Document:

mgln_Ex4_5

		
			Exhibit 4.5
		

		
			EXECUTION VERSION 
		

		
			$200,000,000
		

		
			CREDIT AGREEMENT
		

		
			among
		

		
			MAGELLAN PHARMACY SERVICES, INC.,
		

		
			as Borrower,
		

		
			MAGELLAN HEALTH, INC.,
		

		
			VARIOUS LENDERS
		

		
			and
		

		
			THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
		

		
			as Administrative Agent
		

		

		
			Dated as of January 10, 2017
		

		

		
			CITIBANK, N.A.,
		

		
			COMPASS BANK (d/b/a BBVA COMPASS),
		

		
			JPMORGAN CHASE BANK, N.A.,
		

		
			SUNTRUST BANK and
		

		
			WELLS FARGO SECURITIES, LLC,
		

		
			as Co-Syndication Agents, 
		

		
			and
		

		
			THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
		

		
			CITIGROUP GLOBAL MARKETS INC.,
		

		
			COMPASS BANK (d/b/a BBVA COMPASS),
		

		
			JPMORGAN CHASE BANK, N.A.,
		

		
			SUNTRUST ROBINSON HUMPHREY, INC. and
		

		
			WELLS FARGO SECURITIES, LLC,
		

		
			as Joint Lead Arrangers and Joint Bookrunners
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			TABLE OF CONTENTS
		

		

			
					
						 

					
					
						 

					
					
						PAGE

				
	
					
						Section 1.

					
					
						Amount and Terms of Credit

					
1 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						1.01

					
					
						The Commitments

					
1 
				
	
					
						1.02

					
					
						Minimum Amount of Each Borrowing

					
1 
				
	
					
						1.03

					
					
						Notice of Borrowing

					
1 
				
	
					
						1.04

					
					
						Disbursement of Funds

					
2 
				
	
					
						1.05

					
					
						Notes

					
2 
				
	
					
						1.06

					
					
						Conversions

					
3 
				
	
					
						1.07

					
					
						Pro Rata Borrowings

					
3 
				
	
					
						1.08

					
					
						Interest

					
3 
				
	
					
						1.09

					
					
						Interest Periods for Eurodollar Loans

					
4 
				
	
					
						1.10

					
					
						Increased Costs, Illegality, etc

					
5 
				
	
					
						1.11

					
					
						Compensation

					
6 
				
	
					
						1.12

					
					
						Change of Lending Office

					
7 
				
	
					
						1.13

					
					
						Replacement of Lenders

					
7 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 2.

					
					
						[Reserved]

					
8 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 3.

					
					
						Fees; Reductions of Commitment

					
8 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						3.01

					
					
						Fees

					
8 
				
	
					
						3.02

					
					
						Voluntary Termination of Commitments

					
8 
				
	
					
						3.03

					
					
						Mandatory Reduction of Commitments

					
9 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 4.

					
					
						Prepayments; Payments; Taxes

					
9 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						4.01

					
					
						Voluntary Prepayments

					
9 
				
	
					
						4.02

					
					
						[Reserved]

					
9 
				
	
					
						4.03

					
					
						Method and Place of Payment

					
10 
				
	
					
						4.04

					
					
						Net Payments

					
10 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 5.

					
					
						Conditions Precedent to the Effective Date

					
13 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						5.01

					
					
						Execution of Agreement; Notes

					
13 
				
	
					
						5.02

					
					
						Officer’s Certificate

					
13 
				
	
					
						5.03

					
					
						Opinion of Counsel

					
14 
				
	
					
						5.04

					
					
						Corporate Documents; Proceedings; etc

					
14 
				
	
					
						5.05

					
					
						Financial Covenants

					
14 
				
	
					
						5.06

					
					
						Adverse Change, Approvals

					
14 
				
	
					
						5.07

					
					
						Litigation

					
14 
				
	
					
						5.08

					
					
						[Reserved]

					
15 
				
	
					
						5.09

					
					
						Guaranties

					
15 
				
	
					
						5.10

					
					
						[Reserved]

					
15 
				
	
					
						5.11

					
					
						Financial Statements

					
15 
				
	
					
						5.12

					
					
						Solvency Certificate

					
15 
				
	
					
						5.13

					
					
						Fees, etc

					
15 
				
	
					
						5.14

					
					
						Patriot Act

					
15 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 6.

					
					
						Conditions Precedent to the making of any Loans on any Funding Date

					
15 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						6.01

					
					
						No Default; Representations and Warranties

					
15 
				
	
					
						6.02

					
					
						Notice of Borrowing

					
15 
				
	
					
						 

					
					
						 

					
					
						 

				

		
			
		

		

		 

 

	
					
						

					
						Section 7.

					
					
						Representations, Warranties and Agreements

					
15 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						7.01

					
					
						Organizational Status

					
16 
				
	
					
						7.02

					
					
						Power and Authority

					
16 
				
	
					
						7.03

					
					
						No Violation

					
16 
				
	
					
						7.04

					
					
						Approvals

					
16 
				
	
					
						7.05

					
					
						Financial Statements; No Material Adverse Effect

					
16 
				
	
					
						7.06

					
					
						Litigation

					
17 
				
	
					
						7.07

					
					
						True and Complete Disclosure

					
17 
				
	
					
						7.08

					
					
						Margin Regulations

					
17 
				
	
					
						7.09

					
					
						Tax Returns and Payments

					
18 
				
	
					
						7.10

					
					
						Compliance with ERISA

					
18 
				
	
					
						7.11

					
					
						[Reserved]

					
19 
				
	
					
						7.12

					
					
						Properties

					
19 
				
	
					
						7.13

					
					
						[Reserved]

					
19 
				
	
					
						7.14

					
					
						Subsidiaries; etc

					
19 
				
	
					
						7.15

					
					
						Compliance with Statutes, etc

					
19 
				
	
					
						7.16

					
					
						Investment Company Act

					
19 
				
	
					
						7.17

					
					
						[Reserved]

					
19 
				
	
					
						7.18

					
					
						Labor Relations

					
19 
				
	
					
						7.19

					
					
						[Reserved]

					
20 
				
	
					
						7.20

					
					
						[Reserved]

					
20 
				
	
					
						7.21

					
					
						[Reserved]

					
20 
				
	
					
						7.22

					
					
						[Reserved]

					
20 
				
	
					
						7.23

					
					
						Anti-Corruption Laws and Sanctions

					
20 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 8.

					
					
						Affirmative Covenants

					
20 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						8.01

					
					
						Information Covenants

					
20 
				
	
					
						8.02

					
					
						Books, Records and Inspections; Annual Meetings

					
22 
				
	
					
						8.03

					
					
						Maintenance of Property; Insurance

					
22 
				
	
					
						8.04

					
					
						Existence; Franchises

					
22 
				
	
					
						8.05

					
					
						Compliance with Statutes, etc

					
22 
				
	
					
						8.06

					
					
						[Reserved]

					
22 
				
	
					
						8.07

					
					
						ERISA

					
22 
				
	
					
						8.08

					
					
						End of Fiscal Years; Fiscal Quarters

					
23 
				
	
					
						8.09

					
					
						Performance of Obligations

					
23 
				
	
					
						8.10

					
					
						Payment of Taxes

					
23 
				
	
					
						8.11

					
					
						Use of Proceeds

					
23 
				
	
					
						8.12

					
					
						Further Assurances; etc

					
23 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 9.

					
					
						Negative Covenants

					
24 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						9.01

					
					
						Liens

					
24 
				
	
					
						9.02

					
					
						Consolidation, Merger, Purchase or Sale of Assets, etc

					
26 
				
	
					
						9.03

					
					
						Dividends

					
28 
				
	
					
						9.04

					
					
						Indebtedness

					
29 
				
	
					
						9.05

					
					
						Advances, Investments and Loans

					
31 
				
	
					
						9.06

					
					
						Transactions with Affiliates

					
33 
				
	
					
						9.07

					
					
						[Reserved]

					
34 
				
	
					
						9.08

					
					
						Consolidated Interest Coverage Ratio

					
34 
				
	
					
						9.09

					
					
						Total Leverage Ratio

					
34 
				

		
			
		

		

		 

		

			ii

		

 

	
					
						

					
						9.10

					
					
						Limitations on Payments of Permitted Subordinated Debt; Modifications of Certificate of Incorporation, By-Laws and Documents Governing Permitted Subordinated Debt

					
34 
				
	
					
						9.11

					
					
						Use of Proceeds

					
35 
				
	
					
						9.12

					
					
						Business, etc

					
35 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 10.

					
					
						Events of Default

					
36 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						10.01

					
					
						Payments

					
36 
				
	
					
						10.02

					
					
						Representations, etc

					
36 
				
	
					
						10.03

					
					
						Covenants

					
36 
				
	
					
						10.04

					
					
						Default Under Other Agreements

					
36 
				
	
					
						10.05

					
					
						Bankruptcy, etc

					
36 
				
	
					
						10.06

					
					
						ERISA

					
37 
				
	
					
						10.07

					
					
						[Reserved]

					
37 
				
	
					
						10.08

					
					
						Guaranty

					
37 
				
	
					
						10.09

					
					
						Judgments

					
37 
				
	
					
						10.10

					
					
						Change of Control

					
38 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 11.

					
					
						Defined Terms

					
38 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 12.

					
					
						The Administrative Agent

					
56 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						12.01

					
					
						Appointment

					
56 
				
	
					
						12.02

					
					
						Nature of Duties

					
56 
				
	
					
						12.03

					
					
						Lack of Reliance on the Administrative Agent

					
57 
				
	
					
						12.04

					
					
						Certain Rights of the Administrative Agent

					
57 
				
	
					
						12.05

					
					
						Reliance

					
58 
				
	
					
						12.06

					
					
						Indemnification

					
58 
				
	
					
						12.07

					
					
						The Administrative Agent in its Individual Capacity

					
58 
				
	
					
						12.08

					
					
						Holders

					
58 
				
	
					
						12.09

					
					
						Resignation by the Administrative Agent

					
58 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 13.

					
					
						Miscellaneous

					
59 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						13.01

					
					
						Payment of Expenses, etc

					
59 
				
	
					
						13.02

					
					
						Right of Setoff

					
60 
				
	
					
						13.03

					
					
						Notices; Platform

					
60 
				
	
					
						13.04

					
					
						Benefit of Agreement; Assignments; Participations

					
61 
				
	
					
						13.05

					
					
						No Waiver; Remedies Cumulative

					
63 
				
	
					
						13.06

					
					
						Payments Pro Rata

					
63 
				
	
					
						13.07

					
					
						Calculations; Computations

					
64 
				
	
					
						13.08

					
					
						GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL

					
64 
				
	
					
						13.09

					
					
						Counterparts

					
65 
				
	
					
						13.10

					
					
						Effectiveness

					
65 
				
	
					
						13.11

					
					
						Headings Descriptive

					
66 
				
	
					
						13.12

					
					
						Amendment or Waiver; etc

					
66 
				
	
					
						13.13

					
					
						Survival

					
67 
				
	
					
						13.14

					
					
						Domicile of Loans

					
67 
				
	
					
						13.15

					
					
						Register

					
67 
				
	
					
						13.16

					
					
						Confidentiality

					
67 
				
	
					
						13.17

					
					
						No Fiduciary Duty

					
68 
				
	
					
						13.18

					
					
						Patriot Act

					
68 
				
	
					
						13.19

					
					
						Acknowledgement and Consent to Bail-In of EEA Financial Institutions

					
69 
				

		
			
		

		
			

		 

		

			iii

		

 

		

		
			SCHEDULES 
		

			
					
						SCHEDULE I

					
					
						--

					
					
						Commitments

				
	
					
						SCHEDULE II

					
					
						--

					
					
						[Reserved]

				
	
					
						SCHEDULE III

					
					
						--

					
					
						[Reserved]

				
	
					
						SCHEDULE IV

					
					
						--

					
					
						[Reserved]

				
	
					
						SCHEDULE V

					
					
						--

					
					
						Subsidiaries

				
	
					
						SCHEDULE VI

					
					
						--

					
					
						Existing Indebtedness

				
	
					
						SCHEDULE VII

					
					
						--

					
					
						[Reserved]

				
	
					
						SCHEDULE VIII

					
					
						--

					
					
						Existing Liens

				
	
					
						SCHEDULE IX

					
					
						--

					
					
						Existing Investments

				
	
					
						SCHEDULE X

					
					
						--

					
					
						Certain Tax Matters

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						EXHIBITS

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						EXHIBIT A-1

					
					
						--

					
					
						Notice of Borrowing

				
	
					
						EXHIBIT A-2

					
					
						--

					
					
						Notice of Conversion/Continuation

				
	
					
						EXHIBIT B

					
					
						--

					
					
						Note

				
	
					
						EXHIBIT C

					
					
						--

					
					
						[Reserved]

				
	
					
						EXHIBIT D-1

					
					
						--

					
					
						Section 4.04(c)(ii) Certificate (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

				
	
					
						EXHIBIT D-2

					
					
						--

					
					
						Section 4.04(c)(ii) Certificate (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

				
	
					
						EXHIBIT D-3

					
					
						--

					
					
						Section 4.04(c)(ii) Certificate (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

				
	
					
						EXHIBIT D-4

					
					
						--

					
					
						Section 4.04(c)(ii) Certificate (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

				
	
					
						EXHIBIT E

					
					
						--

					
					
						[Reserved]

				
	
					
						EXHIBIT F

					
					
						--

					
					
						Officers’ Certificate

				
	
					
						EXHIBIT G

					
					
						--

					
					
						[Reserved]

				
	
					
						EXHIBIT H

					
					
						--

					
					
						Guaranty

				
	
					
						EXHIBIT I

					
					
						--

					
					
						[Reserved]

				
	
					
						EXHIBIT J

					
					
						--

					
					
						Solvency Certificate

				
	
					
						EXHIBIT K

					
					
						--

					
					
						Compliance Certificate

				
	
					
						EXHIBIT L

					
					
						--

					
					
						Assignment and Assumption Agreement

				

		
			 
		

		
			 
		

		
			

		 

		

			iv

		

 

		

		
			CREDIT AGREEMENT, dated as of January 10, 2017, among MAGELLAN PHARMACY SERVICES, INC., a Delaware corporation (the “Borrower”), MAGELLAN HEALTH, INC., a Delaware corporation (“Magellan”), the Lenders party hereto from time to time, and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as administrative agent (in such capacity, the “Administrative Agent”).  All capitalized terms used herein and defined in  Section 11 are used herein as therein defined. 
		

		
			W I T N E S S E T H:  
		

		
			WHEREAS, the Borrower has requested that the Lenders provide Commitments hereunder in an aggregate principal amount of $200,000,000; and 
		

		
			WHEREAS, subject to and upon the terms and conditions set forth herein, the Lenders are willing to make available to the Borrower the credit facility provided for herein;  
		

		
			NOW, THEREFORE, IT IS AGREED: 
		

		
			Section 1.         Amount and Terms of Credit.  
		

		
			1.01      The Commitments.  Subject to and upon the terms and conditions set forth herein, each Lender severally agrees to make, on up to four occasions during the Availability Period, a term loan to the Borrower  (each a “Loan” and, collectively, the “Loans”) in an aggregate principal amount not to exceed such Lender’s respective Commitment, which Loans (i) shall be denominated in Dollars and (ii) shall, at the option of the Borrower, be incurred and maintained as, and/or converted into, Base Rate Loans or Eurodollar Loans; provided, that (x) all Loans comprising the same Borrowing shall at all times be of the same Type (it being understood that multiple simultaneous Term Borrowings may be made on the same date) and (y) all such Loans shall constitute a single class of Loans hereunder, regardless of the date on which such Loans are borrowed.  Amounts repaid or prepaid in respect of Loans may not be reborrowed. 
		

		
			1.02      Minimum Amount of Each Borrowing.  The aggregate principal amount of each Borrowing (other than any continuation or conversion of Loans) shall not be less than $25,000,000.  More than one Borrowing may occur on the same date, but at no time shall there be outstanding more than ten Borrowings of Eurodollar Loans in the aggregate. 
		

		
			1.03      Notice of Borrowing.  (a) Whenever the Borrower desires to incur (x) Eurodollar Loans hereunder, the Borrower shall give the Administrative Agent at the Notice Office at least three Business Days’ prior notice of each Eurodollar Loan to be incurred hereunder and (y) Base Rate Loans hereunder, the Borrower shall give the Administrative Agent at the Notice Office at least one Business Day’s prior notice of each Base Rate Loan to be incurred hereunder; provided, that (in each case) any such notice shall be deemed to have been given on a certain day only if given before 11:00 A.M. (New York time) on such day. Each such notice (each a “Notice of Borrowing”), except as otherwise expressly provided in Section  1.10, shall be irrevocable and shall be in writing, or by telephone promptly confirmed in writing, in the form of Exhibit A-1, appropriately completed to specify:  (i) the aggregate principal amount of the Loans to be incurred pursuant to such Borrowing, (ii) the date of such Borrowing (which shall be a Business Day), and (iii) whether the Loans being incurred pursuant to such Borrowing are to be initially maintained as Base Rate Loans or, to the extent permitted hereunder, Eurodollar Loans and, if Eurodollar Loans, the initial Interest Period to be applicable thereto.  The Administrative Agent shall promptly give each Lender notice of such proposed Borrowing, of such Lender’s proportionate share thereof and of the other matters required by the immediately preceding sentence to be specified in the Notice of Borrowing. 
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			(b)        Without in any way limiting the obligation of the Borrower to confirm in writing any telephonic notice of any Borrowing or prepayment of Loans, the Administrative Agent may act without liability upon the basis of telephonic notice of such Borrowing or prepayment, as the case may be, believed by the Administrative Agent, as the case may be, in good faith to be from an Authorized Officer of the Borrower, prior to receipt of written confirmation.  In each such case, the Borrower hereby waives the right to dispute the Administrative Agent’s record of the terms of such telephonic notice of such Borrowing or prepayment of Loans, as the case may be, absent manifest error. 
		

		
			1.04      Disbursement of Funds.  No later than 1:00 P.M. (New York time) on the date specified in each Notice of Borrowing, each applicable Lender will make available its pro rata portion (determined in accordance with Section 1.07) of each such Borrowing requested to be made on such date. All such amounts will be made available in Dollars and in immediately available funds at the Payment Office, and the Administrative Agent will make available to the Borrower at the Payment Office the aggregate of the amounts so made available by the applicable Lenders.  Unless the Administrative Agent shall have been notified by any Lender prior to the date of Borrowing that such Lender does not intend to make available to the Administrative Agent such Lender’s portion of any Borrowing to be made on such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date of Borrowing and the Administrative Agent may (but shall not be obligated to), in reliance upon such assumption, make available to the Borrower a corresponding amount. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender.  If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower and the Borrower shall promptly (but in any event within one Business Day thereafter) pay such corresponding amount to the Administrative Agent.  The Administrative Agent also shall be entitled to recover on demand from such Lender or the Borrower, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Administrative Agent to the Borrower until the date such corresponding amount is recovered by the Administrative Agent, at a rate per annum equal to (i) if recovered from such Lender, the overnight Federal Funds Rate for the first three days and at the interest rate otherwise applicable to such Loans for each day thereafter, and (ii) if recovered from the Borrower, the rate of interest applicable to the respective Borrowing, as determined pursuant to Section  1.08.  Nothing in this Section 1.04 shall be deemed to relieve any Lender from its obligation to make Loans hereunder or to prejudice any rights which the Borrower may have against any Lender as a result of any failure by such Lender to make Loans hereunder. 
		

		
			1.05      Notes.  (a) The Borrower’s obligation to pay the principal of, and interest on, the Loans made by each Lender shall be evidenced in the Register maintained by the Administrative Agent pursuant to Section 13.15 and shall, if requested by such Lender, also be evidenced by a promissory note duly executed and delivered by the Borrower substantially in the form of Exhibit B, with blanks appropriately completed in conformity herewith (each a “Note” and, collectively, the “Notes”).  Each Note issued to each Lender shall (i) be executed by the Borrower, (ii) be payable to such Lender or its registered assigns and be dated the Effective Date (or, if issued after the Effective Date, be dated the date of the issuance thereof), (iii) be in a stated principal amount equal to the Loans funded by such Lender and be payable in the outstanding principal amount of the Loans evidenced thereby from time to time, (iv) mature on the Maturity Date, (v) bear interest as provided in the appropriate clause of Section  1.08 in respect of the Base Rate Loans and Eurodollar Loans, as the case may be, evidenced thereby, (vi) be subject to voluntary prepayment as provided in Section  4.01 and (vii) be entitled to the benefits of this Agreement and the other Credit Documents. 
		

		
			(b)        Each Lender will note on its internal records the amount of each Loan made by it and each payment in respect thereof and prior to any transfer of any of its Notes will endorse on the 
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			reverse side thereof the outstanding principal amount of Loans evidenced thereby.  Failure to make any such notation or any error in such notation shall not affect the Borrower’s obligations in respect of such Loans. 
		

		
			(c)        Notwithstanding anything to the contrary contained above in this Section  1.05 or elsewhere in this Agreement, Notes shall only be delivered to Lenders which at any time specifically request the delivery of such Notes.  No failure of any Lender to request or obtain a Note evidencing its Loans to the Borrower shall affect or in any manner impair the obligations of the Borrower to pay the Loans (and all related Obligations) incurred by the Borrower which would otherwise be evidenced thereby in accordance with the requirements of this Agreement, and shall not in any way affect the guaranties therefor provided pursuant to the various Credit Documents.  Any Lender which does not have a Note evidencing its outstanding Loans shall in no event be required to make the notations otherwise described in preceding clause  (b).  At any time when any Lender requests the delivery of a Note to evidence any of its Loans, the Borrower shall promptly execute and deliver to the respective Lender, at the Borrower’s expense, the requested Note in the appropriate amount or amounts to evidence such Loans. 
		

		
			1.06      Conversions.  The Borrower shall have the option to convert, on any Business Day, all or a portion equal to at least $1,000,000 of the outstanding principal amount of Loans made pursuant to one or more Borrowings of one Type into a Borrowing of another Type of Loans; provided, that (i) except as otherwise provided in Section  1.10(b), Eurodollar Loans may be converted into Base Rate Loans only on the last day of an Interest Period applicable to the Loans being converted and no such partial conversion of Eurodollar Loans shall reduce the outstanding principal amount of such Eurodollar Loans made pursuant to a single Borrowing to less than $1,000,000, (ii) Base Rate Loans may not be converted into Eurodollar Loans if (x) a Default or an Event of Default under Section  10.05 is in existence on the date of the conversion or (y) any other Default or Event of Default is in existence on the date of the conversion and the Administrative Agent has received instructions from the Required Lenders to that effect, and (iii) no conversion pursuant to this Section  1.06 shall result in a greater number of Borrowings of Eurodollar Loans than is permitted under Section  1.02.  Each such conversion shall be effected by the Borrower by giving the Administrative Agent at the Notice Office prior to 11:00 A.M. (New York time) at least three Business Days prior notice (each a “Notice of Conversion/Continuation”) in the form of Exhibit A-2, appropriately completed to specify (A) the Loans to be so converted, (B) the Borrowing or Borrowings pursuant to which such Loans were incurred and, (C) in the case of a conversion into Eurodollar Loans, the Interest Period to be initially applicable thereto.  The Administrative Agent shall give each Lender prompt notice of any such proposed conversion affecting any of its Loans.  Upon any such conversion the proceeds thereof will be deemed to be applied directly on the day of such conversion to prepay the outstanding principal amount of the Loans being converted.   
		

		
			1.07      Pro Rata Borrowings.  All Borrowings under this Agreement shall be incurred from the Lenders pro rata on the basis of their respective Commitments.  It is understood that no Lender shall be responsible for any default by any other Lender of its obligation to make Loans hereunder and that each Lender shall be obligated to make the Loans provided to be made by it hereunder, regardless of the failure of any other Lender to make its Loans hereunder. 
		

		
			1.08      Interest.  (a) The Borrower agrees to pay interest in respect of the unpaid principal amount of each Base Rate Loan from the date of Borrowing thereof until the earlier of (i) the maturity thereof (whether by acceleration or otherwise) and (ii) the conversion of such Base Rate Loan to a Eurodollar Loan pursuant to Section  1.06 or  1.09, as applicable, at a rate per annum which shall be equal to the sum of the Applicable Margin as in effect from time to time plus the Base Rate as in effect from time to time. 
		

		
			
		

		
			

		 

		

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			(b)       The Borrower agrees to pay interest in respect of the unpaid principal amount of each Eurodollar Loan from the date of Borrowing thereof until the earlier of (i) the maturity thereof (whether by acceleration or otherwise) and (ii) the conversion of such Eurodollar Loan to a Base Rate Loan pursuant to Section  1.06,   1.09 or  1.10, as applicable, at a rate per annum which shall, during each Interest Period applicable thereto, be equal to the sum of the Applicable Margin as in effect from time to time during such Interest Period plus the Eurodollar Rate for such Interest Period. 
		

		
			(c)       During the continuance of a Specified Default, principal and, to the extent permitted by law, overdue interest in respect of each Loan shall, in each case, bear interest at a rate per annum equal to the greater of (x) the rate which is 2% in excess of the rate then borne by such Loans and (y) the rate which is 2% in excess of the rate otherwise applicable to Base Rate Loans from time to time.  Interest that accrues under this Section  1.08(c) shall be payable on demand. 
		

		
			(d)       Accrued (and theretofore unpaid) interest shall be payable (i) in respect of each Base Rate Loan, (x) quarterly in arrears on each Quarterly Payment Date, (y) on the date of any repayment or prepayment in full of all outstanding Base Rate Loans, and (z) at maturity (whether by acceleration or otherwise) and, after such maturity, on demand, and (ii) in respect of each Eurodollar Loan, (x) on the last day of each Interest Period applicable thereto and, in the case of an Interest Period in excess of three months, on each date occurring at three month intervals after the first day of such Interest Period, and (y) on the date of any repayment or prepayment (on the amount repaid or prepaid), at maturity (whether by acceleration or otherwise) and, after such maturity, on demand.   
		

		
			(e)        Upon each Interest Determination Date, the Administrative Agent shall 
		

		
			determine the Eurodollar Rate for each Interest Period applicable to the respective Eurodollar Loans and shall promptly notify the Borrower and the Lenders thereof.  Each such determination shall, absent manifest error, be final and conclusive and binding on all parties hereto. 
		

		
			1.09     Interest Periods for Eurodollar Loans.  At the time the Borrower gives any Notice of Borrowing or Notice of Conversion/Continuation in respect of the making of, or conversion into, any Eurodollar Loan (in the case of the initial Interest Period applicable thereto) or prior to 11:00 A.M. (New York time) on the third Business Day prior to the expiration of an Interest Period applicable to such Eurodollar Loan (in the case of any subsequent Interest Period), the Borrower shall have the right to elect the Interest Period applicable to such Eurodollar Loan, which Interest Period shall, at the option of the Borrower, be a one, two, three or six month period (or if deposits of a corresponding maturity are available to all Lenders in the London interbank market, a one week or twelve month period); provided, that (in each case): 
		

		
			(i)        all Eurodollar Loans comprising a Borrowing shall at all times have the same Interest Period; 
		

		
			(ii)       the initial Interest Period for any Eurodollar Loan shall commence on the date of Borrowing of such Eurodollar Loan (including the date of any conversion thereto from a Base Rate Loan) and each Interest Period occurring thereafter in respect of such Eurodollar Loan shall commence on the day on which the next preceding Interest Period applicable thereto expires; 
		

		
			(iii)      if any Interest Period for a Eurodollar Loan begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of such calendar month; 
		

		
			(iv)      if any Interest Period for a Eurodollar Loan would otherwise expire on a day which is not a Business Day, such Interest Period shall expire on the next succeeding Business
		

		
			
		

		
			

		 

		

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			Day; provided,  however, that if any Interest Period for a Eurodollar Loan would otherwise expire on a day which is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the next preceding Business Day; 
		

		
			(v)        no Interest Period may be selected at any time when (x) a Specified Default is then in existence or (y) any other Event of Default is then in existence and the Administrative Agent has received instructions from the Required Lenders to that effect; and 
		

		
			(vi)       no Interest Period in respect of any Borrowing of any Eurodollar Loans shall be selected which extends beyond the Maturity Date.
		

		
			If by 11:00 A.M. (New York time) on the third Business Day prior to the expiration of any Interest Period applicable to a Borrowing of Eurodollar Loans, the Borrower has failed to elect, or is not permitted to elect, a new Interest Period to be applicable to such Eurodollar Loans as provided above, the Borrower shall be deemed to have elected to convert such Eurodollar Loans into Base Rate Loans effective as of the expiration date of such current Interest Period. 
		

		
			1.10      Increased Costs, Illegality, etc.  (a) In the event that any Lender shall have determined (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto but, with respect to clause  (i) below, may be made only by the Administrative Agent): 
		

		
			(i)         on any Interest Determination Date that, by reason of any changes arising after the date of this Agreement affecting the interbank Eurodollar market, adequate and fair means do not exist for ascertaining the applicable interest rate on the basis provided for in the definition of Eurodollar Rate; or  
		

		
			(ii)        at any time, that such Lender shall incur increased costs or reductions in the amounts received or receivable hereunder with respect to any Loan because of (x) any Change in Law after the Effective Date, such as, but not limited to:  (A) a change in the basis of taxation of payment to any Lender of the principal of or interest on the Loans or the Notes or any other amounts payable hereunder (except for (x) taxes with respect to which additional amounts are paid pursuant to Section  4.04, (y) changes in the rate of tax on, or determined by reference to, the net income or net profits (or any franchise or similar tax imposed in lieu of a net income or net profits tax) of such Lender pursuant to the laws of the jurisdiction in which it is organized or in which its principal office or applicable lending office is located or any subdivision thereof or therein) or (z) taxes under FATCA or (B) a change in official reserve requirements, but, in all events, excluding reserves required under Regulation D to the extent included in the computation of the Eurodollar Rate and/or (y) other circumstances arising since the Effective Date affecting such Lender, the interbank Eurodollar market or the position of such Lender in such market; or 
		

		
			(iii)       at any time, that the making or continuance of any Eurodollar Loan has been made (x) unlawful by any law or governmental rule, regulation or order, (y) impossible by compliance by any Lender in good faith with any governmental request (whether or not having force of law) or (z) impracticable as a result of a contingency occurring after the Effective Date which materially and adversely affects the interbank Eurodollar market; 
		

		
			then, and in any such event, such Lender (or the Administrative Agent, in the case of clause  (i) above) shall promptly give notice (by telephone promptly confirmed in writing) to the Borrower and, except in the case of clause  (i) above, to the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each of the other Lenders).  Thereafter (x) in the case of clause  (i) above, Eurodollar Loans shall no longer be available until such time as the Administrative 
		

		
			
		

		
			

		 

		

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			Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice by the Administrative Agent no longer exist, and any Notice of Borrowing or Notice of Conversion/Continuation given by the Borrower with respect to Eurodollar Loans which have not yet been incurred (including by way of conversion) shall be deemed rescinded by the Borrower, (y) in the case of clause  (ii) above, the Borrower agrees to pay to such Lender, upon such Lender’s written request therefor, such additional amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Lender in its reasonable discretion shall determine) as shall be required to compensate such Lender for such increased costs or reductions in amounts received or receivable hereunder (a written notice as to the additional amounts owed to such Lender, showing in reasonable detail the basis for the calculation thereof, submitted to the Borrower by such Lender shall, absent manifest error, be final and conclusive and binding on all the parties hereto) and (z) in the case of clause  (iii) above, the Borrower shall take one of the actions specified in Section  1.10(b) as promptly as possible and, in any event, within the time period required by law. 
		

		
			(b)        At any time that any Eurodollar Loan is affected by the circumstances described in Section  1.10(a)(ii), the Borrower may, and in the case of a Eurodollar Loan affected by the circumstances described in Section 1.10(a)( iii), the Borrower shall, either (x) if the affected Eurodollar Loan is then being made initially or pursuant to a conversion, cancel such Borrowing by giving the Administrative Agent telephonic notice (confirmed in writing) on the same date that the Borrower was notified by the affected Lender or the Administrative Agent pursuant to Section 1.10(a)( ii) or  (iii) or (y) if the affected Eurodollar Loan is then outstanding, upon at least three Business Days’ written notice to the Administrative Agent, require the affected Lender to convert such Eurodollar Loan into a Base Rate Loan; provided, that, if more than one Lender is affected at any time, then all affected Lenders must be treated the same pursuant to this Section  1.10(b).  
		

		
			(c)        If any Lender determines that any Change in Law after the date on which it became a Lender hereunder, will have the effect of increasing the amount of capital or liquidity required or expected to be maintained by such Lender or any corporation controlling such Lender based on the existence of such Lender’s Commitments or Loans hereunder or its obligations hereunder, then the Borrower agrees to pay to such Lender, upon its written demand therefor, such additional amounts as shall be required to compensate such Lender or such other corporation for the increased cost to such Lender or such other corporation or the reduction in the rate of return to such Lender or such other corporation as a result of such increase of capital or liquidity.  In determining such additional amounts, each Lender will act reasonably and in good faith and will use averaging and attribution methods which are reasonable; provided, that such Lender’s determination of compensation owing under this Section 1.10(c)  shall, absent manifest error, be final and conclusive and binding on all the parties hereto.  Each Lender, upon determining that any additional amounts will be payable pursuant to this Section  1.10(c), will give prompt written notice thereof to the Borrower, which notice shall show in reasonable detail the basis for calculation of such additional amounts. 
		

