes. Notwithstanding the foregoing, the Corporate Taxpayer shall notify the ITR Entity of, and keep the ITR Entity reasonably informed with respect to, the portion of any audit of the Corporate Taxpayer and EBS
by a Taxing Authority the outcome of which is reasonably expected to affect the rights and obligations of the ITR Entity under this Agreement, and shall provide to the ITR Entity reasonable opportunity to provide information and other input to the
Corporate Taxpayer, EBS and their respective advisors concerning the conduct of any such portion of such audit; provided, however, that the Corporate Taxpayer and EBS shall not be required to take any action that is inconsistent with
any provision of the LLC Agreement. 
 Section 6.2. Consistency. The Corporate Taxpayer and the ITR Entity agree to report and
cause to be reported for all purposes, including federal, state and local Tax purposes and financial reporting purposes, all Tax-related items (including, without limitation, the
Pre-IPO Basis Adjustments and each Tax Benefit Payment) in a manner consistent with that specified by the Corporate Taxpayer in any Schedule required to be provided by or on behalf of the Corporate Taxpayer
under this Agreement unless otherwise required by law. 
 Section 6.3. Cooperation. The ITR Entity shall (a) furnish to the
Corporate Taxpayer in a timely manner such information, documents and other materials as the Corporate Taxpayer may reasonably request for purposes of making any determination or computation necessary or appropriate under this Agreement, preparing
any Tax Return or contesting or defending any audit, examination or controversy with any Taxing Authority, (b) make itself available to the Corporate Taxpayer and its representatives to provide explanations of documents and materials


  
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and such other information as the Corporate Taxpayer or its representatives may reasonably request in connection with any of the matters described in clause (a) above, and
(c) reasonably cooperate in connection with any such matter, and the Corporate Taxpayer shall reimburse the ITR Entity for any reasonable third-party costs and expenses incurred pursuant to this Section. 

Section 6.4. Medifax Restructuring. 

(a) The Corporate Taxpayer shall promptly seek a legal opinion from a qualified firm mutually agreeable to the H&F ITR Entity and the BX
ITR Entity regarding the federal income tax consequences of the Medifax Restructuring, such restructuring to be in the form proposed by the BX ITR Entity and mutually agreeable to the H&F ITR Entity. If such opinion is at least “more likely
than not” that the Medifax Restructuring would have the intended federal income tax consequences (“Medifax Opinion”), the Corporate Taxpayer shall proceed to effectuate the Medifax Restructuring. 

(b) If a tax reserve relating to the intended income tax consequences of the Medifax Restructuring is established or increased subsequent to
the consummation thereof, any Tax Benefit Payment attributable to the Medifax Restructuring will be reduced by an amount equal to such Tax Benefit Payment attributable to the Medifax Restructuring (without regard to this provision) multiplied by the
ratio of (i) the tax reserve attributable to the Medifax Restructuring divided by (ii) the total amount of Tax Benefit Payments reasonably projected to be made attributable to the Medifax Restructuring resulting from the reallocation among
assets of previous adjustments made under Section 743(b) of the Code (the “743(b) Reallocation”). To the extent that the tax reserve attributable to the Medifax Restructuring is decreased, the Tax Benefit Payments attributable to the
Medifax Restructuring will be increased as of the time Tax Benefit Payments are next made by the amount of additional Tax Benefit Payments that would have been made previously had such decreased amount of the reserve never been recorded as a
reserve, together with interest at a rate of LIBOR plus 300 basis points, calculated from the time such additional Tax Benefit Payments would have been paid in the absence of such decreased reserve to the time that such Tax Benefit Payments are
actually paid. In the event that a tax reserve is recorded with respect to the Medifax Restructuring, the deductions attributable to the 743(b) Reallocation shall be deemed for purposes of this Agreement to be, among those deductions that produce
Tax Benefit Payments under this Agreement, to be the last such deductions used to offset taxable income. The cumulative, net amount of Tax Benefit Payments reduced pursuant to this provision shall not exceed the amount of tax reserves attributable
to the Medifax Restructuring. 
 (c) In the event that the Internal Revenue Service issues an Information Document Request (“IDR”)
relating to, or a 30-day letter, 90-day letter or other form of written communication identifying as an issue, the 743(b) Reallocation (any such written communication, a “Written IRS Notice”), the
obligation of the Corporate Taxpayer to make Tax Benefit Payments with respect to the 743(b) Reallocation shall be suspended indefinitely as of Parent or Corporate Taxpayer’s receipt of such Written IRS Notice. To the extent that the request or
issue relating to such 743(b) Reallocation is resolved in favor of Parent and the Corporate Taxpayer, Tax Benefit Payments attributable to the 743(b) Reallocation will be resumed and will be increased as of the time that Tax Benefit Payments are
next made by the amount of additional Tax Benefit Payments that would have been made previously had the Tax 

