exv10w5






Exhibit 10.5




Execution Copy




TAX RECEIVABLE AGREEMENT (REORGANIZATIONS)




among




EMDEON INC.,




H&F ITR HOLDCO, L.P.,




GA ITR HOLDCO, L.P.,




and




GA-H&F ITR HOLDCO, L.P.




Dated as of August 17, 2009





 









 








TABLE OF CONTENTS




	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE II DETERMINATION OF CERTAIN REALIZED TAX BENEFIT	 	 	10	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Pre-IPO Basis Adjustment	 	 	10	 
	Section 2.2
	 	Tax Benefit Schedule	 	 	10	 
	Section 2.3
	 	Procedures, Amendments	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE III TAX BENEFIT PAYMENTS	 	 	12	 
	 
	 	 	 	 	 	 
	Section 3.1
	 	Payments	 	 	12	 
	Section 3.2
	 	No Duplicative Payments	 	 	12	 
	Section 3.3
	 	Pro Rata Payments; Coordination of Benefits With Other Tax Receivable Agreements	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE IV TERMINATION	 	 	14	 
	 
	 	 	 	 	 	 
	Section 4.1
	 	Early Termination and Breach of Agreement	 	 	14	 
	Section 4.2
	 	Early Termination Notice	 	 	15	 
	Section 4.3
	 	Payment upon Early Termination	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE V SUBORDINATION AND LATE PAYMENTS	 	 	15	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Subordination	 	 	15	 
	Section 5.2
	 	Late Payments by the Corporate Taxpayer	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE VI NO DISPUTES; CONSISTENCY; COOPERATION	 	 	16	 
	 
	 	 	 	 	 	 
	Section 6.1
	 	Participation in the Corporate Taxpayer’s and EBS#146;s Tax Matters	 	 	16	 
	Section 6.2
	 	Consistency	 	 	16	 
	Section 6.3
	 	Cooperation	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE VII MISCELLANEOUS	 	 	17	 
	 
	 	 	 	 	 	 
	Section 7.1
	 	Notices	 	 	17	 
	Section 7.2
	 	Counterparts	 	 	18	 
	Section 7.3
	 	Entire Agreement; No Third Party Beneficiaries	 	 	18	 
	Section 7.4
	 	Governing Law	 	 	18	 
	Section 7.5
	 	Severability	 	 	18	 
	Section 7.6
	 	Successors; Assignment; Amendments; Waivers	 	 	18	 
	Section 7.7
	 	Titles and Subtitles	 	 	19	 
	Section 7.8
	 	Resolution of Disputes	 	 	19	 
	Section 7.9
	 	Reconciliation	 	 	20	 






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	 	 	 	 	Page	 
	 
	Section 7.10
	 	Withholding	 	 	20	 
	Section 7.11
	 	Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets	 	 	21	 
	Section 7.12
	 	Confidentiality	 	 	21	 
	Section 7.13
	 	Change in Law	 	 	22	 
	Section 7.14
	 	Representations	 	 	23	 







ii









 








TAX RECEIVABLE AGREEMENT (REORGANIZATIONS)




          This TAX RECEIVABLE AGREEMENT (REORGANIZATIONS) (this “Agreement”), dated as of August
17, 2009, is hereby entered into by and among Emdeon Inc., a Delaware corporation (the
“Corporate Taxpayer”), H&F ITR Holdco, L.P., a Delaware limited partnership (the “HF
ITR Entity”), GA ITR Holdco, L.P., a Delaware limited partnership (the “GA ITR
Entity”), GA-H&F ITR Holdco L.P., a Delaware limited partnership (the “ITR Entity”),
and each of the successors and assigns thereto.




RECITALS




          WHEREAS, the Members (as defined below) hold or held member interests in EBS Master LLC, a
Delaware limited liability company (“EBS”), which is classified as a partnership for United
States federal income tax purposes;




          WHEREAS, the Corporate Taxpayer is the managing member of EBS, and holds and will hold,
directly and/or indirectly, member interests in EBS;




          WHEREAS, EBS Acquisition II LLC, a Delaware limited liability company (the “GA Corporate
Member”) and H&F Harrington Inc., a Delaware corporation (the “HF Corporate Member”)
are classified as associations taxable as corporations for U.S. federal income tax purposes;




          WHEREAS, pursuant to that certain Reorganization Agreement, dated as of August 4, 2009, among
the Corporate Taxpayer and the parties named therein, the GA Corporate Member and the HF Corporate
Member will become wholly owned subsidiaries of or will merge with Affiliates of the Corporate
Taxpayer (the “Reorganization”);




          WHEREAS, as a result of the Reorganization, the GA Corporate Member and the HF Corporate
Member will become or will merge with members of the consolidated group of which the Corporate
Taxpayer is the parent and the Corporate Taxpayer will be entitled to utilize certain net operating
losses and capital losses of the GA Corporate Member and the HF Corporate Member generated before
the IPO (as defined below) (the “NOLs”);




          WHEREAS, the income, gain, loss, expense and other Tax (as defined below) items of the
Corporate Taxpayer may be affected by (i) adjustments to the tax basis of the IPO Date Assets (as
defined below) attributable to the purchase of interests in EBS in connection with the transactions
described in the Purchase Agreement (as defined below) or the Merger Agreement (as defined below)
(the “Pre-IPO Basis Adjustments”), (ii) NOLs, and (iii) the Imputed Interest (as defined
below);




          WHEREAS, the parties to this Agreement desire to make certain arrangements with respect to the
effect of the NOLs, the Pre-IPO Basis Adjustments and Imputed Interest on the liability for Taxes
of the Corporate Taxpayer;




          WHEREAS, the existing shareholders of the Corporate Taxpayer and the existing shareholders of
the GA Corporate Member before the Reorganization (the “Existing GA 




1









 