		
			1.11      Compensation.  The Borrower agrees to compensate each Lender, upon its written request (which request shall set forth in reasonable detail the basis for requesting such compensation), for all losses, liabilities and reasonable expenses (including, without limitation, any loss, expense or liability incurred by reason of the liquidation or reemployment of deposits or other funds required by such Lender to fund its Eurodollar Loans but excluding loss of anticipated profits) which such Lender may sustain:  (i) if for any reason (other than a default by such Lender or the Administrative Agent) a Borrowing of, or conversion from or into, Eurodollar Loans does not occur on a date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation (whether or not withdrawn by the Borrower or deemed withdrawn pursuant to Section  1.10(a)); (ii) if any prepayment or repayment (including any prepayment or repayment made pursuant to Section  4.01,  Section  4.02 or as a result of an acceleration of the Loans pursuant to  Section 10) or conversion of any of its Eurodollar Loans occurs on a 
		

		
			
		

		
			

		 

		

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			date which is not the last day of an Interest Period with respect thereto; (iii) if any prepayment of any of its Eurodollar Loans is not made on any date specified in a notice of prepayment given by the Borrower; (iv) as a consequence of (x) any other default by the Borrower to repay Eurodollar Loans when required by the terms of this Agreement or any Note held by such Lender or (y) any election made pursuant to Section  1.10(b) or (v) as a consequence of the assignment of a Eurodollar Loan as a result of the request of the Borrower pursuant to Section  1.13;  provided, that this Section  1.11 shall not apply to any scheduled repayment of Loans made pursuant to Section 4.02(B). Any Lender’s determination of compensation owing to it under this Section  1.11 shall, absent manifest error, be final and conclusive and binding on all the parties hereto. 
		

		
			1.12      Change of Lending Office.  Each Lender agrees that on the occurrence of any event giving rise to the operation of Section  1.10(a)(ii) or  (iii), Section  1.10(c), or Section  4.04 with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Loans or Letters of Credit affected by such event; provided, that (x) such designation is made on such terms that such Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object of avoiding the consequence of the event giving rise to the operation of such Section and (y) the Borrower hereby agrees to pay all reasonable costs and expenses (if any) incurred by any Lender in connection with such designation or assignment.  Nothing in this Section  1.12 shall affect or postpone any of the obligations of the Borrower or the right of any Lender provided in Sections  1.10, and  4.04.  
		

		
			1.13      Replacement of Lenders.  (x) If any Lender becomes a Defaulting Lender or otherwise defaults in its obligations to make Loans, (y) upon the occurrence of an event giving rise to the operation of Section  1.10(a)(ii) or  (iii),  Section  1.10(c), or Section  4.04 with respect to any Lender which results in such Lender charging to the Borrower increased costs or (z) in the case of a refusal by a Lender to consent to certain proposed changes, waivers, discharges or terminations with respect to this Agreement which have been approved by the Required Lenders as (and to the extent) provided in Section  13.12(b), the Borrower shall have the right, if no Default or Event of Default then exists (or, in the case of preceding clause (z), will exist immediately after giving effect to such replacement), to replace such Lender with one or more other Eligible Transferees, none of whom shall constitute a Defaulting Lender at the time of such replacement (collectively, the “Replacement Lender”) and each of whom shall be reasonably acceptable to the Administrative Agent (each such Lender which is replaced by a Replacement Lender is referred to herein as a “Replaced Lender”); provided, that: 
		

		
			(i)         at the time of any replacement pursuant to this Section  1.13, the Replaced Lender and the Replacement Lender shall enter into one or more Assignment and Assumption Agreements pursuant to Section  13.04(b) (and with all fees payable pursuant to said Section  13.04(b) to be paid by the Replacement Lender and/or the Replaced Lender (as may be agreed to at such time by and among the Borrower, the Replacement Lender and the Replaced Lender)) pursuant to which the Replacement Lender shall acquire the Commitment (if any) of, all outstanding Loans owing to the Replaced Lender and in connection therewith, the Replacement Lender shall pay to the Replaced Lender in respect thereof an amount equal to the sum of an amount equal to the aggregate principal of, and all accrued and unpaid interest on, all outstanding Loans of the Replaced Lender; and  
		

		
			(ii)        all obligations of the Borrower due and owing to the Replaced Lender at such time (other than those specifically described in clause  (i) above in respect of which the assignment purchase price has been, or is concurrently being, paid) shall be paid in full to such Replaced Lender concurrently with such replacement. 
		

		
			
		

		
			

		 

		

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			Upon receipt by the Replaced Lender of all amounts required to be paid to it pursuant to this Section  1.13, the Administrative Agent shall be entitled (but not obligated) and authorized to execute an Assignment and Assumption Agreement on behalf of such Replaced Lender, and any such Assignment and Assumption Agreement so executed by the Administrative Agent and the Replacement Lender shall be effective for purposes of this Section  1.13 and Section  13.04.  Upon the execution of the respective Assignment and Assumption Agreement, the payment of amounts referred to in clauses  (i) and  (ii) above, recordation of the assignment on the Register by the Administrative Agent pursuant to Section  13.15 and, if so requested by the Replacement Lender, delivery to the Replacement Lender of the appropriate Note executed by the Borrower, the Replacement Lender shall become a Lender hereunder and the Replaced Lender shall cease to constitute a Lender hereunder, except with respect to indemnification provisions under this Agreement (including, without limitation, Sections  1.10,   1.11,   4.04,   12.06,   13.01 and  13.06), which shall survive as to such Replaced Lender. 
		

		
			Section 2.         [Reserved]
		

		
			Section 3.         Fees; Reductions of Commitment.  
		

		
			3.01      Fees.  
		

		
			(a)        The Borrower agrees to pay to the Administrative Agent, for distribution to each Lender that is a Non-Defaulting Lender, a commitment commission (the “Commitment Commission”) for the period from and including the Effective Date to and including the Availability Period End Date (or such earlier date on which the Total Commitment has been terminated) computed at a rate per annum equal to the Applicable Commitment Fee Percentage on the average daily Commitment of such NonDefaulting Lender as in effect from time to time.  Accrued Commitment Commission shall be due and payable quarterly in arrears on each Quarterly Payment Date and on the date upon which the Total Commitment is terminated. 
		

		
			(b)        The Borrower agrees to pay to the Administrative Agent, for distribution to each Lender, a fee (the “Duration Fee”) in an amount equal to 0.25% of the aggregate outstanding principal amount of such Lender’s Loans on the Duration Fee Date, which Duration Fee shall be due and payable on the Duration Fee Date; provided that at any time not less than three Business Days prior to the Duration Fee Date, the Borrower may deliver a certificate, signed by the chief financial officer of the Borrower, certifying that (x) the Borrower (i) has received financing commitments and/or (ii) is pursuing a debt or equity issuance that in the aggregate will be sufficient to refinance the aggregate outstanding principal amount of the Loans on or prior to the Latest Duration Fee Date and (y) the Borrower reasonably expects that (i) such financing commitments will be funded on or prior to the Latest Duration Fee Date and/or (ii) such bond or equity issuance will occur on or prior to the Latest Duration Fee Date, as the case may be, in which case the Duration Fee shall be due and payable on the Latest Duration Fee Date to the extent any Loans are outstanding on such date. 
		

		
			(c)        The Borrower agrees to pay to the Administrative Agent (and/or its respective affiliates) and to the Joint Lead Arrangers such fees as may be agreed to in writing from time to time by the Borrower or any of its Subsidiaries and the Administrative Agent (and/or its respective affiliates) or the Joint Lead Arrangers. 
		

		
			3.02      Voluntary Termination of Commitments.  Upon at least three Business Days’ prior written notice to the Administrative Agent at the Notice Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), the Borrower shall have the right, at any time during the Availability Period, without premium or penalty, to terminate the Commitments in whole, or reduce the Commitments in part in an integral multiple of $1,000,000, provided that each such reduction 
		

		
			
		

		
			

		 

		

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			shall apply proportionately to permanently reduce the Commitment of each Lender. Each notice delivered by the Borrower pursuant to this Section 3.02 shall be irrevocable. 
		

		
			3.03      Mandatory Reduction of Commitments.
		

		
			(a)        The Commitments shall be automatically reduced upon the making of any Borrowing (other than a continuation or conversion of Loans) in an amount equal to the principal amount of such Borrowing.   
		

		
			(b)        Unless previously terminated pursuant to Section 3.03(a) or reduced pursuant to Section 3.02, all Commitments shall automatically and permanently terminate on the Availability Period End Date. 
		

		
			Section 4.         Prepayments; Payments; Taxes.  
		

		
			4.01      Voluntary Prepayments.  (a) The Borrower shall have the right to prepay the Loans comprising the same Borrowing, without premium or penalty, in whole or in part at any time and from time to time on the following terms and conditions:  (i) the Borrower shall give the Administrative Agent prior to 12:00 Noon (New York time) at the Notice Office (x) at least one Business Day’s prior written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay Base Rate Loans and (y) at least three Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay Eurodollar Loans, which notice (in each case) shall specify the amount of such prepayment and the Types of Loans to be prepaid and, in the case of Eurodollar Loans, the specific Borrowing or Borrowings pursuant to which such Eurodollar Loans were made, and which notice the Administrative Agent shall promptly transmit to each of the Lenders; (ii) each partial prepayment of Loans pursuant to this Section  4.01(a) shall be in an aggregate principal amount of at least $1,000,000 (or such lesser amount as is acceptable to the Administrative Agent); provided, that if any partial prepayment of Eurodollar Loans made pursuant to any Borrowing shall reduce the outstanding principal amount of Eurodollar Loans made pursuant to such Borrowing to an amount less than $1,000,000, then such Borrowing may not be continued as a Borrowing of Eurodollar Loans (and same shall automatically be converted into a Borrowing of Base Rate Loans) and any election of an Interest Period with respect thereto given by the Borrower shall have no force or effect and (iii) each prepayment pursuant to this Section  4.01(a) in respect of any Loans shall be applied pro rata among the Loans.  Each notice delivered by the Borrower pursuant to this Section 4.01(a) shall be irrevocable; provided, that a notice of prepayment of all Loans then outstanding may state that such notice is conditioned upon the receipt of proceeds from the incurrence or issuance of Indebtedness or equity interests or the effectiveness of other credit facilities.  
		

		
			(b)        In the event of a refusal by a Lender to consent to certain proposed changes, waivers, discharges or terminations with respect to this Agreement which have been approved by the Required Lenders as (and to the extent) provided in Section  13.12(b), the Borrower may, upon five Business Days’ prior written notice to the Administrative Agent at the Notice Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders) repay all Loans of such Lender, together with accrued and unpaid interest and other amounts (including all amounts, if any, owing pursuant to Section  1.11) owing to such Lender in accordance with, and subject to the requirements of, said Section  13.12(b) so long as the consents, if any, required by Section  13.12(b) in connection with the repayment pursuant to this clause  (b) shall have been obtained.   
		

		
			4.02      [Reserved].   
		

		
			
		

		
			

		 

		

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			4.03      Method and Place of Payment.  Except as otherwise specifically provided herein, all payments under this Agreement and under any Note shall be made to the Administrative Agent for the account of the Lender or Lenders entitled thereto not later than 12:00 Noon (New York time) on the date when due and shall be made in Dollars in immediately available funds at the Payment Office.  Whenever any payment to be made hereunder or under any Note shall be stated to be due on a day which is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day and, with respect to payments of principal, interest shall be payable at the applicable rate during such extension. 
		

		
			4.04      Net Payments.  (a) All payments made by any Credit Party under any Credit Document will be made without setoff, counterclaim or other defense.  Except as provided in Section  4.04(c) and  4.04(d), all such payments will be made free and clear of, and without deduction or withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments, (but excluding, except as provided in the second succeeding sentence, (x) any tax imposed on or measured by the net income or net profits (or any franchise or similar tax imposed in lieu of a net income or net profits tax) of a Lender or the Administrative Agent (each a “Section 4.04 Indemnitee”), as the case may be, pursuant to the laws of the jurisdiction in which such Section 4.04 Indemnitee is organized or the jurisdiction in which the principal office or applicable lending office of such Section 4.04 Indemnitee is located or any subdivision thereof or therein, (y) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in any Credit Document pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Credit Documents (other than pursuant to an assignment request by the Borrower under Section  1.13) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section  4.04, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed it lending office and (z) any U.S. federal withholding taxes imposed under FATCA) and all interest, penalties or similar liabilities with respect to such non excluded taxes, levies, imposts, duties, fees, assessments or other charges (all such nonexcluded taxes, levies, imposts, duties, fees, assessments or other charges being referred to collectively as “Taxes”).  If any Taxes are so levied or imposed, the Borrower and any other Credit Party agrees to pay the full amount of such Taxes, and such additional amounts as may be necessary so that every payment of all amounts due under this Agreement or under any other Credit Document to any Section 4.04 Indemnitee, after withholding or deduction for or on account of any Taxes, will not be less than the amount provided for herein or in such other Credit Document.  If any amounts are payable in respect of Taxes pursuant to the preceding sentence, the Borrower and each other Credit Party jointly and severally agree to reimburse each Section 4.04 Indemnitee, upon the written request of such Section 4.04 Indemnitee, for taxes imposed on or measured by the net income or net profits (or any franchise or similar tax imposed in lieu of a net income or net profits tax) of such Section 4.04 Indemnitee pursuant to the laws of the jurisdiction in which such Section 4.04 Indemnitee is organized or in which the principal office or applicable lending office of such Section 4.04 Indemnitee is located or under the laws of any political subdivision or taxing authority of any such jurisdiction in which such Section 4.04 Indemnitee is organized or in which the principal office or applicable lending office of such Section 4.04 Indemnitee is located and for any withholding of taxes as such Section 4.04 Indemnitee shall determine are payable by, or withheld from, such Section 4.04 Indemnitee in respect of such amounts so paid to or on behalf of such Section 4.04 Indemnitee pursuant to the preceding sentence and in respect of any amounts paid to or on behalf of such Section 4.04 Indemnitee pursuant to this sentence.  The Borrower will furnish to the Administrative Agent within 60 days after the date the payment of any Taxes is due pursuant to applicable law certified copies of tax receipts evidencing such payment by the Borrower or the respective Credit Party reasonably satisfactory to the Administrative Agent.  The Borrower and each other Credit Party jointly and severally agree to indemnify and hold harmless each Section 4.04 Indemnitee and reimburse each such Person upon its written request, for the amount of any Taxes so levied or imposed 
		

		
			
		

		
			

		 

		

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			and paid by each such Person whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; provided,  however, that the Section 4.04 Indemnitee has given notice to the Borrower prior to making such payment. A certificate as to the amount of such payment or liability delivered to any Credit Party by a Section 4.04 Indemnitee (with a copy to the Administrative Agent) shall be conclusive absent manifest error. 
		

		
			(b)       The Credit Parties shall timely pay to the relevant governmental authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes. 
		

		
			(c)       Each Non-U.S. Lender agrees to deliver to the Borrower and the Administrative Agent on or prior to the Effective Date or, in the case of a Non-U.S. Lender that is an assignee or transferee of an interest under this Agreement pursuant to Section  1.13 or  13.04(b) (unless the respective Non-U.S. Lender was already a Non-U.S. Lender hereunder immediately prior to such assignment or transfer), on the date of such assignment or transfer to such Non-U.S. Lender or, in the case of a successor Administrative Agent, the date of the appointment of such Administrative Agent, (i) two accurate and complete original signed copies of U.S. Internal Revenue Service Form W-8ECI or Form W-8BEN or W8BEN-E, as applicable (with respect to a complete exemption from, or a reduction in, withholding under an income tax treaty) (or successor forms) certifying to such Non-U.S. Lender’s entitlement as of such date to a complete exemption from, or a reduction in, United States withholding tax with respect to payments to be made under this Agreement and under any other Credit Document, or (ii) if the Non-U.S. Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code and cannot deliver either U.S. Internal Revenue Service Form W-8ECI or Form W-8BEN or W-8BEN-E, as applicable (with respect to a complete exemption from, or a reduction in, withholding under an income tax treaty) (or any successor forms) pursuant to clause  (i) above, (x) a certificate substantially in the form of Exhibit D-1 (any such certificate, a “Section 4.04(c)(ii) Certificate”) and (y) two accurate and complete original signed copies of U.S. Internal Revenue Service Form W-8BEN or W-8BEN-E, as applicable (with respect to the portfolio interest exemption) (or successor form) certifying to such Non-U.S. Lender’s entitlement as of such date to a complete exemption from, or a reduction in, United States withholding tax with respect to payments of interest to be made under this Agreement and under any other Credit Document.  Any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made.  In addition, each Non-U.S. Lender agrees that from time to time after the date such Non-U.S. Lender becomes a party to this Agreement, when a lapse in time or change in circumstance renders the previous certification obsolete or inaccurate in any material respect, such Non-U.S. Lender will deliver to the Borrower and the Administrative Agent two new accurate and complete original signed copies of U.S. Internal Revenue Service Form W-8ECI, Form W-8BEN or W8BEN-E, as applicable (with respect to the benefits of any income tax treaty), or Form W-8BEN or W8BEN-E, as applicable (with respect to the portfolio interest exemption) and a Section 4.04(c)(ii) Certificate, as the case may be, and such other forms as may be required in order to confirm or establish the entitlement of such Non-U.S. Lender to a continued exemption from or reduction in United States withholding tax with respect to payments under this Agreement and any other Credit Document, or such Non-U.S. Lender shall immediately notify the Borrower and the Administrative Agent of its inability to deliver any such form or Certificate, in which case such Non-U.S. Lender shall not be required to deliver any such form or Certificate pursuant to this Section  4.04(c).  To the extent a Non-U.S. Lender is not the beneficial owner, each such Non-U.S. Lender agrees to deliver to the Borrower and the Administrative Agent executed originals of U.S. Internal Revenue Service Form W-8IMY, accompanied by Form W8ECI, Form W-8BEN or W-8BEN-E, as applicable, a  Section 4.04(c)(ii) Certificate substantially in the form of Exhibit D-2 or Exhibit D-3, Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided, that if the Non-U.S. Lender is a partnership and one or more direct or indirect partners of such Non-U.S. Lender are claiming the portfolio interest exemption, such Non-U.S. Lender may provide a Section 4.04(c)(ii) Certificate substantially in the form of Exhibit D-4 on behalf of each such direct and indirect partner.  Each U.S. Lender (other than a Lender or the Administrative Agent, as the case may be, that may be treated as an exempt recipient based on the indicators described in U.S. Treasury Regulation section 1.6049-4(c)(1)(ii)) agrees to deliver to the Borrower and the Administrative 
		

		
			

		 

		

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			Agent on or prior to the Effective Date or, in the case of a U.S. Lender that is an assignee or transferee of an interest under this Agreement pursuant to Section  1.13 or  13.04(b) (unless the respective U.S. Lender was already a U.S. Lender hereunder immediately prior to such assignment or transfer), on the date of such assignment or transfer to such U.S. Lender or, in the case of a U.S. Lender that is a successor Administrative Agent, the date of the appointment of such Administrative Agent, two accurate and complete original signed copies of U.S. Internal Revenue Service Form W-9 (or successor forms) certifying to such U.S. Lender’s entitlement as of such date to a complete exemption from, or reduction in, United States backup withholding tax with respect to payments to be made under this Agreement and under any other Credit Document.  Notwithstanding anything to the contrary contained in Section  4.04(a), but subject to Section  13.04(b) and the immediately succeeding sentence, (x) the Borrower shall be entitled, to the extent it is required to do so by law, to deduct or withhold income (including income taxes imposed by withholding) or similar taxes imposed by the United States (or any political subdivision or taxing authority thereof or therein) from interest or other amounts payable hereunder for the account of any Lender or the Administrative Agent, as the case may be, to the extent that such Lender or such Administrative Agent, as the case may be, has not provided to the Borrower U.S. Internal Revenue Service Forms that establish a complete exemption from, or a reduction in, such deduction or withholding and (y) the Borrower shall not be obligated pursuant to Section  4.04(a) to gross-up payments to be made to, or to indemnify, a Lender or the Administrative Agent, as the case may be, in respect of income (including income taxes imposed by withholding) or similar taxes imposed by the United States if (I) such Lender or such Administrative Agent, as the case may be, has not provided to the Borrower the U.S. Internal Revenue Service Forms required to be provided to the Borrower pursuant to this Section  4.04(c) or (II) in the case of a payment, other than interest, to a Lender or the Administrative Agent, as the case may be, described in clause (ii) in the first sentence above in this Section  4.04(c), to the extent that such forms do not establish a complete exemption from, or a reduction in, withholding of such taxes. Notwithstanding anything to the contrary contained in the preceding sentence or elsewhere in this Section  4.04 and except as set forth in Section  13.04(b), the Borrower agrees to pay any additional amounts and to indemnify each Lender in the manner set forth in Section  4.04(a) (without regard to the identity of the jurisdiction requiring the deduction or withholding) in respect of any amounts deducted or withheld by it as described in the immediately preceding sentence (i) as a result of any changes that are effective after the date such Lender becomes a party to this Agreement or such Lender changes its lending office in any applicable law, treaty, governmental rule, regulation, guideline or order, or in the interpretation thereof, relating to the deducting or withholding of income (including income taxes imposed by withholding) or similar taxes or (ii) to the extent such Lender is an assignee of another Lender that was entitled, at the time the assignment became effective, to receive additional amounts under this Section  4.04 (except in each case to the extent that such Lender is legally entitled to provide a form establishing exemption, or eligibility for a reduction in, from withholding of such taxes but fails to do so). 
		

		
			(d)       If a payment made by the Borrower or any Credit Party under this Agreement or any other Credit Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times 
		

		
			
		

		
			

		 

		

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			reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.   
		

		
			(e)         If the Borrower pays any additional amount under this Section  4.04 to a Section  4.04 Indemnitee, and such Section  4.04 Indemnitee determines in its sole good faith discretion that it has actually received or realized in connection therewith any refund or any reduction of, or credit against, its tax liabilities in or with respect to the taxable year in which the additional amount is paid (a “Tax Benefit”), such Section  4.04 Indemnitee shall pay to such Borrower an amount that the Section 4.04 Indemnitee shall, in its sole good faith discretion, determine is equal to the net benefit, after tax, which was obtained by such Section  4.04 Indemnitee in such year as a consequence of such Tax Benefit; provided,  however, that (i) any Section  4.04 Indemnitee may determine, in its sole good faith discretion consistent with the policies of such Section  4.04 Indemnitee, whether to seek a Tax Benefit; (ii) any taxes that are imposed on a Section  4.04 Indemnitee as a result of a disallowance or reduction, (including through the expiration of any tax credit carryover or carryback of such Section 4 .04 Indemnitee that otherwise would not have expired) of any Tax Benefit with respect to which such Section 4.04 Indemnitee has made a payment to the Borrower pursuant to this Section  4.04(e) shall be treated as a Tax for which the Borrower is obligated to indemnify such Section  4.04 Indemnitee pursuant to this Section  4.04 without any exclusions or defenses, (iii) nothing in this Section  4.04(e) shall require any Section 4.04 Indemnitee to disclose any confidential information to the Borrower (including, without limitation, its tax returns), and (iv) no Section  4.04 Indemnitee shall be required to pay any amounts pursuant to this Section  4.04(e) at any time that a Default or an Event of Default exists. 
		

		
			(f)         Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any taxes attributable to such Lender (but only to the extent that the Borrower or any Credit Party has not already indemnified the Administrative Agent for such taxes and without limiting the obligation of the Credit Parties to do so and (ii) any taxes attributable to such Lender’s failure to comply with the provisions of Section  13.04(d) relating to the maintenance of a Participant Register, and any reasonable expenses arising therefrom or with respect thereto, whether or not such taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph  (f). 
		

		
			Section 5.         Conditions Precedent to the Effective Date.  The occurrence of the Effective Date pursuant to Section  13.10 is subject to the satisfaction of the following conditions: 
		

		
			5.01      Execution of Agreement; Notes.  On or prior to the Effective Date, (i) this Agreement shall have been executed and delivered as provided in Section  13.10 and (ii) there shall have been delivered to the Administrative Agent for the account of each of the Lenders that has requested the same at least two Business Days prior to the Effective Date, a Note executed by the Borrower in the amount, maturity and as otherwise provided herein. 
		

		
			5.02      Officer’s Certificate.  On the Effective Date, the Administrative Agent shall have received a certificate, dated the Effective Date and signed on behalf of Magellan by the chairman of the board, the chief executive officer, the chief financial officer, the president or any vice president of 
		

		
			
		

		
			

		 

		

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			Magellan, certifying on behalf of Magellan that all of the conditions in Sections 5.05, 5.06, 5.07 and 6.01 have been satisfied on such date; provided that delivery of a Notice of Borrowing pursuant to Section 6.02 shall be deemed to satisfy this Section 5.02 with respect to certification of the conditions in Section 6.01. 
		

		
			5.03      Opinion of Counsel.  On the Effective Date, the Administrative Agent shall have received from Weil, Gotshal & Manges LLP, special counsel to the Credit Parties, an opinion addressed to the Administrative Agent and each of the Lenders and dated the Effective Date, in form and substance reasonably satisfactory to the Administrative Agent. 
		

		
			5.04      Corporate Documents; Proceedings; etc.  (a) On the Effective Date, the Administrative Agent shall have received a certificate from each Credit Party, dated the Effective Date, signed by the chairman of the board, the chief executive officer, the president, the chief financial officer or any vice president of such Credit Party, and attested to by the secretary, any assistant secretary, the general counsel or any vice president of such Credit Party, substantially in the form of Exhibit F with appropriate insertions, together with copies of the certificate or articles of incorporation and by-laws (or equivalent organizational documents) (the “Organizational Documents”) to the extent that such Organizational Documents have been amended or otherwise modified since their delivery to the Administrative Agent on or around June 27, 2016 in connection with the 2016 Credit Agreement, as applicable, of such Credit Party and the resolutions of such Credit Party referred to in such certificate, and each of the foregoing shall be in form and substance reasonably acceptable to the Agents. 
		

		
			(b)        On the Effective Date, the Administrative Agent shall have received good standing certificates (or equivalent documents) from the relevant office in each Credit Party’s jurisdiction of organization (to the extent relevant, customary and available in the jurisdiction of organization of such Credit Party) dated as of a recent date prior thereto. 
		

		
			5.05      Financial Covenants.  As of September 30, 2016, Magellan and the Borrower shall be in compliance with the financial covenants contained in Sections 9.08  and 9.09  on a Pro Forma Basis as if any Borrowing on the Effective Date had occurred on September 30, 2016 (without netting the proceeds of any Borrowing on the Effective Date). 
		

		
			5.06      Adverse Change, Approvals.  
		

		
			(a)        Since September 30, 2016, there shall have been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect, except as disclosed in any Form 8-K subsequent to September 30, 2016 and prior to the Effective Date. 
		

		
			(b)        On or prior to the Effective Date, all necessary governmental (domestic and foreign) and material third party approvals and/or consents in connection with the Transaction (and the payment of all fees, costs and expenses in connection therewith) and the other transactions contemplated hereby shall have been obtained and remain in effect, and all applicable waiting periods with respect thereto shall have expired without any action being taken by any competent authority which, in the reasonable judgment of any Agent, restrains, prevents, or imposes materially adverse conditions upon, the consummation of the Transaction or the other transactions contemplated by the Credit Documents or otherwise referred to herein or therein.  On the Effective Date, there shall not exist any judgment, order, injunction or other restraint prohibiting or imposing materially adverse conditions upon the Transaction or the other transactions contemplated by the Credit Documents or otherwise referred to herein or therein 
		

		
			5.07      Litigation.  On the Effective Date, no litigation by any entity (private or governmental) shall be pending or threatened with respect to this Agreement or any other Credit 
		

		
			
		

		
			

		 

		

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			Document or any documentation executed in connection herewith or therewith, or with respect to the Transaction that has had, or could reasonably be expected to have, a Material Adverse Effect. 
		

		
			5.08      [Reserved]. 
		

		
			5.09      Guaranties.  On the Effective Date, each Guarantor shall have duly authorized, executed and delivered the Guaranty in the form of Exhibit H (as amended, modified or supplemented from time to time, the “Guaranty”), and the Guaranty shall be in full force and effect. 
		

		
			5.10      [Reserved]. 
		

		
			5.11      Financial Statements.  On or prior to the Effective Date, the Administrative Agent shall have received true and correct copies of the historical consolidated financial statements referred to in Section  7.05(a).  
		

		
			5.12      Solvency Certificate.  On the Effective Date, the Administrative Agent shall have received a solvency certificate from the chief financial officer of Magellan in the form of Exhibit J.  
		

		
			5.13      Fees, etc.  On the Effective Date, all costs, fees, expenses (including, without 
		

		
			limitation, reasonable legal fees and expenses) and other compensation contemplated hereby, payable to the Agents (and their respective Affiliates) and the Lenders or otherwise payable in respect of the Transaction shall have been paid by the Borrower to the extent due and, in the case of expenses, invoiced. 
		

		
			5.14      Patriot Act.  The Administrative Agent shall have received, at least two Business Days prior to the Effective Date, all documentation and other information about the Credit Parties that shall have been reasonably requested by the Administrative Agent in writing at least 10 Business Days prior to the Effective Date and that the Administrative Agent reasonably determines is required by United States regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the Patriot Act. 
		

		
			Section 6.         Conditions Precedent to the making of any Loans on any Funding Date.  The obligation of each Lender to make Loans on any Funding Date is subject, as of such Funding Date (except as hereinafter indicated), to the condition that the Effective Date shall have occurred and to the satisfaction of the following conditions: 
		

		
			6.01      No Default; Representations and Warranties.  As of such Funding Date and also after giving effect to the Borrowing on such date, (i) there shall exist no Default or Event of Default and (ii) all representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on such Funding Date (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date); provided that for purposes of Section 5.02, references in this Section 6.01 to the Funding Date shall be deemed to refer to the Effective Date. 
		

		
			6.02      Notice of Borrowing.  (a) Prior to the making of each Loan, the Administrative Agent shall have received a Notice of Borrowing meeting the requirements of Section  1.03(a).   
		

		
			Section 7.         Representations, Warranties and Agreements.  In order to induce the Lenders to enter into this Agreement and to make the Loans as provided herein, each of Magellan and the Borrower makes the following representations, warranties and agreements, in each case after giving effect 
		

		
			
		

		
			

		 

		

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			to the Transaction, all of which shall survive the execution and delivery of this Agreement and the Notes and the making of the Loans. 
		

		
			7.01      Organizational Status.  Each of Magellan and each of its Subsidiaries (i) is a duly organized and validly existing corporation, partnership or limited liability company, as the case may be, in good standing under the laws of the jurisdiction of its organization, (ii) has the corporate, partnership or limited liability company power and authority, as the case may be, to own its property and assets and to transact the business in which it is engaged and presently proposes to engage and (iii) is duly qualified and is authorized to do business and is in good standing in each jurisdiction where the ownership, leasing or operation of its property or the conduct of its business requires such qualifications, except, in each case of clauses  (i) through  (iii) (other than with respect to Magellan and the Borrower) as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
		

		
			7.02      Power and Authority.  Each Credit Party has the corporate, partnership or limited liability company power and authority, as the case may be, to execute, deliver and perform the terms and provisions of each of the Credit Documents to which it is party and has taken all necessary corporate, partnership or limited liability company action, as the case may be, to authorize the execution, delivery and performance by it of each of such Credit Documents.  Each Credit Party has duly executed and delivered each of the Credit Documents to which it is party, and each of such Credit Documents constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law). 
		

		
			7.03      No Violation.  Neither the execution, delivery or performance by any Credit Party of the Credit Documents to which it is a party, nor compliance by it with the terms and provisions thereof, (i) will contravene any provision of any law, statute, rule or regulation (including, without limitation, any Health Care Law) or any order, writ, injunction or decree of any court or governmental instrumentality, (ii) (A) will conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument, or (B) result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of any Credit Party or any of its Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument, in each case to which any Credit Party or any of its Subsidiaries is a party or by which it or any its property or assets is bound or to which it may be subject (including, without limitation, from and after the execution and delivery thereof, any Permitted Subordinated Debt Documents), or (iii) will violate any provision of the certificate or articles of incorporation, certificate of formation, limited liability company agreement or by-laws (or equivalent organizational documents), as applicable, of any Credit Party or any of its Subsidiaries, except to the extent that such contravention, conflict or violation could not reasonably be expected to result in a Material Adverse Effect. 
		

		
			7.04      Approvals.  No order, consent, approval or authorization with, by, or from any governmental or public body or authority is required to be obtained or made by, or on behalf of, any Credit Party in connection with, (i) the execution, delivery and performance of any Credit Document or (ii) the legality, validity, binding effect or enforceability of any Credit Document, except for those that have been obtained or made and are in full force and effect. 
		

		
			7.05      Financial Statements; No Material Adverse Effect.  (a) (i) The unaudited consolidated balance sheet of Magellan as at September 30, 2016 and the related consolidated statements of income, cash flows and retained earnings of Magellan for the fiscal quarter ended September 30, 2016 
		

		
			
		

		
			

		 

		

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			and (ii) the audited consolidated balance sheet of Magellan as at December 31, 2015, and the related audited consolidated statements of income, cash flows and retained earnings of Magellan for the fiscal year ended December 31, 2015, copies of which have been furnished to the Lenders prior to the Effective Date, present fairly in all material respects the consolidated financial position of Magellan at the respective dates of such balance sheets and the consolidated results of the operations of Magellan for the respective periods covered thereby, subject, in the case of clause  (i) to the absence of footnotes and normal year-end audit adjustments.  The foregoing historical financial statements have been prepared in accordance with generally accepted accounting principles consistently applied, subject, in the case of clause  (i) to the absence of footnotes and normal year-end audit adjustments. 
		