  
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Benefit Payments attributable to the 743(b) Reallocation never been suspended, together with interest at a rate of LIBOR plus 300 basis, calculated from the time any such additional Tax Benefit
Payment would have been paid in the absence of such suspension to the time that such Tax Benefit Payment is actually paid. 
 (d) Payments
under Article III of the Tax Receivable Agreements shall be reduced, pro rata, by 85% of any tax cost (such as state and local taxes) resulting from the Medifax Restructuring, provided, that such reduction shall in no event exceed the amounts
payable under the Tax Receivable Agreements solely as a result of the Medifax Restructuring. 
 (e) In the event that the Medifax
Restructuring occurs, Parent and the Corporate Taxpayer will not liquidate Medifax-EDI Holding Company for a period of at least 24 months after the Medifax Restructuring is consummated. 

ARTICLE VII 

MISCELLANEOUS 

Section 7.1. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be
deemed duly given and received (a) on the date of delivery if delivered personally, or by facsimile upon confirmation of transmission by the sender’s fax machine if sent on a Business Day (or otherwise on the next Business Day) or
(b) on the first Business Day following the date of dispatch if delivered by a recognized next-day courier service. All notices hereunder shall be delivered as set forth below, or pursuant to such other
instructions as may be designated in writing by the party to receive such notice: 
 If to the Corporate Taxpayer, to: 

3055 Lebanon Pike, Suite 1000 

Nashville, TN 37214 
 Telephone:
[Phone Number] 
 Facsimile: (615) 340-6153 

Attention: General Counsel 

with a copy (which shall not constitute notice to the Corporate Taxpayer) to: 

Paul, Weiss, Rifkind, Wharton & Garrison LLP 

1285 Avenue of the Americas New York, NY 10019-6064 

Telephone: [Phone Number] 

Facsimile: (212) 757-3990 

Attention: John C. Kennedy, Esq. 

If to the ITR Entity, to: 
 c/o
The Blackstone Group 
 345 Park Avenue 

New York, NY 10154 
 Facsimile:
(212) 583-5749 
 Attention: John G. Finley, General Counsel 

  
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 c/o Hellman & Friedman LLC 

One Maritime Plaza 
 12th Floor

 San Francisco, CA 94111 

Telephone: [Phone Number] 

Facsimile: (415) 788-0176 

Attention: Arrie Park, General Counsel 
 Any
party may change its address or fax number by giving the other party written notice of its new address or fax number in the manner set forth above. 

Section 7.2. Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and
the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart. Delivery of an executed
signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement. 

Section 7.3. Entire Agreement; No Third Party Beneficiaries. This Agreement constitutes the entire agreement and supersedes all
prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. Except to the extent provided under Section 3.3, this Agreement shall be binding upon and inure solely to the benefit of
each party hereto and their respective successors and permitted assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement. 
 Section 7.4. Governing Law. This Agreement shall be governed by, and construed in accordance with, the law
of the State of New York, without regard to the conflicts of laws principles thereof that would mandate the application of the laws of another jurisdiction. 

Section 7.5. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by
any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. 

Section 7.6. Successors; Assignment; Amendments; Waivers. 

(a) The ITR Entity may assign any of its rights under this Agreement to any Person as long as such transferee has executed and delivered, or,
in connection with such transfer, executes and delivers, a joinder to this Agreement, in form and substance reasonably satisfactory to the Corporate Taxpayer, agreeing to become an ITR Entity for all purposes of this Agreement, except as otherwise
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 (b) No provision of this Agreement may be amended unless such amendment is approved in
writing by both the Corporate Taxpayer and the ITR Entity. No provision of this Agreement may be waived unless such waiver is in writing and signed by the party against whom the waiver is to be effective. 

