Document:

exv4w1

Exhibit 4.1

Spartech Corporation

2004 Equity Compensation Plan

Article I

Purpose And Definitions

     1.1 Purpose. This Spartech Corporation 2004 Equity Compensation Plan (the “Plan”) has
been established by Spartech Corporation (the “Company”) to promote the long-term financial
interest of the Company and its shareholders by (i) enhancing the Company’s ability to attract and
retain persons eligible to participate in the Plan, through incentive compensation opportunities
that are competitive with those of other similar companies, and (ii) providing an incentive for the
participants in the Plan to identify their interests with those of the Company’s other
shareholders, through compensation based on the value of the Company’s Common Stock.

     1.2 Definitions.

     “Award” means a right granted to an Eligible Person to receive Options/Stock-Settled Stock
Appreciation Rights, Restricted Stock or Restricted Stock Units pursuant to the Plan.

     “Board” means the Board of Directors of the Company.

     “Committee” means (i) the Governance Committee of the Board with respect to Awards to members
of the Board in their capacity as directors of the Company, or (ii) the Compensation Committee of
the Board with respect to all other Awards.

     “Common Stock” means the authorized common stock of the Company, subject to any adjustments
under Section 2.3.

     “Company” has the meaning stated in Section 1.1.

     “Eligible Person” means:

	 	(i)	 	An employee of the Company or any of its Subsidiaries, with respect to Awards of
Options/Stock-Settled Stock Appreciation Rights or Restricted Stock; or
	 
	 	(ii)	 	A management or highly compensated employee of the Company or any of its
Subsidiaries, with respect to Awards of Restricted Stock Units; or
	 
	 	(iii)	 	A non-employee member of the Board, with respect to Awards of
Options/Stock-Settled Stock Appreciation Rights (other than Incentive Stock Options),
Restricted Stock, or Restricted Stock Units.

     “Incentive Stock Option” means an Option/Stock-Settled Stock Appreciation Right which is
intended to satisfy the requirements applicable to an “incentive stock option” described in Section
422(b) of the Internal Revenue Code.

     “Option/Stock-Settled Stock Appreciation Right” means a right whose value is based on the
appreciation in value of a specified number of shares of Common Stock over a specified exercise or
base price, such as a right to purchase such shares at the exercise price or a right to receive a
net number of shares equal in value to the amount of such appreciation over such exercise or base
price.

     “Participant” means an Eligible Person who has received an Award under the Plan.

 

 

					
	2004 Equity Compensation Plan
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     “Performance Units” means Restricted Stock Units wherein the number of shares to be received
is based on whether and to what extent the Company’s performance has achieved certain performance
goals stated in the Award.

     “Plan” has the meaning stated in Section 1.1.

     “Restricted Stock” means shares of Common Stock issued subject to certain terms and conditions
stated in the Award.

     “Restricted Stock Units” means a right to receive a specified number of shares of Common Stock
in the future subject to certain terms and conditions stated in the Award.

     “Subsidiary” means a corporation, limited liability company, partnership, joint venture or
other business entity of which at least a 50% voting or profits interest is owned, directly or
indirectly, by the Company, and any other business venture designated by the Committee in which the
Company has a significant interest as determined in the discretion of the Committee.

Article II

Granting of Awards

     2.1 Participation. Subject to the other terms and conditions of the Plan, the
Committee shall determine and designate, from time to time in its sole discretion, from among the
Eligible Persons, those persons who will be granted one or more Awards under the Plan and who will
thereby become Participants in the Plan. The Committee shall also approve the names of all persons
to whom Awards are proposed to be made, and shall determine, within the limits set forth in the
Plan, the type of Award, the maximum number of shares to be issued pursuant to the Award, the
exercise price (if any) to be paid by the Participant, the vesting schedule (if any), and the other
terms and conditions of any Award to be granted hereunder. The Committee may receive the
recommendations of the officers and managers of the Company with respect thereto.

