Credit Agreement



 EXHIBIT 10.1 
  

  
 CREDIT AGREEMENT 
  
 Dated as of January 27, 2004

  
 among 
  
 PEDIATRIC SERVICES OF AMERICA, INC., a Delaware corporation 
  
 and 
  
 PEDIATRIC SERVICES OF AMERICA, INC., a Georgia corporation 
  
 as Borrowers, 
  
 THE OTHER CREDIT PARTIES SIGNATORY HERETO, 
  
 as Credit Parties, 
  
 THE LENDERS SIGNATORY HERETO 
  
 FROM TIME TO TIME, 
  
 as Lenders,

  
 and 
  
 GENERAL ELECTRIC CAPITAL CORPORATION, 
  
 as Agent and Lender 
  

  









  
 Table of Contents

  

							
	 	 	 	  	 	  	Page


	1.	 	 AMOUNT AND TERMS OF CREDIT
	  	2
				
	 	 	1.1	  	 Credit Facilities
	  	2
	 	 	1.2	  	 Letters of Credit
	  	4
	 	 	1.3	  	 Prepayments
	  	4
	 	 	1.4	  	 Use of Proceeds
	  	6
	 	 	1.5	  	 Interest and Applicable Margins
	  	6
	 	 	1.6	  	 Eligible Accounts
	  	8
	 	 	1.7	  	 Qualified Accounts
	  	11
	 	 	1.8	  	 Cash Management Systems
	  	11
	 	 	1.9	  	 Fees
	  	11
	 	 	1.10	  	 Receipt of Payments
	  	12
	 	 	1.11	  	 Application and Allocation of Payments
	  	12
	 	 	1.12	  	 Loan Account and Accounting
	  	13
	 	 	1.13	  	 Indemnity
	  	13
	 	 	1.14	  	 Access
	  	14
	 	 	1.15	  	 Taxes
	  	15
	 	 	1.16	  	 Capital Adequacy; Increased Costs; Illegality
	  	16
	 	 	1.17	  	 Single Loan
	  	17
			
	2.	 	 CONDITIONS PRECEDENT
	  	18
				
	 	 	2.1	  	 Conditions to the Initial Loans
	  	18
	 	 	2.2	  	 Further Conditions to Each Extension of Credit
	  	18
	 	 	2.3	  	 Further Conditions to Each Acquisition Loan Advance
	  	20
			
	3.	 	 REPRESENTATIONS AND WARRANTIES
	  	21
				
	 	 	3.1	  	 Corporate Existence; Compliance with Law
	  	21
	 	 	3.2	  	 Executive Offices, Collateral Locations, FEIN
	  	21
	 	 	3.3	  	 Corporate Power, Authorization, Enforceable Obligations
	  	21
	 	 	3.4	  	 Financial Statements and Projections
	  	22
	 	 	3.5	  	 Material Adverse Effect
	  	23
	 	 	3.6	  	 Ownership of Property; Liens
	  	23
	 	 	3.7	  	 Labor Matters
	  	24
	 	 	3.8	  	 Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness
	  	24
	 	 	3.9	  	 Government Regulation
	  	24
	 	 	3.10	  	 Margin Regulations
	  	25
	 	 	3.11	  	 Taxes
	  	25
	 	 	3.12	  	 ERISA
	  	25
	 	 	3.13	  	 No Litigation
	  	26
	 	 	3.14	  	 Brokers
	  	26
	 	 	3.15	  	 Intellectual Property
	  	27

  

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 Table of Contents 
 (continued) 
  


							
	 	 	 	  	 	  	Page


	 	 	3.16	  	 Full Disclosure
	  	27
	 	 	3.17	  	 Environmental Matters
	  	27
	 	 	3.18	  	 Insurance
	  	28
	 	 	3.19	  	 Deposit and Disbursement Accounts
	  	28
	 	 	3.20	  	 [Reserved]
	  	28
	 	 	3.21	  	 Customer and Trade Relations
	  	28
	 	 	3.22	  	 Agreements and Other Documents
	  	28
	 	 	3.23	  	 Solvency
	  	29
	 	 	3.24	  	 Holding Company Status of Holdings and PSA Capital
	  	29
	 	 	3.25	  	 Compliance with Healthcare Laws
	  	29
	 	 	3.26	  	 HIPAA Compliance
	  	29
	 	 	3.27	  	 Third Party Reimbursement
	  	30
	 	 	3.28	  	 Participation Agreements
	  	30
			
	4.	 	 FINANCIAL STATEMENTS AND INFORMATION
	  	31
				
	 	 	4.1	  	 Reports and Notices
	  	31
	 	 	4.2	  	 Communication with Accountants
	  	31
			
	5.	 	 AFFIRMATIVE COVENANTS
	  	31
				
	 	 	5.1	  	 Maintenance of Existence and Conduct of Business
	  	31
	 	 	5.2	  	 Payment of Charges
	  	31
	 	 	5.3	  	 Books and Records
	  	32
	 	 	5.4	  	 Insurance; Damage to or Destruction of Collateral
	  	32
	 	 	5.5	  	 Compliance with Laws
	  	33
	 	 	5.6	  	 Supplemental Disclosure
	  	34
	 	 	5.7	  	 Intellectual Property
	  	34
	 	 	5.8	  	 Environmental Matters
	  	34
	 	 	5.9	  	 Landlords’ Agreements, Mortgagee Agreements, Bailee Letters and Real Estate Purchases
	  	35
	 	 	5.10	  	 Delivery of Additional Subsidiary Guaranties; Other Collateral Documents; etc
	  	36
	 	 	5.11	  	 Appointment of Agent for Service of Process
	  	36
	 	 	5.12	  	 Further Assurances
	  	37
			
	6.	 	 NEGATIVE COVENANTS
	  	37
				
	 	 	6.1	  	 Mergers, Subsidiaries, Etc
	  	37
	 	 	6.2	  	 Investments; Loans and Advances
	  	40
	 	 	6.3	  	 Indebtedness
	  	41
	 	 	6.4	  	 Employee Loans and Affiliate Transactions
	  	42
	 	 	6.5	  	 Capital Structure and Business
	  	43
	 	 	6.6	  	 Guaranteed Indebtedness
	  	43

  

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 Table of Contents 
 (continued) 
  


							
	 	 	 	  	 	  	Page


	 	 	6.7	  	 Liens
	  	43
	 	 	6.8	  	 Sale of Stock and Assets
	  	43
	 	 	6.9	  	 ERISA
	  	44
	 	 	6.10	  	 Financial Covenants
	  	44
	 	 	6.11	  	 Hazardous Materials
	  	44
	 	 	6.12	  	 Sale-Leasebacks
	  	44
	 	 	6.13	  	 Cancellation of Indebtedness
	  	44
	 	 	6.14	  	 Restricted Payments
	  	44
	 	 	6.15	  	 Change of Corporate Name or Location; Change of Fiscal Year
	  	45
	 	 	6.16	  	 No Impairment of Intercompany Transfers
	  	46
	 	 	6.17	  	 No Speculative Transactions
	  	46
	 	 	6.18	  	 [RESERVED]
	  	46
	 	 	6.19	  	 Changes Relating to Subordinated Debt; Material Contracts
	  	46
	 	 	6.20	  	 Holding Company Status of Holdings and PSA Capital
	  	46
			
	7.	 	 TERM
	  	46
				
	 	 	7.1	  	 Termination
	  	46
	 	 	7.2	  	 Survival of Obligations Upon Termination of Financing Arrangements
	  	46
			
	8.	 	 EVENTS OF DEFAULT; RIGHTS AND REMEDIES
	  	47
				
	 	 	8.1	  	 Events of Default
	  	47
	 	 	8.2	  	 Remedies
	  	49
	 	 	8.3	  	 Waivers by Credit Parties
	  	50
			
	9.	 	 ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT
	  	50
				
	 	 	9.1	  	 Assignment and Participations
	  	50
	 	 	9.2	  	 Appointment of Agent
	  	52
	 	 	9.3	  	 Agent’s Reliance, Etc
	  	53
	 	 	9.4	  	 GE Capital and Affiliates
	  	54
	 	 	9.5	  	 Lender Credit Decision
	  	54
	 	 	9.6	  	 Indemnification
	  	54
	 	 	9.7	  	 Successor Agent
	  	55
	 	 	9.8	  	 Setoff and Sharing of Payments
	  	55
	 	 	9.9	  	 Advances; Payments; Non-Funding Lenders; Information; Actions in Concert
	  	56
			
	10.	 	 SUCCESSORS AND ASSIGNS
	  	58
				
	 	 	10.1	  	 Successors and Assigns
	  	58

  

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 Table of Contents 
 (continued) 
  


							
	 	 	 	  	 	  	Page


			
	11.	 	 MISCELLANEOUS
	  	58
				
	 	 	11.1	  	 Complete Agreement; Modification of Agreement
	  	58
	 	 	11.2	  	 Amendments and Waivers
	  	59
	 	 	11.3	  	 Fees and Expenses
	  	60
	 	 	11.4	  	 No Waiver
	  	62
	 	 	11.5	  	 Remedies
	  	62
	 	 	11.6	  	 Severability
	  	62
	 	 	11.7	  	 Conflict of Terms
	  	62
	 	 	11.8	  	 Confidentiality
	  	63
	 	 	11.9	  	 GOVERNING LAW
	  	63
	 	 	11.10	  	 Notices
	  	64
	 	 	11.11	  	 Section Titles
	  	65
	 	 	11.12	  	 Counterparts
	  	65
	 	 	11.13	  	 WAIVER OF JURY TRIAL
	  	65
	 	 	11.14	  	 Press Releases and Related Matters
	  	65
	 	 	11.15	  	 Reinstatement
	  	65
	 	 	11.16	  	 Advice of Counsel
	  	66
	 	 	11.17	  	 No Strict Construction
	  	66
			
	12.	 	 CROSS-GUARANTY
	  	66
				
	 	 	12.1	  	 Cross-Guaranty
	  	66
	 	 	12.2	  	 Waivers by Borrowers
	  	66
	 	 	12.3	  	 Benefit of Guaranty
	  	67
	 	 	12.4	  	 Subordination of Subrogation, Etc
	  	67
	 	 	12.5	  	 Election of Remedies
	  	67
	 	 	12.6	  	 Limitation
	  	68
	 	 	12.7	  	 Contribution with Respect to Guaranty Obligations
	  	68
	 	 	12.8	  	 Liability Cumulative
	  	69

  

 iv 








 INDEX OF APPENDICES 
  

					
	Annex A (Recitals)	  	-	  	Definitions
	Annex B (Section 1.2)	  	-	  	Letters of Credit
	Annex C (Section 1.8)	  	-	  	Cash Management System
	Annex D (Section 2.1(a))	  	-	  	Closing Checklist
	Annex E (Section 4.1(a))	  	-	  	Financial Statements and Projections — Reporting
	Annex F (Section 4.1(b))	  	-	  	Collateral Reports
	Annex G (Section 6.10)	  	-	  	Financial Covenants
	Annex H (Section 9.9(a))	  	-	  	Lenders’ Wire Transfer Information
	Annex I (Section 11.10)	  	-	  	Notice Addresses
	 Annex J (from Annex A- Commitments definition)
	  	-	  	Commitments as of Closing Date
			
	Exhibit 1.1(a)(i)	  	-	  	Form of Notice of Revolving Credit Advance
	Exhibit 1.1(a)(ii)	  	-	  	Form of Revolving Note
	Exhibit 1.1(b)(ii)	  	-	  	Form of Notice of Acquisition Loan Advance
	Exhibit 1.1(b)(iv)	  	-	  	Form of Acquisition Loan Note
	Exhibit 1.5(e)	  	-	  	Form of Notice of Conversion/Continuation
	Exhibit 2.2(d)	  	-	  	Form of Post-Closing Solvency Certificate
	Exhibit 4.1(b)	  	-	  	Form of Borrowing Base Certificate
	Exhibit 5.9	  	-	  	Form of Landlord Agreement
	Exhibit 6.1	  	-	  	Form of Subordination Agreement
	Exhibit 9.1(a)	  	-	  	Form of Assignment Agreement
			
	Schedule 1.1	  	-	  	Agent’s Representatives
	Disclosure Schedule 3.1	  	-	  	Type of Entity; State of Organization
	Disclosure Schedule 3.2	  	-	  	Executive Offices, Collateral Locations, FEIN
	Disclosure Schedule 3.4(A)	  	-	  	Financial Statements
	Disclosure Schedule 3.4(C)	  	-	  	Projections
	Disclosure Schedule 3.4(D)	  	-	  	Fair Salable Balance Sheet
	Disclosure Schedule 3.6	  	-	  	Real Estate and Leases
	Disclosure Schedule 3.7	  	-	  	Labor Matters
	Disclosure Schedule 3.8	  	-	  	Ventures, Subsidiaries and Affiliates; Outstanding Stock
			
	Disclosure Schedule 3.11	  	-	  	Tax Matters
	Disclosure Schedule 3.12	  	-	  	ERISA Plans
	Disclosure Schedule 3.13	  	-	  	Litigation
	Disclosure Schedule 3.15	  	-	  	Intellectual Property
	Disclosure Schedule 3.17	  	-	  	Hazardous Materials
	Disclosure Schedule 3.18	  	-	  	Insurance
	Disclosure Schedule 3.19	  	-	  	Deposit and Disbursement Accounts
	Disclosure Schedule 3.22	  	-	  	Material Agreements
	Disclosure Schedule 3.24	  	-	  	Tax and Insurance Related Restructuring
	Disclosure Schedule 3.27	  	-	  	Third Party Reimbursement

  

 v 









					
	Disclosure Schedule 3.28	  	-	  	Participation Agreements
	Disclosure Schedule 5.1	  	-	  	Trade Names
	Disclosure Schedule 6.3	  	-	  	Indebtedness
	Disclosure Schedule 6.4(a)	  	-	  	Transactions with Affiliates
	Disclosure Schedule 6.7	  	-	  	Existing Liens
	Disclosure Schedule 6.21	  	-	  	Business Activities of Holdings and PSA Capital

  
  

 vi 








  
 This CREDIT AGREEMENT (this
“Agreement”), dated as of January 27, 2004 among PEDIATRIC SERVICES OF AMERICA, INC., a Delaware corporation (“Holdings”), PEDIATRIC SERVICES OF AMERICA, INC., a Georgia corporation (“PSA Georgia”;
Holdings and PSA Georgia are sometimes collectively referred to herein as the “Borrowers” and individually as a “Borrower”), the other Credit Parties signatory hereto, GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation (in its individual capacity, “GE Capital”), for itself, as Lender, and as Agent for Lenders, and the other Lenders signatory hereto from time to time. 
  
 RECITALS 
  
 WHEREAS, Borrowers have requested that Lenders extend (a) a revolving credit facility to Borrowers of up to Ten Million
Dollars ($10,000,000) in the aggregate for the purpose of refinancing certain indebtedness of Borrowers and to provide (i) working capital financing for Borrowers, (ii) funds for other general corporate purposes of Borrowers and (iii) funds for
other purposes permitted hereunder, and (b) an acquisition credit facility to Borrowers of up to Ten Million Dollars ($10,000,000) in the aggregate for the purpose of funding Permitted Acquisitions; and for these purposes, Lenders are willing to
make certain loans and other extensions of credit to Borrowers of up to such amounts upon the terms and conditions set forth herein; and 
  
 WHEREAS, Borrowers have agreed to secure all of their obligations under the Loan Documents by granting to Agent, for the benefit of Agent and Lenders, a
security interest in and lien upon all of their existing and after-acquired personal and real property and pledging all of the Stock of their respective Subsidiaries to secure such obligations; and 
  
 WHEREAS, the Borrowers’ Subsidiaries are willing to guarantee all of the
obligations of Borrowers to Agent and Lenders under the Loan Documents and have agreed to secure all of their obligations under such guarantees by granting to Agent, for the benefit of Agent and Lenders, a security interest in and lien upon all of
their existing and after-acquired personal and real property and pledging all of the Stock of their respective Subsidiaries to secure such obligations; 
  
 WHEREAS, capitalized terms used in this Agreement shall have the meanings ascribed to them in Annex A and, for purposes of this Agreement and the
other Loan Documents, the rules of construction set forth in Annex A shall govern. All Annexes, Disclosure Schedules, Exhibits and other attachments (collectively, “Appendices”) hereto, or expressly identified to this
Agreement, are incorporated herein by reference, and taken together with this Agreement, shall constitute but a single agreement. These Recitals shall be construed as part of the Agreement. 
  









 NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and for
other good and valuable consideration, the parties hereto agree as follows: 
  

	1.	AMOUNT AND TERMS OF CREDIT 

  
 1.1 Credit Facilities. 
  
 (a) Revolving Credit Facility. 
  
 (i) Subject to the terms and conditions hereof, each Revolving Lender agrees to make available to Borrowers from time to time until the
Commitment Termination Date its Pro Rata Share of advances (each, a “Revolving Credit Advance”). The Pro Rata Share of the Revolving Loan of any Revolving Lender shall not at any time exceed its separate Revolving Loan Commitment.
The obligations of each Revolving Lender hereunder shall be several and not joint. Until the Commitment Termination Date, Borrowers may from time to time borrow, repay and reborrow under this Section 1.1(a); provided, that the amount of any
Revolving Credit Advance to be made at any time shall not exceed Revolving Loan Borrowing Availability at such time. Each Revolving Credit Advance shall be made on notice by Borrower Representative on behalf of the applicable Borrower to one of the
representatives of Agent identified in Schedule 1.1 at the address specified therein. Any such notice must be given no later than (1) 11:00 a.m. (New York time) on the Business Day of the proposed Revolving Credit Advance, in the case of an
Index Rate Loan, or (2) 11:00 a.m. (New York time) on the date which is 3 Business Days prior to the proposed Revolving Credit Advance, in the case of a LIBOR Loan. Each such notice (a ”Notice of Revolving Credit Advance”) must be
given in writing (by telecopy or overnight courier) substantially in the form of Exhibit 1.1(a)(i), and shall include the information required in such Exhibit and such other information as may be required by Agent. If any Borrower desires to
have the Revolving Credit Advances bear interest by reference to a LIBOR Rate, Borrower Representative must comply with Section 1.5(e). 
  
 (ii) Except as provided in Section 1.12, each Borrower shall execute and deliver to each Revolving Lender a note to evidence the
Revolving Loan Commitment of that Revolving Lender. Each note shall be in the principal amount of the Revolving Loan Commitment of the applicable Revolving Lender, dated the Closing Date and substantially in the form of Exhibit 1.1(a)(ii)
(each a “Revolving Note” and, collectively, the “Revolving Notes”). Each Revolving Note shall represent the obligation of the applicable Borrower to pay the amount of Revolving Lender’s Revolving Loan
Commitment or, if less, such Revolving Lender’s Pro Rata Share of the aggregate unpaid principal amount of all Revolving Credit Advances to such Borrower together with interest thereon as prescribed in Section 1.5. The entire unpaid
balance of the Revolving Loan and all other non-contingent Obligations shall be immediately due and payable in full in immediately available funds on the Commitment Termination Date. 
  
 (b) Acquisition Loan Facility. 
  
 (i) Subject to the terms and conditions hereof, each Acquisition Lender agrees to make available to
Borrowers from time to time until the Commitment Termination Date its Pro Rata Share of advances (each, an “Acquisition Loan Advance”). The 

  

 2 








 
Pro Rata Share of the Acquisition Loan of any Acquisition Lender shall not at any time exceed its separate Acquisition Loan Commitment. The obligations of
each Acquisition Lender hereunder shall be several and not joint. Until the Commitment Termination Date, Borrowers may from time to time borrow, repay and reborrow under this Section 1.1(b); provided that the amount of any Acquisition Loan
Advance to be made at any time shall not exceed Acquisition Loan Borrowing Availability at such time. 
  
 (ii) Each Acquisition Loan Advance shall be made on notice by Borrower Representative on behalf of the applicable Borrower to one of the
representatives of Agent identified in Schedule 1.1 at the address specified therein. Any such notice must be given no later than (1) 11:00 a.m. (New York time) on the Business Day of the proposed Acquisition Loan Advance, in the case of an
Index Rate Loan, or (2) 11:00 a.m. (New York time) on the date which is 3 Business Days prior to the proposed Acquisition Loan Advance, in the case of a LIBOR Loan. Each such notice (a ”Notice of Acquisition Loan Advance”) must be
given in writing (by telecopy or overnight courier) substantially in the form of Exhibit 1.1(b)(ii), and shall include the information required in such Exhibit and such other information as may be required by Agent. If Borrowers desire to
have the Acquisition Loan Advances bear interest by reference to a LIBOR Rate, they must comply with Section 1.5(e). 
  
 (iii) Evidence of Obligation. The Acquisition Loan shall be evidenced by a note dated as of the date hereof and substantially in
the form of Exhibit 1.1(b)(iv) (the “Acquisition Loan Note”). The Acquisition Loan Note shall represent the obligation of applicable Borrower to pay the amount of the Acquisition Loan Commitment or, if less, the aggregate
unpaid principal amount of all Acquisition Loan Advances made by Lender to such Borrower, with interest thereon as prescribed in Section 1.5. The date and amount of each Acquisition Loan Advance and each payment of principal with respect
thereto shall be recorded on the books and records of Lender. Such books and records shall, absent manifest error, constitute prima facie evidence of the accuracy of the information therein recorded. The entire unpaid balance of the Acquisition Loan
shall be immediately due and payable in full in immediately available funds on the Commitment Termination Date. 
  
 (iv) Each payment of principal with respect to the Acquisition Loan shall be paid to Agent for the ratable benefit of each Acquisition
Loan Lender, ratably in proportion to each such Acquisition Loan Lender’s respective Acquisition Loan Commitment. 
  
 (c) Reliance on Notices; Appointment of Borrower Representative. Agent shall be entitled to rely upon, and shall be fully protected in relying
upon, any Notice of Revolving Credit Advance, Notice of Acquisition Loan Advance, Notice of Conversion/Continuation or similar notice believed by Agent to be genuine. Agent may assume that each Person executing and delivering any notice in
accordance herewith was duly authorized, unless the responsible individual acting thereon for Agent has actual knowledge to the contrary. Each Borrower hereby designates Holdings as its representative and agent on its behalf for the purposes of
issuing Notices of Revolving Credit Advances, Notices of Acquisition Loan Advances and Notices of Conversion/Continuation, 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) 

  

 3 








 
on behalf of any Borrower or Borrowers under the Loan Documents. Borrower Representative hereby accepts such appointment. Agent and each Lender may regard
any notice or other communication pursuant to any Loan Document from Borrower Representative as a notice or communication from all Borrowers, and may give any notice or communication required or permitted to be given to any Borrower or Borrowers
hereunder to Borrower Representative on behalf of such Borrower or Borrowers. Each Borrower agrees that each notice, election, representation and warranty, covenant, agreement and undertaking made on its behalf by 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. 
  
 1.2 Letters of Credit. Subject to and in accordance with the terms and
conditions contained herein and in Annex B, Borrower Representative, on behalf of the applicable Borrower, shall have the right to request, and Revolving Lenders agree to incur, or purchase participations in, Letter of Credit Obligations in
respect of each Borrower. 
  
 1.3 Prepayments. 

 
 (a) Voluntary Prepayments; Reductions in Loan Commitments.

  
 (i) Acquisition Loan. Borrowers may at
any time on at least 5 days’ prior written notice by Borrower Representative to Agent voluntarily prepay all or part of the Acquisition Loan; provided that (A) any such prepayments shall be in a minimum amount of $100,000 and integral
multiples of $100,000 in excess of such amounts, (B) no partial reductions in the Acquisition Loan Commitment shall be permitted in connection with any voluntary partial prepayments and (C) the Acquisition Loan Commitment shall only be terminated in
connection with any voluntary prepayment of all of the Acquisition Loan in accordance with the immediately succeeding sentence. Borrowers may at any time on at least 30 days’ prior written notice by Borrower Representative to Agent terminate
the Acquisition Loan Commitment, provided that upon such termination all Acquisition Loans and accrued interest thereon and fees relating thereto shall be immediately due and payable in full. Any voluntary prepayment and any termination of
the Acquisition Loan Commitment must be accompanied by the payment of any LIBOR funding breakage costs in accordance with Section 1.13(b). Upon any such termination of the Acquisition Loan Commitment, each Borrower’s right to request
Acquisition Loan Advances shall simultaneously be terminated. Any partial prepayments of the Acquisition Loan shall be applied to prepay the scheduled principal installments of the Acquisition Loan in inverse order of maturity. 
  
 (ii) Revolving Loan. Borrowers may at any time
voluntarily prepay all or part of the Revolving Loan (without any commitment reduction or termination) upon at least 3 Business Days’ (or, in the case of Index Rate Loans, 1 Business Day’s) prior written notice; provided that (1)
any such prepayments or reductions shall be in a minimum amount of $100,000 and integral multiples of $100,000 in excess of such amounts, (2) the Revolving Loan Commitment shall not be reduced to an amount less than the amount of the Revolving Loan
outstanding, (3) after giving effect to such reductions, Borrowers shall comply with Section 1.3(b)(i) and (4) no partial commitment reductions shall be permitted in connection with any voluntarily prepayment of Revolving Loans. Borrowers may
at any time on at least 5 Business 

  

 4 








 
days’ prior written notice by Borrower Representative to Agent terminate the Revolving Loan Commitment, provided that upon such termination all
Loans (including Acquisition Loans) and other Obligations shall be immediately due and payable in full and all Letter of Credit Obligations shall be cash collateralized or otherwise satisfied in accordance with Annex B hereto. Any voluntary
prepayment and any termination of the Revolving Loan Commitment must be accompanied by the payment of any LIBOR funding breakage costs in accordance with Section 1.13(b). Upon any such termination of the Revolving Loan Commitment, each
Borrower’s right to request Revolving Credit Advances or request that Letter of Credit Obligations be incurred on its behalf shall simultaneously be permanently terminated, as the case may be. Each notice of partial prepayment shall designate
the Loan or other Obligations to which such prepayment is to be applied 
  
 (b) Mandatory Prepayments. 
  
 (i)
If at any time the outstanding balances of the Revolving Loan exceed Revolving Loan Borrowing Availability, Borrowers shall within 1 Business Day repay the aggregate outstanding Revolving Credit Advances to the extent required to eliminate such
excess. If any such excess remains after repayment in full of the aggregate outstanding Revolving Credit Advances, Borrowers shall provide cash collateral for the Letter of Credit Obligations in the manner set forth in Annex B to the extent
required to eliminate such excess. If at any time the outstanding balances of the Acquisition Loan exceed Acquisition Loan Borrowing Availability, Borrowers shall immediately repay the aggregate outstanding Acquisition Loan Advances to the extent
required to eliminate such excess. 
  
 (ii)
Immediately upon receipt by any Credit Party of proceeds of any asset disposition (excluding proceeds of asset dispositions permitted by Section 6.8(a)) or any sale of Stock of any Subsidiary of any Credit Party, Borrowers shall prepay the
Loans in an amount equal to all such proceeds, net of (A) commissions and other reasonable and customary transaction costs, fees and expenses properly attributable to such transaction and payable by Borrowers in connection therewith (in each case,
paid to non-Affiliates), (B) transfer taxes, (C) amounts payable to holders of senior Liens (to the extent such Liens constitute Permitted Encumbrances hereunder), if any, and (D) an appropriate reserve for income taxes in accordance with GAAP in
connection therewith. Any such prepayment shall be applied in accordance with Section 1.3(c). 
  
 (iii) If any Credit Party issues Stock (except for (x) issuances of Stock by any Subsidiary of a Borrower to a Borrower and (y) the
issuance of Stock by Holdings in connection with the exercise of any employee or director stock options granted pursuant to a valid employee or director stock option plan; provided that the aggregate consideration received by Holdings in
connection with such stock issuances does not exceed $100,000 in any Fiscal Year), no later than the Business Day following the date of receipt of the proceeds thereof, Borrowers shall prepay the Loans in an amount equal to all such proceeds, net of
underwriting discounts and commissions and other reasonable costs paid to non-Affiliates in connection therewith ; provided, further that Borrowers shall not be required to prepay the Loans pursuant to the foregoing provisions of this
Section 1.3(b)(iii) so long as each of the following conditions have been met at the date of such stock issuance: (A) no Default or Event of Default has occurred (irrespective of whether or not such Default or Event of Default remains in
existence); 

  

 5 








 
and (B) the Borrowers’ Senior Leverage Ratio as of the Fiscal Quarter most recently ended is not greater than 1.50 to 1.00. Any such prepayment shall be
applied in accordance with Section 1.3(c). 
  
 (c)
Application of Certain Mandatory Prepayments. Any prepayments made by Borrowers pursuant to Sections 1.3(b)(ii) or (b)(iii) above and Prepayments from insurance or condemnation proceeds in accordance with Section 5.4(c)
and the Mortgage(s), respectively, shall be applied as follows: first, to Fees and reimbursable expenses of Agent then due and payable pursuant to any of the Loan Documents; second, to interest then due and payable on the Loans,
ratably in proportion to the interest accrued as to each Loan; third, ratably to the aggregate, combined principal balance of the Loans, until the same has been paid in full; and fourth, to any Letter of Credit Obligations, to provide
cash collateral therefor in the manner set forth in Annex B, until all such Letter of Credit Obligations have been fully cash collateralized in the manner set forth in Annex B. None of the Revolving Loan Commitment nor the Acquisition
Loan Commitment shall be permanently reduced by the amount of any such prepayments. 
  
 (d) No Implied Consent. Nothing in this Section 1.3 shall be construed to constitute Agent’s or any Lender’s consent to any transaction that is not permitted by other provisions of this
Agreement or the other Loan Documents. 
  
 1.4 Use of
Proceeds. Borrowers shall utilize the proceeds of the Revolving Loan solely (a) to consummate the Senior Subordinated Note Redemption Transaction (and to pay any related transaction expenses), (b) for the financing of Borrowers’ ordinary
working capital, permitted capital expenditures and other general corporate needs, and (c) for Permitted Acquisitions to the extent and only to the extent that Borrowers are no longer able to use proceeds of Acquisition Loan Advances to make
Permitted Acquisitions because the outstanding Acquisition Loan equals the Maximum Acquisition Loan Amount. Borrowers shall utilize the proceeds of the Acquisition Loan solely for Permitted Acquisitions. 
  
 1.5 Interest and Applicable Margins. 
  
 (a) Borrowers shall pay interest to Agent, for the ratable benefit of Lenders
in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin
per annum or, at the election of Borrower Representative, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; (ii) with respect to the
Acquisition Loan, the Index Rate plus the Applicable Acquisition Loan Index Margin per annum or, at the election of Borrower Representative, the applicable LIBOR Rate plus the Applicable Acquisition Loan LIBOR Margin per annum. 
  

 6 








 The Applicable Margins are as follows: 
  

				
		
	 Applicable Revolver Index Margin
	  	1.50	%
		
	 Applicable Revolver LIBOR Margin
	  	3.00	%
		
	 Applicable Acquisition Loan Index Margin
	  	2.00	%
		
	 Applicable Acquisition Loan LIBOR Margin
	  	3.50	%
		
	 Applicable L/C Margin
	  	3.00	%
		
	 Applicable Revolver Unused Line Fee Margin
	  	0.50	%
		
	 Applicable Acquisition Loan Unused Line Fee Margin
	  	0.75	%

  
 The Applicable
Revolver Unused Line Fee Margin set forth above shall be reduced by 0.25% for any month in which the average daily balance of the Revolving Loan is greater than 50% of the Revolving Loan Commitment. The Applicable Acquisition Loan Unused Line Fee
Margin shall be reduced by 0.25% for any month in which the average daily balance of the Acquisition Loan is greater than 50% of the Acquisition Loan Commitment. 
  
 (b) If any payment on any Loan becomes due and payable on a day other than a Business Day, the maturity thereof will be
extended to the next succeeding Business Day (except as set forth in the definition of LIBOR Period) and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension. 
  
 (c) All computations of Fees calculated on a per annum basis and interest
shall be made by Agent on the basis of a 360-day year, in each case for the actual number of days occurring in the period for which such interest and Fees are payable. The Index Rate is a floating rate determined for each day. Each determination by
Agent of an interest rate and Fees hereunder shall be final, binding and conclusive on Borrowers, absent manifest error. 
  
 (d) So long as an Event of Default has occurred and is continuing under Section 8.1(a), (h) or (i), or so long as any other Default
or Event of Default has occurred and is continuing and at the election of Agent (or upon the written request of Requisite Lenders) confirmed by written notice from Agent to Borrower Representative, the interest rates applicable to the Loans and the
Letter of Credit Fees shall be increased by two percentage points (2%) per annum above the rates of interest or the rate of such Fees otherwise applicable hereunder (“Default Rate”), and all outstanding Obligations shall bear
interest at the Default Rate applicable to such Obligations. Interest and Letter of Credit Fees at the Default Rate shall accrue from the initial date of such Default or Event of Default until that Default or Event of Default is cured or waived and
shall be payable upon demand. 
  
 (e) Subject to the conditions
precedent set forth in Section 2.2, Borrower Representative shall have the option to (i) request that any Revolving Credit Advance or Acquisition Loan Advance be made as a LIBOR Loan, (ii) convert at any time all or any part of outstanding
Loans from Index Rate Loans to LIBOR Loans, (iii) convert any LIBOR Loan to an Index Rate Loan, subject to payment of LIBOR breakage costs in accordance with Section 1.13(b) if such conversion is made prior to the expiration of the LIBOR
Period applicable thereto, or (iv) continue all or any portion of any Loan as a LIBOR Loan upon the expiration of 

  

 7 








 
the applicable LIBOR Period and the succeeding LIBOR Period of that continued Loan shall commence on the first day after the last day of the LIBOR Period of
the Loan to be continued. Any Loan or group of Loans having the same proposed LIBOR Period to be made or continued as, or converted into, a LIBOR Loan must be in a minimum amount of $1,000,000 and integral multiples of $250,000 in excess of such
amount. Any such election must be made by 11:00 a.m. (New York time) on the 3rd Business Day prior to (1) the date of any proposed Advance which is to bear interest at the LIBOR Rate, (2) the end of each LIBOR Period with respect to any LIBOR Loans
to be continued as such, or (3) the date on which Borrower Representative wishes to convert any Index Rate Loan to a LIBOR Loan for a LIBOR Period designated by Borrower Representative in such election. If no election is received with respect to a
LIBOR Loan by 11:00 a.m. (New York time) on the 3rd Business Day prior to the end of the LIBOR Period with respect thereto (or if a Default or an Event of Default has occurred and is continuing or the additional conditions precedent set forth in
Section 2.2 shall not have been satisfied), that LIBOR Loan shall be converted to an Index Rate Loan at the end of its LIBOR Period. Borrower Representative must make such election by notice to Agent in writing, by telecopy or overnight
courier. In the case of any conversion or continuation, such election must be made pursuant to a written notice (a “Notice of Conversion/Continuation”) in the form of Exhibit 1.5(e). 
  
 (f) Notwithstanding anything to the contrary set forth in this Section
1.5, if a court of competent jurisdiction determines in a final order that the rate of interest payable hereunder exceeds the highest rate of interest permissible under law (the “Maximum Lawful Rate”), then so long as the
Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, however, that if at any time thereafter the rate of interest payable hereunder is less than the
Maximum Lawful Rate, Borrowers shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by Agent, on behalf of Lenders, is equal to the total interest that would have been received had the
interest rate payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Closing Date as otherwise provided in this Agreement. Thereafter, interest hereunder shall be paid at the rate(s) of interest and in
the manner provided in Sections 1.5(a) through (e), unless and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall again apply. In no event shall the total interest received by any Lender
pursuant to the terms hereof exceed the amount that such Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to
this paragraph, such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made. If, notwithstanding the provisions of this Section 1.5(f), a court
of competent jurisdiction shall finally determine that a Lender has received interest hereunder in excess of the Maximum Lawful Rate, Agent shall, to the extent permitted by applicable law, promptly apply such excess in the order specified in
Section 1.11 and thereafter shall refund any excess to Borrowers or as a court of competent jurisdiction may otherwise order. 
  
 1.6 Eligible Accounts. All of the Accounts owned by any Borrowing Base Party and reflected in the most recent Borrowing Base Certificate delivered
by Borrower Representative to Agent shall be “Eligible Accounts” for purposes of this Agreement, except any Account to which any of the exclusionary criteria set forth below applies. Agent shall have the right to establish, modify
or eliminate Reserves against Eligible Accounts from time to time in its 

  

 8 








 
reasonable credit judgment. In addition, Agent reserves the right, at any time and from time to time after the Closing Date, to adjust any of the criteria
set forth below, to establish new criteria and to adjust advance rates with respect to Eligible Accounts in its reasonable credit judgment. Eligible Accounts shall not include any Account of any Borrowing Base Party: 
  
 (a) that does not arise from the sale of goods or the performance of services
by such Borrowing Base Party in the ordinary course of its business; 
  
 (b) (i) upon which such Borrowing Base Party’s right to receive payment is not absolute or is contingent upon the fulfillment of any condition whatsoever or (ii) as to which such Borrowing Base Party is not able to bring suit or
otherwise enforce its remedies against the Account Debtor through judicial process, or (iii) if the Account represents a progress billing consisting of an invoice for goods sold or used or services rendered pursuant to a contract under which the
Account Debtor’s obligation to pay that invoice is subject to such Borrowing Base Party’s completion of further performance under such contract or is subject to the equitable lien of a surety bond issuer; 
  
 (c) in the event that any defense, counterclaim, setoff or dispute is
asserted as to such Account; 
  
 (d) that is not a true and
correct statement of bona fide indebtedness incurred in the amount of the Account for merchandise sold to or services rendered and accepted by the applicable Account Debtor; 
  
 (e) with respect to which an invoice, reasonably acceptable to Agent in form and substance, has not been sent to the
applicable Account Debtor, except for any Account that constitutes an Eligible Unbilled Account; 
  
 (f) that (i) is not owned by such Borrowing Base Party or (ii) is subject to any right, claim, security interest or other interest of any other Person,
other than Liens in favor of Agent, on behalf of itself and Lenders; 
  
 (g) that arises from a sale to any director, officer, other employee or Affiliate of any Credit Party, or to any entity that has any common officer or director with any Credit Party; 
  
 (h) that, except in the case of a Government Account, is the obligation of an
Account Debtor that is the United States government or a political subdivision thereof, or any state, county or municipality or department, agency or instrumentality thereof unless Agent, in its sole discretion, has agreed to the contrary in writing
and such Borrowing Base Party, if necessary or desirable, has complied with respect to such obligation with the Federal Assignment of Claims Act of 1940, or any applicable state, county or municipal law restricting the assignment thereof with
respect to such obligation; 
  
 (i) that is payable by an Account
Debtor that is not one of the following: (i) a Third Party Payor that is a commercial insurance company reasonably acceptable to Agent, organized under the laws of any jurisdiction in the United States, and has its principal office in the United
States; (ii) a Blue Cross/Blue Shield plan; (iii) Medicaid; (iv) Medicare; (v) 

  

 9 








 
TRICARE, (vi) CHAMPVA; or (vii) a health maintenance organization, preferred provider organization or other type of Third Party Payor not included in (i)
through (vi) above and which organization or other Third Party Payor is organized under the laws of any jurisdiction of the United States and has its principal place of business in the United States; 
  
 (j) that is the obligation of an Account Debtor located in a foreign country;

  
 (k) to the extent such Borrowing Base Party or any Subsidiary
thereof is liable for goods sold or services rendered by the applicable Account Debtor to such Borrowing Base Party or any Subsidiary thereof but only to the extent of the potential offset; 
  
 (l) that arises with respect to goods that are delivered on a bill-and-hold,
cash-on-delivery basis or placed on consignment, guaranteed sale or other terms by reason of which the payment by the Account Debtor is or may be conditional; 
  

(m) that is in default; provided, that, without limiting the generality of the foregoing, an Account shall be deemed in default upon the
occurrence of any of the following: 
  
 (i) the
Account is not paid within one hundred twenty (120) days following the original service date with respect to such Account; 
  
 (ii) the Account Debtor obligated upon such Account suspends business, makes a general assignment for the benefit of creditors or fails to
pay its debts generally as they come due; or 
  
 (iii) a petition is filed by or against any Account Debtor obligated upon such Account under any bankruptcy law or any other federal, state or foreign (including any provincial) receivership, insolvency relief or other law or laws for the
relief of debtors; 
  
 (n) that is the obligation of an Account
Debtor (other than an Account Debtor that is a Governmental Third Party Payor) if 50% or more of the Dollar amount of all Accounts owing by that Account Debtor are ineligible under the other criteria set forth in this Section 1.6; 

 
 (o) as to which Agent’s Lien thereon, on behalf of itself and
Lenders, is not a first priority perfected Lien; 
  
 (p) as to
which any of the representations or warranties in the Loan Documents are untrue; 
  
 (q) to the extent such Account is evidenced by a judgment, Instrument or Chattel Paper; 
  
 (r) that is payable in any currency other than Dollars; 
  
 (s) that was not originated in accordance with and/or does not satisfy in all material respects all applicable requirements of the Credit and Collection
Policies; or 
  
 (t) that is otherwise unacceptable to Agent in
its reasonable credit judgment. 
  

 10 








 1.7 Qualified Accounts. Notwithstanding anything to the contrary in Section 1.6, upon the
request of Borrower Representative, Agent in its sole credit judgment, may include Qualified Accounts of any Borrowing Base Party in the Borrowing Base for purposes of determining Borrowing Availability provided that: 
  
 (a) Borrower Representative shall have furnished to Agent a senior officer
certificate requesting one or more Qualified Accounts in the Borrowing Base, which certificate shall (i) identify with particularity each of the Qualified Accounts to be included in the Borrowing Base and (ii) contain a certification by a senior
officer of the Borrower Representative that such Accounts constitute “Qualified Accounts” as defined in Annex A of this Agreement; 
  
 (b) Agent shall have completed a collateral audit of such Qualified Accounts with results satisfactory to it; 
  
 (c) the advance rate for such Qualified Accounts shall be 85% subject to
adjustment from time to time in Agent’s reasonable credit judgment (such advance rate as so adjusted from time to time is referred to herein as the “Qualified Accounts Advance Rate”); and 
  
 (d) no Qualified Accounts may be included in the Borrowing Base after the
first anniversary of the Closing Date. 
  