Owners”), HFCP VI Domestic AIV, L.P., a Delaware limited partnership (“HFCP”),
Hellman & Friedman Capital Associates VI, L.P., a Delaware limited partnership (“HFCA”),
Hellman & Friedman Capital Executives VI, L.P., a Delaware limited partnership (“HFCE”),
Hellman & Friedman Investors VI, L.P., a Delaware limited partnership (“H&F GP” and
together with HFCP, HFCA and HFCE, the “HF Non-Corporate Members”), and H&F Harrington AIV
II, L.P., a Delaware limited partnership (“HF Harrington” and together with HF
Non-Corporate Members, the “HF Members”) own (directly or indirectly) certain entities or
have or will enter into certain transactions that will result in various tax benefits to the
Corporate Taxpayer, and the Existing GA Owners and the HF Members previously agreed that any and
all payments in respect of such tax benefits will be made 50% to the Existing GA Owners and 50% to
the HF Members (such agreement being reflected in the Fourth Amended and Restated Limited Liability
Company Agreement of EBS dated as of May 21, 2008);




          WHEREAS, the Existing GA Owners have contributed all of their rights to receive payments of
Tax savings related to the effect of the NOLs, the Pre-IPO Basis Adjustments and Imputed Interest
attributable to the Corporate Taxpayer and the GA Corporate Member to the GA ITR Entity in exchange
for ownership interests in the GA ITR Entity, and HF Harrington has contributed all of its rights
to receive payments of Tax savings related to the effect of the NOLs, the Pre-IPO Basis Adjustments
and Imputed Interest attributable to the HF Corporate Member to the HF ITR Entity in exchange for
ownership interests in the HF ITR Entity;




          WHEREAS, the GA ITR Entity and the HF ITR Entity have contributed all of their rights
(including their rights under this Agreement) to receive such payments of Tax savings attributable
to the effect of the NOLs, the Pre-IPO Basis Adjustments and Imputed Interest from the Corporate
Taxpayer to the ITR Entity in exchange for ownership interests in the ITR Entity; and




          WHEREAS, as a result of such contributions, the ITR Entity shall be a party to this Agreement.




          NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth herein, and intending to be legally bound hereby, the parties hereto agree as follows:




ARTICLE I




DEFINITIONS




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




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




2









 








          “Agreed Rate” means LIBOR plus 100 basis points.




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




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




          A “Beneficial Owner” of a security is a Person who directly or indirectly, through any
contract, arrangement, understanding, relationship or otherwise, has or shares: (i) voting power,
which includes the power to vote, or to direct the voting of, such security and/or (ii) investment
power, which includes the power to dispose of, or to direct the disposition of, such security. The
terms “Beneficially Own” and “Beneficial Ownership” shall have correlative
meanings.




          “Board” means the Board of Directors of the Corporate Taxpayer.




          “Business Day” means Monday through Friday of each week, except that a legal holiday
recognized as such by the government of the United States of America or the State of New York shall
not be regarded as a Business Day.




          “Change in Tax Law” is defined in Section 7.13 of this Agreement.




          “Change of Control” means the occurrence of any of the following events:





	 	(i)	 	any Person or any group of Persons acting together which would
constitute a “group” for purposes of Section 13(d) of the Securities and
Exchange Act of 1934, or any successor provisions thereto, excluding a group of
Persons which includes one or more Affiliates of Hellman & Friedman LLC and one
or more Affiliates of GA LLC, is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Corporate Taxpayer representing more than 50%
of the combined voting power of the Corporate Taxpayer’s then outstanding
voting securities; or
	 
	 	(ii)	 	the following individuals cease for any reason to constitute
a majority of the number of directors of the Corporate Taxpayer then serving:
individuals who, on the IPO Date, constitute the Board and any new director
whose appointment or election by the Board or nomination for election by the
Corporate Taxpayer’s shareholders was approved or recommended by a vote of at
least two-thirds (2/3) of the directors then still in office who either were
directors on the IPO Date or whose appointment, election or nomination for
election was previously so approved or recommended by the directors referred
to in this clause (ii); or
	 
	 	(iii)	 	there is consummated a merger or consolidation of the
Corporate Taxpayer with any other corporation or other entity, and, immediately
after the consummation of such merger or consolidation, either (x) the Board
immediately prior to the merger or consolidation does not constitute at least a
majority of the board of directors of the company surviving the 




3









 






	 	 	 	merger or, if
the surviving company is a Subsidiary, the ultimate parent thereof, or (y) the
voting securities of the Corporate Taxpayer immediately prior to such merger or
consolidation do not continue to represent or are not converted into more than
50% of the combined voting power of the then outstanding voting securities of
the Person resulting from such merger or consolidation or, if the surviving
company is a Subsidiary, the ultimate parent thereof; or
	 
	 	(iv)	 	the shareholders of the Corporate Taxpayer approve a plan
of complete liquidation or dissolution of the Corporate Taxpayer or there is
consummated an agreement or series of related agreements for the sale or other
disposition, directly or indirectly, by the Corporate Taxpayer of all or
substantially all of the Corporate Taxpayer’s assets, other than such sale or
other disposition by the Corporate Taxpayer of all or substantially all of the
Corporate Taxpayer’s assets to an entity, at least 50% of the combined voting
power of the voting securities of which are owned by shareholders of the
Corporate Taxpayer in substantially the same proportions as their ownership of
the Corporate Taxpayer immediately prior to such sale.




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




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




          “Control” means the possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of a Person, whether through ownership of voting
securities, by contract or otherwise.




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




          “Corporate Taxpayer Return” means the federal and/or state and/or local Tax Return, as
applicable, of the Corporate Taxpayer filed with respect to Taxes of any Taxable Year.




          “Cumulative Net Realized Tax Benefit” for a Taxable Year means the cumulative amount
of Realized Tax Benefits for all Taxable Years of the Corporate Taxpayer, up to and including such
Taxable Year, net of the cumulative amount of Realized Tax Detriments for the
same period. The Realized Tax Benefit and Realized Tax Detriment for each Taxable Year shall
be determined based on the most recent Tax Benefit Schedule or Amended Schedule, if any, in
existence at the time of such determination.




          “Default Rate” means LIBOR plus 500 basis points.





4









 








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




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




          “Early Termination Date” means the date of an Early Termination Notice for purposes of
determining the Early Termination Payment.




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




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




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




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




          “Early Termination Rate” means the lesser of (i) 6.5% per annum, compounded annually,
and (ii) LIBOR plus 100 basis points.




          “Existing GA Owners” is defined in the Recitals of this Agreement.




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




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




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




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




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




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




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




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




          “HF Non-Corporate Members” is defined in the Recitals of this Agreement.