		
			(b)        On and as of the Effective Date and after giving effect to the Transaction and after giving effect to all Indebtedness (including any Loans) being issued, incurred or assumed by the Credit Parties in connection therewith (if any), (i) the sum of the assets, at a fair valuation, of Magellan and its Subsidiaries taken as a whole will exceed their respective debts, (ii) Magellan and its Subsidiaries taken as a whole have not incurred and do not intend to incur, and do not believe that they will incur, debts beyond their respective ability to pay such debts as such debts mature, and (iii) Magellan and its Subsidiaries taken as a whole will have sufficient capital with which to conduct their respective businesses.  For purposes of this Section  7.05(b), “debt” means any liability on a claim, and “claim” means (a) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured or (b) right to an equitable remedy for breach of performance if such breach gives rise to a payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured.  The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
		

		
			(c)        [Reserved].
		

		
			(d)        [Reserved]. 
		

		
			(e)        Since September 30, 2016, there has been no event or circumstance, either individually or in the aggregate, that has had, or could reasonably be expected to have, a Material Adverse Effect, except as disclosed in any Form 8-K subsequent to September 30, 2016 and prior to the Effective Date. 
		

		
			7.06      Litigation.  There are no actions, suits or proceedings pending or, to the knowledge of Magellan or the Borrower, threatened (i) with respect to any Credit Document or (ii) that could reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect. 
		

		
			7.07      True and Complete Disclosure.  All factual information (taken as a whole) furnished by or on behalf of Magellan or the Borrower in writing to the Administrative Agent or any Lender (including, without limitation, all information contained in the Credit Documents) for purposes of or in connection with the Transaction, this Agreement and the other Credit Documents, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of Magellan or the Borrower in writing to the Administrative Agent or any Lender does not or will not, when furnished, contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements therein, taken as a whole, not materially misleading, in light of the circumstances under which such information was provided. 
		

		
			7.08      Margin Regulations.  Except as otherwise permitted by Section  9.03, no part of the proceeds of any Loans will be used to purchase or carry any Margin Stock or to extend credit for the
		

		
			
		

		
			

		 

		

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			purpose of purchasing or carrying any Margin Stock.  Neither the making of any Loan nor the use of the proceeds thereof will violate or be inconsistent with the provisions of Regulation T, U or X of the Board of Governors of the Federal Reserve System. 
		

		
			7.09      Tax Returns and Payments.  Each of Magellan and each of its Subsidiaries has timely filed or caused to be timely filed with the appropriate taxing authority all federal and other returns, statements, forms and reports for taxes (the “Returns”) required to be filed by, or with respect to the income, properties or operations of, Magellan and/or any of its Subsidiaries, except where the failure to timely file or cause to be timely filed such Returns could not reasonably be expected to have a Material Adverse Effect.  The Returns accurately reflect all liability for taxes of Magellan and its Subsidiaries for the periods covered thereby, except where the failure to accurately reflect a liability for taxes could not reasonably be expected to have a Material Adverse Effect.  Each of Magellan and each of its Subsidiaries has paid all taxes and assessments payable by it which have become due, other than (i) those for which the failure to pay could not reasonably be expected to have a Material Adverse Effect and (ii) those being contested in good faith and adequately disclosed and fully provided for on the financial statements of Magellan and its Subsidiaries in accordance with generally accepted accounting principles.  There is no action, suit, proceeding, investigation, audit or claim now pending or, to the best knowledge of Magellan, threatened by any authority regarding any material taxes relating to Magellan or any of its Subsidiaries. As of the Effective Date and except as set forth on Schedule X, neither Magellan nor any of its Subsidiaries has entered into an agreement or waiver or been requested to enter into an agreement or waiver extending any statute of limitations relating to the payment or collection of taxes of Magellan or any of its Subsidiaries, or is aware of any circumstances that would cause the taxable years or other taxable periods of Magellan or any of its Subsidiaries not to be subject to the normally applicable statute of limitations. 
		

		
			7.10      Compliance with ERISA.  (a) Each ERISA Plan (and each related trust, insurance contract or fund) is in substantial compliance with its terms and with all applicable laws, including, without limitation, ERISA and the Code.  Except as would not reasonably be expected to have a Material Adverse Effect, each ERISA Plan (and each related trust, if any) which is intended to be qualified under Section 401(a) of the Code has received or can otherwise rely upon a determination letter from the Internal Revenue Service to the effect that it meets the requirements of Sections 401(a) and 501(a) of the Code.  As of the Effective Date, neither Magellan nor any of its Subsidiaries or ERISA Affiliates has ever maintained or contributed to, or had any obligation to maintain or contribute to (or borne any liability with respect to) any “employee pension benefit plan,” within the meaning of Section 3(2) of ERISA, that is a “multiemployer plan,” within the meaning of Section 3(37) of ERISA, or that is subject to the minimum funding standards of Section 412 of the Code or Section 302 of ERISA or subject to Title IV of ERISA.  Except as could not reasonably expected, individually or in the aggregate, to result in a Material Adverse Effect:  all contributions required to be made with respect to an ERISA Plan have been timely made; neither Magellan nor any of its Subsidiaries nor any ERISA Affiliate has incurred any liability (including any indirect, contingent or secondary liability) to or on account of an ERISA Plan pursuant to Section 409, 502(i), 502(l), 515, 4204 or 4212 of ERISA or Section 4975 of the Code or expects to incur any such liability under any of the foregoing sections with respect to any ERISA Plan; no condition exists which presents a risk to Magellan or any of its Subsidiaries or any ERISA Affiliate of incurring a liability to or on account of an ERISA Plan pursuant to the foregoing provisions of ERISA and the Code; no action, suit, proceeding, hearing, audit or investigation with respect to the administration, operation or the investment of assets of any ERISA Plan (other than routine claims for benefits) is pending, expected or threatened which, if adversely determined, could reasonably be expected to result in a liability to Magellan or any of its Subsidiaries; each group health plan (as defined in Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) which covers or has covered employees or former employees of Magellan or any of its Subsidiaries or ERISA Affiliates has at all times been operated in compliance with the provisions of Part 6 of subtitle B of Title I of ERISA and Section 4980B of the Code; no lien imposed 
		

		
			
		

		
			

		 

		

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			under the Code or ERISA on the assets of Magellan or any of its Subsidiaries or any ERISA Affiliate exists or is likely to arise on account of any ERISA Plan; and Magellan and its Subsidiaries may cease contributions to or terminate any employee benefit plan maintained by any of them.   
		

		
			(b)        Except as could not reasonably be expected, individually or in the aggregate, to result in a material liability of Magellan or any of its Subsidiaries:  each Foreign Pension Plan has been maintained in substantial compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders and has been maintained, where required, in good standing with applicable regulatory authorities; all contributions required to be made with respect to a Foreign Pension Plan have been timely made; and neither Magellan nor any of its Subsidiaries has incurred any material obligation in connection with the termination of, or withdrawal from, any Foreign Pension Plan. The present value of the accrued benefit liabilities (whether or not vested) under each Foreign Pension Plan, determined as of the end of Magellan’s most recently ended fiscal year on the basis of actuarial assumptions, each of which is reasonable, did not exceed the current value of the assets of such Foreign Pension Plan allocable to such benefit liabilities by a material amount. 
		

		
			7.11      [Reserved]. 
		

		
			7.12      Properties.  Each of Magellan and each of its Subsidiaries has good and marketable title to, or a validly subsisting leasehold interest in, all material properties owned or leased by it and used in the ordinary course of its business, except for such defects in title as could not reasonably be expected to have a Material Adverse Effect. 
		

		
			7.13      [Reserved].  
		

		
			7.14 Subsidiaries; etc.  (a) Magellan has no Subsidiaries other than (i) those Subsidiaries listed on Schedule V (which Schedule identifies (x) the direct owner of each such Subsidiary on the Effective Date and their percentage ownership therein and (y) each Wholly-Owned Specified Subsidiary) and (ii) new Subsidiaries created or acquired after the Effective Date.  Schedule V also sets forth, as of the Effective Date, the basis for which any Wholly-Owned Specified Subsidiary, pursuant to clause (c) of the definition thereof, of Magellan on the Effective Date cannot enter into any Credit Document. 
		

		
			7.15      Compliance with Statutes, etc.  Each of Magellan and each of its Subsidiaries is in compliance with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all governmental bodies, domestic or foreign, in respect of the conduct of its business and the ownership of its property (including, without limitation, applicable Health Care Laws and statutes, regulations, orders and restrictions relating to environmental standards and controls), except such noncompliances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
		

		
			7.16      Investment Company Act.  Neither Magellan nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended. 
		

		
			7.17      [Reserved].  
		

		
			7.18      Labor Relations.  Neither Magellan nor any of its Subsidiaries is engaged in any unfair labor practice that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  There is (i) no unfair labor practice complaint pending against Magellan or any of its Subsidiaries or, to the knowledge of Magellan, threatened against any of them, before the National
		

		
			
		

		
			

		 

		

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			Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement is so pending against Magellan or any of its Subsidiaries or, to the knowledge of Magellan, threatened against any of them, (ii) no strike, labor dispute, slowdown or stoppage pending against Magellan or any of its Subsidiaries or, to the knowledge of Magellan and Magellan, threatened against Magellan or any of its Subsidiaries and (iii) no union representation question exists with respect to the employees of Magellan or any of its Subsidiaries, except (with respect to any matter specified in clause  (i),   (ii) or  (iii) above, either individually or in the aggregate) such as could not reasonably be expected to have a Material Adverse Effect. 
		

		
			7.19      [Reserved].  
		

		
			7.20      [Reserved].   
		

		
			7.21      [Reserved].   
		

		
			7.22      [Reserved].   
		

		
			7.23      Anti-Corruption Laws and Sanctions.  The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by Magellan and its Subsidiaries and their respective directors, officers and employees with Anti-Corruption Laws and applicable Sanctions, and Magellan, its Subsidiaries and, to the knowledge of Magellan and the Borrower, their respective officers, employees, and directors, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (i) Magellan, any Subsidiary of Magellan or, to the knowledge of Magellan, the Borrower or such Subsidiary, any of their respective directors, officers or employees, or (ii) to the knowledge of Magellan or the Borrower, any agent of Magellan, the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing or use of proceeds will violate AntiCorruption Laws or applicable Sanctions. 
		

		
			Section 8.         Affirmative Covenants.  Magellan and the Borrower hereby covenant and agree that on and after the Effective Date and until all Commitments have terminated and the Loans and Notes (in each case together with interest thereon) and all other Obligations (other than indemnities described in Section  13.13 (and similar indemnities described in the other Credit Documents, in each case) which are not then due and payable) incurred hereunder and thereunder, are paid in full: 
		

		
			8.01      Information Covenants.  Magellan will furnish to the Administrative Agent for distribution to each Lender:  
		

		
			(a)        Quarterly Financial Statements.  Within 45 days after the close of each of the first three quarterly accounting periods in each fiscal year of Magellan (commencing with the fiscal quarter ending March 31, 2017), (i) the consolidated balance sheet of Magellan and its Subsidiaries as at the end of such quarterly accounting period and the related consolidated statements of income and retained earnings and statement of cash flows for such quarterly accounting period and for the elapsed portion of the fiscal year ended with the last day of such quarterly accounting period, in each case setting forth comparative figures for the corresponding quarterly accounting period in the prior fiscal year, all of which shall be certified by an Authorized Officer of Magellan that they fairly present in all material respects in accordance with generally accepted accounting principles the financial condition of Magellan and its Subsidiaries as of the dates indicated and the results of their operations for the periods indicated, subject to normal year-end audit adjustments and the absence of footnotes, and (ii) management’s discussion and analysis of the important operational and financial developments during such quarterly accounting period.  
		

		
			
		

		
			

		 

		

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			(b)       Annual Financial Statements.  Within 90 days after the close of each fiscal year of Magellan (commencing with the fiscal year ending December 31, 2016), (i) the consolidated balance sheet of Magellan and its Subsidiaries as at the end of such fiscal year and the related consolidated statements of income and retained earnings and statement of cash flows for such fiscal year setting forth comparative figures for the preceding fiscal year and certified by Ernst & Young LLP or other independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent, together with a report of such accounting firm (which report shall be without a “going concern” or like qualification or exception and without any qualification or exception as to scope of audit) and (ii) management’s discussion and analysis of the important operational and financial developments during such fiscal year. 
		

		
			(c)       [Reserved].  
		

		
			(d)       [Reserved].   
		

		
			(e)       Officer’s Certificates.  At the time of the delivery of the financial statements provided for in Sections  8.01(a) and  (b), a compliance certificate from an Authorized Officer of Magellan in the form of Exhibit K (a “Compliance Certificate”) certifying on behalf of Magellan that, to such officer’s knowledge after due inquiry, no Default or Event of Default has occurred and is continuing or, if any Default or Event of Default has occurred and is continuing, specifying the nature and extent thereof, which certificate shall (i) set forth in reasonable detail the calculations required to establish whether Magellan and its Subsidiaries were in compliance with the provisions of Sections  9.08 and  9.09 at the end of such fiscal quarter or year, as the case may be and (ii) list all Wholly-Owned Specified Subsidiaries as of the end of such fiscal quarter or year, as the case may be, together with a report of the basis for which each such Wholly-Owned Specified Subsidiary, pursuant to clause (c) of the definition thereof, cannot enter into any Credit Document. 
		

		
			(f)        Notice of Default, Litigation and Material Adverse Effect.  Promptly, and in any event within three Business Days after any officer of Magellan or any of its Subsidiaries obtains knowledge thereof, notice of (i) the occurrence of any event which constitutes a Default or an Event of Default, (ii) any litigation or governmental investigation or proceeding pending against Magellan or any of its Subsidiaries (x) which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or (y) with respect to any Credit Document, or (iii) any other event, change or circumstance that has had, or could reasonably be expected to have, a Material Adverse Effect. 
		

		
			(g)       Other Reports and Filings.  Promptly after the filing or delivery thereof, copies of all financial information, proxy materials and reports, if any, which Magellan or any of its Subsidiaries shall publicly file with the Securities and Exchange Commission or any successor thereto (the “SEC”) or deliver to holders (or any trustee, agent or other representative therefor) of any Permitted Subordinated Debt or any other material Indebtedness pursuant to the terms of the documentation governing such Indebtedness; provided, that so long as Magellan is a reporting company, the posting to the SEC’s website (www.sec.gov/edgar) of financial statements or other information required by this Section  8.01 shall be deemed to satisfy the delivery requirement of such information hereunder. 
		

		
			(h)       [Reserved].   
		

		
			(i)       Other Information.  From time to time, such other information or documents (financial or otherwise) with respect to Magellan or any of its Subsidiaries as the Administrative Agent or any Required Lenders (through the Administrative Agent) may reasonably request. 
		

		
			
		

		
			

		 

		

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			8.02      Books, Records and Inspections; Annual Meetings.  Each of Magellan and the Borrower will, and will cause each of its respective Subsidiaries to, keep proper books of record and accounts in which full, true and correct entries which permit the preparation of financial statements in accordance with generally accepted accounting principles and which conform to all requirements of law shall be made of all dealings and transactions in relation to its business and activities.  Each of Magellan and the Borrower will, and will cause each of its respective Subsidiaries to, permit officers and designated representatives of any Agent or the Required Lenders to visit and inspect, under guidance of officers of Magellan or such Subsidiary, any of the properties of Magellan or such Subsidiary, and to examine the books of account of Magellan or such Subsidiary and discuss the affairs, finances and accounts of Magellan or such Subsidiary with, and be advised as to the same by, its and their officers and independent accountants, all upon reasonable prior notice and at such reasonable times and intervals and to such reasonable extent as any Agent or the Required Lenders may reasonably request; provided,  however, so long as no Event of Default exists, such visits shall be limited to one such visit in any fiscal year of Magellan.   
		

		
			8.03      Maintenance of Property; Insurance.  Each of Magellan and the Borrower will, and will cause each of its respective Subsidiaries to, (i) keep all property necessary to the business of Magellan and its Subsidiaries in good working order and condition, ordinary wear and tear excepted and (ii) maintain with financially sound and reputable insurance companies insurance on all such property and against all such risks as is consistent and in accordance with industry practice for companies similarly situated owning similar properties and engaged in similar businesses as Magellan and its Subsidiaries.  
		

		
			8.04      Existence; Franchises.  Each of Magellan and the Borrower will, and will cause each of its respective Subsidiaries to, do or cause to be done, all things necessary to preserve and keep in full force and effect its existence and its material rights, franchises, licenses, permits, copyrights, trademarks and patents; provided,  however, that nothing in this Section  8.04 shall prevent (i) sales of assets and other transactions by Magellan or any of its Subsidiaries in accordance with Section  9.02 or (ii) the withdrawal by Magellan or any of its Subsidiaries of its qualification as a foreign corporation, partnership or limited liability company, as the case may be, in any jurisdiction if such withdrawal could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
		

		
			8.05      Compliance with Statutes, etc.  Each of Magellan and the Borrower will, and will cause each of its respective Subsidiaries to, comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all governmental bodies, domestic or foreign, in respect of the conduct of its business and the ownership of its property (including applicable statutes, regulations, orders and restrictions relating to Health Care Laws and environmental standards and controls), except such noncompliances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each of Magellan and the Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by Magellan, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. 
		

		
			8.06      [Reserved].  
		

		
			8.07      ERISA.  Each of Magellan and the Borrower will, and will cause each of its respective Subsidiaries to, (a) except as would not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, comply in all material respects with the provisions of ERISA and the Code applicable to ERISA Plans and the laws applicable to any Foreign Pension Plan, (b) furnish to each Lender as soon as possible after, and in any event within ten (10) days after any responsible officer of Magellan, any of its Subsidiaries or any ERISA Affiliate knows or has reason to know that any event described in Section 10.06 has occurred or is reasonably expected to occur that, alone or together with any other event described therein that has occurred or is reasonably expected to occur, could 
		

		
			
		

		
			

		 

		

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			reasonably be expected to result in a material liability of Magellan, any of its Subsidiaries or any ERISA Affiliate, a statement of the chief financial officer of Magellan setting forth details as to such event and the action, if any, that Magellan, or any of its Subsidiaries proposes to take with respect thereto and (c) promptly and in any event within ten (10) days after the filing thereof with the (x) United States Department of Labor, furnish to the Administrative Agent copies of each Schedule SB (Actuarial Information) to the Annual Report (Form 5500 Series) and (y) PBGC, furnish to the Administrative Agent copies of material correspondence with respect to any of the events referred to in clause (b) above, in each case with respect to each ERISA Plan. 
		

		
			8.08      End of Fiscal Years; Fiscal Quarters.  Magellan will cause (i) each of its, and each of its Subsidiaries, fiscal years to end on December 31 of each year and (ii) each of its, each of its Subsidiaries, fiscal quarters to end on March 31, June 30, September 30 and December 31 of each year; provided,  however, (x) one or more of the Subsidiaries of Magellan existing on the Effective Date may have a fiscal year that ends on September 30, (y) one or more of such Subsidiaries may elect to change their fiscal year end to December 31 and (z) one or more of the Subsidiaries of Magellan acquired pursuant to a Permitted Acquisition after the Effective Date may have a fiscal year that ends on a date other than December 31 of each year and may have fiscal quarters that end on dates other than March 31, June 30, September 30 and December 31 of each year. 
		

		
			8.09      Performance of Obligations.  Each of Magellan and the Borrower will, and will cause each of its respective Subsidiaries to, perform all of its obligations under the terms of each mortgage, indenture, security agreement, loan agreement or credit agreement and each other agreement, lease, contract or instrument by which it is bound, except such non-performances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
		

		
			8.10      Payment of Taxes.  Each of Magellan and the Borrower will pay and discharge, and will cause each of its respective Subsidiaries to pay and discharge, all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or upon any properties belonging to it, in each case on a timely basis, and all lawful claims which, if unpaid, might become a Lien or charge upon any properties of Magellan or any of its Subsidiaries not otherwise permitted under Section  9.01(i);  provided, that neither Magellan nor any of its Subsidiaries shall be required to pay any such tax, assessment, charge, levy or claim which (i) could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or (ii) is being contested in good faith and by proper proceedings if it has maintained adequate reserves with respect thereto in accordance with generally accepted accounting principles. 
		

		
			8.11      Use of Proceeds.  The Borrower will use all proceeds of the Loans for the working capital and general corporate purposes of Magellan and its Subsidiaries, including to pay the fees and expenses incurred in connection with the Transaction, for Dividends (including share repurchases) permitted under Section 9.03, Investments permitted under Section 9.05 (including Permitted Acquisitions), repayments of any loan outstanding under the 2014 Credit Agreement, earn-out payments relating to prior acquisitions and/or any other purposes not prohibited by this Agreement. 
		

		
			8.12      Further Assurances; etc.  Magellan will cause each Wholly-Owned Domestic Subsidiary of Magellan (whether existing on the Effective Date or thereafter created, established or acquired) that is not a Wholly-Owned Specified Subsidiary and has not entered into the Guaranty to, within 30 days (or such later date as the Administrative Agent shall agree in its reasonable discretion) of (x) such Subsidiary ceasing to be a Wholly-Owned Specified Subsidiary or (y) the formation or acquisition of such Subsidiary, execute and deliver to the Administrative Agent counterparts of the Guaranty, together with all other relevant documentation (including resolutions and officers’ certificates) 
		

		
			
		

		
			

		 

		

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			of the type described in Section 5.04 as such Subsidiary would have had to deliver if it executed the Guaranty on the Effective Date.  
		

		
			Section 9.         Negative Covenants.  Each of Magellan and the Borrower hereby covenants and agrees that on and after the Effective Date and until all Commitments have terminated and the Loans and Notes (in each case, together with interest thereon) and all other Obligations (other than any indemnities described in Section  13.13 which are not then due and payable) incurred hereunder and thereunder, are paid in full: 
		

		
			9.01      Liens.  Neither Magellan nor the Borrower will, nor will they permit any of their respective Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets (real or personal, tangible or intangible) of Magellan or any of its Subsidiaries, whether now owned or hereafter acquired; provided, that the provisions of this Section  9.01 shall not prevent the creation, incurrence, assumption or existence of the following (Liens described below are herein referred to as “Permitted Liens”): 
		

		
			(i)         inchoate Liens for taxes, assessments or governmental charges or levies not yet due or Liens for taxes, assessments or governmental charges or levies that are immaterial in amount or are being contested in good faith and by appropriate proceedings for which adequate reserves have been established in accordance with generally accepted accounting principles; 
		

		
			 (ii)       Liens in respect of property or assets of Magellan or any of its Subsidiaries imposed by law, which were incurred in the ordinary course of business and do not secure Indebtedness for borrowed money, such as carriers’, warehousemen’s, materialmen’s, repairmen’s, supplier’s and mechanics’ liens and other similar Liens arising in the ordinary course of business, and (x) which do not in the aggregate materially detract from the value of Magellan’s and its Subsidiaries’ property or assets taken as a whole or materially impair the use thereof in the operation of the business of Magellan and its Subsidiaries taken as a whole or (y) which are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing the forfeiture or sale of the property or assets subject to any such Lien; 
		

		
			(iii)       Liens in existence on the Effective Date which are listed, and the property subject thereto described, in Schedule VIII, but only to the respective date, if any, set forth in such Schedule VIII for the removal, replacement and termination of any such Liens, plus renewals, replacements and extensions of such Liens to the extent set forth on such Schedule VIII; provided, that (x) the aggregate principal amount of the Indebtedness, if any, secured by such Liens does not increase from that amount outstanding at the time of any such renewal, replacement or extension and (y) any such renewal, replacement or extension does not encumber any additional assets or properties of Magellan or any of its Subsidiaries; 
		

		
			(iv)       Liens attaching to pharmaceutical products in the ordinary course of business to secure purchase obligations (other than Indebtedness) owing to suppliers and manufacturers in respect of such products; 
		

		
			(v)        licenses, sublicenses, leases or subleases granted to other Persons not materially interfering with the conduct of the business of Magellan or any of its Subsidiaries; 
		

		
			(vi)       Liens upon assets of Magellan or any of its Subsidiaries subject to Capitalized Lease Obligations to the extent such Capitalized Lease Obligations are permitted by Section  9.04(v);  provided, that (x) such Liens only serve to secure the payment of Indebtedness arising under such Capitalized Lease Obligation and (y) the Lien encumbering the asset giving 
		

		
			
		

		
			

		 

		

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			rise to the Capitalized Lease Obligation does not encumber any other asset of Magellan or any Subsidiary; 
		

		
			(vii)       purchase money security interests in Real Property acquired after the Effective Date or with respect to improvements thereto, and Liens placed upon equipment acquired after the Effective Date and used in the ordinary course of business of Magellan or any of its Subsidiaries and (in each case) placed at the time of the acquisition (or construction) thereof by Magellan or such Subsidiary or within 270 days thereafter to secure Indebtedness incurred to pay all or a portion of the purchase (or construction) price thereof or to secure Indebtedness incurred solely for the purpose of financing the acquisition (or construction) of any such Real Property (or improvements thereto) or equipment or extensions, renewals or replacements of any of the foregoing for the same or a lesser amount; provided, that (x) the Indebtedness secured by such Liens is permitted by Section  9.04(v) and (y) in all events, the Lien encumbering the Real Property (or improvements thereto) or equipment so acquired (or constructed) does not encumber any other asset of Magellan or any of its Subsidiaries; 
		

		
			(viii)      easements, rights-of-way, restrictions, encroachments and other similar charges or encumbrances, and minor title deficiencies, in each case not securing Indebtedness and not materially interfering with the conduct of the business of Magellan or any of its Subsidiaries; 
		

		
			(ix)        Liens arising from precautionary UCC financing statement filings regarding operating leases or sales of accounts, payment intangibles, chattel paper or instruments entered into in the ordinary course of business; 
		

		
			(x)         Liens arising out of the existence of judgments or awards in respect of which Magellan or any of its Subsidiaries shall be contesting in good faith, so long as such judgments or awards do not constitute an Event of Default hereunder; 
		

		
			(xi)        statutory and common law landlords’ liens under leases to which Magellan or any of its Subsidiaries is a party;  
		

		
			(xii)       Liens (other than Liens imposed under ERISA) incurred in the ordinary course of business in connection with workers compensation claims, unemployment insurance, social security benefits and other similar forms of governmental insurance benefits and (y) deposits securing the performance of bids, tenders, leases (other than Capitalized Lease Obligations) and contracts (other than Indebtedness) in the ordinary course of business, statutory obligations, surety bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business (exclusive of obligations in respect of the payment for borrowed money); 
		

		
			(xiii)      Liens on property or assets of Magellan or any of its Subsidiaries in favor of any Credit Party;  
		

		
			(xiv)      (A) Liens on property or assets acquired pursuant to a Permitted Acquisition, or on property or assets of a Subsidiary of Magellan in existence at the time such Subsidiary is acquired pursuant to a Permitted Acquisition; provided, that (x) any Indebtedness that is secured by such Liens is permitted to exist under Section  9.04(ix), and (y) such Liens are not incurred in connection with, or in contemplation or anticipation of, such Permitted Acquisition and do not attach to any other asset of Magellan or any of its Subsidiaries; and (B) renewals, replacements and extensions of such Liens; provided, that (x) the aggregate principal amount of the Indebtedness, if any, secured by such Liens does not increase from that amount outstanding at the time of any such renewal, replacement or extension and (y) any such renewal, replacement or 
		

		
			
		

		
			

		 

		

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			extension does not encumber any additional assets or properties of Magellan or any of its Subsidiaries; 
		

		
			(xv)      customary Liens in favor of banking institutions encumbering deposits (including the right of set-off) held by such banking institutions incurred in the ordinary course of business; 
		

		
			(xvi)     Liens solely in the nature of restrictions imposed on certain Subsidiaries of Magellan by governmental authorities to maintain certain levels of capital or net worth requirements due to the regulated nature of such Subsidiaries’ operations;  
		

		
			(xvii)    deposit, escrow or similar accounts held by customers of Magellan or any of its Subsidiaries as security for the obligations of Magellan or any of its Subsidiaries under customer contracts entered into in the ordinary course of business on a basis consistent with past practices; 
		

		
			(xviii)   fiduciary or similar accounts held by Magellan or any of its Subsidiaries for their respective customers and for which Magellan or its respective Subsidiaries process claims on an ASO basis, in each case so long as such accounts are funded with cash provided to Magellan or its respective Subsidiaries by their respective customers; 
		

		
			(xix)     Liens on cash deposits pledged as collateral to secure Indebtedness permitted under Section  9.04(xii) so long as the aggregate amount of cash pledged as collateral at any time outstanding does not exceed $50,000,000;  
		

		
			(xx)      Liens on cash collateral provided under the terms of the 2014 Credit Agreement (as in effect on the Effective Date); and 
		

		
			(xxi)     Liens not otherwise permitted by clauses  (i) through  (xix) of this Section  9.01 on property or assets with an aggregate fair value not in excess of, and securing liabilities not in excess of, the greater of (A) $40,000,000 and (B) 2.25% of Consolidated Total Assets in the aggregate at any time outstanding. 
		

		
			9.02      Consolidation, Merger, Purchase or Sale of Assets, etc.  Neither Magellan nor the Borrower will, nor will they permit any of their respective Subsidiaries to, wind up, liquidate or dissolve its affairs or enter into any partnership, joint venture, or transaction of merger or consolidation, or convey, sell, lease or otherwise dispose of all or any part of its property or assets, except that: 
		

		
			(i)         [Reserved]. 
		

		
			(ii)        each of Magellan and its Subsidiaries may make sales of inventory in the ordinary course of business; 
		

		
			(iii)       Investments may be made to the extent permitted by Section  9.05;  
		

		
			(iv)       each of Magellan and its Subsidiaries may sell or otherwise dispose of obsolete, uneconomic or worn-out equipment in the ordinary course of business; 
		

		
			(v)        Magellan and its Subsidiaries may sell assets (other than (A) the capital stock or other equity interests of the Borrower, (B) the capital stock or other equity interests of any other Subsidiary of Magellan unless all of the capital stock and other equity interests of such other Subsidiary then owned by Magellan and its Subsidiaries are sold in a sale permitted by this clause  (v) or (C) all or substantially all of the assets of Magellan and its Subsidiaries taken as a 
		

		
			
		

		
			

		 

		

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			whole), so long as (a) no Default or Event of Default then exists or would result therefrom, (b) each such sale is in an arm’s-length transaction and Magellan or the respective Subsidiary receives at least fair market value (as determined in good faith by Magellan or such Subsidiary, as the case may be) and (c) the consideration received by Magellan or such Subsidiary consists of at least 75% cash and is paid at the time of the closing of such sale; 
		

		
			(vi)      each of Magellan and its Subsidiaries may lease (as lessee) or license (as licensee) real or personal property (so long as any such lease or license does not create a Capitalized Lease Obligation except to the extent permitted by Section  9.04(v)); 
		

		
			(vii)     each of Magellan and its Subsidiaries may sell or discount, in each case without recourse and in the ordinary course of business, accounts receivable arising in the ordinary course of business, but only in connection with the compromise or collection thereof and not as part of any financing transaction or bulk sale; 
		

		
			(viii)    each of Magellan and its Subsidiaries may grant licenses, sublicenses, leases or subleases to other Persons not materially interfering with the conduct of the business of Magellan or any of its Subsidiaries; 
		

		
			(ix)      any Subsidiary of Magellan may merge with and into, or be dissolved or liquidated into, or transfer any of its assets to, Magellan, the Borrower or a Subsidiary Guarantor so long as (i) in the case of any such merger, dissolution or liquidation involving the Borrower, the Borrower is the surviving corporation of any such transfer, merger, dissolution or liquidation, (ii) in all other cases, Magellan or a Subsidiary Guarantor is the surviving corporation of any such merger, dissolution or liquidation and (iii) in the case of any such transaction pursuant to which any consideration is paid to a Person that is not a Wholly-Owned Subsidiary of Magellan, such consideration shall be permitted to be paid at such time only to the extent that it could otherwise have been paid pursuant to (and Magellan shall be required to satisfy the provisions of) Section  9.05(xi),   9.05(xiv) or  9.05(xv), as applicable; 
		

		
			(x)       any Foreign Subsidiary of Magellan may merge with and into, or be dissolved or liquidated into, or transfer any of its assets to, any Foreign Subsidiary of Magellan so long as (i) in the case of any such transfer, merger, dissolution or liquidation involving a Wholly-Owned Foreign Subsidiary, a Wholly-Owned Foreign Subsidiary of Magellan is the surviving corporation of any such merger, dissolution or liquidation, and (ii) in the case of any such transaction pursuant to which any consideration is paid to a Person that is not a Wholly-Owned Subsidiary of Magellan, such consideration shall be permitted to be paid at such time only to the extent that it could otherwise have been paid pursuant to (and Magellan shall be required to satisfy the provisions of) Section  9.05(xi),   9.05(xiv) or  9.05(xv), as applicable; 
		

		
			(xi)      the Borrower or any other Subsidiary of Magellan may merge with any other Person in order to effect an Investment permitted by Section 9.05;  provided, that (x) if such merger involves the Borrower (i) the Borrower shall be the continuing or surviving Person or, in the case of a merger where the Borrower is not the continuing or surviving Person, the Person formed by or surviving any such merger shall be an entity organized or existing under the laws of the United States, any state thereof, the District of Columbia or any territory thereof (the Borrower or such Person, as the case may be, being herein referred to as the “Successor Borrower”) and (ii) the Successor Borrower (if other than the Borrower) shall expressly assume all the obligations of the Borrower under this Agreement and the other Credit Documents pursuant to a supplement hereto or thereto in form reasonably satisfactory to the Administrative Agent, (y) if such merger involves a Subsidiary Guarantor (and does not involve the Borrower), 
		

		
			
		

		
			

		 

		

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			the continuing or surviving entity shall be a Subsidiary Guarantor and (z) in all cases, a Wholly-Owned Subsidiary shall be the continuing or surviving entity; and 
		

		
			(xii)      (A) any Subsidiary of Magellan (other than the Borrower) that has no assets or liabilities (other than immaterial assets or liabilities) may be dissolved or liquidated and (B) any Subsidiary of Magellan that is not a Credit Party may merge with and into, or be dissolved or liquidated into, or transfer any or all of its assets to, a Subsidiary of Magellan that is not a Credit Party so long as (i) in the case of any such transfer, merger, dissolution or liquidation involving a Wholly-Owned Subsidiary, a Wholly-Owned Subsidiary of Magellan is the surviving entity of any such transaction and (ii) in the case of any such transaction pursuant to which any consideration is paid to a Person that is neither Magellan nor a Wholly-Owned Subsidiary thereof, such consideration shall be permitted to be paid at such time only to the extent that it could otherwise have been paid pursuant to (and Magellan shall be required to satisfy the provisions of) Section  9.05(xi),   9.05(xiv) or  9.05(xv), as applicable. 
		