 1.8 Cash Management
Systems. On or prior to the Closing Date, Borrowers will establish and will maintain until the Termination Date, the cash management systems described in Annex C (the “Cash Management Systems”). 
  
 1.9 Fees. 
  
 (a) Borrowers shall pay to GE Capital, individually, the Fees specified in
that certain commitment letter dated August 21, 2003, as modified by that certain letter agreement dated November 18, 2003 by and between Holdings and GE Capital (as so modified, the “GE Capital Commitment Letter”), at the times
specified for payment therein. 
  
 (b) As additional compensation
for the Revolving Lenders, without duplication of the Fees described in subsection (a) above, Borrowers shall pay to Agent, for the ratable benefit of such Lenders, in arrears, on the first Business Day of each month prior to the Commitment
Termination Date and on the Commitment Termination Date, a Fee for Borrowers’ non-use of available funds in an amount equal to the sum of (i) the Applicable Revolver Unused Line Fee Margin per annum (calculated on the basis of a 360 day year
for actual days elapsed) multiplied by the difference between (x) the Maximum Revolver Amount (as it may be reduced from time to time) and (y) the average for the period of the daily closing balances of the Revolving Loan outstanding during the
period for which such Fee is due and (ii) the Applicable Acquisition Loan Unused Line Fee Margin per annum (calculated on the basis of a 360 day year for actual days elapsed) multiplied by the difference between (x) the Maximum Acquisition Loan
Amount (as it may be reduced from time to time) and (y) the average for the period of the daily closing balances of the Acquisition Loan outstanding during the period for which the such Fee is due. 
  

 11 








 (c) Borrowers shall pay to Agent, for the ratable benefit of Revolving Lenders, the Letter of Credit Fee
as provided in Annex B, without duplication of the Fees described in subsection (a) above. 
  
 1.10 Receipt of Payments. Borrowers shall make each payment under this Agreement not later than 2:00 p.m. (New York time) on the day when due in
immediately available funds in Dollars to the Collection Account. For purposes of computing interest and Fees and determining Revolving Loan Borrowing Availability and Acquisition Loan Borrowing Availability as of any date, all payments shall be
deemed received on the Business Day on which immediately available funds therefor are received in the Collection Account prior to 2:00 p.m. New York time. Payments received after 2:00 p.m. New York time on any Business Day or on a day that is not a
Business Day shall be deemed to have been received on the following Business Day. 
  
 1.11 Application and Allocation of Payments. 
  
 (a) So long as no Default or Event of Default has occurred and is continuing, (i) payments consisting of proceeds of Accounts received in the ordinary course of business shall be applied to the Revolving Loan; (ii)
payments matching specific scheduled payments then due shall be applied to those scheduled payments; (iii) voluntary prepayments shall be applied as determined by Borrower Representative, subject to the provisions of Section 1.3(a); and (iv)
mandatory prepayments shall be applied as set forth in Sections 1.3(b) and 1.3(c). All payments and prepayments applied to a particular Loan shall be applied ratably to the portion thereof held by each Lender as determined by its Pro
Rata Share. As to any other payment, and as to all payments made when a Default or Event or Default has occurred and is continuing or following the Commitment Termination Date, each Borrower hereby irrevocably waives the right to direct the
application of any and all payments received from or on behalf of such Borrower, and each Borrower hereby irrevocably agrees that Agent shall have the continuing exclusive right to apply any and all such payments against the Obligations of Borrowers
as Agent may deem advisable notwithstanding any previous entry by Agent in the Loan Account or any other books and records. In the absence of a specific determination by Agent with respect thereto, payments shall be applied to amounts then due and
payable in the following order: (1) to Fees and Agent’s expenses reimbursable hereunder; (2) to interest on the Loans, ratably in proportion to the interest accrued as to each Loan; (3) to principal payments on the Loans and to provide cash
collateral for Letter of Credit Obligations in the manner described in Annex B, ratably to the aggregate, combined principal balance of the other Loans and outstanding Letter of Credit Obligations; and (4) to all other Obligations including
expenses of Lenders to the extent reimbursable under Section 11.3. 
  
 (b) Agent is authorized to, and at its sole election may, charge to the Revolving Loan balance on behalf of each Borrower and cause to be paid all Fees, expenses, Charges, costs (including insurance premiums in
accordance with Section 5.4(a)) and interest and principal, other than principal of the Revolving Loan, owing by Borrowers under this Agreement or any of the other Loan Documents if and to the extent Borrowers fail to pay promptly any such
amounts as and when due, even if the amount of such charges would exceed Revolving Loan Borrowing Availability at such time. At Agent’s option and to the extent permitted by law, any charges so made shall constitute part of the Revolving Loan
hereunder. 
  

 12 








 1.12 Loan Account and Accounting. Agent shall maintain a loan account (the “Loan
Account”) on its books to record: all Advances, all payments made by Borrowers, and all other debits and credits as provided in this Agreement with respect to the Loans or any other Obligations. All entries in the Loan Account shall be made
in accordance with Agent’s customary accounting practices as in effect from time to time. The balance in the Loan Account, as recorded on Agent’s most recent printout or other written statement, shall, absent manifest error, be presumptive
evidence of the amounts due and owing to Agent and Lenders by each Borrower; provided that any failure to so record or any error in so recording shall not limit or otherwise affect any Borrower’s duty to pay the Obligations. Agent shall
render to Borrower Representative a monthly accounting of transactions with respect to the Loans setting forth the balance of the Loan Account as to each Borrower for the immediately preceding month. Unless Borrower Representative notifies Agent in
writing of any objection to any such accounting (specifically describing the basis for such objection), within 30 days after the date thereof, each and every such accounting shall, absent manifest error, be deemed final, binding and conclusive on
Borrowers in all respects as to all matters reflected therein. Only those items expressly objected to in such notice shall be deemed to be disputed by Borrowers. Notwithstanding any provision herein contained to the contrary, any Lender may elect
(which election may be revoked) to dispense with the issuance of Notes to that Lender and may rely on the Loan Account as evidence of the amount of Obligations from time to time owing to it. 
  
 1.13 Indemnity. 
  
 (a) Each Credit Party that is a signatory hereto shall jointly and severally
indemnify and hold harmless each of Agent, Lenders and their respective Affiliates, and each such Person’s respective officers, directors, employees, attorneys, agents and representatives (each, an “Indemnified Person”), from
and against any and all suits, actions, proceedings, claims, damages, losses, liabilities and expenses (including reasonable attorneys’ fees and disbursements and other costs of investigation or defense incurred, including those incurred upon
any appeal) that may be instituted or asserted against or incurred by any such Indemnified Person as the result of credit having been extended, suspended or terminated under this Agreement and the other Loan Documents and the administration of such
credit, and in connection with or arising out of the transactions contemplated hereunder and thereunder and any actions or failures to act in connection therewith, including any and all Environmental Liabilities and legal costs and expenses arising
out of or incurred in connection with disputes between or among any parties to any of the Loan Documents (collectively, “Indemnified Liabilities”); provided, that no such Credit Party shall be liable for any
indemnification to an Indemnified Person to the extent that any such suit, action, proceeding, claim, damage, loss, liability or expense results from that Indemnified Person’s gross negligence or willful misconduct. NO INDEMNIFIED PERSON SHALL
BE RESPONSIBLE OR LIABLE TO ANY OTHER PARTY TO ANY LOAN DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY OF SUCH PERSON OR ANY OTHER PERSON ASSERTING CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR
CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER ANY LOAN DOCUMENT OR AS A RESULT OF ANY OTHER TRANSACTION CONTEMPLATED HEREUNDER OR THEREUNDER. 
  

 13 








 (b) To induce Lenders to provide the LIBOR Rate option on the terms provided herein, if (i) any LIBOR
Loans are repaid in whole or in part prior to the last day of any applicable LIBOR Period (whether that repayment is made pursuant to any provision of this Agreement or any other Loan Document or occurs as a result of acceleration, by operation of
law or otherwise); (ii) any Borrower shall default in payment when due of the principal amount of or interest on any LIBOR Loan; (iii) any Borrower shall refuse to accept any borrowing of, or shall request a termination of any borrowing, conversion
into or continuation of LIBOR Loans after Borrower Representative has given notice requesting the same in accordance herewith; or (iv) any Borrower shall fail to make any prepayment of a LIBOR Loan after Borrower Representative has given a notice
thereof in accordance herewith, then Borrowers shall jointly and severally indemnify and hold harmless each Lender from and against all losses, costs and expenses resulting from or arising from any of the foregoing. Such indemnification shall
include any loss (including loss of margin) or expense arising from the reemployment of funds obtained by it or from fees payable to terminate deposits from which such funds were obtained. For the purpose of calculating amounts payable to a Lender
under this subsection, each Lender shall be deemed to have actually funded its relevant LIBOR Loan through the purchase of a deposit bearing interest at the LIBOR Rate in an amount equal to the amount of that LIBOR Loan and having a maturity
comparable to the relevant LIBOR Period; provided, that each Lender may fund each of its LIBOR Loans in any manner it sees fit, and the foregoing assumption shall be utilized only for the calculation of amounts payable under this subsection.
This covenant shall survive the termination of this Agreement and the payment of the Notes and all other amounts payable hereunder. As promptly as practicable under the circumstances, each Lender shall provide Borrower Representative with its
written calculation of all amounts payable pursuant to this Section 1.13(b), and such calculation shall be binding on the parties hereto unless Borrower Representative shall object in writing within 10 Business Days of receipt thereof,
specifying the basis for such objection in detail. 
  
 1.14
Access. Each Credit Party that is a party hereto shall, during normal business hours, from time to time upon 3 Business Days’ prior notice as frequently as Agent reasonably determines to be appropriate: (a) provide Agent and any of its
officers, employees and agents access to its properties, facilities, advisors and employees (including officers) of each Credit Party and to the Collateral, (b) permit Agent, and any of its officers, employees and agents, to inspect, audit and make
extracts from any Credit Party’s books and records, and (c) permit Agent, and its officers, employees and agents, to inspect, review, evaluate and make test verifications and counts of the Accounts and other Collateral of any Credit Party;
provided that in the absence of a Default or Event of Default, Agent shall be responsible for the expense of any field examinations in excess of one such examination per year. If a Default or Event of Default has occurred and is continuing or
if access is necessary to preserve or protect the Collateral as determined by the Agent, each such Credit Party shall provide such access to Agent and to each Lender at all times and with reasonable prior notice. Furthermore, so long as any Event of
Default has occurred and is continuing, Borrowers shall provide Agent and each Lender with access to their suppliers and customers. Each Credit Party shall promptly make available to Agent and its counsel originals or copies of all books and records
that Agent may reasonably request. Each Credit Party shall deliver any document or instrument necessary for Agent, as it may from time to time reasonably request, to obtain records from any service bureau or other Person that maintains records for
such Credit Party, and shall maintain duplicate records or supporting documentation on media, including computer tapes and discs owned by such Credit 

  

 14 








 
Party. Agent will give Lenders at least 10 days’ prior written notice of regularly scheduled audits. Representatives of other Lenders may accompany
Agent’s representatives on regularly scheduled audits at no charge to Borrowers. 
  
 1.15 Taxes. 
  
 (a) Any and
all payments by each Borrower hereunder (including any payments made pursuant to Section 12) or under the Notes shall be made, in accordance with this Section 1.15, free and clear of and without deduction for any and all present or
future Taxes. If any Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder (including any sum payable pursuant to Section 12) or under the Notes, (i) the sum payable shall be increased as much
as shall be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 1.15) Agent or Lenders, as applicable, receive an amount equal to the sum they would have
received had no such deductions been made, (ii) such Borrower shall make such deductions, and (iii) such Borrower shall pay the full amount deducted to the relevant taxing or other authority in accordance with applicable law. Within 30 days after
the date of any payment of Taxes, Borrower Representative shall furnish to Agent the original or a certified copy of a receipt evidencing payment thereof. Agent and Lenders shall not be obligated to return or refund any amounts received pursuant to
this Section, unless such amounts were paid or received in error. 
  
 (b) The Credit Parties jointly and severally agree to pay Agent, L/C Issuer and each Lender, promptly following demand therefor, all Taxes (excluding income or other similar taxes imposed on L/C Issuer or any Lender or any holder of a Note
by the jurisdictions under the laws of which such Person seeking payment is organized or conducts business or any political subdivision thereof), including any interest or penalties thereon, at any time payable or ruled to be payable in respect of
the existence, execution or delivery of this Agreement, the Related Transactions Documents or the making of any Loan or issuance of any Letter of Credit, and to indemnify and hold Agent, L/C Issuer and each Lender, and each and every holder of the
Notes or any other Obligation harmless against liability in connection with any such Taxes. If any Lender, L/C Issuer or the Agent receives a refund in respect of any Taxes for which such Person has received payment from any Borrower hereunder, it
promptly shall repay such refund (plus interest received, if any) to such Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under this Section 1.15(b) with respect to Taxes giving rise
to such refund), provided that such Borrower, upon the request of such Lender, L/C Issuer or the Agent, as applicable, agrees to return such refund (plus any penalties, interest or other charges required to be paid) to such Lender, L/C Issuer or the
Agent in the event such Lender, L/C Issuer or the Agent is required to repay such refund to the relevant taxing authority. Nothing contained in this Section 1.15(b) shall require the Agent, the L/C Issuer or any Lender to make available its
tax returns (or any other information relating to its taxes which it deems confidential). 
  
 (c) Each Lender organized under the laws of a jurisdiction outside the United States (a “Foreign Lender”) as to which payments to be made under this Agreement or under the Notes are exempt from United
States withholding tax under an applicable statute or tax treaty shall provide to Borrower Representative and Agent a properly completed and executed IRS Form W-8ECI or Form W-8BEN or other applicable form, certificate or document prescribed by


  

 15 








 
the IRS or the United States certifying as to such Foreign Lender’s entitlement to such exemption (a “Certificate of Exemption”). Any
foreign Person that seeks to become a Lender under this Agreement shall provide a Certificate of Exemption to Borrower Representative and Agent prior to becoming a Lender hereunder. No foreign Person may become a Lender hereunder if such Person
fails to deliver a Certificate of Exemption in advance of becoming a Lender. 
  
 1.16 Capital Adequacy; Increased Costs; Illegality. 
  
 (a) If any Lender shall have determined that any law, treaty, governmental (or quasi-governmental) rule, regulation, guideline or order regarding capital adequacy, reserve requirements or similar requirements or
compliance by any Lender with any request or directive regarding capital adequacy, reserve requirements or similar requirements (whether or not having the force of law), in each case, adopted after the Closing Date, from any central bank or other
Governmental Authority increases or would have the effect of increasing the amount of capital, reserves or other funds required to be maintained by such Lender and thereby reducing the rate of return on such Lender’s capital as a consequence of
its obligations hereunder, then Borrowers shall from time to time upon demand by such Lender (with a copy of such demand to Agent) pay to Agent, for the account of such Lender, additional amounts sufficient to compensate such Lender for such
reduction. A certificate as to the amount of that reduction and showing the basis of the computation thereof submitted by such Lender to Borrower Representative and to Agent shall, absent manifest error, be final, conclusive and binding for all
purposes. If Agent or any Lender shall be entitled to seek a refund of all or a portion of the costs or expenses paid by any Borrower to Agent or such Lender, as applicable, under this Section, then Agent or such Lender, as applicable, shall
promptly seek such refund and, upon receipt thereof, pay such refund to such Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under this Section 1.16); provided that nothing contained in this
sentence shall require Agent or any Lender to change any of its business affairs or practices or the location of any office in which it conducts business, or to make available any information relating to its taxes or operations which it deems
confidential). 
  
 (b) If, due to either (i) the introduction of
or any change in any law or regulation (or any change in the interpretation thereof) or (ii) the compliance with any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), in each case
adopted after the Closing Date, there shall be any increase in the cost to any Lender of agreeing to make or making, funding or maintaining any Loan, then Borrowers shall from time to time, upon demand by such Lender (with a copy of such demand to
Agent), pay to Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost. A certificate as to the amount of such increased cost, submitted to Borrower Representative and to Agent by such
Lender, shall be conclusive and binding on Borrowers for all purposes, absent manifest error. Each Lender agrees that, as promptly as practicable after it becomes aware of any circumstances referred to above which would result in any such increased
cost, the affected Lender shall, to the extent not inconsistent with such Lender’s internal policies of general application, use reasonable commercial efforts to minimize costs and expenses incurred by it and payable to it by Borrowers pursuant
to this Section 1.16(b). 
  

 16 








 (c) Notwithstanding anything to the contrary contained herein, if the introduction of or any change in
any law or regulation (or any change in the interpretation thereof) shall make it unlawful, or any central bank or other Governmental Authority shall assert that it is unlawful, for any Lender to agree to make or to make or to continue to fund or
maintain any LIBOR Loan, then, unless that Lender is able to make or to continue to fund or to maintain such LIBOR Loan at another branch or office of that Lender without, in that Lender’s opinion, adversely affecting it or its Loans or the
income obtained therefrom, on notice thereof and demand therefor by such Lender to Borrower Representative through Agent, (i) the obligation of such Lender to agree to make or to make or to continue to fund or maintain LIBOR Loans shall terminate
and (ii) each Borrower shall forthwith prepay in full all outstanding LIBOR Loans owing by such Borrower to such Lender, together with interest accrued thereon, unless Borrower Representative on behalf of such Borrower, within 5 Business Days
after the delivery of such notice and demand, converts all LIBOR Loans into Index Rate Loans. 
  
 (d) Within 15 days after receipt by Borrower Representative of written notice and demand from any Lender (an “Affected Lender”) for payment of additional amounts or increased costs as provided in
Sections 1.15(a), 1.16(a) or 1.16(b), Borrower Representative may, at its option, notify Agent and such Affected Lender of its intention to replace the Affected Lender. So long as no Default or Event of Default has occurred and
is continuing, Borrower Representative, with the consent of Agent, may obtain, at Borrowers’ expense, a replacement Lender (“Replacement Lender”) for the Affected Lender, which Replacement Lender must be reasonably satisfactory
to Agent. If Borrowers obtain a Replacement Lender within 90 days following notice of their intention to do so, the Affected Lender must sell and assign its Loans and Commitments to such Replacement Lender for an amount equal to the principal
balance of all Loans held by the Affected Lender and all accrued interest and Fees with respect thereto through the date of such sale; provided, that Borrowers shall have reimbursed such Affected Lender for the additional amounts or increased
costs that it is entitled to receive under this Agreement through the date of such sale and assignment. Notwithstanding the foregoing, Borrowers shall not have the right to obtain a Replacement Lender if the Affected Lender rescinds its demand for
increased costs or additional amounts within 15 days following its receipt of Borrowers’ notice of intention to replace such Affected Lender. Furthermore, if Borrowers give a notice of intention to replace and do not so replace such Affected
Lender within 90 days thereafter, Borrowers’ rights under this Section 1.16(d) shall terminate and Borrowers shall promptly pay all increased costs or additional amounts demanded by such Affected Lender pursuant to Sections
1.15(a), 1.16(a) and 1.16(b). 
  
 1.17 Single
Loan. All Loans to each Borrower and all of the other Obligations of each Borrower arising under this Agreement and the other Loan Documents shall constitute one general obligation of that Borrower secured, until the Termination Date, by all of
the Collateral. 
  

 17 









	2.	CONDITIONS PRECEDENT 

  
 2.1 Conditions to the Initial Loans. No Lender shall be obligated to make any Loan or incur any Letter of Credit Obligations on the Closing Date,
or to take, fulfill, or perform any other action hereunder, until the following conditions have been satisfied or provided for in a manner satisfactory to Agent, or waived in writing by Agent and Lenders: 
  
 (a) Credit Agreement; Loan Documents. This Agreement or counterparts
hereof shall have been duly executed by, and delivered to, Borrowers, each other Credit Party, Agent and Lenders; and Agent shall have received such documents, instruments, agreements and legal opinions as Agent shall reasonably request in
connection with the transactions contemplated by this Agreement and the other Loan Documents, all as listed in the Closing Checklist attached hereto as Annex D, each in form and substance reasonably satisfactory to Agent. 
  
 (b) Approvals. Agent shall have received (i) satisfactory evidence, in
its reasonable discretion, that (A) the Credit Parties have obtained all required consents and approvals of all Persons including all requisite Governmental Authorities and third party approvals or consents (including any landlord’s,
bailee’s, warehouseman’s or other waivers or consents), to the execution, delivery and performance of this Agreement and the other Loan Documents and the consummation of the Related Transactions and (B) all applicable waiting periods shall
have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the execution, delivery and performance of this Agreement and the other Loan Documents or
(ii) an officer’s certificate in form and substance reasonably satisfactory to Agent affirming that no such consents or approvals are required. 
  
 (c) Payment of Fees. Borrowers shall have paid the Fees required to be paid on the Closing Date in the respective amounts specified in Section
1.9 (including the Fees specified in the GE Capital Commitment Letter), and shall have reimbursed Agent for all fees, costs and expenses of closing presented as of the Closing Date. 
  
 (d) Capital Structure; Other Indebtedness. The corporate, capital and organizational structure of each Credit Party
and the terms and conditions of all Indebtedness of each Credit Party shall be acceptable to Agent in its sole discretion. 
  
 (e) Due Diligence. Agent shall have completed its business, financial, operational and legal due diligence with results reasonably satisfactory to
Agent. 
  
 (f) Minimum EBITDA. Holdings and its
Subsidiaries shall have on a consolidated basis EBITDA of at least $13,000,000 for the twelve consecutive Fiscal Months most recently ended. 
  
 (g) Disclosure. Agent shall not have become aware of any information or other matter affecting any Credit Party or the transactions contemplated
hereby that is inconsistent in a material and adverse manner with any such information or other matters disclosed to the Agent prior to the date of this Agreement. 
  
 2.2 Further Conditions to Each Extension of Credit. Except as otherwise expressly provided herein, no Lender shall be
obligated to fund any Advance, convert or continue any Loan as a LIBOR Loan or incur any Letter of Credit Obligation, if, as of the date thereof: 
  
 (a) any representation or warranty by any Credit Party contained herein or in any other Loan Document is untrue or incorrect as of such date (i) as stated
if such representation 

  

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and warranty contains an express materiality qualification or (ii) in all material respects if such representation and warranty does not contain such a
qualification, except to the extent that such representation or warranty expressly relates to an earlier date and except for changes therein expressly permitted or expressly contemplated by this Agreement, and Agent or Requisite Lenders have
determined not to make such Advance, convert or continue any Loan as LIBOR Loan or incur such Letter of Credit Obligation as a result of the fact that such warranty or representation is untrue or incorrect; 
  
 (b) any event or circumstance having a Material Adverse Effect has occurred
since the date hereof as determined by the Requisite Lenders, and Agent or Requisite Lenders have determined not to make such Advance, convert or continue any Loan as a LIBOR Loan or incur such Letter of Credit Obligation as a result of the fact
that such event or circumstance has occurred; 
  
 (c) any Default
or Event of Default has occurred and is continuing or would result after giving effect to any Advance (or the incurrence of any Letter of Credit Obligation), and Agent or Requisite Lenders shall have determined not to make any Advance, convert or
continue any Loan as a LIBOR Loan or incur any Letter of Credit Obligation as a result of that Default or Event of Default; 
  
 (d) if the proceeds of such requested Advance are to be used by any Borrower to consummate the Senior Subordinated Note Redemption Transaction and any of
the following conditions are not satisfied in full: (i) Borrowers shall have delivered to Agent a certificate of the Chief Financial Officer, or, in his absence, the Chief Accounting Officer, of Borrowers, substantially in the form attached hereto
as Exhibit 2.2(d), certifying and demonstrating that prior to and after giving effect to the making of such requested Advance and the consummation of the Senior Subordinated Note Redemption Transaction (A) each Credit Party will be Solvent
and (B) Borrowers are in compliance with the financial covenants in Annex G as of the most recently ended Fiscal Month (on a pro forma basis after giving effect to the proposed Senior Subordinated Note Redemption Transaction and the requested
Advance in connection therewith), (ii) no Default or Event of Default exists or would result therefrom, and (iii) Borrowers shall have unrestricted cash on hand plus Revolving Loan Borrowing Availability of at least $1,000,000 after giving effect to
any such Advance; 
  
 (e) after giving effect to any Revolving
Credit Advance (or the incurrence of any Letter of Credit Obligations), the outstanding principal amount of the Revolving Loan would exceed the Revolving Loan Borrowing Availability; 
  
 (f) after giving effect to any Revolving Credit Advance (or the incurrence of any Letter of Credit Obligations), the Total
Leverage Ratio or the Senior Leverage Ratio for Holdings and its Subsidiaries on a consolidated basis (computed on a pro forma basis to give effect to such Revolving Credit Advance or the incurrence of any Letter of Credit Obligations and any
substantially concurrent application of the proceeds thereof to repay outstanding Advances or Letter of Credit Obligations) would be greater than the applicable maximum Total Leverage Ratio or maximum Senior Leverage Ratio, as the case may be,
permitted pursuant to Section 6.10 and Annex G for the immediately preceding Fiscal Quarter; or 
  

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 (g) (i) at the time of and after giving effect to any Revolving Credit Advance (or the incurrence of any
Letter of Credit Obligations), Borrowers would not be permitted to incur such Indebtedness under the terms of the Senior Subordinated Note Indenture, or (ii) if the Notice of Revolving Credit Advance required to be delivered in connection with any
Revolving Credit Advance (or the incurrence of any Letter of Credit Obligations) does not contain a certification by the Borrower Representative that at the time of and after giving effect to any Revolving Credit Advance (or the incurrence of any
Letter of Credit Obligations), Borrowers would be permitted to incur such Indebtedness under the terms of the Senior Subordinated Note Indenture and no default or event of default has occurred and is continuing under the Senior Subordinated Note
Indenture. 
  
 The request and acceptance by any Borrower of the proceeds of any
Advance, the incurrence of any Letter of Credit Obligations or the conversion or continuation of any Revolving Loan or Acquisition Loan into, or as, a LIBOR Loan shall be deemed to constitute, as of the date thereof, (i) a representation and
warranty by Borrowers that the conditions in this Section 2.2 have been satisfied and (ii) a reaffirmation by Borrowers of the granting and continuance of Agent’s Liens, on behalf of itself and Lenders, pursuant to the Collateral
Documents. 
  
 2.3 Further Conditions to Each Acquisition Loan
Advance. Except as otherwise expressly provided herein, no Lender shall be obligated to fund any Acquisition Loan Advance if as of the date thereof: 
  
 (a) the conditions precedent in Section 2.2 shall not have been fully satisfied; 
  
 (b) after giving effect to any Acquisition Loan Advance, the outstanding principal amount of the Acquisition Loan would
exceed the Acquisition Loan Borrowing Availability; 
  
 (c)
Borrowers have failed to deliver to Agent a certificate of the Chief Financial Officer, or, in his absence, the Chief Accounting Officer, of Borrowers, in form and substance satisfactory to Agent, demonstrating that after giving effect to such
requested Acquisition Loan Advance Borrowers are in compliance with the Maximum Senior Leverage Ratio covenant in paragraph (d) of Annex G as of the most recently ended Fiscal Month (on a pro forma basis after giving effect to the requested
Acquisition Loan Advance); 
  
 (d) after giving effect to any
Acquisition Loan Advance, the Total Leverage Ratio or the Senior Leverage Ratio for Holdings and its Subsidiaries on a consolidated basis (computed on a pro forma basis after giving effect to such Acquisition Loan Advance) would be greater than the
applicable maximum Total Leverage Ratio or the maximum Senior Leverage Ratio, as the case may be, permitted pursuant to Section 6.10 and Annex G for the immediately preceding Fiscal Quarter; or 
  
 (e) (i) at the time of and after giving effect to any Acquisition Loan
Advance, Borrowers would not be permitted to incur such Indebtedness under the terms of the Senior Subordinated Note Indenture, or (ii) if the Notice of Acquisition Loan Advance required to be delivered in connection with any Acquisition Loan
Advance does not contain a certification by the Borrower Representative that at the time of and after giving effect to any Acquisition Loan 

  

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Advance, Borrowers would be permitted to incur such Indebtedness under the terms of the Senior Subordinated Note Indenture and no default or event of default
has occurred and is continuing under the Senior Subordinated Note Indenture. 
  
 The request and acceptance by any Borrower of the proceeds of any Acquisition Loan Advance shall be deemed to constitute, as of the date thereof, (i) a representation and warranty by Borrowers that the conditions in this Sections 2.2 and
2.3 have been satisfied and (ii) a reaffirmation by Borrowers of the cross-guaranty provisions set forth in Section 12 and of the granting and continuance of Agent’s Liens, on behalf of itself and Lenders, pursuant to the Collateral
Documents. 
  

	3.	REPRESENTATIONS AND WARRANTIES 

  
 To induce Lenders to make the Loans and to incur Letter of Credit Obligations, the Credit Parties executing this Agreement, jointly and severally, make
the following representations and warranties to Agent and each Lender with respect to all Credit Parties, each and all of which shall survive the execution and delivery of this Agreement. 
  
 3.1 Corporate Existence; Compliance with Law. Each Credit Party (a) is a corporation, limited liability company or
limited partnership duly organized, validly existing and in good standing under the laws of its respective jurisdiction of incorporation or organization set forth in Disclosure Schedule (3.1); (b) is duly qualified to conduct business and is
in good standing in each other jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be so qualified could not reasonably be expected to result in a Material
Adverse Effect; (c) has the requisite power and authority and the legal right to own, pledge, mortgage or otherwise encumber and operate its properties, to lease the property it operates under lease and to conduct its business as now, heretofore and
proposed to be conducted; (d) subject to specific representations regarding Environmental Laws, has all material licenses, permits, consents or approvals from or by, and has made all material filings with, and has given all material notices to, all
Governmental Authorities having jurisdiction, to the extent required for such ownership, operation and conduct; (e) is in compliance with its charter and bylaws or partnership or operating agreement, as applicable; and (f) subject to specific
representations set forth herein regarding ERISA, Environmental Laws, tax and other laws, is in compliance with all applicable provisions of law, except where the failure to comply, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect. 
  
 3.2 Executive Offices,
Collateral Locations, FEIN. As of the Closing Date, the current location of each Credit Party’s chief executive office, pharmacy locations and warehouses and premises at which any Collateral is located are set forth in Disclosure
Schedule (3.2), and none of the locations of the chief executive offices, pharmacy locations, or warehouses or other premises containing Inventory with values in excess of $250,000 has changed within 12 months preceding the Closing Date. In
addition, Disclosure Schedule (3.2) lists the federal employer identification and organization number of each Credit Party. 
  
 3.3 Corporate Power, Authorization, Enforceable Obligations. The execution, delivery and performance by each Credit Party of the Loan Documents to
which it is a party and 

  

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the creation of all Liens provided for therein: (a) are within such Person’s power; (b) have been duly authorized by all necessary corporate, limited
liability company or limited partnership action; (c) do not contravene any provision of such Person’s charter, bylaws or partnership or operating agreement as applicable; (d) do not violate any law or regulation, or any order or decree of any
court or Governmental Authority; (e) do not conflict with or result in the breach or termination of, constitute a default under or accelerate or permit the acceleration of any performance required by, any indenture, mortgage, deed of trust, lease,
agreement or other instrument to which such Person is a party or by which such Person or any of its property is bound; (f) do not result in the creation or imposition of any Lien upon any of the property of such Person other than those in favor of
Agent, on behalf of itself and Lenders, pursuant to the Loan Documents; and (g) do not require the consent or approval of any Governmental Authority or any other Person, except those referred to in Section 2.1(c), all of which will have been
duly obtained, made or complied with prior to the Closing Date. Each Loan Document and each Related Transactions Document to which any Credit Party is a party constitutes a valid and binding agreement of such Credit Party in each case enforceable in
accordance with its terms, subject to (i) the effect of any applicable bankruptcy, fraudulent transfer, moratorium, insolvency, reorganization or other similar laws affecting the rights of creditors generally and (ii) the effect of general
principles of equity whether applied by a court of equity or law. 
  
 3.4 Financial Statements and Projections. Except for the Projections and the Fair Salable Balance Sheet, all Financial Statements concerning Holdings and its Subsidiaries that are referred to below have been prepared in accordance
with GAAP consistently applied throughout the periods covered (except as disclosed therein and except, with respect to unaudited Financial Statements, for the absence of footnotes and normal year-end audit adjustments) and present fairly in all
material respects the financial position of the Persons covered thereby as at the dates thereof and the results of their operations and cash flows for the periods then ended. 
  
 (a) Financial Statements. The following Financial Statements attached hereto as Disclosure Schedule (3.4(a))
have been delivered on the date hereof: 
  
 (i)
The audited consolidated and consolidating balance sheets at September 30, 2002 and September 30, 2003 and the related statements of income and cash flows of Holdings and its Subsidiaries for the Fiscal Years then ended, certified by Ernst &
Young LLP. 
  
 (ii) The unaudited balance sheets
at December 31, 2002, March 31, 2003 and June 30, 2003 and the related statement(s) of income and cash flows of Holdings and its Subsidiaries for the Fiscal Quarters then ended. 
  
 (b) [reserved] 
  
 (c) Projections. The Projections delivered on the date hereof and attached hereto as Disclosure Schedule (3.4(c)) have been prepared by
Borrowers in light of the past operations of its businesses, but including future payments of known contingent liabilities reflected on the Fair Salable Balance Sheet, and reflect projections for the fiscal year period beginning on September 30,
2003 on a quarterly basis for the first year and on a year-by-year basis thereafter. The Projections are based upon estimates and assumptions stated therein, all of 

  

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which Borrowers believe to be reasonable and fair in light of current conditions and current facts known to Borrowers and, as of the Closing Date, reflect
Borrowers’ good faith and reasonable estimates of the future financial performance of Borrowers and of the other information projected therein for the period set forth therein. 
  
 (d) Fair Salable Balance Sheet. The Fair Salable Balance Sheet delivered on the date hereof and attached hereto as
Disclosure Schedule (3.4(d)) was prepared by Borrowers on the same basis as the unaudited balance sheets described in Section 3.4(a)(ii), except that Borrowers’ assets are set forth therein at their fair salable values on a
going concern basis and the liabilities set forth therein include all contingent liabilities of Borrowers stated at the reasonably estimated fair values thereof. 
  
 3.5 Material Adverse Effect. Between September 30, 2003 and the Closing Date, (a) no Credit Party has incurred any
obligations, contingent or noncontingent liabilities, liabilities for Charges, long-term leases or unusual forward or long-term commitments that are not reflected in the audited financial statements described in Section 3.4(a)(i) and that alone or
in the aggregate, could reasonably be expected to have a Material Adverse Effect, (b) no contract, lease or other agreement or instrument has been entered into by any Credit Party or has become binding upon any Credit Party’s assets and no law
or regulation applicable to any Credit Party has been adopted that has had or could reasonably be expected to have a Material Adverse Effect, and (c) no Credit Party is in default and to the best of Borrowers’ knowledge no third party is in
default under any material contract, lease or other agreement or instrument, that alone or in the aggregate could reasonably be expected to have a Material Adverse Effect. Between September 30, 2003 and the Closing Date no event has occurred, that
alone or together with other events, could reasonably be expected to have a Material Adverse Effect. 
  
 3.6 Ownership of Property; Liens. As of the Closing Date, the Credit Parties do not own any real estate other than as set forth on Disclosure
Schedule (3.6). The Real Estate listed in Disclosure Schedule (3.6) (“Real Estate”) constitutes all of the real property, leased, subleased, or used by any Credit Party. Each Credit Party has valid and marketable
leasehold interests in all of its leased Real Estate, all as described on Disclosure Schedule (3.6), and copies of all such leases or a summary of terms thereof reasonably satisfactory to Agent have been delivered to Agent. Disclosure
Schedule (3.6) further describes any Real Estate with respect to which any Credit Party is a lessor, sublessor or assignor as of the Closing Date. Each Credit Party also has good and marketable title to, or valid leasehold interests in, all of
its personal property and assets. As of the Closing Date, none of the properties and assets of any Credit Party are subject to any Liens other than Permitted Encumbrances, and there are no facts, circumstances or conditions known to any Credit Party
that may result in any Liens (including Liens arising under Environmental Laws) other than Permitted Encumbrances. Each Credit Party has received all deeds, assignments, waivers, consents, nondisturbance and attornment or similar agreements, bills
of sale and other documents, and has duly effected all recordings, filings and other actions necessary to establish, protect and perfect such Credit Party’s right, title and interest in and to all such Real Estate and other properties and
assets. Disclosure Schedule (3.6) also describes any purchase options, rights of first refusal or other similar contractual rights pertaining to any Real Estate. As of the Closing Date, no portion of any Credit Party’s Real Estate has
suffered any material damage by fire or other casualty loss that has not heretofore been repaired and restored in all material respects to its original condition or otherwise remedied. 

  

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As of the Closing Date, all material permits required to have been issued or appropriate to enable the Real Estate to be lawfully occupied and used for all
of the purposes for which it is currently occupied and used have been lawfully issued and are in full force and effect. 
  
 3.7 Labor Matters. As of the Closing Date (a) no strikes or other material labor disputes against any Credit Party are pending or, to any Credit
Party’s knowledge, threatened; (b) hours worked by and payment made to employees of each Credit Party comply with the Fair Labor Standards Act and each other federal, state, local or foreign law applicable to such matters, except where any
non-compliance could not reasonably be expected to have a Material Adverse Effect; (c) all payments due from any Credit Party for employee health and welfare insurance have been paid or accrued as a liability on the books of such Credit Party; (d)
except as set forth in Disclosure Schedule (3.7), no Credit Party is a party to or bound by any collective bargaining agreement, management agreement, consulting agreement, employment agreement, bonus, restricted stock, stock option, or stock
appreciation plan or agreement or any similar plan, agreement or arrangement (and true and complete copies of any agreements described on Disclosure Schedule (3.7) have been delivered to Agent); (e) there is no organizing activity involving
any Credit Party pending or, to any Credit Party’s knowledge, threatened by any labor union or group of employees; (f) there are no representation proceedings pending or, to any Credit Party’s knowledge, threatened with the National Labor
Relations Board, and no labor organization or group of employees of any Credit Party has made a pending demand for recognition; and (g) except as set forth in Disclosure Schedule (3.7), there are no material complaints or charges against any
Credit Party pending or, to the knowledge of any Credit Party, threatened to be filed with any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the employment or termination of employment by
any Credit Party of any individual. 
  
 3.8 Ventures,
Subsidiaries and Affiliates; Outstanding Stock and Indebtedness. Except as set forth in Disclosure Schedule (3.8), as of the Closing Date, no Credit Party has any Subsidiaries, is engaged in any joint venture or partnership with any other
Person, or is an Affiliate of any other Person. All of the issued and outstanding Stock of each Credit Party is owned by each of the Stockholders and in the amounts set forth in Disclosure Schedule (3.8). Except as set forth in Disclosure
Schedule (3.8), there are no outstanding rights to purchase, options, warrants or similar rights or agreements pursuant to which any Credit Party may be required to issue, sell, repurchase or redeem any of its Stock or other equity securities or
any Stock or other equity securities of its Subsidiaries. All outstanding Indebtedness and Guaranteed Indebtedness of each Credit Party as of the Closing Date (except for the Obligations) is described in Section 6.3 (including Disclosure
Schedule (6.3)). Except as set forth on Disclosure Schedule (3.8), none of the Credit Parties other than Borrowers have any assets (except Stock of their Subsidiaries) or any Indebtedness or Guaranteed Indebtedness (except the
Obligations). 
  
 3.9 Government Regulation. No Credit
Party is an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act of 1940.
No Credit Party is subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, or any other federal or state statute that restricts or limits its ability to incur Indebtedness or to perform its obligations
hereunder. The making of the Loans by Lenders to 

  

 24 








 
Borrowers, the incurrence of the Letter of Credit Obligations on behalf of Borrowers, the application of the proceeds thereof and repayment thereof and the
consummation of the Related Transactions will not violate any provision of any such statute or any rule, regulation or order issued by the Securities and Exchange Commission. 
  
 3.10 Margin Regulations. No Credit Party is engaged, nor will it engage, principally or as one of its important
activities, in the business of extending credit for the purpose of “purchasing” or “carrying” any “margin stock” as such terms are defined in Regulation U of the Federal Reserve Board as now and from time to time
hereafter in effect (such securities being referred to herein as “Margin Stock”). No Credit Party owns any Margin Stock, and none of the proceeds of the Loans or other extensions of credit under this Agreement will be used, directly
or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause any of
the Loans or other extensions of credit under this Agreement to be considered a “purpose credit” within the meaning of Regulations T, U or X of the Federal Reserve Board. No Credit Party will take or permit to be taken any action that
might cause any Loan Document to violate any regulation of the Federal Reserve Board. 
  
 3.11 Taxes. All tax returns, reports and statements, including information returns, required by any Governmental Authority to be filed by any Credit Party have been filed with the appropriate Governmental
Authority and all Charges have been paid prior to the date on which any fine, penalty, interest or late charge may be added thereto for nonpayment thereof (or any such fine, penalty, interest, late charge or loss has been paid), excluding Charges or
other amounts being contested in accordance with Section 5.2(b). Proper and accurate amounts have been withheld by each Credit Party from its respective employees for all periods in compliance with all applicable federal, state, local and
foreign laws and such withholdings have been timely paid to the respective Governmental Authorities. Disclosure Schedule (3.11) sets forth as of the Closing Date those taxable years for which any Credit Party’s tax returns are currently
being audited by the IRS or any other applicable Governmental Authority and any assessments or threatened assessments in connection with such audit, or otherwise currently outstanding. Except as described in Disclosure Schedule (3.11), no
Credit Party has executed or filed with the IRS or any other Governmental Authority any agreement or other document extending, or having the effect of extending, the period for assessment or collection of any Charges. None of the Credit Parties and
their respective predecessors are liable for any Charges: (a) under any agreement (including any tax sharing agreements) or (b) to each Credit Party’s knowledge, as a transferee. As of the Closing Date, no Credit Party has agreed or been
requested to make any adjustment under IRC Section 481(a), by reason of a change in accounting method or otherwise, which would have a Material Adverse Effect. 
  