          “Hypothetical Tax Liability” means, with respect to any Taxable Year, the liability
for Taxes of (i) the Corporate Taxpayer and (ii) without duplication, EBS, but only with
respect to Taxes imposed on EBS and allocable to the Corporate Taxpayer or to the other
members of the consolidated group of which the Corporate Taxpayer is the parent, in each case using
the same methods, elections, conventions and similar practices used on the relevant Corporate
Taxpayer Return, but (i) using the Non-Stepped Up Tax Basis, (ii) without taking into account the
use of available NOLs, if any, and (iii) excluding any deduction attributable to Imputed Interest;
provided, that the Non-Stepped Up Tax Basis and NOLs shall be based on the




5









 







IPO Date Asset
Disclosure Letter including amendments thereto. For the avoidance of doubt, Hypothetical Tax
Liability shall be determined without taking into account the carryover or carryback of any Tax
item (or portions thereof) that is attributable to the NOLs, the Pre-IPO Basis Adjustment or
Imputed Interest.




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




          “Independent Director” means Dinyar S. Devitre, Jim D. Kever, Philip M. Pead and any
other member of the Board who is not affiliated with any of the principal stockholders of the
Corporate Taxpayer and who is neither a current officer nor a former officer of the Corporate
Taxpayer or any of its Subsidiaries.




          “Investors Tax Receivable Agreement (Exchanges)” means the Tax Receivable Agreement
(Exchanges), dated as of August 17, 2009, by and among the Corporate Taxpayer, HF ITR Entity, GA
ITR Entity and the ITR Entity.




          “IPO” means the initial public offering of Class A common stock by the Corporate
Taxpayer.




          “IPO Date” means the closing date of the IPO.




          “IPO Date Asset” means an asset that is held by EBS, or by any of its direct or
indirect subsidiaries treated as a partnership or disregarded entity for purposes of the applicable
Tax, immediately prior to the IPO Date (“IPO Date Asset”). An IPO Date Asset also includes
any asset that is “substituted basis property” under Section 7701(a)(42) of the Code with respect
to an IPO Date Asset.




          “IPO Date Asset Disclosure Letter” is defined in Section 2.1 of this Agreement.




          “IRS” means the United States Internal Revenue Service.




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




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




          “LLC Agreement” means, with respect to EBS, the Sixth Amended and Restated Limited
Liability Company Agreement of EBS.




6









 








          “Management Tax Receivable Agreement” means the Tax Receivable Agreement (Management),
dated as of August 17, 2009, by and among the Corporate Taxpayer and certain members of the senior
management of EBS.




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




          “Members” means the HF Non-Corporate Members, the HF Corporate Member and the GA
Corporate Member.




          “Merger Agreement” means the Amended and Restated Agreement and Plan of Merger, dated
as of November 15, 2006, among Emdeon Corporation (now known as HLTH), EBS, EBS Acquisition LLC
(the predecessor of the Corporate Taxpayer) and certain other parties.




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




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




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




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




          “Person” means any individual, corporation, firm, partnership, joint venture, limited
liability company, estate, trust, business association, organization, governmental entity or other
entity.




          “Purchase Agreement” means the Securities Purchase Agreement, dated as of February 8,
2008, by and among HLTH, EBS, the GA Corporate Member, H&F Harrington AIV I, L.P., HFCP, HFCA, HFCE
and certain other parties.




          “Qualified Tax Advisor” means Paul, Weiss, Rifkind, Wharton & Garrison LLP, Simpson
Thacher & Bartlett LLP, Deloitte Tax LLP, or any other law or accounting firm that is nationally
recognized as being expert in Tax matters and that is reasonably acceptable to the Corporate
Taxpayer.




          “Pre-IPO Basis Adjustments” is defined in the Recitals of this Agreement.




          “Realized Tax Benefit” means, for a Taxable Year, the excess, if any, of the
Hypothetical Tax Liability over the actual liability for Taxes of (i) the Corporate Taxpayer and
(ii) without duplication, EBS, but only with respect to Taxes imposed on EBS and allocable to the
Corporate Taxpayer or to the other members of the consolidated group of which the
Corporate Taxpayer is the parent for such Taxable Year. If all or a portion of the actual
liability for such Taxes for the Taxable Year arises as a result of an audit by a Taxing Authority
of any




7









 







Taxable Year, such liability shall not be included in determining the Realized Tax Benefit
unless and until there has been a Determination.




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




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




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




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




          “Schedule” means any of the following: (i) the IPO Date Asset Disclosure Letter, (ii)
a Tax Benefit Schedule, or (iii) the Early Termination Schedule.




          “Senior Obligations” is defined in Section 5.1 of this Agreement.




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




          “Subsidiary Stock” means any stock or other equity interest in any subsidiary entity
of EBS that is treated as a corporation for United States federal income tax purposes.




          “Tax Benefit Payment” is defined in Section 3.1(b) of this Agreement.




          “Tax Benefit Schedule” is defined in Section 2.2 of this Agreement.




          “Tax Receivable Agreements” shall mean this Agreement, the Investors Tax Receivable
Agreement (Exchanges) and the Management Tax Receivable Agreement.




          “Tax Return” means any return, declaration, report or similar statement required to be
filed with respect to Taxes (including any attached schedules), including, without limitation, any
information return, claim for refund, amended return and declaration of estimated Tax.




          “Taxable Year” means a taxable year of the Corporate Taxpayer as defined in Section
441(b) of the Code or comparable section of state or local tax law, as applicable (and,



8









 






therefore,
for the avoidance of doubt, may include a period of less than 12 months for which a Tax Return is
made), ending on or after the IPO Date.




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




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




          “Treasury Regulations” means the final, temporary and proposed regulations under the
Code promulgated from time to time (including corresponding provisions and succeeding provisions)
as in effect for the relevant taxable period.