		
			9.03      Dividends.  Neither Magellan nor the Borrower will, nor will they permit any of their respective Subsidiaries to, authorize, declare or pay any Dividends with respect to Magellan or any of its Subsidiaries, except that: 
		

		
			(i)        any Subsidiary of Magellan may (x) pay Dividends to Magellan or to any Wholly-Owned Subsidiary of Magellan and (y) if such Subsidiary is not a Wholly-Owned Subsidiary of Magellan, pay Dividends to its shareholders, partners or members generally so long as Magellan or its respective Subsidiary which owns the equity interest or interests in the Subsidiary paying such Dividends receives at least its proportionate share thereof (based upon its relative holdings of equity interests in the Subsidiary paying such Dividends and taking into account that the relative preferences, if any, of the various classes of equity interests in such Subsidiary);  
		

		
			(ii)        so long as there shall exist no Default or Event of Default (both before and after giving effect to the payment thereof), Magellan may repurchase outstanding shares of its capital stock (or options to purchase such capital stock) following the death, disability, retirement or termination of employment of employees, officers or directors of Magellan or any of its Subsidiaries; provided, that the aggregate amount of all Dividends paid by Magellan pursuant to this clause (ii) shall not exceed $5,000,000 in any fiscal year of Magellan;  
		

		
			 (iii)      Magellan may pay or make Dividends (including to repurchase shares of its capital stock) so long as (a) no Default or Event of Default then exists or would result therefrom, (b) calculations are made by Magellan with respect to the financial covenants contained in Sections  9.08 and  9.09 for the respective Calculation Period on Pro Forma Basis as if the respective Dividend (as well as all other Dividends theretofore paid or made after the first day of such Calculation Period) had occurred on the first day of such Calculation Period, and such calculations shall show (x) in the case of Section  9.08, that such financial covenant would have been complied with as of the last day of such Calculation Period and (y) in the case of Section 9.09 , that the Total Leverage Ratio would have been no greater than 2.00:1.00 as of the last day of such Calculation Period, (c) immediately after giving effect to such proposed Dividend, the sum of the Total Unutilized Revolving Loan Commitment plus the aggregate amount of all Unrestricted cash and Cash Equivalents of Magellan and its Subsidiaries at such time shall equal or exceed $50,000,000 and (d) in connection with the payment or making of cash Dividends to holders of its capital stock (but not including, for the purposes of this sub-clause (d) only, the repurchase of shares of Magellan’s capital stock), Magellan shall have delivered to the Administrative Agent (with copies for each Lender) a certificate executed by one of its 
		

		
			
		

		
			

		 

		

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			Authorized Officers certifying compliance with the requirements of preceding clauses (a) through (c), inclusive, and containing the calculations (in reasonable detail) required by preceding clauses (c) and (d); 
		

		
			(iv)       so long as no Default or Event of Default then exists or would result therefrom, Magellan may pay or make additional Dividends (including to repurchase shares of its capital stock) in an aggregate amount not to exceed $10,000,000 in any fiscal year of Magellan; 
		

		
			(v)        (i) Magellan may redeem in whole or in part any of its capital stock for another class of its capital stock (other than Disqualified Stock) or rights to acquire its capital stock (other than Disqualified Stock) and (ii) Magellan may declare and make Dividends solely in its capital stock (other than Disqualified Stock); 
		

		
			(vi)       Magellan may pay any Dividend within 30 days after the date of declaration thereof, if at the date of declaration such payment would have complied with the provisions of this Agreement; and 
		

		
			(vii)     Magellan may (a) pay cash in lieu of fractional shares in connection with any Dividend, split or combination thereof and (b) honor any conversion request by a holder of convertible Indebtedness and make cash payments in lieu of fractional shares in connection with any such conversion. 
		

		
			9.04      Indebtedness.  Neither Magellan nor the Borrower will, nor will they permit any of their respective Subsidiaries to, contract, create, incur, assume or suffer to exist any Indebtedness, except: 
		

		
			(i)         Indebtedness incurred pursuant to this Agreement and the other Credit Documents; 
		

		
			(ii)        Indebtedness outstanding on the Effective Date and listed on Schedule VI (as reduced by any permanent repayments of principal thereof), including any subsequent extension, renewal or refinancing thereof (except to the extent set forth on Schedule VI); provided, that the aggregate principal amount of the Indebtedness to be extended, renewed or refinanced does not increase from that amount outstanding at the time of any such extension, renewal or refinancing; 
		

		
			(iii)       Indebtedness of Magellan or any of its Subsidiaries under Interest Rate Protection Agreements entered into with respect to other Indebtedness permitted under this Section  9.04 so long as the entering into of such Interest Rate Protection Agreements are bona fide hedging activities and are not for speculative purposes; 
		

		
			 (iv)      Indebtedness of Magellan or any of its Subsidiaries under Other Hedging Agreements providing protection to Magellan and its Subsidiaries against fluctuations in currency values in connection with Magellan’s or any of its Subsidiaries’ foreign operations so long as the entering into of such Other Hedging Agreements are bona fide hedging activities and are not for speculative purposes; 
		

		
			(v)        Indebtedness of Magellan and its Subsidiaries evidenced by Capitalized Lease Obligations and purchase money Indebtedness described in Section  9.01(vii);  provided, that in no event shall the sum of the aggregate principal amount of all Capitalized Lease Obligations and purchase money Indebtedness permitted by this clause  (v) exceed $15,000,000 at any time outstanding; 
		

		
			
		

		
			

		 

		

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			(vi)       intercompany Indebtedness among Magellan and its Subsidiaries to the extent permitted by Sections  9.05(viii) or  (xiv);  
		

		
			(vii)      to the extent that same constitutes Indebtedness, obligations in respect of earn-out arrangements permitted pursuant to a Permitted Acquisition; 
		

		
			(viii)     Indebtedness consisting of guaranties by the Credit Parties of each other’s Indebtedness permitted under this Agreement; 
		

		
			(ix)       (A) Indebtedness of a Subsidiary of Magellan acquired pursuant to a Permitted Acquisition (or Indebtedness assumed at the time of a Permitted Acquisition of an asset securing such Indebtedness); provided, that (x) such Indebtedness was not incurred in connection with, or in anticipation or contemplation of, such Permitted Acquisition, (y) such Indebtedness does not constitute debt for borrowed money, it being understood and agreed that Capitalized Lease Obligations and purchase money Indebtedness shall not constitute debt for borrowed money for purposes of this clause (y) and (z) the aggregate principal amount of all Indebtedness permitted by this clause (ix) shall not exceed $25,000,000 at any one time outstanding and (B) any subsequent extension, renewal or refinancing of such Indebtedness; provided, that the aggregate principal amount of the Indebtedness to be extended, renewed or refinanced does not increase from that amount outstanding at the time of any such extension, renewal or refinancing; 
		

		
			(x)        Indebtedness in respect of overdrafts and related liabilities arising from treasury, depository, credit or debit card, purchasing card, or cash management services (including any automated clearing house transfers of funds netting services, automatic clearinghouse arrangements, overdraft protections and similar arrangements) in each case in connection with deposit accounts incurred in the ordinary course of business; 
		

		
			(xi)       Indebtedness of Magellan or any of its Subsidiaries which may be deemed to exist in connection with agreements providing for indemnification, purchase price adjustments and similar obligations in connection with the acquisition or disposition of assets in accordance with the requirements of this Agreement so long as any such obligations are those of the Person making the respective acquisition or sale, and are not guaranteed by any other Person except as permitted by Section  9.04(viii);  
		

		
			(xii)      so long as no Default or Event of Default then exists or would result therefrom, Indebtedness of Magellan or any of its Subsidiaries in respect of letters of credit issued for the account of Magellan or any of its Subsidiaries in the ordinary course of business and supporting L/C Supportable Obligations (as defined in the 2014 Credit Agreement) so long as the aggregate stated amount of all such Indebtedness (including all unreimbursed drawings thereunder) does not exceed $50,000,000 at any time outstanding;  
		

		
			(xiii)     Permitted Subordinated Debt of Magellan, and unsecured subordinated guaranties thereof by the Borrower and the Subsidiary Guarantors, so long as (i) all such Indebtedness is incurred in accordance with the requirements of the definition of Permitted Subordinated Debt, (ii) no Default or Event of Default exists at the time of incurrence thereof or would result therefrom, (iii) the Net Debt Proceeds therefrom are used to effect a Permitted Acquisition in accordance with the requirements of Section  9.05(xi), (iv) calculations are made by Magellan with respect to the financial covenants contained in Sections  9.08 and  9.09 for the respective Calculation Period on a Pro Forma Basis as if such Permitted Subordinated Debt (as well as all other Permitted Subordinated Debt theretofore incurred after the first day of such 
		

		
			
		

		
			

		 

		

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			calculation Period) had been incurred on the first day of such Calculation Period, and such calculations shall show that such financial covenants would have been complied with as of the last day of such Calculation Period and (v) Magellan shall have delivered to the Administrative Agent (with copies for each Lender) a certificate executed by one of its Authorized Officers certifying compliance with the requirements of preceding clauses  (i) through  (iv), inclusive, and containing the calculations (in reasonable detail) required by preceding clause  (iv);  
		

		
			(xiv)     additional Indebtedness of Magellan and its Subsidiaries so long as (x) no Default or Event of Default then exists or would result therefrom and (y) calculations are made by Magellan with respect to the financial covenants contained in Sections 9 .08 and  9.09 for the respective Calculation Period on a Pro Forma Basis as if the respective incurrence of Indebtedness (as well as all other Indebtedness theretofore incurred after the first day of such Calculation Period) had occurred on the first day of such Calculation Period, and such calculations shall show that such financial covenants would have been complied with as of the last day of such Calculation Period (without netting the proceeds of the applicable incurrence); 
		

		
			(xv)      Indebtedness consisting of the financing of insurance premiums in the ordinary course of business; 
		

		
			(xvi)     Indebtedness representing deferred compensation to employees of a Magellan or any of its Subsidiaries incurred in the ordinary course of business; 
		

		
			(xvii)    Indebtedness supported by a letter of credit in a principal amount not to exceed the face amount of such letter of credit;  
		

		
			(xviii)   unsecured Indebtedness outstanding under the 2014 Credit Agreement and including any subsequent extension, renewal or refinancing thereof with unsecured Indebtedness, in an aggregate principal amount not to exceed $700,000,000 at any time outstanding; and 
		

		
			(xix)     unsecured Indebtedness outstanding under the 2016 Credit Agreement and including any subsequent extension, renewal or refinancing thereof with unsecured indebtedness, in an aggregate principal amount not to exceed $200,000,000 at any time outstanding. 
		

		
			9.05      Advances, Investments and Loans.  Neither Magellan nor the Borrower will, nor will they permit any of their respective Subsidiaries to, directly or indirectly, lend money or credit or make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any other Person, or purchase or own a futures contract or otherwise become liable for the purchase or sale of currency or other commodities at a future date in the nature of a futures contract, or hold any cash or Cash Equivalents (each of the foregoing an “Investment” and, collectively, “Investments”), except that the following shall be permitted: 
		

		
			(i)         Magellan and its Subsidiaries may acquire and hold accounts receivable owing to any of them, if created or acquired in the ordinary course of business; 
		

		
			(ii)        Magellan and its Subsidiaries may acquire and hold cash and Cash Equivalents; 
		

		
			(iii)       Magellan and its Subsidiaries may hold the Investments held by them on the Effective Date and described on Schedule IX;  provided, that any additional Investments made with respect thereto shall be permitted only if permitted under the other provisions of this Section  9.05;  
		

		
			
		

		
			

		 

		

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			(iv)      Magellan and its Subsidiaries may acquire and own investments (including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in good faith settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business; 
		

		
			(v)       Magellan and its Subsidiaries may make loans and advances to their officers and employees in the ordinary course of business (including for the exercise of stock options and similar rights) of Magellan and its Subsidiaries in an aggregate amount not to exceed $5,000,000 at any time outstanding (determined without regard to any write-downs or write-offs of such loans and advances); 
		

		
			(vi)      Magellan and its Subsidiaries may enter into Interest Rate Protection Agreements to the extent permitted by Section  9.04(iii);  
		

		
			(vii)     Magellan and its Subsidiaries may enter into Other Hedging Agreements to the extent permitted by Section  9.04(iv);  
		

		
			(viii)    Magellan and its Wholly-Owned Subsidiaries may make intercompany Investments between and among one another; 
		

		
			(ix)      [Reserved]; 
		

		
			(x)       [Reserved]; 
		

		
			(xi)      (A) Subject to the provisions of this clause (xi), Magellan, the Borrower and each of Magellan’s other Wholly-Owned Subsidiaries may from time to time effect Permitted Acquisitions, so long as (in each case except to the extent the Required Lenders otherwise specifically agree in writing in the case of a specific Permitted Acquisition):  (1) no Default or Event of Default shall have occurred and be continuing at the time of the consummation of the proposed Permitted Acquisition or immediately after giving effect thereto; (2) calculations are made by Magellan with respect to the financial covenants contained in Sections  9.08 and  9.09 for the respective Calculation Period on a Pro Forma Basis as if the respective Permitted Acquisition (as well as all other Permitted Acquisitions theretofore consummated after the first day of such Calculation Period) had occurred on the first day of such Calculation Period, and such calculations shall show that such financial covenants would have been complied with as of the last day of such Calculation Period; (3) all of the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the date of such Permitted Acquisition (both before and after giving effect thereto), unless stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date; (4) after giving effect to such proposed Permitted Acquisition and the payment of all amounts (including fees and expenses) owing in connection therewith, the sum of the Total Unutilized Revolving Loan Commitment plus the aggregate amount of all Unrestricted cash and Cash Equivalents of Magellan and its Subsidiaries at such time shall equal or exceed the sum of (I) $50,000,000 plus (II) an amount equal to the aggregate amount reasonably likely to be payable within the 12 months following such Permitted Acquisition in respect of all post-closing purchase price adjustments, earn-out payments, noncompete payments and/or deferred purchase payments (or similar payments), in each case required or which will be required in connection with such Permitted Acquisition (and all other Permitted Acquisitions for which such purchase price adjustments and other payments may be required to be made) as determined by Magellan in good faith on the date of such acquisition; and 
		

		
			
		

		
			

		 

		

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			(5)  Magellan shall have delivered to the Administrative Agent within five (5) Business Days of such Permitted Acquisition a certificate executed by one of its Authorized Officers certifying compliance with the requirements of preceding clauses  (1) through  (5), inclusive (to the extent applicable), and containing the calculations (in reasonable detail) required by preceding clauses  (2) and  (4).  
		

		
			(B)        Magellan will cause each Wholly-Owned Domestic Subsidiary, which is formed to effect, or is acquired pursuant to, a Permitted Acquisition to comply with, and to execute and deliver all of the documentation as and to the extent required by, Section  8.12.  
		

		
			(xii)       Magellan may acquire and hold obligations of one or more officers, directors or other employees of Magellan or any of its Subsidiaries in connection with such officers’, directors’ or employees’ acquisition of shares of capital stock of Magellan so long as no cash is paid by Magellan or any of its Subsidiaries to such officers, directors or employees in connection with the acquisition of any such obligations; 
		

		
			(xiii)      Magellan and its Subsidiaries may acquire and hold promissory notes and other non-cash consideration issued by the purchaser of assets in connection with a sale of such assets to the extent permitted by Section  9.02(v);  
		

		
			(xiv)       Magellan and its Subsidiaries may make Investments so long as (i) no Default or Event of Default then exists or would result therefrom, (ii) calculations are made by Magellan with respect to the financial covenants contained in Sections  9.08 and  9.09 for the respective Calculation Period on Pro Forma Basis as if the respective Investment (as well as other Investments theretofore consummated after the first day of such Calculation Period) had occurred on the first day of such Calculation Period, and such calculations shall show that financial covenants would have been complied with as of the last day of such Calculation Period, (iii) immediately after giving effect to such proposed Investment, the sum of the Total Unutilized Revolving Loan Commitment plus the aggregate amount of all Unrestricted cash and Cash Equivalents of Magellan and its Subsidiaries at such time shall equal or exceed $50,000,000 and (iv) Magellan shall have delivered to the Administrative Agent (with copies for each Lender) a certificate executed by one of its Authorized Officers certifying compliance with the requirements of preceding clauses ( i) through  (iii), inclusive, and containing the calculations (in reasonable detail) required by preceding clauses  (ii) and  (iii);  
		

		
			(xv)       so long as no Default or Event of Default then exists or would result therefrom, Magellan and its Subsidiaries may make Investments not otherwise permitted by clauses  (i) through  (xiv) of this Section  9.05 in an aggregate amount not to exceed $25,000,000 at any time outstanding (determined without regard to any write downs or write-offs of such Investments); and 
		

		
			(xvi)      Magellan and its Subsidiaries may make Investments in joint ventures and non-Wholly-Owned Subsidiaries in an aggregate amount not to exceed $50,000,000 in any fiscal year. 
		

		
			9.06      Transactions with Affiliates.  Neither Magellan nor the Borrower will, nor will they permit any of their respective Subsidiaries to, enter into any transaction or series of related transactions with any Affiliate of Magellan or any of its Subsidiaries involving aggregate consideration in excess of $5,000,000, other than in the ordinary course of business and on terms and conditions substantially as favorable to Magellan or such Subsidiary as would reasonably be obtained by Magellan or such Subsidiary at that time in a comparable arm’s length transaction with a Person other than an Affiliate, except that:  
		

		
			
		

		
			

		 

		

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			(i)         Dividends may be paid to the extent provided in Section  9.03;  
		

		
			(ii)        loans may be made and other transactions may be entered into by Magellan and its Subsidiaries to the extent permitted by Sections  9.02,   9.04 and  9.05;  
		

		
			(iii)       customary fees, indemnities and reimbursements may be paid to officers and directors of Magellan and its Subsidiaries; 
		

		
			(iv)       Magellan and its Subsidiaries may enter into, and may make payments under, employment agreements, employee benefits plans, stock option plans, indemnification provisions, severance arrangements, and other similar compensatory arrangements with officers, employees and directors of Magellan and its Subsidiaries in the ordinary course of business;  
		

		
			(v)        periodic allocations of operating and overhead expenses among Magellan and its Subsidiaries may be made;  
		

		
			(vi)       Magellan or any Subsidiary of Magellan may pay to any Credit Party management, consulting or similar fees on a basis consistent with past practices;  
		

		
			(vii)      Magellan and its Subsidiaries may enter into transactions that are approved by a majority of the Disinterested Directors; and 
		

		
			(viii)     each Credit Party may enter into transactions with one or more other Credit Parties. 
		

		
			Notwithstanding anything to the contrary contained in this Agreement, Magellan will not, and will not permit any of its Subsidiaries to, pay any management, consulting or similar fees to any of their respective Affiliates other than as permitted by clause  (vi) above. 
		

		
			9.07      [Reserved].   
		

		
			9.08      Consolidated Interest Coverage Ratio.  Magellan and the Borrower will not permit the Consolidated Interest Coverage Ratio for any Test Period ending on the last day of any fiscal quarter of Magellan to be less than 3.00:1.00. 
		

		
			9.09      Total Leverage Ratio.  Magellan and the Borrower will not permit the Total Leverage Ratio for any Test Period ending on the last day of any fiscal quarter of Magellan to be greater than 2.50:1.00. 
		

		
			9.10      Limitations on Payments of Permitted Subordinated Debt; Modifications of Certificate of Incorporation, By-Laws and Documents Governing Permitted Subordinated Debt.  Neither Magellan nor the Borrower will, nor will they permit any of their respective Subsidiaries to: 
		

		
			(i)         make (or give any notice in respect of) any voluntary or optional payment or prepayment on or redemption or acquisition for value of, or any prepayment or redemption as a result of any asset sale, change of control or similar event of (including, in each case without limitation, by way of depositing with the trustee with respect thereto, or with any other Person, money or securities before due for the purpose of paying when due), any Permitted Subordinated Debt; provided,  however, that (A) so long as no Default or Event of Default then exists or would result therefrom, Magellan may redeem or repurchase outstanding Permitted Subordinated Debt so long as the aggregate amount expended in respect of all such redemptions and repurchases
		

		
			
		

		
			

		 

		

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			does not exceed  $10,000,000 in any fiscal year of Magellan and (B) Magellan may effect additional redemptions or repurchases of outstanding Permitted Subordinated Debt so long as (i) no Default or Event of Default then exists or would result therefrom, (ii) calculations are made by Magellan with respect to the financial covenants contained in Sections  9.08 and 9 .09 for the respective Calculation Period on Pro Forma Basis as if the respective redemption or repurchase (as well as all other redemptions and repurchases theretofore consummated after the first day of such Calculation Period) had occurred on the first day of such Calculation Period, and such calculations shall show (x) in the case of Section  9.08, that such financial covenant would have been complied with as of the last day of such Calculation Period and (y) in the case of Section  9.09, that the Total Leverage Ratio would have been no greater than 2.00:1.00 as of the last day of such Calculation Period, (iii) immediately after giving effect to such proposed redemption or repurchase, the sum of the Total Unutilized Revolving Loan Commitment plus the aggregate amount of all Unrestricted cash and Cash Equivalents of Magellan and its Subsidiaries at such time shall equal or exceed $50,000,000 and (iv) Magellan shall have delivered to the Administrative Agent (with copies for each Lender) a certificate executed by one of its Authorized Officers certifying compliance with the requirements of preceding clauses (i) through (iii), inclusive and containing the calculations (in reasonable detail) required by preceding clauses  (ii) and  (iii);  
		

		
			(ii)      on and after the execution and delivery of any Permitted Subordinated Debt Document, amend or modify (or permit the amendment or modification of) any Permitted Subordinated Debt Document, other than any such amendment or modification that (i) makes the provisions thereof less restrictive on Magellan and its Subsidiaries (including with respect to any representation, warranty, covenant, default or event of default), (ii) reduces interest rates, commissions or fees paid (or to be paid) by Magellan or any of its Subsidiaries in connection therewith, (iii) extends the stated maturity of any Indebtedness thereunder, (iv) reduces or eliminates any prepayment premiums or (v) is otherwise not adverse to the Lenders in any material respect (in the reasonable opinion of the Administrative Agent); provided, that no amendment or modification may be made to the subordination provisions contained in any Permitted Subordinated Debt Document without the prior written consent of the Administrative Agent; and 
		

		
			(iii)     amend, modify or change its certificate or articles of incorporation (including, without limitation, by the filing or modification of any certificate or articles of designation), certificate of formation, limited liability company agreement or by-laws (or the equivalent organizational documents), as applicable, or any agreement entered into by it with respect to its capital stock or other equity interests (including any Shareholders’ Agreement), or enter into any new agreement with respect to its capital stock or other equity interests, unless such amendment, modification, change or other action contemplated by this clause  (iii) could not reasonably be expected to be adverse to the interests of the Lenders in any material respect. 
		

		
			9.11    Use of Proceeds.  The Borrower will not request any Borrowing and the Borrower shall not directly, or, to its knowledge, indirectly use the proceeds of any Borrowing (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto or (d) in violation of Section 7.08.  
		

		
			9.12   Business, etc.  Neither Magellan nor the Borrower will, nor will they permit any of their respective Subsidiaries to, engage in any business other than the businesses engaged in by
		

		
			
		

		
			

		 

		

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			Magellan and its Subsidiaries as of the Effective Date and reasonable extensions thereof and businesses ancillary or complementary thereto. 
		

		
			Section 10.      Events of Default.  Upon the occurrence of any of the following specified events (each an “Event of Default”): 
		

		
			10.01    Payments.  The Borrower shall (i) default in the payment when due of any principal of any Loan or any Note or (ii) default, and such default shall continue unremedied for three or more Business Days, in the payment when due of any interest on any Loan or Note or any other amounts owing hereunder or under any other Credit Document; or 
		

		
			10.02    Representations, etc.  Any representation, warranty or statement made or deemed made by any Credit Party herein or in any other Credit Document or in any certificate delivered to the Administrative Agent or any Lender pursuant hereto or thereto shall prove to be untrue in any material respect on the date as of which made or deemed made; or 
		

		
			10.03    Covenants.  Magellan or any of its Subsidiaries shall (i) default in the due performance or observance by it of any term, covenant or agreement contained in Section  8.01(f)(i),   8.04 (solely with respect to the Borrower and Magellan),  8.08,   8.11 or  Section 9 or (ii) default in the due performance or observance by it of any other term, covenant or agreement contained in this Agreement or in any other Credit Document (other than those set forth in Sections  10.01 and  10.02) and such default pursuant to this sub clause  (ii) shall continue unremedied for a period of 30 days after written notice thereof to the defaulting party by the Administrative Agent or the Required Lenders; or 
		

		
			10.04    Default Under Other Agreements.  (i) Magellan or any of its Subsidiaries shall (x) default in any payment of any Indebtedness (other than the Obligations) beyond the period of grace, if any, provided in an instrument or agreement under which such Indebtedness was created or (y) default in the observance or performance of any agreement or condition relating to any Indebtedness (other than the Obligations) or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause (determined without regard to whether any notice is required), any such Indebtedness to become due prior to its stated maturity, or (ii) any Indebtedness (other than the Obligations) of Magellan or any of its Subsidiaries shall be declared to be (or shall become) due and payable, or required to be prepaid other than by a regularly scheduled required prepayment, prior to the stated maturity thereof; provided, that it shall not be a Default or an Event of Default under this Section  10.04 unless the aggregate principal amount of all Indebtedness as described in preceding clauses  (i) and  (ii) is at least $25,000,000; or 
		

		
			10.05    Bankruptcy, etc.  Magellan or any of its Subsidiaries shall commence a voluntary case concerning itself under Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto (the “Bankruptcy Code”); or an involuntary case is commenced against Magellan or any of its Subsidiaries, and the petition is not controverted within 10 days, or is not dismissed within 60 days, after commencement of the case; or a custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge of, all or substantially all of the property of Magellan or any of its Subsidiaries which custodian is not dismissed within 60 days after the date of such appointment or the date such custodian takes charge, or Magellan or any of its Subsidiaries commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to Magellan or any of its Subsidiaries, or there is commenced against Magellan or any of its Subsidiaries any such proceeding which remains undismissed for a period of 60 days, or Magellan or any of its Subsidiaries is
		

		
			
		

		
			

		 

		

			36

		

 

		

		
			adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or Magellan or any of its Subsidiaries suffers any appointment of any custodian or the like for it or any substantial part of its property to continue undischarged or unstayed for a period of 60 days; or Magellan or any of its Subsidiaries makes a general assignment for the benefit of creditors; or any corporate, limited liability company or similar action is taken by Magellan or any of its Subsidiaries for the purpose of effecting any of the foregoing; or 
		

		
			10.06    ERISA.  (a) Any ERISA Plan shall fail to satisfy the minimum funding standard required for any plan year or part thereof under Section 412 of the Code or Section 302 of ERISA or a waiver of such standard or extension of any amortization period is sought or granted under Section 412 of the Code or Section 303 or 304 of ERISA, a Reportable Event shall have occurred, a contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of an ERISA Plan subject to Title IV of ERISA shall be subject to the advance reporting requirement of PBGC Regulation Section 4043.61 (without regard to subparagraph (b)(1) thereof) and an event described in subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 shall be reasonably expected to occur with respect to such ERISA Plan within the following 30 days, any ERISA Plan which is subject to Title IV of ERISA shall have had or is likely to have a trustee appointed to administer such ERISA Plan, any ERISA Plan which is subject to Title IV of ERISA is, shall have been or is likely to be terminated or to be the subject of termination proceedings under ERISA, any ERISA Plan shall have an Unfunded Current Liability, a contribution required to be made with respect to an ERISA Plan or a Foreign Pension Plan has not been timely made, Magellan or any of its Subsidiaries or any ERISA Affiliate has incurred or is likely to incur any liability to or on account of an ERISA Plan under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 436(f), 4971 or 4975 of the Code or on account of a group health plan (as defined in Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of the Code, or Magellan or any of its Subsidiaries has incurred or is likely to incur liabilities pursuant to one or more employee welfare benefit plans (as defined in Section 3(1) of ERISA) that provide benefits to retired employees or other former employees (other than as required by Section 601 of ERISA) or ERISA Plans or Foreign Pension Plans, a “default” within the meaning of Section 4219(c)(5) of ERISA shall occur with respect to any ERISA Plan, any Change in Law, or, as a result of a Change in Law, an event occurs following a Change in Law, with respect to or otherwise affecting any ERISA Plan; (b) there shall result from any such event or events the imposition of a lien, the granting of a security interest, or a liability or a material risk of incurring a liability; and (c) such lien, security interest or liability, either individually and/or in the aggregate, has had, or could reasonably be expected to have, in the opinion of the Required Lenders, a Material Adverse Effect; or 
		

		
			10.07    [Reserved].
		

		
			10.08    Guaranty.  The Guaranty or any provision thereof shall cease to be in full force or effect as to any Guarantor (other than any Subsidiary Guarantor that shall have been released from its obligations pursuant to Section 17 of the Guaranty), or any Guarantor or any Person acting for or on behalf of such Guarantor shall deny or disaffirm such Guarantor’s obligations under the Guaranty or any Guarantor shall default in the due performance or observance of any term, covenant or agreement on its part to be performed or observed pursuant to the Guaranty; or 
		

		
			10.09    Judgments.  One or more judgments or decrees shall be entered against Magellan or any of its Subsidiaries involving in the aggregate for Magellan and its Subsidiaries a liability (not paid or fully covered by a reputable and solvent insurance company) and such judgments and decrees either shall be final and non-appealable or shall not be vacated, discharged or stayed or bonded pending appeal for any period of 30 consecutive days, and the aggregate amount of all such judgments equals or exceeds $25,000,000; or 
		

		
			
		

		
			

		 

		

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			10.10    Change of Control.  A Change of Control shall occur;  then, and in any such event, and at any time thereafter, if any Event of Default shall then be continuing, the Administrative Agent, upon the written request of the Required Lenders, shall by written notice to the Borrower, take any or all of the following actions, without prejudice to the rights of the Administrative Agent, any Lender or the holder of any Note to enforce its claims against any Credit Party (provided, that, if an Event of Default specified in Section  10.05 shall occur with respect to the Borrower, the result which would occur upon the giving of written notice by the Administrative Agent as specified in clauses  (i) and  (ii) below shall occur automatically without the giving of any such notice):  (i) declare the Commitments terminated, whereupon the Commitment of each Lender shall forthwith terminate immediately and (ii) declare the principal of and any accrued interest in respect of all Loans and the Notes and all other Obligations owing hereunder and thereunder to be, whereupon the same shall become, forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Credit Party. 
		

		
			Section 11.      Defined Terms.  As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 
		

		
			“2014 Credit Agreement” shall mean the Credit Agreement, dated as of July 23, 2014 (as amended by Consent and Amendment No. 1 to Credit Agreement, dated as of December 2, 2015, and as otherwise amended, restated, amended and restated, supplemented or modified from time to time), among the Borrower, Magellan, the Lenders (as defined therein) party thereto from time to time and Citibank, N.A., as Administrative Agent (as defined therein).  
		

		
			“2016 Credit Agreement” shall mean the Credit Agreement, dated as of June 27, 2016 (as amended, restated, amended and restated, supplemented or modified from time to time), among the Borrower, Magellan, the Lenders (as defined therein) party thereto from time to time and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent (as defined therein). 
		

		
			“Acquired Entity or Business” shall mean either (x) the assets constituting a business, division or product line of any Person not already a Subsidiary of Magellan or (y) 100% of the capital stock of any such Person, which Person shall, as a result of such stock acquisition, become a WhollyOwned Subsidiary of Magellan (or shall be merged with and into Magellan or a Wholly-Owned Subsidiary of Magellan, with Magellan or such Wholly-Owned Subsidiary being the surviving Person). 
		

		
			“Administrative Agent” shall mean The Bank of Tokyo-Mitsubishi UFJ, Ltd., in its capacity as Administrative Agent for the Lenders hereunder, and shall include any successor to the Administrative Agent appointed pursuant to Section 12.09.  
		

		
			“Administrative Questionnaire” shall mean an administrative questionnaire in a form approved by the Administrative Agent. 
		