3.12 ERISA. 
  
 (a) Disclosure Schedule (3.12) lists all Plans and separately identifies all Pension Plans, including Title IV Plans, Multiemployer Plans, ESOPs
and Welfare Plans, including all Retiree Welfare Plans. Copies of all such listed Plans, together with a copy of the latest form. IRS/DOL 5500-series for each such Plan have been delivered to Agent. Except with respect to Multiemployer Plans, each
Qualified Plan has been determined by the IRS to qualify 

  

 25 








 
under Section 401 of the IRC, the trusts created thereunder have been determined to be exempt from tax under the provisions of Section 501 of the IRC, and
nothing has occurred that would cause the loss of such qualification or tax-exempt status. Each Plan is in compliance with the applicable provisions of ERISA and the IRC, including the timely filing of all reports required under the IRC or ERISA,
including the statement required by 29 CFR Section 2520.104-23, except where any noncompliance could not reasonably be expected to result in a Material Adverse Effect. Neither any Credit Party nor ERISA Affiliate has failed to make any contribution
or pay any amount due as required by either Section 412 of the IRC or Section 302 of ERISA or the terms of any such Plan. Neither any Credit Party nor ERISA Affiliate has engaged in a “prohibited transaction,” as defined in Section 406 of
ERISA and Section 4975 of the IRC, in connection with any Plan, that would subject any Credit Party to a material tax on prohibited transactions imposed by Section 502(i) of ERISA or Section 4975 of the IRC. 
  
 (b) Except as set forth in Disclosure Schedule (3.12): (i) no Title IV
Plan has any Unfunded Pension Liability; (ii) no ERISA Event or event described in Section 4062(e) of ERISA with respect to any Title IV Plan has occurred or is reasonably expected to occur; (iii) there are no pending, or to the knowledge of any
Credit Party, threatened claims (other than claims for benefits in the normal course), sanctions, actions or lawsuits, asserted or instituted against any Plan or any Person as fiduciary or sponsor of any Plan; (iv) no Credit Party or ERISA Affiliate
has incurred or reasonably expects to incur any liability as a result of a complete or partial withdrawal from a Multiemployer Plan; (v) within the last five years no Title IV Plan of any Credit Party or ERISA Affiliate has been terminated, whether
or not in a “standard termination” as that term is used in Section 404(b)(1) of ERISA, nor has any Title IV Plan of any Credit Party or ERISA Affiliate (determined at any time within the past five years) with Unfunded Pension Liabilities
been transferred outside of the “controlled group” (within the meaning of Section 4001(a)(14) of ERISA) of any Credit Party or ERISA Affiliate; (vi) except in the case of any ESOP, Stock of all Credit Parties and their ERISA Affiliates
makes up, in the aggregate, no more than 10% of fair market value of the assets of any Plan measured on the basis of fair market value as of the latest valuation date of any Plan; and (vii) no liability under any Title IV Plan has been satisfied
with the purchase of a contract from an insurance company that is not rated AAA by the Standard & Poor’s Corporation or an equivalent rating by another nationally recognized rating agency. 
  
 3.13 No Litigation. No action, claim, lawsuit, demand, investigation
or proceeding is now pending or, to the knowledge of any Credit Party, threatened against any Credit Party, before any Governmental Authority or before any arbitrator or panel of arbitrators (collectively, “Litigation”), (a) that
challenges any Credit Party’s right or power to enter into or perform any of its obligations under the Loan Documents to which it is a party, or the validity or enforceability of any Loan Document or any action taken thereunder, or (b) that has
a reasonable risk of being determined adversely to any Credit Party and that, if so determined, could reasonably be expected to have a Material Adverse Effect. Except as set forth on Disclosure Schedule (3.13), as of the Closing Date there is
no Litigation pending or threatened that seeks damages in excess of $250,000 or injunctive relief against, or alleges criminal misconduct of, any Credit Party. 
  

3.14 Brokers. No broker or finder acting on behalf of any Credit Party or Affiliate thereof brought about the obtaining, making or closing of
the Loans or the Related 

  

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Transactions, and no Credit Party or Affiliate thereof has any obligation to any Person in respect of any finder’s or brokerage fees in connection
therewith. 
  
 3.15 Intellectual Property. As of the
Closing Date, each Credit Party owns or has rights to use all Intellectual Property necessary to continue to conduct its business as now or heretofore conducted by it or proposed to be conducted by it, and each Patent, Trademark, Copyright and
License is listed, together with application or registration numbers, as applicable, in Disclosure Schedule (3.15). Each Credit Party conducts its business and affairs without infringement of or interference with any Intellectual Property of
any other Person in any material respect. Except as set forth in Disclosure Schedule (3.15), no Credit Party is aware of any infringement claim by any other Person with respect to any Intellectual Property. 
  
 3.16 Full Disclosure. No information contained in this Agreement, any
of the other Loan Documents, Financial Statements or Collateral Reports or other written reports from time to time delivered hereunder or any written statement or certificate furnished by or on behalf of any Credit Party to Agent or any Lender
pursuant to the terms of this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading in light of the
circumstances under which they were made. The Projections are based upon estimates and assumptions stated therein, all of which the Borrowers believe to be reasonable and fair in light of current conditions and current facts known to the Borrowers
and, as of the Closing Date, reflect the Borrowers’ good faith and reasonable estimates of the future financial performance of the Borrowers and its Subsidiaries and of the other information projected therein for the period set forth therein.
The Liens granted to Agent, on behalf of itself and Lenders, pursuant to the Collateral Documents will at all times be fully perfected first priority Liens in and to the Collateral described therein, subject, as to priority, only to Permitted
Encumbrances. 
  
 3.17 Environmental Matters. 

 
 (a) (i) The Real Estate is free of contamination from any Hazardous
Material except for such contamination that would not adversely impact the value or marketability of such Real Estate and that would not result in Environmental Liabilities that could reasonably be expected to exceed $300,000; (ii) no Credit Party
has caused or suffered to occur any Release of Hazardous Materials on, at, in, under, above, to, from or about any of its Real Estate; (iii) the Credit Parties are and have been in compliance with all Environmental Laws, except for such
noncompliance that would not result in Environmental Liabilities which could reasonably be expected to exceed $300,000; (iv) the Credit Parties have obtained, and are in compliance with, all Environmental Permits required by Environmental Laws for
the operations of their respective businesses as presently conducted or as proposed to be conducted, except where the failure to so obtain or comply with such Environmental Permits would not result in Environmental Liabilities that could reasonably
be expected to exceed $300,000, and all such Environmental Permits are valid, uncontested and in good standing; (v) no Credit Party is involved in operations or knows of any facts, circumstances or conditions, including any Releases of Hazardous
Materials, that are likely to result in any Environmental Liabilities of such Credit Party which could reasonably be expected to exceed $300,000, and no Credit Party has permitted any current or former tenant or occupant of the Real Estate to engage
in any such operations; (vi) there is no Litigation arising under or related to any Environmental Laws, Environmental Permits or Hazardous Material that 

  

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seeks damages, penalties, fines, costs or expenses in excess of $300,000 or injunctive relief against, or that alleges criminal misconduct by, any Credit
Party; (vii) no notice has been received by any Credit Party identifying it as a “potentially responsible party” or requesting information under CERCLA or analogous state statutes, and to the knowledge of the Credit Parties, there are no
facts, circumstances or conditions that may result in any Credit Party being identified as a “potentially responsible party” under CERCLA or analogous state statutes; and (viii) the Credit Parties have provided to Agent copies of all
existing environmental reports, reviews and audits and all written information pertaining to actual or potential Environmental Liabilities, in each case relating to any Credit Party. 
  
 (b) Each Credit Party hereby acknowledges and agrees that Agent (i) is not now, and has not ever been, in control of any of
the Real Estate or any Credit Party’s affairs, and (ii) does not have the capacity through the provisions of the Loan Documents or otherwise to influence any Credit Party’s conduct with respect to the ownership, operation or management of
any of its Real Estate or compliance with Environmental Laws or Environmental Permits. 
  
 3.18 Insurance. Disclosure Schedule (3.18) lists all insurance policies of any nature maintained, as of the Closing Date, for current occurrences by each Credit Party, as well as a summary of the terms
of each such policy. 
  
 3.19 Deposit and Disbursement
Accounts. Disclosure Schedule (3.19) lists all banks and other financial institutions at which any Credit Party maintains deposit or other accounts as of the Closing Date, including any Disbursement Accounts, and such Schedule correctly
identifies the name, address and telephone number of each depository, the name in which the account is held, a description of the purpose of the account, and the complete account number therefor. 
  
 3.20 [Reserved] 
  
 3.21 Customer and Trade Relations. As of the Closing Date, there exists no actual or, to the knowledge of any Credit
Party, threatened termination or cancellation of, or any material adverse modification or change in: the business relationship of any Credit Party with any customer or group of customers whose purchases during the preceding 12 months caused them to
be ranked among the ten largest customers of such Credit Party; or the business relationship of any Credit Party with any supplier material to its operations. 
  

3.22 Agreements and Other Documents. As of the Closing Date, each Credit Party has provided to Agent or its counsel, on behalf of Lenders,
accurate and complete copies (or summaries) of all of the following agreements or documents to which it is subject and each of which is listed in Disclosure Schedule (3.22): supply agreements and purchase agreements not terminable by such
Credit Party within 60 days following written notice issued by such Credit Party and involving transactions in excess of $1,000,000 per annum; leases of Equipment having a remaining term of one year or longer and requiring aggregate rental and other
payments in excess of $500,000 per annum; licenses and permits held by the Credit Parties, the absence of which could be reasonably likely to have a Material Adverse Effect; instruments and documents evidencing any Indebtedness or Guaranteed
Indebtedness of such Credit Party and any Lien granted by such Credit Party with respect thereto; and instruments and agreements evidencing 

  

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the issuance of any equity securities, warrants, rights or options to purchase equity securities of such Credit Party. 
  
 3.23 Solvency. Both before and after giving effect to (a) the Loans
and Letter of Credit Obligations to be made or incurred on the Closing Date or such other date as Loans and Letter of Credit Obligations requested hereunder are made or incurred, (b) the disbursement of the proceeds of such Loans pursuant to the
instructions of Borrower Representative, (c) the Senior Subordinated Note Redemption Transaction and the consummation of the other Related Transactions and (d) the payment and accrual of all transaction costs in connection with the foregoing, each
Credit Party is and will be Solvent. 
  
 3.24 Holding Company
Status of Holdings and PSA Capital. Prior to the Closing Date and at all times on and thereafter, Holdings and PSA Capital will not have engaged in any business, except as described in Disclosure Schedule (6.21) or incurred any
Indebtedness or any other liabilities, except (a) in connection with corporate formation, the Related Transactions Documents and this Agreement, (b) for Indebtedness described on Disclosure Schedule (6.3), (c) any other Indebtedness expressly
permitted under Section 6.3 and (d) Indebtedness and liabilities described on Disclosure Schedule (3.24) in connection with tax and/or insurance related restructuring that occurs prior to the Closing Date. 
  
 3.25 Compliance with Healthcare Laws. Each of the Credit Parties, and
each of their licensed employees and contractors (other than contracted agencies) in the exercise of their respective duties on behalf of the Credit Parties, are in compliance with all applicable Healthcare Laws, except to the extent that
non-compliance could not reasonably be expected to result in a Material Adverse Effect. Each of the Credit Parties has maintained in all material respects all records required to be maintained by the Joint Commission on Accreditation of Healthcare
Organizations, the Food and Drug Administration, Drug Enforcement Agency and State Boards of Pharmacy or similar organizations and the federal and state Medicare and Medicaid programs as required by the Healthcare Laws and, to the knowledge of the
Borrowers, there are no presently existing circumstances which would result or likely would result in material violations of the Healthcare Laws. Each of the Credit Parties have such permits, licenses, franchises, certificates and other approvals or
authorizations of governmental or regulatory authorities as are necessary under applicable law to own its properties and to conduct its business (including, without limitation, such permits as are required under such federal, state and other health
care laws, and under such HMO or similar licensure laws and such insurance laws and regulations, as are applicable thereto), and with respect to those businesses that participate in Medicare and/or Medicaid, to receive reimbursement under Medicare
and Medicaid. To the Borrowers’ knowledge, there currently exist no material restrictions, deficiencies, required plans of correction actions or other such remedial measures with respect to any Credit Party’s federal and state Medicare
Certifications and Medicaid Certifications or licensure. 
  
 3.26
HIPAA Compliance. 
  
 (a) To the extent that and for so
long as (i) a Credit Party is a “covered entity” as defined in 45 C.F.R. § 160.103, (ii) a Credit Party and/or its business and operations are subject to or covered by the HIPAA Administrative Requirements codified at 45 C.F.R. Parts
160 & 162 (the “Transactions Rule”) and/or the HIPAA Security and Privacy Requirements 

  

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codified at 45 C.F.R. Parts 160 & 164 (the “Privacy and Security Rules”), and/or (iii) a Credit Party sponsors any “group health
plans” as defined in 45 C.F.R. § 160.103, each such Credit Party has: (x) completed, or will complete on or before any applicable compliance date, thorough and detailed surveys, audits, inventories, reviews, analyses and/or assessments,
including risk assessments, (collectively “Assessments”) of all areas of its business and operations subject to HIPAA and/or that could be adversely affected by the failure of such Credit Party to be HIPAA Compliant (as defined
below) to the extent these Assessments are appropriate or required for such Credit Party to be HIPAA Compliant; (y) developed, or will develop on or before any applicable compliance date, a detailed plan and time line for becoming HIPAA Compliant (a
“HIPAA Compliance Plan”); and (z) implemented, or will implement on or before any applicable compliance date, those provisions of its HIPAA Compliance Plan necessary to ensure that such Credit Party is HIPAA Compliant. For purposes
of this Agreement, “HIPAA Compliant” shall mean that an applicable Credit Party (1) is, or on or before any applicable compliance date will be, in compliance in all material respects with any and all of the applicable requirements of
HIPAA, including all requirements of the Transactions Rule and the Privacy and Security Rules and (2) is not subject to, and could not reasonably be expected to become subject to, any civil or criminal penalty or any investigation, claim or process
that could reasonably be expected to have a Material Adverse Effect in connection with any violation by such Credit Party of the then effective requirements of HIPAA. 
  
 (b) Each Credit Party represents that it, collectively with certain other affiliates of such Credit Party have elected to be
treated as a single covered entity in accordance with the Privacy and Security Rules (45 C.F.R. § 164.504(d)) (the “Affiliated Entity”). As such, each Credit Party represents and warrants that it has the legal right, power and
authority to execute the Business Associate Agreement on behalf of the Affiliated Entity, in accordance with the Privacy and Security Rules, and that the provisions of the Business Associate Agreement shall be binding upon each Credit Party and all
of such Credit Party’s affiliates that are participating in the Affiliated Entity, in accordance with the Privacy and Security Rules, as if each and every such affiliate were a party to such Business Associate Agreement directly. 
  
 3.27 Third Party Reimbursement. Except as set forth on Disclosure
Schedule (3.27), if any Credit Party is or has been audited by Medicare, Medicaid, TRICARE, CHAMPVA or similar governmental payors, none of such audits provides for adjustments in reimbursable costs or asserts claims for reimbursement or
repayment by such Credit Party of costs and/or payments theretofore made by such governmental payor that, if adversely determined, could reasonably be expected to have or result in a Material Adverse Effect. 
  
 3.28 Participation Agreements. Disclosure Schedule (3.28)
hereto sets forth an accurate, complete and current list of all participation agreements with health maintenance organizations, insurance programs, Third Party Payors and preferred provider organizations with respect to each Credit Party.

  

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	4.	FINANCIAL STATEMENTS AND INFORMATION 

  
 4.1 Reports and Notices. 
  
 (a) Each Credit Party executing this Agreement hereby agrees that from and after the Closing Date and until the Termination Date, it shall deliver to
Agent or to Agent and Lenders, as required, the Financial Statements, notices, Projections and other information at the times, to the Persons and in the manner set forth in Annex E. 
  
 (b) Each Credit Party executing this Agreement hereby agrees that from and
after the Closing Date and until the Termination Date, it shall deliver to Agent or to Agent and Lenders, as required, the various Collateral Reports (including Borrowing Base Certificates in the form of Exhibit 4.1(b)) at the times, to the
Persons and in the manner set forth in Annex F. 
  
 4.2
Communication with Accountants. Each Credit Party executing this Agreement authorizes (a) Agent and (b) so long as an Event of Default has occurred and is continuing, each Lender, to communicate directly with its independent certified public
accountants, including Ernst & Young LLP, and authorizes and, at Agent’s request, shall instruct those accountants and advisors to disclose and make available to Agent and each Lender any and all Financial Statements and other supporting
financial documents, schedules and information relating to any Credit Party (including copies of any issued management letters) with respect to the business, financial condition and other affairs of any Credit Party. 
  

	5.	AFFIRMATIVE COVENANTS 

  
 Each Credit Party executing this Agreement jointly and severally agrees as to all Credit Parties that from and after the date hereof and until the
Termination Date: 
  
 5.1 Maintenance of Existence and Conduct
of Business. Each Credit Party shall: do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and its rights and franchises; continue to conduct its business substantially as now
conducted or as otherwise permitted hereunder; at all times maintain, preserve and protect all of its assets and properties used or useful in the conduct of its business, and keep the same in good repair, working order and condition in all material
respects (taking into consideration ordinary wear and tear) and from time to time make, or cause to be made, all necessary or appropriate repairs, replacements and improvements thereto consistent with industry practices; and transact business only
in such corporate and trade names as are set forth in Disclosure Schedule (5.1). 
  
 5.2 Payment of Charges. 
  
 (a) Subject to Section 5.2(b), each Credit Party shall pay and discharge or cause to be paid and discharged promptly all Charges payable by it, including (i) Charges imposed upon it, its income and profits, or any of its property
(real, personal or mixed) and all Charges with respect to tax, social security and unemployment withholding with respect to its employees, (ii) lawful claims for labor, materials, supplies and services or otherwise, and (iii) all storage or rental
charges payable to warehousemen and bailees, in each case, before any thereof shall become past due. 
  

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 (b) Each Credit Party may in good faith contest, by appropriate proceedings, the validity or amount of
any Charges, Taxes or claims described in Section 5.2(a); provided, that (i) adequate reserves with respect to such contest are maintained on the books of such Credit Party, in accordance with GAAP; (ii) no Lien shall be imposed to
secure payment of such Charges (other than payments to warehousemen and/or bailees) that is superior to any of the Liens securing payment of the Obligations and such contest is maintained and prosecuted continuously and with diligence and operates
to suspend collection or enforcement of such Charges, (iii) none of the Collateral becomes subject to forfeiture or loss as a result of such contest, (iv) such Credit Party shall promptly pay or discharge such contested Charges, Taxes or claims and
all additional charges, interest, penalties and expenses, if any, and shall deliver to Agent evidence reasonably acceptable to Agent of such compliance, payment or discharge, if such contest is terminated or discontinued adversely to such Credit
Party or the conditions set forth in this Section 5.2(b) are no longer met, and (v) Agent has not advised Borrowers in writing that Agent reasonably believes that nonpayment or nondischarge thereof could have or result in a Material Adverse
Effect. 
  
 5.3 Books and Records. Each Credit Party shall
keep adequate books and records with respect to its business activities in which proper entries, reflecting all financial transactions, are made in accordance with GAAP and on a basis consistent with the Financial Statements attached as
Disclosure Schedule (3.4(a)). 
  
 5.4 Insurance; Damage
to or Destruction of Collateral. 
  
 (a) The Credit Parties
shall, at their sole cost and expense, maintain the policies of insurance described on Disclosure Schedule (3.18) as in effect on the date hereof or otherwise in form and amounts and with insurers reasonably acceptable to Agent, including
maintenance of insurance pursuant to the Approved Insurance Plan. Such policies of insurance (or the loss payable and additional insured endorsements delivered to Agent) shall contain provisions pursuant to which the insurer agrees to provide 30
days prior written notice to Agent in the event of any non-renewal, cancellation or amendment of any such insurance policy. If any Credit Party at any time or times hereafter shall fail to obtain or maintain any of the policies of insurance required
above or to pay all premiums relating thereto, Agent may at any time or times thereafter obtain and maintain such policies of insurance and pay such premiums and take any other action with respect thereto that Agent deems advisable in its reasonable
discretion. Agent shall have no obligation to obtain insurance for any Credit Party or pay any premiums therefor. By doing so, Agent shall not be deemed to have waived any Default or Event of Default arising from any Credit Party’s failure to
maintain such insurance or pay any premiums therefor. All sums so disbursed, including reasonable attorneys’ fees, court costs and other charges related thereto, shall be payable on demand by Borrowers to Agent and shall be additional
Obligations hereunder secured by the Collateral. 
  
 (b) Each
Credit Party shall deliver to Agent, in form and substance reasonably satisfactory to Agent, endorsements to (i) all “All Risk” and business interruption insurance naming Agent, on behalf of itself and Lenders, as loss payee, and (ii) all
general liability and other liability policies naming Agent, on behalf of itself and Lenders, as additional insured. Each Credit Party irrevocably makes, constitutes and appoints Agent (and all officers, employees or agents designated by Agent), so
long as any Event of Default has occurred and is continuing or 

  

 32 








 
the anticipated insurance proceeds exceed $500,000, as such Credit Party’s true and lawful agent and attorney-in-fact for the purpose of making,
settling and adjusting claims under such “All Risk” policies of insurance, endorsing the name of each Credit Party on any check or other item of payment for the proceeds of such “All Risk” policies of insurance and for making all
determinations and decisions with respect to such “All Risk” policies of insurance. Agent shall have no duty to exercise any rights or powers granted to it pursuant to the foregoing power-of-attorney. Borrowers shall promptly notify Agent
of any loss, damage, or destruction to the Collateral in the amount of $500,000 or more, whether or not covered by insurance. After deducting from such proceeds the expenses, if any, incurred by Agent in the collection or handling thereof, Agent
may, at its option, apply such proceeds to the reduction of the Obligations in accordance with Section 1.3(d), provided that in the case of insurance proceeds pertaining to any Credit Party other than Borrowers, such insurance proceeds
shall be applied to the Loans owing by Borrowers, or permit or require Borrowers to use such money, or any part thereof, to replace, repair, restore or rebuild the Collateral in a diligent and expeditious manner with materials and workmanship of
substantially the same quality as existed before the loss, damage or destruction. Notwithstanding the foregoing, if the casualty giving rise to such insurance proceeds could not reasonably be expected to have a Material Adverse Effect and such
insurance proceeds do not exceed $500,000 in the aggregate, Agent shall permit the applicable Credit Party to replace, restore, repair or rebuild the property; provided that if the applicable Credit Party has not completed or entered into
binding agreements to complete such replacement, restoration, repair or rebuilding within 180 days of such casualty, Agent may apply such insurance proceeds to the Obligations in accordance with Section 1.3(d), provided that in the
case of insurance proceeds pertaining to any Credit Party other than Borrowers, such insurance proceeds shall be applied to the Loans owing by Borrowers. All insurance proceeds that are to be made available to Borrowers to replace, repair, restore
or rebuild the Collateral shall be applied by Agent to reduce the outstanding principal balance of the Revolving Loan (which application shall not result in a permanent reduction of the Revolving Loan Commitment) and upon such application, Agent
shall establish a Reserve against the Borrowing Base in an amount equal to the amount of such proceeds so applied. All insurance proceeds made available to any Credit Party that is not a Borrower to replace, repair, restore or rebuild Collateral
shall be deposited in a cash collateral account. Thereafter, such funds shall be made available to such Credit Party to provide funds to replace, repair, restore or rebuild the Collateral as follows: (i) Borrower Representative shall request a
Revolving Credit Advance be made to Borrowers in the amount requested to be released; (ii) so long as the conditions set forth in Section 2.2 have been met, Revolving Lenders shall make such Revolving Credit Advance or Agent shall release
funds from the cash collateral account; and (iii) in the case of insurance proceeds applied against the Revolving Loan, the Reserve established with respect to such insurance proceeds shall be reduced by the amount of such Revolving Credit Advance.
To the extent not used to replace, repair, restore or rebuild the Collateral, such insurance proceeds shall be applied in accordance with Section 1.3(d). 
  

5.5 Compliance with Laws. Each Credit Party shall comply with all federal, state, local and foreign laws and regulations applicable to it,
including those relating to Healthcare Laws, ERISA and labor matters (but excluding compliance with Environmental Laws and Environmental Permits, which compliance is addressed in Section 5.8 below), except to the extent that the failure to
comply, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
  

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 5.6 Supplemental Disclosure. From time to time as may be reasonably requested by Agent (which
request will not be made more frequently than once each year absent the occurrence and continuance of a Default or an Event of Default), the Credit Parties shall supplement each Disclosure Schedule hereto, or any representation herein or in any
other Loan Document, with respect to any matter hereafter arising that, if existing or occurring at the date of this Agreement, would have been required to be set forth or described in such Disclosure Schedule or as an exception to such
representation or that is necessary to correct any information in such Disclosure Schedule or representation which has been rendered inaccurate thereby (and, in the case of any supplements to any Disclosure Schedule, such Disclosure Schedule shall
be appropriately marked to show the changes made therein); provided that (a) no such supplement to any such Disclosure Schedule or representation shall amend, supplement or otherwise modify any Disclosure Schedule or representation, or be or
be deemed a waiver of any Default or Event of Default resulting from the matters disclosed therein, except as consented to by Agent and Requisite Lenders in writing, and (b) no supplement shall be required or permitted as to representations and
warranties that relate solely to the Closing Date. 
  
 5.7
Intellectual Property. Each Credit Party will conduct its business and affairs without infringement of or interference with any Intellectual Property of any other Person in any material respect. 
  
 5.8 Environmental Matters. Each Credit Party shall and shall cause
each Person within its control to: (a) conduct its operations and keep and maintain its Real Estate in compliance with all Environmental Laws and Environmental Permits other than noncompliance that, individually or in the aggregate, could not
reasonably be expected to result in Environmental Liabilities in excess of $300,000; (b) implement any and all investigation, remediation, removal and response actions that are appropriate or necessary to maintain the value and marketability of the
Real Estate or to otherwise comply with Environmental Laws and Environmental Permits pertaining to the presence, generation, treatment, storage, use, disposal, transportation or Release of any Hazardous Material on, at, in, under, above, to, from or
about any of its Real Estate; (c) notify Agent promptly after such Credit Party becomes aware of any violation of Environmental Laws or Environmental Permits or any Release on, at, in, under, above, to, from or about any Real Estate that is
reasonably likely to result in Environmental Liabilities in excess of $300,000; and (d) promptly forward to Agent a copy of any order, notice, request for information or any communication or report received by such Credit Party in connection with
any such violation or Release or any other matter relating to any Environmental Laws or Environmental Permits that could reasonably be expected to result in Environmental Liabilities in excess of $300,000, in each case whether or not the
Environmental Protection Agency or any Governmental Authority has taken or threatened any action in connection with any such violation, Release or other matter. If Agent at any time has a reasonable basis to believe that there may be a violation of
any Environmental Laws or Environmental Permits by any Credit Party or any Environmental Liability arising thereunder, or a Release of Hazardous Materials on, at, in, under, above, to, from or about any of its Real Estate, that, individually or in
the aggregate, could reasonably be expected to result in Environmental Liabilities in excess of $300,000, then each Credit Party shall, upon Agent’s written request (i) cause the performance of such environmental audits including subsurface
sampling of soil and groundwater, and preparation of such environmental reports, at Borrowers’ expense, as Agent may from time to time reasonably request, which shall be conducted by reputable environmental consulting firms 

  

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reasonably acceptable to Agent and shall be in form and substance reasonably acceptable to Agent, and (ii) permit Agent or its representatives to have access
to all Real Estate for the purpose of conducting such environmental audits and testing as Agent deems reasonably appropriate, including subsurface sampling of soil and groundwater. Borrowers shall reimburse Agent for the costs of such audits and
tests and the same will constitute a part of the Obligations secured hereunder. 
  
 5.9 Landlords’ Agreements, Mortgagee Agreements, Bailee Letters and Real Estate Purchases. Each Credit Party shall obtain a Landlord Agreement, mortgagee agreement or bailee letter, as applicable, from the
lessor of each leased property, mortgagee of owned property or bailee with respect to (i) the chief executive office of such Credit Party, (ii) any location where books and records relating to the Accounts of any Credit Party are located, (iii) any
pharmacy location of any Credit Party and (iv) any warehouse, processor or converter facility or other location of any Credit Party where Inventory or other Collateral having value in excess of $250,000 in the aggregate is stored or located, which
agreement or letter shall contain a waiver or subordination of all Liens or claims that the landlord, mortgagee or bailee may assert against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and substance to
Agent. If on the Closing Date, any Credit Party has failed to obtain a Landlord Waiver with respect to any leased location existing on the Closing Date of the type described under clause (iii) or (iv) of the immediately preceding sentence then, in
such case, Agent may in it is sole discretion impose a Reserve against Borrowing Availability in the amount equal to three months rent for each such leased location where no Landlord Waiver is obtained. In addition to the foregoing, until such time
as a Landlord Agreement satisfactory to Agent is obtained with respect to the leased premises located at located at 15535 West Hardy Road, Suite 102A &B, Houston, Texas, or a properly authorized UCC 3 termination statement is filed which results
in the termination of the financing statement naming Houston Industrial Assets, L.P., as secured party, Borrowers shall not permit Collateral having value in excess of $500,000 in the aggregate to be stored or located at 15535 West Hardy Road, Suite
102A &B, Houston, Texas. After the Closing Date, no real property or warehouse space shall be leased by any Credit Party unless and until a satisfactory landlord agreement or bailee letter, as appropriate, shall first have been obtained with
respect to any such location, (i) which is the chief executive office, (ii) location of books and records regarding Accounts of any Credit Party, (iii) any pharmacy location of any Credit Party and (iv) any warehouse, processor or converter facility
or other location of any Credit Party where Inventory or other Collateral having value in excess of $250,000 in the aggregate is stored or located, which agreement or letter shall contain a waiver or subordination of all Liens or claims that the
landlord, mortgagee or bailee may assert against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and substance to Agent. Each Credit Party shall timely and fully pay and perform its obligations under all
leases and other agreements with respect to each leased location or public warehouse where any Collateral is or may be located. If any Credit Party proposes to acquire a fee ownership interest in Real Estate after the Closing Date, it shall first
provide to Agent a mortgage or deed of trust granting Agent a first priority Lien (subject to Permitted Encumbrances) on such Real Estate, together with environmental audits, mortgage title insurance commitment, real property survey, local counsel
opinion(s), and, if required by Agent, supplemental casualty insurance and flood insurance, and such other documents, instruments or agreements reasonably requested by Agent, in each case, in form and substance reasonably satisfactory to Agent.

  

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 5.10 Delivery of Additional Subsidiary Guaranties; Other Collateral Documents; etc.  

 
 (a) Promptly (and in any event within 3 Business Days) after the creation
or acquisition of any Subsidiary of Borrowers (other than the Insurance Subsidiary), Borrowers shall cause to be executed and delivered to Agent for the benefit of the Lenders, at Borrowers’ expense, (i) by such new Subsidiary, a guaranty
agreement in substantially the form of the Subsidiary Guaranty executed by the Subsidiary Guarantors on the Closing Date, (ii) by such new Subsidiary, a security agreement in substantially the form of the Subsidiary Security Agreement executed by
the Subsidiary Guarantors on the Closing Date, (iii) by the applicable Credit Party that is the parent company of such new Subsidiary, a Pledge Agreement in substantially the form of the Pledge Agreement executed on the Closing Date or a Pledge
Amendment in substantially the form attached to the Pledge Agreement executed on the Closing Date, together with any certificates evidencing such pledged stock or interests, and (iv) all other Collateral Documents necessary or advisable to ensure
that each such Subsidiary has fully guaranteed all of the Obligations and has pledged to Agent, for the benefit of Lenders, all of its assets constituting Collateral. 
  
 (b) Promptly (and in any event within 3 Business Days) after the acquisition of any real property by any Credit Party on or
after the Closing Date, Borrowers shall cause to be executed and delivered by such Credit Party to Agent for the benefit of the Lenders, at Borrowers’ expense, the following documents and instruments, in each case, in form and substance
satisfactory to Agent: 
  
 (i) a duly executed
Mortgage with respect to such real property; 
  
 (ii) a Title Insurance Commitment/ALTA Policy with respect to such real property; and 
  
 (iii) a survey with respect to such real property. 
  
 (c) Borrowers shall and shall cause each other Credit Party, at such Credit Party’s expense, to from time to time, upon
request by Agent, make, execute and deliver, or cause to be made, executed and delivered, any and all other and further instruments, documents, certificates, agreements, letters, representations and other writings as may be necessary or desirable,
in the reasonable opinion of Agent, in order to effectuate, complete, correct, perfect or continue and preserve the lien, security interest and security title of Agent under any Mortgage. 
  
 (d) Notwithstanding anything in this agreement to the contrary, Borrowers shall not be required to obtain a Mortgage, Title
Insurance Commitment/ALTA Policy or survey pursuant to this Section 5.10(b) with respect to the Excluded Real Property if and for so long as the fair market value of the Excluded Property does not at any time exceed $200,000. 
  
 5.11 Appointment of Agent for Service of Process. If Borrowers or any
other Credit Party at any time moves its chief executive office to a location outside of the State of Georgia, Borrowers shall, and shall cause such Credit Party, as applicable, to promptly (and in any event within three (3) Business Days after
moving such location) appoint CT Corporation (or 

  

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another service corporation acceptable to Agent) as its agent for service of process and deliver written evidence of such appointment to Agent. 

 
 5.12 Further Assurances. Each Credit Party executing this Agreement
agrees that it shall and shall cause each other Credit Party to, at such Credit Party’s expense and upon request of Agent, duly execute and deliver, or cause to be duly executed and delivered, to Agent such further instruments and do and cause
to be done such further acts as may be necessary or proper in the reasonable opinion of Agent to carry out more effectively the provisions and purposes of this Agreement or any other Loan Document. 
  

	6.	NEGATIVE COVENANTS 

  
 Each Credit Party executing this Agreement jointly and severally agrees as to all Credit Parties that from and after the date hereof until the Termination
Date: 
  
 6.1 Mergers, Subsidiaries, Etc. No Credit Party
shall directly or indirectly, by operation of law or otherwise, (a) form or acquire any Subsidiary (other than the formation or acquisition of a Subsidiary in full compliance with Section 5.10 or the formation of the Insurance Subsidiary in
accordance with an Approved Insurance Plan) or (b) merge with, consolidate with, acquire all or substantially all of the assets or Stock of, or otherwise combine with or acquire, any Person (other than the merger of a wholly owned Subsidiary of a
Borrower with and into another wholly owned Subsidiary of a Borrower that is a Guarantor). Notwithstanding the foregoing, Borrowers may acquire all or substantially all of the assets or Stock of any Person (the “Target”) (in each
case, a “Permitted Acquisition”) subject to the satisfaction of each of the following conditions (which conditions shall apply in the case of any such acquisition irrespective of whether or not such acquisition is funded in whole or
in part with the proceeds of any Loan): 
  
 (i)
Agent shall receive (A) at least 15 days’ prior written notice of such proposed Permitted Acquisition if the purchase price paid and/or payable (whether in cash, Stock or other form of consideration, including all transaction costs and all
Indebtedness, liabilities and contingent obligations incurred or assumed in connection therewith or otherwise reflected in a consolidated balance sheet of Borrowers and Target) is equal to or less than $5,000,000, which notice shall include (x) a
reasonably detailed description of such proposed Permitted Acquisition, (y) calculations showing covenant compliance with the financial covenants in Annex G as of the most recently ended Fiscal Month (on a pro forma basis after giving effect to the
proposed Acquisition and any Loan Advance to be requested in connection therewith), and (z) a draft of the acquisition agreement or a letter of intent if a draft of the acquisition agreement is not available, and (B) at least 45 days’ prior
written notice of such proposed Permitted Acquisition if the purchase price paid and/or payable (whether in cash, Stock or other form of consideration, including all transaction costs and all Indebtedness, liabilities and contingent obligations
incurred or assumed in connection therewith or otherwise reflected in a consolidated balance sheet of Borrowers and Target) is greater than $5,000,000, which notice shall include (x) a reasonably detailed description of such proposed Permitted
Acquisition, (y) calculations showing covenant compliance with the financial covenants in Annex G as of the most recently ended Fiscal Month (on a pro forma basis after giving effect to the proposed Acquisition and any Loan Advance to be requested
in connection therewith), and (z) a draft of 

  

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the acquisition agreement or a letter of intent if a draft of the acquisition agreement is not available; 
  
 (ii) such Permitted Acquisition shall only involve assets
located in the United States and comprising a business, or those assets of a business, of the type engaged in by Borrowers as of the Closing Date, and which business would not subject Agent or any Lender to regulatory or third party approvals in
connection with the exercise of its rights and remedies under this Agreement or any other Loan Documents other than approvals applicable to the exercise of such rights and remedies with respect to Borrowers prior to such Permitted Acquisition;

  
 (iii) such Permitted Acquisition shall be
consensual and shall have been approved by the Target’s board of directors; 
  
 (iv) no additional Indebtedness, Guaranteed Indebtedness, contingent obligations or other liabilities shall be incurred, assumed or
otherwise be reflected on a consolidated balance sheet of Borrowers and Target after giving effect to such Permitted Acquisition, except (A) Loans made hereunder, (B) ordinary course trade payables, accrued expenses and unsecured Indebtedness of the
Target to the extent no Default or Event of Default has occurred and is continuing or would result after giving effect to such Permitted Acquisition, and (C) unsecured Indebtedness, “earnouts” and similar contingent payment obligations of
any Credit Party, provided that any such Indebtedness is and at all times remains subordinated to the Obligations as to right and time of payment and as to any other rights and remedies thereunder pursuant to a subordination agreement
substantially in the form of Exhibit 6.1 (such Indebtedness is referred to herein as “Seller Subordinated Debt”); 
  
 (v) the purchase price paid and/or payable (whether in cash, Stock or other form of consideration) in connection with all Permitted
Acquisitions (including all transaction costs and all Indebtedness, liabilities and contingent obligations incurred or assumed in connection therewith or otherwise reflected in a consolidated balance sheet of Borrowers and Target) shall not exceed
$100,000,000 in the aggregate for all Permitted Acquisitions during the term hereof; 
  
 (vi) if the purchase price paid and/or payable (whether in cash, Stock or other form of consideration, including all transaction costs and
all Indebtedness, liabilities and contingent obligations incurred or assumed in connection therewith or otherwise reflected in a consolidated balance sheet of Borrowers and Target) in respect of such proposed Permitted Acquisition is greater than
$5,000,000 individually or, together with all other Permitted Acquisitions since the Closing Date, is greater than $15,000,000 in the aggregate, immediately prior to and after giving effect to such Permitted Acquisition Borrowers shall have Excess
Availability of not less than $1,000,000, as demonstrated in a certificate delivered of the Chief Financial Officer, or, in his absence, the Chief Accounting Officer, of Borrowers in form and substance reasonably satisfactory to Agent; 

 
 (vii) the Borrowers’ pro forma of Target shall not
have incurred an operating loss for the trailing twelve-month period preceding the date of the Permitted Acquisition, as determined based upon the Target’s financial statements for its most recently 

  

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completed fiscal year and its most recent interim financial period completed within 60 days prior to the date of consummation of such Permitted Acquisition;

  
 (viii) the business and assets acquired in
such Permitted Acquisition shall be free and clear of all Liens (other than Permitted Encumbrances); 
  
 (ix) at or prior to the closing of any Permitted Acquisition, Agent will be granted a first priority perfected Lien (subject to Permitted
Encumbrances) in all assets acquired pursuant thereto (including the assets and Stock of the Target), and Guarantors and Borrowers and the Target shall have executed such documents and taken such actions as may be required by Agent in connection
therewith; 
  
 (x) Concurrently with delivery of
the notice referred to in clause (i) above, Borrowers shall have delivered to Agent, in form and substance reasonably satisfactory to Agent: 
  
 (A) a pro forma consolidated balance sheet, income statement and cash flow statement of Holdings and its Subsidiaries (the
“Acquisition Pro Forma”), based on recent financial statements, which shall be complete and shall fairly present in all material respects the assets, liabilities, financial condition and results of operations of Holdings and its
Subsidiaries in accordance with GAAP consistently applied, but taking into account such Permitted Acquisition and the funding of all Loans in connection therewith, and such Acquisition Pro Forma shall reflect that (x) on a pro forma basis, Holdings
and its Subsidiaries would be in compliance with the financial covenants set forth in paragraphs (c) and (d) of Annex G for the four quarter period reflected in the Compliance Certificate most recently delivered to Agent pursuant to Annex
E prior to the consummation of such Permitted Acquisition (after giving effect to such Permitted Acquisition and all Loans funded in connection therewith as if made on the first day of such period), and (y) on a pro forma basis, no Event of
Default has occurred and is continuing or would result after giving effect to such Permitted Acquisition and Borrowers would have been in compliance with the financial covenants set forth in Annex G for the four quarter period reflected in
the Compliance Certificate most recently delivered to Agent pursuant to Annex E prior to the consummation of such Permitted Acquisition (after giving effect to such Permitted Acquisition and all Loans funded in connection therewith as if made
on the first day of such period); 
  
 (B) updated
versions of the most recently delivered Projections covering the 1 year period commencing on the date of such Permitted Acquisition and otherwise prepared in accordance with the Projections (the “Acquisition Projections”) and based
upon historical financial data of a recent date reasonably satisfactory to Agent, taking into account such Permitted Acquisition; and 
  

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 (C) a certificate of the chief financial officer of Holdings and each Borrower to the
effect that: (w) each Borrower (after taking into consideration all rights of contribution and indemnity such Borrower has against Holdings and each other Subsidiary of Holdings) will be Solvent upon the consummation of the Permitted Acquisition;
(x) the Acquisition Pro Forma fairly presents in all material respects the financial condition of Holdings and Borrower (on a consolidated basis) as of the date thereof after giving effect to the Permitted Acquisition; (y) the Acquisition
Projections are reasonable estimates at such time of the future financial performance of Holdings and Borrowers subsequent to the date thereof based upon the historical performance of Holdings, Borrowers and the Target and show that Guarantors and
Borrowers shall continue to be in compliance with the financial covenants set forth in Annex G for the 3-year period thereafter; and (z) Holdings and Borrower have completed their due diligence investigation with respect to the Target and
such Permitted Acquisition, which investigation was conducted in a manner similar to that which would have been conducted by a prudent purchaser of a comparable business and the results of which investigation were delivered to Agent and Lenders;

  
 (xi) on or prior to the date of such
Permitted Acquisition, Agent shall have received, in form and substance reasonably satisfactory to Agent, copies of the acquisition agreement and related agreements and instruments, and all opinions, certificates, lien search results and other
documents reasonably requested by Agent, including those specified in the last sentence of Section 5.9; and 
  
 (xii) at the time of such Permitted Acquisition and after giving effect thereto, no Default or Event of Default has occurred and is
continuing. 
  