     2.2 Shares Available for Awards. As of the date hereof, there are 667,158 shares
still available under the Plan from the original authorization. As of this Amendment there will be
an additional 2,500,000 shares. Award shares may be issued either from authorized but unissued
shares or from shares reacquired by the Company, whether purchased in the open market or in private
transactions. Shares subject to issuance under Awards which expire or are cancelled without
delivery of shares shall again become available for Awards under the Plan; but shares subject to
issuance under Awards which are settled in cash, and shares which are withheld to pay the exercise
price or tax withholding with respect to an Award, shall not be available for new Awards.

     2.3 Adjustments to Shares. Upon any stock split, reverse stock split or stock
dividend in excess of 5%, or any other recapitalization, combination or exchange affecting the
Common Stock generally, the number and kind of shares of Common Stock available for issuance under
the Plan shall be appropriately and automatically adjusted. The Committee may in its discretion
provide for similar adjustments of outstanding Awards upon any of such events or in the event of
any other combination or exchange of shares, spin-off, split-up, merger or consolidation or similar
event affecting the Common Stock generally, in order to preserve the benefits or potential benefits
of the Awards.

     2.4 Limitation on Individual Grants. No Participant may receive Awards under the Plan
during any fiscal year of the Company for more than 2% of the shares of Common Stock outstanding
(i.e. excluding treasury shares) as of the end of the Company’s previous fiscal year.

 

 

					
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     2.5 Limited Delegation of Authority. Notwithstanding Section 2.1 or any other
provision of the Plan, the Board may, from time to time by express resolution, pursuant to section
157(c) of the Delaware General Corporation Law and subject to such limitations as are set out in
such section or included in such Board resolution, authorize one or more officers of the Company to
do one or both of the following: (i) designate Eligible Persons other than the Company’s executive
officers and directors to be recipients of Awards and (ii) determine the type and size of Awards to
be received by such Eligible Persons.

Article III

Terms Of Awards

     3.1 Types Of Awards. Subject to the provisions of the Plan and applicable laws and
regulations, Awards may be made in the form of (i) Options/Stock-Settled Stock Appreciation Rights,
(ii) Restricted Stock, or (iii) Restricted Stock Units. The terms and conditions of each Award
shall be determined by the Committee in its sole discretion and may include, by way of example,
continued service with the Company for a stated period of time and/or the attainment of stated
performance goals by the Participant, the Company or any business unit thereof.

     3.2 Terms of Options/Stock-Settled Stock Appreciation Rights.

     (a) With respect to each Option/Stock-Settled Stock Appreciation Right, the Committee shall
determine in its discretion the terms of the Award, including without limitation:

	 	(i)	 	The exercise or base price per share, provided that the exercise or base price
shall not be less than the fair market value of the shares subject to the Award on the
date the Award is granted, or if greater, the par value of the shares. Except as
incidental to adjustments under Section 2.3, the exercise or base price of an outstanding
Option/Stock-Settled Stock Appreciation Right may not be decreased after the date of
grant, nor may an outstanding Option/Stock-Settled Stock Appreciation Right be
surrendered to the Company as consideration for the grant of a new Option/Stock-Settled
Stock Appreciation Right with a lower exercise or base price.
	 
	 	(ii)	 	The times at which any Option/Stock-Settled Stock Appreciation Right granted
hereunder may be exercised, including the times at which, and/or the conditions subject
to which, the Option/Stock-Settled Stock Appreciation Right will first become exercisable
in whole or in part, which may include, by way of example and not limitation, continued
service with the Company for a stated period of time and/or the attainment of stated
performance goals by the Participant, the Company or any business unit thereof.
	 
	 	(iii)	 	Such other terms as the Committee may deem appropriate, including without
limitation the procedures for exercising the Option/Stock-Settled Stock Appreciation
Right, the manner of payment of the exercise price and any tax withholding obligations,
and any restrictions on the exercise or transfer of the Option/Stock-Settled Stock
Appreciation Right or on the transfer of the underlying Shares.
	 