(c) All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the
parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. The Corporate Taxpayer shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or
otherwise) to all or substantially all of the business or assets of the Corporate Taxpayer, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Corporate Taxpayer would be
required to perform if no such succession had taken place. For the avoidance of doubt, Parent shall expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Corporate Taxpayer would be required to
perform. 
 Section 7.7. Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience
of reference only and are not to be considered in construing this Agreement. 
 Section 7.8. Resolution of Disputes. 

(a) Any and all disputes which cannot be settled amicably, including any ancillary claims of any party, arising out of, relating to or in
connection with the validity, negotiation, execution, interpretation, performance or non-performance of this Agreement (including the validity, scope and enforceability of this arbitration provision) (each a
“Dispute”) shall be finally settled by arbitration conducted by a single arbitrator in New York in accordance with the then-existing Rules of Arbitration of the International Chamber of Commerce. If the parties to the Dispute fail
to agree on the selection of an arbitrator within ten (10) days of the receipt of the request for arbitration, the International Chamber of Commerce shall make the appointment. The arbitrator shall be a lawyer admitted to the practice of law in
the State of New York and shall conduct the proceedings in the English language. Performance under this Agreement shall continue if reasonably possible during any arbitration proceedings. 

(b) Notwithstanding the provisions of paragraph (a), the Corporate Taxpayer may bring an action or special proceeding in any court of competent
jurisdiction for the purpose of compelling a party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder, and/or enforcing an arbitration award and, for the purposes of this paragraph (b), the ITR Entity
(i) expressly consents to the application of paragraph (c) of this Section 7.8 to any such action or proceeding, (ii) agrees that proof shall not be required that monetary damages for breach of the provisions of this Agreement
would be difficult to calculate and that remedies at law would be inadequate, and (iii) irrevocably appoints the Corporate Taxpayer as agent of the ITR Entity for service of process in connection with any such action or proceeding and agrees
that service of process upon such agent, who shall promptly advise the ITR Entity of any such service of process, shall be deemed in every respect effective service of process upon the ITR Entity in any such action or proceeding. 

  
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 (c) (i) EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF COURTS LOCATED IN NEW
YORK, NEW YORK FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 7.8, OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING
THIS AGREEMENT. Such ancillary judicial proceedings include any suit, action or proceeding to compel arbitration, to obtain temporary or preliminary judicial relief in aid of arbitration, or to confirm an arbitration award. The parties acknowledge
that the for a designated by this paragraph (c) have a reasonable relation to this Agreement, and to the parties’ relationship with one another; and 

(ii) The parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter may have to
personal jurisdiction or to the laying of venue of any such ancillary suit, action or proceeding brought in any court referred to in the preceding paragraph of this Section 7.8 and such parties agree not to plead or claim the same. 

Section 7.9. Reconciliation. In the event that the Corporate Taxpayer and the ITR Entity are unable to resolve a disagreement with
respect to the matters governed by Sections 2.3, 4.2 and 6.2 within the relevant period designated in this Agreement (“Reconciliation Dispute”), the Reconciliation Dispute shall be submitted for determination to a nationally
recognized expert (the “Expert”) in the particular area of disagreement mutually acceptable to both parties. The Expert shall be a partner or principal in a nationally recognized accounting or law firm, and unless the Corporate
Taxpayer and the ITR Entity agree otherwise, the Expert shall not, and the firm that employs the Expert shall not, have any material relationship with the Corporate Taxpayer or the ITR Entity or other actual or potential conflict of interest. If the
parties are unable to agree on an Expert within fifteen (15) days of receipt by the respondent(s) of written notice of a Reconciliation Dispute, the Expert shall be appointed by the International Chamber of Commerce Centre for Expertise. The
Expert shall resolve any matter relating to the IPO Date Asset Disclosure Letter or an amendment thereto or the Early Termination Schedule or an amendment thereto within 30 calendar days and shall resolve any matter relating to a Tax Benefit
Schedule or an amendment thereto within 15 calendar days or as soon thereafter as is reasonably practicable, in each case after the matter has been submitted to the Expert for resolution. Notwithstanding the preceding sentence, if the matter is not
resolved before any payment that is the subject of a disagreement would be due (in the absence of such disagreement) or any Tax Return reflecting the subject of a disagreement is due, the undisputed amount shall be paid on the date prescribed by
this Agreement and such Tax Return may be filed as prepared by the Corporate Taxpayer, subject to adjustment or amendment upon resolution. The costs and expenses relating to the engagement of such Expert or amending any Tax Return shall be borne by
the Corporate Taxpayer except as provided in the next sentence. The Corporate Taxpayer and the ITR Entity shall bear their own costs and expenses of such proceeding, unless (i) the Expert adopts the ITR Entity’s position, in which case the
Corporate Taxpayer shall reimburse the ITR Entity for any reasonable out-of-pocket costs and expenses in such proceeding, or (ii) the Expert adopts the Corporate
Taxpayer’s position, in which case the ITR Entity shall reimburse the 