 Notwithstanding the foregoing, the Accounts of the
Target shall not be included in Eligible Accounts unless and until Agent has conducted a collateral audit of such Accounts (at Borrowers’ expense), with results satisfactory to Agent in its reasonable credit judgment. The collateral
audit rights of Agent provided for in this paragraph are in addition to, and not in limitation of, any other rights that Agent has in this Agreement to conduct audits at Borrowers’ expense. 
  
 6.2 Investments; Loans and Advances. Except as otherwise expressly
permitted by this Section 6, no Credit Party shall make or permit to exist any investment in, or make, accrue or permit to exist loans or advances of money to, any Person, through the direct or indirect lending of money, holding of securities
or otherwise, except that: (a) Borrowers and their respective Subsidiaries may hold investments comprised of notes payable, or stock or other securities issued by Account Debtors to any Borrower pursuant to negotiated agreements with respect to
settlement of such Account Debtor’s Accounts in the ordinary course of business, so long as the aggregate amount of such Accounts so settled by Borrower and such Subsidiaries does not exceed $100,000; (b) each Credit Party may maintain its
existing investments in its Subsidiaries as of the Closing Date; (c) so long as no Default or Event of Default has occurred and is continuing and there is no outstanding Revolving Loan balance, Borrowers may make 

  

 40 








 
investments, subject to Control Letters in favor of Agent for the benefit of Lenders or otherwise subject to a perfected security interest in favor of Agent
for the benefit of Lenders, in (i) marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency thereof maturing within one year from the date of acquisition thereof, (ii) commercial paper maturing
no more than one year from the date of creation thereof and currently having the highest rating obtainable from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (iii) certificates of deposit maturing no more
than one year from the date of creation thereof issued by commercial banks incorporated under the laws of the United States of America, each having combined capital, surplus and undivided profits of not less than $300,000,000 and having a senior
unsecured rating of “A” or better by a nationally recognized rating agency (an “A Rated Bank”), (iv) time deposits maturing no more than 30 days from the date of creation thereof with A Rated Banks and (v) mutual funds
that invest solely in one or more of the investments described in clauses (i) through (iv) of the immediately above; (d) so long as (i) no Default or Event of Default or Activation Event (as such term is defined in Annex C) has
occurred and is continuing and (ii) Borrowers are not in default in the payment of any fees or other amounts due and owing to Wachovia Bank, N.A. or Wachovia Capital Markets, LLC, Borrowers may make and hold investments of the type described in
clauses (i) through (iv) of the immediately preceding clause (c) in PSA Georgia’s existing overnight investment account maintained with Wachovia Capital Markets, LLC, provided that the aggregate value of all financial assets and
funds on deposit or held in such investment account shall not at any time exceed $3,500,000; and (e) other investments not exceeding $100,000 in the aggregate at any time outstanding. 
  
 6.3 Indebtedness. 
  
 (a) No Credit Party shall create, incur, assume or permit to exist any Indebtedness, except (without duplication) (i) Indebtedness secured by purchase
money security interests and Capital Leases permitted in Section 6.7(c), (ii) the Loans and the other Obligations, (iii) existing Indebtedness described in Disclosure Schedule (6.3) and refinancings thereof or amendments or
modifications thereof that do not have the effect of increasing the principal amount thereof or changing the amortization thereof (other than to extend the same) and that are otherwise on terms and conditions no less favorable to any Credit Party,
Agent or any Lender, as determined by Agent, than the terms of the Indebtedness being refinanced, amended or modified, provided that no refinancing, amendment or modification of any Subordinated Debt shall be permitted unless the terms
thereof are no less favorable than the Subordinated Debt being refinanced, amended or modified or Borrowers have obtained the prior written consent of the Agent and Requisite Lenders not to be unreasonably withheld or delayed, (iv) Indebtedness
specifically permitted under Section 6.1, (v) Indebtedness specifically permitted under Section 6.17, (vi) Indebtedness consisting of intercompany loans and advances made by any Borrower to any other Credit Party that is a Guarantor or
by any such Guarantor to any Borrower; provided, that: (A) each Borrower shall have executed and delivered to each such Guarantor, and each such Guarantor shall have executed and delivered to each Borrower, on the Closing Date, a demand note
(collectively, the “Intercompany Notes”) to evidence any such intercompany Indebtedness owing at any time by such Borrower to such Guarantor or by such Guarantor to Borrower, which Intercompany Notes shall be in form and substance
reasonably satisfactory to Agent and shall be pledged and delivered to Agent pursuant to the applicable Pledge Agreement or Security Agreement as additional collateral security for the Obligations; (B) each Borrower 

  

 41 








 
shall record all intercompany transactions on its books and records in a manner reasonably satisfactory to Agent; (C) the obligations of each Borrower under
any such Intercompany Notes shall be subordinated to the Obligations of such Borrower hereunder in a manner reasonably satisfactory to Agent; (D) at the time any such intercompany loan or advance is made by any Borrower and after giving effect
thereto, each Borrower shall be Solvent; (E) no Default or Event of Default would occur and be continuing after giving effect to any such proposed intercompany loan; (F) in the case of any such intercompany loans made by such Borrower, the Borrower
advancing such funds shall have unrestricted cash on hand plus Revolving Loan Borrowing Availability of not less than $1,000,000 after giving effect to such intercompany loan; (G) the aggregate amount of such intercompany loans owing by Borrowers to
all such Guarantors shall not exceed $100,000 at any one time outstanding; (H) the aggregate balance of all such intercompany loans owing to such Borrowers shall not exceed $100,000 at any time; and (I) the recipient of any such intercompany loans
shall be creditworthy as determined by Agent, and (viii) other unsecured Indebtedness in an aggregate principal amount not to exceed $500,000 at any one time outstanding. 
  
 (b) No Credit Party shall, directly or indirectly, voluntarily purchase, redeem, defease or prepay any principal of,
premium, if any, interest or other amount payable in respect of any Indebtedness, other than (i) the Obligations; (ii) Indebtedness secured by a Permitted Encumbrance if the asset securing such Indebtedness has been sold or otherwise disposed of in
accordance with Sections 6.8(b) or (c); (iii) Indebtedness permitted by Section 6.3(a)(iv) upon any refinancing thereof in accordance with Section 6.3(a)(iv); (iv) other Indebtedness (excluding Subordinated Debt) not in excess
of $100,000; (v) the repayment of the Senior Subordinated Notes in connection with the Senior Subordinated Note Redemption Transaction subject to the terms and conditions set forth in Section 2.2(d) (to the extent the proceeds of a Revolving
Credit Advance is requested in connection with such transaction) and Section 6.14; and (vi) as otherwise permitted in Section 6.14. 
  
 6.4 Employee Loans and Affiliate Transactions. 
  
 (a) Except as otherwise expressly permitted in this Section 6 with respect to Affiliates, no Credit Party shall enter into or be a party to any
transaction with any other Credit Party or any Affiliate thereof except in the ordinary course of and pursuant to the reasonable requirements of such Credit Party’s business and upon fair and reasonable terms that are no less favorable to such
Credit Party than would be obtained in a comparable arm’s length transaction with a Person not an Affiliate of such Credit Party. In addition, if any such transaction or series of related transactions involves payments in excess of $100,000 in
the aggregate, the terms of these transactions must be disclosed in advance to Agent and Lenders. All such transactions existing as of the date hereof are described in Disclosure Schedule (6.4(a)). 
  
 (b) No Credit Party shall enter into any lending or borrowing transaction
with any employees of any Credit Party, except loans to its respective employees on an arm’s-length basis in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar
purposes and stock option financing up to a maximum of $50,000 to any employee and up to a maximum of $250,000 in the aggregate at any one time outstanding. 
  

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 6.5 Capital Structure and Business. No Credit Party shall (a) make any changes in any of its
business objectives, purposes or operations that could reasonably be expected to have or result in a Material Adverse Effect, (b) make any change in its capital structure as described in Disclosure Schedule (3.8), including the issuance or
sale of any shares of Stock, warrants or other securities convertible into Stock or any revision of the terms of its outstanding Stock; provided, that (A) Holdings may issue or sell its Stock for cash so long as (i) the proceeds thereof are
applied in prepayment of the Obligations as required by Section 1.3(b)(iii), and (ii) no Change of Control occurs after giving effect thereto and (B) the Credit Parties may form Subsidiaries so long as such Credit Party shall fully comply
with Section 5.10 hereof, or (c) amend its charter or bylaws in a manner that would adversely affect Agent or Lenders or such Credit Party’s duty or ability to repay the Obligations. No Credit Party shall engage in any business other
than the businesses currently engaged in by it or businesses reasonably related thereto. 
  
 6.6 Guaranteed Indebtedness. No Credit Party shall create, incur, assume or permit to exist any Guaranteed Indebtedness except (a) by endorsement of instruments or items of payment for deposit to the general
account of any Credit Party, and (b) for Guaranteed Indebtedness incurred for the benefit of any other Credit Party if the primary obligation is expressly permitted by this Agreement other then Indebtedness, if any, of a Target existing at the time
such Target is acquired. 
  
 6.7 Liens. No Credit Party
shall create, incur, assume or permit to exist any Lien on or with respect to its Accounts or any of its other properties or assets (whether now owned or hereafter acquired) except for (a) Permitted Encumbrances; (b) Liens in existence on the date
hereof and summarized on Disclosure Schedule (6.7) securing purchase money Indebtedness and Capital Leases described on Disclosure Schedule (6.3) and permitted refinancings, extensions and renewals thereof, including extensions or
renewals of any such Liens; provided that the principal amount so secured is not increased and the Lien does not attach to any additional assets; (c) Liens created after the date hereof by conditional sale or other title retention agreements
(including Capital Leases) or in connection with purchase money Indebtedness with respect to Equipment and Fixtures acquired by any Credit Party in the ordinary course of business, involving the incurrence of an aggregate amount of purchase money
Indebtedness and Capital Lease Obligations of not more than $1,000,000 (excluding motor vehicle leases) outstanding at any one time for all such Liens (provided that such Liens attach only to the assets subject to such purchase money debt and
such Indebtedness is incurred within 20 days following such purchase and does not exceed 100% of the purchase price of the subject assets); and (d) other Liens securing Indebtedness not exceeding $100,000 in the aggregate at any time outstanding, so
long as such Liens do not attach to any Accounts. In addition, no Credit Party shall become a party to any agreement, note, indenture or instrument, or take any other action, that would prohibit the creation of a Lien on any of its properties or
other assets in favor of Agent, on behalf of itself and Lenders, as additional collateral for the Obligations, except operating leases, Capital Leases or Licenses which prohibit Liens upon the assets that are subject thereto. 
  
 6.8 Sale of Stock and Assets. No Credit Party shall sell, transfer,
convey, assign or otherwise dispose of any of its properties or other assets, including the Stock of any of its Subsidiaries (whether in a public or a private offering or otherwise) or any of its Accounts, 

  

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other than (a) the sale of Inventory in the ordinary course of business, and (b) the sale, transfer, conveyance or other disposition by a Credit Party of
Equipment, Fixtures that are obsolete or no longer used or useful in such Credit Party’s business and having a sales price not exceeding $50,000 in any single transaction or $250,000 in the aggregate in any Fiscal Year and (c) other Equipment
and Fixtures having a value not exceeding $50,000 in any single transaction or $250,000 in the aggregate in any Fiscal Year. With respect to any disposition of assets or other properties permitted pursuant to clauses (b) and (c) above,
subject to Section 1.3(b), Agent agrees on reasonable prior written notice to release its Lien on such assets or other properties in order to permit the applicable Credit Party to effect such disposition and shall execute and deliver to
Borrowers, at Borrowers’ expense, appropriate UCC-3 termination statements and other releases as reasonably requested by Borrowers. 
  
 6.9 ERISA. No Credit Party shall, or shall cause or permit any ERISA Affiliate to, cause or permit to occur an event that could result in the
imposition of a Lien under Section 412 of the IRC or Section 302 or 4068 of ERISA or cause or permit to occur an ERISA Event to the extent such ERISA Event could reasonably be expected to have a Material Adverse Effect. 
  
 6.10 Financial Covenants. Borrowers shall not breach or fail to comply
with any of the Financial Covenants. 
  
 6.11 Hazardous
Materials. No Credit Party shall cause or permit a Release of any Hazardous Material on, at, in, under, above, to, from or about any of the Real Estate where such Release would (a) violate in any respect, or form the basis for any Environmental
Liabilities under, any Environmental Laws or Environmental Permits or (b) otherwise adversely impact the value or marketability of any of the Real Estate or any of the Collateral, other than such violations or Environmental Liabilities that
individually or in the aggregate could reasonably be expected to result in Environmental Liabilities in excess of $300,000. 
  
 6.12 Sale-Leasebacks. No Credit Party shall engage in any sale-leaseback, synthetic lease or similar transaction involving any of its assets.

  
 6.13 Cancellation of Indebtedness. No Credit Party
shall cancel any claim or debt owing to it, except for reasonable consideration negotiated on an arm’s-length basis and in the ordinary course of its business consistent with past practices. 
  
 6.14 Restricted Payments. No Credit Party shall make any Restricted
Payment, except: (a) intercompany loans and advances between Borrowers and Guarantors to the extent permitted by Section 6.3;(b) dividends and distributions by Subsidiaries of any Borrower paid to such Borrower; (c) employee loans permitted
under Section 6.4(b); (d) payments of principal and interest of Intercompany Notes issued in accordance with Section 6.3; (e) the repayment of the Senior Subordinated Notes in connection with the Senior Subordinated Note Redemption
Transaction, provided that each of the following conditions is satisfied in full, in each case after giving effect to the consummation of the Senior Subordinated Note Redemption Transaction and the making of any Advance in connection
therewith, on or prior to the making of such Restricted Payment (i) Borrowers shall have delivered to Agent a certificate of the Chief Financial Officer, or, in his absence, the Chief Accounting Officer, of Borrowers, substantially in the form
attached 

  

 44 








 
hereto as Exhibit 2.2(e), certifying and demonstrating that prior to and after giving effect to the consummation of the Senior Subordinated Note
Redemption Transaction and the making of any Advance in connection therewith (A) each Credit Party will be Solvent and (B) Borrowers are in compliance with the financial covenants in Annex G as of the most recently ended Fiscal Month (on a
pro forma basis after giving effect to the proposed Senior Subordinated Note Redemption Transaction and any requested Advance in connection therewith), (ii) no Default or Event of Default exists or would result therefrom, (iii) Borrowers shall have
unrestricted cash on hand plus Revolving Loan Borrowing Availability of at least $1,000,000, and (iv) the timing of such payments shall be set at dates that permit the delivery of Financial Statements necessary to determine current compliance with
the Financial Covenants prior to each such payment; (f) regularly scheduled payments of interest with respect to Subordinated Debt (other than the Senior Subordinated Notes), provided that each of the following conditions are satisfied in
full (i) no Default or Event of Default has occurred and is continuing or would result after giving effect to any Restricted Payment, (ii) Borrowers shall have unrestricted cash on hand plus Revolving Loan Borrowing Availability of at least
$1,000,000 after giving effect to any Restricted Payment; and (iii) the timing of such payments above shall be set at dates that permit the delivery of Financial Statements necessary to determine current compliance with the Financial Covenants prior
to each such payment; (g) regularly scheduled payments of principal and interest under the Senior Subordinated Notes, provided that (i) no payment Default has occurred and is continuing or would result therefrom, and (ii) no Event of Default
has occurred and is continuing or would result therefrom; (h) regularly scheduled payments of principal and interest under that certain $500,000 promissory note issued in connection with the acquisition by Holdings of the assets of the skilled
pediatric nursing home health division of the MedLink Group, Inc.; and (i) the repurchase by Holdings of its Stock, provided that (i) no Default or Event of Default has occurred and is continuing or would result after giving effect to such
repurchase, (ii) no Loan proceeds shall be used to make such repurchases and, upon request of Agent, Borrowers shall furnish Agent with evidence reasonably satisfactory to Agent that such repurchases are made solely from Borrowers’ cash on
hand, (iii) Borrowers shall have delivered to Agent a certificate of the Chief Financial Officer, or, in his absence, the Chief Accounting Officer, of Borrowers in form and substance satisfactory to Agent, demonstrating that Borrowers would be in
compliance with the financial covenants in Annex G as of the most recently ended Fiscal Month on a pro forma basis after giving effect to such repurchase, and (iv) the aggregate amount of all such Stock repurchases in any Fiscal Year shall
not exceed $500,000. 
  
 6.15 Change of Corporate Name or
Location; Change of Fiscal Year. No Credit Party shall (a) change its corporate name or trade name without at least 30 days prior written notice to Agent, or (b) change its chief executive office, principal place of business, corporate offices
or warehouses or locations at which Collateral is held or stored, or the location of its records concerning the Collateral, in each case without at least 15 days prior written notice to Agent, and provided that any such new location shall be
in the continental United States and Credit Parties shall have fully complied with Section 5.9. Without limiting the foregoing, no Credit Party shall change its name, identity or corporate structure in any manner that might make any financing
or continuation statement filed in connection herewith seriously misleading within the meaning of Section 9-507 of the Code or any other then applicable provision of the Code except upon at least 30 days prior written notice to Agent and Lenders. No
Credit Party shall change its Fiscal Year. 
  

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 6.16 No Impairment of Intercompany Transfers. No Credit Party shall directly or indirectly enter
into or become bound by any agreement, instrument, indenture or other obligation (other than this Agreement and the other Loan Documents) that could directly or indirectly restrict, prohibit or require the consent of any Person with respect to the
payment of dividends or distributions or the making or repayment of intercompany loans by a Subsidiary of any Borrower to any Borrower or between borrowers. 
  
 6.17 No Speculative Transactions. No Credit Party shall engage in any transaction involving commodity options, futures contracts or similar
transactions. 
  
 6.18 [RESERVED] 
  
 6.19 Changes Relating to Subordinated Debt; Material Contracts. No
Credit Party shall change or amend the terms of any Subordinated Debt (or any indenture or agreement in connection therewith) if the effect of such amendment is to: (a) increase the interest rate on such Subordinated Debt; (b) change the dates upon
which payments of principal or interest are due on such Subordinated Debt other than to extend such dates; (c) change any default or event of default other than to delete or make less restrictive any default provision therein, or add any covenant
with respect to such Subordinated Debt; (d) change the redemption or prepayment provisions of such Subordinated Debt other than to extend the dates therefor or to reduce the premiums payable in connection therewith; (e) grant any security or
collateral to secure payment of such Subordinated Debt; or (f) change or amend any other term if such change or amendment would materially increase the obligations of the Credit Party thereunder or confer additional material rights on the holder of
such Subordinated Debt in a manner adverse to any Credit Party, Agent or any Lender. 
  
 6.20 Holding Company Status of Holdings and PSA Capital. From and after the Closing Date, neither Holdings nor PSA Capital shall (a) incur any Indebtedness (other than the Obligations), (b) engage in any
business activity other than as described on Disclosure Schedule (6.21) attached hereto, or (c) incur any liabilities other than the Obligations and liabilities ancillary to the activities described on Disclosure Schedule (6.21)
attached hereto. 
  

	7.	TERM 

  
 7.1 Termination. The financing arrangements contemplated hereby shall be in effect until the Commitment Termination Date, and the Loans and all other Obligations shall be automatically due and payable in full
on such date. 
  
 7.2 Survival of Obligations Upon Termination
of Financing Arrangements. Except as otherwise expressly provided for in the Loan Documents, no termination or cancellation (regardless of cause or procedure) of any financing arrangement under this Agreement shall in any way affect or impair
the obligations, duties and liabilities of the Credit Parties or the rights of Agent and Lenders relating to any unpaid portion of the Loans or any other Obligations, due or not due, liquidated, contingent or unliquidated or any transaction or event
occurring prior to such termination, or any transaction or event, the performance of which is required after the Commitment Termination Date. Except as otherwise expressly provided herein or in any other Loan Document, all undertakings, agreements,
covenants, warranties and 

  

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representations of or binding upon the Credit Parties, and all rights of Agent and each Lender, all as contained in the Loan Documents, shall not terminate
or expire, but rather shall survive any such termination or cancellation and shall continue in full force and effect until the Termination Date; provided, that the provisions of Section 11, the payment obligations under Sections
1.15 and 1.16, and the indemnities contained in the Loan Documents shall survive the Termination Date. 
  

	8.	EVENTS OF DEFAULT; RIGHTS AND REMEDIES 

  
 8.1 Events of Default. The occurrence of any one or more of the following events (regardless of the reason therefor) shall constitute an
“Event of Default” hereunder: 
  
 (a) Any
Borrower (i) fails to make any payment of principal of the Loans or any of the other Obligations when due and payable or (ii) fails to make any payment of interest and Fees owing in respect of the Loans or any of the other Obligations when due and
payable and such failure remains unremedied for more than 3 Business Days or (iii) fails to pay or reimburse Agent or Lenders for any expense reimbursable hereunder or under any other Loan Document within 10 days following Agent’s demand for
such reimbursement or payment of expenses. 
  
 (b) Any Credit
Party fails or neglects to perform, keep or observe any of the provisions of Sections 1.4, 1.8, 5.4(a) or 6, or any of the provisions set forth in Annexes C or G, respectively. 
  
 (c) Any Credit Party fails or neglects to perform, keep or observe any of the
provisions of Section 4 or any provisions set forth in Annexes E or F, respectively, and the same shall remain unremedied for 3 days or more. 
  
 (d) Any Credit Party fails or neglects to perform, keep or observe any other provision of this Agreement or of any of the
other Loan Documents (other than any provision embodied in or covered by any other clause of this Section 8.1) and the same shall remain unremedied for 30 days or more. 
  
 (e) A default or breach occurs under any other agreement, document or instrument to which any Credit Party is a party that
is not cured within any applicable grace period therefor, and such default or breach (i) involves the failure to make any payment when due in respect of any Indebtedness or Guaranteed Indebtedness (other than the Obligations) of any Credit Party in
excess of $500,000 in the aggregate (including (x) undrawn committed or available amounts and (y) amounts owing to all creditors under any combined or syndicated credit arrangements), or (ii) causes, or permits any holder of such Indebtedness or
Guaranteed Indebtedness or a trustee to cause, Indebtedness or Guaranteed Indebtedness or a portion thereof in excess of $500,000 in the aggregate to become due prior to its stated maturity or prior to its regularly scheduled dates of payment, or
cash collateral to be demanded in respect thereof, in each case, regardless of whether such default is waived, or such right is exercised, by such holder or trustee. 
  
 (f) Any information contained in any Borrowing Base Certificate is untrue or incorrect in any respect (other than
inadvertent, immaterial errors not exceeding $15,000 in the 

  

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aggregate in any Borrowing Base Certificate), or any representation or warranty herein or in any Loan Document or in any written statement, report, financial
statement or certificate (other than a Borrowing Base Certificate) made or delivered to Agent or any Lender by any Credit Party pursuant to the Loan Documents or in connection with the transactions contemplated by this Agreement or any other Loan
Document is untrue or incorrect in any material respect as of the date when made or deemed made (i) as stated if such representation and warranty contains an express materiality qualification or (ii) in all material respects if such representation
and warranty does not contain such a qualification. 
  
 (g) Assets
of any Credit Party with a fair market value of $500,000 or more are attached, seized, levied upon or subjected to a writ or distress warrant, or come within the possession of any receiver, trustee, custodian or assignee for the benefit of creditors
of any Credit Party and such condition continues for 30 days or more. 
  
 (h) A case or proceeding is commenced against any Credit Party seeking a decree or order in respect of such Credit Party (i) under the Bankruptcy Code or any other applicable federal, state or foreign bankruptcy or other similar law, (ii)
appointing a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) for such Credit Party or for any substantial part of any such Credit Party’s assets, or (iii) ordering the winding-up or liquidation of the
affairs of such Credit Party, and such case or proceeding shall remain undismissed or unstayed for 60 days or more or a decree or order granting the relief sought in such case or proceeding by a court of competent jurisdiction. 
  
 (i) Any Credit Party (i) files a petition seeking relief under the Bankruptcy
Code or any other applicable federal, state or foreign bankruptcy or other similar law, (ii) consents to or fails to contest in a timely and appropriate manner to the institution of proceedings thereunder or to the filing of any such petition or to
the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) for such Credit Party or for any substantial part of any such Credit Party’s assets, (iii) makes an assignment
for the benefit of creditors, or (iv) takes any action in furtherance of any of the foregoing, or (v) admits in writing its inability to, or is generally unable to, pay its debts as such debts become due. 
  
 (j) A final judgment or judgments for the payment of money in excess of
$250,000 in the aggregate at any time are outstanding against one or more of the Credit Parties and the same are not, within 30 days after the entry thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not
discharged prior to the expiration of any such stay. 
  
 (k) (i)
Any material provision of any Loan Document for any reason ceases to be valid, binding and enforceable in accordance with its terms (or any Credit Party shall challenge the enforceability of any Loan Document or shall assert in writing, or engage in
any action or inaction based on any such assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is not valid, binding and enforceable in accordance with its terms), or (ii) any Lien created under any Loan Document
ceases to be a valid and perfected first priority Lien (except as otherwise permitted herein or therein) in any of the Collateral purported to be 

  

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covered thereby for any reason other than the negligent or willful failure of the Agent to take any action within its control. 
  
 (l) (i) any Change of Control occurs, or (ii) any “Change of
Control” under and as defined in the Senior Subordinated Note Indenture occurs and any holder of Senior Subordinated Notes has given Holdings a notice of its election to have all or any portion of the Senior Subordinated Notes held by such
noteholder purchased by Holdings as a result of such Change of Control. 
  
 (m) Any material damage to, or loss, theft or destruction of, any Collateral, whether or not insured, or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than
fifteen (15) consecutive days, the cessation or substantial curtailment of revenue producing activities at any facility of any Credit Party, if any such event or circumstance, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. 
  
 (n) Any default or breach by Holdings
or any of its Subsidiaries party thereto occurs and is continuing under the Senior Subordinated Note Indenture or any Senior Subordinated Notes, or the Senior Subordinated Note Indenture shall be terminated for any reason (other than as a result of
the repayment or redemption of the Senior Subordinated Notes in full in accordance with the terms of such indenture). 
  
 (o) The loss, suspension or revocation of, or failure to renew, any license or permit now held or hereafter acquired by any Credit Party, in each case, if
such loss, suspension, revocation or failure to renew, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
  
 (p) Any Credit Party shall be suspended or excluded from (i) any Medicaid Provider Agreement, Medicaid Certification, Medicare Provider Agreement,
Medicare Certification or (ii) any medical reimbursement program, where such exclusion or suspension arises from fraud or other claims or allegations that could reasonably be expected to have a Material Adverse Effect. 
  
 8.2 Remedies. 
  
 (a) If any Default or Event of Default has occurred and is continuing, Agent
may (and at the written request of the Requisite Lenders shall), without notice, suspend the Revolving Loan facility with respect to additional Advances and/or the incurrence of additional Letter of Credit Obligations, whereupon any additional
Advances and additional Letter of Credit Obligations shall be made or incurred in Agent’s sole discretion (or in the sole discretion of the Requisite Lenders, if such suspension occurred at their direction) so long as such Default or Event of
Default is continuing. If any Default or Event of Default has occurred and is continuing, Agent may (and at the written request of Requisite Lenders shall), without notice except as otherwise expressly provided herein, increase the rate of interest
applicable to the Loans and the Letter of Credit Fees to the Default Rate. 
  
 (b) If any Event of Default has occurred and is continuing, Agent may (and at the written request of the Requisite Lenders shall), without notice: (i) terminate the Revolving 

  

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Loan facility with respect to further Advances or the incurrence of further Letter of Credit Obligations; (ii) declare all or any portion of the Obligations,
including all or any portion of any Loan to be forthwith due and payable, and require that the Letter of Credit Obligations be cash collateralized as provided in Annex B, all without presentment, demand, protest or further notice of any kind,
all of which are expressly waived by Borrowers and each other Credit Party; or (iii) exercise any rights and remedies provided to Agent under the Loan Documents or at law or equity, including all remedies provided under the Code; provided,
that upon the occurrence of an Event of Default specified in Sections 8.1(h) or (i), the Revolving Loan facility shall be immediately terminated and all of the Obligations, including the Revolving Loan, shall become immediately due and
payable without declaration, notice or demand by any Person. 
  
 8.3 Waivers by Credit Parties. Except as otherwise provided for in this Agreement or by applicable law, each Credit Party waives (including for purposes of Section 12): (a) presentment, demand and protest and notice of
presentment, dishonor, notice of intent to accelerate, notice of acceleration, protest, default, nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all commercial paper, accounts, contract rights, documents,
instruments, chattel paper and guaranties at any time held by Agent on which any Credit Party may in any way be liable, and hereby ratifies and confirms whatever Agent may do in this regard, (b) all rights to notice and a hearing prior to
Agent’s taking possession or control of, or to Agent’s replevy, attachment or levy upon, the Collateral or any bond or security that might be required by any court prior to allowing Agent to exercise any of its remedies, and (c) the
benefit of all valuation, appraisal, marshaling and exemption laws. 
  

	9.	ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT 

  
 9.1 Assignment and Participations. 
  
 (a) Subject to the terms of this Section 9.1, any Lender may make an assignment to a Qualified Assignee of, or sale of participations in, at any
time or times, the Loan Documents, Loans, Letter of Credit Obligations and any Commitment or any portion thereof or interest therein, including any Lender’s rights, title, interests, remedies, powers or duties thereunder; provided that
Lender may not assign any portion of its Revolving Loan Commitment without a pro rata assignment of its Acquisition Loan Commitment and Lender may not assign any portion of its Acquisition Loan Commitment without a pro rata assignment of its
Revolving Loan Commitment. Any assignment by a Lender shall: (i) require the consent of Agent (which consent shall not be unreasonably withheld or delayed with respect to a Qualified Assignee) and the execution of an assignment agreement (an
“Assignment Agreement” substantially in the form attached hereto as Exhibit 9.1(a) and otherwise in form and substance reasonably satisfactory to, and acknowledged by, Agent; (ii) be conditioned on such assignee Lender
representing to the assigning Lender and Agent that it is purchasing the applicable Loans to be assigned to it for its own account, for investment purposes and not with a view to the distribution thereof; (iii) after giving effect to any such
partial assignment, the assignee Lender shall have Commitments in an amount at least equal to $2,500,000 and the assigning Lender shall have retained Commitments in an amount at least equal to $2,500,000; (iv) include a payment to Agent of an
assignment fee of $3,500 and (v) so long as no Event of Default has occurred and is continuing, require the consent of Borrowers, which shall not be unreasonably withheld or delayed; provided that no such consent shall be required for an assignment
to a Qualified Assignee. In the case of an 

  

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assignment by a Lender under this Section 9.1, the assignee shall have, to the extent of such assignment, the same rights, benefits and obligations as
all other Lenders hereunder. The assigning Lender shall be relieved of its obligations hereunder with respect to its Commitments or assigned portion thereof from and after the date of such assignment. Each Borrower hereby acknowledges and agrees
that any assignment shall give rise to a direct obligation of Borrowers to the assignee and that the assignee shall be considered to be a “Lender”. In all instances, each Lender’s liability to make Loans hereunder shall be several and
not joint and shall be limited to such Lender’s Pro Rata Share of the applicable Commitment. In the event Agent or any Lender assigns or otherwise transfers all or any part of the Obligations, Agent or any such Lender shall so notify Borrowers
and Borrowers shall, upon the request of Agent or such Lender, execute new Notes in exchange for the Notes, if any, being assigned. Notwithstanding the foregoing provisions of this Section 9.1(a), any Lender may at any time pledge the
Obligations held by it and such Lender’s rights under this Agreement and the other Loan Documents to a Federal Reserve Bank, and any Lender that is an investment fund may assign the Obligations held by it and such Lender’s rights under
this Agreement and the other Loan Documents to another investment fund managed by the same investment advisor; provided, that no such pledge to a Federal Reserve Bank shall release such Lender from such Lender’s obligations hereunder or
under any other Loan Document. 
  
 (b) Any participation by a
Lender of all or any part of its Commitments shall be made with the understanding that all amounts payable by Borrowers hereunder shall be determined as if that Lender had not sold such participation, and that the holder of any such participation
shall not be entitled to require such Lender to take or omit to take any action hereunder except actions directly affecting (i) any reduction in the principal amount of, or interest rate or Fees payable with respect to, any Loan in which such holder
participates, (ii) any extension of the scheduled amortization of the principal amount of any Loan in which such holder participates or the final maturity date thereof, and (iii) any release of all or substantially all of the Collateral (other than
in accordance with the terms of this Agreement, the Collateral Documents or the other Loan Documents). Solely for purposes of Sections 1.13, 1.15, 1.16 and 9.8, each Borrower acknowledges and agrees that a participation
shall give rise to a direct obligation of such Borrower to the participant and the participant shall be considered to be a “Lender”. Except as set forth in the preceding sentence no Borrower or Credit Party shall have any obligation or
duty to any participant. Neither Agent nor any Lender (other than the Lender selling a participation) shall have any duty to any participant and may continue to deal solely with the Lender selling a participation as if no such sale had occurred.

  
 (c) Except as expressly provided in this Section 9.1,
no Lender shall, as between Borrowers and that Lender, or Agent and that Lender, be relieved of any of its obligations hereunder as a result of any sale, assignment, transfer or negotiation of, or granting of participation in, all or any part of the
Loans, the Notes or other Obligations owed to such Lender. 
  
 (d)
Each Credit Party executing this Agreement shall assist any Lender permitted to sell assignments or participations under this Section 9.1 as reasonably required to enable the assigning or selling Lender to effect any such assignment or
participation, including the execution and delivery of any and all agreements, notes and other documents and instruments as shall be requested and the preparation of informational materials for, and the participation of management in meetings with,
potential assignees or participants. Each Credit Party executing 

  

 51 








 
this Agreement shall certify the correctness, completeness and accuracy of all descriptions of the Credit Parties and their respective affairs contained in
any selling materials provided by them and all other information provided by them and included in such materials, except that any Projections delivered by Borrowers shall only be certified by Borrowers as having been prepared by Borrowers in
compliance with the representations contained in Section 3.4(c). 
  
 (e) A Lender may furnish any information concerning Credit Parties in the possession of such Lender from time to time to assignees and participants (including prospective assignees and participants); provided that such Lender shall obtain
from assignees or participants confidentiality covenants substantially equivalent to those contained in Section 11.8. 
  
 (f) So long as no Event of Default has occurred and is continuing, no Lender shall assign or sell participations in any portion of its Loans or
Commitments to a potential Lender or participant, if, as of the date of the proposed assignment or sale, the assignee Lender or participant would be subject to capital adequacy or similar requirements under Section 1.16(a), increased costs
under Section 1.16(b), an inability to fund LIBOR Loans under Section 1.16(c), or withholding taxes in accordance with Section 1.15(a).  
  
 (g) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”), may grant
to a special purpose funding vehicle (an “SPC”), identified as such in writing by the Granting Lender to Agent and Borrowers, the option to provide to Borrowers all or any part of any Loans that such Granting Lender would otherwise
be obligated to make to Borrowers pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to make any Loan; and (ii) if an SPC elects not to exercise such option or otherwise fails to provide all
or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if such Loan
were made by such Granting Lender. No SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender). Any SPC may (i) with notice to, but without the prior
written consent of, Borrowers and Agent and without paying any processing fee therefor assign all or a portion of its interests in any Loans to the Granting Lender or to any financial institutions (consented to by Borrowers and Agent) providing
liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Loans and (ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer
or provider of any surety, guarantee or credit or liquidity enhancement to such SPC. This Section 9.1(g) may not be amended without the prior written consent of each Granting Lender, all or any of whose Loans are being funded by an SPC at the
time of such amendment. For the avoidance of doubt, the Granting Lender shall for all purposes, including without limitation, the approval of any amendment or waiver of any provision of any Loan Document or the obligation to pay any amount otherwise
payable by the Granting Lender under the Loan Documents, continue to be the Lender of record hereunder. 
  
 9.2 Appointment of Agent. GE Capital is hereby appointed to act on behalf of all Lenders as Agent under this Agreement and the other Loan
Documents. The provisions of this Section 9.2 are solely for the benefit of Agent and Lenders and no Credit Party nor any other Person shall have any rights as a third party beneficiary of any of the provisions hereof. In 

  

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performing its functions and duties under this Agreement and the other Loan Documents, Agent shall act solely as an agent of Lenders and does not assume and
shall not be deemed to have assumed any obligation toward or relationship of agency or trust with or for any Credit Party or any other Person. Agent shall have no duties or responsibilities except for those expressly set forth in this Agreement and
the other Loan Documents. The duties of Agent shall be mechanical and administrative in nature and Agent shall not have, or be deemed to have, by reason of this Agreement, any other Loan Document or otherwise a fiduciary relationship in respect of
any Lender. Except as expressly set forth in this Agreement and the other Loan Documents, Agent shall not have any duty to disclose, and shall not be liable for failure to disclose, any information relating to any Credit Party or any of their
respective Subsidiaries or any Account Debtor that is communicated to or obtained by GE Capital or any of its Affiliates in any capacity. Neither Agent nor any of its Affiliates nor any of their respective officers, directors, employees, agents or
representatives shall be liable to any Lender for any action taken or omitted to be taken by it hereunder or under any other Loan Document, or in connection herewith or therewith, except for damages caused by its or their own gross negligence or
willful misconduct. 
  
 If Agent shall request instructions from
Requisite Lenders, Supermajority Revolving Lenders or all affected Lenders with respect to any act or action (including failure to act) in connection with this Agreement or any other Loan Document, then Agent shall be entitled to refrain from such
act or taking such action unless and until Agent shall have received instructions from Requisite Lenders, Supermajority Revolving Lenders, or all affected Lenders, as the case may be, and Agent shall not incur liability to any Person by reason of so
refraining. Agent shall be fully justified in failing or refusing to take any action hereunder or under any other Loan Document (a) if such action would, in the opinion of Agent, be contrary to law or the terms of this Agreement or any other Loan
Document, (b) if such action would, in the opinion of Agent, expose Agent to Environmental Liabilities or (c) if Agent shall not first be indemnified to its satisfaction against any and all liability and expense which may be incurred by it by reason
of taking or continuing to take any such action. Without limiting the foregoing, no Lender shall have any right of action whatsoever against Agent as a result of Agent acting or refraining from acting hereunder or under any other Loan Document in
accordance with the instructions of Requisite Lenders, Supermajority Revolving Lenders or all affected Lenders, as applicable. 
  
 9.3 Agent’s Reliance, Etc. Neither Agent nor any of its Affiliates nor any of their respective directors, officers, agents or employees shall
be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement or the other Loan Documents, except for damages caused by its or their own gross negligence or willful misconduct. Without limiting the
generality of the foregoing, Agent: (a) may treat the payee of any Note as the holder thereof until Agent receives written notice of the assignment or transfer thereof signed by such payee and in form reasonably satisfactory to Agent; (b) may
consult with legal counsel, independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or
experts; (c) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made in or in connection with this Agreement or the other Loan Documents; (d) shall not have
any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or the other Loan Documents on the part of any Credit Party or to inspect the Collateral (including the books and
records) of any Credit 

  

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Party; (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; and (f) shall incur no liability under or in respect of this Agreement or the other Loan Documents by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopy, telegram, cable or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
  
 9.4 GE Capital and Affiliates. With respect to its Commitments hereunder, GE Capital shall have the same rights and
powers under this Agreement and the other Loan Documents as any other Lender and may exercise the same as though it were not Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include GE
Capital in its individual capacity. GE Capital and its Affiliates may lend money to, invest in, and generally engage in any kind of business with, any Credit Party, any of their Affiliates and any Person who may do business with or own securities of
any Credit Party or any such Affiliate, all as if GE Capital were not Agent and without any duty to account therefor to Lenders. GE Capital and its Affiliates may accept fees and other consideration from any Credit Party for services in connection
with this Agreement or otherwise without having to account for the same to Lenders. Each Lender acknowledges the potential conflict of interest between GE Capital as a Lender holding disproportionate interests in the Loans and GE Capital as Agent.

  
 9.5 Lender Credit Decision. Each Lender acknowledges
that it has, independently and without reliance upon Agent or any other Lender and based on the Financial Statements referred to in Section 3.4(a) and such other documents and information as it has deemed appropriate, made its own credit and
financial analysis of the Credit Parties and its own decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon 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 this Agreement. Each Lender acknowledges the potential conflict of interest of each other Lender as a result of Lenders holding
disproportionate interests in the Loans, and expressly consents to, and waives any claim based upon, such conflict of interest. 
  
 9.6 Indemnification. Lenders agree to indemnify Agent (to the extent not reimbursed by Credit Parties and without limiting the obligations of
Borrowers hereunder), ratably according to their respective Pro Rata Shares, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against Agent in any way relating to or arising out of this Agreement or any other Loan Document or any action taken or omitted to be taken by Agent in connection therewith;
provided, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from Agent’s gross negligence or willful
misconduct. Without limiting the foregoing, each Lender agrees to reimburse Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees) incurred by Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of 

  

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rights or responsibilities under, this Agreement and each other Loan Document, to the extent that Agent is not reimbursed for such expenses by Credit
Parties. 
  