	 	(iv)	 	No Option/Stock-Settled Stock Appreciation Right granted under the Plan shall
contain any “reload” provision entitling the optionee or holder to the automatic grant of
additional options or rights in connection with any exercise of the original Award.

 

 

					
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     3.3 Terms of Incentive Stock Options. In addition to the other provisions of the
Plan, Incentive Stock Options shall be subject to all laws and regulations from time to time
applicable to “incentive stock options,” and shall be subject to the following specific provisions:

	 	(i)	 	Members of the Board who are not also employees may not receive Incentive Stock
Options.
	 
	 	(ii)	 	No Incentive Stock Option shall be exercisable in whole or in part later than the
day preceding the 10th anniversary of the grant date.
	 
	 	(iii)	 	Incentive Stock Options may not be transferred other than by will or the laws of
descent and distribution, and may be exercised during the lifetime of the Participant to
whom it is granted only by such Participant.
	 
	 	(iv)	 	An Incentive Stock Option granted to a person who at the time of the grant owns
stock possessing more than 10% of the total combined voting power of all classes of stock
of the Company or any subsidiary or parent company (A) shall have an exercise price at
least 110% of the fair market value of the shares subject to the Incentive Stock Option
on the date the Incentive Stock Option is granted and (B) shall not be exercisable after
the expiration of five years from the date the Incentive Stock Option is granted.

To the extent that an Incentive Stock Option does not meet the requirements of Section 422(b) of
the Internal Revenue Code the Award shall not be void but shall be treated as an
Option/Stock-Settled Stock Appreciation Right other than an Incentive Stock Option. No Participant
shall have any claim for damages or any other recourse against the Company, the Board or the
Committee because of the failure of any Option/Stock-Settled Stock Appreciation Right to be an
“incentive stock option.”

     3.4 Rights of Holders of Restricted Stock. Except as otherwise provided in an
individual Award, a Participant who receives Restricted Stock shall have all rights as a
stockholder with respect to such shares, including the right to vote the shares and receive
dividends and other distributions.

     3.5 Rights of Holders of Restricted Stock Units. Subject to the restrictions set
forth in an individual Award, a Participant who receives Restricted Stock Units shall be eligible
to receive, at the expiration of the applicable restricted period, one share of Common Stock for
each Restricted Stock Unit awarded (or in the case of Performance Units, more or less than one
share depending on whether and to what extent the Company’s performance has achieved the
performance goals stated in the Award), at which time the Company shall issue to each such
Participant that number of shares of Common Stock. Except as otherwise provided in an individual
Award, a Participant who receives Restricted Stock Units shall have no rights as a stockholder with
respect to such Restricted Stock Units until such time as shares for such Common Stock are issued
to the Participant.

     3.6 Vesting. Awards to employees of the Company or a Subsidiary may not vest earlier
than at a rate of 33-1/3% per year from the date of grant, except upon the death, disability or
retirement of the employee or a change in control of the Company.

     3.7 Awards to Be in Writing. The grant, terms and conditions of each Award shall be
evidenced by a written agreement or other written documentation, a copy of which shall be provided
to the Participant. The Committee may require the Participant to execute such agreement or
otherwise accept the grant and terms as a condition of the Award. In the event of any

 

 

					
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irreconcilable inconsistency between the provisions of the Plan and the terms or conditions of an Award, the
provisions of the Plan shall govern.

     3.8 Limitation of Implied Rights. Neither a Participant nor any other person shall
acquire any right in or title to any assets, funds or property of the Company or any Subsidiary by
reason of participation in the Plan or the grant of any Award. Neither the Plan nor any Award will
constitute a contract of employment or give any Eligible Person any right to be retained in the
employ of the Company or a Subsidiary. No Eligible Person or Participant will have any right under
the Plan or any Award or as a shareholder of the Company except to the extent such right has
accrued under the terms of the Plan and the Award.