		
			“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling (including, but not limited to, all directors and officers of such Person), controlled by, or under direct or indirect common control with, such Person.  A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such other Person, whether through the ownership of voting securities, by contract or otherwise; provided,  however, that neither the Administrative Agent nor any Affiliate thereof shall be considered an Affiliate of Magellan or any Subsidiary thereof. 
		

		
			
		

		
			

		 

		

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			  “Agent” shall mean and include each of the Administrative Agent, the Co-Syndication Agents and their respective affiliates. 
		

		
			“Agreement” shall mean this Credit Agreement, as modified, supplemented, amended, restated (including any amendment and restatement hereof), extended or renewed from time to time. 
		

		
			“Anti-Corruption Laws” shall mean the United States Foreign Corrupt Practices Act of 1977 and the UK Bribery Act, in each case, as amended. 
		

		
			“Applicable Commitment Fee Percentage” and “Applicable Margin” shall mean, (i) until the delivery of financial statements and the related Compliance Certificate for the first full fiscal quarter ending after the Effective Date, the percentage set forth below for a Category B Period and (ii) thereafter, the percentage set forth below opposite the Applicable Period then in effect: 
		

			
					
						 

					
					
						 

					
					
						Applicable

					
					
						 

					
					
						Applicable Margin

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Commitment Fee

					
					
						 

					
					
						Eurodollar

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Applicable Period

					
					
						    

					
					
						Percentage

					
					
						    

					
					
						Loans

					
					
						    

					
					
						Base Rate Loans

					
					
						 

				
	
					
						Category A Period

					
					
						 

					
0.200 
					
					
						%  

					
1.50 
					
					
						%  

					
0.50 
					
					
						%

				
	
					
						Category B Period

					
					
						 

					
0.250 
					
					
						%  

					
1.625 
					
					
						%  

					
0.625 
					
					
						%

				
	
					
						Category C Period

					
					
						 

					
0.300 
					
					
						%  

					
1.75 
					
					
						%  

					
0.75 
					
					
						%

				
	
					
						Category D Period

					
					
						 

					
0.350 
					
					
						%  

					
2.00 
					
					
						%  

					
1.00 
					
					
						%

				

		
			 
		

		
			Any increase or decrease in the Applicable Commitment Fee Percentage or Applicable Margin pursuant to the preceding clause (ii) resulting from a change in the Total Leverage Ratio and an attendant change in the Applicable Period shall become effective as of the first Business Day immediately following the date on which the applicable Compliance Certificate is delivered pursuant to Section 8.01(e).  
		

		
			“Applicable Period” shall mean, on any day, the period set forth below then in effect on such day: 
		

			
					
						Applicable Period

					
					
						    

					
					
						Criteria

				
	
					
						Category A Period 

					
					
						 

					
					
						The Total Leverage Ratio is less than 1.00:1.00.

				
	
					
						Category B Period 

					
					
						 

					
					
						The Total Leverage Ratio is greater than or equal to 1.00:1.00 but less than 1.50:1.00.

				
	
					
						Category C Period 

					
					
						 

					
					
						The Total Leverage Ratio is greater than or equal to 1.50:1.00 but less than 2.00:1.00.

				
	
					
						Category D Period 

					
					
						 

					
					
						The Total Leverage Ratio is greater than or equal to 2.00:1.00.

				

		
			 
		

		
			Notwithstanding anything to the contrary set forth above, (x) in the event that there is an Event of Default that is continuing, the Applicable Period shall be a Category D Period and (y) at the option of the Required Lenders, the Applicable Period shall be a Category D Period as of the first
		

		
			
		

		
			

		 

		

			39

		

 

		

		
			Business Day after the date on which a Compliance Certificate was required to have been delivered but was not delivered, and shall continue to so apply to and including the date on which such Compliance Certificate is so delivered (and thereafter the pricing level otherwise determined in accordance with the definition of “Applicable Commitment Fee Percentage” and “Applicable Margin” shall apply). 
		

		
			“Asset Sale” shall mean any sale, transfer or other disposition by Magellan or any of its Subsidiaries to any Person (including by way of redemption by such Person) other than to Magellan or a Wholly-Owned Subsidiary of Magellan of any asset (including, without limitation, any capital stock or other securities of, or equity interests in, another Person) other than sales of assets pursuant to Sections 9.02(ii),   (iv),   (vii) and  (viii).  
		

		
			“Assignment and Assumption Agreement” shall mean an Assignment and Assumption Agreement substantially in the form of Exhibit L (appropriately completed). 
		

		
			“Attributable Debt” shall mean, as of any date of determination thereof, without duplication, (i) in connection with a Sale and Leaseback Transaction, the net present value (discounted according to generally accepted accounting principles at the cost of debt implied in the lease) of the obligations of the lessee for rental payments during the then remaining term of any applicable lease, and (ii) the principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing (including an off-balance sheet receivables financing) product to which such Person is a party. 
		

		
			“Authorized Officer” shall mean, with respect to (i) delivering Notices of Borrowing, Notices of Conversion/Continuation and similar notices, any person or persons that has or have been authorized by the board of directors of the Borrower to deliver such notices pursuant to this Agreement and that has or have appropriate signature cards or incumbency certificates on file with the Administrative Agent, (ii) delivering financial information and officer’s certificates pursuant to this Agreement, the chief financial officer, the treasurer or the principal accounting officer of Magellan or the Borrower, as applicable, and (iii) any other matter in connection with this Agreement or any other Credit Document, any officer (or a person or persons so designated by any two officers) of Magellan or the Borrower, as applicable. 
		

		
			“Availability Period” shall mean the period commencing on the Effective Date and ending on the Availability Period End Date. 
		

		
			“Availability Period End Date” shall mean July 3, 2017. 
		

		
			“Bail-In Action” shall mean the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution. 
		

		
			“Bail-In Legislation” shall mean, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.  
		

		
			“Bankruptcy Code” shall have the meaning provided in Section 10.05.  
		

		
			“Base Rate” shall mean, for any day, a rate per annum equal to the highest of (i) the Prime Lending Rate in effect on such day, (ii) 1/2 of 1% in excess of the overnight Federal Funds Rate in effect on such day and (iii) the Eurodollar Rate for an Interest Period of one month commencing on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%.
		

		
			
		

		
			

		 

		

			40

		

 

		

		
			“Base Rate Loan” shall mean each Loan designated or deemed designated as such by the Borrower at the time of the incurrence thereof or conversion thereto. 
		

		
			“Board of Directors” shall mean, as to any Person, the board of directors or other governing body of such Person, or if such person is owned or managed by a single entity, the board of directors or other governing body of such entity. 
		

		
			“Borrower” shall have the meaning provided in the first paragraph of this Agreement.
		

		
			“Borrowing” shall mean a borrowing consisting of simultaneous Loans of the same Type made by all the Lenders on the same Funding Date (or resulting from a conversion or conversions on a given date) having in the case of Eurodollar Loans the same Interest Period; provided, that Base Rate Loans incurred pursuant to Section 1.10(b) shall be considered part of the related Borrowing of Eurodollar Loan. 
		

		
			“Business Day” shall mean (i) for all purposes other than as covered by clause (ii) below, any day except Saturday, Sunday and any day which shall be in New York, New York, a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close and (ii) with respect to all notices and determinations in connection with, and payments of principal and interest on, Eurodollar Loans, any day which is a Business Day described in clause (i) above and which is also a day for trading by and between banks in U.S. dollar deposits in the interbank Eurodollar market. 
		

		
			“Calculation Period” shall mean, in the case of any Permitted Acquisition or any other event expressly required to be calculated on a Pro Forma Basis pursuant to the terms of this Agreement, the Test Period most recently ended prior to the date of any such Permitted Acquisition or other event for which financial statements have been delivered to the Lenders pursuant to this Agreement. 
		

		
			“Capital Expenditures” shall mean, with respect to any Person, all expenditures by such Person which should be capitalized in accordance with generally accepted accounting principles and, without duplication, the amount of Capitalized Lease Obligations incurred by such Person. 
		

		
			“Capitalized Lease Obligations” shall mean, with respect to any Person, all rental obligations of such Person which, under generally accepted accounting principles, are or will be required to be capitalized on the books of such Person, in each case taken at the amount thereof accounted for as indebtedness in accordance with such principles. 
		

		
			“Cash Equivalents” shall mean, as to any Person, (i) securities issued or directly and fully guaranteed or insured by the United States or any agency, instrumentality or sponsored corporation thereof and backed by the full faith and credit of the United States, and in each case having maturities of not more than two years from the date of acquisition, (ii) Dollar denominated time deposits, certificates of deposit, overnight bank deposits and bankers’ acceptances with any Lender or any commercial bank of recognized standing, having capital and surplus in excess of $250,000,000 and the commercial paper of the holding company of which, at the time of acquisition thereof, is rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency), or, if no such commercial paper rating is available, a long-term debt rating, at the time of acquisition thereof, of at least A or the equivalent thereof by S&P or at least A-2 or the equivalent thereof by Moody’s (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency), (iii) repurchase obligations with a term of not more than 92 days for underlying securities of the types described in clause (i) above and entered into with any commercial bank meeting the qualifications specified in clause (ii) above, (iv) other investment instruments offered or sponsored by financial
		

		
			
		

		
			

		 

		

			41

		

 

		

		
			institutions having capital and surplus in excess of $250,000,000 and the commercial paper of the holding company of which, at the time of acquisition thereof, is rated at least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by Moody’s (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency), or, if no such commercial paper rating is available, a long-term debt rating, at the time of acquisition thereof, of at least A+ or the equivalent thereof by S&P or at least A-1 or the equivalent thereof by Moody’s (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency), (v) readily marketable direct obligations issued by any state of the United States or any political subdivision thereof having, at the time of acquisition thereof, one of the two highest rating categories obtainable from either Moody’s or S&P (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency), (vi) commercial paper or corporate bonds rated, at the time of acquisition thereof, at least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by Moody’s (or if at such time neither is issuing ratings, then a comparable rating of another nationally recognized rating agency), in each case maturing within two years after the date of acquisition, (vii) investments in money market funds which invest substantially all their assets in securities of the types described in clauses (i) through (vi) above, and (viii) in the case of any Foreign Subsidiary of the Borrower, (x) certificates of deposit (or comparable instruments) of any bank with which such Foreign Subsidiary regularly transacts business and with maturities of not more than six months from the date of acquisition by such Foreign Subsidiary, (y) overnight deposits and demand deposit accounts maintained with any bank that such Foreign Subsidiary regularly transacts business and (z) securities of the type and maturity described in clause (i) above but issued by the principal governmental authority in which such Foreign Subsidiary is organized so long as such security has the highest rating available from either S&P or Moody’s. 
		

		
			“CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as the same has been amended and may hereafter be amended from time to time, 42 U.S.C. § 9601 et seq. 
		

		
			“Change of Control” shall mean (i) any “Person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act as in effect on the Effective Date), (A) is or shall become the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act as in effect on the Effective Date), directly or indirectly, of 35% or more of the outstanding total Voting Power of Magellan’s capital stock (determined on a fully diluted basis) or (B) shall have obtained the power (whether or not exercised) to elect a majority of Magellan’s directors, (ii) at any time the Board of Directors of Magellan shall cease to consist of a majority of Continuing Directors, (iii) a “change of control” (or similar event) shall occur as provided any Permitted Subordinated Debt Document or (iv) Magellan shall at any time fail to directly own, beneficially and of record, 100% of the Borrower’s capital stock. 
		

		
			“Change in Law” shall mean the occurrence of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (iii) the making or issuance of any request, rules, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; provided however, that notwithstanding anything herein to the contrary, (a) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof, and (b) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law” after the Effective Date regardless of the date enacted, adopted, issued or implemented. 
		

		
			
		

		
			

		 

		

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			“Co-Syndication Agents” shall mean Citibank, N.A., Compass Bank (d/b/a BBVA Compass), JPMorgan Chase Bank, N.A., SunTrust Bank and Wells Fargo Securities, LLC, in their respective capacities as co-syndication agents for the credit facilities provided for under this Agreement. 
		

		
			“Code” shall mean the U.S. Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder.  Section references to the Code are to the Code as in effect at the date of this Agreement and any subsequent provisions of the Code amendatory thereof, supplemental thereto or substituted therefor. 
		

		
			“Commitment” shall mean, for any Lender at any time, the amount set forth opposite 
		

		
			such Lender’s name in Schedule I directly below the column entitled “Commitment,” as the same may be (x) reduced from time to time or terminated pursuant to Sections 3.02, 3.03 and/or  10, as applicable, or (y) adjusted from time to time as a result of assignments to or from such Lender pursuant to Section  1.13 or  13.04(b). 
		

		
			“Commitment Commission” has the meaning provided in Section 3.01(a). 
		

		
			“Communications” shall have the meaning provided in Section 13.03(b).  
		

		
			“Compliance Certificate” shall have the meaning provided in Section 8.01(e).  
		

		
			“Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period adjusted by (x) adding thereto, without duplication and to the extent deducted in arriving at Consolidated Net Income for such period:  (a) Consolidated Interest Expense; (b) provision for taxes based on income; (c) the amount of all amortization of intangibles and depreciation; (d) non-cash charges for the impairment of goodwill or other intangibles or the write-off of goodwill, intangibles or other assets; (e) the amortization or write-off of deferred financing, legal and accounting costs with respect to the Transaction or any Permitted Acquisition; and (f) the amount of all other non-cash charges or noncash losses, and (y) deducting therefrom, the amount of all cash payments during such period that are associated with any non-cash charges or non-cash losses that were added back to Consolidated Net Income in a previous period pursuant to preceding clause (x)(f); and, in each case, without giving effect to (i) any extraordinary gains, (ii) any gains or losses from sales of assets other than from sales of inventory in the ordinary course of business and (iii) any non-cash income; it being understood that in determining the Total Leverage Ratio, Consolidated EBITDA for any period shall be calculated on a Pro Forma Basis to give effect to any Acquired Entity or Business acquired during such period pursuant to a Permitted Acquisition and not subsequently sold or otherwise disposed of by Magellan or any of its Subsidiaries during such period. 
		

		
			  “Consolidated Indebtedness” shall mean, at any time, the remainder of (A) the sum of, without duplication, (i) the aggregate principal amount of all Indebtedness (or, if greater, the aggregate face amount of any Indebtedness issued at a discount) of Magellan and its Subsidiaries at such time (including, without limitation, all Loans, letters of credit (including Letters of Credit), Capitalized Lease Obligations and guaranties of other Indebtedness) and (ii) the aggregate outstanding amount of all Attributable Debt of Magellan and its Subsidiaries at such time; provided, that for purposes of this definition, the amount of Indebtedness in respect of Interest Rate Protection Agreements and Other Hedging Agreements shall be at any time the unrealized net loss position, if any, of Magellan and/or its Subsidiaries thereunder on a marked-to-market basis determined no more than one month prior to such time, minus (B) the aggregate amount of all Unrestricted cash and Cash Equivalents of Magellan and its Subsidiaries at such time in excess of $50,000,000. 
		

		
			
		

		
			

		 

		

			43

		

 

		

		
			“Consolidated Interest Coverage Ratio” shall mean, for any period, the ratio of Consolidated EBITDA to Consolidated Interest Expense for such period. 
		

		
			“Consolidated Interest Expense” shall mean, for any period, the sum of the total consolidated interest expense of Magellan and its Subsidiaries for such period (calculated without regard to any limitations on the payment thereof) plus, without duplication, (i) that portion of Capitalized Lease Obligations of Magellan and its Subsidiaries representing the interest factor for such period, (ii) all fees accrued during such period pursuant to Sections 3.01(a),  (b) and (c) of the 2014 Credit Agreement, (iii) all interest expense during such period as set forth in Section 2.05(a) of the 2014 Credit Agreement and (iv) the interest component (or imputed interest) of any lease payment or other off balance sheet financing under Attributable Debt transactions paid by Magellan and its Subsidiaries for such period; provided, that the amortization or write-off of deferred financing, legal and accounting costs with respect to the Transaction or any Permitted Acquisition in each case shall be excluded from Consolidated Interest Expense to the extent same would otherwise have been included therein. 
		

		
			“Consolidated Net Income” shall mean, for any period, the net income (or loss) of Magellan and its Subsidiaries for such period, determined on a consolidated basis (after any deduction for minority interests); provided, that (i) in determining Consolidated Net Income, the net income of any other Person which is not a Subsidiary of Magellan or is accounted for by Magellan by the equity method of accounting shall be included only to the extent of the payment of cash dividends or cash distributions by such other Person to Magellan or a Subsidiary thereof during such period, (ii) the net income of any Subsidiary of Magellan shall be excluded to the extent that the declaration or payment of cash dividends or similar cash distributions by that Subsidiary of that net income is not at the date of determination permitted by operation of its charter or any agreement, instrument or law applicable to such Subsidiary, and (iii) except for determinations expressly required to be made on a Pro Forma Basis, the net income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of Magellan or all or substantially all of the property or assets of such Person are acquired by Magellan or a Subsidiary of Magellan shall be excluded. 
		

		
			“Consolidated Total Assets” shall mean, as of any date, the total assets of Magellan and its Subsidiaries on a consolidated basis, as set forth on most recent balance sheet of Magellan included in the financial statements delivered pursuant to Section 8.01(a) or 8.01(b), or, for any date prior to the date on which the first such financial statements are required to be delivered, as set forth on the balance sheet of Magellan included in Magellan’s consolidated financial statements as of and for the period ending March 31, 2014 filed with the Securities and Exchange Commission on Form 10-Q. 
		

		
			“Contingent Obligation” shall mean, as to any Person, any obligation of such Person as a result of such Person being a general partner of any other Person, unless the underlying obligation is expressly made non-recourse as to such general partner, and any obligation of such Person guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (x) for the purchase or payment of any such primary obligation or (y) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided,  however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business.  The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of
		

		
			
		

		
			

		 

		

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			the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. 
		

		
			“Continuing Directors” shall mean the directors of Magellan on the Effective Date and each other director, if such director’s nomination for election to the Board of Directors of Magellan is recommended by a majority of then Continuing Directors. 
		

		
			“Credit Documents” shall mean this Agreement, each Note and the Guaranty. 
		

		
			“Credit Party” shall mean the Borrower and each Guarantor. 
		

		
			“Default” shall mean any event, act or condition which with notice or lapse of time, or both, would constitute an Event of Default. 
		

		
			“Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in effect. 
		

		
			“Disinterested Director” shall mean, with respect to any Person and transaction, a member of the Board of Directors of such Person who does not have any material direct or indirect financial interest in or with respect to such transaction.  
		

		
			“Disqualified Stock” shall mean any capital stock that, by its terms (or by the terms of any security or other capital stock into which it is convertible or for which it is exchangeable) or upon the happening of any event or condition, (a) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise, other than solely as a result of a change of control, asset sale or similar event so long as any rights of the holders thereof upon the occurrence of a change of control, asset sale or similar event shall be subject to the prior repayment in full of the Loans and all other Obligations and the termination of the Commitments, (b) is redeemable or exchangeable at the option of the holder thereof, other than as a result of a change of control, asset sale or similar event so long as any rights of the holders thereof upon the occurrence of a change of control, asset sale or similar event shall be subject to the prior repayment in full of the Loans and all other Obligations and the termination of the Commitments or (c) provides for the scheduled payment of dividends in cash, in each case prior to the date that is ninety-one (91) days after the Maturity Date. 
		

		
			“Dividend” shall mean, with respect to any Person, that such Person has declared or paid a dividend, distribution or returned any equity capital to its stockholders, partners or members or authorized or made any other distribution, payment or delivery of property (other than common equity of such Person) or cash to its stockholders, partners or members as such, or redeemed, retired, purchased or otherwise acquired, directly or indirectly, for a consideration any shares of any class of its capital stock or any partnership or membership interests outstanding on or after the Effective Date (or any options or warrants issued by such Person with respect to its capital stock or other equity interests), or set aside any funds for any of the foregoing purposes, or shall have permitted any of its Subsidiaries to purchase or otherwise acquire for a consideration any shares of any class of the capital stock or any partnership or membership interests of such Person outstanding on or after the Effective Date (or any options or warrants issued by such Person with respect to its capital stock or other equity interests).  Without limiting the foregoing, “Dividends” with respect to any Person shall also include all payments made or required to be made by such Person with respect to any stock appreciation rights, plans, equity incentive or achievement plans or any similar plans or setting aside of any funds for the foregoing purposes.
		

		
			
		

		
			

		 

		

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			“Dollars” and the sign “$” shall each mean freely transferable lawful money of the United States. 
		

		
			“Domestic Subsidiary” shall mean each Subsidiary of Magellan incorporated or organized in the United States, any State thereof or the District of Columbia other than one substantially all of whose assets are controlled foreign subsidiaries within the meaning of Section 956 of the Code. 
		

		
			“Duration Fee” shall have the meaning provided in Section 3.01(b).  
		

		
			“Duration Fee Date” shall mean October 2, 2017. 
		

		
			“EEA Financial Institution” shall mean (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. 
		

		
			“EEA Member Country” shall mean any of the member states of the European Union, Iceland, Liechtenstein, and Norway. 
		

		
			“EEA Resolution Authority” shall mean any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.  
		

		
			“Effective Date” shall have the meaning provided in Section 13.10.  
		

		
			“Eligible Transferee” shall mean and include a commercial bank, an insurance company, a finance company, a financial institution, any fund that invests in loans or any other “accredited investor” (as defined in Regulation D of the Securities Act), but in any event excluding (x) Magellan and its Subsidiaries and Affiliates, (y) natural persons and (z) any Defaulting Lender. 
		

		
			“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.  Section references to ERISA are to ERISA, as in effect at the date of this Agreement and any subsequent provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor. 
		

		
			“ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) which together with Magellan or a Subsidiary of Magellan would be deemed to be a “single employer” (i) within the meaning of Section 414(b), (c), (m) or (o) of the Code or (ii) as a result of Magellan or a Subsidiary of Magellan being or having been a general partner of such person.  
		

		
			“ERISA Plan” shall mean any pension plan as defined in Section 3(2) of ERISA, which is maintained or contributed to by (or to which there is an obligation to contribute of) Magellan or a Subsidiary of Magellan or an ERISA Affiliate on or after the Effective Date, and each such plan for the five year period immediately following the latest date (whether before or after the Effective Date) on which Magellan, a Subsidiary of Magellan or an ERISA Affiliate maintained, contributed to or had an obligation to contribute to such plan. 
		

		
			“EU Bail-In Legislation Schedule” shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.
		

		
			
		

		
			

		 

		

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			“Eurodollar Loan” shall mean each Loan designated as such by the Borrower at the time of the incurrence thereof or conversion thereto. 
		

		
			“Eurodollar Rate” shall mean, with respect to any Eurodollar Loan for any Interest Period, the rate appearing on the LIBOR01 page of the Intercontinental Exchange Benchmark Administrative Ltd (ICE) (or on any successor or substitute page of such service) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for deposits in Dollars with a maturity comparable to such Interest Period.  In the event that such rate is not available at such time for any reason, then the “Eurodollar Rate” with respect to such Borrowing of Eurodollar Loans for such Interest Period shall be the rate at which dollar deposits of $10,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent to prime banks in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. Notwithstanding for foregoing, if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
		

		
			“Event of Default” shall have the meaning provided in Section 10.  
		

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

		
			“Existing Revolving Credit Facility” shall mean the revolving credit facility made available to the Borrower under the 2014 Credit Agreement. 
		

		
			“FATCA” shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable) and any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471. 
		

		
			“Federal Funds Rate” shall mean, for any period, a fluctuating interest rate equal for each day during such period to the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent; provided, that, if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
		

		
			“Fees” shall mean all amounts payable pursuant to or referred to in Section 3.01.
		

		
			“Foreign Pension Plan” shall mean each employee benefit plan, employment, bonus, incentive, stock purchase and stock option plan, program, agreement or arrangement; and each severance, termination pay, salary continuation, retention, accrued leave, vacation, sick pay, sick leave, medical, life insurance, disability, accident, profit-sharing, fringe benefit, pension, deferred compensation or other retirement or superannuation plan, fund, program, agreement, commitment or arrangement sponsored, established, maintained or contributed to, or required to be contributed to, or with respect to which any liability is borne, outside the fifty states of the United States of America, by Magellan or any of its Subsidiaries, including, without limitation, any such plan, fund, program, agreement or arrangement sponsored by a government or governmental entity. 
		

		
			
		

		
			

		 

		

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			“Foreign Subsidiary” shall mean each Subsidiary of Magellan that is not a Domestic Subsidiary. 
		

		
			“Funding Date” shall mean any date during the Availability Period on which the Loans are made by the Lenders. 
		

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

		
			“Guarantors” shall mean Magellan and the Subsidiary Guarantors. 
		

		
			“Guaranty” shall have the meaning provided in Section 5.09.  
		

		
			“Health Care Laws” shall mean any and all applicable current and future laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions or binding agreements issued, promulgated or entered into by the Food and Drug Administration, the Health Care Financing Administration, the Department of Health and Human Services (“HHS”), the Office of Inspector General of HHS, the Drug Enforcement Administration or any other governmental authority, including any state and/or local professional licensing laws, certificate of need laws and state reimbursement laws, relating in any way to the conduct of the business of Magellan or any Subsidiary thereof and the provision of health care services generally. 
		

		
			“Indebtedness” shall mean, as to any Person, without duplication, (i) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services, (ii) the maximum amount available to be drawn or paid under all letters of credit, bankers’ acceptances, bank guaranties and similar obligations issued for the account of such Person and all unpaid drawings in respect of such letters of credit, bankers’ acceptances and similar obligations, (iii) all Indebtedness of the types described in clause (i), (ii), (iv), (v), (vi), (vii) or (viii) of this definition secured by any Lien on any property owned by such Person, whether or not such Indebtedness has been assumed by such Person (provided, that, if the Person has not assumed or otherwise become liable in respect of such Indebtedness, such Indebtedness shall be deemed to be in an amount equal to the fair market value of the property to which such Lien relates as determined in good faith by such Person), (iv) the aggregate amount of all Capitalized Lease Obligations of such Person, (v) all obligations of such Person to pay a specified purchase price for goods or services, whether or not delivered or accepted, i.e., take-or-pay and similar obligations, (vi) all Contingent Obligations of such Person, (vii) all obligations under any Interest Rate Protection Agreement, any Other Hedging Agreement or under any similar type of agreement, and (viii) all Attributable Debt of such Person.  Notwithstanding the foregoing, Indebtedness shall not include trade payables and accrued expenses incurred by any Person in accordance with customary practices and in the ordinary course of business of such Person (including pursuant to customer service contracts). 
		

		
			“Interest Determination Date” shall mean, with respect to any Eurodollar Loan, the second Business Day prior to the commencement of any Interest Period relating to such Eurodollar Loan. 
		

		
			“Interest Period” shall mean, as to any Borrowing of Eurodollar Loans, the interest period applicable to such Borrowing of Eurodollar Loans selected pursuant to, and otherwise subject to the provisions of, Section 1.09.  
		

		
			
		

		
			

		 

		

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			“Interest Rate Protection Agreement” shall mean any interest rate swap agreement, interest rate cap agreement, interest collar agreement, interest rate hedging agreement or other similar agreement or arrangement. 
		

		
			“Investments” shall have the meaning provided in Section 9.05.
		

		
			“Joint Lead Arrangers” shall mean, collectively, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citigroup Global Markets Inc., Compass Bank (d/b/a BBVA Compass), JPMorgan Chase Bank, N.A., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC, in their respective capacities as joint lead arrangers for the credit facilities provided for under this Agreement. 
		

		
			“Latest Duration Fee Date” shall mean October 16, 2017. 
		

		
			“Leaseholds” of any Person shall mean all the right, title and interest of such Person as lessee or licensee in, to and under leases or licenses of land, improvements and/or fixtures. 
		

		
			“Lender” shall mean each financial institution listed on Schedule I, as well as any Person that becomes a “Lender” hereunder pursuant to Section 1.13, or 13.04(b).  
		

		
			“Lender Default” shall mean, as to any Lender, as reasonably determined by the Administrative Agent, that such Lender has (a) wrongfully refused (which has not been retracted) or failed to make available its portion of any Borrowing within two Business Days of the date such funding was required to be made, (b) been deemed (or whose parent company has been deemed) insolvent or become (or whose parent company has been become) the subject of a bankruptcy or insolvency proceeding, a Bail-in Action or a takeover by a regulatory authority, or (c) notified the Administrative Agent and/or any Credit Party (x) that it does not intend to comply with its obligations under Section 1.01(a) in circumstances where such non-compliance would constitute a breach of such Lender’s obligations under such Section or (y) of the events described in preceding clause (b); provided, that a Lender Default shall not have be deemed to have occurred solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Lender by a Governmental Authority or instrumentality thereof; provided,  further, that such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Lender. 
		

		
			“Lien” shall mean any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, priority or other security agreement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement, any financing or similar statement or notice filed under the UCC or any other similar recording or notice statute, and any lease having substantially the same effect as any of the foregoing). 
		

		
			“Loan” shall have the meaning provided in Section 1.01.  
		

		
			“Margin Stock” shall have the meaning provided in Regulation U. 
		

		
			“Material Adverse Effect” shall mean (i) a material adverse effect on the assets, business, operations, property or financial condition of Magellan and its Subsidiaries, taken as a whole (except as a result of any event or circumstance disclosed in any of Magellan’s public filings on Form 10-Q or 8-K (including, without limitation, the information disclosed with respect to the Purchase Agreement entered into with Veridicus Holdings, LLC on November 19, 2016) made on or following September 30, 2016
		

		
			
		

		
			

		 

		

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			and prior to the Effective Date), (ii) a material adverse effect on the ability of the Credit Parties, taken as a whole, to perform their obligations hereunder or under any other Credit Document or (iii) a material adverse effect on the rights and remedies of the Lenders hereunder or under any other Credit Document. 
		

		
			“Maturity Date” shall mean December 29, 2017 (subject to the last sentence of Section 4.03). 
		

		
			“Moody’s” shall mean Moody’s Investors Service, Inc., or any successor corporation thereto. 
		

		
			“Net Debt Proceeds” shall mean, with respect to any incurrence or issuance of Indebtedness for borrowed money, the cash proceeds (net of underwriting discounts and commissions and other reasonable fees, expenses and costs associated therewith including, without limitation, those of attorneys, accountants and other professionals) received by the respective Person from the respective incurrence of such Indebtedness for borrowed money. 
		

		
			“Non-Defaulting Lender” shall mean and include each Lender other than a Defaulting Lender. 
		

		
			“Non-U.S. Lender” shall mean each Lender or the Administrative Agent in each case to the extent that any such Person is not a “United States person” (as such term is defined in Section 7701(a)(30) of the Code) for U.S. Federal income tax purposes. 
		

		
			“Note” shall have the meaning provided in Section 1.05(a).  
		

		
			“Notice of Borrowing” shall have the meaning provided in Section 1.03(a).  
		

		
			“Notice of Conversion/Continuation” shall have the meaning provided in Section 1.06.  
		

		
			“Notice Office” shall mean the office of the Administrative Agent located at 1221 Avenue of the Americas, New York, NY 10020, Attention: Lawrence Blat with a copy to Nicholas Lukenovich and E-mail Address: Agencydesk@us.mufg.jp with a copy to Lblat@us.mufg.jp, Telephone numbers: 212-782-4310 and 212-782-6687 or such other office or person as the Administrative Agent may hereafter designate in writing as such to the other parties hereto. 
		

		
			“Obligations” shall mean all amounts owing to the Administrative Agent or any Lender pursuant to the terms of this Agreement or any other Credit Document, including, without limitation, all amounts in respect of any principal, interest (including any interest accruing subsequent to the filing of a petition in bankruptcy, reorganization or similar proceeding at the rate provided for in this Agreement, whether or not such interest is an allowed claim under any such proceeding or under applicable state, federal or foreign law), penalties, fees, expenses, indemnifications, reimbursements, damages and other liabilities, and guarantees of the foregoing amounts.  
		

		
			“Organizational Documents” shall have the meaning provided in Section 5.04.  
		

		
			“Other Hedging Agreements” shall mean any foreign exchange contracts, currency swap agreements, commodity agreements or other similar arrangements, or arrangements designed to protect against fluctuations in currency values or commodity prices. 
		

		
			“Other Taxes” shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar taxes that arise from any payment made under, from the execution, delivery,
		

		
			
		

		
			

		 

		

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			performance, enforcement or registration of, from the receipt perfection of a security interest under, or otherwise with respect to, any Credit Document. 
		

		
			“Participant Register” shall have the meaning provided in Section 13.04(c).  
		

		
			“Patriot Act” shall have the meaning provided in Section 13.18.  
		

		
			“Payment Office” shall mean the office of the Administrative Agent located at 1221 Avenue of the Americas, New York, NY 10020, Attention: Lawrence Blat with a copy to Nicholas Lukenovich and E-mail Address: Agencydesk@us.mufg.jp with a copy to Lblat@us.mufg.jp or such other office as the Administrative Agent may hereafter designate in writing as such to the other parties hereto. 
		

		
			“PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to Section 4002 of ERISA, or any successor thereto. 
		