 9.7 Successor Agent. Agent may resign at any
time by giving not less than 30 days’ prior written notice thereof to Lenders and Borrower Representative. Upon any such resignation, the Requisite Lenders shall have the right to appoint a successor Agent. If no successor Agent shall have been
so appointed by the Requisite Lenders and shall have accepted such appointment within 30 days after the resigning Agent’s giving notice of resignation, then the resigning Agent may, on behalf of Lenders, appoint a successor Agent, which shall
be a Lender, if a Lender is willing to accept such appointment, or otherwise shall be a commercial bank or financial institution or a subsidiary of a commercial bank or financial institution if such commercial bank or financial institution is
organized under the laws of the United States of America or of any State thereof and has a combined capital and surplus of at least $300,000,000. If no successor Agent has been appointed pursuant to the foregoing, within 30 days after the date such
notice of resignation was given by the resigning Agent, such resignation shall become effective and the Requisite Lenders shall thereafter perform all the duties of Agent hereunder until such time, if any, as the Requisite Lenders appoint a
successor Agent as provided above. Any successor Agent appointed by Requisite Lenders hereunder shall be subject to the approval of Borrower Representative, such approval not to be unreasonably withheld or delayed; provided that such approval
shall not be required if a Default or an Event of Default has occurred and is continuing. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall succeed to and become vested with all the rights,
powers, privileges and duties of the resigning Agent. Upon the earlier of the acceptance of any appointment as Agent hereunder by a successor Agent or the effective date of the resigning Agent’s resignation, the resigning Agent shall be
discharged from its duties and obligations under this Agreement and the other Loan Documents, except that any indemnity rights or other rights in favor of such resigning Agent shall continue. After any resigning Agent’s resignation hereunder,
the provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was acting as Agent under this Agreement and the other Loan Documents. 
  
 9.8 Setoff and Sharing of Payments. In addition to any rights now or
hereafter granted under applicable law and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default and subject to Section 9.9(f), each Lender is hereby authorized at any time or from
time to time, without notice to any Credit Party or to any other Person, any such notice being hereby expressly waived, to offset and to appropriate and to apply any and all balances held by it at any of its offices for the account of any Borrower
or any Guarantor (regardless of whether such balances are then due to such Borrower or Guarantor) and any other properties or assets at any time held or owing by that Lender or that holder to or for the credit or for the account of any Borrower or
any Guarantor against and on account of any of the Obligations that are not paid when due. Any Lender exercising a right of setoff or otherwise receiving any payment on account of the Obligations in excess of its Pro Rata Share thereof shall
purchase for cash (and the other Lenders or holders shall sell) such participations in each such other Lender’s or holder’s Pro Rata Share of the Obligations as would be necessary to cause such Lender to share the amount so offset or
otherwise received with each other Lender or holder in accordance with their respective Pro Rata Shares, (other than offset rights exercised by any Lender with respect to Sections 1.13, 1.15 or 1.16). Each Borrower and each
Guarantor agrees, to the fullest extent permitted by law, that (a) 

  

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any Lender may exercise its right to offset with respect to amounts in excess of its Pro Rata Share of the Obligations and may sell participations in such
amounts so offset to other Lenders and holders and (b) any Lender so purchasing a participation in the Loans made or other Obligations held by other Lenders or holders may exercise all rights of offset, bankers’ lien, counterclaim or similar
rights with respect to such participation as fully as if such Lender or holder were a direct holder of the Loans and the other Obligations in the amount of such participation. Notwithstanding the foregoing, if all or any portion of the offset amount
or payment otherwise received is thereafter recovered from the Lender that has exercised the right of offset, the purchase of participations by that Lender shall be rescinded and the purchase price restored without interest. 
  
 9.9 Advances; Payments; Non-Funding Lenders; Information; Actions in
Concert. 
  
 (a) Advances; Payments. 
  
 (i) Each Revolving Lender shall make the amount of such
Lender’s Pro Rata Share of such Revolving Credit Advance available to Agent in same day funds by wire transfer to Agent’s account as set forth in Annex H not later than 3:00 p.m. (New York time) on the requested funding date, in the
case of an Index Rate Loan and not later than 11:00 a.m. (New York time) on the requested funding date in the case of a LIBOR Loan. After receipt of such wire transfers (or, in the Agent’s sole discretion, before receipt of such wire
transfers), subject to the terms hereof, Agent shall make the requested Revolving Credit Advance to the Borrower designated by Borrower Representative in the Notice of Revolving Credit Advance. All payments by each Revolving Lender shall be made
without setoff, counterclaim or deduction of any kind. 
  
 (ii) On the 2nd Business Day of each calendar week or more frequently at Agent’s election (each, a “Settlement Date”), Agent shall advise each Lender by telephone, or telecopy of the amount of such Lender’s Pro
Rata Share of principal, interest and Fees paid for the benefit of Lenders with respect to each applicable Loan. Provided that each Lender has funded all payments and Advances required to be made by it and purchased all participations required to be
purchased by it under this Agreement and the other Loan Documents as of such Settlement Date, Agent shall pay to each Lender such Lender’s Pro Rata Share of principal, interest and Fees paid by Borrowers since the previous Settlement Date for
the benefit of such Lender on the Loans held by it. To the extent that any Lender (a “Non-Funding Lender”) has failed to fund all such payments and Advances or failed to fund the purchase of all such participations, Agent shall be entitled
to set off the funding short-fall against that Non-Funding Lender’s Pro Rata Share of all payments received from Borrowers. Such payments shall be made by wire transfer to such Lender’s account (as specified by such Lender in Annex
H or the applicable Assignment Agreement) not later than 2:00 p.m. (New York time) on the next Business Day following each Settlement Date. 
  
 (b) Availability of Lender’s Pro Rata Share. Agent may assume that each Revolving Lender will make its Pro Rata Share of each Revolving Credit
Advance available to Agent on each funding date. If such Pro Rata Share is not, in fact, paid to Agent by such Revolving Lender when due, Agent will be entitled to recover such amount on demand from 

  

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such Revolving Lender without setoff, counterclaim or deduction of any kind. If any Revolving Lender fails to pay the amount of its Pro Rata Share forthwith
upon Agent’s demand, Agent shall promptly notify Borrower Representative and Borrowers shall immediately repay such amount to Agent. Nothing in this Section 9.9(b) or elsewhere in this Agreement or the other Loan Documents shall be
deemed to require Agent to advance funds on behalf of any Revolving Lender or to relieve any Revolving Lender from its obligation to fulfill its Commitments hereunder or to prejudice any rights that Borrowers may have against any Revolving Lender as
a result of any default by such Revolving Lender hereunder. To the extent that Agent advances funds to any Borrower on behalf of any Revolving Lender and is not reimbursed therefor on the same Business Day as such Advance is made, Agent shall be
entitled to retain for its account all interest accrued on such Advance until reimbursed by the applicable Revolving Lender. 
  
 (c) Return of Payments. 
  
 (i) If Agent pays an amount to a Lender under this Agreement in the belief or expectation that a related payment has been or will be
received by Agent from Borrowers and such related payment is not received by Agent, then Agent will be entitled to recover such amount from such Lender on demand without setoff, counterclaim or deduction of any kind. 
  
 (ii) If Agent determines at any time that any amount
received by Agent under this Agreement must be returned to any Borrower or paid to any other Person pursuant to any insolvency law or otherwise, then, notwithstanding any other term or condition of this Agreement or any other Loan Document, Agent
will not be required to distribute any portion thereof to any Lender. In addition, each Lender will repay to Agent on demand any portion of such amount that Agent has distributed to such Lender, together with interest at such rate, if any, as Agent
is required to pay to any Borrower or such other Person, without setoff, counterclaim or deduction of any kind. 
  
 (d) Non-Funding Lenders. The failure of any Non-Funding Lender to make any Revolving Credit Advance or any payment required by it hereunder shall
not relieve any other Lender (each such other Revolving Lender, an “Other Lender”) of its obligations to make such Advance or purchase such participation on such date, but neither any Other Lender nor Agent shall be responsible for
the failure of any Non-Funding Lender to make an Advance, purchase a participation or make any other payment required hereunder. Notwithstanding anything set forth herein to the contrary, a Non-Funding Lender shall not have any voting or consent
rights under or with respect to any Loan Document or constitute a “Lender” or a “Revolving Lender” (or be included in the calculation of “Requisite Lenders” or “Supermajority Revolving Lenders” hereunder) for
any voting or consent rights under or with respect to any Loan Document. At Borrower Representative’s request, Agent or a Person acceptable to Agent shall have the right with Agent’s consent and in Agent’s sole discretion (but shall
have no obligation) to purchase from any Non-Funding Lender, and each Non-Funding Lender agrees that it shall, at Agent’s request, sell and assign to Agent or such Person, all of the Commitments of that Non-Funding Lender for an amount equal to
the principal balance of all Loans held by such Non-Funding Lender and all accrued interest and fees with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to an executed Assignment Agreement. 
  

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 (e) Dissemination of Information. Agent shall use reasonable efforts to provide Lenders with any
notice of Default or Event of Default received by Agent from, or delivered by Agent to, any Credit Party, with notice of any Event of Default of which Agent has actually become aware and with notice of any action taken by Agent following any Event
of Default; provided, that Agent shall not be liable to any Lender for any failure to do so, except to the extent that such failure is attributable to Agent’s gross negligence or willful misconduct. Lenders acknowledge that Borrowers are
required to provide Financial Statements and Collateral Reports to Lenders in accordance with Annexes E and F hereto and agree that Agent shall have no duty to provide the same to Lenders. 
  
 (f) Actions in Concert. Anything in this Agreement to the contrary
notwithstanding, each Lender hereby agrees with each other Lender that no Lender shall take any action to protect or enforce its rights arising out of this Agreement or the Notes (including exercising any rights of setoff) without first obtaining
the prior written consent of Agent and Requisite Lenders, it being the intent of Lenders that any such action to protect or enforce rights under this Agreement and the Notes shall be taken in concert and at the direction or with the consent of Agent
or Requisite Lenders. 
  

	10.	SUCCESSORS AND ASSIGNS 

  
 10.1 Successors and Assigns. This Agreement and the other Loan Documents shall be binding on and shall inure to the benefit of each Credit Party,
Agent, Lenders and their respective successors and assigns (including, in the case of any Credit Party, a debtor-in-possession on behalf of such Credit Party), except as otherwise provided herein or therein. No Credit Party may assign, transfer,
hypothecate or otherwise convey its rights, benefits, obligations or duties hereunder or under any of the other Loan Documents without the prior express written consent of Agent and Lenders. Any such purported assignment, transfer, hypothecation or
other conveyance by any Credit Party without the prior express written consent of Agent and Lenders shall be void. The terms and provisions of this Agreement are for the purpose of defining the relative rights and obligations of each Credit Party,
Agent and Lenders with respect to the transactions contemplated hereby and no Person shall be a third party beneficiary of any of the terms and provisions of this Agreement or any of the other Loan Documents. 
  

	11.	MISCELLANEOUS 

  
 11.1 Complete Agreement; Modification of Agreement. The Loan Documents constitute the complete agreement between the parties with respect to the
subject matter thereof and may not be modified, altered or amended except as set forth in Section 11.2. Any letter of interest, commitment letter (except the GE Capital Commitment Letter solely to the extent that such letter relates to the
obligations of any Borrower to pay fees, without duplication of the other fees specifically set forth in this Agreement) or fee letter between any Credit Party and Agent or any Lender or any of their respective Affiliates, predating this Agreement
and relating to a financing of substantially similar form, purpose or effect shall be superseded by this Agreement. 
  

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 11.2 Amendments and Waivers. 
  
 (a) Except for actions expressly permitted to be taken by Agent, no amendment, modification, termination or waiver of any
provision of this Agreement or any other Loan Document, or any consent to any departure by any Credit Party therefrom, shall in any event be effective unless the same shall be in writing and signed by Agent and Borrowers, and by Requisite Lenders,
Supermajority Revolving Lenders or all affected Lenders, as applicable. Except as set forth in clauses (b) and (c) below, all such amendments, modifications, terminations or waivers requiring the consent of any Lenders shall require
the written consent of Requisite Lenders. 
  
 (b) No amendment,
modification, termination or waiver of or consent with respect to any provision of this Agreement that increases the percentage advance rates set forth in the definition of the Borrowing Base, or that makes less restrictive the nondiscretionary
criteria for exclusion from Eligible Accounts set forth in Sections 1.6 and 1.7, shall be effective unless the same shall be in writing and signed by Agent, Supermajority Revolving Lenders and Borrowers. No amendment, modification,
termination or waiver of or consent with respect to any provision of this Agreement that waives compliance with the conditions precedent set forth in Section 2.2 to the making of any Loan or the incurrence of any Letter of Credit Obligations
shall be effective unless the same shall be in writing and signed by Agent, Requisite Lenders and Borrowers. Notwithstanding anything contained in this Agreement to the contrary, no waiver or consent with respect to any Default or any Event of
Default shall be effective for purposes of the conditions precedent to the making of Loans or the incurrence of Letter of Credit Obligations set forth in Section 2.2 and Section 2.3 unless the same shall be in writing and signed by
Agent, Requisite Lenders and Borrowers. 
  
 (c) No amendment,
modification, termination or waiver shall, unless in writing and signed by Agent and each Lender directly affected thereby: (i) increase the principal amount of any Lender’s Commitment (which action shall be deemed only to affect those Lenders
whose Commitments are increased and may be approved by Requisite Lenders, including those lenders whose Commitments are increased); (ii) reduce the principal of, rate of interest on or Fees payable with respect to any Loan or Letter of Credit
Obligations of any affected Lender; (iii) extend any scheduled payment date (other than payment dates of mandatory prepayments under Section 1.3(b)(ii)-(iv)) or final maturity date of the principal amount of any Loan of any affected Lender;
(iv) waive, forgive, defer, extend or postpone any payment of interest or Fees as to any affected Lender; (v) release any Guaranty or, except as otherwise permitted herein or in the other Loan Documents, release, or permit any Credit Party to sell
or otherwise dispose of, any Collateral with a value exceeding $5,000,000 in the aggregate (which action shall be deemed to directly affect all Lenders); (vi) change the percentage of the Commitments or of the aggregate unpaid principal amount of
the Loans that shall be required for Lenders or any of them to take any action hereunder; and (vii) amend or waive this Section 11.2 or the definitions of the terms “Requisite Lenders” or “Supermajority Revolving Lenders”
insofar as such definitions affect the substance of this Section 11.2. Furthermore, no amendment, modification, termination or waiver affecting the rights or duties of Agent or L/C Issuer under this Agreement or any other Loan Document shall
be effective unless in writing and signed by Agent or L/C Issuer, as the case may be, in addition to Lenders required hereinabove to take such action. Each amendment, modification, termination or waiver shall be effective only in the specific
instance and for the 

  

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specific purpose for which it was given. No amendment, modification, termination or waiver shall be required for Agent to take additional Collateral pursuant
to any Loan Document. No amendment, modification, termination or waiver of any provision of any Note shall be effective without the written concurrence of the holder of that Note. No notice to or demand on any Credit Party in any case shall entitle
such Credit Party or any other Credit Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this Section 11.2 shall be binding
upon each holder of the Notes at the time outstanding and each future holder of the Notes. 
  
 (d) If, in connection with any proposed amendment, modification, waiver or termination (a “Proposed Change”): 
  

(i) requiring the consent of all affected Lenders, the consent of Requisite Lenders is obtained, but the consent of other Lenders whose
consent is required is not obtained (any such Lender whose consent is not obtained as described in this clause (i) and in clauses (ii), (iii) and (iv) below being referred to as a “Non-Consenting
Lender”), 
  
 (ii) requiring the consent
of Supermajority Revolving Lenders, the consent of Requisite Lenders is obtained, but the consent of Supermajority Revolving Lenders is not obtained, 
  
 (iii) requiring the consent of Requisite Lenders, the consent of Revolving Lenders holding 51% or more of the aggregate Revolving Loan
Commitments is obtained, but the consent of Requisite Lenders is not obtained, or 
  
 (iv) requiring the consent of Requisite Lenders, the consent of Lenders holding 51% or more of the aggregate Commitments is obtained, but
the consent of Requisite Lenders is not obtained, 
  
 then, so long as Agent is
not a Non-Consenting Lender, at Borrower Representative’s request Agent, or a Person reasonably acceptable to Agent, shall have the right with Agent’s consent and in Agent’s sole discretion (but shall have no obligation) to purchase
from such Non-Consenting Lenders, and such Non-Consenting Lenders agree that they shall, upon Agent’s request, sell and assign to Agent or such Person, all of the Commitments of such Non-Consenting Lenders for an amount equal to the principal
balance of all Loans held by the Non-Consenting Lenders and all accrued interest and Fees with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to an executed Assignment Agreement. 
  
 (e) Upon payment in full in cash and performance of all of the Obligations
(other than indemnification Obligations), termination of the Commitments and a release of all claims against Agent and Lenders, and so long as no suits, actions proceedings, or claims are pending or threatened against any Indemnified Person
asserting any damages, losses or liabilities that are Indemnified Liabilities, Agent shall deliver to Borrowers termination statements, mortgage releases and other documents necessary or appropriate to evidence the termination of the Liens securing
payment of the Obligations. 
  
 11.3 Fees and Expenses.
Borrowers shall reimburse (i) Agent for all fees, costs and expenses (including the reasonable fees and expenses of all of its counsel, advisors, 

  

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consultants and auditors; provided, however, that, absent an Event of Default, Borrowers shall only be responsible for the fees, costs and
expenses of one field examination or audit per year performed pursuant to Section 1.14, and (ii) Agent (and, with respect to clauses (c) and (d) below, all Lenders) for all fees, costs and expenses, including the reasonable
fees, costs and expenses of counsel or other advisors (including environmental and management consultants and appraisers) incurred in connection with the negotiation and preparation of the Loan Documents and incurred in connection with: 

 
 (a) the forwarding to Borrowers or any other Person on behalf of Borrowers
by Agent of the proceeds of any Loan (including a wire transfer fee of $25 per wire transfer); 
  
 (b) any amendment, modification or waiver of, or consent with respect to, or termination of, any of the Loan Documents or Related Transactions Documents or advice in connection with the syndication and administration
of the Loans made pursuant hereto or its rights hereunder or thereunder; 
  
 (c) any litigation, contest, dispute, suit, proceeding or action (whether instituted by Agent, any Lender, any Borrower or any other Person and whether as a party, witness or otherwise) in any way relating to the
Collateral, any of the Loan Documents or any other agreement to be executed or delivered in connection herewith or therewith, including any litigation, contest, dispute, suit, case, proceeding or action, and any appeal or review thereof, in
connection with a case commenced by or against any or all of the Borrowers or any other Person that may be obligated to Agent by virtue of the Loan Documents, including any such litigation, contest, dispute, suit, proceeding or action arising in
connection with any work-out or restructuring of the Loans during the pendency of one or more Events of Default; provided that in the case of reimbursement of counsel for Lenders other than Agent, such reimbursement shall be limited to one
counsel for all such Lenders; provided, further, that no Person shall be entitled to reimbursement under this clause (c) in respect of any litigation, contest, dispute, suit, proceeding or action to the extent any of the foregoing results
from such Person’s gross negligence or willful misconduct; 
  
 (d) any attempt to enforce any remedies of Agent or any Lender against any or all of the Credit Parties or any other Person that may be obligated to Agent or any Lender by virtue of any of the Loan Documents, including any such attempt to
enforce any such remedies in the course of any work-out or restructuring of the Loans during the pendency of one or more Events of Default; provided, that in the case of reimbursement of counsel for Lenders other than Agent, such
reimbursement shall be limited to one counsel for all such Lenders; 
  
 (e) any workout or restructuring of the Loans during the pendency of one or more Events of Default; and 
  
 (f) efforts to (i) monitor the Loans or any of the other Obligations, (ii) evaluate, observe or assess any of the Credit Parties or their respective
affairs, and (iii) verify, protect, evaluate, assess, appraise, collect, sell, liquidate or otherwise dispose of any of the Collateral; 

  

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including, as to each of clauses (a) through (f) above, all reasonable attorneys’ and other professional and service providers’ fees
incurred in connection with such services and other advice, assistance or other representation, including those in connection with any appellate proceedings, and all expenses, costs, charges and other fees incurred by such counsel and others in
connection with or relating to any of the events or actions described in this Section 11.3, all of which shall be payable, on demand, by Borrowers to Agent. Without limiting the generality of the foregoing, such expenses, costs, charges and
fees may include: fees, costs and expenses of accountants, environmental advisors, appraisers, investment bankers, management and other consultants and paralegals; court costs and expenses; photocopying and duplication expenses; court reporter fees,
costs and expenses; long distance telephone charges; air express charges; telegram or telecopy charges; secretarial overtime charges; and expenses for travel, lodging and food paid or incurred in connection with the performance of such legal or
other advisory services. 
  
 11.4 No Waiver.
Agent’s or any Lender’s failure, at any time or times, to require strict performance by the Credit Parties of any provision of this Agreement or any other Loan Document shall not waive, affect or diminish any right of Agent or such Lender
thereafter to demand strict compliance and performance herewith or therewith. Any suspension or waiver of an Event of Default shall not suspend, waive or affect any other Event of Default whether the same is prior or subsequent thereto and whether
the same or of a different type. Subject to the provisions of Section 11.2, none of the undertakings, agreements, warranties, covenants and representations of any Credit Party contained in this Agreement or any of the other Loan Documents and
no Default or Event of Default by any Credit Party shall be deemed to have been suspended or waived by Agent or any Lender, unless such waiver or suspension is by an instrument in writing signed by an officer of or other authorized employee of Agent
and the applicable required Lenders and directed to Borrowers specifying such suspension or waiver. 
  
 11.5 Remedies. Agent’s and Lenders’ rights and remedies under this Agreement shall be cumulative and nonexclusive of any other rights and
remedies that Agent or any Lender may have under any other agreement, including the other Loan Documents, by operation of law or otherwise. Recourse to the Collateral shall not be required. 
  
 11.6 Severability. Wherever possible, each provision of this Agreement
and the other Loan Documents shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement or any other Loan Document shall be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement or such other Loan Document. 
  
 11.7 Conflict of Terms. Except as otherwise provided in this Agreement
or any of the other Loan Documents by specific reference to the applicable provisions of this Agreement, if any provision contained in this Agreement conflicts with any provision in any of the other Loan Documents, the provision contained in this
Agreement shall govern and control. 
  

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 11.8 Confidentiality. 
  
 (a) Any information from time to time delivered to the Agent and/or the Lenders by the Borrowers or any other Credit Party
which is identified as confidential and which is not in the public domain shall be held by the Agent or such Lender as confidential for a period of at least three years following receipt thereof; provided, that the Agent and each Lender may make
disclosure of such information (i) to its independent accountants and legal counsel (which Persons shall be likewise bound by the provisions of this Section 11.8), (ii) pursuant to statutory and regulatory requirements, (iii) pursuant to any
mandatory court order or subpoena or in connection with any legal process, (iv) pursuant to any written agreement hereafter made between the Agent, any Lender and the Borrowers or any other Credit Party to which such information relates, which
agreement permits such disclosure, (v) as necessary in connection with the exercise of any remedy by Agent or any Lender under the Loan Documents, (vi) consisting of general portfolio information that does not identify any Credit Party, (vii) which
was heretofore been publicly disclosed or is otherwise available to such Agent and/or Lender on a non-confidential basis from a source that is not, to its knowledge, subject to a confidentiality agreement with any Credit Party, (viii) in connection
with any litigation to which Agent or any Lender or its Affiliates is a party, or (ix) subject to an agreement containing provisions substantially the same as those set forth in this Section 11.8, to any assignee of or participant in, or
prospective assignee of or participant in, any of the Obligations. 
  
 (b) Notwithstanding anything to the contrary set forth herein or in any other agreement to which the parties hereto are parties or by which they are bound, the obligations of confidentiality contained herein and therein, as they relate to
the transactions contemplated by the Credit Agreement and the other loan documents (the “Transaction”), shall not apply to the federal tax structure or federal tax treatment of the Transaction, and each party hereto (and any
employee, representative, agent of any party hereto) may disclose to any and all persons, without limitation of any kind, the federal tax structure and federal tax treatment of the Transaction. The preceding sentence is intended to cause the
Transaction to be treated as not having been offered under conditions of confidentiality for purposes of Section 1.6011-4(b)(3) (or any successor provision) of the Treasury Regulations promulgated under Section 6011 of the Internal Revenue Code of
1986, as amended, and shall be construed in a manner consistent with such purpose. In addition, each party hereto acknowledges that it has no proprietary or exclusive rights to the federal tax structure of the Transaction or any federal tax matter
or federal tax idea related to the Transaction. 
  
 11.9
GOVERNING LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THE LOAN DOCUMENTS AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF GEORGIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH CREDIT PARTY HEREBY CONSENTS AND AGREES THAT THE STATE
OR FEDERAL COURTS LOCATED IN FULTON COUNTY, CITY OF FULTON, GEORGIA SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE CREDIT PARTIES, AGENT AND LENDERS PERTAINING 

  

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TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS;
PROVIDED, THAT AGENT, LENDERS AND THE CREDIT PARTIES ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF FULTON COUNTY AND; PROVIDED, FURTHER THAT NOTHING IN THIS AGREEMENT SHALL BE
DEEMED OR OPERATE TO PRECLUDE 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, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT.
EACH CREDIT PARTY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH CREDIT PARTY HEREBY WAIVES ANY OBJECTION THAT SUCH CREDIT PARTY MAY HAVE BASED UPON LACK OF PERSONAL
JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS,
COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH CREDIT PARTY AT THE ADDRESS SET FORTH IN ANNEX I
OF THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH CREDIT PARTY’S ACTUAL RECEIPT THEREOF OR 3 BUSINESS DAYS AFTER DEPOSIT IN THE UNITED STATES MAILS, PROPER POSTAGE PREPAID. 
  
 11.10 Notices. Except as otherwise provided herein, whenever it is
provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other parties, or whenever any of the parties desires to give or serve upon any
other parties any communication with respect to this Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be deemed to have been validly served, given or delivered (a) upon
the earlier of actual receipt and 3 Business Days after deposit in the United States Mail, registered or certified mail, return receipt requested, with proper postage prepaid, (b) upon transmission, when sent by telecopy or other similar facsimile
transmission (with such telecopy or facsimile promptly confirmed by delivery of a copy by personal delivery or United States Mail as otherwise provided in this Section 11.10); (c) 1 Business Day after deposit with a reputable overnight
courier with all charges prepaid or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address or facsimile number indicated in Annex I or to such other address (or
facsimile number) as may be substituted by notice given as herein provided. The giving of any notice required hereunder may be waived in writing by the party entitled to receive such notice. Failure or delay in delivering copies of any notice,
demand, request, consent, approval, declaration or other communication to any Person (other than Borrower Representative or Agent) designated in Annex I to receive copies shall in no way adversely affect the effectiveness of such notice,
demand, request, consent, approval, declaration or other communication. 
  

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 11.11 Section Titles. The Section titles and Table of Contents contained in this Agreement are and
shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 
  
 11.12 Counterparts. This Agreement may be executed in any number of separate counterparts, each of which shall collectively and separately
constitute one agreement. 
  
 11.13 WAIVER OF JURY TRIAL.
BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION
RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG AGENT, LENDERS AND ANY CREDIT PARTY ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED THERETO. 
  
 11.14 Press Releases and Related Matters. Each Credit Party executing this Agreement agrees that neither it nor its Affiliates will in the future
issue any press releases or other public disclosure using the name of GE Capital or its affiliates or referring to this Agreement, the other Loan Documents or the Related Transactions Documents without at least 2 Business Days’ prior notice to
GE Capital and without the prior written consent of GE Capital unless (and only to the extent that) such Credit Party or Affiliate is required to do so under law and then, in any event, such Credit Party or Affiliate will consult with GE Capital
before issuing such press release or other public disclosure. Each Credit Party consents to the publication by Agent or any Lender of a tombstone or similar advertising material relating to the financing transactions contemplated by this Agreement.
Agent or such Lender shall provide a draft of any such tombstone or similar advertising material to each Credit Party for review and comment prior to the publication thereof. Agent reserves the right to provide to industry trade organizations
information necessary and customary for inclusion in league table measurements. 
  
 11.15 Reinstatement. This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Borrower for liquidation or reorganization, should any
Borrower become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Borrower’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, 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 “voidable preference,” “fraudulent conveyance,” 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 shall be 

  

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reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 
  
 11.16 Advice of Counsel. Each of the parties represents to each other
party hereto that it has discussed this Agreement and, specifically, the provisions of Sections 11.9 and 11.13, with its counsel. 
  
 11.17 No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement. 
  

	12.	CROSS-GUARANTY 

  
 12.1 Cross-Guaranty. Each Borrower hereby agrees that such Borrower is jointly and severally liable for, and hereby absolutely and unconditionally
guarantees to Agent and Lenders and their respective successors and assigns, the full and prompt payment (whether at stated maturity, by acceleration or otherwise) and performance of, all Obligations owed or hereafter owing to Agent and Lenders by
each other Borrower. Each Borrower agrees that its guaranty obligation hereunder is a continuing guaranty of payment and performance and not of collection, that its obligations under this Section 12 shall not be discharged until payment and
performance, in full, of the Obligations has occurred, and that its obligations under this Section 12 shall be absolute and unconditional, irrespective of, and unaffected by, 
  
 (a) the genuineness, validity, regularity, enforceability or any future amendment of, or change in, this Agreement, any
other Loan Document or any other agreement, document or instrument to which any Borrower is or may become a party; 
  
 (b) the absence of any action to enforce this Agreement (including this Section 12) or any other Loan Document or the waiver or consent by Agent and
Lenders with respect to any of the provisions thereof; 
  
 (c) the
existence, value or condition of, or failure to perfect its Lien against, any security for the Obligations or any action, or the absence of any action, by Agent and Lenders in respect thereof (including the release of any such security); 

 
 (d) the insolvency of any Credit Party; or 
  
 (e) any other action or circumstances that might otherwise constitute a legal
or equitable discharge or defense of a surety or guarantor. 
  
 Each Borrower shall be regarded, and shall be in the same position, as principal debtor with respect to the Obligations guaranteed hereunder. 
  
 12.2 Waivers by Borrowers. Each Borrower expressly waives all rights it may have now or in the future under any statute, or at common law, or at
law or in equity, or otherwise, to compel Agent or Lenders to marshall assets or to proceed in respect of the 

  

 66 








 
Obligations guaranteed hereunder against any other Credit Party, any other party or against any security for the payment and performance of the Obligations
before proceeding against, or as a condition to proceeding against, such Borrower. It is agreed among each Borrower, Agent and Lenders that the foregoing waivers are of the essence of the transaction contemplated by this Agreement and the other Loan
Documents and that, but for the provisions of this Section 12 and such waivers, Agent and Lenders would decline to enter into this Agreement. 
  
 12.3 Benefit of Guaranty. Each Borrower agrees that the provisions of this Section 12 are for the benefit of Agent and Lenders and their respective
successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between any other Borrower and Agent or Lenders, the obligations of such other Borrower under the Loan Documents. 
  
 12.4 Subordination of Subrogation, Etc. Notwithstanding anything to
the contrary in this Agreement or in any other Loan Document, and except as set forth in Section 12.7, each Borrower hereby expressly and irrevocably subordinates to payment of the Obligations any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification or set off and any and all defenses available to a surety, guarantor or accommodation co-obligor until the Obligations are indefeasibly paid in full in cash. Each Borrower acknowledges and
agrees that this subordination is intended to benefit Agent and Lenders and shall not limit or otherwise affect such Borrower’s liability hereunder or the enforceability of this Section 12, and that Agent, Lenders and their respective
successors and assigns are intended third party beneficiaries of the waivers and agreements set forth in this Section 12.4. 
  
 12.5 Election of Remedies. If Agent or any Lender may, under applicable law, proceed to realize its benefits under any of the Loan Documents giving
Agent or such Lender a Lien upon any Collateral, whether owned by any Borrower or by any other Person, either by judicial foreclosure or by non-judicial sale or enforcement, Agent or any Lender may, at its sole option, determine which of its
remedies or rights it may pursue without affecting any of its rights and remedies under this Section 12. If, in the exercise of any of its rights and remedies, Agent or any Lender shall forfeit any of its rights or remedies, including its right to
enter a deficiency judgment against any Borrower or any other Person, whether because of any applicable laws pertaining to “election of remedies” or the like, each Borrower hereby consents to such action by Agent or such Lender and waives
any claim based upon such action, even if such action by Agent or such Lender shall result in a full or partial loss of any rights of subrogation that each Borrower might otherwise have had but for such action by Agent or such Lender. Any election
of remedies that results in the denial or impairment of the right of Agent or any Lender to seek a deficiency judgment against any Borrower shall not impair any other Borrower’s obligation to pay the full amount of the Obligations. In the event
Agent or any Lender shall bid at any foreclosure or trustee’s sale or at any private sale permitted by law or the Loan Documents, Agent or such Lender may bid all or less than the amount of the Obligations and the amount of such bid need not be
paid by Agent or such Lender but shall be credited against the Obligations. The amount of the successful bid at any such sale, whether Agent, Lender or any other party is the successful bidder, shall be conclusively deemed to be the fair market
value of the Collateral and the difference between such bid amount and the remaining balance of the Obligations shall be conclusively deemed to be the amount of the Obligations guaranteed under this Section 12, notwithstanding that any present or
future law or court decision or ruling may have the effect of 

  

 67 








 
reducing the amount of any deficiency claim to which Agent or any Lender might otherwise be entitled but for such bidding at any such sale. 
  
 12.6 Limitation. Notwithstanding any provision herein contained to the
contrary, each Borrower’s liability under this Section 12 (which liability is in any event in addition to amounts for which such Borrower is primarily liable under Section 1) shall be limited to an amount not to exceed as of any date of
determination the greater of: 
  
 (a) the net amount of all Loans
advanced to any other Borrower under this Agreement and then re-loaned or otherwise transferred to, or for the benefit of, such Borrower; and 
  
 (b) the amount that could be claimed by Agent and Lenders from such Borrower under this Section 12 without rendering such claim voidable or avoidable
under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law after taking into account, among other things, such
Borrower’s right of contribution and indemnification from each other Borrower under Section 12.7. 
  
 12.7 Contribution with Respect to Guaranty Obligations. 
  
 (a) To the extent that any Borrower shall make a payment under this Section 12 of all or any of the Obligations (other than Loans made to that
Borrower for which it is primarily liable) (a “Guarantor Payment”) that, taking into account all other Guarantor Payments then previously or concurrently made by any other Borrower, exceeds the amount that such Borrower would otherwise
have paid if each Borrower had paid the aggregate Obligations satisfied by such Guarantor Payment in the same proportion that such Borrower’s “Allocable Amount” (as defined below) (as determined immediately prior to such Guarantor
Payment) bore to the aggregate Allocable Amounts of each of the Borrowers as determined immediately prior to the making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Obligations and termination of the
Commitments, such Borrower shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Borrower for the amount of such excess, pro rata based upon their respective Allocable Amounts in effect
immediately prior to such Guarantor Payment. 
  
 (b) As of any
date of determination, the “Allocable Amount” of any Borrower shall be equal to the maximum amount of the claim that could then be recovered from such Borrower under this Section 12 without rendering such claim voidable or avoidable
under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law. 
  
 (c) This Section 12.7 is intended only to define the relative rights of Borrowers and nothing set forth in this
Section 12.7 is intended to or shall impair the obligations of Borrowers, jointly and severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of this Agreement, including Section
12.1. Nothing contained in this Section 12.7 shall limit the liability of any Borrower to pay the Loans made 

  

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directly or indirectly to that Borrower and accrued interest, Fees and expenses with respect thereto for which such Borrower shall be primarily liable.

  
 (d) The parties hereto acknowledge that the rights of
contribution and indemnification hereunder shall constitute assets of the Borrower to which such contribution and indemnification is owing. 
  
 (e) The rights of the indemnifying Borrowers against other Credit Parties under this Section 12.7 shall be exercisable upon the full and
indefeasible payment of the Obligations and the termination of the Commitments. 
  
 12.8 Liability Cumulative. The liability of Borrowers under this Section 12 is in addition to and shall be cumulative with all liabilities of each Borrower to Agent and Lenders under this Agreement and the
other Loan Documents to which such Borrower is a party or in respect of any Obligations or obligation of the other Borrower, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary. 
  
 [Remainder of page
intentionally left blank; signature pages follow] 
  

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 IN WITNESS WHEREOF, this Credit Agreement has been duly executed as of the date first written above.

  

			
	 BORROWERS:

	
	PEDIATRIC SERVICES OF AMERICA, INC.,
	 a Delaware corporation

		
	By:	 	/s/    JAMES M. MCNEILL        
	 	 	

	 Name:
	 	James M. McNeill
	 Title:
	 	Senior Vice President, CFO and Secretary
	
	PEDIATRIC SERVICES OF AMERICA, INC.,
	 a Georgia corporation

		
	By:	 	/s/    JAMES M. MCNEILL        
	 	 	

	 Name:
	 	James M. McNeill
	 Title:
	 	Senior Vice President, CFO and Secretary
	 AGENT AND LENDERS:

	
	 GENERAL ELECTRIC CAPITAL
 CORPORATION, as Agent and Lender

		
	By:	 	/s/    KEITH S. KENNEDY        
	 	 	

	 Name:
	 	Keith S. Kennedy
	 Its Duly Authorized Signatory



  









 The following Persons are signatories to this Agreement in their capacity as Credit Parties and not as
Borrowers. 
  

			
	PSA CAPITAL CORPORATION,
	 a Delaware corporation

		
	By:	 	/s/    JAMES M. MCNEILL        
	 	 	

	 Name:
	 	James M. McNeill
	 Title:
	 	Secretary
	
	PEDIATRIC HOME NURSING SERVICES, INC.,
	 a New York corporation

		
	By:	 	/s/    JAMES M. MCNEILL        
	 	 	

	 Name:
	 	James M. McNeill
	 Title:
	 	Secretary
	
	PSA PROPERTIES CORPORATION,
	 a Delaware corporation

		
	By:	 	/s/    JAMES M. MCNEILL        
	 	 	

	 Name:
	 	James M. McNeill
	 Title:
	 	Secretary
	
	PSA LICENSING CORPORATION,
	 a Delaware corporation

		
	By:	 	/s/    JAMES M. MCNEILL        
	 	 	

	 Name:
	 	James M. McNeill
	 Title:
	 	Secretary


  









 ANNEX A (Recitals) 
 to 
 CREDIT AGREEMENT 
  
 DEFINITIONS 
  
 Capitalized terms used in the Loan Documents shall have (unless otherwise
provided elsewhere in the Loan Documents) the following respective meanings and all references to Sections, Exhibits, Schedules or Annexes in the following definitions shall refer to Sections, Exhibits, Schedules or Annexes of or to the Agreement:

  
 “Account Debtor” means any Person who may
become obligated to any Credit Party under, with respect to, or on account of, an Account. 
  
 “Accounting Changes” has the meaning ascribed thereto in Annex G. 
  
 “Accounts” means all “accounts,” as such term is defined in the Code, now owned or hereafter acquired by any Credit Party,
including (a) all accounts receivable, other receivables, book debts and other forms of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments), whether arising out of goods sold or services rendered by it
or from any other transaction (including any such obligations that may be characterized as an account or contract right under the Code), (b) all of each Credit Party’s rights in, to and under all purchase orders or receipts for goods or
services, (c) all of each Credit Party’s rights to any goods represented by any of the foregoing (including unpaid sellers’ rights of rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or
repossessed goods), (d) all monies due or to become due to any Credit Party, under all purchase orders and contracts for the sale of goods or the performance of services or both by such Credit Party or in connection with any other transaction
(whether or not yet earned by performance on the part of such Credit Party), including the right to receive the proceeds of said purchase orders and contracts, (e) all healthcare insurance receivables, and (f) all collateral security and guaranties
of any kind, now or hereafter in existence, given by any Account Debtor or other Person with respect to any of the foregoing. 
  
 “Accounts Receivable DSO” means, for any particular Fiscal Month and any particular Person, the quotient obtained by dividing (a)
the aggregate book value (net of contractual allowances as determined by Agent) of such Person’s billed accounts receivables as of the end of such Fiscal Month, by (b) an amount equal to (i) the aggregate patient service revenues (net of
contractual allowances as determined by Agent) of such Person for a period of three consecutive Fiscal Months ending on the last day of such Fiscal Month divided by (ii) the total number of days in such period of three consecutive Fiscal
Months, all as determined on a consolidated basis in accordance with GAAP as applicable to the terms and provisions herein. 
  
 “Acquisition Lenders” means those Lenders having Acquisition Loan Commitments. 
  
 “Acquisition Loan” means at any time, the aggregate amount
of Acquisition Loan Advances outstanding to Borrowers. 
  

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 “Acquisition Loan Advance” has the meaning ascribed to it in Section 1.1(b)(i).

  
 “Acquisition Loan Borrowing Availability”
means as of any date of determination the lesser of (i) the Maximum Acquisition Loan Amount less the amount of the Acquisition Loan then outstanding and (ii) the Borrowing Base less the amount of the Acquisition Loan and Revolving Loan
then outstanding. 
  
 “Acquisition Loan
Commitment” means (a) as to any Acquisition Loan Lender, the aggregate commitment of such Acquisition Loan Lender to make Acquisition Loan Advances as set forth on Annex J to the Agreement or in the most recent Assignment Agreement
executed by such Acquisition Loan Lender and (b) as to all Acquisition Loan Lenders, the aggregate commitment of all Acquisition Loan Lenders to make Acquisition Loan Advances, which aggregate commitment shall be Ten Million Dollars ($10,000,000) on
the Closing Date, as such amount may be adjusted, if at all, from time to time in accordance with the Agreement. 
  