          “Valuation Assumptions” shall mean, as of an Early Termination Date, the assumptions
that (1) in each Taxable Year ending on or after such Early Termination Date, the Corporate
Taxpayer will have taxable income sufficient to fully utilize (i) the NOLs that have not been
previously utilized in determining a Tax Benefit Payment under this Agreement, subject to all
applicable limitations on the use of such NOLs and to assumption (3) below, and (ii) deductions
arising from the Pre-IPO Basis Adjustments and the Imputed Interest during such Taxable Year or
future Taxable Years in which such deductions would become available, (2) the United States federal
income tax rates and state and local income tax rates that will be in effect for each such Taxable
Year will be those specified for each such Taxable Year by the Code and other law as in effect on
the Early Termination Date, (3) any NOLs or loss carryovers generated by any Pre-IPO Basis
Adjustment or Imputed Interest and available as of the date of the Early Termination Schedule will
be utilized by the Corporate Taxpayer on a pro rata basis from the date of the Early Termination
Schedule through the scheduled expiration date of such NOLs or loss carryovers, (4) any
non-amortizable assets (other than any Subsidiary Stock) will be disposed of on the fifteenth
anniversary of the applicable Pre-IPO Basis Adjustment; provided, that in the event of a
Change of Control, such non-amortizable assets shall be deemed disposed of at the time of sale of
the relevant asset (if earlier than such fifteenth anniversary), and (5) any Subsidiary Stock will
be deemed never to be disposed of; provided, that, except in respect of a termination
payment pursuant to Section 7.13(b), if (i) the ITR Entity delivers to the Corporate Taxpayer a
written opinion of a Qualified Tax Advisor to the effect that as a result of a certain transaction
(or series of transactions), it is more likely than not that the tax basis in the amortizable or
depreciable assets of the Corporate Taxpayer will be increased by reference to the tax basis in
such Subsidiary Stock and the tax basis in such Subsidiary Stock will decrease accordingly, and
(ii) the Corporate Taxpayer determines that it is commercially reasonable to effectuate such
transaction (or series of transactions), then the Valuation Assumptions will take into account such
increased tax basis in the amortizable or depreciable assets of the Corporate Taxpayer.




9









 








ARTICLE II




DETERMINATION OF CERTAIN REALIZED TAX BENEFIT




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




          Section 2.2 Tax Benefit Schedule.




          (a) Tax Benefit Schedule. Within 90 calendar days after the filing of the United
States federal income tax return of the Corporate Taxpayer for any Taxable Year in which there is a
Realized Tax Benefit or Realized Tax Detriment, the Corporate Taxpayer shall provide to the ITR
Entity a schedule showing, in reasonable detail, the calculation of the Realized Tax Benefit or
Realized Tax Detriment for such Taxable Year (a “Tax Benefit Schedule”). The Tax Benefit
Schedule will become final as provided in Section 2.3(a) and may be amended as provided in Section
2.3(b) (subject to the procedures set forth in Section 2.3(b)).




          (b) Applicable Principles. Subject to Section 3.3(a), the Realized Tax Benefit or
Realized Tax Detriment for each Taxable Year is intended to measure the decrease or increase in the
actual liability for Taxes of the Corporate Taxpayer for such Taxable Year attributable to the
NOLs, the Pre-IPO Basis Adjustments and Imputed Interest, determined using a “with and without”
methodology. For the avoidance of doubt, the actual liability for Taxes will take into account the
deduction of the portion of the Tax Benefit Payment that must be accounted for as interest under
the Code based upon the characterization of Tax Benefit Payments as additional consideration
payable by the Corporate Taxpayer for the acquisition of the shares or assets of the GA Corporate
Member or the HF Corporate Member in connection with the Reorganization. Carryovers or carrybacks
of any Tax item attributable to the NOLs, the Pre-IPO Basis Adjustment and Imputed Interest shall
be considered to be subject to the rules of the Code and the Treasury Regulations or the
appropriate provisions of U.S. state and local income and franchise tax law, as applicable,
governing the use, limitation and expiration of carryovers or
carrybacks of the relevant type. If a carryover or carryback of any Tax item includes a
portion that is attributable to the NOLs, the Pre-IPO Basis Adjustment or Imputed Interest and
another portion that is not, such portions shall be considered to be used in accordance with the
“with and without” methodology.




10









 








          Section 2.3 Procedures, Amendments.




          (a) Procedure. Every time the Corporate Taxpayer delivers to the ITR Entity an
applicable Schedule under this Agreement, including any Amended Schedule delivered pursuant to
Section 2.3(b), but excluding any Early Termination Schedule or amended Early Termination Schedule,
the Corporate Taxpayer shall also (x) deliver to the ITR Entity schedules and work papers, as
determined by the Corporate Taxpayer or requested by the ITR Entity, providing reasonable detail
regarding the preparation of the Schedule and (y) allow the ITR Entity reasonable access at no cost
to the appropriate representatives at the Corporate Taxpayer, as determined by the Corporate
Taxpayer or requested by the ITR Entity, in connection with a review of such Schedule. Without
limiting the application of the preceding sentence, each time the Corporate Taxpayer delivers to
the ITR Entity a Tax Benefit Schedule, in addition to the Tax Benefit Schedule duly completed, the
Corporate Taxpayer shall deliver to the ITR Entity the Corporate Taxpayer Return, the reasonably
detailed calculation by the Corporate Taxpayer of the Hypothetical Tax Liability, the reasonably
detailed calculation by the Corporate Taxpayer of the actual Tax liability, as well as any other
work papers as determined by the Corporate Taxpayer or requested by the ITR Entity. An applicable
Schedule or amendment thereto shall become final and binding on all parties 30 calendar days from
the first date on which the ITR Entity has received the applicable Schedule or amendment thereto
unless the ITR Entity (i) within 30 calendar days after receiving an applicable Schedule or
amendment thereto, provides the Corporate Taxpayer with notice of a material objection to such
Schedule (“Objection Notice”) made in good faith or (ii) provides a written waiver of such
right of any Objection Notice within the period described in clause (i) above, in which case such
Schedule or amendment thereto becomes binding on the date the waiver is received by the Corporate
Taxpayer. If the parties, for any reason, are unable to successfully resolve the issues raised in
the Objection Notice within 30 calendar days after receipt by the Corporate Taxpayer of an
Objection Notice, the Corporate Taxpayer and the ITR Entity shall employ the reconciliation
procedures as described in Section 7.9 of this Agreement (the “Reconciliation Procedures”).




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




11









 








ARTICLE III




TAX BENEFIT PAYMENTS




          Section 3.1 Payments.