		
			  “Permitted Acquisition” shall mean the acquisition by Magellan or a Wholly-Owned Subsidiary of Magellan of an Acquired Entity or Business (including by way of merger of such Acquired Entity or Business with and into Magellan (so long as Magellan is the surviving corporation) or a WhollyOwned Subsidiary of Magellan (so long as such Wholly-Owned Subsidiary is the surviving corporation)); provided, that (in each case) (A) in the case of the acquisition of 100% of the capital stock or other equity interests of any Person (including way of merger), such Person shall own no capital stock or other equity interests of any other Person (excluding de minimis amounts) unless either (x) such Person and/or its Wholly-Owned Subsidiaries own 100% of the capital stock or other equity interests of such other Person or (y) (1) such Person and/or its Wholly-Owned Subsidiaries own at least 90% of the consolidated assets of such Person and its Subsidiaries and (2) any non-Wholly-Owned Subsidiary of such Person was nonWholly Owned prior to the date of such Permitted Acquisition of such Person, (B) the Acquired Entity or Business acquired pursuant to the respective Permitted Acquisition is in a business permitted by Section  9.12 and (C) all applicable requirements of Sections  9.02 applicable to Permitted Acquisitions are satisfied.  Notwithstanding anything to the contrary contained in the immediately preceding sentence, an acquisition which does not otherwise meet the requirements set forth above in the definition of “Permitted Acquisition” shall constitute a Permitted Acquisition if, and to the extent, the Required Lenders agree in writing, prior to the consummation thereof, that such acquisition shall constitute a Permitted Acquisition for purposes of this Agreement. 
		

		
			“Permitted Liens” shall have the meaning provided in Section 9.01.  
		

		
			“Permitted Restructuring Effective Date” shall mean December 4, 2015. 
		

		
			“Permitted Subordinated Debt” shall mean any subordinated Indebtedness of Magellan incurred in connection with, and to finance, a Permitted Acquisition, which Indebtedness may be guaranteed on a subordinated basis by the Borrower and/or one or more Subsidiary Guarantors and all of the terms and conditions of which (including, without limitation, with respect to interest rate, amortization, redemption provisions, maturities, covenants, defaults, remedies, guaranties, standstill provisions, cash pay limitations and subordination provisions) and the documentation therefor are reasonably satisfactory to the Administrative Agent, as such Indebtedness may be amended, modified and/or supplemented from time to time in accordance with the terms hereof and thereof; provided, that in any event, unless the Required Lenders otherwise expressly consent in writing prior to the issuance thereof, (i) no such Indebtedness shall be secured by any asset of Magellan or any of its Subsidiaries, (ii) no such Indebtedness shall be guaranteed by any Person other than a Credit Party, (iii) no such Indebtedness shall be subject to scheduled amortization, redemption, sinking fund, mandatory
		

		
			
		

		
			

		 

		

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			prepayments (other than pursuant to a customary “change of control” provision that is subject to the prior repayment of the Obligations and termination of the Commitments) or similar payment or have a final maturity, in either case prior to the date occurring one year following the Maturity Date, (iv) the documentation governing such Indebtedness shall not include any financial maintenance covenants, and (v) the subordination provisions contained therein shall provide for a permanent block on payments with respect to such Indebtedness upon the occurrence and continuation of a payment default with respect to “senior debt” and cover all obligations under Interest Rate Protection Agreements and Other Hedging Agreements.  The incurrence of Permitted Subordinated Debt shall be deemed to be a representation and warranty by Magellan that all conditions thereto have been satisfied in all material respects and that the incurrence of such Permitted Subordinated Debt is permitted in accordance with the terms of this Agreement, which representation and warranty shall be deemed to be a representation and warranty for all purposes hereunder, including, without limitation, Sections 7 and 10.  
		

		
			“Permitted Subordinated Debt Documents” shall mean, on and after the execution and delivery thereof, each note, instrument, agreement, guaranty and other documents relating to each incurrence of Permitted Subordinated Debt, as the same may be amended, modified and/or supplemented from time to time in accordance with the terms hereof and thereof. 
		

		
			“Person” shall mean any individual, partnership, joint venture, firm, corporation, association, limited liability company, trust or other enterprise or any government or political subdivision or any agency, department or instrumentality thereof. 
		

		
			“Platform” shall have the meaning provided in Section 13.03(b).  
		

		
			“Prime Lending Rate” shall mean the rate of interest per annum which the Administrative Agent publicly announces from time to time as its base rate in effect at its principal office in New York City.  Any change in such rate shall take effect on the day specified in the public announcement of such change.  
		

		
			“Pro Forma Basis” shall mean, in connection with any calculation of compliance with any financial covenant or financial term, the calculation thereof after giving effect on a pro forma basis to (w) the incurrence of any Indebtedness (other than revolving Indebtedness, except to the extent same is incurred to refinance other outstanding Indebtedness or to finance a Permitted Acquisition, a Dividend pursuant to Section  9.03(iii), an Investment pursuant to Section  9.05(xiv) or a redemption or repurchase pursuant to Section  9.10(i)(B)) after the first day of the relevant Calculation Period as if such Indebtedness had been incurred (and the proceeds thereof applied) on the first day of the relevant Calculation Period, (x) the permanent repayment of any Indebtedness (other than revolving Indebtedness except to the extent accompanied by a corresponding permanent commitment reduction) after the first day of the relevant Calculation Period as if such Indebtedness had been retired or redeemed on the first day of the relevant Calculation Period, (y) any Asset Sale consummated after the first day of the relevant Calculation Period as if such Asset Sale (and the application of the proceeds therefrom) had occurred (and the proceeds therefrom had been applied) on the first day of the relevant Calculation Period, and/or (z) the Permitted Acquisition, if any, then being consummated as well as any other Permitted Acquisition consummated after the first day of the relevant Calculation Period and on or prior to the date of the respective Permitted Acquisition then being effected, as the case may be, with the following rules to apply in connection therewith: 
		

		
			(i)      all Indebtedness (x) (other than revolving Indebtedness, except to the extent same is incurred to refinance other outstanding Indebtedness or to finance a Permitted Acquisition, a Dividend pursuant to Section 9.03(iii), an Investment pursuant to Section 9.05(xiv) or a redemption or repurchase pursuant to Section 9.10(i)(B)) incurred or issued after the first day of
		

		
			
		

		
			

		 

		

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			the relevant Calculation Period (whether incurred to finance a Permitted Acquisition, to refinance Indebtedness or otherwise) shall be deemed to have been incurred or issued (and the proceeds thereof applied) on the first day of the respective Calculation Period and remain outstanding through the date of determination and (y) (other than revolving Indebtedness except to the extent accompanied by a corresponding permanent commitment reduction) permanently retired or redeemed after the first day of the relevant Calculation Period shall be deemed to have been retired or redeemed on the first day of the respective Calculation Period and remain retired through the date of determination; 
		

		
			(ii)      all Indebtedness assumed to be outstanding pursuant to preceding clause (i) shall be deemed to have borne interest at (x) the rate applicable thereto, in the case of fixed rate indebtedness, or (y) at the rate which would have been applicable thereto on the last day of the respective Calculation Period, in the case of floating rate Indebtedness (although interest expense with respect to any Indebtedness for periods while same was actually outstanding during the respective period shall be calculated using the actual rates applicable thereto while same was actually outstanding); and  
		

		
			(iii)    in making any determination of Consolidated EBITDA, pro forma effect shall be given to any Asset Sale or Permitted Acquisition consummated during the periods described above, with such Consolidated EBITDA to be determined as if such Asset Sale or Permitted Acquisition was consummated on the first day of the relevant Calculation Period, and, in the case of any Permitted Acquisition, taking into account factually supportable and identifiable cost savings and expenses directly attributable to any such Permitted Acquisition which would otherwise be accounted for as an adjustment pursuant to Article 11 of Regulation S-X under the Securities Act, as if such cost savings or expenses were realized on the first day of the respective period. 
		

		
			“Quarterly Payment Date” shall mean the last Business Day of each December, March, June and September occurring after the Effective Date, commencing on March 31, 2017. 
		

		
			“Real Property” of any Person shall mean all the right, title and interest of such Person in and to land, improvements and fixtures, including Leaseholds. 
		

		
			“Register” shall have the meaning provided in Section 13.15.  
		

		
			“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof establishing reserve requirements. 
		

		
			“Regulation T” shall mean Regulation T of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. 
		

		
			“Regulation U” shall mean Regulation U of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. 
		

		
			“Regulation X” shall mean Regulation X of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. 
		

		
			“Release” shall mean actively or passively disposing, discharging, injecting, spilling, pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring, seeping, migrating or the like, into or upon any land or water or air, or otherwise entering into the environment. 
		

		
			
		

		
			

		 

		

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			“Replaced Lender” shall have the meaning provided in Section 1.13.  
		

		
			“Replacement Lender” shall have the meaning provided in Section 1.13.  
		

		
			“Reportable Event” shall mean an event described in Section 4043(c) of ERISA with respect to an ERISA Plan that is subject to Title IV of ERISA other than those events as to which the 30day notice period is waived under subsection .22, .23, .25, .27 or .28 of PBGC Regulation Section 4043. 
		

		
			“Required Lenders” shall mean, at any time, Lenders holding more than 50% of the aggregate principal amount of all outstanding Commitments and Loans at such time; provided, that for purposes of the foregoing, the Commitments and Loans of Defaulting Lenders shall be disregarded. 
		

		
			“Restricted” shall mean, when referring to cash or Cash Equivalents of Magellan or any of its Subsidiaries, that such cash or Cash Equivalents (i) appears (or would be required to appear) as “restricted” on a consolidated balance sheet of the Borrower or of any such Subsidiary, (ii) are subject to any Lien in favor of any Person or (iii) are not otherwise generally available for use by Magellan or any of its Subsidiaries. 
		

		
			“Returns” shall have the meaning provided in Section 7.09.  
		

		
			“S&P” shall mean Standard & Poor’s Rating Services, a subsidiary of S&P Global Inc., or any successor thereto. 
		

		
			“Sale and Leaseback Transaction” shall mean any arrangement, directly or indirectly, whereby a seller or transferor shall sell or otherwise transfer any real or personal property and then or thereafter lease, or repurchase under an extended purchase contract, conditional sales or other title retention agreement, the same or similar property. 
		

		
			“Sanctioned Country” shall mean, at any time, a country or territory which is the subject or target of any comprehensive territorial Sanctions. 
		

		
			“Sanctioned Person” shall mean, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the European Union, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person or Persons. 
		

		
			“Sanctions” shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, (b) the European Union or (c) Her Majesty’s Treasury of the United Kingdom. 
		

		
			“SEC” shall have the meaning provided in Section 8.01(g).  
		

		
			“Section 4.04 Indemnitee” shall have the meaning provided in Section 4.04(a).  
		

		
			“Section 4.04(c)(ii) Certificate” shall have the meaning provided in Section 4.04(c)(ii).  
		

		
			“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
		

		
			“Specified Default” shall mean any Default under Section 10.01 or 10.05.  
		

		
			
		

		
			

		 

		

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			“Subsidiary” shall mean, as to any Person, (i) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person and/or one or more Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint venture or other entity in which such Person and/or one or more Subsidiaries of such Person has more than a 50% equity interest at the time. 
		

		
			“Subsidiary Guarantor” shall mean each Wholly-Owned Domestic Subsidiary of Magellan (other than the Borrower) other than, in each case, any such Wholly-Owned Subsidiary that is (but only for so long as it is) a Wholly-Owned Specified Subsidiary. 
		

		
			“Taxes” shall have the meaning provided in Section 4.04(a).  
		

		
			“Test Period” shall mean each period of four consecutive fiscal quarters of Magellan then last ended (in each case taken as one accounting period). 
		

		
			“Total Commitment” shall mean, at any time, the sum of the Commitments of each of the Lenders at such time. 
		

		
			“Total Leverage Ratio” shall mean, at any time, the ratio of Consolidated Indebtedness at such time to Consolidated EBITDA for the Test Period then most recently ended. 
		

		
			“Total Unutilized Revolving Loan Commitment” shall mean, at any time, the aggregate amount available to be drawn under the Existing Revolving Credit Facility at such time.  
		

		
			“Transaction” shall mean (i) the entering into of the Credit Documents and the incurrence of Loans (if any) on the Effective Date, and (ii) the payment of all fees and expenses in connection with the foregoing. 
		

		
			“Type” shall mean the type of Loan determined with regard to the interest option applicable thereto, i.e., whether a Base Rate Loan or a Eurodollar Loan. 
		

		
			“UCC” shall mean the Uniform Commercial Code as from time to time in effect in the relevant jurisdiction. 
		

		
			“Unfunded Current Liability” of any ERISA Plan shall mean the amount, if any, by which the value of the accumulated plan benefits under the ERISA Plan determined on a plan termination basis in accordance with actuarial assumptions at such time consistent with those prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds the fair market value of all plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contribution). 
		

		
			“United States” and “U.S.” shall each mean the United States of America. 
		

		
			“Unrestricted” shall mean, when referring to cash or Cash Equivalents of Magellan or 
		

		
			any of its Subsidiaries, that such cash or Cash Equivalents are not Restricted. 
		

		
			“U.S. Lender” shall mean each Lender or the Administrative Agent that is a “United States person” (as such term is defined in Section 7701(a)(30) of the Code) for U.S. Federal income tax purposes. 
		

		
			
		

		
			

		 

		

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			“Voting Power” shall mean, with respect to any class or classes of capital stock of Magellan (or any class or classes of capital stock then convertible into such capital stock at the option of the holders thereof), the voting power entitled to vote in the election of directors of Magellan. 
		

		
			“Wholly-Owned Domestic Subsidiary” shall mean, as to any Person, any Wholly Owned Subsidiary of such Person which is also a Domestic Subsidiary of such Person. 
		

		
			“Wholly-Owned Foreign Subsidiary” shall mean, as to any Person, any Wholly Owned Subsidiary of such Person which is also a Foreign Subsidiary of such Person. 
		

		
			“Wholly-Owned Specified Subsidiary” shall mean (A) Magellan Rx Management, Inc., (B) any Wholly-Owned Subsidiary of Magellan Rx Management, Inc. (other than any such Person that was a Subsidiary of Magellan Rx Management, Inc. on the Permitted Restructuring Effective Date) and (C) any Wholly-Owned Subsidiary of Magellan that is prohibited from entering into any Credit Document because to do so either (x) would violate a law, regulation, rule, order, approval, license or other restriction applicable to such Wholly-Owned Subsidiary due to the regulated nature of such WhollyOwned Subsidiary’s operations and issued or imposed by any governmental authority having jurisdiction over such Wholly-Owned Subsidiary or (y) would reasonably be expected to cause such Wholly-Owned Subsidiary to fail to satisfy a net worth, net equity or capital requirement or similar calculation or requirement imposed on such Wholly-Owned Subsidiary by any governmental authority having jurisdiction over such Wholly-Owned Subsidiary due to the regulated nature of such Wholly-Owned Subsidiary’s operations; provided, that in no event shall the Borrower be a Wholly-Owned Specified Subsidiary. 
		

		
			“Wholly-Owned Subsidiary” shall mean, as to any Person, (i) any corporation 100% of whose capital stock is at the time owned by such Person and/or one or more Wholly-Owned Subsidiaries of such Person and (ii) any partnership, association, joint venture or other entity in which such Person and/or one or more Wholly-Owned Subsidiaries of such Person has a 100% equity interest at such time.  
		

		
			“Write-Down and Conversion Powers” shall mean, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. 
		

		
			Section 12.      The Administrative Agent.
		

		
			12.01     Appointment.  The Lenders hereby irrevocably designate and appoint The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Administrative Agent to act as specified herein and in the other Credit Documents.  Each Lender hereby irrevocably authorizes, and each holder of any Note by the acceptance of such Note shall be deemed irrevocably to authorize, the Administrative Agent to take such action on its behalf under the provisions of this Agreement, the other Credit Documents and any other instruments and agreements referred to herein or therein and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the Administrative Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto.  The Administrative Agent may perform any of its respective duties hereunder by or through its officers, directors, agents, employees or affiliates. 
		

		
			12.02     Nature of Duties.  (a) The Administrative Agent shall not have any duties or responsibilities except those expressly set forth in this Agreement and in the other Credit Documents.  Neither the Administrative Agent nor any of its officers, directors, agents, employees or affiliates shall be liable for any action taken or omitted by it or them hereunder or under any other Credit Document or in
		

		
			
		

		
			

		 

		

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			connection herewith or therewith, unless caused by its or their gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).  The duties of the Administrative Agent shall be mechanical and administrative in nature; the Administrative Agent shall not have by reason of this Agreement or any other Credit Document a fiduciary relationship in respect of any Lender or the holder of any Note; and nothing in this Agreement or in any other Credit Document, expressed or implied, is intended to or shall be so construed as to impose upon the Administrative Agent any obligations in respect of this Agreement or any other Credit Document except as expressly set forth herein or therein. 
		

		
			(b)      Notwithstanding any other provision of this Agreement or any provision of any other Credit Document, (i) The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citigroup Global Markets Inc., Compass Bank (d/b/a BBVA Compass), JPMorgan Chase Bank, N.A., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC are named as Joint Lead Arrangers and Joint Bookrunners for recognition purposes only and (ii) Citibank, N.A., Compass Bank (d/b/a BBVA Compass), JPMorgan Chase Bank, N.A., SunTrust Bank and Wells Fargo Securities, LLC are named as Co-Syndication Agents for recognition purposes only, and in their respective capacities as such shall have no powers, duties, responsibilities or liabilities with respect to this Agreement or the other Credit Documents or the transactions contemplated hereby and thereby; it being understood and agreed that The Bank of TokyoMitsubishi UFJ, Ltd., Citigroup Global Markets Inc., Compass Bank (d/b/a BBVA Compass), JPMorgan Chase Bank, N.A., SunTrust Bank, SunTrust Robinson Humphrey, Inc., Wells Fargo Bank, National Association and Wells Fargo Securities, LLC in such capacities shall be entitled to all indemnification and reimbursement rights in favor of the Administrative Agent as, and to the extent, provided for under Sections  12.06 and  13.01.  Without limitation of the foregoing, none of The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citigroup Global Markets Inc., Compass Bank (d/b/a BBVA Compass), JPMorgan Chase Bank, N.A., SunTrust Bank, SunTrust Robinson Humphrey, Inc., Wells Fargo Bank, National Association and Wells Fargo Securities, LLC, in such respective capacities shall have, solely by reason of this Agreement or any other Credit Documents, any fiduciary relationship in respect of any Lender or any other Person. 
		

		
			12.03   Lack of Reliance on the Administrative Agent.  Independently and without reliance upon the Administrative Agent, each Lender and the holder of each Note, to the extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of Magellan and its Subsidiaries in connection with the making and the continuance of the Loans and Letters of Credit and the taking or not taking of any action in connection herewith and (ii) its own appraisal of the creditworthiness of Magellan and its Subsidiaries and, except as expressly provided in this Agreement, the Administrative Agent shall not have any duty or responsibility, either initially or on a continuing basis, to provide any Lender or the holder of any Note with any credit or other information with respect thereto, whether coming into its possession before the making of the Loans or at any time or times thereafter.  The Administrative Agent shall not be responsible to any Lender or the holder of any Note for any recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of this Agreement or any other Credit Document or the financial condition of Magellan or any of its Subsidiaries or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement or any other Credit Document, or the financial condition of Magellan or any of its Subsidiaries or the existence or possible existence of any Default or Event of Default. 
		

		
			12.04   Certain Rights of the Administrative Agent.  If the Administrative Agent requests instructions from the Required Lenders with respect to any act or action (including failure to act) in connection with this Agreement or any other Credit Document, the Administrative Agent shall be entitled
		

		
			
		

		
			

		 

		

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			to refrain from such act or taking such action unless and until the Administrative Agent shall have received instructions from the Required Lenders; and the Administrative Agent shall not incur liability to any Lender by reason of so refraining.  Without limiting the foregoing, neither any Lender nor the holder of any Note shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting hereunder or under any other Credit Document in accordance with the instructions of the Required Lenders. 
		

		
			12.05   Reliance.  The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate, telex, teletype or fax message, cablegram, radiogram, order or other document or telephone message signed, sent or made by any Person that the Administrative Agent believed to be the proper Person, and, with respect to all legal matters pertaining to this Agreement and any other Credit Document and its duties hereunder and thereunder, upon advice of counsel selected by the Administrative Agent. 
		

		
			12.06   Indemnification.  To the extent the Administrative Agent (or any affiliate thereof) is not reimbursed and indemnified by the Borrower, the Lenders severally will reimburse and indemnify the Administrative Agent (and any affiliate thereof) in proportion to their respective “percentage” as used in determining the Required Lenders (determined as if there were no Defaulting Lenders) for and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements of whatsoever kind or nature which may be imposed on, asserted against or incurred by the Administrative Agent (or any affiliate thereof) in performing its duties hereunder or under any other Credit Document or in any way relating to or arising out of this Agreement or any other Credit Document; provided, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, claims, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s (or such affiliate’s) gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision). 
		

		
			12.07   The Administrative Agent in its Individual Capacity.  With respect to its obligation to make Loans, under this Agreement, the Administrative Agent shall have the rights and powers specified herein for a “Lender” and may exercise the same rights and powers as though it were not performing the duties specified herein; and the term “Lender,”, “Required Lenders,” “holders of Notes” or any similar terms shall, unless the context clearly indicates otherwise, include the Administrative Agent in its respective individual capacities.  The Administrative Agent and its affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, investment banking, trust or other business with, or provide debt financing, equity capital or other services (including financial advisory services) to any Credit Party or any Affiliate of any Credit Party (or any Person engaged in a similar business with any Credit Party or any Affiliate thereof) as if they were not performing the duties specified herein, and may accept fees and other consideration from any Credit Party or any Affiliate of any Credit Party for services in connection with this Agreement and otherwise without having to account for the same to the Lenders. 
		

		
			12.08   Holders.  The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until a written notice of the assignment, transfer or endorsement thereof, as the case may be, shall have been filed with the Administrative Agent.  Any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is the holder of any Note shall be conclusive and binding on any subsequent holder, transferee, assignee or endorsee, as the case may be, of such Note or of any Note or Notes issued in exchange therefor. 
		

		
			12.09   Resignation by the Administrative Agent.  (a) The Administrative Agent may resign from the performance of all its respective functions and duties hereunder and/or under the other
		

		
			
		

		
			

		 

		

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			Credit Documents at any time by giving 15 Business Days’ prior written notice to the Lenders and, unless a Default or an Event of Default under Section 10.05 then exists, the Borrower.  Such resignation shall take effect upon the appointment of a successor Administrative Agent pursuant to clauses (b) and (c) below or as otherwise provided below. 
		

		
			(b)      Upon any such notice of resignation by the Administrative Agent, the Required Lenders shall appoint a successor Administrative Agent hereunder or thereunder who shall be a commercial bank or trust company reasonably acceptable to the Borrower, which acceptance shall not be unreasonably withheld or delayed (provided, that the Borrower’s approval shall not be required if an Event of Default then exists). 
		

		
			(c)      If a successor Administrative Agent shall not have been so appointed within such 15 Business Day period, the Administrative Agent, with the consent of the Borrower (which consent shall not be unreasonably withheld or delayed; provided, that the Borrower’s consent shall not be required if an Event of Default then exists), shall then appoint a successor Administrative Agent who shall serve as Administrative Agent hereunder or thereunder until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided above. 
		

		
			(d)      If no successor Administrative Agent has been appointed pursuant to clause  (b) or  (c) above by the 20th Business Day after the date such notice of resignation was given by the Administrative Agent, the Administrative Agent’s resignation shall become effective and the Required Lenders shall thereafter perform all the duties of the Administrative Agent hereunder and/or under any other Credit Document until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided above. 
		

		
			(e)      Upon a resignation of the Administrative Agent pursuant to this Section 12.09, the Administrative Agent shall remain indemnified to the extent provided in this Agreement and the other Credit Documents and the provisions of this Section 12 shall continue in effect for the benefit of the Administrative Agent for all of its actions and inactions while serving as the Administrative Agent. 
		

		
			Section 13.      Miscellaneous.
		

		
			13.01      Payment of Expenses, etc.  The Borrower hereby agrees to: (i) whether or not the transactions herein contemplated are consummated, pay all reasonable out-of-pocket costs and expenses of the Agents and their respective affiliates (including, without limitation, the reasonable fees and disbursements of Davis Polk & Wardwell LLP and the Agents’ other counsel and consultants) in connection with the preparation, execution, delivery and administration of this Agreement and the other Credit Documents and the documents and instruments referred to herein and therein and any amendment, waiver or consent relating hereto or thereto, of the Agents in connection with their syndication efforts with respect to this Agreement and of the Agents and, after the occurrence of an Event of Default, each of the Lenders in connection with the enforcement of this Agreement and the other Credit Documents and the documents and instruments referred to herein and therein or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings (including, in each case without limitation, the reasonable fees and disbursements of counsel and consultants for the Agents and, after the occurrence of an Event of Default, counsel for each of the Lenders); (ii) pay and hold the Administrative Agent and each of the Lenders harmless from and against any and all present and future stamp, excise and other similar documentary taxes with respect to the foregoing matters and save the Administrative Agent and each of the Lenders harmless from and against any and all liabilities with respect to or resulting from any delay or omission (other than to the extent attributable to the Administrative Agent or such Lender) to pay such taxes; and (iii) indemnify the Administrative Agent, each Lender, and each of their respective
		

		
			
		

		
			

		 

		

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			officers, directors, employees, representatives, agents, affiliates, trustees and investment advisors (each such Person, an “Indemnified Person”) from and hold each of them harmless against any and all liabilities, obligations (including removal or remedial actions), losses, damages, penalties, claims, actions, judgments, suits, costs, expenses and disbursements (including reasonable attorneys’ and consultants’ fees and disbursements) incurred by, imposed on or assessed against any of them as a result of, or arising out of, or in any way related to, or by reason of (a) any investigation, litigation or other proceeding (whether or not the Administrative Agent, or any Lender is a party thereto and whether or not such investigation, litigation or other proceeding is brought by or on behalf of any Credit Party) related to the entering into and/or performance of this Agreement or any other Credit Document or (b) the use of the proceeds of any Loans hereunder or the consummation of the Transaction or any other transactions contemplated herein or in any other Credit Document or the exercise of any of their rights or remedies provided herein or in the other Credit Documents.  To the extent that the undertaking to indemnify, pay or hold harmless any Indemnified Person set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, Magellan shall make the maximum contribution to the payment and satisfaction of each of the indemnified liabilities which is permissible under applicable law.  No Indemnified Person shall be liable for any damages arising from the use by others of any information or other materials obtained through the Platform or other similar information transmission systems in connection with this Agreement other than for direct or actual damages resulting from the gross negligence or willful misconduct on the part of such Indemnified Person (as determined by a court of competent jurisdiction in a final and non-appealable decision).  To the fullest extent permitted by applicable law, no Indemnified Person shall have any liability for any special, punitive, indirect or consequential damages relating to this Agreement or any other Credit Documents or arising out of its activities in connection herewith or therewith (whether before or after the Effective Date). 
		

		
			13.02      Right of Setoff.  In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent, and each Lender and each of their respective Affiliates, to the fullest extent permitted by applicable law, is hereby authorized at any time or from time to time, without presentment, demand, protest or other notice of any kind to any Credit Party or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general or special) and any other Indebtedness at any time held or owing by the Administrative Agent, or such Lender (including, without limitation, by branches and agencies of the Administrative Agent, or such Lender wherever located) to or for the credit or the account of Magellan or any of its Subsidiaries against and on account of the Obligations and liabilities of the Credit Parties to the Administrative Agent, or such Lender under this Agreement or under any of the other Credit Documents, including, without limitation, all interests in Obligations purchased by such Lender pursuant to Section  13.06(b), and all other claims of any nature or description arising out of or connected with this Agreement or any other Credit Document, irrespective of whether or not the Administrative Agent, or such Lender shall have made any demand hereunder and although said Obligations, liabilities or claims, or any of them, shall be contingent or unmatured. 
		

		
			13.03      Notices; Platform.  (a) Except as otherwise expressly provided herein (including in Section  13.03(c)), all notices and other communications provided for hereunder shall be in writing (including telegraphic, telex, fax or cable communication) and mailed, telegraphed, telexed, faxed, cabled or delivered:  if to any Credit Party, at the address specified opposite its signature below or in the other relevant Credit Documents; if to any Lender at its address specified in its Administrative Questionnaire; and if to the Administrative Agent, at the Notice Office; or, as to any Credit Party or the Administrative Agent, at such other address as shall be designated by such party in a written notice to the other parties hereto and, as to each Lender, at such other address as shall be designated by such Lender in a written notice to the Borrower and the Administrative Agent.  All such notices and communications shall, when mailed, telegraphed, telexed, faxed, or cabled or sent by overnight courier, be effective when deposited in
		

		
			
		

		
			

		 

		

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			the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or fax, except that notices and communications to the Administrative Agent, Magellan and the Borrower shall not be effective until received by the Administrative Agent, Magellan or the Borrower, as the case may be, during normal business hours. 
		

		
			(b)      Magellan and the Borrower agree that the Administrative Agent may, but shall not be obligated to, make any notices, written information, documents, instruments and other material relating to Magellan, the Borrower, any of their Subsidiaries or any other materials or matters relating to this Agreement, the Notes or any of the transactions contemplated hereby (collectively, the “Communications”) available to the Lenders by posting such notices on Intralinks, DebtDomain or a substantially similar electronic system (the “Platform”). Magellan and the Borrower acknowledge that (i) the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution, (ii) the Platform is provided “as is” and “as available” and (iii) neither the Administrative Agent nor any of its affiliates warrants the accuracy, adequacy or completeness of the Communications or the Platform and each expressly disclaims liability for errors or omissions in the Communications or the Platform. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by the Administrative Agent or any of its affiliates in connection with the Platform. 
		

		
			(c)      Each Lender agrees that notice to it (as provided in the next sentence) specifying that any Communications have been posted to the Platform shall constitute effective delivery of such information, documents or other materials to such Lender for purposes of this Agreement; provided, that if requested by any Lender, the Administrative Agent shall deliver a copy of the Communications to such Lender by email or fax. Each Lender agrees (i) to notify the Administrative Agent in writing of such Lender’s e-mail address to which a notice may be sent by electronic transmission (including by electronic communication) on or before the date such Lender becomes a party to this Agreement (and from time to time thereafter to ensure that the Administrative Agent has on record an effective e-mail address for such Lender) and (ii) that any notice may be sent to such e-mail address. 
		

		
			13.04   Benefit of Agreement; Assignments; Participations.  (a) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto; provided,  however, the Borrower may not assign or transfer any of its rights, obligations or interest hereunder without the prior written consent of the Lenders; provided, further, that, although any Lender may transfer, assign or grant participations in its rights hereunder without the need for notice to, or consent of, the Borrower or the Administrative Agent, such Lender shall remain a “Lender” for all purposes hereunder (and may not transfer or assign all or any portion of its Loans or Commitments hereunder except as provided in Sections  1.13, and  13.04(b)) and the participant shall not constitute a “Lender” hereunder; provided,  further, that no Lender shall transfer or grant any participation under which the participant shall have rights to approve any amendment to or waiver of this Agreement or any other Credit Document except to the extent such amendment or waiver would (i) extend the final scheduled maturity of any Loan or Note in which such participant is participating, or reduce the rate or extend the time of payment of interest thereon (except in connection with a waiver of applicability of any post-default increase in interest rates) or reduce or forgive the principal amount thereof or reduce or forgive any interest, fees or other amounts payable hereunder (it being understood that any amendment or modification to the financial definitions in this Agreement or to Section  13.07(a) or to the proviso following the table in the definition of “Applicable Margin” the effect of which would be to limit the applicability thereof, shall not constitute a reduction in the rate of interest payable hereunder), or increase the amount of the participant’s participation over the amount thereof then in effect (it being understood that a waiver of any Default or Event of Default shall not constitute a change in the terms of such participation, and that an increase in a Commitment (or the available portion thereof) or Loan shall be
		

		
			
		

		
			

		 

		

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			permitted without the consent of any participant if the participant’s participation is not increased as a result thereof) or (ii) consent to the assignment or transfer by the Borrower or Magellan of any of its rights and obligations under this Agreement. In the case of any such participation, the participant shall not have any rights under this Agreement or any of the other Credit Documents (the participant’s rights against such Lender in respect of such participation to be those set forth in the agreement executed by such Lender in favor of the participant relating thereto) and all amounts payable by the Borrower hereunder shall be determined as if such Lender had not sold such participation. 
		