Article IV

Administration; Term And Amendment

     4.1 Administration. The Plan shall be administered by the Committee, which may in its
discretion interpret the Plan; establish, amend and rescind rules and regulations, forms, notices
and agreements relating to the Plan; and make all determinations necessary or advisable for the
operation of the Plan. Subject to the provisions of the Plan, the charter and bylaws of the
Company and applicable laws, all ultimate powers of approval shall be vested in the Committee as a
body, and the Committee shall have absolute and final discretion with respect to all determinations
under the Plan.

     4.2 Approval; Duration. Subject to the approval of the shareholders of the Company at
the Company’s 2004 annual meeting of its shareholders, the Plan shall become effective as of the
date of such meeting. Awards may be made from time to time thereafter in the discretion of the
Committee, but no Awards shall be made hereunder after December 31, 2012. The Plan shall continue
until all shares of Common Stock subject to outstanding Awards have been issued and no Awards
remain outstanding.

     4.3 Amendments and Termination. The Board may at any time amend or terminate the
Plan; provided that no amendment may, without the further approval of the Company’s shareholders,
(i) materially increase the maximum amount of Common Stock that may be issued pursuant to Awards
hereunder (except for adjustments under Section 2.3), or (ii) expand the types of Awards that may
be granted, or (iii) materially extend the term of the Plan, or (iv) permit the granting of
Options/Stock-Settled Stock Appreciation Rights with an exercise or base price less than fair
market value, or (v) permit the repricing of outstanding Options/Stock-Settled Stock Appreciation
Rights (except for adjustments under Section 2.3), or (vi) increase the maximum number of shares
which may be granted to any single Participant. Any amendment shall comply with all applicable
rules and regulations of the New York Stock Exchange and the Securities and Exchange Commission.
No amendment or termination may adversely affect the rights of any Participant which exist on the
date the amendment or termination becomes effective, without the written consent of the
Participant.

Adopted by the Board of Directors December 11, 2003.

Approved by the Shareholders March 10, 2004.

Amended by the Board of Directors September 22, 2006.

Amendment Approved by the Shareholders March 11, 2009.EX-10.1

Exhibit 10.1

THIRD AMENDMENT TO LOAN AGREEMENT

     ENTERED INTO by and between HEALTHSTREAM, INC., a Tennessee corporation (the
“Borrower”), and SUNTRUST BANK, a Georgia state banking corporation (the “Lender”),
as of this 17 day of July, 2009.

RECITALS:

     1. The Borrower and the Lender entered into a Loan Agreement dated July 21, 2006, as amended
by that certain First Amendment to Loan Agreement dated February 16, 2007, and as amended by that
certain Second Amendment to Loan Agreement dated July 23, 2007 (as amended, the “Loan
Agreement”).

     2. The Borrower and the Lender desire to amend the Loan Agreement as provided in this
amendment.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the Borrower and the
Lender agree as follows:

     1. Section 1.4 of the Loan Agreement is amended and restated in its entirety to read
as follows:

     1.4 Borrowing Advances for the Revolving Loan. Except to the extent that the
funding of Advances is accomplished through an automated cash management system administered
by Lender, Borrower shall request Advances under the Revolving Loan pursuant to an operating
account maintained with Lender. The following persons are authorized to request Advances:
Robert A. Frist, Jr., Scott A. Roberts, or Gerard M. Hayden, Jr.. Subject to the conditions
contained herein, any Advance requested by Borrower and approved by Lender by 12:00 noon
(Nashville, Tennessee time) shall be deposited into Borrower’s operating account with Lender
within forty-eight (48) hours of the request. Each request by Borrower for an Advance shall
constitute a representation and warranty by Borrower, as of the date of the request and as
of the date of the Advance that Borrower has complied with the Conditions Precedent set
forth in Article III herein and that no Default or Event of Default exists.

     2. Section 1.5 of the Loan Agreement is amended and restated in its entirety to read
as follows:

     1.5 Use of Proceeds. Proceeds of the Revolving Loan shall be used to provide
funds for working capital needs, Permitted Acquisitions, and Permitted Stock Repurchase or
Redemption Transactions.