          (a) Payments. Within five (5) calendar days after a Tax Benefit Schedule delivered to
the ITR Entity becomes final in accordance with Section 2.3(a), the Corporate Taxpayer shall pay to
the ITR Entity for such Taxable Year the Tax Benefit Payment determined pursuant to Section 3.1(b).
Each such Tax Benefit Payment shall be made by wire transfer of immediately available funds to the
bank account previously designated by the ITR Entity to the Corporate Taxpayer or as otherwise
agreed by the Corporate Taxpayer and the ITR Entity. For the avoidance of doubt, no Tax Benefit
Payment shall be made in respect of estimated tax payments, including, without limitation, federal
estimated income tax payments. Notwithstanding anything herein to the contrary, in no event shall
the aggregate Tax Benefit Payments (excluding any amount accounted for as interest under the Code)
exceed $96,000,000 in respect of the Corporate Taxpayer, $63,000,000 in respect of the GA Corporate
Member, and $53,000,000 in respect of the HF Corporate Member.




          (b) A “Tax Benefit Payment” means an amount, not less than zero, equal to the sum of
the Net Tax Benefit and the Interest Amount. For the avoidance of doubt, for Tax purposes, the
Interest Amount shall not be treated as interest but shall instead be treated as additional
consideration for the acquisition of the assets or stock of the GA Corporate Member, the HF
Corporate Member in connection with the IPO and the Reorganization, unless otherwise required by
law. Subject to Section 3.3(a), the “Net Tax Benefit” for a Taxable Year shall
be an amount equal to the excess, if any, of 85% of the Cumulative Net Realized Tax Benefit as of
the end of such Taxable Year over the total amount of payments previously made under this Section
3.1 (excluding payments attributable to Interest Amounts); provided, for the avoidance of
doubt, that the ITR Entity shall not be required to return any portion of any previously made Tax
Benefit Payment. The “Interest Amount” shall equal the interest on the Net Tax Benefit
calculated at the Agreed Rate from the due date (without extensions) for filing the Corporate
Taxpayer Return with respect to Taxes for such Taxable Year until the Payment Date.
Notwithstanding the foregoing, for each Taxable Year ending on or after the date of a Change of
Control, all Tax Benefit Payments shall be calculated by utilizing Valuation Assumptions (1), (3),
(4) and (5), substituting in each case the terms “the closing date of a Change of Control” for an
“Early Termination Date.”




          Section 3.2 No Duplicative Payments. It is intended that the provisions of this Agreement will not result in duplicative payment
of any amount (including interest) required under this Agreement. It is also intended that the
provisions of this Agreement provide that Tax Benefit Payments are paid to the ITR Entity pursuant
to this Agreement. The provisions of this Agreement shall be construed in the appropriate manner
to ensure such intentions are realized.




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




          (a) Notwithstanding anything in Section 3.1 to the contrary, to the extent that the aggregate
tax benefit of the Corporate Taxpayer’s deduction with respect to the NOLs, the Pre-IPO Basis
Adjustments, the Basis Adjustments or Imputed Interest under the Tax Receivable Agreements (as such
terms are defined in each Tax Receivable Agreement) is limited in a particular Taxable Year because
the Corporate Taxpayer does not have sufficient taxable income, the limitation on the tax benefit
for the Corporate Taxpayer shall be allocated among the Tax Receivable Agreements (and among all
parties eligible for payments thereunder) in proportion to the respective amounts of Realized Tax
Benefits that would have been determined under the Tax Receivable Agreements if the Corporate
Taxpayer had sufficient taxable income so that there were no such limitation.




          (b) If for any reason the Corporate Taxpayer does not fully satisfy its payment obligations to
make all Tax Benefit Payments due under the Tax Receivable Agreements in respect of a particular
Taxable Year, then the Corporate Taxpayer and the ITR Entity agree that (i) the Corporate Taxpayer
shall pay the same proportion of each Tax Benefit Payment due under each of the Tax Receivable
Agreements in respect of such Taxable Year, without favoring one obligation over the other, and
(ii) no Tax Benefit Payment shall be made in respect of any Taxable Year until all Tax Benefit
Payments in respect of prior Taxable Years have been made in full.




          (c) To the extent that the Corporate Taxpayer makes payments to the ITR Entity in respect of a
particular Taxable Year in an amount greater than the payments that should have been made in
accordance with Section 3.3(b), then the ITR Entity shall be obligated to make payments to the
parties to the other Tax Receivable Agreements (other than the Corporate Taxpayer) in the amounts
necessary so that each party to the Tax Receivable Agreements shall have received the amount that
it would have received if all payments by the Corporate Taxpayer had been in accordance with
Section 3.3(b); provided, that the ITR Entity’s obligation to pay over to the parties to
the other Tax Receivable Agreements amounts received from the Corporate Taxpayer pursuant to this
Section 3.3(c) shall terminate on the one year anniversary of the receipt by the ITR Entity of such
amounts.




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




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ARTICLE IV




TERMINATION




          Section 4.1 Early Termination and Breach of Agreement.









          (a) With the written approval of a majority of the Independent Directors, the Corporate
Taxpayer may terminate this Agreement with respect to all amounts payable to the ITR Entity at any
time by paying to the ITR Entity the Early Termination Payment; provided, however,
that this Agreement shall only terminate upon the receipt of the Early Termination Payment by the
ITR Entity, and provided, further, that the Corporate Taxpayer may withdraw any
notice to execute its termination rights under this Section 4.1(a) prior to the time at which any
Early Termination Payment has been paid. Upon payment of the Early Termination Payment by the
Corporate Taxpayer, neither the ITR Entity nor the Corporate Taxpayer shall have any further
payment obligations under this Agreement, other than for any (a) Tax Benefit Payment agreed to by
the Corporate Taxpayer and the ITR Entity as due and payable but unpaid as of the Early Termination
Notice and (b) Tax Benefit Payment due for the Taxable Year ending with or including the date of
the Early Termination Notice (except to the extent that the amount described in clause (b) is
included in the Early Termination Payment).