  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
and associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 
Corporate Taxpayer for any reasonable out-of-pocket costs and expenses in such proceeding. Any dispute as to
whether a dispute is a Reconciliation Dispute within the meaning of this Section 7.9 shall be decided by the Expert. The Expert shall finally determine any Reconciliation Dispute and the determinations of the Expert pursuant to this
Section 7.9 shall be binding on the Corporate Taxpayer and the ITR Entity and may be entered and enforced in any court having jurisdiction. 

Section 7.10. Withholding. The Corporate Taxpayer shall be entitled to deduct and withhold from any payment payable pursuant to
this Agreement such amounts as the Corporate Taxpayer is required to deduct and withhold with respect to the making of such payment under the Code or any provision of state, local or foreign tax law. To the extent that amounts are so withheld and
paid over to the appropriate Taxing Authority by the Corporate Taxpayer, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the ITR Entity. 

Section 7.11. Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets. 

(a) If the Corporate Taxpayer is or becomes a member of an affiliated or consolidated group of corporations that files a consolidated income
tax return pursuant to Sections 1501 et seq. of the Code or any corresponding provisions of state or local law, then: (i) the provisions of this Agreement shall be applied with respect to the group as a whole; and (ii) Tax Benefit
Payments, Early Termination Payments and other applicable items hereunder shall be computed with reference to the consolidated taxable income of the group as a whole. Parent shall file a consolidated income tax return that includes the Corporate
Taxpayer and each other member of the federal consolidated income group of which the Corporate Taxpayer was the common parent prior to Parent’s acquisition of the Corporate Taxpayer, and, after the Medifax Restructuring, Parent’s federal
consolidated income group is intended to include Medifax-EDI Holding Company and its subsidiaries. 

(b) If any entity that is obligated to make a Tax Benefit Payment or Early Termination Payment hereunder transfers one or more assets to a
corporation (or a Person classified as a corporation for U.S. income tax purposes) with which such entity does not file a consolidated tax return pursuant to Section 1501 of the Code, such entity, for purposes of calculating the amount of any
Tax Benefit Payment or Early Termination Payment (e.g., calculating the gross income of the entity and determining the Realized Tax Benefit of such entity) due hereunder, shall be treated as having disposed of such asset in a fully taxable
transaction on the date of such contribution. The consideration deemed to be received by such entity shall be equal to the fair market value of the contributed asset. For purposes of this Section 7.11, a transfer of a partnership interest shall
be treated as a transfer of the transferring partner’s share of each of the assets and liabilities of that partnership. 
 (c) Until
twelve months following the consummation of the Medifax Restructuring, Parent shall not cause (i) EBS Holdco I, LLC, (“Holdco I”) or EBS Holdco II, LLC (“Holdco II”) to merge, liquidate or change its current election to be
treated as a corporation for federal income tax purposes or (ii) either of Holdco I or Holdco II to distribute their respective interests in EBS, provided, that this Section 7.11(c) shall not apply if the Corporate Taxpayer is unable to
obtain the legal opinion referred to in Section 6.4(a) within a reasonable period of time not to be less than nine months from the Closing Date. 