 “Acquisition Loan Lenders” means, as of any date of determination, Lenders having a Acquisition Loan Commitment. 
  
 “Acquisition Loan Note” has the meaning ascribed to it in
Section 1.1(b)(iv). 
  
 “Acquisition Pro
Forma” has the meaning ascribed to it in Section 6.1(x)(A). 
  
 “Advance” means any Revolving Credit Advance or Acquisition Loan Advance. 
  
 “Affiliate” means, with respect to any Person, (a) each Person that, directly or indirectly, owns or controls, whether beneficially, or
as a trustee, guardian or other fiduciary, 5% or more of the Stock having ordinary voting power in the election of directors of such Person, (b) each Person that controls, is controlled by or is under common control with such Person, (c) each of
such Person’s officers, directors, joint venturers and partners and (d) in the case of any Borrowers, the immediate family members, spouses and lineal descendants of individuals who are Affiliates of any Borrower. For the purposes of this
definition, “control” of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract or
otherwise; provided, however, that the term “Affiliate” shall specifically exclude Agent and each Lender. 
  
 “Agent” means GE Capital in its capacity as Agent for Lenders or its successor appointed pursuant to Section 9.7. 
  
 “Agreement” means the Credit Agreement by and among
Borrowers, the other Credit Parties party thereto, GE Capital, as Agent and Lender and the other Lenders from time to time party thereto, as the same may be amended, supplemented, restated or otherwise modified from time to time. 
  
 “Appendices” has the meaning ascribed to it in the recitals
to the Agreement. 
  

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 “Applicable Acquisition Loan Index Margin” means the per annum interest rate from time
to time in effect and payable in addition to the Index Rate applicable to the Acquisition Loan, as determined by reference to Section 1.5(a). 
  
 “Applicable Acquisition Loan LIBOR Margin” means the per annum interest rate from time to time in effect and payable in addition to the
LIBOR Rate applicable to the Acquisition Loan, as determined by reference to Section 1.5(a). 
  
 “Applicable Acquisition Unused Line Fee Margin” means the per annum fee, from time to time in effect, payable in respect of
Borrowers’ non-use of committed funds pursuant to Section 1.9(b), which fee is determined by reference to Section 1.5(a). 
  
 “Applicable L/C Margin” means the per annum fee, from time to time in effect, payable with respect to outstanding Letter of Credit
Obligations as determined by reference to Section 1.5(a). 
  
 “Applicable Margins” means collectively the Applicable L/C Margin, the Applicable Unused Line Fee Margin, the Applicable Revolver Index Margin, the Applicable Acquisition Loan Index Margin, the Applicable Revolver LIBOR
Margin and the Applicable Acquisition Loan LIBOR Margin. 
  
 “Applicable Revolver Index Margin” means the per annum interest rate margin from time to time in effect and payable in addition to the Index Rate applicable to the Revolving Loan, as determined by reference to Section
1.5(a). 
  
 “Applicable Revolver LIBOR
Margin” means the per annum interest rate from time to time in effect and payable in addition to the LIBOR Rate applicable to the Revolving Loan, as determined by reference to Section 1.5(a). 
  
 “Applicable Revolver Unused Line Fee Margin” means the per
annum fee, from time to time in effect, payable in respect of Borrowers’ non-use of committed funds pursuant to Section 1.9(b), which fee is determined by reference to Section 1.5(a). 
  
 “Approved Insurance Plan” means a captive insurance plan
established by Borrowers after the Closing Date; provided that all of the terms and conditions of such plan, including without limitation all of the tax, financial and legal aspects thereof, are satisfactory to Agent and Requisite Lenders and
such plan has been approved in writing by Agent and Requisite Lenders prior to the establishment thereof, which approval shall not be unreasonably withheld. 
  
 “Assignment Agreement” has the meaning ascribed to it in Section 9.1(a). 
  
 “Bankruptcy Code” means the provisions of Title 11 of the
United States Code, 11 U.S.C. §§ 101 et seq. 
  
 “Blocked Accounts” has the meaning ascribed to it in Annex C. 
  
 “Borrower” and “Borrowers” has the meaning ascribed thereto in the preamble to the Agreement. 
  

 A - 3 








 “Borrower Pledge Agreement” means the Pledge Agreement of even date herewith executed by
Borrowers in favor of Agent, on behalf of itself and Lenders, pledging all Stock of their respective Subsidiaries, if any, and all Intercompany Notes owing to or held by them. 
  
 “Borrower Representative” means Holdings in its capacity as Borrower Representative pursuant to the
provisions of Section 1.1(d). 
  
 “Borrower
Security Agreement” means the Borrower Security Agreement of even date herewith entered into by and among Agent, on behalf of itself and Lenders, and Borrowers. 
  
 “Borrowing Availability” means Revolving Loan Borrowing Availability and/or Acquisition Loan Borrowing
Availability, as the context requires. 
  
 “Borrowing
Base” means, as of any date of determination by Agent, from time to time, an amount equal to the sum of (a) up to 85% of the net book value of Borrower Base Party’s Eligible Accounts (or, in the case of Eligible Unbilled Accounts, up
to 25% of the net book value of Borrowing Base Party’s Eligible Unbilled Accounts) at such time, plus (b) if each of the conditions to inclusion of any Qualified Accounts of a Borrower Base Party in the Borrowing Base as set forth in
Section 1.7 have been satisfied in full, up to the Qualified Accounts Advance Rate for such Qualified Accounts multiplied by the net book value of such Qualified Accounts at such time, less in the case of clauses (a) and (b) of this
definition, any Reserves established by Agent in such Agent’s reasonable credit judgment at such time. 
  
 “Borrowing Base Party” shall mean (a) PSA Georgia, and (b) upon the prior written consent of Agent and Requisite Lenders, which consent
may be granted or withheld in their sole discretion, any other domestic Subsidiary of any Borrower, provided that all of the Collateral Documents, instruments and agreements required by Section 5.10 hereof have been duly executed and
delivered by Borrower and such Subsidiary to Agent in the case of any Subsidiary acquired or created after the Closing Date. 
  
 “Borrowing Base Certificate” means a certificate to be executed and delivered from time to time by Borrower Representative in the form
attached to the Agreement as Exhibit 4.1(b). 
  
 “Business Day” means any day that is not a Saturday, a Sunday or a day on which banks are required or permitted to be closed in the States of Georgia and/or New York and in reference to LIBOR Loans shall mean any such day
that is also a LIBOR Business Day. 
  
 “Capital
Expenditures” means, with respect to any Person, all expenditures (by the expenditure of cash or the incurrence of Indebtedness) by such Person during any measuring period for any fixed assets or improvements or for replacements,
substitutions or additions thereto, that have a useful life of more than one year and that are required to be capitalized under GAAP. 
  
 “Capital Lease” means, with respect to any Person, any lease of any property (whether real, personal or mixed) by such Person as lessee
that, in accordance with GAAP, 

  

 A - 4 








 
would be required to be classified and accounted for as a capital lease on a balance sheet of such Person. 
  
 “Capital Lease Obligation” means, with respect to any
Capital Lease of any Person, the amount of the obligation of the lessee thereunder that, in accordance with GAAP, would appear on a balance sheet of such lessee in respect of such Capital Lease. 
  
 “Cash Collateral Account” has the meaning ascribed to it
Annex B. 
  
 “Cash Equivalents” has the
meaning ascribed to it in Annex B. 
  
 “Cash
Management Systems” has the meaning ascribed to it in Section 1.8. 
  
 “CHAMPVA Account” means an Account payable pursuant to CHAMPVA. 
  
 “Change of Control” means any of the following: (a) any person or group of persons (within the meaning of the Securities Exchange Act of
1934) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934) of 20% or more of the issued and outstanding shares of capital Stock of
Holdings having the right to vote for the election of directors of Holdings under ordinary circumstances; (b) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted the board of directors
of Holdings (together with any new directors whose election by the board of directors of Holdings or whose nomination for election by the Stockholders of Holdings was approved by a vote of at least two-thirds of the directors then still in office
who either were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a majority of the directors then in office; (c) any
Borrower ceases to own and control all of the economic and voting rights associated with all of the outstanding capital Stock of any of its Subsidiaries, including in the case of Holdings, the failure by Holdings to own and control all of the
economic and voting rights associated with all of the outstanding capital Stock of PSA Georgia. 
  
 “Charges” means all federal, state, county, city, municipal, local, foreign or other governmental taxes (including taxes owed to the PBGC
at the time due and payable), levies, assessments, charges, liens, claims or encumbrances upon or relating to (a) the Collateral, (b) the Obligations, (c) the employees, payroll, income or gross receipts of any Credit Party, (d) any Credit
Party’s ownership or use of any properties or other assets, or (e) any other aspect of any Credit Party’s business. 
  
 “Chattel Paper” means any “chattel paper,” as such term is defined in the Code, including electronic chattel paper, now owned
or hereafter acquired by any Credit Party, wherever located. 
  
 “Closing Date” means January 27, 2004. 
  
 “Closing Checklist” means the schedule, including all appendices, exhibits or schedules thereto, listing certain documents and information to be delivered in connection with 

  

 A - 5 








 
the Agreement, the other Loan Documents and the transactions contemplated thereunder, substantially in the form attached hereto as Annex D.

  
 “CMS” means the Centers for Medicare and
Medicaid Services, formerly known as the Health Care Financing Administration or HCFA. 
  
 “Code” means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of Georgia; provided, that in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Agent’s or any Lender’s Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction
other than the State of Georgia, the term “Code” shall mean the Uniform Commercial Code 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. 
  
 “Collateral” means the property covered by the Security Agreement and the other Collateral Documents and any other property, real or personal, tangible or intangible, now existing or hereafter
acquired, that may at any time be or become subject to a security interest or Lien in favor of Agent, on behalf of itself and Lenders, to secure the Obligations. 
  
 “Collateral Documents” means the Security Agreements, the Pledge Agreements, the Guaranties, the Patent
Security Agreements, the Trademark Security Agreements, the Copyright Security Agreements, the Mortgages, and all similar agreements entered into guaranteeing payment of, or granting a Lien upon property as security for payment of, the Obligations.

  
 “Collateral Reports” means the reports with
respect to the Collateral referred to in Annex F. 
  
 “Collection Account” means that certain account of Agent, account number 50-271-079 in the name of Agent at Bankers Trust Company in New York, New York ABA No. 021 001 033, Account Name: GECC/HH Cash Flow Collections;
Reference: Pediatric Services of America, Inc., or such other account as may be specified in writing by Agent as the “Collection Account.” 
  
 “Commitment Termination Date” means the earliest of (a) October 14, 2007, (b) the date of termination of Lenders’ obligations to
make Advances and to incur Letter of Credit Obligations or permit existing Loans to remain outstanding pursuant to Section 8.2(b), and (c) the date of indefeasible prepayment in full by Borrowers of the Loans and the cancellation and return
(or stand-by guarantee) of all Letters of Credit or the cash collateralization of all Letter of Credit Obligations pursuant to Annex B, and the permanent reduction of the Commitments to zero dollars ($0). 
  
 “Commitments” means (a) as to any Lender, the aggregate of
such Lender’s Revolving Loan Commitment and Acquisition Loan Commitment as set forth on Annex J to the Agreement or in the most recent Assignment Agreement executed by such Lender and (b) as to all Lenders, the aggregate of all
Lenders’ Revolving Loan Commitments and Acquisition Loan Commitments, which aggregate commitment shall be Twenty Million Dollars ($20,000,000) on 

  

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the Closing Date, as to each of clauses (a) and (b), as such Commitments may be reduced, amortized or adjusted from time to time in accordance
with the Agreement. 
  
 “Compliance Certificate”
has the meaning ascribed to it in Annex E. 
  
 “Concentration Account” has the meaning ascribed to it in Annex C. 
  
 “Contracts” means all “contracts,” as such term is defined in the Code, now owned or hereafter acquired by any Credit Party, in
any event, including all contracts, undertakings, or agreements (other than rights evidenced by Chattel Paper, Documents or Instruments) in or under which any Credit Party may now or hereafter have any right, title or interest, including any
agreement relating to the terms of payment or the terms of performance of any Account. 
  
 “Control Letter” means a letter agreement between Agent and (i) the issuer of uncertificated securities with respect to uncertificated securities in the name of any Credit Party, (ii) a securities
intermediary with respect to securities, whether certificated or uncertificated, securities entitlements and other financial assets held in a securities account in the name of any Credit Party, (iii) a futures commission merchant or clearing house,
as applicable, with respect to commodity accounts and commodity contracts held by any Credit Party, whereby, among other things, the issuer, securities intermediary or futures commission merchant disclaims any security interest in the applicable
financial assets, acknowledges the Lien of Agent, on behalf of itself and Lenders, on such financial assets, and agrees to follow the instructions or entitlement orders of Agent without further consent by the affected Credit Party. 
  
 “Copyright License” means any and all rights now owned or
hereafter acquired by any Credit Party under any written agreement granting any right to use any Copyright or Copyright registration. 
  
 “Copyright Security Agreements” means the Copyright Security Agreements made in favor of Agent, on behalf of itself and Lenders, by each
applicable Credit Party. 
  
 “Copyrights” means
all of the following now owned or hereafter adopted or acquired by any Credit Party: (a) all copyrights and General Intangibles of like nature (whether registered or unregistered), all registrations and recordings thereof, and all applications in
connection therewith, including all registrations, recordings and applications in the United States Copyright Office or in any similar office or agency of the United States, any state or territory thereof, or any other country or any political
subdivision thereof, and (b) all reissues, extensions or renewals thereof. 
  
 “Credit and Collection Policies” shall mean the credit, collection, customer relations and service policies of the Borrowing Base Parties in effect on the Closing Date a copy of which has been
furnished to Agent, as the same may from time to time be amended, restated, supplemented or otherwise modified with the written consent of the Agent. 
  
 “Credit Parties” means Borrowers, each Subsidiary Guarantor, and each of their respective Subsidiaries (other than the Insurance
Subsidiary). 
  

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 “Default” means any event that, with the passage of time or notice or both, would,
unless cured or waived, become an Event of Default. 
  
 “Default Rate” has the meaning ascribed to it in Section 1.5(d). 
  
 “Disbursement Accounts” has the meaning ascribed to it in Annex C. 
  
 “Disclosure Schedules” means the Schedules prepared by Borrowers and denominated as Disclosure Schedules
(3.1) through (6.7) in the Index to the Agreement. 
  
 “Documents” means any “documents,” as such term is defined in the Code, now owned or hereafter acquired by any Credit Party, wherever located. 
  
 “Dollars” or “$” means lawful currency of the United States of America. 
  
 “EBITDA” means, with respect to any Person for any fiscal
period, without duplication, an amount equal to (a) consolidated net income of such Person for such period, determined in accordance with GAAP, minus (b) the sum of (i) income tax credits, (ii) interest income, (iii) gain from extraordinary
items for such period, (iv) any aggregate net gain (but not any aggregate net loss) during such period arising from the sale, exchange or other disposition of capital assets by such Person (including any fixed assets, whether tangible or intangible,
all inventory sold in conjunction with the disposition of fixed assets and all securities), and (v) any other non-cash gains that have been added in determining consolidated net income, in each case to the extent included in the calculation of
consolidated net income of such Person for such period in accordance with GAAP, but without duplication, plus (c) the sum of (i) any provision for income taxes, (ii) Interest Expense, (iii) depreciation and amortization for such period, (v)
amortized debt discount for such period, (vi) the amount of any deduction to consolidated net income as the result of any grant to any members of the management of such Person of any Stock, in each case to the extent deducted in the calculation of
consolidated net income of such Person for such period in accordance with GAAP, but without duplication, (vii) all expenses related to the Senior Subordinated Note Redemption Transaction and (viii) cash payments made to executive officers of the
Borrowers in connection with the termination of their employment, provided that (A) such payment is required to be made to such officer in accordance with the terms of a valid, written employment agreement between such Person and such
executive officer and (B) the aggregate amount of all such payments added to consolidated net income pursuant to this clause (viii) in any fiscal period shall be limited to $2,000,000 for purposes of calculating “EBITDA”. 
  
 For purposes of this definition, the following items shall be excluded in
determining consolidated net income of a Person: (1) the income (or deficit) of any other Person accrued prior to the date it became a Subsidiary of, or was merged or consolidated into, such Person or any of such Person’s Subsidiaries, except
as expressly permitted in the immediately succeeding paragraph of this definition; (2) the income (or deficit) of any other Person (other than a Subsidiary) in which such Person has an ownership interest, except to the extent any such income has
actually been received by such Person in the form of cash dividends or distributions; (3) the undistributed earnings of any Subsidiary of such Person to the extent that the declaration or payment of dividends or similar distributions by such
Subsidiary is not at the time permitted 

  

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by the terms of any contractual obligation or requirement of law applicable to such Subsidiary; (4) any write-up of any asset; (5) any net gain from the
collection of the proceeds of life insurance policies; (6) any net gain arising from the acquisition of any securities, or the extinguishment, under GAAP, of any Indebtedness, of such Person, (7) in the case of a successor to such Person by
consolidation or merger or as a transferee of its assets, any earnings of such successor prior to such consolidation, merger or transfer of assets, and (8) any deferred credit representing the excess of equity in any Subsidiary of such Person at the
date of acquisition of such Subsidiary over the cost to such Person of the investment in such Subsidiary. 
  
 For the purposes of calculating EBITDA, the Pro Forma Target EBITDA of any Approved Target shall be included in the EBITDA of Holdings and its
Subsidiaries during any Reference Period ending on or after the date such Approved Target was acquired, provided that the following conditions have been met: 
  
 (i) Borrowers have provided to Agent supporting documentation for all adjustments, including a reconciliation of Pro Forma
Target EBITDA to Cash EBITDA for the Approved Target for the two year period (or such shorter period in Agent’s reasonable credit judgment) immediately preceding the date of such acquisition, which supporting documentation shall be in form and
substance reasonably satisfactory to Agent; 
  
 (ii) if the Pro
Forma Target EBITDA of the Approved Target is greater than Unadjusted EBITDA of the Approved Target, then the Agent shall have the right, prior to the inclusion of any such Pro Forma Target EBITDA in the EBITDA of Holdings and its Subsidiaries, to
audit (at Borrowers’ expense) the Pro Forma Target EBITDA and the results of any such audit must be satisfactory to Agent in its reasonable credit judgment; and 
  
 (iii) in the case of any Material Acquisition, Borrowers agree to engage (at Borrowers’ expense) a “big four”
independent certified public accounting firm or another transaction service advisor approved by Agent (with such approval not to be unreasonably withheld), to verify, using agreed upon due diligence procedures, the Approved Target’s historical
operating results for a minimum of two years prior to the acquisition date (or such shorter period in Agent’s reasonable credit judgment), including, without limitation, such Approved Target’s EBITDA for such period. 
  
 The audit rights of Agent (at Borrowers’ expense) provided for in this definition are in
addition to, and not in limitation of, any other rights that Agent has in the Agreement to conduct audits at Borrowers’ expense. 
  
 As used in this definition, the following terms have the following meanings: 
  
 “Approved Target” means any Target acquired in connection with a Permitted Acquisition, where the
purchase price for such acquisition is funded solely from the proceeds of an Acquisition Loan. 
  
 “Cash EBITDA” means, with respect to any Approved Target during any period, the cash flow from operations of such Approved
Target during such period, plus the sum of (i) cash Interest Expense paid by such Approved Target 

  

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during such period, and (ii) income taxes of such Approved Target paid in cash during such period, in each case determined in accordance with GAAP.

  
 “Material Acquisition” means the
acquisition of any Target that involves the payment of consideration by any Borrower and/or any of its Subsidiaries in excess of $4,000,000. 
  
 “Pro Forma Target EBITDA” means, with respect to any Approved Target during any period, the EBITDA of such Approved Target for
such period, provided that such EBITDA has been agreed to and certified by Holdings Board of Directors prior to the inclusion of such EBITDA in the consolidated EBITDA of Holdings and its Subsidiaries. 
  
 “Reference Period” means any period of twelve
consecutive months. 
  
 “Unadjusted
EBITDA” means, with respect to any Approved Target for any period, without duplication, an amount equal to consolidated net income of such Person for such period, determined in accordance with GAAP, plus the sum of (i) any provision for
income taxes during such period, (ii) Interest Expense for such period, (iii) the amount of depreciation and amortization for such period, in each case to the extent deducted in the calculation of consolidated net income of such Person for such
period in accordance with GAAP. 
  
 “Eligible
Accounts” has the meaning ascribed to it in Section 1.6 of the Agreement. 
  
 “Eligible Unbilled Account” means an Account with respect to which an invoice with respect to such Account, reasonably acceptable to Agent in form and substance, has not been sent to the applicable
Account Debtor, provided that such Account shall cease to constitute an Eligible Unbilled Account if an invoice with respect to such Account, reasonably acceptable to Agent in form and substance, has not been sent to the applicable Account Debtor
within 30 days following the original service date for such Account. 
  
 “Environmental Laws” means all applicable federal, state, local and foreign laws, statutes, ordinances, codes, rules, standards and regulations, now or hereafter in effect, and any applicable judicial or administrative
interpretation thereof, including any applicable judicial or administrative order, consent decree, order or judgment, imposing liability or standards of conduct for or relating to the regulation and protection of human health, safety, the
environment and natural resources (including ambient air, surface water, groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic species and vegetation). Environmental Laws include the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. §§ 9601 et seq.) (“CERCLA”); the Hazardous Materials Transportation Authorization Act of 1994 (49 U.S.C. §§ 5101 et seq.); the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. §§ 136 et seq.); the Solid Waste Disposal Act (42 U.S.C. §§ 6901 et seq.); the Toxic Substance Control Act (15 U.S.C. §§ 2601 et seq.); the Clean Air Act (42
U.S.C. §§ 7401 et seq.); the Federal Water Pollution Control Act (33 U.S.C. §§ 1251 et seq.); the Occupational Safety and Health Act (29 U.S.C. §§ 651 et seq.); and the Safe Drinking Water Act (42
U.S.C. 

  

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§§ 300(f) et seq.), and any and all regulations promulgated thereunder, and all analogous state, local and foreign counterparts or
equivalents and any transfer of ownership notification or approval statutes. 
  
 “Environmental Liabilities” means, with respect to any Person, all liabilities, obligations, responsibilities, response, remedial and removal costs, investigation and feasibility study costs, capital
costs, operation and maintenance costs, losses, damages, punitive damages, property damages, natural resource damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel,
experts and consultants), fines, penalties, sanctions and interest incurred as a result of or related to any claim, suit, action, investigation, proceeding or demand by any Person, whether based in contract, tort, implied or express warranty, strict
liability, criminal or civil statute or common law, including any arising under or related to any Environmental Laws, Environmental Permits, or in connection with any Release or threatened Release or presence of a Hazardous Material whether on, at,
in, under, from or about or in the vicinity of any real or personal property. 
  
 “Environmental Permits” means all permits, licenses, authorizations, certificates, approvals or registrations required by any Governmental Authority under any Environmental Laws. 
  
 “Equipment” means all “equipment,” as such term is
defined in the Code, now owned or hereafter acquired by any Credit Party, wherever located and, in any event, including all such Credit Party’s machinery and equipment, including processing equipment, conveyors, machine tools, data processing
and computer equipment, including embedded software and peripheral equipment and all engineering, processing and manufacturing equipment, office machinery, furniture, materials handling equipment, tools, attachments, accessories, automotive
equipment, trailers, trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock and other equipment of every kind and nature, trade fixtures and fixtures not forming a part of real property, together with all additions and accessions
thereto, replacements therefor, all parts therefor, all substitutes for any of the foregoing, fuel therefor, and all manuals, drawings, instructions, warranties and rights with respect thereto, and all products and proceeds thereof and condemnation
awards and insurance proceeds with respect thereto. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any regulations promulgated thereunder. 
  
 “ERISA Affiliate” means, with respect to any Credit Party, any trade or business (whether or not
incorporated) that, together with such Credit Party, are treated as a single employer within the meaning of Sections 414(b), (c), (m) or (o) of the IRC. 
  
 “ERISA Event” means, with respect to any Credit Party or any ERISA Affiliate, (a) any event described in Section 4043(c) of ERISA with
respect to a Title IV Plan; (b) the withdrawal of any Credit Party or ERISA Affiliate from a Title IV Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (c) the
complete or partial withdrawal of any Credit Party or any ERISA Affiliate from any Multiemployer Plan; (d) the filing of a notice of intent to terminate a Title IV Plan or the treatment of a plan amendment as a termination under Section 4041 of
ERISA; (e) 

  

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the institution of proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC; (f) the failure by any Credit Party or ERISA Affiliate to make
when due required contributions to a Multiemployer Plan or Title IV Plan unless such failure is cured within 30 days; (g) any other event or condition that might reasonably be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or for the imposition of liability under Section 4069 or 4212(c) of ERISA; (h) the termination of a Multiemployer Plan under Section 4041A of
ERISA or the reorganization or insolvency of a Multiemployer Plan under Section 4241 or 4245 of ERISA; or (i) the loss of a Qualified Plan’s qualification or tax exempt status; or (j) the termination of a Plan described in Section 4064 of
ERISA. 
  
 “ESOP” means a Plan that is intended
to satisfy the requirements of Section 4975(e)(7) of the IRC. 
  
 “Event of Default” has the meaning ascribed to it in Section 8.1. 
  
 “Excess Availability” means, at any time of determination, an amount equal to the sum of at such time Revolving Loan Borrowing
Availability plus Unrestricted Cash Balances. 
  
 “Excluded Real Property” means that certain Real Estate owned by Borrowers and located at 6861 West Park Avenue, Houma, Louisiana 70364-2264. 
  
 “Fair Labor Standards Act” means the Fair Labor Standards Act, 29 U.S.C. §201 et seq. 
  
 “Fair Salable Balance Sheet” means a balance sheet of
Borrowers prepared in accordance with Section 3.4(d). 
  
 “Federal Funds Rate” means, for any day, a floating rate equal to the weighted average of the rates on overnight federal funds transactions among members of the Federal Reserve System, as determined by Agent in its sole
discretion, which determination shall be final, binding and conclusive (absent manifest error). 
  
 “Federal Reserve Board” means the Board of Governors of the Federal Reserve System. 
  
 “Fees” means any and all fees payable to Agent or any Lender
pursuant to the Agreement or any of the other Loan Documents. 
  
 “Financial Covenants” means the financial covenants set forth in Annex G. 
  
 “Financial Statements” means the consolidated and consolidating income statements, statements of cash flows and balance sheets of
Borrowers delivered in accordance with Section 3.4 and Annex E. 
  
 “Fiscal Month” means any of the monthly accounting periods of Borrowers. 
  

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 “Fiscal Quarter” means any of the quarterly accounting periods of Borrowers, ending on
December 31, March 31, June 30 and September 30 of each year. 
  
 “Fiscal Year” means any of the annual accounting periods of Borrowers ending on September 30 of each year. 
  
 “Fixed Charges” means, with respect to any Person for any fiscal period, (a) the aggregate of all cash Interest Expense paid during such
period, plus (b) scheduled payments of principal with respect to Indebtedness during such period, plus (c) Capital Expenditures during such period. 
  
 “Fixed Charge Coverage Ratio” means, with respect to any Person for any fiscal period, the ratio of (a) the EBITDA for Holdings and its
Subsidiaries for such period minus (i) the Capital Expenditures of Holdings and its Subsidiaries (other than payments on Capital Leases) paid during such period, all as determined on a consolidated basis in accordance with GAAP, minus (ii) cash
taxes of Holdings and its Subsidiaries paid during such period, to (b) Fixed Charges. In computing Fixed Charges for any fiscal period, interest and principal payments that are due within one week after the end of that fiscal period, without
duplication, shall be deemed to have been paid on the last day of that fiscal period. 
  
 “Fixtures” means all “fixtures” as such term is defined in the Code, now owned or hereafter acquired by any Credit Party. 
  
 “Funded Debt” means, with respect to any Person, without duplication, all Indebtedness for borrowed money
evidenced by notes, bonds, debentures, or similar evidences of Indebtedness and that by its terms matures more than one year from, or is directly or indirectly renewable or extendible at such Person’s option under a revolving credit or similar
agreement obligating the lender or lenders to extend credit over a period of more than one year from the date of creation thereof, and specifically including Capital Lease Obligations, current maturities of long-term debt, revolving credit and
short-term debt extendible beyond one year at the option of the debtor, and also including, in the case of Borrowers, the Obligations and, without duplication, Guaranteed Indebtedness consisting of guaranties of Funded Debt of other Persons.

  
 “GAAP” means generally accepted accounting
principles in the United States of America, consistently applied, as such term is further defined in Annex G to the Agreement. 
  
 “GE Capital” means General Electric Capital Corporation, a Delaware corporation. 
  
 “GE Capital Commitment Letter” has the meaning ascribed to
such term in Section 1.9(a). 
  
 “General
Intangibles” means “general intangibles,” as such term is defined in the Code, now owned or hereafter acquired by any Credit Party, including all right, title and interest that such Credit Party may now or hereafter have in or
under any Contract, all payment intangibles, customer lists, Licenses, Copyrights, Trademarks, Patents, and all applications therefor and reissues, extensions or renewals thereof, rights in Intellectual Property, interests in partnerships, joint
ventures and other business associations, licenses, permits, copyrights, trade 

  

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secrets, proprietary or confidential information, inventions (whether or not patented or patentable), technical information, procedures, designs, knowledge,
know-how, software, data bases, data, skill, expertise, experience, processes, models, drawings, materials and records, goodwill (including the goodwill associated with any Trademark or Trademark License), all rights and claims in or under insurance
policies (including insurance for fire, damage, loss and casualty, whether covering personal property, real property, tangible rights or intangible rights, all liability, life, key man and business interruption insurance, and all unearned premiums),
uncertificated securities, choses in action, deposit, checking and other bank accounts, rights to receive tax refunds and other payments, rights to receive dividends, distributions, cash, Instruments and other property in respect of or in exchange
for pledged Stock and Investment Property, rights of indemnification, all books and records, correspondence, credit files, invoices and other papers, including without limitation all tapes, cards, computer runs and other papers and documents in the
possession or under the control of such Credit Party or any computer bureau or service company from time to time acting for such Credit Party. 
  
 “Goods” means any “goods” as defined in the Code, now owned or hereafter acquired by any Credit Party, including embedded
software. 
  
 “Government Accounts” shall mean
collectively, any and all Accounts which are (a) Medicare Accounts, (b) Medicaid Accounts, (c) TRICARE Accounts, (d) CHAMPVA Accounts, or (e) any other Accounts payable by a governmental authority approved by the Agent. 
  
 “Governmental Authority” means any nation or government, any
state or other political subdivision thereof, and any agency, department or other entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 “Governmental Third Party Payor” shall mean any governmental
entity, insurance company, health maintenance organization, professional provider organization or similar entity that is obligated to make payments under Medicare or Medicaid. 
  
 “Guaranteed Indebtedness” means, as to any Person, any obligation of such Person guaranteeing, providing
comfort or otherwise supporting any Indebtedness, lease, dividend, or other obligation (“primary obligation”) of any other Person (the “primary obligor”) in any manner, including any obligation or arrangement of
such Person to (a) purchase or repurchase any such primary obligation, (b) advance or supply funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency or any balance sheet condition of the primary obligor, (c) 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, (d) protect the beneficiary of such arrangement from loss (other than product warranties given in the ordinary course of business) or (e) indemnify the owner of such primary obligation
against loss in respect thereof. The amount of any Guaranteed Indebtedness at any time shall be deemed to be an amount equal to the lesser at such time of (x) the stated or determinable amount of the primary obligation in respect of which such
Guaranteed Indebtedness is incurred and (y) the maximum amount for which such Person may be liable pursuant to the terms of the instrument embodying such Guaranteed 

  

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Indebtedness, or, if not stated or determinable, the maximum reasonably anticipated liability (assuming full performance) in respect thereof. 
  
 “Guaranties” means, collectively, each Subsidiary Guaranty
and any other guaranty executed by any Guarantor in favor of Agent and Lenders in respect of the Obligations. 
  
 “Guarantors” means each Subsidiary Guarantor and each other Person, if any, that executes a guaranty or other similar agreement in favor
of Agent, for itself and the ratable benefit of Lenders, in connection with the transactions contemplated by the Agreement and the other Loan Documents. 
  
 “Hazardous Material” means any substance, material or waste that is regulated by, or forms the basis of liability now or hereafter under,
any Environmental Laws, including any material or substance that is (a) defined as a “solid waste,” “hazardous waste,” “hazardous material,” “hazardous substance,” “extremely hazardous waste,”
“restricted hazardous waste,” “pollutant,” “contaminant,” “hazardous constituent,” “special waste,” “toxic substance” or other similar term or phrase under any Environmental Laws, or (b)
petroleum or any fraction or by-product thereof, asbestos, asbestos-containing materials, lead based paint, polychlorinated biphenyls (PCB’s), or any radioactive substance. 
  
 “Healthcare Laws” means, collectively, any and all federal, state or local laws, rules, regulations and
administrative manuals, orders, guidelines and requirements issued under or in connection with Medicare, Medicaid CHAMPVA, TRICARE or any government payment program or any law governing the licensure of or regulating healthcare providers,
professionals, facilities or payors or otherwise governing or regulating the provision of, or payment for, Medical Services, or the sale of medical supplies. Without limiting the generality of the foregoing, Healthcare Laws include, without
limitation, Section 1128B(b) of the Social Security Act, as amended, 42 U.S.C. Section 1320a-7(b) (Criminal Penalties Involving Medicare or State Health Care Programs), commonly referred to as the “Federal Anti-Kickback Statute,” and the
Social Security Act, as amended, and Section 1877, 42 U.S.C Section 1395nn (Prohibition Against Certain Referrals), commonly referred to as “Stark Statute”. 
  
 “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended from time to
time, and any rules or regulations promulgated from time to time thereunder. 
  
 “HIPAA Business Associate Agreement” means, collectively, one or more Business Associate Agreements in form and substance satisfactory to Agent, between Agent and one or more Credit Parties, as
amended, restated, supplemented or otherwise modified from time to time. 
  
 “Holdings” has the meaning ascribed thereto in the preamble to the Agreement. 
  
 “Indebtedness” means, with respect to any Person, without duplication (a) all indebtedness of such Person for borrowed money or for the
deferred purchase price of property payment for which is deferred 6 months or more, but excluding obligations to trade creditors incurred in the ordinary course of business that are unsecured and not overdue by more than 6 months unless being
contested in good faith, (b) all reimbursement and other obligations with 

  

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respect to letters of credit, bankers’ acceptances and surety bonds, whether or not matured, (c) all obligations evidenced by notes, bonds, debentures
or similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such property), (e) all Capital Lease Obligations and the present value (discounted at the Index Rate as in effect on the Closing Date) of future rental payments under all
synthetic leases, (f) all obligations of such Person under commodity purchase or option agreements or other commodity price hedging arrangements, in each case whether contingent or matured, (g) all obligations of such Person under any foreign
exchange contract, currency swap agreement, interest rate swap, cap or collar agreement or other similar agreement or arrangement designed to alter the risks of that Person arising from fluctuations in currency values or interest rates, in each case
whether contingent or matured, (h) all Indebtedness referred to above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property or other assets (including
accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness, (i) all “earnouts” and similar payment obligations of such Person to the extent reflected as
a liability on the balance sheet of such Person, and (j) the Obligations. The term “Indebtedness” shall not include any current or non-current liabilities representing claim reserves under any insurance program of any Credit Party.

  
 “Indemnified Liabilities” has the meaning
ascribed to it in Section 1.13. 
  
 “Indemnified
Person” has the meaning ascribed to it in Section 1.13. 
  
 “Indenture Trustee” means SunTrust Bank, Atlanta, as trustee under the Senior Subordinated Indenture, together with its successors and assigns in such capacity. 
  
 “Index Rate” means, for any day, a floating rate equal to the higher of (i) the rate publicly quoted from
time to time by The Wall Street Journal as the “base rate on corporate loans posted by at least 75% of the nation’s 30 largest banks” (or, if The Wall Street Journal ceases quoting a base rate of the type described, the
highest per annum rate of interest published by the Federal Reserve Board in Federal Reserve statistical release H.15 (519) entitled “Selected Interest Rates” as the Bank prime loan rate or its equivalent), and (ii) the Federal Funds Rate
plus 50 basis points per annum. Each change in any interest rate provided for in the Agreement based upon the Index Rate shall take effect at the time of such change in the Index Rate. 
  
 “Index Rate Loan” means a Loan or portion thereof bearing interest by reference to the Index Rate.

  
 “Instruments” means all
“instruments,” as such term is defined in the Code, now owned or hereafter acquired by any Credit Party, wherever located, and, in any event, including all certificated securities, all certificates of deposit, and all notes and other,
without limitation, evidences of indebtedness, other than instruments that constitute, or are a part of a group of writings that constitute, Chattel Paper. 
  

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 “Insurance Subsidiary” means a Subsidiary of a Borrower formed for the purpose of acting
as a captive insurance company pursuant to the terms of an Approved Insurance Plan. 
  
 “Insurer” means a Person that insures a Patient against certain of the costs incurred in the receipt by such Patient of medical services, or that has an agreement with a Credit Party to compensate
such Credit Party for providing goods or services to a Patient. 
  
 “Intellectual Property” means any and all Licenses, Patents, Copyrights, Trademarks, and the goodwill associated with such Trademarks. 
  

“Intercompany Notes” has the meaning ascribed to it in Section 6.3. 
  
 “Interest Expense” means, with respect to any Person for any
fiscal period, interest expense (whether cash or non-cash) of such Person determined in accordance with GAAP for the relevant period ended on such date, including interest expense with respect to any Funded Debt of such Person and interest expense
for the relevant period that has been capitalized on the balance sheet of such Person. 
  
 “Interest Payment Date” means (a) as to any Index Rate Loan, the first Business Day of each month to occur while such Loan is outstanding, and (b) as to any LIBOR Loan, the last day of the applicable
LIBOR Period provided that, in addition to the foregoing, each of (x) the date upon which all of the Commitments have been terminated and the Loans have been paid in full and (y) the Commitment Termination Date shall be deemed to be an
“Interest Payment Date” with respect to any interest that has then accrued under the Agreement. 
  
 “Inventory” means any “inventory”, as such term is defined in the Code, now owned or hereafter acquired by any Credit Party,
wherever located, and in any event including inventory, merchandise, goods and other personal property that are held by or on behalf of any Credit Party for sale or lease or are furnished or are to be furnished under a contract of service, or that
constitute raw materials, work in process, finished goods, returned goods, supplies or materials of any kind, nature or description used or consumed or to be used or consumed in such Credit Party’s business or in the processing, production,
packaging, promotion, delivery or shipping of the same, including other supplies and embedded software. 
  
 “Investment Property” means all “investment property” as such term is defined in the Code now owned or hereafter acquired by
any Credit Party, wherever located, including (i) all securities, whether certificated or uncertificated, including stocks, bonds, interests in limited liability companies, partnership interests, treasuries, certificates of deposit, and mutual fund
shares; (ii) all securities entitlements of any Credit Party, including the rights of such Credit Party to any securities account and the financial assets held by a securities intermediary in such securities account and any free credit balance or
other money owing by any securities intermediary with respect to that account; (iii) all securities accounts of any Credit Party; (iv) all commodity contracts of any Credit Party; and (v) all commodity accounts held by any Credit Party. 

 
 “IRC” means the Internal Revenue Code of 1986, as
amended, and all regulations promulgated thereunder. 
  

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 “IRS” means the Internal Revenue Service. 
  
 “Landlord Agreement” means an agreement substantially in the
form of Exhibit 5.9 attached to the Agreement. 
  
 “L/C Issuer” has the meaning ascribed to it in Annex B. 
  
 “L/C Sublimit” has the meaning ascribed to in it Annex B. 
  
 “Lease Expenses” means, with respect to any Person for any fiscal period, the aggregate rental obligations of such Person determined in
accordance with GAAP which are payable in respect of such period under leases of real or personal property (net of income from subleases thereof, but including taxes, insurance, maintenance and similar expenses that the lessee is obligated to pay
under the terms of such leases), whether or not such obligations are reflected as liabilities or commitments on a consolidated balance sheet of such Person or in the notes thereto, excluding, however, any such obligations under Capital Leases.

  
 “Lenders” means GE Capital, the other Lenders
named on the signature pages of the Agreement, and, if any such Lender shall decide to assign all or any portion of the Obligations, such term shall include any assignee of such Lender. 
  
 “Letter of Credit Fee” has the meaning ascribed to it in Annex B. 
  
 “Letter of Credit Obligations” means all outstanding
obligations incurred by Agent and Lenders at the request of Borrower Representative, whether direct or indirect, contingent or otherwise, due or not due, in connection with the issuance of Letters of Credit by Agent or another L/C Issuer or the
purchase of a participation as set forth in Annex B with respect to any Letter of Credit. The amount of such Letter of Credit Obligations shall equal the maximum amount that may be payable by Agent or Lenders thereupon or pursuant thereto.

  
 “Letters of Credit” means documentary or
standby letters of credit issued for the account of Borrowers by any L/C Issuer, and bankers’ acceptances issued by Borrowers, for which Agent and Lenders have incurred Letter of Credit Obligations. 
  
 “Leverage Ratio” means, with respect to Holdings and its
Subsidiaries, on a consolidated basis for any fiscal period, the ratio of (a) Funded Debt for Holdings and its Subsidiaries as of the last day of such period, to (b) the sum of EBITDA for Holdings and its Subsidiaries for the twelve months ending on
that date of determination. 
  
 “LIBOR Business
Day” means a Business Day on which banks in the City of London are generally open for interbank or foreign exchange transactions. 
  
 “LIBOR Loan” means a Loan or any portion thereof bearing interest by reference to the LIBOR Rate. 
  