          (b) In the event that the Corporate Taxpayer breaches any of its material obligations under
this Agreement, whether as a result of failure to make any payment when due, failure to honor any
other material obligation required hereunder or by operation of law as a result of the rejection of
this Agreement in a case commenced under the Bankruptcy Code or otherwise, then all obligations
hereunder shall be accelerated and such obligations shall be calculated as if an Early Termination
Notice had been delivered on the date of such breach and shall include, but not be limited to, (1)
the Early Termination Payment calculated as if an Early Termination Notice had been delivered on
the date of a breach, (2) any Tax Benefit Payment agreed to by the Corporate Taxpayer and the ITR
Entity as due and payable but unpaid as of the date of a breach, and (3) any Tax Benefit Payment
due for the Taxable Year ending with or including the date of a breach. Notwithstanding the
foregoing, in the event that the Corporate Taxpayer breaches this Agreement, the ITR Entity shall
be entitled to elect to receive the amounts set forth in clauses (1), (2) and (3) above or to seek
specific performance of the terms hereof. The parties agree that the failure to make any payment
due pursuant to this Agreement within three months of the date such payment is due shall be deemed
to be a breach of a material obligation under this Agreement for all purposes of this Agreement,
and that it will not be considered to be a breach of a material obligation under this Agreement to
make a payment due pursuant to this Agreement within three months of the date such payment is due.
Notwithstanding anything in this Agreement to the contrary, it shall not be a breach of this
Agreement if the Corporate Taxpayer fails to make any Tax Benefit Payment when due to the extent
that the Corporate Taxpayer has insufficient funds to make such payment; provided that the
interest provisions of Section 5.2 shall apply to such late payment (unless the Corporate Taxpayer
does not have sufficient cash to make such payment as a result of limitations imposed by existing
credit agreements to which EBS is a party, in which case Section 5.2 shall apply, but the Default
Rate shall be replaced by the Agreed Rate).




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          Section 4.2 Early Termination Notice. If the Corporate Taxpayer chooses to exercise its right of early termination under Section
4.1 above, the Corporate Taxpayer shall deliver to the ITR Entity notice of such intention to
exercise such right (“Early Termination Notice”) and a schedule (the “Early Termination
Schedule”) specifying the Corporate Taxpayer’s intention to exercise such right and showing in
reasonable detail the calculation of the Early Termination Payment for the ITR Entity. The Early
Termination Schedule shall become final and binding on all parties 30 calendar days from the first
date on which the ITR Entity has received such Schedule or amendment thereto unless the ITR Entity
(i) within 30 calendar days after receiving the Early Termination Schedule, provides the Corporate
Taxpayer with notice of a material objection to such Schedule made in good faith (“Material
Objection Notice”) or (ii) provides a written waiver of such right of a Material Objection
Notice within the period described in clause (i) above, in which case such Schedule becomes binding
on the date the waiver is received by the Corporate Taxpayer (the “Early Termination Effective
Date”). If the parties, for any reason, are unable to successfully resolve the issues raised
in such notice within 30 calendar days after receipt by the Corporate Taxpayer of the Material
Objection Notice, the Corporate Taxpayer and the ITR Entity shall employ the Reconciliation
Procedures.




          Section 4.3 Payment upon Early Termination.




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




          (b) “Early Termination Payment” shall equal the present value, discounted at the Early
Termination Rate as of the Early Termination Effective Date, of all Tax Benefit Payments that would
be required to be paid by the Corporate Taxpayer to the ITR Entity beginning from the Early
Termination Date and assuming that the Valuation Assumptions are applied.




ARTICLE V




SUBORDINATION AND LATE PAYMENTS




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




15









 








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




ARTICLE VI




NO DISPUTES; CONSISTENCY; COOPERATION




          Section 6.1 Participation in the Corporate Taxpayer’s and EBS’s Tax Matters. Except as otherwise provided herein, the Corporate Taxpayer shall have full responsibility
for, and sole discretion over, all Tax matters concerning the Corporate Taxpayer and EBS, including
without limitation the preparation, filing or amending of any Tax Return and defending, contesting
or settling any issue pertaining to Taxes. Notwithstanding the foregoing, the Corporate Taxpayer
shall notify the ITR Entity of, and keep the ITR Entity reasonably informed with respect to, the
portion of any audit of the Corporate Taxpayer and EBS by a Taxing Authority the outcome of which
is reasonably expected to affect the rights and obligations of the ITR Entity under this Agreement,
and shall provide to the ITR Entity reasonable opportunity to provide information and other input
to the Corporate Taxpayer, EBS and their respective advisors concerning the conduct of any such
portion of such audit; provided, however, that the Corporate Taxpayer and EBS shall
not be required to take any action that is inconsistent with any provision of the LLC Agreement.




          Section 6.2 Consistency. The Corporate Taxpayer and the ITR Entity agree to report and cause to be reported for all
purposes, including federal, state and local Tax purposes and financial reporting purposes, all
Tax-related items (including, without limitation, the Pre-IPO Basis Adjustments and each Tax
Benefit Payment) in a manner consistent with that specified by the Corporate Taxpayer in any
Schedule required to be provided by or on behalf of the Corporate Taxpayer under this Agreement
unless otherwise required by law.




          Section 6.3 Cooperation. The ITR Entity shall (a) furnish to the Corporate Taxpayer in a timely manner such
information, documents and other materials as the Corporate Taxpayer may reasonably request for
purposes of making any determination or computation necessary or
appropriate under this Agreement, preparing any Tax Return or contesting or defending any
audit, examination or controversy with any Taxing Authority, (b) make itself available to the
Corporate Taxpayer and its representatives to provide explanations of documents and materials and
such other information as the Corporate Taxpayer or its representatives may reasonably request in
connection with any of the matters described in clause (a) above, and (c) reasonably cooperate in
connection with any such matter, and the Corporate Taxpayer shall reimburse the ITR Entity for any
reasonable third-party costs and expenses incurred pursuant to this Section.




16









 








ARTICLE VII




MISCELLANEOUS




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



If to the Corporate Taxpayer, to:



3055 Lebanon Pike, Suite 1000

Nashville, TN 37214

Telephone: (615) 932-3000

Facsimile: (615) 340-6153

Attention: General Counsel



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

to:



Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Telephone: (212) 373-3000

Facsimile: (212) 757-3990

Attention: John C. Kennedy, Esq.