     3. Section 4.10 of the Loan Agreement is amended and restated in its entirety to read
as follows:

     4.10 Unused Fee. The Borrower agrees to pay to the Lender an unused fee equal
to twenty-five (25) basis points per annum of the average daily unused amount of

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the Revolving Loan during the term of the Revolving Loan. Accrued unused fees shall be
payable in arrears on the last day of each March, June, September, and December of each year
and on the Maturity Date, with such payments to commence September 30, 2009.

     4. Section 5.8 of the Loan Agreement is hereby amended and restated in its entirety to
read as follows:

     5.8 Financial Covenants.

     (a) Funded Debt to EBITDA. Permit the ratio of (i) the consolidated Funded Debt
of Borrower and its Subsidiaries to (ii) EBITDA, as determined on a consolidated
basis in accordance with GAAP, to be greater than 2.0 to 1.0, as measured on a rolling four
quarter basis beginning September 30, 2009 and calculated as of the last day of each fiscal
quarter thereafter.

     (b) Funded Debt to Total Capitalization. Permit (i) the consolidated Funded
Debt of Borrower and its Subsidiaries, to exceed (ii) an amount equal to forty
percent (40%) of Total Capitalization of Borrower and its Subsidiaries as determined on a
consolidated basis.

     (c) Tangible Net Worth. Permit its Tangible Net Worth, as determined on a
consolidated basis in accordance with GAAP, at any time to be less than $1.00.

     5. Section 8.1 of the Loan Agreement is amended to include the definition of
“Applicable Rate” to read as follows:

     “Applicable Rate” means a variable rate of interest equal to 30 Day LIBOR Rate,
plus the number of basis points depicted on the pricing grid set forth below;
provided that the Applicable Rate as of July 17, 2009 shall be equal to the
30 Day LIBOR Rate, plus 190 basis points per annum (the “Initial Applicable Rate”).
The Initial Applicable Rate shall remain effective until the Lender receives the Borrower’s
calculation of the Funded Debt to EBITDA Ratio as required by Section 4.1(c) herein
for the quarter ending September 30, 2009. Thereafter and on a quarterly basis, the
Applicable Rate shall be adjusted to reflect changes to the Funded Debt to EBITDA Ratio as
such changes are reported to Lender pursuant to Section 4.1(c) herein. Calculation
of the Funded Debt to EBITDA Ratio shall be made on a rolling four quarter basis.
Notwithstanding anything contained herein to the contrary, at no time shall the Applicable
Rate or the Initial Applicable Rate be calculated and charged at an interest rate less than
three percent (3%) per annum. Interest for each year shall be computed on the basis of a
year of 360 days for the actual number of days elapsed.

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APPLICABLE RATE PRICING GRID

	 	 	 
	BASIS POINTS	 	FUNDED DEBT TO EBITDA RATIO
	190 basis points per annum

	 	Equal to or less than 1.00 to 1.00
	 
	 	 
	220 basis points per annum

	 	Greater than 1.00 to 1.00, but no more than
2.00 to 1.00

     6. The definition of “EBITDA” as used in Section 8.1 of the Loan Agreement is hereby
amended and restated in its entirety to read as follows:

     “EBITDA” means, for any period, for the Borrower and its Subsidiaries, an
amount equal to the sum of (a) Net Income for such period plus (b) to the extent deducted in
determining Net Income for such period, (i) Interest Expense, (ii) income tax expense, (iii)
depreciation and amortization, and (iv) all other non-cash charges (including, but not
limited to stock option compensation costs applicable under and calculated in accordance
with Statement of Financial Accounting Standards No. 123 (revised 2004) [FAS 123 (revised)]
as promulgated by the FASB), minus (c) interest income, determined on a consolidated basis
in accordance with GAAP (except for non-cash charges, which are not determined in accordance
with GAAP) in each case for such period; provided, however, with respect to
any Person that became a Subsidiary of, or was merged with or consolidated into, the
Borrower during any such period, “EBITDA” shall also include the EBITDA of such Person
during such period and prior to the date of such acquisition, merger, or consolidation and
shall also include the pro forma EBITDA of the Person prepared by the Borrower after the
date of acquisition; provided, however, that the pro forma EBITDA revenues of the Person
shall not exceed the historical EBITDA revenues of the Person to the date of acquisition.