 “LIBOR Period” means, with respect to any LIBOR Loan, each
period commencing on a LIBOR Business Day selected by Borrower Representative pursuant to the Agreement and ending one, two or three months thereafter, as selected by Borrower 

  

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Representative’s irrevocable notice to Agent as set forth in Section 1.5(e); provided, that the foregoing provision relating to LIBOR
Periods is subject to the following: 
  
 (a) if
any LIBOR Period would otherwise end on a day that is not a LIBOR Business Day, such LIBOR Period shall be extended to the next succeeding LIBOR Business Day unless the result of such extension would be to carry such LIBOR Period into another
calendar month in which event such LIBOR Period shall end on the immediately preceding LIBOR Business Day; 
  
 (b) any LIBOR Period that would otherwise extend beyond the Commitment Termination Date shall end 2 LIBOR Business Days prior to such
date; 
  
 (c) any LIBOR Period that begins on the
last LIBOR 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 LIBOR Period) shall end on the last LIBOR Business Day of a calendar month; 
  
 (d) Borrower Representative shall select LIBOR Periods so as
not to require a payment or prepayment of any LIBOR Loan during a LIBOR Period for such Loan; and 
  
 (e) Borrower Representative shall select LIBOR Periods so that there shall be no more than 5 separate LIBOR Loans in existence at any one
time. 
  
 “LIBOR Rate” means for each LIBOR
Period, a rate of interest determined by Agent equal to: 
  
 (a) the offered rate for deposits in United States Dollars for the applicable LIBOR Period that appears on Telerate Page 3750 as of 11:00 a.m. (London time), on the second full LIBOR Business Day next preceding the
first day of such LIBOR Period (unless such date is not a Business Day, in which event the next succeeding Business Day will be used); divided by 
  
 (b) a number equal to 1.0 minus the aggregate (but without duplication) of the rates (expressed as a decimal fraction) of reserve
requirements in effect on the day that is 2 LIBOR Business Days prior to the beginning of such LIBOR Period (including basic, supplemental, marginal and emergency reserves under any regulations of the Federal Reserve Board or other Governmental
Authority having jurisdiction with respect thereto, as now and from time to time in effect) for Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Federal Reserve Board that are required to be
maintained by a member bank of the Federal Reserve System. 
  
 If such interest rates shall cease to be available from Telerate News Service, the LIBOR Rate shall be determined from such financial reporting service or other information as shall be mutually acceptable to Agent and
Borrower Representative. 
  
 “License” means any
Copyright License, Patent License, Trademark License or other license of rights or interests now held or hereafter acquired by any Credit Party. 
  

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 “Lien” means any mortgage or deed of trust, pledge, hypothecation, assignment, deposit
arrangement, lien, charge, claim, security interest, easement or encumbrance, or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any lease or title retention agreement, any
financing lease having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement perfecting a security interest under the Code or comparable law of any jurisdiction). 

 
 “Litigation” has the meaning ascribed to it in Section
3.13. 
  
 “Loan Account” has the meaning
ascribed to it in Section 1.12. 
  
 “Loan
Documents” means the Agreement, the Notes, the Collateral Documents, the master standby agreement relating to the issuance of standby Letters of Credit, the master documentary agreement relating to the issuance of documentary Letters of
Credit, the Guaranties, the HIPAA Business Associate Agreements, the GE Capital Commitment Letter (solely as it relates to obligations of any Borrower to pay Fees to Agent and Lenders) and all other agreements, instruments, documents and
certificates identified in the Closing Checklist executed and delivered to, or in favor of, Agent or any Lenders and including all other pledges, powers of attorney, consents, assignments, contracts, notices, and all other written matter whether
heretofore, now or hereafter executed by or on behalf of any Credit Party, or any employee of any Credit Party, and delivered to Agent or any Lender in connection with the Agreement or the transactions contemplated thereby. Any reference in the
Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to the Agreement or such Loan Document
as the same may be in effect at any and all times such reference becomes operative. 
  
 “Loans” means the Revolving Loan and the Acquisition Loan. 
  
 “Lock Boxes” has the meaning ascribed to it in Annex C. 
  
 “Margin Stock” has the meaning ascribed to it in Section 3.10. 
  
 “Master Documentary Agreement” means the Master Agreement
for Documentary Letters of Credit dated as of the Closing Date between Borrowers, as Applicant, and GE Capital, as Issuer.  
  
 “Master Standby Agreement” means the Master Agreement for Standby Letters of Credit dated as of the Closing Date between Borrowers, as
Applicant, and GE Capital, as Issuer. 
  
 “Material
Adverse Effect” means a material adverse effect on (a) the business, assets, operations, prospects or financial or other condition of the Credit Parties, taken as a whole, (b) any Borrower’s ability to pay any of the Loans or any of
the other Obligations in accordance with the terms of the Agreement, or the ability of any Borrower or any other Credit Party to perform its obligations under the Loan Documents to which it is a party, as applicable, (c) the Collateral or
Agent’s Liens, on behalf of itself and Lenders, on the Collateral or the priority of such Liens, or (d) Agent’s or any Lender’s rights and remedies under the Agreement 

  

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and the other Loan Documents. Without limiting the generality of the foregoing, any event or occurrence adverse to one or more Credit Parties which results
or could reasonably be expected to result in costs and/or liabilities or loss of revenues, individually, or in the aggregate, to any Credit Party in any 30-day period in excess of the 10% of the lesser of (i) the Maximum Revolver Amount plus the
Maximum Acquisition Loan Amount, or (ii) the Borrowing Base at any date of determination shall constitute a Material Adverse Effect. 
  
 “Maximum Acquisition Loan Amount” means, as of any date of determination, an amount equal to the Acquisition Loan Commitment of all
Lenders as of that date. 
  
 “Maximum Revolver
Amount” means, as of any date of determination, an amount equal to the Revolving Loan Commitment of all Lenders as of that date. 
  
 “Medicaid” means, 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. 
  
 “Medicaid Account” means an Account payable pursuant to a Medicaid Provider Agreement. 
  
 “Medicaid Certification” means certification of a facility by CMS or a state agency or entity under contract with CMS that such
healthcare facility fully complies with all the conditions of Medicaid. 
  
 “Medicaid Provider Agreement” means an agreement entered into between a state agency or other entity administering Medicaid in such state and a health care facility or physician under which the health care facility or
physician agrees to provide services or merchandise for Medicaid patients. 
  
 “Medicare” means, 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” means an Account payable
pursuant to a Medicare Provider Agreement. 
  
 “Medicare
Certification” means certification of a facility by CMS or a state agency or entity under contract with CMS that such healthcare facility fully complies with all conditions for such facility’s participation in Medicare. 
  
 “Medicare Provider Agreement” means an agreement entered
into between a state agency or other entity administering Medicare in such state and a health care facility or physician under which the health care facility or physician agrees to provide services or merchandise for Medicare patients. 

 

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 “Mortgaged Properties” has the meaning assigned to it in Annex D. 
  
 “Mortgages” means each of the mortgages, deeds of trust,
leasehold mortgages, leasehold deeds of trust, collateral assignments of leases or other real estate security documents delivered by any Credit Party to Agent on behalf of itself and Lenders with respect to the Mortgaged Properties, all in form and
substance reasonably satisfactory to Agent. 
  
 “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA, and to which any Credit Party or ERISA Affiliate is making, is obligated to make or has made or been obligated to make,
contributions on behalf of participants who are or were employed by any of them. 
  
 “Net Worth” means, with respect to any Person as of any date of determination, the book value of the assets of such Person, minus the sum of (a) reserves applicable thereto, and (b) all of such
Person’s liabilities on a consolidated basis (including accrued and deferred income taxes), all as determined in accordance with GAAP. 
  
 “Non-Funding Lender” has the meaning ascribed to it in Section 9.9(a)(ii). 
  
 “Notes” means, collectively, the Revolving Notes and the
Acquisition Notes. 
  
 “Notice of Acquisition Loan
Advance” has the meaning ascribed to it in Section 1.1(b)(ii). 
  
 “Notice of Conversion/Continuation” has the meaning ascribed to it in Section 1.5(e). 
  
 “Notice of Revolving Credit Advance” has the meaning ascribed to it in Section 1.1(a). 
  
 “Obligations” means all loans, advances, debts, liabilities
and obligations, for the performance of covenants, tasks or duties or for payment of monetary amounts (whether or not such performance is then required or contingent, or such amounts are liquidated or determinable) owing by any Credit Party to Agent
or any Lender, and all covenants and duties regarding such amounts, of any kind or nature, present or future, whether or not evidenced by any note, agreement or other instrument, arising under the Agreement or any of the other Loan Documents. This
term includes all principal, interest (including all interest that accrues after the commencement of any case or proceeding by or against any Credit Party in bankruptcy, whether or not allowed in such case or proceeding), Fees, Charges, expenses,
attorneys’ fees and any other sum chargeable to any Credit Party under the Agreement or any of the other Loan Documents. 
  
 “Patent License” means rights under any written agreement now owned or hereafter acquired by any Credit Party granting any right with
respect to any invention on which a Patent is in existence. 
  
 “Patent Security Agreements” means the Patent Security Agreements made in favor of Agent, on behalf of itself and Lenders, by each applicable Credit Party. 
  

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 “Patents” means all of the following in which any Credit Party now holds or hereafter
acquires any interest: (a) all letters patent of the United States or any other country, all registrations and recordings thereof, and all applications for letters patent of the United States or of any other country, including registrations,
recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State or any other country, and (b) all reissues, continuations, continuations-in-part or extensions thereof.

  
 “Patient” means any Person receiving medical
services from any Credit Party and all Persons legally liable to pay such Credit Party for such medical services other than Insurers or Governmental Authorities. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation. 
  
 “Pension Plan” means a Plan described in Section 3(2) of
ERISA. 
  
 “Permitted Acquisition” has the
meaning ascribed to it in Section 6.1. 
  
 “Permitted Encumbrances” means the following encumbrances: (a) Liens for taxes or assessments or other governmental Charges not yet due and payable or which are being contested in accordance with Section 5.2(b); (b)
pledges or deposits of money securing statutory obligations under workmen’s compensation, unemployment insurance, social security or public liability laws or similar legislation (excluding Liens under ERISA); (c) pledges or deposits of money
securing bids, tenders, contracts (other than contracts for the payment of money) or leases to which any Credit Party is a party as lessee made in the ordinary course of business; (d) inchoate and unperfected workers’, mechanics’ or
similar liens arising in the ordinary course of business, so long as such Liens attach only to Equipment, Fixtures and/or Real Estate; (e) carriers’, warehousemen’s, suppliers’ or other similar possessory liens arising in the ordinary
course of business and securing liabilities in an outstanding aggregate amount not in excess of $100,000 at any time, so long as such Liens attach only to Inventory; (f) deposits securing, or in lieu of, surety, appeal or customs bonds in
proceedings to which any Credit Party is a party; (g) any attachment or judgment lien not constituting an Event of Default under Section 8.1(j); (h) zoning restrictions, easements, licenses, or other restrictions on the use of any Real Estate
or other minor irregularities in title (including leasehold title) thereto, so long as the same do not materially impair the use, value, or marketability of such Real Estate; (i) presently existing or hereafter created Liens in favor of Agent, on
behalf of Lenders; and (j) Liens expressly permitted under clauses (b) and (c) of Section 6.7 of the Agreement. 
  
 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association,
corporation, limited liability company, institution, public benefit corporation, other entity or government (whether federal, state, county, city, municipal, local, foreign, or otherwise, including any instrumentality, division, agency, body or
department thereof). 
  
 “Plan” means, at any
time, an “employee benefit plan,” as defined in Section 3(3) of ERISA, that any Credit Party or ERISA Affiliate maintains, contributes to or has an obligation to contribute to on behalf of participants who are or were employed by any
Credit Party. 
  

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 “Pledge Agreements” means the Borrower Pledge Agreement and the Subsidiary Pledge
Agreement, and any other pledge agreement entered into after the Closing Date by any Credit Party (as required by the Agreement or any other Loan Document). 
  
 “Proceeds” means “proceeds,” as such term is defined in the Code, including (a) any and all proceeds of any insurance,
indemnity, warranty or guaranty payable to any Credit Party from time to time with respect to any of the Collateral, (b) any and all payments (in any form whatsoever) made or due and payable to any Credit Party from time to time in connection with
any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental Authority (or any Person acting under color of governmental authority), (c) any claim of any Credit Party against third
parties (i) for past, present or future infringement of any Patent or Patent License, or (ii) for past, present or future infringement or dilution of any Copyright, Copyright License, Trademark or Trademark License, or for injury to the goodwill
associated with any Trademark or Trademark License, (d) any recoveries by any Credit Party against third parties with respect to any litigation or dispute concerning any of the Collateral, (e) dividends, interest, distributions and Instruments with
respect to Investment Property and pledged Stock, and (f) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral, upon disposition or otherwise. 
  
 “Projections” means Borrowers’ forecasted consolidated
and consolidating: (a) balance sheets; (b) profit and loss statements; (c) cash flow statements; and (d) capitalization statements, all prepared on a Subsidiary by Subsidiary or division-by-division basis, if applicable, and otherwise consistent
with the historical Financial Statements of Borrowers, together with appropriate supporting details and a statement of underlying assumptions. 
  
 “Pro Rata Share” means with respect to all matters relating to any Lender (a) with respect to the Revolving Loan, the percentage obtained
by dividing (i) the Revolving Loan Commitment of that Lender by (ii) the aggregate Revolving Loan Commitments of all Lenders, (b) with respect to the Acquisition Loan, the percentage obtained by dividing (i) the Acquisition Loan Commitment of that
Lender by (ii) the aggregate Acquisition Loan Commitments of all Lenders, as any such percentages may be adjusted by assignments permitted pursuant to Section 9.1, (c) with respect to all Loans, the percentage obtained by dividing (i) the
aggregate Commitments of that Lender by (ii) the aggregate Commitments of all Lenders, and (d) with respect to all Loans on and after the Commitment Termination Date, the percentage obtained by dividing (i) the aggregate outstanding principal
balance of the Loans held by that Lender, by (ii) the outstanding principal balance of the Loans held by all Lenders. 
  
 “PSA Capital” means PSA Capital Corporation, a Delaware corporation. 
  
 “PSA Georgia” has the meaning ascribed thereto in the preamble to the Agreement. 
  
 “PSA Licensing” means PSA Licensing Corporation, a Delaware
Corporation. 
  
 “PSA Properties” means PSA
Properties Corporation, a Delaware Corporation. 
  
 “Qualified Accounts Advance Rate” has the meaning ascribed to it in Section 1.7. 
  

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 “Qualified Account” means any Account of any Borrowing Base Party that (a) would
otherwise constitute an Eligible Account under Section 1.6, but for the fact that such Account does not satisfy the eligibility criterion set forth in clause (m)(i) of Section 1.6 due to the failure of such Account to be paid within 120 days
following the original service date with respect to such Account, and (b) such failure to be paid is solely as a result of the failure of a Third Party Payor (and not the failure of any Credit Party) to be in compliance with the requirements of
HIPAA; provided, however, that no Account shall constitute a “Qualified Account” if such Account is not paid within one hundred eighty (180) days following the original service date with respect to such Account. 
  
 “Qualified Assignee” means (a) any Lender, any Affiliate of
any Lender and, with respect to any Lender that is an investment fund that invests in commercial loans, any other investment fund that invests in commercial loans and that is managed or advised by the same investment advisor as such Lender or by an
Affiliate of such investment advisor, and (b) any commercial bank, savings and loan association or savings bank or any other entity which is an “accredited investor” (as defined in Regulation D under the Securities Act) which extends
credit or buys loans as one of its businesses, including insurance companies, mutual funds, lease financing companies and commercial finance companies, in each case, which has a rating of BBB or higher from S&P and a rating of Baa2 or higher
from Moody’s at the date that it becomes a Lender and which, through its applicable lending office, is capable of lending to Borrowers without the imposition of any withholding or similar taxes; provided that no Person determined by Agent to be
acting in the capacity of a vulture fund or distressed debt purchaser shall be a Qualified Assignee and no Person or Affiliate of such Person (other than a Person that is already a Lender) holding Subordinated Debt or Stock issued by any Credit
Party shall be a Qualified Assignee. 
  
 “Qualified
Plan” means a Pension Plan that is intended to be tax-qualified under Section 401(a) of the IRC. 
  
 “Ratable Share” has the meaning ascribed to it in Section 1.1(b). 
  
 “Real Estate” has the meaning ascribed to it in Section 3.6. 
  
 “Related Transactions” means the initial borrowing under the
Revolving Loan on the Closing Date, the consummation of the Senior Subordinated Note Redemption Transaction, the payment of all fees, costs and expenses associated with all of the foregoing and the execution and delivery of all of the Related
Transactions Documents. 
  
 “Related Transactions
Documents” means the Loan Documents and all other agreements or instruments executed in connection with the Related Transactions. 
  
 “Release” means any release, threatened release, spill, emission, leaking, pumping, pouring, emitting, emptying, escape, injection,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of Hazardous Material in the indoor or outdoor environment, including the movement of Hazardous Material through or in the air, soil, surface water, ground water or property.

  

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 “Requisite Lenders” means Lenders having (a) more than 66 2/3% of the Commitments of all
Lenders, or (b) if the Commitments have been terminated, more than 66 2/3% of the aggregate outstanding amount of the Loans. 
  
 “Reserves” means, with respect to the Borrowing Base of Borrowing Base Party (a) reserves established pursuant to Section 5.4(c)
and (b) such other reserves against Eligible Accounts, Revolving Loan Borrowing Availability or Acquisition Loan Borrowing Availability of Borrowers that Agent may, in its reasonable credit judgment, establish from time to time. Without limiting the
generality of the foregoing, Reserves established to ensure the payment of accrued Interest Expenses or Indebtedness shall be deemed to be a reasonable exercise of Agent’s credit judgment. 
  
 “Restricted Payment” means, with respect to any Credit Party
(a) the declaration or payment of any dividend or the incurrence of any liability to make any other payment or distribution of cash or other property or assets in respect of Stock; (b) any payment on account of the purchase, redemption, defeasance,
sinking fund or other retirement of such Credit Party’s Stock or any other payment or distribution made in respect thereof, either directly or indirectly; (c) any payment or prepayment of principal of, premium, if any, or interest, fees or
other charges on or with respect to, and any redemption, purchase, retirement, defeasance, sinking fund or similar payment and any claim for rescission with respect to, any Subordinated Debt; (d) any payment made to redeem, purchase, repurchase or
retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire Stock of such Credit Party now or hereafter outstanding; (e) any payment of a claim for the rescission of the purchase or sale of, or for material
damages arising from the purchase or sale of, any shares of such Credit Party’s Stock or of a claim for reimbursement, indemnification or contribution arising out of or related to any such claim for damages or rescission; (f) any payment, loan,
contribution, or other transfer of funds or other property to any Stockholder of such Credit Party other than payment of compensation in the ordinary course of business to Stockholders who are employees of such Credit Party; and (g) any payment of
management fees (or other fees of a similar nature) by such Credit Party to any Stockholder of such Credit Party or its Affiliates. 
  
 “Retiree Welfare Plan” means, at any time, a Welfare Plan that provides for continuing coverage or benefits for any participant or any
beneficiary of a participant after such participant’s termination of employment, other than continuation coverage provided pursuant to Section 4980B of the IRC and at the sole expense of the participant or the beneficiary of the participant.

  
 “Revolving Credit Advance” has the meaning
ascribed to it in Section 1.1(a)(i). 
  
 “Revolving
Lenders” means, as of any date of determination, Lenders having a Revolving Loan Commitment. 
  
 “Revolving Loan” means, at any time, the sum of (i) the aggregate amount of the Revolving Credit Advances outstanding to Borrowers
plus (ii) the aggregate Letter of Credit Obligations incurred on behalf of Borrowers. Unless the context otherwise requires, references to the outstanding principal balance of the Revolving Loan shall include the outstanding balance of Letter
of Credit Obligations. 
  

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 “Revolving Loan Borrowing Availability” means as of any date of determination the lesser
of (i) the Maximum Revolver Amount less the amount of the Revolving Loan then outstanding and (ii) the Borrowing Base less the Revolving Loan and Acquisition Loan then outstanding. 
  
 “Revolving Loan Commitment” means (a) as to any Revolving
Lender, the aggregate commitment of such Revolving Lender to make Revolving Credit Advances or incur Letter of Credit Obligations as set forth on Annex J to the Agreement or in the most recent Assignment Agreement executed by such Revolving
Lender and (b) as to all Revolving Lenders, the aggregate commitment of all Revolving Lenders to make Revolving Credit Advances or incur Letter of Credit Obligations, which aggregate commitment shall be Ten Million Dollars ($10,000,000) on the
Closing Date, as such amount may be adjusted, if at all, from time to time in accordance with the Agreement. 
  
 “Revolving Note” has the meaning ascribed to it in Section 1.1(a)(ii). 
  
 “Security Agreements” means, collectively, (a) the Borrower
Security Agreement, and (b) the Subsidiary Security Agreement. 
  
 “Seller Subordinated Debt” has the meaning ascribed to it in Section 6.1(iv). 
  
 “Senior Funded Debt” means the Obligations and any other Funded Debt that does not constitute Subordinated Debt. 
  
 “Senior Leverage Ratio” means, with respect to the Holdings
and its Subsidiaries, on a consolidated basis for any fiscal period, the ratio obtained by dividing (a) Senior Funded Debt for Holdings and its Subsidiaries as of the last day of such period, by (b) EBITDA for Holdings and its Subsidiaries for the
twelve months ending on that date of determination. 
  
 “Senior Subordinated Note Indenture” means that certain Indenture dated as of April 16, 1998 between Holdings, certain Subsidiaries of Holdings identified as “Guaranteeing Subsidiaries” thereunder and the
Indenture Trustee, as amended, supplemented or modified from time to time, pursuant to which Holdings issued the Senior Subordinated Notes in an aggregate original principal amount of up to $100,000,000. 
  
 “Senior Subordinated Note Redemption Transaction” means, at
any time, the redemption and payment in full of all or a portion of the issued and outstanding Senior Subordinated Notes at such time, the related termination of the Senior Subordinated Note Indenture upon the payment in full of all outstanding
Senior Subordinated Notes, and the release of Holdings and each of the “Guaranteeing Subsidiaries” (under and as defined in the Senior Subordinated Indenture) from all of their obligations under or in respect of the Senior Subordinated
Notes or the Senior Subordinated Note Indenture (other than any contingent indemnity obligations not yet due that pursuant to the express terms of the Senior Subordinated Note Indenture survive termination thereof) in connection with the payment in
full of all outstanding Senior Subordinated Notes. 
  

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 “Senior Subordinated Notes” means the Holding’s 10% Senior Subordinated Notes due
April 15, 2008, Series A, issued and outstanding pursuant to the Senior Subordinated Note Indenture. 
  
 “Solvent” means, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person is
greater than the total amount of liabilities, including contingent liabilities, of such Person; (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such
Person on its debts as they become absolute and matured; (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature; and (d) such
Person is not engaged in a business or transaction, and is not about to engage in a business or transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities (such as
litigation, guaranties and pension plan liabilities) at any time shall be computed as the amount that, in light of all the facts and circumstances existing at the time, represents the amount that can be reasonably be expected to become an actual or
matured liability. 
  
 “Stock” means all shares,
options, warrants, general or limited partnership interests, membership interests or other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company or equivalent entity whether voting or nonvoting,
including common stock, preferred stock or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange Commission under the Securities Exchange Act of
1934). 
  
 “Stockholder” means, with respect to
any Person, each holder of Stock of such Person. 
  
 “Subordinated Debt” means (a) the Indebtedness of Holdings and the other Credit Parties under the Senior Subordinated Notes and the Senior Subordinated Note Indenture and any guarantee executed by any Credit Party in
connection therewith, (b) Seller Subordinated Debt, and (c) any other Indebtedness of any Credit Party subordinated to the Obligations in a manner and form satisfactory to Agent and Lenders in their sole discretion, as to right and time of payment
and as to any other rights and remedies thereunder. 
  
 “Subsidiary” means, with respect to any Person, (a) any corporation of which an aggregate of more than 50% of the outstanding Stock having ordinary voting power to elect a majority of the board of directors of such
corporation (irrespective of whether, at the time, Stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, owned legally or
beneficially by such Person or one or more Subsidiaries of such Person, or with respect to which any such Person has the right to vote or designate the vote of 50% or more of such Stock whether by proxy, agreement, operation of law or otherwise, and
(b) any partnership or limited liability company in which such Person and/or one or more Subsidiaries of such Person shall have an interest (whether in the form of voting or participation in profits or capital contribution) of more than 50% or of
which any such Person is a general partner or may exercise the powers of a general partner. Unless the context otherwise requires, each reference to a Subsidiary shall be a reference to a Subsidiary of the Borrowers. 
  

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 “Subsidiary Guarantors” means, collectively, (a) each of (i) PSA Capital, (ii) PSA
Licensing, (iii) PSA Properties and (iv) Pediatric Home Nursing Services, Inc., a New York corporation, and (b) each other Person that from time to time becomes a Subsidiary of any of the Borrowers (other than the Insurance Subsidiary). 

 
 “Subsidiary Guaranty” means the Subsidiary Guaranty of
even date herewith executed by each Subsidiary Guarantor in favor of Agent, on behalf of itself and Lenders, together with any other Subsidiary Guaranty from time to time executed by any Subsidiary Guarantor in favor of Agent, on behalf of itself
and Lenders. 
  
 “Subsidiary Pledge Agreement”
means the Pledge Agreement of even date herewith executed by each Subsidiary Guarantor in favor of Agent, on behalf of itself and Lenders, pledging all Stock of their respective Subsidiaries, if any, and all Intercompany Notes owing to or held by
them. 
  
 “Subsidiary Security Agreement” means
the Subsidiary Security Agreement of even date herewith entered into by and among Agent, on behalf of itself and Lenders, and each Subsidiary Guarantor, together with any other Subsidiary Security Agreement from time to time executed by any
Subsidiary Guarantor in favor of Agent, on behalf of itself and Lenders. 
  
 “Supermajority Revolving Lenders” means Lenders having (a) 80% or more of the Revolving Loan Commitments of all Lenders, or (b) if the Revolving Loan Commitments have been terminated, 80% or more of
the aggregate outstanding amount of the Revolving Loan and Letter of Credit Obligations. 
  
 “Supporting Obligations” has the meaning ascribed thereto in the Code. 
  
 “Target” has the meaning ascribed to it in Section_6.1. 
  
 “Taxes” means taxes, levies, imposts, deductions, Charges or withholdings, and all liabilities with respect
thereto, excluding taxes imposed on or measured by the net income of Agent or a Lender by the jurisdictions under the laws of which Agent and Lenders are organized or conduct business or any political subdivision thereof. 
  
 “Termination Date” means the date on which (a) the Loans
have been indefeasibly repaid in full, (b) all other Obligations under the Agreement and the other Loan Documents have been completely discharged, (c) all Letter of Credit Obligations have been cash collateralized, cancelled or backed by standby
letters of credit in accordance with Annex B, and (d) Borrowers shall not have any further right to borrow any monies under the Agreement. 
  
 “Third Party Payor” means any governmental entity, insurance company, health maintenance organization, professional provider
organization, hospital, skilled nursing facility, hospice or any other health care provider or similar entity that is obligated to make payments on any Accounts, including Governmental Third Party Payors, but excluding any Patients. 
  
 “Title IV Plan” means a Pension Plan (other than a
Multiemployer Plan), that is covered by Title IV of ERISA, and that any Credit Party or ERISA Affiliate maintains, 

  

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contributes to or has an obligation to contribute to on behalf of participants who are or were employed by any of them. 
  
 “Trademark Security Agreements” means the Trademark Security
Agreements made in favor of Agent, on behalf of Lenders, by each applicable Credit Party. 
  
 “Trademark License” means rights under any written agreement now owned or hereafter acquired by any Credit Party granting any right to use any Trademark. 
  
 “Trademarks” means all of the following now owned or
hereafter adopted or acquired by any Credit Party: (a) all trademarks, trade names, corporate names, business names, trade styles, service marks, logos, other source or business identifiers, prints and labels on which any of the foregoing have
appeared or appear, designs and general intangibles of like nature (whether registered or unregistered), all registrations and recordings thereof, and all applications in connection therewith, including registrations, recordings and applications in
the United States Patent and Trademark Office or in any similar office or agency of the United States, any state or territory thereof, or any other country or any political subdivision thereof; (b) all reissues, extensions or renewals thereof; and
(c) all goodwill associated with or symbolized by any of the foregoing. 
  
 “Transaction” has the meaning ascribed to it in Section 11.8. 
  
 “TRICARE” means, 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” means an
Account payable pursuant to TRICARE. 
  
 “Unfunded Pension
Liability” means, at any time, the aggregate amount, if any, of the sum of (a) the amount by which the present value of all accrued benefits under each Title IV Plan exceeds the fair market value of all assets of such Title IV Plan
allocable to such benefits in accordance with Title IV of ERISA, all determined as of the most recent valuation date for each such Title IV Plan using the actuarial assumptions for funding purposes in effect under such Title IV Plan, and (b) for a
period of 5 years following a transaction which might reasonably be expected to be covered by Section 4069 of ERISA, the liabilities (whether or not accrued) that could be avoided by any Credit Party or any ERISA Affiliate as a result of such
transaction. 
  
 “Unrestricted Cash Balances”
shall mean, at any time of determination, the aggregate amount of all cash deposits of the Credit Parties maintained in any demand deposit account located in the United States, to the extent and only to the extent such cash deposits are subject to
Agent’s first-priority perfected security interest and are free of any Lien or other encumbrance (other than (i) customary Liens arising in the ordinary course of business which the depository institution may have with respect to any right of
offset against funds in such account, 

  

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(ii) customary holds for uncollected deposits, and (iii) Liens granted to the Agent and securing the Obligations). 
  
 “Welfare Plan” means a Plan described in Section 3(i) of
ERISA. 
  
 Rules of construction with respect to accounting terms
used in the Agreement or the other Loan Documents shall be as set forth in Annex G. All other undefined terms contained in any of the Loan Documents shall, unless the context indicates otherwise, have the meanings provided for by the Code as
in effect in the State of Georgia to the extent the same are used or defined therein. Unless otherwise specified, references in the Agreement or any of the Appendices to a Section, subsection or clause refer to such Section, subsection or clause as
contained in the Agreement. The words “herein,” “hereof” and “hereunder” and other words of similar import refer to the Agreement as a whole, including all Annexes, Exhibits and Schedules, as the same may from time to
time be amended, restated, modified or supplemented, and not to any particular section, subsection or clause contained in the Agreement or any such Annex, Exhibit or Schedule. 
  
 Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the
singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, feminine and neuter genders. The words “including”, “includes” and “include” shall be deemed to be
followed by the words “without limitation”; the word “or” is not exclusive; references to Persons include their respective successors and assigns (to the extent and only to the extent permitted by the Loan Documents) or, in the
case of governmental Persons, Persons succeeding to the relevant functions of such Persons; and all references to statutes and related regulations shall include any amendments of the same and any successor statutes and regulations. Whenever any
provision in any Loan Document refers to the knowledge (or an analogous phrase) of any Credit Party, such words are intended to signify that such Credit Party has actual knowledge or awareness of a particular fact or circumstance or that such Credit
Party, if it had exercised reasonable diligence, would have known or been aware of such fact or circumstance. 
  

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 ANNEX B (Section 1.2) 
 to 
 CREDIT AGREEMENT 
  
 LETTERS OF CREDIT 
  
 (a) Issuance. Subject to the terms and conditions of the Agreement,
Agent and Revolving Lenders agree to incur, from time to time prior to the Commitment Termination Date, upon the request of Borrower Representative on behalf of the applicable Borrower and for such Borrower’s account, Letter of Credit
Obligations by causing Letters of Credit to be issued by GE Capital or a Subsidiary thereof or a bank or other legally authorized Person selected by or acceptable to Agent in its sole discretion (each, an “L/C Issuer”) for
Borrowers’ account and guaranteed by Agent; provided, that if the L/C Issuer is a Revolving Lender, then such Letters of Credit shall not be guaranteed by Agent but rather each Revolving Lender shall, subject to the terms and conditions
hereinafter set forth, purchase (or be deemed to have purchased) risk participations in all such Letters of Credit issued with the written consent of Agent, as more fully described in paragraph (b)(ii) below. The aggregate amount of all such Letter
of Credit Obligations shall not at any time exceed the least of (i) $1,000,000 (the “L/C Sublimit”), and (ii) the Maximum Revolver Amount less the aggregate outstanding principal balance of the Revolving Credit Advances, and (iii)
the Borrowing Base less the aggregate outstanding principal balance of the Revolving Credit Advances. No such Letter of Credit shall have an expiry date that is more than one year following the date of issuance thereof, unless otherwise determined
by Agent in its sole discretion, and neither Agent nor Revolving Lenders shall be under any obligation to incur Letter of Credit Obligations in respect of, or purchase risk participations in, any Letter of Credit having an expiry date that is later
than the Commitment Termination Date. 
  
 (b)(i) Advances
Automatic; Participations. In the event that Agent or any Revolving Lender shall make any payment on or pursuant to any Letter of Credit Obligation, such payment shall then be deemed automatically to constitute a Revolving Credit Advance to the
applicable Borrower under Section 1.1(a) of the Agreement regardless of whether a Default or Event of Default has occurred and is continuing and notwithstanding any Borrower’s failure to satisfy the conditions precedent set forth in
Section 2, and each Revolving Lender shall be obligated to pay its Pro Rata Share thereof in accordance with the Agreement. The failure of any Revolving Lender to make available to Agent for Agent’s own account its Pro Rata Share of any
such Revolving Credit Advance or payment by Agent under or in respect of a Letter of Credit shall not relieve any other Revolving Lender of its obligation hereunder to make available to Agent its Pro Rata Share thereof, but no Revolving Lender shall
be responsible for the failure of any other Revolving Lender to make available such other Revolving Lender’s Pro Rata Share of any such payment. 
  
 (ii) If it shall be illegal or unlawful for any Borrower to incur Revolving Credit Advances as contemplated by paragraph (b)(i) above because of an Event
of Default described in Sections 8.1(h) or (i) or otherwise or if it shall be illegal or unlawful for any Revolving Lender to be deemed to have assumed a ratable share of the reimbursement obligations owed to an L/C Issuer, or if the L/C
Issuer is a Revolving Lender, then (i) immediately and without further action whatsoever, each Revolving Lender shall be deemed to 

  

 B - 1 








 
have irrevocably and unconditionally purchased from Agent (or such L/C Issuer, as the case may be) an undivided interest and participation equal to such
Revolving Lender’s Pro Rata Share (based on the Revolving Loan Commitments) of the Letter of Credit Obligations in respect of all Letters of Credit then outstanding and (ii) thereafter, immediately upon issuance of any Letter of Credit, each
Revolving Lender shall be deemed to have irrevocably and unconditionally purchased from Agent (or such L/C Issuer, as the case may be) an undivided interest and participation in such Revolving Lender’s Pro Rata Share (based on the Revolving
Loan Commitments) of the Letter of Credit Obligations with respect to such Letter of Credit on the date of such issuance. Each Revolving Lender shall fund its participation in all payments or disbursements made under the Letters of Credit in the
same manner as provided in the Agreement with respect to Revolving Credit Advances. 
  
 (c) Cash Collateral. (i) If Borrowers are required to provide cash collateral for any Letter of Credit Obligations pursuant to the Agreement prior to the Commitment Termination Date, each Borrower will pay to
Agent for the ratable benefit of itself and Revolving Lenders cash or cash equivalents acceptable to Agent (“Cash Equivalents”) in an amount equal to 105% of the maximum amount then available to be drawn under each applicable Letter
of Credit outstanding for the benefit of such Borrower. Such funds or Cash Equivalents shall be held by Agent in a cash collateral account (the “Cash Collateral Account”) maintained at a bank or financial institution acceptable to
Agent. The Cash Collateral Account shall be in the name of applicable Borrower and shall be pledged to, and subject to the control of, Agent, for the benefit of Agent and Lenders, in a manner satisfactory to Agent. Each Borrower hereby pledges and
grants to Agent, on behalf of itself and Lenders, a security interest in all such funds and Cash Equivalents held in the Cash Collateral Account from time to time and all proceeds thereof, as security for the payment of all amounts due in respect of
the Letter of Credit Obligations and other Obligations, whether or not then due. The Agreement, including this Annex B, shall constitute a security agreement under applicable law. 
  
 (ii) If any Letter of Credit Obligations, whether or not then due and payable, shall for any reason be outstanding on the
Commitment Termination Date, Borrowers shall either (A) provide cash collateral therefor in the manner described above, or (B) cause all such Letters of Credit and guaranties thereof, if any, to be canceled and returned, or (C) deliver a stand-by
letter (or letters) of credit in guarantee of such Letter of Credit Obligations, which stand-by letter (or letters) of credit shall be of like tenor and duration (plus 30 additional days) as, and in an amount equal to 105% of the aggregate maximum
amount then available to be drawn under, the Letters of Credit to which such outstanding Letter of Credit Obligations relate and shall be issued by a Person, and shall be subject to such terms and conditions, as are satisfactory to Agent in its sole
discretion. 
  
 (iii) From time to time after funds are deposited
in the Cash Collateral Account by any Borrower, whether before or after the Commitment Termination Date, Agent may apply such funds or Cash Equivalents then held in the Cash Collateral Account to the payment of any amounts, and in such order as
Agent may elect, as shall be or shall become due and payable by such Borrower to Agent and Lenders with respect to such Letter of Credit Obligations of such Borrower and, upon the satisfaction in full of all Letter of Credit Obligations of such
Borrower, to any other Obligations of any Borrower then due and payable. 
  

 B - 2 








 (iv) Neither Borrowers nor any Person claiming on behalf of or through Borrowers shall have any right to
withdraw any of the funds or Cash Equivalents held in the Cash Collateral Account, except that upon the termination of all Letter of Credit Obligations and the payment of all amounts payable by Borrowers to Agent and Lenders in respect thereof, any
funds remaining in the Cash Collateral Account shall be applied to other Obligations then due and owing and upon payment in full of such Obligations, any remaining amount shall be paid to Borrowers or as otherwise required by law. Interest earned on
deposits in the Cash Collateral Account shall be for the account of Agent. 
  
 (d) Fees and Expenses. Borrowers agree to pay to Agent for the benefit of Revolving Lenders, as compensation to such Lenders for Letter of Credit Obligations incurred hereunder, (i) all costs and expenses
incurred by Agent or any Lender on account of such Letter of Credit Obligations, and (ii) for each month during which any Letter of Credit Obligation shall remain outstanding, a fee (the “Letter of Credit Fee”) in an amount equal to
the Applicable L/C Margin from time to time in effect multiplied by the maximum amount available from time to time to be drawn under the applicable Letter of Credit. Such fee shall be paid to Agent for the benefit of the Revolving Lenders in
arrears, on the first day of each month and on the Commitment Termination Date. In addition, Borrowers shall pay to any L/C Issuer, on demand, such reasonable fees (including all per annum fees), charges and expenses of such L/C Issuer incurred in
respect of the issuance, negotiation, acceptance, amendment, transfer and payment of such Letter of Credit or otherwise payable pursuant to the application and related documentation under which such Letter of Credit is issued. 
  
 (e) Request for Incurrence of Letter of Credit Obligations. Borrower
Representative shall give Agent at least 2 Business Days’ prior written notice requesting the incurrence of any Letter of Credit Obligation. The notice shall be accompanied by the form of the Letter of Credit (which shall be acceptable to the
L/C Issuer) and a completed application for standby letter of credit or application and agreement for documentary letter of credit, in each case, in form and substance satisfactory to Agent. Notwithstanding anything contained herein to the contrary,
Letter of Credit applications by Borrower Representative and approvals by Agent and the L/C Issuer may be made and transmitted pursuant to electronic codes and security measures mutually agreed upon and established by and among Borrowers, Agent and
the L/C Issuer. 
  
 (f) Obligation Absolute. The obligation
of Borrowers to reimburse Agent and Revolving Lenders for payments made with respect to any Letter of Credit Obligation shall be absolute, unconditional and irrevocable, without necessity of presentment, demand, protest or other formalities, and the
obligations of each Revolving Lender to make payments to Agent with respect to Letters of Credit shall be unconditional and irrevocable. Such obligations of Borrowers and Revolving Lenders shall be paid strictly in accordance with the terms hereof
under all circumstances including the following: 
  
 (i) any lack of validity or enforceability of any Letter of Credit or the Agreement or the other Loan Documents or any other agreement; 
  
 (ii) the existence of any claim, setoff, defense or other right that any Borrower or any of their Affiliates or any Lender may at any time
have against a beneficiary or any 

  

 B - 3 








 
transferee of any Letter of Credit (or any Persons or entities for whom any such transferee may be acting), Agent, any Lender, or any other Person, whether
in connection with the Agreement, the Letter of Credit, the transactions contemplated herein or therein or any unrelated transaction (including any underlying transaction between any Borrower or any of their Affiliates and the beneficiary for which
the Letter of Credit was procured); 
  
 (iii) any
draft, demand, certificate or any other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
  
 (iv) payment by Agent (except as otherwise expressly
provided in paragraph (g)(ii)(C) below) or any L/C Issuer under any Letter of Credit or guaranty thereof against presentation of a demand, draft or certificate or other document that does not comply with the terms of such Letter of Credit or such
guaranty; 
  
 (v) any other circumstance or event
whatsoever, that is similar to any of the foregoing; or 
  
 (vi) the fact that a Default or an Event of Default has occurred and is continuing. 
  
 (g) Indemnification; Nature of Lenders’ Duties. (i) In addition to amounts payable as elsewhere provided in the Agreement, Borrowers hereby
agrees to pay and to protect, indemnify, and save harmless Agent and each Lender from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys’ fees and allocated costs
of internal counsel) that Agent or any Lender may incur or be subject to as a consequence, direct or indirect, of (A) the issuance of any Letter of Credit or guaranty thereof, or (B) the failure of Agent or any Lender seeking indemnification or of
any L/C Issuer to honor a demand for payment under any Letter of Credit or guaranty thereof as a result of any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government or Governmental Authority, in each
case other than to the extent as a result of the gross negligence or willful misconduct of Agent or such Lender (as finally determined by a court of competent jurisdiction). 
  