		
			(b)      Notwithstanding the foregoing, any Lender (or any Lender together with one or more other Lenders) may (x) assign all or a portion of its Commitments or outstanding Loans hereunder to (i)(A) its parent company and/or any affiliate of such Lender which is at least 50% owned by such Lender or its parent company or (B) to one or more other Lenders or any affiliate of any such other Lender which is at least 50% owned by such other Lender or its parent company (provided, that any fund that invests in loans and is managed by the same investment advisor of another fund which is a Lender (or by an Affiliate of such investment advisor) shall be treated as an affiliate of such other Lender for the purposes of this sub-clause (x)(i)(B)), or (ii) in the case of any Lender that is a fund that invests in loans, any other fund that invests in loans and is managed by the same investment advisor of any Lender or by an Affiliate of such investment advisor or (y) assign all, or if less than all, a portion equal to at least $1,000,000 in the aggregate for the assigning Lender or assigning Lenders of such Commitments or outstanding Loans hereunder to one or more Eligible Transferees (treating any fund that invests in loans and any other fund that invests in loans and is managed or advised by the same investment advisor of such fund or by an Affiliate of such investment advisor as a single Eligible Transferee), each of which assignees shall become a party to this Agreement as a Lender by execution of an Assignment and Assumption Agreement; provided, that (i) at such time, Schedule I shall be deemed modified to reflect the Commitments and/or outstanding Loans, as the case may be, of such new Lender and of the existing Lenders, (ii) upon the surrender of the relevant Note by the assigning Lender (or, upon such assigning Lender’s indemnifying the Borrower for any lost Note pursuant to a customary indemnification agreement) new Notes will be issued, at the Borrower’s expense, to such new Lender and to the assigning Lender upon the request of such new Lender or assigning Lender, such new Notes to be in conformity with the requirements of Section  1.05 (with appropriate modifications) to the extent needed to reflect the revised Commitments and/or outstanding Loans, as the case may be, (iii) the consent of the Administrative Agent and, so long as no Specified Default then exists, the consent of the Borrower shall be required in connection with any such assignment pursuant to clause (y) above (each of which consents shall not be unreasonably withheld or delayed and in the case of the Borrower, consent shall be deemed to have been given if the Borrower has not responded within ten Business Days of a request for such consent), (iv) the Administrative Agent shall receive at the time of each such assignment, from the assigning or assignee Lender, the payment of a non-refundable assignment fee of $3,500, unless waived by the Administrative Agent in its sole discretion and (v) no such transfer or assignment will be effective until recorded by the Administrative Agent on the Register pursuant to Section 13.15.  To the extent of any assignment pursuant to this Section 13.04(b), the assigning Lender shall be relieved of its obligations hereunder with respect to its assigned Commitment and/or outstanding Loans.  At the time of each assignment pursuant to this Section 13.04(b) to a Person which is not already a Lender hereunder, the respective assignee Lender shall (A) to the extent legally entitled to do so, provide to the Borrower the appropriate Internal Revenue Service Forms (and, if applicable, a Section 4.04(c)(ii) Certificate) described in Section 4.04(c) and (B) deliver to the Administrative Agent an Administrative Questionnaire.  To the extent that an assignment of all or any portion of a Lender’s Commitment, Loans and related outstanding Obligations pursuant to Section 1.13 or this Section  13.04(b) would, at the time of such assignment, result in increased costs under Section  1.10, or  4.04 from those being charged by the respective assigning Lender prior to such assignment, then the Borrower shall not be obligated to pay such increased costs (although the Borrower, in accordance with and pursuant to the other provisions of
		

		
			
		

		
			

		 

		

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			this Agreement, shall be obligated to pay any other increased costs of the type described above resulting from any Change in Law after the date of the respective assignment). 
		

		
			(c)       Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest in obligations under the Credit Documents (the “Participant Register”); provided, that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant’s interest in any commitments, loans, or its other obligations under any Credit Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register. 
		

		
			(d)       Nothing in this Agreement shall prevent or prohibit any Lender from pledging its Loans and Notes hereunder as security for the obligations of such Lender, including (i) to a Federal Reserve Bank in support of borrowings made by such Lender from such Federal Reserve Bank and (ii) with prior notification to the Administrative Agent (but without the consent of the Administrative Agent or the Borrower), in the case of any Lender which is a fund, to its trustee or to a collateral agent providing credit or credit support to such Lender in support of its obligations to such trustee, such collateral agent or a holder of such obligations, as the case may be.  No pledge pursuant to this clause (d) shall release the transferor Lender from any of its obligations hereunder. 
		

		
			13.05   No Waiver; Remedies Cumulative.  No failure or delay on the part of the Administrative Agent, or any Lender in exercising any right, power or privilege hereunder or under any other Credit Document and no course of dealing between the Borrower or any other Credit Party and the Administrative Agent, or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any other Credit Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder.  The rights, powers and remedies herein or in any other Credit Document expressly provided are cumulative and not exclusive of any rights, powers or remedies which the Administrative Agent, or any Lender would otherwise have.  No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Administrative Agent, or any Lender to any other or further action in any circumstances without notice or demand. 
		

		
			13.06   Payments Pro Rata.  (a) Except as otherwise provided in this Agreement, the Administrative Agent agrees that promptly after its receipt of each payment from or on behalf of the Borrower in respect of any Obligations hereunder, the Administrative Agent shall distribute such payment to the Lenders entitled thereto (other than any Lender that has consented in writing to waive its pro rata share of any such payment) pro rata based upon their respective shares, if any, of the Obligations with respect to which such payment was received. 
		

		
			(b)       Each of the Lenders agrees that, if it should receive any amount hereunder (whether by voluntary payment, by realization upon security, by the exercise of the right of setoff or banker’s lien, by counterclaim or cross action, by the enforcement of any right under the Credit Documents, or otherwise), which is applicable to the payment of the principal of, or interest on, the Loans or Commitment Commission, of a sum which with respect to the related sum or sums received by other
		

		
			
		

		
			

		 

		

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			Lenders is in a greater proportion than the total of such Obligation then owed and due to such Lender bears to the total of such Obligation then owed and due to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess payment shall purchase for cash without recourse or warranty from the other Lenders an interest in the Obligations of the respective Credit Party to such Lenders in such amount as shall result in a proportional participation by all the Lenders in such amount; provided, that if all or any portion of such excess amount is thereafter recovered from such Lenders, such purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without interest provided further, the provisions of this Section  13.06(b) shall not be construed to apply to any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant other than Magellan, the Borrower or any Affiliate thereof. 
		

		
			(c)       Notwithstanding anything to the contrary contained herein, the provisions of the preceding Sections 13.06(a) and (b) shall be subject to the express provisions of this Agreement which require, or permit, differing payments to be made to Non-Defaulting Lenders as opposed to Defaulting Lenders. 
		

		
			13.07   Calculations; Computations.  (a) The financial statements to be furnished to the Lenders pursuant hereto shall be made and prepared in accordance with generally accepted accounting principles in the United States consistently applied throughout the periods involved (except as set forth in the notes thereto or as otherwise disclosed in writing by Magellan to the Lenders); provided, that, (i) except as otherwise specifically provided herein, all computations and all definitions (including accounting terms) used in determining compliance with Sections  9.03(iii),   9.05(xi),   9.05(xiv),   9.08,   9.09 and  9.10(i)(B) shall utilize generally accepted accounting principles and policies in conformity with those used to prepare the audited historical financial statements of Magellan referred to in Section  7.05(a) and (ii) to the extent expressly provided herein, certain calculations shall be made on a Pro Forma Basis. 
		

		
			(b)      All computations of interest, Commitment Commission and other Fees hereunder shall be made on the basis of a year of 360 days (except for interest calculated by reference to the Prime Lending Rate, which shall be based on a year of 365 or 366 days, as applicable) for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest, Commitment Commission or other Fees are payable. 
		

		
			13.08   GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.  (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT SHALL, EXCEPT AS TO ANY OTHER CREDIT DOCUMENT AS EXPRESSLY SET FORTH THEREIN, BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK.  EACH PARTY HERETO HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS.  EACH PARTY HERETO HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PARTY, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL ACTION PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENTS BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL
		

		
			
		

		
			

		 

		

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			JURISDICTION OVER SUCH PARTY.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  EACH PARTY HERETO FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT ITS ADDRESS SPECIFIED IN SECTION 13.03, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 
		

		
			(b)       EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE  (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
		

		
			(c)       EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
		

		
			(d)       MAGELLAN HEREBY IRREVOCABLY ACCEPTS THE APPOINTMENT TO RECEIVE SERVICE OF PROCESS FOR EACH SUBSIDIARY GUARANTOR (IF ANY) THAT IS A FOREIGN SUBSIDIARY OF MAGELLAN AS PROVIDED IN SECTION 16(a) OF THE GUARANTY. 
		

		
			13.09   Counterparts.  This Agreement may be executed in any number of counterparts 
		

		
			and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Administrative Agent. 
		

		
			13.10   Effectiveness.  This Agreement shall become effective on the date (the “Effective Date”) on which (i) Magellan, the Borrower, the Administrative Agent and each of the Lenders shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered the same to the Administrative Agent at the Notice Office or, in the case of the Lenders, shall have given to the Administrative Agent telephonic (confirmed in writing), written or telex notice (actually received) at such office that the same has been signed and mailed to it and (ii) the conditions contained in  Section 5 are met to the satisfaction of the Agents and the Required Lenders.  Unless the Administrative Agent has received actual notice from any Lender that the conditions described in clause (ii) of the preceding sentence have not been met to its satisfaction, upon the satisfaction of the condition described in clause (i) of the immediately preceding sentence and upon the Administrative Agent’s good faith determination that the 
		

		
			
		

		
			

		 

		

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			conditions described in clause (ii) of the immediately preceding sentence have been met, then the Effective Date shall have deemed to have occurred.  The Administrative Agent will give Magellan, the Borrower and each Lender prompt written notice of the occurrence of the Effective Date. 
		

		
			13.11      Headings Descriptive.  The headings of the several sections and subsections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement. 
		

		
			13.12      Amendment or Waiver; etc.
		

		
			(a)          Neither this Agreement nor any other Credit Document nor any terms hereof or thereof may be changed, waived, discharged or terminated unless such change, waiver, discharge or termination is in writing signed by the respective Credit Parties party hereto or thereto and the Required Lenders (although additional parties may be added to (and annexes may be modified to reflect such additions), and Subsidiaries of the Borrower may be released from, the Guaranty in accordance with the provisions hereof and thereof without the consent of the other Credit Parties party thereto or the Required Lenders); provided, that no such change, waiver, discharge or termination shall, without the consent of each Lender directly affected thereby (other than a Defaulting Lender), (i) (x) extend the final scheduled maturity of any Loan or Note in respect of the Loans, or (y) with respect to clause (x), reduce the rate or extend the time of payment of interest or Fees thereon (except in connection with the waiver of applicability of any post-default increase in interest rates), or reduce or forgive the principal amount thereof or reduce or forgive any interest, Fees or other amounts payable hereunder (it being understood that any amendment or modification to the financial definitions in this Agreement, or to Section  13.07(a), shall not constitute a reduction in the rate of interest or Fees for the purposes of this clause (i)), (ii) release all or substantially all of the aggregate value of the Guaranty of all of the Guarantors (except as expressly provided in the Credit Documents), (iii) amend, modify or waive any provision of this Section  13.12(a) (except for technical amendments with respect to additional extensions of credit pursuant to this Agreement which afford the protections to such additional extensions of credit of the type provided on the Effective Date) (iv) reduce the percentage specified in the definition of Required Lenders (it being understood that, with the consent of the Required Lenders, additional extensions of credit pursuant to this Agreement may be included in the determination of the Required Lenders on substantially the same basis as on the Effective Date), (v) consent to the assignment or transfer by the Borrower or Magellan of any of its rights and obligations under this Agreement or (vi) amend Section 13.06 in a manner that would alter the pro rata sharing of amounts required thereby; provided further, that no such change, waiver, discharge or termination shall (1) increase the Commitment of any Lender over the amount thereof then in effect, or extend the date of any mandatory reduction in the Commitment of any Lender, without the consent of such Lender (it being understood that waivers or modifications of conditions precedent, covenants, Defaults or Events of Default shall not constitute an increase of the Commitment of any Lender, and that an increase in the available portion of the Commitment of any Lender shall not constitute an increase of the Commitment of such Lender), or (2) without the consent of the Administrative Agent, amend, modify or waive any provision of  Section 12 or any other provision of this Agreement as same relates to the rights or obligations of the Administrative Agent. 
		

		
			(b)          If, in connection with any proposed change, waiver, discharge or termination of any of the provisions of this Agreement as contemplated by clauses (i) through (v), inclusive, of the first proviso to Section  13.12(a), the consent of the Required Lenders is obtained but the consent of one or more of such other Lenders whose consent is required is not obtained, then the Borrower shall have the right, so long as all non-consenting Lenders whose individual consent is required are treated as described in either clause A below, to (A) replace each such non-consenting Lender or Lenders with one or more Replacement Lenders pursuant to Section 1.13 so long as at the time of such replacement, each such Replacement Lender consents to the proposed change, waiver, discharge or termination; provided further,
		

		
			
		

		
			

		 

		

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			that the Borrower shall not have the right to replace a Lender, terminate its Commitment or repay its Loans solely as a result of the exercise of such Lender’s rights (and the withholding of any required consent by such Lender) pursuant to the second proviso to Section 13.12(a).  Upon the effectiveness of any such replacement or termination, such replaced or terminated Lender shall no longer constitute a “Lender” for purposes of this Agreement, except with respect to indemnifications under this Agreement (including, without limitation, Sections 1.10,  1.11,  4.04,  12.06 and 13.01), which shall survive as to such Lender. 
		

		
			13.13      Survival.  All indemnities set forth herein including, without limitation, in Sections 1.10, 1.11, 4.04, 12.06 and  13.01 shall survive the execution, delivery and termination of this Agreement and the Notes and the making and repayment of the Obligations. 
		

		
			13.14      Domicile of Loans.  Each Lender may transfer and carry its Loans at, to or for the account of any office, Subsidiary or Affiliate of such Lender.  Notwithstanding anything to the contrary contained herein, to the extent that a transfer of Loans pursuant to this Section 13.14 would, at the time of such transfer, result in increased costs under Section  1.10,   1.11, or  4.04 from those being charged by the respective Lender prior to such transfer, then the Borrower shall not be obligated to pay such increased costs (although the Borrower shall be obligated to pay any other increased costs of the type described above resulting from any Change in Law after the date of the respective transfer). 
		

		
			13.15      Register.  The Borrower hereby designates the Administrative Agent to serve as its agent, solely for purposes of this Section 13.15, to maintain a register (the “Register”) on which it will record, the Loans made by each of the Lenders, the amount of any principal or interest due and payable with respect to such Loans and each repayment in respect of the principal amount, and related interest amounts of the Loans of each Lender.  Failure to make any such recordation, or any error in such recordation, shall not affect the Borrower’s obligations in respect of such Loans.  The transfer of the Loans of any Lender and the rights to the principal of, and interest on, any Loan shall not be effective until such transfer is recorded on the Register maintained by the Administrative Agent with respect to ownership of such Loans and prior to such recordation all amounts owing to the transferor with respect to such Loans shall remain owing to the transferor.  The registration of assignment or transfer of all or part of the Loans shall be recorded by the Administrative Agent on the Register only upon the acceptance by the Administrative Agent of a properly executed and delivered Assignment and Assumption Agreement pursuant to Section 13.04(b).  Coincident with the delivery of such an Assignment and Assumption Agreement to the Administrative Agent for acceptance and registration of assignment or transfer of all or part of a Loan, or as soon thereafter as practicable, the assigning or transferor Lender shall surrender the Note (if any) evidencing such Loan, and thereupon one or more new Notes in the same aggregate principal amount shall be issued to the assigning or transferor Lender and/or the new Lender at the request of any such Lender.  Each of Magellan and the Borrower agrees to indemnify the Administrative Agent from and against any and all losses, claims, damages and liabilities of whatsoever nature which may be imposed on, asserted against or incurred by the Administrative Agent in performing its duties under this Section 13.15 except to the extent resulting from the Administrative Agent’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).  In addition, the Borrower shall have the right, upon its written request to the Administrative Agent, to review a copy of the Register at any reasonable time. 
		

		
			13.16      Confidentiality.  (a) Subject to the provisions of clause  (b) of this Section  13.16, each Lender agrees that it will use its reasonable efforts not to disclose without the prior consent of Magellan (other than to its employees, auditors, advisors, Affiliates or counsel or to another Lender if such Lender or such Lender’s holding or parent company in its reasonable discretion determines that any such party should have access to such information; provided, that such Persons shall be subject to the provisions of this Section  13.16 to the same extent as such Lender) any information with respect to
		

		
			
		

		
			

		 

		

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			Magellan or any of its Subsidiaries which is now or in the future furnished pursuant to this Agreement or any other Credit Document and which is designated as confidential by the Borrower; provided, that any Lender may disclose any such information (i) as has become generally available to the public other than by virtue of a breach of this Section  13.16(a) by the respective Lender or becomes available to the Administrative Agent, any Lender or any of their respective Affiliates from a source other than the Borrower that does not owe the Borrower a fiduciary duty, (ii) as may be required or appropriate in any report, statement or testimony submitted to any municipal, state or Federal regulatory body having or claiming to have jurisdiction over such Lender or to the Federal Reserve Board or the Federal Deposit Insurance Corporation or similar organizations (whether in the United States or elsewhere) or their successors, (iii) as may be required or appropriate in respect to any summons or subpoena or in connection with any litigation, (iv) in order to comply with any law, order, regulation or ruling applicable to such Lender, (v) to any other party hereto, (vi) to any actual or prospective direct or indirect contractual counterparty in any swap, hedge or similar agreement (or to any such contractual counterparty’s professional advisor), so long as such contractual counterparty (or such professional advisor) agrees to be bound by an agreement containing provisions substantially the same as those of this Section 13.16, (vii) to any prospective or actual transferee or participant in connection with any contemplated transfer or participation of any of the Notes, Loans, or Commitments or any interest therein by such Lender; provided, that such prospective transferee agrees to be bound by an agreement containing provisions substantially the same as those of this Section  13.16 and (viii) in connection with the exercise of remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder. 
		

		
			(b)        Magellan hereby acknowledges and agrees that each Lender may share with any of its affiliates, and such affiliates may share with such Lender, any information related to Magellan or any of its Subsidiaries (including, without limitation, any non-public customer information regarding the creditworthiness of Magellan and its Subsidiaries); provided, that such Persons shall be subject to the provisions of this Section 13.16 to the same extent as such Lender. 
		

		
			13.17    No Fiduciary Duty.  The Administrative Agent, each Lender and their Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have economic interests that conflict with those of the Credit Parties, their stockholders and/or their affiliates.  Each of Magellan and the Borrower agrees that nothing in the Credit Documents will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender, on the one hand, and such Obligor, its stockholders or its affiliates on the other.  Each of Magellan and the Borrower acknowledges and agrees that (i) the transactions contemplated by the Credit Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lenders, on the one hand, and the Credit Parties, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender has assumed an advisory or fiduciary responsibility in favor of any Credit Party, its stockholders or its affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender has advised, is currently advising or will advise any Credit Party, its stockholders or its Affiliates on other matters) or any other obligation to any Credit Party except the obligations expressly set forth in the Credit Documents and (y) each Lender is acting solely as principal and not as the agent or fiduciary of any Credit Party, its management, stockholders, creditors or any other Person.  Each of Magellan and the Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto. 
		

		
			13.18    Patriot Act.  Each Lender that is subject to the Patriot Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the Patriot Act (Title III of Pub. L. 107 56 (signed into law October
		

		
			
		

		
			

		 

		

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			26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies each Credit Party, which information includes the name and address of each Credit Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify each Credit Party in accordance with the Patriot Act. 
		

		
			13.19    Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among the parties thereto, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Credit Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: 
		

		
			(a)       the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and 
		

		
			(b)       the effects of any Bail-in Action on any such liability, including, if applicable: 
		

		
			(i)        a reduction in full or in part or cancellation of any such liability; 
		

		
			(ii)       a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document; or 
		

		
			(iii)     the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority. 
		

		
			[Remainder of Page Intentionally Left Blank]
		

		
			 
		

		
			

		 

		

			69

		

 

		

		
			IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Agreement as of the date first above written. 
		

			
					
						Address:

					
					
						MAGELLAN PHARMACY SERVICES,

				
	
					
						 

					
					
						INC., as Borrower

				
	
					
						55 Nod Road

					
					
						 

				
	
					
						Avon, CT 06001

					
					
						 

				
	
					
						Attention: Chief Financial Officer

					
					
						By:

					
					
						/s/ Linton Newlin

				
	
					
						Tel. No.: (860) 507-1900

					
					
						 

					
					
						Name: Linton Newlin

				
	
					
						Fax No.: (860) 507-1990

					
					
						 

					
					
						Title:   Vice President

				
	
					
						 

					
					
						 

				
	
					
						With a copy to:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						55 Nod Road

					
					
						 

				
	
					
						Avon, CT 06001

					
					
						 

				
	
					
						Attention: General Counsel

					
					
						 

				
	
					
						Tel. No.: (860) 507-1906

					
					
						 

				
	
					
						Fax No.: (860) 507-1990

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Address:

					
					
						MAGELLAN HEALTH, INC.

				
	
					
						 

					
					
						 

				
	
					
						55 Nod Road

					
					
						 

				
	
					
						Avon, CT 06001

					
					
						By:

					
					
						/s/ Jonathan Rubin

				
	
					
						Attention: Chief Financial Officer

					
					
						 

					
					
						Name: Jonathan Rubin

				
	
					
						Tel. No.: (860) 507-1900

					
					
						 

					
					
						Title:   Chief Financial Officer

				
	
					
						Fax No.: (860) 507-1990

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						With a copy to:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						55 Nod Road

					
					
						 

				
	
					
						Avon, CT 06001

					
					
						 

				
	
					
						Attention: General Counsel

					
					
						 

				
	
					
						Tel. No.: (860) 507-1906

					
					
						 

				
	
					
						Fax No.: (860) 507-1990

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[SIGNATURE PAGE TO CREDIT AGREEMENT]

		

 

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						THE BANK OF TOKYO-MITSUBISHI

				
	
					
						 

					
					
						UFJ, LTD., as Administrative Agent and

				
	
					
						 

					
					
						Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Anvar Hodjaev

				
	
					
						 

					
					
						 

					
					
						Name: Anvar Hodjaev

				
	
					
						 

					
					
						 

					
					
						Title:   Director

				

		
			 
		

		
			
		

		

		 

		

			[SIGNATURE PAGE TO CREDIT AGREEMENT]

		

 

	
					
						

					
						 

					
					
						CITIBANK, N.A., as Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Michael Vondriska

				
	
					
						 

					
					
						 

					
					
						Name: Michael Vondriska

				
	
					
						 

					
					
						 

					
					
						Title:   Vice President

				

		
			 
		

		
			
		

		

		 

		

			[SIGNATURE PAGE TO CREDIT AGREEMENT]

		

 

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						COMPASS BANK (d/b/a BBVA

				
	
					
						 

					
					
						COMPASS), as Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Cameron Gateman

				
	
					
						 

					
					
						 

					
					
						Name: CAMERON GATEMAN

				
	
					
						 

					
					
						 

					
					
						Title:   Senior Banker

				

		
			 
		

		
			
		

		

		 

		

			[SIGNATURE PAGE TO CREDIT AGREEMENT]

		

 

	
					
						

					
						 

					
					
						JPMorgan Chase Bank, N.A., as

				
	
					
						 

					
					
						Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ John Kushnerick

				
	
					
						 

					
					
						 

					
					
						Name: John Kushnerick

				
	
					
						 

					
					
						 

					
					
						Title:   Executive Director

				

		
			 
		

		
			
		

		

		 

		

			[SIGNATURE PAGE TO CREDIT AGREEMENT]

		

 

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SunTrust Bank, as Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Katherine Bass

				
	
					
						 

					
					
						 

					
					
						Name: Katherine Bass

				
	
					
						 

					
					
						 

					
					
						Title:   Director

				

		
			 
		

		
			
		

		

		 

		

			[SIGNATURE PAGE TO CREDIT AGREEMENT]

		

 

	
					
						

					
						 

					
					
						WELLS FARGO BANK, NATIONAL

				
	
					
						 

					
					
						ASSOCIATION, as Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Matthew Olson

				
	
					
						 

					
					
						 

					
					
						Name: Wells Fargo Bank, N.A.

				
	
					
						 

					
					
						 

					
					
						                  Matthew Olson

				
	
					
						 

					
					
						 

					
					
						Title:   Director

				

		
			 
		

		
			
		

		

		 

		

			[SIGNATURE PAGE TO CREDIT AGREEMENT]

		

 

	
					
						

					
						s

					
					
						 

					
					
						 

				
	
					
						 

					
					
						U.S. Bank National Association, as

				
	
					
						 

					
					
						Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jennifer Hwang

				
	
					
						 

					
					
						 

					
					
						Name: Jennifer Hwang

				
	
					
						 

					
					
						 

					
					
						Title:   Senior Vice President

				

		
			 
		

		
			 
		

		 

		

			[SIGNATURE PAGE TO CREDIT AGREEMENT]mgln_Ex10_44

		

			Exhibit 10.44

		

		

			Execution Version

		

		
			 
		

		
			 
		

		
			PURCHASE AGREEMENT
		

		
			Dated as of November 19, 2016
		

		
			among
		

		
			MAGELLAN PHARMACY SERVICES, INC.,
		

		
			VERIDICUS HOLDINGS, LLC AND
		

		
			VERIDICUS HEALTH, LLC
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

		

			 

		

		

		
			TABLE OF CONTENTS
		

			
					
						 

					
					
						 

					
					
						Page

				
	
					
						ARTICLE I

					
					
						PURCHASE AND SALE OF INTERESTS 

					
2 
				
	
					
						Section 1.1.

					
					
						The Purchase and Sale of the Interests 

					
2 
				
	
					
						Section 1.2.

					
					
						Closing 

					
2 
				
	
					
						Section 1.3.

					
					
						Closing Deliveries and Actions 

					
2 
				
	
					
						ARTICLE II

					
					
						PURCHASE PRICE 

					
3 
				
	
					
						Section 2.1.

					
					
						Purchase Price 

					
3 
				
	
					
						Section 2.2.

					
					
						Adjustments 

					
4 
				
	
					
						Section 2.3.

					
					
						Escrow

					
7 
				
	
					
						Section 2.4.

					
					
						Withholding 

					
7 
				
	
					
						Section 2.5.

					
					
						Purchase Price Allocation 

					
7 
				
	
					
						ARTICLE III

					
					
						REPRESENTATIONS AND WARRANTIES OF THE SELLER 

					
8 
				
	
					
						Section 3.1.

					
					
						Authority; Noncontravention 

					
8 
				
	
					
						Section 3.2.

					
					
						Governmental Approvals 

					
9 
				
	
					
						Section 3.3.

					
					
						The Interests 

					
9 
				
	
					
						Section 3.4.

					
					
						Litigation 

					
9 
				
	
					
						Section 3.5.

					
					
						Brokers and Other Advisors

					
9 
				
	
					
						ARTICLE IV

					
					
						REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

					
9 
				
	
					
						Section 4.1.

					
					
						Organization, Power, Standing and Qualification 

					
10 
				
	
					
						Section 4.2.

					
					
						Subsidiaries 

					
10 
				
	
					
						Section 4.3.

					
					
						Capitalization 

					
11 
				
	
					
						Section 4.4.

					
					
						Authority; Noncontravention; Voting Requirements

					
11 
				
	
					
						Section 4.5.

					
					
						Governmental Approvals 

					
12 
				
	
					
						Section 4.6.

					
					
						Financial Statements and Controls

					
12 
				
	
					
						Section 4.7.

					
					
						No Undisclosed Liabilities 

					
12 
				
	
					
						Section 4.8.

					
					
						Absence of Certain Changes or Events 

					
13 
				
	
					
						Section 4.9.

					
					
						Legal Proceedings 

					
13 
				
	
					
						Section 4.10.

					
					
						Compliance With Laws

					
13 
				
	
					
						Section 4.11.

					
					
						Taxes 

					
14 
				
	
					
						Section 4.12.

					
					
						Employee Benefits and Labor Matters 

					
16 
				
	
					
						Section 4.13.

					
					
						Environmental Matters

					
18 
				
	
					
						Section 4.14.

					
					
						Contracts 

					
20 
				

		
			
		

		
			

		 

		

			i

		

 

		

			 

		

		

		
			TABLE OF CONTENTS
		

		
			(continued)
		

			
					
						 

					
					
						 

					
					
						Page

				
	
					
						Section 4.15.

					
					
						Title to Properties 

					
22 
				
	
					
						Section 4.16.

					
					
						Intellectual Property 

					
23 
				
	
					
						Section 4.17.

					
					
						Insurance 

					
25 
				
	
					
						Section 4.18.

					
					
						Brokers and Other Advisors

					
26 
				
	
					
						Section 4.19.

					
					
						Health Care Regulatory Compliance 

					
26 
				
	
					
						Section 4.20.

					
					
						Accounts and Notes Receivable and Payable 

					
30 
				
	
					
						Section 4.21.

					
					
						Related Party Transactions 

					
30 
				
	
					
						Section 4.22.

					
					
						Banks; Power of Attorney 

					
30 
				
	
					
						Section 4.23.

					
					
						Customers and Suppliers

					
30 
				
	
					
						Section 4.24.

					
					
						Certain Payments 

					
31 
				
	
					
						Section 4.25.

					
					
						Sales Personnel 

					
31 
				
	
					
						Section 4.26.

					
					
						Recoupment Proceedings 

					
31 
				
	
					
						Section 4.27.

					
					
						Capital or Surplus Management 

					
31 
				
	
					
						Section 4.28.

					
					
						Entire Business; Sufficiency of Assets and Employees 

					
31 
				
	
					
						ARTICLE V

					
					
						REPRESENTATIONS AND WARRANTIES OF PARENT 

					
32 
				
	
					
						Section 5.1.

					
					
						Organization, Standing and Corporate Power 

					
32 
				
	
					
						Section 5.2.

					
					
						Authority; Noncontravention 

					
32 
				
	
					
						Section 5.3.

					
					
						Governmental Approvals 

					
32 
				
	
					
						Section 5.4.

					
					
						Brokers and Other Advisors

					
32 
				
	
					
						Section 5.5.

					
					
						Litigation 

					
33 
				
	
					
						Section 5.6.

					
					
						Sufficient Funds 

					
33 
				
	
					
						Section 5.7.

					
					
						Reliance

					
33 
				
	
					
						Section 5.8.

					
					
						Investment 

					
33 
				
	
					
						Section 5.9.

					
					
						Information 

					
34 
				
	
					
						ARTICLE VI

					
					
						ADDITIONAL COVENANTS AND AGREEMENTS 

					
34 
				
	
					
						Section 6.1.

					
					
						Conduct of Business 

					
34 
				
	
					
						Section 6.2.

					
					
						No Solicitation by the Company; Etc 

					
37 
				
	
					
						Section 6.3.

					
					
						Commercially Reasonable Efforts 

					
38 
				
	
					
						Section 6.4.

					
					
						Public Announcements 

					
39 
				
	
					
						Section 6.5.

					
					
						Access to Information; Confidentiality 

					
39 
				
	
					
						Section 6.6.

					
					
						Notification of Certain Matters 

					
39 
				
	
					
						Section 6.7.

					
					
						Fees and Expenses 

					
40 
				

		
			
		

		
			

		 

		

			ii

		

 

		

			 

		

		

		
			TABLE OF CONTENTS
		

		
			(continued)
		

			
					
						 

					
					
						 

					
					
						Page

				
	
					
						Section 6.8.

					
					
						Tax Matters 

					
40 
				
	
					
						Section 6.9.

					
					
						Related Party Transactions 

					
42 
				
	
					
						Section 6.10.

					
					
						Post-Closing Access; Preservation of Records 

					
43 
				
	
					
						Section 6.11.

					
					
						Parent’s Obligations with Respect to Employee Benefits 

					
43 
				
	
					
						Section 6.12.

					
					
						Director and Officer Indemnification 

					
45 
				
	
					
						Section 6.13.

					
					
						Veridicus Name 

					
46 
				
	
					
						Section 6.14.

					
					
						Change In Control Customer Contracts 

					
46 
				
	
					
						Section 6.15.

					
					
						Access to Insurance

					
46 
				
	
					
						Section 6.16.

					
					
						Updated Information Regarding Customers and Suppliers 

					
46 
				
	
					
						Section 6.17.

					
					
						Performance Guarantee Payment 

					
46 
				
	
					
						ARTICLE VII

					
					
						CONDITIONS PRECEDENT 

					
47 
				
	
					
						Section 7.1.

					
					
						Conditions to Each Party’s Obligation to Effect the Sale 

					
47 
				
	
					
						Section 7.2.

					
					
						Conditions to Obligations of Parent 

					
47 
				
	
					
						Section 7.3.

					
					
						Conditions to Obligation of the Seller 

					
49 
				
	
					
						Section 7.4.

					
					
						Frustration of Closing Conditions 

					
50 
				
	
					
						ARTICLE VIII

					
					
						TERMINATION 

					
50 
				
	
					
						Section 8.1.

					
					
						Termination 

					
50 
				
	
					
						Section 8.2.

					
					
						Limitation on Right of Termination 

					
51 
				
	
					
						Section 8.3.

					
					
						Effect of Termination 

					
51 
				
	
					
						ARTICLE IX

					
					
						SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS; INDEMNIFICATION

					
51 
				
	
					
						Section 9.1.

					
					
						Survival of Representations, Warranties and Covenants 

					
51 
				
	
					
						Section 9.2.

					
					
						Right to Indemnification 

					
52 
				
	
					
						Section 9.3.

					
					
						Escrow; Threshold; Limitations on Indemnity 

					
53 
				
	
					
						Section 9.4.

					
					
						No Right of Contribution 

					
54 
				
	
					
						Section 9.5.

					
					
						Indemnification Procedures 

					
54 
				
	
					
						Section 9.6.

					
					
						Mitigation 

					
57 
				
	
					
						Section 9.7.

					
					
						No Duplication 

					
57 
				
	
					
						Section 9.8.

					
					
						Insurance 

					
57 
				
	
					
						Section 9.9.

					
					
						Tax Treatment of Indemnity Payments 

					
58 
				
	
					
						ARTICLE X

					
					
						MISCELLANEOUS 

					
58 
				
	
					
						Section 10.1.

					
					
						Amendment or Supplement 

					
58 
				

		
			
		

		
			

		 

		

			iii

		

 

		

			 

		

		

		
			TABLE OF CONTENTS
		

		
			(continued)
		

			
					
						 

					
					
						 

					
					
						Page

				
	
					
						Section 10.2.