     7. Section 8.1 of the Loan Agreement is amended to include the definition of “Existing
Subsidiary Guarantors” to read as follows:

     “Existing Subsidiary Guarantors” means each of HealthStream Acquisition I,
Inc., HealthStream Acquisition II, Inc., Data Management & Research, Inc., and The Jackson
Organization, Research Consultants, Inc.

     8. Section 8.1 of the Loan Agreement is amended to include the definition of “Funded
Debt” to read as follows:

     “Funded Debt” means any debt evidenced by a promissory note, loan agreement, or
instrument, which is not subordinated to the Indebtedness, plus Capital Lease Obligations.

     9. The definition of “Guaranty” as used in Section 8.1 of the Loan Agreement is hereby
amended and restated in its entirety to read as follows:

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     “Guaranty” means the Guaranty executed by each Existing Subsidiary Guarantor,
and any Subsidiary of Borrower created by Permitted Acquisitions.

     10. The definition of “Guarantor” as used in Section 8.1 of the Loan Agreement is
hereby amended and restated in its entirety to read as follows:

     “Guarantor” means each of the Existing Subsidiary Guarantors and any Subsidiary
of Borrower created by Permitted Acquisitions.

     11. Section 8.1 of the Loan Agreement is amended to include the definition of
“Permitted Stock Repurchase or Redemption Transaction” to read as follows:

     “Permitted Stock Repurchase or Redemption Transaction” means a stock repurchase
or redemption of the shares of Borrower by the Borrower provided, that, (i) Borrower
delivers written notice to Lender fifteen (15) days prior to the completion of the intended
transaction, which notice shall provide general details about the intended transaction, (ii)
together with such written notice, Borrower provides Lender with pro forma calculations
detailing the post-transaction effect that the transaction will have on the Borrower’s
consolidated financial statements and the Financial Covenants set forth in Section
5.8 of this Loan Agreement, (iii) the information provided by the Borrower and
identified in subpart (i) and (ii) above confirms that the Borrower will be in compliance
with the Financial Covenants set forth in Section 5.8 herein after giving effect to
the transaction, (iv) the information provided by the Borrower and identified in subparts
(i) and (ii) above confirms that no Material Adverse Effect will occur as a result of the
transaction.

     12. The definition of “Revolving Note” as used in Section 8.1 of the Loan Agreement
shall be amended and restated in its entirety as follows:

     “Revolving Note” means that certain Revolving Credit Note dated July 21, 2006
issued by the Borrower to the order of Lender in the original principal amount of up to
$7,000,000, as amended and increased to $10,000,000 pursuant to that certain First Amendment
to Revolving Credit Note dated February 16, 2007, as amended and increased to $15,000,000
pursuant to that certain Second Amendment to Revolving Credit Note dated July 23, 2007, and
as amended pursuant to that certain Third Amendment to Revolving
Credit Note dated July 17,
2009, as such may be amended from time to time.

     13. The definition of “Total Capitalization” as used in Section 8.1 of the Loan
Agreement is hereby amended and restated in its entirety to read as follows:

     “Total Capitalization” means the sum of Funded Debt and stockholder’s equity
without any deductions for intangibles.

     14. The definition of “Revolving Note Maturity Date” shall be amended and restated as follows:

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     “Revolving Note Maturity Date” means the earlier of: (a) July 21, 2011, (b) the
occurrence of any event described in Section 6.1(d) or Section 6.1(e)
hereof; or (c) Lender’s acceleration of the Indebtedness following the occurrence of an
Event of Default.