 (ii) As between Agent and any Lender and Borrowers, Borrowers assume all risks of the acts and omissions of, or misuse of
any Letter of Credit by beneficiaries of any Letter of Credit. In furtherance and not in limitation of the foregoing, to the fullest extent permitted by law neither Agent nor any Lender shall be responsible for: (A) the form, validity, sufficiency,
accuracy, genuineness or legal effect of any document issued by any party in connection with the application for and issuance of any Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged; (B) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, that may prove
to be invalid or ineffective for any reason; (C) failure of the beneficiary of any Letter of Credit to comply fully with conditions required in order to demand payment under such Letter of Credit; provided, that in the case of any payment by
Agent under any Letter of Credit or guaranty thereof, Agent shall be liable to the extent such payment was made as a result of its gross 

  

 B - 4 








 
negligence or willful misconduct (as finally determined by a court of competent jurisdiction) in determining that the demand for payment under such Letter of
Credit or guaranty thereof complies on its face with any applicable requirements for a demand for payment under such Letter of Credit or guaranty thereof; (D) errors, omissions, interruptions or delays in transmission or delivery of any messages, by
mail, cable, telegraph, telex or otherwise, whether or not they may be in cipher; (E) errors in interpretation of technical terms; (F) any loss or delay in the transmission or otherwise of any document required in order to make a payment under any
Letter of Credit or guaranty thereof or of the proceeds thereof; (G) the credit of the proceeds of any drawing under any Letter of Credit or guaranty thereof; and (H) any consequences arising from causes beyond the control of Agent or any Lender.
None of the above shall affect, impair, or prevent the vesting of any of Agent’s or any Lender’s rights or powers hereunder or under the Agreement. 
  
 (iii) Nothing contained herein shall be deemed to limit or to expand any waivers, covenants or indemnities made by Borrowers in favor of any L/C Issuer in
any letter of credit application, reimbursement agreement or similar document, instrument or agreement between Borrowers and such L/C Issuer, including an application and agreement for documentary letter of credit or a master documentary agreement
and a master standby agreement entered into with Agent. 
  

 B - 5 








 ANNEX C (Section 1.8) 
 to 
 CREDIT AGREEMENT 
  
 CASH MANAGEMENT SYSTEM 
  
 Each Credit Party shall, and shall cause its Subsidiaries to, establish and
maintain the Cash Management Systems described below: 
  
 (a) On
or before the Closing Date and until the Termination Date, each Borrower shall (i) establish and maintain a blocked account with respect to the existing master deposit account maintained by PSA Georgia with Wachovia Bank, N.A. (“Wachovia
Bank”), account number 2080000266545 (the “Existing Master Account”), which deposit account shall be a zero balance account, such that such deposit account shall have a zero balance at the end of each Business Day and all
available funds on deposit in such deposit account shall, on or prior to the close of business on each Business Day, automatically be swept by Wachovia Bank to the Concentration Account (defined below), (ii) request in writing and otherwise take
such reasonable steps to ensure that all Account Debtors forward payment directly to such Existing Master Account, and (iii) deposit and cause its Subsidiaries to deposit or cause to be deposited promptly, and in any event no later than the first
Business Day after the date of receipt thereof, any and all cash, checks, drafts or other similar items of payment relating to or constituting payments made in respect of any and all Collateral into the Existing Master Account in such
Borrowers’ name or any such Subsidiary’s name and at Wachovia Bank. On or before the Closing Date, PSA Georgia shall have established a concentration account in its name (“Concentration Account”) at Wachovia Bank (in its
capacity as depository bank with respect to the Concentration Account, the “Concentration Account Bank”). 
  
 (b) Each Borrower may maintain, in its name, an account (each a “Disbursement Account” and collectively, the “Disbursement
Accounts”) at a bank acceptable to Agent into which Agent shall, from time to time, deposit proceeds of Revolving Credit Advances made to such Borrower pursuant to Section 1.1 for use by such Borrower in accordance with the
provisions of Section 1.4. On the Closing Date, the Borrowers hereby designate the Concentration Account as the Disbursement Account. 
  
 (c) On or before the Closing Date (or such later date as Agent shall consent to in writing), (i) Wachovia Bank shall have entered into a tri-party
government receivables account agreement (the “Government Receivables Account Agreement”) with Agent, for the benefit of itself and Lenders, and the applicable Borrower, in form and substance reasonably acceptable to Agent, with
respect to the Existing Master Account, which agreement shall become operative on or prior to the Closing Date, (ii) Wachovia Bank shall have entered into a tri-party blocked account agreements with Agent, for the benefit of itself and Lenders, and
the applicable Borrower, in form and substance reasonably acceptable to Agent, with respect to the 

  

 C - 1 








 
Disbursement Accounts, the Concentration Account and that certain deposit account at Wachovia Bank (account number 2079930000824) (the “Operating
Account”), each of which shall become operative on or prior to the Closing Date. 
  
 (d) From and after the receipt of a notice (an “Activation Notice”) from Agent (which Activation Notice may be given by Agent at any time at which (1) a Default or Event of Default has occurred and is
continuing, (2) Agent reasonably believes based upon information available to it that a Default or an Event of Default is likely to occur; (3) Agent reasonably believes that an event or circumstance that is likely to have a Material Adverse Effect
has occurred, or (4) Agent reasonably has grounds to question the integrity of any Borrowers’ Cash Management Systems or any Borrowers’ compliance with the provisions of this Annex C or any other provisions of the Loan Documents to
the extent related to such Cash Management Systems (any of the foregoing being referred to herein as an “Activation Event”)), with respect to the Concentration Account Bank, such bank agrees from and after the receipt of an
Activation Notice from Agent upon the occurrence of an Activation Event, to immediately forward all amounts received in the applicable Concentration Account to the Collection Account through daily sweeps from such Concentration Account into the
Collection Account. From and after the date Agent has delivered an Activation Notice, no Borrower shall, or shall cause or permit any Subsidiary thereof to, accumulate or maintain cash in Disbursement Accounts, the Operating Account or payroll
accounts as of any date of determination in excess of checks outstanding against such accounts as of that date and amounts necessary to meet minimum balance requirements. 
  
 (e) So long as no Default or Event of Default has occurred and is continuing, Borrowers may amend Disclosure Schedule
(3.19) to add or replace any deposit account or depository bank or to replace any Concentration Account or any Disbursement Account; provided, that (i) Agent shall have consented in writing in advance to the opening of such account with
the relevant bank and (ii) prior to the time of the opening of such account, the applicable Borrower or its respective Subsidiaries, as applicable, and such bank shall have executed and delivered to Agent a tri-party blocked account agreement, in
form and substance reasonably satisfactory to Agent. Borrowers shall close any of their accounts (and establish replacement accounts in accordance with the foregoing sentence) promptly and in any event within 30 days following notice from Agent that
the creditworthiness of any bank holding an account is no longer acceptable in Agent’s reasonable judgment, or as promptly as practicable and in any event within 60 days following notice from Agent that the operating performance, funds transfer
or availability procedures or performance with respect to accounts of the bank holding such accounts or Agent’s liability under any tri-party blocked account agreement with such bank is no longer acceptable in Agent’s reasonable judgment.

  
 (f) The deposit accounts which are subject to blocked account
agreements, Disbursement Accounts and the Concentration Account shall be cash collateral accounts, with all cash, checks and other similar items of payment in such accounts securing payment of the Loans 

  

 C - 2 








 
and all other Obligations, and in which each Borrower and each Subsidiary thereof shall have granted a Lien to Agent, on behalf of itself and Lenders,
pursuant to the Security Agreement. 
  
 (g) All amounts deposited
in the Collection Account shall be deemed received by Agent in accordance with Section 1.10 and shall be applied (and allocated) by Agent in accordance with Section 1.11. In no event shall any amount be so applied unless and until such
amount shall have been credited in immediately available funds to the Collection Account. 
  
 (h) Each Borrower shall and shall cause its Affiliates, officers, employees, agents, directors or other Persons acting for or in concert with such Borrower (each a “Related Person”) to (i) hold in
trust for Agent, for the benefit of itself and Lenders, all checks, cash and other items of payment received by such Borrower or any such Related Person, and (ii) within 1 Business Day after receipt by such Borrower or any such Related Person of any
checks, cash or other items of payment, deposit the same into the Existing Master Account. Each Borrower and each Related Person thereof acknowledges and agrees that all cash, checks or other items of payment constituting proceeds of Collateral are
part of the Collateral. All proceeds of the sale or other disposition of any Collateral, shall be deposited directly into the Concentration Account. 
  
 (i) Notwithstanding the foregoing restrictions in this Annex C or in the Agreement, so long as no Default or Event of Default has occurred and is
continuing, Credit Parties may on and after the Closing Date establish and maintain a single third-party escrow or trust deposit account with Wachovia Bank or another financial institution satisfactory to Agent in its reasonable discretion (such
account referred to herein as the “Pledged Account”) solely for the purpose of pre-funding estimated loss reserves under the Credit Parties’ existing workers compensation insurance policies (as such policies may be renewed from
time to time), provided that each of the following covenants and conditions are and at all times hereafter continue to be met: 
  
 (i) Promptly (and in any event within five Business Days) after establishing the Pledged Account Borrowers shall provide to Agent a
written statement identifying the name of the Pledged Account, the amount of funds on deposit therein, the account number and the name and address of the depository bank where such Pledged Account is maintained; 
  
 (ii) As of December 31, 2003, the balance on deposit in the
Pledged Account was $2,732,189.11. The amount from time to time on deposit in the Pledged Account shall not at any time exceed the maximum amount required under the Credit Parties’ existing workers compensation insurance policies (as such
policies may be renewed from time to time) to be posted as cash collateral in order to fund a twelve month estimated loss reserve in respect of each policy year of workers compensation insurance claims by employees of the Credit Parties as supported
by documentation delivered by Borrowers to Agent and reasonably satisfactory to Agent; 
  

 C - 3 








 (iii) the Borrowers shall not use the proceeds of any Loans to fund the Pledged Account;

  
 (iv) the Borrowers shall furnish to Agent
promptly (and in any event within thirty days after the end of each month) copies of all account statements in respect of such Pledged Account for the immediately preceding month; and 
  
 (v) Borrowers shall upon request of Agent promptly furnish to Agent copies of Borrower’s workers
compensation insurance policies and such other documents or information that Agent may reasonably request in order to verify that the amount on deposit in the Pledged Account does not exceed the amount required to be posted as cash collateral
pursuant to Borrowers’ existing workers compensation insurance polices and does not exceed the limits set forth in clause (ii) above of this section. 
  

 C - 4 








 ANNEX D (Section 2.1(a)) 
 to 
 CREDIT AGREEMENT 
  
 CLOSING CHECKLIST 
  
 In addition to, and not in limitation of, the conditions described in
Section 2.1 of the Agreement, pursuant to Section 2.1(a), the following items must be received by Agent in form and substance satisfactory to Agent on or prior to the Closing Date (each capitalized term used but not otherwise defined
herein shall have the meaning ascribed thereto in Annex A to the Agreement): 
  
 A. Appendices. All Appendices to the Agreement, in form and substance satisfactory to Agent. 
  
 B. Revolving Notes and Acquisition Loan Notes. Duly executed originals of the Revolving Notes and Acquisition Notes for each applicable Lender,
dated the Closing Date. 
  
 C. Security Agreements. Duly
executed originals of each of the Security Agreements, dated the Closing Date, and all instruments, documents and agreements executed pursuant thereto. 
  
 D. Insurance. Satisfactory evidence that the insurance policies required by Section 5.4 are in full force and effect, together with
appropriate evidence showing loss payable and/or additional insured clauses or endorsements, as requested by Agent, in favor of Agent, on behalf of Lenders. 
  
 E. Security Interests and Code Filings. (a) Evidence satisfactory to Agent that Agent (for the benefit of itself and Lenders) has a valid and
perfected first priority security interest in the Collateral, including (i) such documents duly executed by each Credit Party (including financing statements under the Code and other applicable documents under the laws of any jurisdiction with
respect to the perfection of Liens) as Agent may request in order to perfect its security interests in the Collateral and (ii) copies of recent tax, lien, judgment and litigation searches in each relevant jurisdiction with respect to each Credit
Party, and such search shall reveal no Liens on any assets of any Credit Party, except for Permitted Encumbrances or Liens to be discharged on or prior to the Closing Date pursuant to documentation satisfactory to Agent. 
  
 (b) Evidence satisfactory to Agent, including copies, of all UCC-1 and other
financing statements filed in favor of any Credit Party with respect to each location, if any, at which Inventory may be consigned. 
  
 (c) Control Letters from (i) all issuers of uncertificated securities and financial assets held by Borrowers, (ii) all securities intermediaries with
respect to all securities accounts and securities entitlements of Borrowers, and (iii) all futures commission agents and clearing houses with respect to all commodities contracts and commodities accounts held by Borrowers. 
  

 D - 1 








 F. Intellectual Property Security Agreements. Duly executed originals of Trademark Security
Agreements, Copyright Security Agreements and Patent Security Agreements, each dated the Closing Date and signed by each Credit Party which owns Trademarks, Copyrights and/or Patents, as applicable, all in form and substance reasonably satisfactory
to Agent, together with all instruments, documents and agreements executed pursuant thereto. 
  
 G. Subsidiary Guaranty. Subsidiary Guaranty executed by each Subsidiary Guarantor in favor of Agent, for the benefit of Lenders. 
  
 H. Initial Borrowing Base Certificate. Duly executed originals of an initial Borrowing Base Certificate from
Borrowers, dated the Closing Date, reflecting information concerning Eligible Accounts of Borrowing Base Parties as of a date not more than 7 days prior to the Closing Date. 
  
 I. Initial Notice of Revolving Credit Advance. Duly executed originals of a Notice of Revolving Credit Advance, dated
the Closing Date, with respect to the initial Revolving Credit Advance to be requested by Borrower Representative on behalf of Borrowers on the Closing Date. 
  
 J. Cash Management System; Blocked Account Agreements. Evidence satisfactory to Agent that, as of the Closing Date, Cash Management Systems
complying with Annex C to the Agreement have been established and are currently being maintained in the manner set forth in such Annex C, together with copies of duly executed tri-party blocked account and lock box agreements,
reasonably satisfactory to Agent, with the banks as required by Annex C. 
  
 K. Charter and Good Standing. For each Credit Party, such Person’s (a) charter and all amendments thereto, (b) good standing certificates (including verification of tax status) in its state of
incorporation and (c) good standing certificates (including verification of tax status) and certificates of qualification to conduct business in each jurisdiction where its ownership or lease of property or the conduct of its business requires such
qualification, each dated a recent date prior to the Closing Date and certified by the applicable Secretary of State or other authorized Governmental Authority. 
  

L. Bylaws and Resolutions. For each Credit Party, (a) such Person’s bylaws, together with all amendments thereto and (b) resolutions of
such Person’s Board of Directors, approving and authorizing the execution, delivery and performance of the Loan Documents to which such Person is a party and the transactions to be consummated in connection therewith, each certified as of the
Closing Date by such Person’s corporate secretary or an assistant secretary as being in full force and effect without any modification or amendment. 
  
 M. Incumbency Certificates. For each Credit Party, signature and incumbency certificates of the officers of each such Person executing any of the
Loan Documents, certified as of the Closing Date by such Person’s corporate secretary or an assistant secretary as being true, accurate, correct and complete. 
  

 D - 2 








 N. Opinions of Counsel. Duly executed originals of opinions of McKenna, Long & Aldridge LLP,
counsel for the Credit Parties, together with any local counsel opinions reasonably requested by Agent, each in form and substance reasonably satisfactory to Agent and its counsel, dated the Closing Date, and each accompanied by a letter or
certificate addressed to such counsel from the Credit Parties, authorizing and directing such counsel to address its opinion to Agent, on behalf of Lenders, and to include in such opinion an express statement to the effect that Agent and Lenders are
authorized to rely on such opinion. 
  
 O. Pledge
Agreements. Duly executed originals of each of the Pledge Agreements accompanied by (as applicable) (a) share certificates representing all of the outstanding Stock being pledged pursuant to such Pledge Agreement and stock powers for such share
certificates executed in blank and (b) the original Intercompany Notes and other instruments evidencing Indebtedness being pledged pursuant to such Pledge Agreement, duly endorsed in blank. 
  
 P. Letter to Accountants. A letter from the Credit Parties to their
independent auditors authorizing the independent certified public accountants of the Credit Parties to communicate with Agent and Lenders in accordance with Section 4.2. 
  
 Q. Solvency Certificate. Certificate of the Chief Financial Officer of Borrowers, in form and substance satisfactory
to Agent, demonstrating Solvency of each Borrower and each of the other Credit Parties after giving effect to the initial Advances made on the Closing Date, the Senior Subordinated Note Redemption and the other Related Transactions contemplated
hereby. 
  
 R. Officer’s Certificate. Agent shall have
received duly executed originals of a certificate of the Chief Financial Officer of Holdings, dated the Closing Date, certifying that (a) since September 30, 2003 (i) there has been no material adverse change in the business, financial or other
condition of any of the Credit Parties, the Collateral or material adverse change in the prospects or projections of any of the Credit Parties; (ii) there has been no material adverse change in the industry in which any Borrower or any other Credit
Party operates; (iii) no Litigation has been commenced which, if successful, would have a Material Adverse Effect or could challenge the validity of any of the transactions contemplated by the Agreement and the other Loan Documents; (iv) there have
been no Restricted Payments made by any Credit Party; and (v) there has been no material increase in liabilities, liquidated or contingent, and no material decrease in assets of any Credit Party, and (b) the incurrence of the Obligations by
Borrowers from time to time under and in connection with this Agreement and the other Loan Documents, and the incurrence of the Obligations by the Guarantors from time to time under and in connection with this Agreement and the other Loan Documents,
is permitted to be incurred under Section 4.09 of the Senior Subordinated Note Indenture and attaching detail demonstrating compliance with the relevant indenture convenant. 
  
 S. Waivers. Agent, on behalf of Lenders, shall have received Landlord Agreements, bailee letters and mortgagee
agreements in form and substance reasonably satisfactory to Agent, in each case as required pursuant to Section 5.9. 
  

 D - 3 








 T. Subordination and Intercreditor Agreements. Agent and Lenders shall have received any and all
subordination and/or intercreditor agreements, all in form and substance reasonably satisfactory to Agent, as Agent shall have deemed necessary or appropriate with respect to any Indebtedness of any Credit Party. 
  
 U. Audited Financials; Financial Condition. Agent shall have received
the Financial Statements, Projections and other materials set forth in Section 3.4, certified by Borrower Representative’s Chief Financial Officer, in each case in form and substance satisfactory to Agent, and Agent shall be satisfied,
in its sole discretion, with all of the foregoing. Agent shall have further received a certificate of the Chief Executive Officer and/or the Chief Financial Officer of each Borrower, based on such financial statements and Projections, to the effect
that (a) such Borrower will be Solvent upon the consummation of the transactions contemplated herein; (b) the Pro Forma fairly presents in all material respects the financial condition of such Borrower as of the date thereof after giving effect to
the transactions contemplated by the Loan Documents; (c) the Projections are based upon estimates and assumptions stated therein, all of which such Borrower believes to be reasonable and fair in light of current conditions and current facts known to
such Borrower and, as of the Closing Date, reflect such Borrowers’ good faith and reasonable estimates of its future financial performance and of the other information projected therein for the period set forth therein; and (d) the Fair Salable
Balance Sheet was prepared on the same basis as the as the unaudited balance sheets described in Section 3.4(a)(ii), except that such Borrower’s assets are set forth therein at their fair salable values on a going concern basis
and the liabilities set forth therein include all contingent liabilities of such Borrower stated at the reasonably estimated fair values thereof. 
  
 V. Master Standby Agreement. A Master Agreement for Standby Letters of Credit between Borrowers and GE Capital. 
  
 W. Master Documentary Agreement. A Master Agreement for Documentary
Letters of Credit between Borrowers and GE Capital. 
  
 X.
HIPAA Business Associate Agreement. Duly executed originals of each of the HIPAA Business Associate Agreements, dated the Closing Date, between the applicable Credit Party and Agent. 
  
 Y. Notice to Indenture Trustee. Agent shall have received evidence
satisfactory to it that Holdings shall have delivered to the Indenture Trustee a written notice from Holdings satisfying the requirements for delivery of notices to the Indenture Trustee under such indenture and stating that (i) the Obligations
constitute Designated Senior Debt under and as defined in the Senior Subordinated Note Indenture, and (ii) GE Capital, as Agent, is the current “Representative” of the “Senior Debt” as such terms are defined in the Senior
Subordinated Note Indenture and that any notices by Indenture Trustee to such representative shall be sent to GE Capital, as Agent, until such time as GE Capital, as such representative of the senior debt, notifies the Indenture Trustee to the
contrary and setting forth the address to which notices and other communications may be sent to GE Capital as such representative. 
  
 Z. Other Documents. Such other certificates, documents and agreements respecting any Credit Party as Agent may, in its reasonable discretion,
request. 
  

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 ANNEX E (Section 4.1(a)) 
 to 
 CREDIT AGREEMENT 
  
 FINANCIAL STATEMENTS AND PROJECTIONS — REPORTING 
  
 Borrowers shall deliver or cause to be delivered to Agent or to Agent and
Lenders, as indicated, the following, each in form and scope satisfactory to Lender: 
  
 (a) Monthly Financials. To Agent and Lenders, within 30 days after the end of each of the first two Fiscal Months of each Fiscal Quarter, financial information regarding Holdings and its Subsidiaries,
consisting of internally prepared, unaudited balance sheets as of the close of such Fiscal Month and unaudited statements of income for such Fiscal Month, all prepared in accordance with GAAP (subject to the absence of footnotes and normal quarterly
and year-end adjustments), provided that such monthly financial statements shall not be required to be delivered for any Fiscal Month in which no Loans or Letters of Credit are outstanding during such Fiscal Month and at the required delivery date
for such monthly financial statements. 
  
 (b) Quarterly
Financials. To Agent and Lenders, within 45 days after the end of each Fiscal Quarter, financial information regarding Holdings and its Subsidiaries, certified by the Chief Financial Officer, or, in his absence, the Chief Accounting Officer, of
Holdings, consisting of consolidated and consolidating (i) unaudited balance sheets as of the close of such Fiscal Quarter and the related statements of income and cash flows for that portion of the Fiscal Year ending as of the close of such Fiscal
Quarter; (ii) unaudited statements of income and cash flows for such Fiscal Quarter, setting forth in comparative form the figures for the corresponding period in the prior year and the figures contained in the Projections for such Fiscal Year, all
prepared in accordance with GAAP (subject to normal year-end adjustments); and (iii) a summary of the outstanding balance of all Intercompany Notes as of the last day of that Fiscal Quarter. Such financial information shall be accompanied by (A) a
statement in reasonable detail (each, a “Compliance Certificate”) showing the calculations used in determining compliance with each Financial Covenant that is tested on a monthly basis, and (B) the certification of the Chief
Financial Officer, or, in his absence, the Chief Accounting Officer, of Holdings that (i) such financial information presents fairly in all material respects in accordance with GAAP (subject to normal year-end adjustments) the financial position and
results of operations of Holdings and its Subsidiaries, on a consolidated and consolidating basis, in each case as at the end of such Fiscal Quarter and for that portion of the Fiscal Year then ended and (ii) any other information presented is true,
correct and complete in all material respects and that there was no Default or Event of Default in existence as of such time or, if a Default or Event of Default shall have occurred and be continuing, describing the nature thereof and all efforts
undertaken to cure such Default or Event of Default. 
  
 (c)
Operating Plan. To Agent and Lenders, as soon as available, but not later than 30 days after the end of each Fiscal Year, an annual operating plan for Holdings and its 

  

 E - 1 








 
Subsidiaries, approved by the Board of Directors of Holdings, for the following Fiscal Year, which (i) includes a statement of all of the material
assumptions on which such plan is based, (ii) includes monthly balance sheets and a monthly budget for the following year and (iii) integrates sales, gross profits, operating expenses, operating profit, cash flow projections, Acquisition Loan
Borrowing Availability and Revolving Loan Borrowing Availability projections, all prepared on the same basis and in similar detail as that on which operating results are reported (and in the case of cash flow projections, representing
management’s good faith estimates of future financial performance based on historical performance), and including plans for personnel, Capital Expenditures and facilities. 
  
 (d) Annual Audited Financials. To Agent and Lenders, within 90 days after the end of each Fiscal Year, audited
Financial Statements for Holdings and its Subsidiaries on a consolidated and (unaudited) consolidating basis, consisting of balance sheets and statements of income and retained earnings and cash flows, setting forth in comparative form in each case
the figures for the previous Fiscal Year, which Financial Statements shall be prepared in accordance with GAAP and certified without qualification, by an independent certified public accounting firm of national standing or otherwise acceptable to
Agent. Such Financial Statements shall be accompanied by (i) a statement prepared in reasonable detail showing the calculations used in determining compliance with each of the Financial Covenants, (ii) a report from such accounting firm to the
effect that, in connection with their audit examination, nothing has come to their attention to cause them to believe that a Default or Event of Default has occurred (or specifying those Defaults and Events of Default that they became aware of), it
being understood that such audit examination extended only to accounting matters and that no special investigation was made with respect to the existence of Defaults or Events of Default, (iii) a letter addressed to Agent, on behalf of itself and
Lenders, in form and substance reasonably satisfactory to Agent and subject to standard qualifications required by nationally recognized accounting firms, signed by such accounting firm acknowledging that Agent and Lenders are entitled to rely upon
such accounting firm’s certification of such audited Financial Statements, (iv) the annual letters to such accountants in connection with their audit examination detailing contingent liabilities and material litigation matters, and (v) the
certification of the Chief Executive Officer or Chief Financial Officer, or, in his absence, the Chief Accounting Officer, of Holdings that all such Financial Statements present fairly in all material respects in accordance with GAAP the financial
position, results of operations and statements of cash flows of Holdings and its Subsidiaries on a consolidated and consolidating basis, as at the end of such Fiscal Year and for the period then ended, and that there was no Default or Event of
Default in existence as of such time or, if a Default or Event of Default has occurred and is continuing, describing the nature thereof and all efforts undertaken to cure such Default or Event of Default. 
  
 (e) Management Letters. To Agent and Lenders, within 5 Business Days
after receipt thereof by any Credit Party, copies of all management letters, exception reports or similar letters or reports received by such Credit Party from its independent certified public accountants. 
  

 E - 2 








 (f) Default Notices. To Agent and Lenders, as soon as practicable, and in any event within 5
Business Days after an executive officer of any Borrower has actual knowledge of the existence of any Default, Event of Default or other event that has had a Material Adverse Effect, telephonic or telecopied notice specifying the nature of such
Default or Event of Default or other event, including the anticipated effect thereof, which notice, if given telephonically, shall be promptly confirmed in writing on the next Business Day. 
  
 (g) SEC Filings and Press Releases. To Agent and Lenders, promptly
upon their becoming available, notice of the filing or publication of: (i) all Financial Statements, reports, notices and proxy statements made publicly available by any Credit Party to its security holders; (ii) all regular and periodic reports and
all registration statements and prospectuses, if any, filed by any Credit Party with any securities exchange or with the Securities and Exchange Commission or any governmental or private regulatory authority; and (iii) all press releases and other
statements made available by any Credit Party to the public concerning material changes or developments in the business of any such Person. Upon request of Agent, Borrowers will promptly provide copies of any of the foregoing items described in
clauses (i) through (iii). 
  
 (h) Subordinated Debt and Equity
Notices. To Agent, as soon as practicable, copies of all material written notices given or received by any Credit Party with respect to any Subordinated Debt or Stock of such Person, and, within 2 Business Days after any Credit Party obtains
knowledge of any matured or unmatured event of default with respect to any Subordinated Debt, notice of such event of default. 
  
 (i) Supplemental Schedules. To Agent, supplemental disclosures, if any, required by Section 5.6. 
  
 (j) Litigation. To Agent in writing, promptly upon learning thereof,
notice of any Litigation commenced or threatened against any Credit Party that (i) seeks damages in excess of $250,000, (ii) seeks injunctive relief, (iii) is asserted or instituted against any Plan, its fiduciaries or its assets or against any
Credit Party or ERISA Affiliate in connection with any Plan, (iv) alleges criminal misconduct by any Credit Party, (v) alleges the violation of any law regarding, or seeks remedies in connection with, any Environmental Liabilities; or (vi) involves
any product recall. 
  
 (k) Insurance Notices. To Agent,
disclosure of losses or casualties required by Section 5.4. 
  
 (l) Lease Default Notices. To Agent, within 2 Business Days after receipt thereof, copies of (i) any and all default notices received under or with respect to any leased location or public warehouse where Collateral is located, and
(ii) such other notices or documents as Agent may reasonably request. 
  

 E - 3 








 (m) Other Documents. To Agent and Lenders, such other financial and other information respecting
any Credit Party’s business or financial condition as Agent or any Lender shall, from time to time, reasonably request. 
  

 E - 4 








 ANNEX F (Section 4.1(b)) 
 to 
 CREDIT AGREEMENT 
  
 COLLATERAL REPORTS 
  
 Borrowers shall deliver or cause to be delivered the following: 

 
 (a) To Agent, upon its request, and in any event no less frequently than
noon New York time 15 days after the end of each Fiscal Month (or at more frequent intervals as may be requested by Agent from time to time) (together with a copy of all or any part of the following reports requested by any Lender in writing after
the Closing Date), each of the following reports, each of which shall be prepared by Holdings as of the last day of the immediately preceding Fiscal Month or the date 2 days prior to the date of any such request: 
  
 (i) a Borrowing Base Certificate with respect to each
Borrowing Base Party, accompanied by such supporting detail and documentation as shall be requested by Agent in its reasonable discretion, provided, that such Borrowing Base Certificate shall not be required to be delivered for any Fiscal
Month in which no Loans or Letters of Credit are outstanding during such Fiscal Month and at the required delivery date for such Borrowing Base Certificate; 
  
 (ii) with respect to each Borrowing Base Party, a monthly trial balance showing Accounts outstanding aged from the original service date
as follows: 1 to 30 days, 31 to 60 days, 61 to 90 days, 91 days to 120 days and 121 days or more (and, if at any time Qualified Accounts are included in the Borrowing Base, 121 to 180 days and 181 days or more), accompanied by such supporting detail
and documentation as shall be requested by Agent in its reasonable discretion. 
  
 (b) To Agent, on a monthly basis or at such more frequent intervals as Agent may reasonably request from time to time (together with a copy of all or any part of such delivery requested by any Lender in writing after
the Closing Date), collateral reports with respect to each Borrowing Base Party, including all additions and reductions (cash and non-cash) with respect to Accounts of each Borrowing Base Party, in each case accompanied by such supporting detail and
documentation as shall be requested by Agent in its reasonable discretion each of which shall be prepared by Holdings as of the last day of the immediately preceding week or the date 2 days prior to the date of any request; 
  

 F - 1 








 (c) To Agent, at the time of delivery of each of the monthly Financial Statements delivered pursuant to
Annex E: 
  
 (i) a reconciliation of the
most recent Borrowing Base accompanied by such supporting detail and documentation as shall be requested by Agent in its reasonable discretion; 
  
 (ii) an aging of accounts payable and a reconciliation of that accounts payable aging to Borrowing Base Party’s general ledger and
monthly Financial Statements delivered pursuant to Annex E, in each case accompanied by such supporting detail and documentation as shall be requested by Agent in its reasonable discretion; 
  
 (iii) a reconciliation of the outstanding Loans as set forth
in the monthly Loan Account statement provided by Agent to Borrowers’ general ledger and monthly Financial Statements delivered pursuant to Annex E, in each case accompanied by such supporting detail and documentation as shall be
requested by Agent in its reasonable discretion; 
  
 (d) To Agent,
at the time of delivery of each of the annual Financial Statements delivered pursuant to Annex E, (i) a listing of government contracts of Borrowers subject to the Federal Assignment of Claims Act of 1940; and (ii) a list of any applications
for the registration of any Patent, Trademark or Copyright filed by any Credit Party with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in the prior Fiscal Quarter; 
  
 (e) Each Borrower, at its own expense, shall deliver to Agent such appraisals
of its assets as Agent may request at any time after the occurrence and during the continuance of a Default or an Event of Default, such appraisals to be conducted by an appraiser, and in form and substance reasonably satisfactory to Agent; and

  
 (f) Such other reports, statements and reconciliations with
respect to the Borrowing Base or Collateral or Obligations of any or all Credit Parties as Agent shall from time to time request in its reasonable discretion. 
  

 F - 2 








 ANNEX G (Section 6.10) 
 to 
 CREDIT AGREEMENT 
  
 FINANCIAL COVENANTS 
  
 Credit Parties shall not breach or fail to comply with any of the following
financial covenants, each of which shall be calculated in accordance with GAAP consistently applied: 
  
 (a) Maximum Capital Expenditures. Holdings and its Subsidiaries on a consolidated basis shall not make any Capital Expenditures in any Fiscal
Quarter if the amount of such Capital Expenditures during the immediately preceding four Fiscal Quarters, including the Fiscal Quarter then ending, would exceed the maximum amounts set forth below for such period: 
  

				
	 Fiscal Quarter ended

	  	 Maximum Capital
 Expenditures


	 March 31, 2004
	  	$	4,500,000
	 June 30, 2004
	  	$	4,500,000
	 September 30, 2004
	  	$	5,000,000
	 December 31, 2004
	  	$	5,000,000
	 March 31, 2004 and each Fiscal Quarter ended thereafter
	  	$	5,500,000

  
 (b) Minimum Fixed
Charge Coverage Ratio. Holdings and its Subsidiaries shall have on a consolidated basis at the end of each Fiscal Quarter ending on and after March 31, 2004, a Fixed Charge Coverage Ratio for the 12-month period then ended of not less than the
following 1.30 to 1.00. 
  
 (c) Maximum Total Leverage
Ratio. Holdings and its Subsidiaries on a consolidated basis shall have, at the end of each Fiscal Quarter set forth below, a Leverage Ratio as of the last day of such Fiscal Quarter and for the 12-month period then ended of not more than the
following: 
  

			
	 Period

	  	Leverage Ratio


	 Each Fiscal Quarter beginning with Fiscal Quarter ending March 31, 2004 and continuing through and including Fiscal Quarter ending December
31, 2004
	  	2.80 to 1.00
	 Each Fiscal Quarter beginning with Fiscal Quarter ending March 31, 2005 and continuing through and including Fiscal Quarter ending December
31, 2005
	  	2.70 to 1.00

  

 G - 1 









			
	 Period

	  	Leverage Ratio


	 Each Fiscal Quarter beginning with Fiscal Quarter ending March 31, 2006 and continuing through and including Fiscal Quarter ending December
31, 2006
	  	2.60 to 1.00
	 Fiscal Quarter beginning with Fiscal Quarter ending March 31, 2007 and each Fiscal Quarter ending thereafter
	  	2.50 to 1.00

  
 (d) Maximum Senior
Leverage Ratio. Holdings and its Subsidiaries on a consolidated basis shall have, at the end of each Fiscal Quarter set forth below, a Senior Leverage Ratio as of the last day of such Fiscal Quarter and for the 12-month period then ended not
more than the following: 
  

			
	 Period

	  	Senior Leverage Ratio


	 Each Fiscal Quarter beginning with Fiscal Quarter ending March 31, 2004 and continuing through and including Fiscal Quarter ending December
31, 2004
	  	2.00 to 1.00
	 Each Fiscal Quarter beginning with Fiscal Quarter ending March 31, 2005 and continuing through and including Fiscal Quarter ending December
31, 2005
	  	1.90 to 1.00
	 Each Fiscal Quarter beginning with Fiscal Quarter ending March 31, 2006 and continuing through and including Fiscal Quarter ending December
31, 2006
	  	1.80 to 1.00
	 Fiscal Quarter beginning with Fiscal Quarter ending March 31, 2007 and each Fiscal Quarter ending thereafter
	  	1.70 to 1.00

  
 (e) Minimum Net
Worth. Holdings and its Subsidiaries on a consolidated basis shall maintain at all times Net Worth of not less than (i) $52,000,000 plus (ii) for each full Fiscal Quarter ending after the Closing Date and on or prior to the date of
determination for which consolidated net income of Holdings and its Subsidiaries is a positive number, an amount equal to 75% of such positive number plus (iii) an amount equal to one hundred percent (100%) of the amount of any equity raised
by or capital contributed to the Holdings or any of its Subsidiaries after the Closing Date (in the case of equity raised or capital contributed, net of the bona fide, reasonable expenses, if any, relating to the raising of such equity or such
capital contribution and paid to Persons who are not Affiliates of the Borrower), plus (iv) an amount equal to any increase in Net Worth of Holdings and its Subsidiaries on a consolidated basis as a result of any acquisitions or extraordinary
transaction occurring on or after the Closing Date. 
  

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 (f) Maximum Accounts Receivable DSO. Holdings and its Subsidiaries on a consolidated basis shall
maintain an Accounts Receivable DSO of not more than 70 days for each Fiscal Quarter ending on and after December 31, 2004. 
  
 Unless otherwise specifically provided herein, any accounting term used in the Agreement shall have the meaning customarily given such term in accordance
with GAAP, and all financial computations hereunder shall be computed in accordance with GAAP consistently applied. That certain items or computations are explicitly modified by the phrase “in accordance with GAAP” shall in no way be
construed to limit the foregoing. If any “Accounting Changes” (as defined below) occur and such changes result in a change in the calculation of the financial covenants, standards or terms used in the Agreement or any other Loan Document,
then Borrowers, Agent and Lenders agree to enter into negotiations in order to amend such provisions of the Agreement so as to equitably reflect such Accounting Changes with the desired result that the criteria for evaluating Borrowers’ and
their Subsidiaries’ financial condition shall be the same after such Accounting Changes as if such Accounting Changes had not been made; provided, however, that the agreement of Requisite Lenders to any required amendments of such
provisions shall be sufficient to bind all Lenders. “Accounting Changes” means (i) changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards
Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with similar functions), (ii) changes in accounting principles concurred in by Borrowers’ certified public accountants; (iii) purchase
accounting adjustments under FAS 141 or 142 and EITF 88-16, and the application of the accounting principles set forth in FASB 109, including the establishment of reserves pursuant thereto and any subsequent reversal (in whole or in part) of such
reserves; and (iv) the reversal of any reserves established as a result of purchase accounting adjustments. All such adjustments resulting from expenditures made subsequent to the Closing Date (including capitalization of costs and expenses or
payment of pre-Closing Date liabilities) shall be treated as expenses in the period the expenditures are made and deducted as part of the calculation of EBITDA in such period. If Agent, Borrowers and Requisite Lenders agree upon the required
amendments, then after appropriate amendments have been executed and the underlying Accounting Change with respect thereto has been implemented, any reference to GAAP contained in the Agreement or in any other Loan Document shall, only to the extent
of such Accounting Change, refer to GAAP, consistently applied after giving effect to the implementation of such Accounting Change. If Agent, Borrowers and Requisite Lenders cannot agree upon the required amendments within 30 days following the date
of implementation of any Accounting Change, then all Financial Statements delivered and all calculations of financial covenants and other standards and terms in accordance with the Agreement and the other Loan Documents shall be prepared, delivered
and made without regard to the underlying Accounting Change. For purposes of Section 8.1, a breach of a Financial Covenant contained in this Annex G shall be deemed to have occurred as of any date of determination by Agent or as of the
last day of any specified measurement period, regardless of when the Financial Statements reflecting such breach are delivered to Agent. 
  

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 ANNEX H (Section 1.1(d)) 
 to 
 CREDIT AGREEMENT 
  
 LENDERS’ WIRE TRANSFER INFORMATION 
  

			
	Name:	  	General Electric Capital Corporation
	Bank:	  	 Deutsche Bank/Banker’s Trust
 New York, New
York

	ABA #:	  	021-001-033
	Account #:	  	50-271-079
	Account Name:	  	GECC HH Cash Flow Collections
	Reference:	  	Pediatric Services of America, Inc.

  

 H - 1 








 ANNEX I (Section 11.10) 
 to 
 CREDIT AGREEMENT 
  
 NOTICE ADDRESSES 
  

	(A)	If to Agent or GE Capital, at 


	    	General Electric Capital Corporation 


	    	2 Bethesda Metro Center, Suite 600 


	    	Bethesda, MD 20814 


	    	Attention: Garry Tyran, Account Manager 


	    	Telecopier No.: (866) 863-7453 


	    	Telephone No.: (301) 664-9824 

  

	    	with copies to: 

  

	    	Kilpatrick Stockton LLP 


	    	1100 Peachtree Street, Suite 2800 


	    	Atlanta, GA 30309-4530 


	    	Attention: Colvin T. Leonard, Esq. 


	    	Telecopier No.: 404-815-6555 


	    	Telephone No.: 404-815-6500 

  

	    	General Electric Capital Corporation 


	    	2 Bethesda Metro Center, Suite 600 


	    	Bethesda, MD 20814 


	    	Attention: Christian V. Barnette, Corporate Counsel 


	    	Telecopier No.: (301) 664-9866 


	    	Telephone No.: (301) 664-9849 

  

	(B)	If to any Borrower, to Borrower Representative, at 

  

	    	Pediatric Services of America, Inc. 


	    	310 Technology Parkway 


	    	Norcross, GA 30092 


	    	Attention: Chief Financial Officer 


	    	Telecopier No.: (770) 263-9340 


	    	Telephone No.: (770) 209-7700 

  

	    	With copies to: 

  

	    	McKenna, Long & Aldridge LLP 


	    	303 Peachtree Street, Suite 5300 


	    	Atlanta, GA 30308 


	    	Attention: Thomas Wardell, Esq. 


	    	Telecopier No.: (404) 527-4198 


	    	Telephone No.: (404) 527-4990 

  

 I - 1 








 ANNEX J (from Annex A - Commitments definition) 
 to 
 CREDIT AGREEMENT

  

				
	 Lender(s):
	  	 	 
		
	 General Electric Capital Corporation
	  	 	 
		
	 Revolving Loan Commitment:
	  	$	10,000,000.00
		
	 Acquisition Loan Commitment:
	  	$	10,000,000.00

  

 J - 1