If to the ITR Entity, to:



c/o General Atlantic Service Company, LLC

3 Pickwick Plaza

Greenwich, CT 06830

Telephone: (203) 629-8600

Facsimile: (203) 618-9207

Attention: Christopher G. Lanning, Esq.



c/o Hellman & Friedman LLC

One Maritime Plaza

12th Floor

San Francisco, CA 94111

Telephone: (415) 788-5111

Facsimile: (415) 788-0176

Attention: Arrie Park, General Counsel





17









 







Any party may change its address or fax number by giving the other party written notice of its new
address or fax number in the manner set forth above.




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




          Section 7.3 Entire Agreement; No Third Party Beneficiaries. This Agreement constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, among the parties with respect to the subject matter hereof.
Except to the extent provided under Section 3.3, this Agreement shall be binding upon and inure
solely to the benefit of each party hereto and their respective successors and permitted assigns,
and nothing in this Agreement, express or implied, is intended to or shall confer upon any other
Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.




          Section 7.4 Governing Law. This Agreement shall be governed by, and construed in accordance with, the law of the State
of New York, without regard to the conflicts of laws principles thereof that would mandate the
application of the laws of another jurisdiction.




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




          Section 7.6 Successors; Assignment; Amendments; Waivers.




          (a) The ITR Entity may assign any of its rights under this Agreement to any Person as long as
such transferee has executed and delivered, or, in connection with such transfer, executes and
delivers, a joinder to this Agreement, in form and substance reasonably satisfactory to the
Corporate Taxpayer, agreeing to become an ITR Entity for all purposes of this Agreement, except as
otherwise provided in such joinder.




          (b) No provision of this Agreement may be amended unless such amendment is approved in writing
by both the Corporate Taxpayer and the ITR Entity; provided, that, the definition of Change
of Control cannot be amended without the written approval of a majority of the Independent
Directors. No provision of this Agreement may be waived unless such waiver is in writing and
signed by the party against whom the waiver is to be effective.




18









 








          (c) All of the terms and provisions of this Agreement shall be binding upon, shall inure to
the benefit of and shall be enforceable by the parties hereto and their respective successors,
assigns, heirs, executors, administrators and legal representatives. The Corporate Taxpayer shall
require and cause any direct or indirect successor (whether by purchase, merger, consolidation or
otherwise) to all or substantially all of the business or assets of the Corporate Taxpayer, by
written agreement, expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Corporate Taxpayer would be required to perform if no such succession
had taken place.




          Section 7.7 Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of
reference only and are not to be considered in construing this Agreement.




          Section 7.8 Resolution of Disputes.




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




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




          (c) (i) EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF COURTS LOCATED IN NEW
YORK, NEW YORK FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION 7.8, OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED
ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT. Such ancillary judicial
proceedings include any suit, action or proceeding to compel arbitration, to obtain temporary or
preliminary




19









 







judicial relief in aid of arbitration, or to confirm an arbitration award. The parties
acknowledge that the fora designated by this paragraph (c) have a reasonable relation to this
Agreement, and to the parties’ relationship with one another; and




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



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




          Section 7.10 Withholding. The Corporate Taxpayer shall be entitled to deduct and withhold from any payment payable
pursuant to this Agreement such amounts as the Corporate Taxpayer is required to deduct and
withhold with respect to the making of such



20









 






payment under the Code or any provision of state, local
or foreign tax law. To the extent that amounts are so withheld and paid over to the appropriate
Taxing Authority by the Corporate Taxpayer, such withheld amounts shall be treated for all purposes
of this Agreement as having been paid to the ITR Entity.




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




          (a) If the Corporate Taxpayer is or becomes a member of an affiliated or consolidated group of
corporations that files a consolidated income tax return pursuant to Sections 1501 et seq. of the
Code or any corresponding provisions of state or local law, then: (i) the provisions of this
Agreement shall be applied with respect to the group as a whole; and (ii) Tax Benefit Payments,
Early Termination Payments and other applicable items hereunder shall be computed with reference to
the consolidated taxable income of the group as a whole.




          (b) If any entity that is obligated to make a Tax Benefit Payment or Early Termination Payment
hereunder transfers one or more assets to a corporation (or a Person
classified as a corporation for U.S. income tax purposes) with which such entity does not file
a consolidated tax return pursuant to Section 1501 of the Code, such entity, for purposes of
calculating the amount of any Tax Benefit Payment or Early Termination Payment (e.g., calculating
the gross income of the entity and determining the Realized Tax Benefit of such entity) due
hereunder, shall be treated as having disposed of such asset in a fully taxable transaction on the
date of such contribution. The consideration deemed to be received by such entity shall be equal
to the fair market value of the contributed asset. For purposes of this Section 7.11, a transfer
of a partnership interest shall be treated as a transfer of the transferring partner’s share of
each of the assets and liabilities of that partnership.




          Section 7.12 Confidentiality. The ITR Entity and each of its assignees acknowledge and agree that the information of the
Corporate Taxpayer is confidential and, except in the course of performing any duties as necessary
for the Corporate Taxpayer and its Affiliates, as required by law or legal process or to enforce
the terms of this Agreement, such person shall keep and retain in the strictest confidence and not
disclose to any Person any confidential matters, acquired pursuant to this Agreement, of the
Corporate Taxpayer and its Affiliates and successors, concerning EBS and its Affiliates and
successors or the Members, learned by the ITR Entity heretofore or hereafter. This Section 7.12
shall not apply to (i) any information that has been made publicly available by the Corporate
Taxpayer or any of its Affiliates, becomes public knowledge (except as a result of an act of the
ITR Entity in violation of this Agreement) or is generally known to the business community and (ii)
the disclosure of information to the extent necessary for the ITR Entity to prepare and file its
Tax Returns, to respond to any inquiries regarding the same from any taxing authority or to
prosecute or defend any action, proceeding or audit by any taxing authority with respect to such
returns. Notwithstanding anything to the contrary herein, the ITR Entity and each of its assignees
(and each employee, representative or other agent of the ITR Entity or its assignees, as
applicable) may disclose to any and all Persons, without limitation of any kind, the tax treatment
and tax structure of the Corporate Taxpayer, EBS, the ITR Entity, the Members and their Affiliates,
and any of their transactions, and all materials of any kind (including opinions or other tax
analyses) that are provided to the ITR Entity relating to such tax treatment and tax structure.