     15. The definition of “Tangible Net Worth” as used in Section 8.1 of the Loan
Agreement shall be amended and restated in its entirety as follows:

     “Tangible Net Worth” means, as of any date, the total assets of the Borrower
and its subsidiaries, on a consolidated basis, that would be reflected on the Borrower’s
consolidated balance sheet as of such date, excluding any items that would be classified as
an intangible asset or goodwill, minus the total liabilities of the Borrower and its
subsidiaries, on a consolidated basis, that would be reflected on the Borrower’s
consolidated balance sheet as of such date, all calculated in accordance with GAAP.

     16. Section 8.1 of the Loan Agreement is amended to include the definition of “30-Day
Libor Rate” to read as follows:

     “30-Day LIBOR Rate” means the rate per annum for deposits in U.S. dollars for a
one month period appearing on that page of the Bloomberg’s Report which displays British
Banker’s Association Interest Settlement Rates for deposits in U.S. dollars (or if page or
service shall cease to be available, such other page on that service or such other service
designated by the British Banker’s Association for the display of such Association’s
Interest Settlement Rates for Dollar deposits) as of 11:00 a.m. (London, England time) on
the day that is two business days prior to the first day of each month during the term of
this Note; provided, that if such rate or service is not available to the Lender for
any reason, 30-Day LIBOR Rate shall mean the rate of interest determined by the Lender to be
the average (rounded upward, if necessary, to the nearest 1/100th of 1%) of the
rates per annum at which deposits in U.S. dollars are offered to the Lender two (2) business
days preceding the first day of each month during the term of this Note by leading banks in
the London interbank market as of 10:00 a.m. (Nashville, Tennessee time) for a one-month
period and in an amount comparable to the amount of the outstanding balance under this Note.
Interest for each year shall be computed on the basis of a year of 360 days for the actual
number of days elapsed.

     17. The Loan Agreement is not amended in any other respect.

     18. The Borrower affirms its obligations under the Loan Agreement, as amended hereby, and the
Borrower agrees that such obligations are its valid and binding obligations, enforceable in
accordance with its terms, subject to no objection, counterclaim, or defense.

     19. The Borrower affirms that no Default or Event of Default exists. The Borrower reaffirms
all of the representations and warranties contained in Article II of the Loan Agreement,
and the Borrower affirms that each of such representations and warranties remain true and correct
in all material respects as of the date of this Third Amendment to Loan Agreement, excluding
representations and warranties that by their express terms are limited to a specific date.

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     20. Lender’s obligations to enter into this Third Amendment to Loan Agreement are subject to
receipt by Lender of the following: (i) fully executed Third Amendment to Loan Agreement, (ii)
fully executed Third Amendment to Revolving Credit Note, (iii) a resolution of the Borrower in form
and substance satisfactory to Lender, (iv) an officer’s certificate in form and substance
satisfactory to Borrower, (v) a certificate of good standing of Borrower and the Existing
Subsidiary Guarantors containing no matter objectionable to Lender, and (vi) payment by Borrower to
Lender of a non-refundable commitment fee of ten (10) basis points per annum and all of Lender’s
costs and expenses incurred in connection with the transaction evidenced hereby.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

     ENTERED INTO as of the date first written above.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	HEALTHSTREAM, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gerard M. Hayden, Jr.
 

Gerard  M. Hayden, Jr.
	 	 
	 

	 	 	 	Senior Vice President and

Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	SUNTRUST BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Title:
	 	/s/ Jason A. Reierson
 

 FVP
	 	 

AGREED TO AND ACCEPTED BY:

GUARANTORS:

THE JACKSON ORGANIZATION,

RESEARCH CONSULTANTS, INC.

By: /s/ Gerard M. Hayden, Jr.               

Title: Director

[SIGNATURES CONTINUED ON NEXT PAGE]

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HEALTHSTREAM ACQUISITION I, INC.

By:/s/ Gerard M. Hayden, Jr.                         

Title: Director

HEALTHSTREAM ACQUISITION II, INC.

By:/s/ Gerard M. Hayden, Jr.                         

Title: Director

DATA MANAGEMENT & RESEARCH, INC.

By:/s/ Gerard M. Hayden, Jr.                         

Title: Director

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]