  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
and associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 Section 7.12. Confidentiality. The ITR Entity and each of its assignees
acknowledge and agree that the information of the Corporate Taxpayer is confidential and, except in the course of performing any duties as necessary for the Corporate Taxpayer and its Affiliates, as required by law or legal process or to enforce the
terms of this Agreement, such person shall keep and retain in the strictest confidence and not disclose to any Person any confidential matters, acquired pursuant to this Agreement, of the Corporate Taxpayer and its Affiliates and successors,
concerning EBS and its Affiliates and successors or the Members, learned by the ITR Entity heretofore or hereafter. This Section 7.12 shall not apply to (i) any information that has been made publicly available by the Corporate Taxpayer or
any of its Affiliates, becomes public knowledge (except as a result of an act of the ITR Entity in violation of this Agreement) or is generally known to the business community and (ii) the disclosure of information to the extent necessary for
the ITR Entity to prepare and file its Tax Returns, to respond to any inquiries regarding the same from any taxing authority or to prosecute or defend any action, proceeding or audit by any taxing authority with respect to such returns.
Notwithstanding anything to the contrary herein, the ITR Entity and each of its assignees (and each employee, representative or other agent of the ITR Entity or its assignees, as applicable) may disclose to any and all Persons, without limitation of
any kind, the tax treatment and tax structure of the Corporate Taxpayer, EBS, the ITR Entity, the Members and their Affiliates, and any of their transactions, and all materials of any kind (including opinions or other tax analyses) that are provided
to the ITR Entity relating to such tax treatment and tax structure. 
 If the ITR Entity or an assignee commits a breach, or threatens to commit a breach,
of any of the provisions of this Section 7.12, the Corporate Taxpayer shall have the right and remedy to have the provisions of this Section 7.12 specifically enforced by injunctive relief or otherwise by any court of competent
jurisdiction without the need to post any bond or other security, it being acknowledged and agreed that any such breach or threatened breach shall cause irreparable injury to the Corporate Taxpayer or any of its Subsidiaries or the Members and the
accounts and funds managed by the Corporate Taxpayer and that money damages alone shall not provide an adequate remedy to such Persons. Such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available at
law or in equity. 
 Section 7.13. Representations. 

(a) The HF ITR Entity hereby represents that the HF Members have contributed to the HF ITR Entity, and the HF ITR Entity has received, all of
the HF Members’ rights to receive payments in respect of the Corporate Taxpayer’s cash Tax savings attributable to various tax benefits that are subject to this Agreement (including their rights under this Agreement). 

(b) The HF ITR Entity and the ITR Entity hereby represent that the HF ITR Entity has contributed to the ITR Entity, and the ITR Entity has
received, all of the HF ITR Entity’s rights to receive payments in respect of the Corporate Taxpayer’s cash Tax savings attributable to various tax benefits that are subject to this Agreement (including their rights under this Agreement).


  
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 Change Healthcare Inc. has requested confidential treatment of this registration statement
and associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

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 Change Healthcare Inc. has requested confidential treatment of this registration statement
and associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 IN WITNESS WHEREOF, the Corporate Taxpayer, the HF ITR Entity, the BX ITR Entity and the ITR
Entity have duly executed this Agreement as of the date first written above. 
  

			
	EMDEON INC.
		
	By:	 	 /s/ Gregory T. Stevens

		 	Name: Gregory T. Stevens
		 	Title:   Executive Vice President, General
		 	            Counsel and Secretary
	
	BEAGLE PARENT LLC
		
	By:	 	 /s/ Neil P. Simpkins

		 	Name: Neil P. Simpkins
		 	Title: President
	
	H&F ITR HOLDCO, L.P.
		
	By:	 	Hellman & Friedman Investors VI, L.P.,
		 	its General Partner
		
	By:	 	Hellman & Friedman LLC,
		 	its General Partner
		
	By:	 	 /s/ Allen R. Thorpe

		 	Name: Allen R. Thorpe
		 	Title: Managing Director
	
	GA-H&F ITR HOLDCO, L.P.
	
	By: ITR Holdco GP LLC, its General Partner
		
	By:	 	 /s/ Neil P. Simpkins

		 	Name: Neil P. Simpkins
		 	Title: Manager
		
	By:	 	 /s/ Allen R. Thorpe

		 	Name: Allen R. Thorpe
		 	Title: Manager


 Signature Page to Tax Receivable Agreement (Reorganizations)