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If the ITR Entity or an assignee commits a breach, or threatens to commit a breach, of any of the
provisions of this Section 7.12, the Corporate Taxpayer shall have the right and remedy to have the
provisions of this Section 7.12 specifically enforced by injunctive relief or otherwise by any
court of competent jurisdiction without the need to post any bond or other security, it being
acknowledged and agreed that any such breach or threatened breach shall cause irreparable injury to
the Corporate Taxpayer or any of its Subsidiaries or the Members and the accounts and funds managed
by the Corporate Taxpayer and that money damages alone shall not provide an adequate remedy to such
Persons. Such rights and remedies shall be in addition to, and not in lieu of, any other rights
and remedies available at law or in equity.




          Section 7.13 Change in Law.




          (a) Notwithstanding anything herein to the contrary, if, in connection with an actual or
proposed change in law, the ITR Entity reasonably believes that the existence of this Agreement
could cause income (other than income arising from receipt of a payment under this Agreement)
recognized by any member affiliated with the ITR Entity (or direct or indirect equity holders in
such member) upon the IPO (or the Reorganization) or any Exchange (as such term is defined in the
other Tax Receivable Agreements) to be treated as ordinary income rather than capital gain (or
otherwise taxed at ordinary income rates) for United States federal income tax purposes or would
have other material adverse tax consequences to the ITR Entity or any direct or indirect owner of
the ITR Entity (a “Change in Tax Law”), then at the election of the ITR Entity and to the
extent specified by the ITR Entity, this Agreement (i) shall cease to have further effect, (ii)
shall not apply to an IPO Date Asset, or (iii) shall otherwise be amended in a manner determined by
the ITR Entity provided that such amendment shall not result in an increase in payments under this
Agreement at any time as compared to the amounts and times of payments that would have been due in
the absence of such amendment (assuming that no payment is due under Section 7.13(b)).




          (b) If the ITR Entity delivers to the Corporate Taxpayer a notice of acceleration accompanied
by an opinion of a Qualified Tax Advisor to the effect that based upon such Change in Tax Law
(taking into account any applicable administrative pronouncements or rulings, formal or informal
Congressional actions or statements, or otherwise) (i) the existence of this Agreement will more
likely than not cause income (other than income arising from receipt of a payment under this
Agreement) recognized by any of the HF Non-Corporate Members (or direct or indirect equity holders
in such Member) upon any Exchange (as such term is defined in the other Tax Receivable Agreements)
to be treated as ordinary income rather than capital gain (or otherwise taxed at ordinary income
rates) for United States federal income tax purposes or would have other material adverse tax
consequences to the ITR Entity (or any direct or indirect owner thereof), and (ii) substantially
all of such income described in Section 7.13(b)(i) above would be more likely than not taxable at
capital gain rates or such other material adverse tax consequences would be avoided as a result of
making the election described in this Section 7.13(b), then the ITR Entity may elect to cause the
Corporate Taxpayer to make a lump sum payment in lieu of the Tax Benefit Payments otherwise
provided in this Agreement in accordance with the procedures described in Article IV, in an amount
equal to the sum of the present values of all such Tax Benefits Payments, substituting in each case
“70%” for “85%” in the calculation of Net Tax Benefit, discounted at the Early Termination Rate as
of the effective date specified in the notice of acceleration, and assuming the Valuation
Assumptions are applied;




22









 







provided, that no amount shall be payable under this Section
7.13(b) unless, with respect to at least 50% of the Units (as defined in the Investors Tax
Receivable Agreement (Exchanges)) held by the HF Non-Corporate Members at the time of execution of
the Investors Tax Receivable Agreement (Exchanges), all rights to payments under the Investors Tax
Receivable Agreement (Exchanges) shall have been terminated pursuant to Section 7.13(a) thereof;
provided, further, that if such payment would be due on or after the effective date
of the applicable Change in Tax Law, at the election of the ITR Entity, such payment shall to the
extent reasonably practicable instead be made no later than the date prior to the effective date of
the applicable Change in Tax Law (using the best available estimates and information at such time).




          (c) The Corporate Taxpayer shall have the right to satisfy its obligation to make a lump sum
payment under Section 7.13(b) by issuing a subordinated debt instrument of the Corporate Taxpayer,
with a maturity date seven years after issuance, with interest payment required to be made
quarterly, and bearing interest at a rate equal to the lesser of (i) 6% per annum and (ii) LIBOR
plus 200 basis points.




          (d) Notwithstanding anything herein to the contrary, Section 3.3(b) and Section 3.3(c) of the
Tax Receivable Agreements shall not apply to payments made by the Corporate Taxpayer pursuant to
this Section 7.13.




          Section 7.14 Representations.




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




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




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




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




	 	 	 	 	 
	 	EMDEON INC.

 	 
	 	By:  	/s/
 Gregory T. Stevens	 
	 	 	Name:  	Gregory T. Stevens 	 
	 	 	Title:  	Executive Vice President, General 
Counsel
and Secretary 	 
	 



Signature Page to Tax Receivable Agreement (Reorganizations)



 









 







	 	 	 	 	 
	 	GA-H&F ITR HOLDCO, L.P.

 	 
	 	By:  	 ITR Holdco GP LLC,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                                              /s/ Christopher G. Lanning
 	 
	 	 	Name:  	Christopher G. Lanning 	 
	 	 	Title:  	Manager 	 
	 
	 	 	 
	 	By:  	                                              /s/ Allen R. Thorpe
 	 
	 	 	Name:  	Allen R. Thorpe 	 
	 	 	Title:  	Manager 	 
	 



Signature Page to Tax Receivable Agreement (Reorganizations)




 









 








	 	 	 	 	 
	 	H&F ITR HOLDCO, L.P.

 	 
	 	By:  	   Hellman & Friedman Investors VI, L.P.,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                    Hellman & Friedman LLC,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                                              /s/ Allen R. Thorpe
 	 
	 	 	Name:  	Allen R. Thorpe 	 
	 	 	Title:  	Managing Director 	 
	 



Signature Page to Tax Receivable Agreement (Reorganizations)




 









 








	 	 	 	 	 
	 	GA ITR HOLDCO, L.P.

 	 
	 	By:  	   General Atlantic LLC,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                         /s/ Thomas Murphy
 	 
	 	 	Name:  	Thomas Murphy 	 
	 	 	Its:  Managing Director 	 
	 




Signature Page to Tax Receivable Agreement (Reorganizations)