					
					
						Extension of Time, Waiver, Etc 

					
58 
				
	
					
						Section 10.3.

					
					
						Assignment 

					
58 
				
	
					
						Section 10.4.

					
					
						Counterparts 

					
58 
				
	
					
						Section 10.5.

					
					
						Entire Agreement; No Third-Party Beneficiaries 

					
58 
				
	
					
						Section 10.6.

					
					
						Governing Law; Jurisdiction; Waiver of Jury Trial 

					
59 
				
	
					
						Section 10.7.

					
					
						Specific Enforcement 

					
59 
				
	
					
						Section 10.8.

					
					
						Consent to Jurisdiction 

					
59 
				
	
					
						Section 10.9.

					
					
						Notices 

					
59 
				
	
					
						Section 10.10.

					
					
						Severability 

					
60 
				
	
					
						Section 10.11.

					
					
						Definitions

					
61 
				
	
					
						Section 10.12.

					
					
						Interpretation 

					
69 
				
	
					
						Section 10.13.

					
					
						Schedules 

					
70 
				
	
					
						Section 10.14.

					
					
						Legal Representation 

					
71 
				

		
			
		

		
			

		 

		

			iv

		

 

		

			 

		

		

		
			EXHIBITS
		

		
			Exhibit 2.3: Form of Escrow Agreement 
		

		
			Exhibit 2.5(b): Allocation Principles 
		

		
			Exhibit 6.9: Permitted Related Party Transactions 
		

		
			Exhibit 7.2(g)(i): Form of Employment Agreement 
		

		
			Exhibit 7.2(g)(ii): Form of Non-Competition and Non-Solicitation Agreement 
		

		
			Exhibit 7.2(g)(iii): Form of Non-Solicitation Agreement 
		

		
			Exhibit 10.11(a): Net Working Capital Calculation 
		

		
			Exhibit 10.11(b): Knowledge of the Company 
		

		
			Exhibit 10.11(c): Form of Guaranty 
		

		
			Exhibit 10.11(d): Capital Leases 
		

		
			 
		

		
			 
		

		
			

		 

		

			v

		

 

		

			 

		

		

		
			PURCHASE AGREEMENT
		

		
			This PURCHASE AGREEMENT, dated as of November 19, 2016 (this “Agreement”), is by and among MAGELLAN PHARMACY SERVICES, INC., a Delaware corporation (“Parent”), VERIDICUS HOLDINGS, LLC, a Utah limited liability company (the “Company”), and VERIDICUS HEALTH, LLC, a Delaware limited liability company (the “Seller”).  
		

		
			Certain terms used in this Agreement are used as defined in Section 10.11 below and all references herein to “Sections,” “Articles,” “Exhibits” or “Schedules” without further description shall refer to the sections, articles, exhibits or schedules of or to this Agreement. 
		

		
			WHEREAS, the Seller owns all of the issued and outstanding membership interests of the Company, which represent all of the issued and outstanding equity interests of the Company (the “Interests”); 
		

		
			WHEREAS, the Seller wishes to sell to Parent, and Parent wishes to purchase from the Seller, all of the Interests upon the terms and subject to the conditions set forth in this Agreement (the “Sale”); 
		

		
			WHEREAS, certain members of the Seller have, as a condition and inducement to Parent’s entering into this Agreement, concurrently with the execution and delivery of this Agreement, entered into the Employment Agreements (as hereinafter defined) with Parent;
		

		
			WHEREAS, Parent and certain members of the Seller have, as a condition and inducement to Parent entering into this Agreement, concurrently with the execution and delivery of this Agreement, entered into the Non-Compete and Non-Solicitation Agreements or the Non-Solicitation Agreement (as hereinafter defined);
		

		
			WHEREAS, Parent and certain members of the Seller have, as a condition and  inducement to Parent entering into this Agreement, concurrently with the execution and delivery of this Agreement, entered into the Guaranty (as hereinafter defined), pursuant to which such members of the Seller have agreed to guarantee the obligations of the Seller under this  Agreement; and  WHEREAS, simultaneously with the execution of this Agreement, the Seller and Magellan Healthcare, Inc. (“Magellan Healthcare”) have entered into a Purchase Agreement, dated as of the date hereof, pursuant to which the Seller has agreed, subject to the terms and conditions thereof, to sell to Magellan Healthcare and Magellan Healthcare has agreed to purchase from the Seller, all of the issued and outstanding shares of capital stock of Granite Alliance Insurance Company (the “Granite Agreement”).   
		

		
			NOW, THEREFORE, in consideration of the representations, warranties and covenants, and subject to the conditions, contained in this Agreement, and intending to be legally bound hereby, the parties hereto hereby agree as follows: 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			ARTICLE I
		

		
			Purchase and Sale of Interests
		

		
			Section 1.1.       The Purchase and Sale of the Interests.  At the Closing, subject to the terms and conditions of this Agreement, Parent shall purchase from the Seller, and the Seller shall sell, transfer, convey and assign to Parent, all of the Seller’s right, title and interest in and to the Interests, free and clear of all Liens, other than Liens on transfer imposed under applicable securities Laws. 
		

		
			Section 1.2.       Closing.  The closing of the transactions contemplated hereby (the “Closing”) shall take place at 10:00 a.m. (New York City time) on a business day to be specified by Parent and reasonably acceptable to the Seller, which date shall be, subject to the satisfaction or waiver of the conditions set forth in Article VII (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions), the earlier of (i) two (2) business days following the date on which the Utah Pharmacy Licenses are obtained by Parent and (ii) December 15, 2016, unless another time or date, or both, are agreed to in writing by the parties hereto. The date on which the Closing is held is herein referred to as the “Closing Date.” The Closing will be held at the offices of Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New York, New York 10153, unless another place is agreed to by the parties hereto. 
		

		
			Section 1.3.       Closing Deliveries and Actions.  At the Closing, the parties hereto shall make the following deliveries and take the following actions. 
		

		
			(a)       Deliveries by the Seller. At Closing, the Seller shall: 
		

		
			(i)        deliver to Parent an assignment, duly executed in favor of Parent, with respect to all of the Interests owned by the Seller in satisfaction of the condition set forth in Section 7.2(k);  
		

		
			(ii)       deliver to Parent and the Escrow Agent a duly executed signature page to the Escrow Agreement; 
		

		
			(iii)      deliver to Parent an affidavit of non-foreign status satisfying the requirements of Section 1445 of the Code from the Seller, in satisfaction of the condition set forth in Section 7.2(h);  
		

		
			(iv)      deliver to Parent duly authorized resolutions of the members of the Company in satisfaction of the condition set forth in Section 7.2(i);  
		

		
			(v)       deliver to Parent duly executed resignations and releases in satisfaction of the condition set forth in Section 7.2(j);  
		

		
			(vi)      deliver to Parent a certificate in satisfaction of the condition set forth in Section 7.2(n);  
		

		
			(vii)     deliver to Parent UCC-3 termination statements and such other documents and instruments executed by or on behalf of the Bank Lender, McKesson and any other Person who has been granted a Lien (other than a Permitted Lien) on or a security in the assets of the Company and/or its Subsidiaries that remains in existence as of the date hereof, in satisfaction of the conditions set forth in Section 7.2(p); and 
		

		
			
		

		
			

		 

		

			2

		

 

		

			 

		

		

		
			(viii)    deliver to Parent all third party consents, assignments, waivers and approvals, as applicable, in satisfaction of the conditions set forth in Article VII.  
		

		
			(b)       Deliveries by Parent. At Closing, Parent shall: 
		

		
			(i)       pay to the Seller the Adjusted Estimated Purchase Price in accordance with Section 2.1(a)(iv);  
		

		
			(ii)      pay to the Escrow Agent the Escrow Amount in accordance with Section 2.3;  
		

		
			(iii)     pay to the Bank Lender the amount provided for in Section 2.1(a)(v);  
		

		
			(iv)     deliver to the Seller and the Escrow Agent a duly executed signature page to the Escrow Agreement; and 
		

		
			(v)      deliver to the Seller a certificate in satisfaction of the condition set forth in Section 7.3(c).  
		

		
			ARTICLE II
		

		
			Purchase Price
		

		
			Section 2.1.       Purchase Price.   In consideration of the sale of the Interests to Parent, Parent shall pay or deliver to the Seller the “Purchase Price,” which shall be a cash payment equal to Seventy Two Million Five Hundred Thousand Dollars ($72,500,000) (the “Base Amount”), plus (i) the amount by which the Closing Date Net Working Capital exceeds the Closing Date Net Working Capital Target, if applicable, minus (ii) the amount by which the Closing Date Net Working Capital Target exceeds the Closing Date Net Working Capital, if applicable, minus, (iii) the Closing Date Indebtedness, minus (iv) the Transaction Expenses and (v) if the Closing Date is a day other than the first business day of a month, plus or minus the Gap Period Pre-Tax Net Income (Loss), as adjusted pursuant to Section 2.2.
		

		
			(a)       Closing Payments.  
		

		
			(i)       Not less than two (2) business days prior to the Closing, the Company shall deliver to Parent a reasonably detailed statement (based on the balance sheet and other financial statements of the Company and its Subsidiaries as of October 31, 2016, plus all known changes and adjustments occurring since October 31, 2016) setting forth the Company’s good faith estimates of (i) the Closing Date Net Working Capital (“Estimated Closing Date Net Working Capital”), and (ii) the Transaction Expenses (the “Estimated Transaction Expenses”). 
		

		
			(ii)      Such statement (the “Estimated Closing Statement”) also shall set forth the amount of the Closing Date Indebtedness, if applicable. The Estimated Closing Statement shall be certified by the Seller and shall be accompanied by such supporting documentation as Parent shall reasonably request. The Company shall make its Representatives available to Parent during the two (2) business days referenced in the 
		

		
			
		

		
			

		 

		

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			first sentence of subsection (a)(i) to respond to any questions or requests that Parent may have with respect to the Estimated Closing Statement. 
		

		
			(iii)     For purposes of this Agreement, the “Estimated Purchase Price” shall be a cash payment equal to the Base Amount, plus (i) the amount by which the Estimated Closing Date Net Working Capital exceeds the Closing Date Net Working Capital Target, if applicable, minus (ii) the amount by which the Closing Date Net Working Capital Target exceeds the Estimated Closing Date Net Working Capital, if applicable, minus (iii) the Closing Date Indebtedness, and minus (iv) the Estimated Transaction Expenses. 
		

		
			(iv)     At the Closing, Parent shall pay to the Seller, by wire transfer of immediately available funds into accounts designated in writing by the Seller not less than three (3) business days prior to the Closing Date, (i) the Estimated Purchase Price, minus (ii) the Escrow Amount (the “Adjusted Estimated Purchase Price”). 
		

		
			(v)      Subject to the receipt of customary payoff letters, to the extent the Company has not previously made such payment on or prior to the Closing, at the Closing, (i) Parent shall cause wire transfers of immediately available funds to be made to an account designated by the Bank Lender under the Loan Agreement at least two (2) Business Days prior to the Closing Date, in an amount equal to the total Indebtedness under the Loan Agreement, together with all other amounts then due and payable thereunder in connection with the termination thereof and (ii) at the direction of the Seller, Parent shall cause wire transfers of immediately available funds to be made to one or more accounts designated by the Sellers at least two (2) business days prior to the Closing Date in payment of the Transaction Expenses that are reflected on the Estimated Closing Statement (including that may be due and owing to Lazard (as defined hereinafter)).  
		

		
			Section 2.2.       Adjustments.  
		

		
			(a)       Within one hundred-twenty (120) days after the Granite Closing Date, Parent shall prepare and deliver to the Seller a statement setting forth Parent’s good faith calculations (“Parent’s Proposed Calculations”) of the Closing Date Net Working Capital, the Transaction Expenses, and Gap Period Pre-Tax Net Income (Loss) (if applicable), as well as Closing Date Net Working Capital and Gap Period Pre-Tax Net Income (Loss) under the Granite Agreement (the “Final Closing Statement”). Following the delivery of such statement, Parent’s personnel and independent accountants shall permit the Seller and its agents, representatives and accountants, subject to the execution by the Seller and its agents, representatives and accountants of any release or indemnification agreement required by Parent’s accountants, to review and make copies of all work papers, schedules and calculations used in the preparation thereof. 
		

		
			(b)       If, within thirty (30) days after its receipt of the Final Closing Statement, the Seller disputes any aspect of the Final Closing Statement or any of Parent’s Proposed Calculations, then the Seller shall, on or prior to such thirtieth (30th) day, deliver to Parent written notice of such dispute (the “Dispute Notice”). If the Seller does not deliver a Dispute Notice to Parent on or prior to such thirtieth (30th) day after its receipt of the Final Closing Statement, the Final Closing Statement delivered by Parent pursuant to Section 2.2(a) above shall be final and binding on the parties hereto and such thirtieth (30th) day shall be deemed to 
		

		
			

		 

		

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			be the “Determination Date.” Any Dispute Notice shall be accompanied by the Seller’s proposed alternative calculations (the “Seller’s Proposed Calculations”) of the Closing Date Net Working Capital and the Transaction Expenses. Parent and the Seller shall, for a period of thirty (30) days following Parent’s receipt of the Seller’s Proposed Calculations, cooperate in good faith to determine a mutually agreeable Final Closing Statement, which shall be final and binding upon the parties. The date upon which such Final Closing Statement is mutually agreed to by Parent and the Seller shall be deemed to be the “Determination Date.” If no such agreement is reached within such thirty (30) day period, then within fifteen (15) days of the expiration of such period, the Seller and Parent shall select a mutually acceptable and nationally recognized independent accounting firm, other than the Company’s independent accountants and Parent’s independent accountants (such firm, the “Independent Accounting Firm”) to resolve the remaining disputed items (the “Remaining Disputed Items”), within thirty (30) days of its appointment, by (x) conducting its own review and test of the Final Closing Statement and thereafter selecting either Parent’s Proposed Calculations of the Remaining Disputed Items or the Seller’s Proposed Calculations of the Remaining Disputed Items or an amount in between the two and (y) delivering to Parent and the Seller a revised Final Closing Statement reflecting the Independent Accounting Firm’s final determination of the Remaining Disputed Items pursuant to clause (x), which Final Closing Statement shall be final and binding upon the parties hereto. The date on which the Independent Accounting Firm delivers such Final Closing Statement shall be deemed to be the “Determination Date.” The fees and expenses of the Independent Accounting Firm shall be borne by the Seller and Parent in the proportion that the aggregate dollar amount of items submitted to the Independent Accounting Firm that are unsuccessfully disputed bears to the aggregate amount of all items submitted to the Independent Accounting Firm. The parties will submit such materials and respond to such questions as requested by the Independent Accounting Firm. The Independent Accounting Firm’s report will be based (to the extent the Independent Accounting Firm considers it appropriate) on such information and on the accounting and other records of the Company. The Independent Accounting Firm’s award will consist solely of an award with respect to the Remaining Disputed Items and will not include any other finding or award. 
		

		
			(c)       The “Adjustment Amount,” which may be positive or negative, shall mean (i) the difference determined by the Closing Date Net Working Capital (as finally determined pursuant to Section 2.2(b) above), minus the Estimated Closing Date Net Working Capital, minus (ii) the difference determined by the Transaction Expenses (as finally determined pursuant to Section 2.2(b) above) minus the Estimated Transaction Expenses plus or minus, as applicable, the Gap Period Pre-Tax Net Income (Loss) (as finally determined pursuant to Section 2.2(b) above), plus or minus, as applicable, the Granite Adjustment Amount (as defined in the Granite Agreement). 
		

		
			(d)       If the Adjustment Amount is a positive number greater than the Collar Amount, then promptly following the Determination Date, and in any event within five (5) business days of the Determination Date, Parent shall pay to the Seller, by wire transfer of immediately available funds into an account designated in writing by the Seller not less than three (3) business days prior to such date, an amount equal to the Adjustment Amount. If the Adjustment Amount is a positive number equal to or less than the Collar Amount, then no payment shall be required under this Section 2.2.  
		

		
			(e)       If the Adjustment Amount is a negative number with an absolute value greater than the Collar Amount, then promptly following the Determination Date, and in any 
		

		
			

		 

		

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			event within five (5) business days of the Determination Date, Parent and the Seller shall execute joint written instructions to the Escrow Agent instructing the Escrow Agent to pay to Parent out of the Escrow Fund, first from the Working Capital Escrow Amount and then, to the extent necessary, from the Indemnity Escrow Amount, an amount equal to the absolute value of the Adjustment Amount. If the Adjustment Amount is a negative number with an absolute value equal to or less than the Collar Amount, then no payment shall be required under this Section 2.2.  
		

		
			(f)       During the first ten (10) months following the Closing Date, Parent shall use its reasonable best efforts to collect the pharmaceutical manufacturer rebate receivables of the Company and its Subsidiaries that existed on the Closing Date and the customer accounts receivable of the Company and its Subsidiaries that existed on the Closing Date. As soon as practicable, or in any event within thirty (30) days, after the beginning of the eleventh (11th) month following the Closing Date, Parent shall re-calculate the Closing Date Net Working Capital, taking into account only post-Closing events through and including the end of the tenth (10th) month following the Closing Date as they relate to pharmaceutical manufacturer rebate receivables that existed on the Closing Date, customer accounts receivable that existed on the Closing Date and the aggregate allowance for doubtful accounts with respect thereto (the “ReCalculated Closing Date Net Working Capital”). The Seller shall cooperate with Parent in determining a mutually agreeable figure for the Re-Calculated Closing Date Net Working Capital. In the event of a disagreement between Parent and the Seller with respect to the ReCalculated Closing Date Net Working Capital that is not resolved within thirty (30) days of the beginning of the eleventh (11th) month following the Closing Date, the Independent Accounting Firm shall be appointed to resolve such disagreement in accordance with the provisions of Section 2.2(b) hereof within thirty (30) days of its appointment, and the Independent Accounting Firm’s determination of the Re-Calculated Closing Date Net Working Capital shall be final and binding on the parties. The date on which the Re-Calculated Closing Date Net Working Capital is finally determined in accordance with this Section 2.2(f) shall be referred to herein as the “Final Re-Calculation Date.” The “Re-Calculated Net Working Capital Adjustment Amount,” which may be positive or negative, shall be an amount equal to (i) the Re-Calculated Closing Date Net Working Capital (as finally determined pursuant to this Section 2.2(f)) minus (ii) the Closing Date Net Working Capital (as finally determined pursuant to Section 2.2(b)). 
		

		
			(g)      If the Re-Calculated Net Working Capital Adjustment Amount is a positive number greater than the Collar Amount, then promptly following the Final ReCalculation Date, and in any event within five (5) business days of the Final Re-Calculation Date, Parent shall pay to the Seller, by wire transfer of immediately available funds into an account designated by the Seller not less than three (3) business days prior to such date, an amount equal to the Re-Calculated Net Working Capital Adjustment Amount. If the ReCalculated Net Working Capital Adjustment Amount is a negative number (with an absolute value greater than the Collar Amount), then promptly following the Final Re-Calculation Date, and in any event within five (5) business days of the Final Re-Calculation Date, Parent and the Seller shall execute joint written instructions to the Escrow Agent instructing the Escrow Agent to pay to Parent out of the Escrow Fund, first from the Working Capital Escrow Amount and then, to the extent necessary, from the Indemnity Escrow Amount, an amount equal to the absolute value of the Re-Calculated Net Working Capital Adjustment Amount.
		

		
			(h)      The Working Capital Escrow Amount shall serve as security for any negative Adjustment Amount or negative Re-Calculated Net Working Capital Adjustment 
		

		
			
		

		
			

		 

		

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			Amount. In the event less than all of the Working Capital Escrow Amount is paid or owed to Parent pursuant to Section 2.2(e) and the last sentence of Section 2.2(g), then Parent and the Seller shall execute joint written instructions to the Escrow Agent instructing the Escrow Agent to release to the Seller, promptly following the Final Re-Calculation Date, and in any event within five (5) business days of the Final Re-Calculation Date, an amount equal to the Working Capital Escrow Amount minus the negative Adjustment Amount, if any, and minus the negative Re-Calculated Net Working Capital Adjustment Amount, if any.  
		

		
			Section 2.3.       Escrow.  
		

		
			(a)       Escrow Fund. On the Closing Date, Parent shall pay a portion of the Estimated Purchase Price equal to the Escrow Amount to Wells Fargo Bank, National Association, as escrow agent of the parties hereto (the “Escrow Agent”), to be held in escrow. Such escrowed funds shall be held and invested by the Escrow Agent in accordance with the terms of this Agreement and an Escrow Agreement substantially in the form attached hereto as Exhibit 2.3 (the “Escrow Agreement”).  
		

		
			(b)       Investment of Escrow Amount.  The Escrow Amount shall be invested by the Escrow Agent as set forth in the Escrow Agreement, pending payment thereof to the Seller (as applicable). Earnings from investment of the Escrow Amount shall be allocated as set forth in the Escrow Agreement. 
		

		
			Section 2.4.       Withholding.   Parent acknowledges that it does not intend, based on applicable legal requirements as of the date of this Agreement, to withhold Taxes from any consideration payable pursuant to this Agreement. Notwithstanding the foregoing, each of Parent and the Escrow Agent shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement to the Seller such amounts as it reasonably determines that it is required to deduct and withhold under the Code or any provision of federal, state, local or foreign Tax Law with respect to the making of such payment. If Parent becomes aware of any tax withholding requirement which shall become applicable to any payment of consideration hereunder, it shall give notice of the same to the Seller. To the extent that amounts are so withheld and are paid over to the applicable Governmental Authority or other designated recipient, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Seller. 
		

		
			Section 2.5.       Purchase Price Allocation.  
		

		
			(a)       For United States federal, state and local income tax purposes, the Seller and Parent agree that the sale of the Interests shall be treated as a deemed purchase of all of the assets of the Company. 
		

		
			(b)       The Purchase Price payable (plus any additional amounts treated as consideration for the Interests under Treasury Regulations Section 1.1060-1(c), including, where applicable, the Closing Date Indebtedness, the “Allocable Purchase Price”) shall be allocated among the assets of the Company and its Subsidiaries.  Such allocation shall be made in accordance with the requirements of Section 1060 of the Code and the Treasury Regulations thereunder and in any event in accordance with the valuation principles set forth in Exhibit 2.5(b) (the “Allocation Principles”).
		

		
			

		 

		

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			(c)       No later than thirty (30) days after the Determination Date, Parent shall prepare and deliver to the Seller its determination of the allocation of the Allocable Purchase Price (to the extent payable as of the Closing) pursuant to Section 2.5(b) (“Allocation Schedule”), which shall be prepared in accordance with the Allocation Principles and shall be final, binding and conclusive on the parties hereto; provided, however, if, within thirty (30) days following the delivery of the Allocation Schedule, the Seller notifies Parent in writing that the Seller disputes any allocation in the Allocation Schedule, including but not limited to an allocation to any item of property described in Section 751(a) of the Code (a “Hot Asset”) in excess of such Hot Asset’s book value, Parent and the Seller shall cooperate in good faith to resolve such dispute.  Should Parent and the Seller fail to reach an agreement within thirty (30) days after the Seller notifies Parent of such dispute, the determination of the disputed item or items shall be made by the Independent Accounting Firm.  The Independent Accounting Firm shall make its determination in accordance with the principles and requirements of this Section 2.5.  Neither Parent nor the Seller shall take any position (whether in connection with audits, Tax Returns or otherwise) that is inconsistent with this Section 2.5 and the Allocation Schedule, except as may be required pursuant to a “determination” within the meaning of Section 1313(a) of the Code (or similar provision of state, local or foreign Tax law). 
		

		
			(d)       In the event that there is any adjustment to the Allocable Purchase Price, Parent shall revise the Allocation Schedule to reflect any such adjustment using the same methodology as used in the preparation of the initial Allocation Schedule, consistent with the principles set forth in this Section 2.5 and shall promptly deliver such revised Allocation Schedule to the Seller. 
		

		
			ARTICLE III
		

		
			Representations and Warranties of the Seller
		

		
			The Seller hereby represents and warrants to Parent as follows, except as set forth in the Company Disclosure Schedules: 
		

		
			Section 3.1.       Authority; Noncontravention.
		

		
			(a)       The Seller has all necessary power and authority to execute and deliver this Agreement and to perform its obligations hereunder and to consummate the Sale and the other Transactions. This Agreement has been duly executed and delivered by the Seller and, assuming due authorization, execution and delivery hereof by Parent, constitutes a legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except that such enforceability (i) may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar laws of general application affecting or relating to the enforcement of creditors’ rights generally and (ii) is subject to general principles of equity, whether considered in a proceeding at law or in equity (the “Bankruptcy and Equity Exception”). No other action on the part of the Seller is necessary to authorize the execution, delivery and performance by the Seller of this Agreement and the consummation by it of the Sale and the other Transactions.  
		

		
			(b)       Neither the execution and delivery of this Agreement by the Seller nor the consummation by the Seller of the Sale and the other Transactions, nor compliance by the Seller with any of the terms or provisions hereof, will (i) violate any Law, judgment, writ, injunction or Permit of any Governmental Authority or any arbitration award applicable to the Seller or any of 
		

		
			

		 

		

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			its properties or assets, or (ii) violate, conflict with, result in the loss of any benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation of, accelerate the performance required by, or result in the creation of any Lien upon any of the respective properties or assets of the Seller under, any of the terms, conditions or provisions of any loan or credit agreement, debenture, note, bond, mortgage, indenture, deed of trust, license, lease, insurance policy, contract or other agreement, instrument or obligation (each, a “Contract”) or Permit, to which the Seller is a party, or by which it or any of its properties or assets may be bound or affected. Without limiting the generality of the immediately preceding sentence, the Seller does not have any unsatisfied obligation under any Contract to notify any Person of the Seller entering into, or having intended to enter into, this Agreement before doing so or to negotiate with any Person regarding a possible alternative to the Transactions. 
		

		
			Section 3.2.       Governmental Approvals.   Except for as described on Section 3.2 of the Company Disclosure Schedules, no consents or approvals of, or filings, declarations or registrations with, any Governmental Authority (each, a “Governmental Approval”) are necessary for the execution, delivery and performance of this Agreement by the Seller and the consummation by the Seller of the Sale and the other Transactions. 
		

		
			Section 3.3.       The Interests.   The Seller has good and valid title to the Interests, free and clear of all Liens, except Liens on transfer imposed under applicable securities Laws. Assuming Parent has the requisite power and authority to be the lawful owner of the Interests, upon execution and delivery to Parent at the Closing of an assignment of Interests, and upon receipt of the Adjusted Estimated Purchase Price payable to the Seller pursuant to this Agreement, good and valid title to the Interests will pass to Parent, free and clear of any Liens, other than Liens on transfer imposed under applicable securities Laws. 
		

		
			Section 3.4.       Litigation.   There are no Legal Actions pending or, to the Knowledge of the Seller, threatened against the Seller, before any Governmental Authority which seek to prevent, enjoin or otherwise delay the consummation of the Sale or the other Transactions. 
		

		
			Section 3.5.       Brokers and Other Advisors.   Except for Lazard Middle Market LLC (“Lazard”), no broker, investment banker, financial advisor or other Person is or will be entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission, or the reimbursement of expenses or indemnification or contribution, in connection with the Transactions based upon arrangements made by or on behalf of the Seller. At or prior to the Closing, all amounts payable to Lazard in connection with the Transactions will be paid in full by the Seller, the Company, or a Subsidiary of the Company, or as part of the Transaction Expenses payable pursuant to Section 2.1.  
		

		
			ARTICLE IV
		

		
			Representations and Warranties of the Company
		

		
			The Company represents and warrants to Parent that, except as set forth in the disclosure schedules (with specific reference to the Section or subsection of this Agreement to which the information stated in such disclosure relates, subject to Section 10.13) delivered by the Company to Parent simultaneously with the execution of this Agreement (the “Company Disclosure Schedules”) and, to the extent applicable, any Supplemental Disclosure Schedule: 
		

		
			

		 

		

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			Section 4.1.       Organization, Power, Standing and Qualification.  The Company is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Utah, and has the requisite power and authority to conduct its business as it is now being conducted and to own, lease and operate the assets now owned, leased and operated by it. The Company has delivered to Parent complete and correct copies of its certificate of organization and the Company’s operating agreement, each as in effect on the date hereof (collectively, the “Company Organizational Documents”). The Company is duly qualified to do business and in good standing in each jurisdiction where the conduct of its business or the ownership or operation of its assets requires such qualification, except in such jurisdictions where the failure to be so duly qualified or licensed or be in good standing, individually or in the aggregate, would not reasonably be expected to be adverse in a material respect to the Company. The Company Organizational Documents are in full force and effect and the Company is not in default under or in violation of any of the provisions of the Company Organizational Documents. The Company has made available to Parent and its Representatives correct and complete copies of the minutes (or, in the case of minutes that have not yet been finalized, drafts thereof) of all meetings, consents or actions of the members and the Managers of the Company held (for which minutes were taken), given or taken since January 1, 2014. 
		

		
			Section 4.2.       Subsidiaries.
		

		
			(a)       Section 4.2 of the Company Disclosure Schedules sets forth (i) the name of each of the Company’s Subsidiaries, (ii) a list of all holders of an equity interest in each such Subsidiary other than the Company or another Subsidiary and the amounts thereof and (iii) the jurisdiction of organization of each such Subsidiary. Other than as set forth in Section 4.2 of the Company Disclosure Schedules, the Company does not have any Subsidiaries and does not own, directly or indirectly, any equity interests in any Person. The Company is not, directly or indirectly, a participant in any joint venture, partnership, limited liability company or similar arrangement. 
		

		
			(b)       The Company has delivered to Parent complete and accurate copies of the charter, bylaws or other organizational documents of each of its Subsidiaries (the “Subsidiary Documents”). The Subsidiary Documents are in full force and effect and none of the Company’s Subsidiaries is in default under or in violation of any provision of its Subsidiary Documents. Each of the Company’s Subsidiaries is a corporation, partnership or other entity duly organized, validly existing and in good standing under the Laws of the jurisdiction of its organization, and has the requisite corporate or entity power and authority to conduct its business as it is now being conducted and to own, lease and operate the assets now owned, leased and operated by it. Each of the Company’s Subsidiaries is duly qualified to do business and in good standing in each jurisdiction where the conduct of its business or the ownership, lease or operation of its assets requires such qualification except in such jurisdictions where the failure to be so duly qualified or licensed or be in good standing, individually or in the aggregate, would not reasonably be expected to be adverse in a material respect to such Subsidiary. 
		

		
			(c)       The outstanding shares of capital stock, membership or other equity interests of each of the Company’s Subsidiaries are validly issued, fully paid and non-assessable and were not issued in violation of any purchase or call option, right of first refusal, subscription right, preemptive right or any similar right. All such shares or other equity interests represented as being owned by the Company or any of its Subsidiaries are owned by them, free and clear of any and all Liens, other than Liens on transfer imposed under applicable securities Laws. There 
		

		
			
		

		
			

		 

		

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			is no existing option, warrant, call, right or contract to which any of the Company’s Subsidiaries is a party requiring, and there are no convertible securities of any of the Company’s Subsidiaries outstanding which upon conversion would require, the issuance, redemption, disposition or acquisition of any shares of capital stock, membership interests or other securities of any of the Company’s Subsidiaries or other securities convertible into shares of capital stock, membership interests or other securities (including debt and equity securities) of any of the Company’s Subsidiaries. None of the Company, any of its Subsidiaries or any of their respective members or stockholders is party to, or otherwise bound by, any agreement affecting the voting of the capital stock, membership interests or other securities of any of the Company’s Subsidiaries. 
		

		
			Section 4.3.       Capitalization.  The Interests represent all of the outstanding equity interests of the Company. All of the Interests (x) have been duly authorized and validly issued, (y) were not issued in violation of any purchase or call option, right of first refusal, subscription right, preemptive right or any similar rights and (z) were issued in compliance with applicable state and federal securities laws. There are no outstanding rights, options, warrants, convertible securities, subscription rights, conversion rights, exchange rights or other agreements that require or would require the Company to issue, sell or transfer any equity interests in the Company, including the Interests. 
		

		
			Section 4.4.       Authority; Noncontravention; Voting Requirements.   
		

		
			(a)       The Company has all necessary power and authority to execute and deliver this Agreement and to perform its respective obligations hereunder. The execution, delivery and performance by the Company of this Agreement have been duly authorized and approved by all necessary action on the part of the Company, and any vote, approval or consent required to be received or obtained in connection therewith from the holders of any equity interests in the Company (the “Requisite Approval”) has been received or obtained, or will be received or obtained immediately after the execution of this Agreement, and in each case, will be delivered to Parent concurrently with the execution of this Agreement. The Requisite Approval includes any vote, consent or approval required under the Company’s Organizational Documents in connection with the execution, delivery and performance of this Agreement. The Requisite Approval remains in full force and effect. No other action on the part of the Company is necessary to authorize the execution, delivery and performance by the Company, of this Agreement. This Agreement has been duly executed and delivered by the Company and, assuming due authorization, execution and delivery hereof by the other parties hereto, constitutes a legal, valid and binding obligation of each of the Company, enforceable against the Company, in accordance with its terms, subject to the Bankruptcy and Equity Exception. 
		

		
			(b)       Neither the execution and delivery of this Agreement by the Company, nor compliance by the Company with any of the terms or provisions hereof, will (i) conflict with or violate any provision of the Company Organizational Documents or (ii) assuming that the authorizations, consents and approvals referred to in Section 4.5 are obtained and the filings referred to in Section 4.5 are made, violate any Law, judgment, writ, injunction or Permit of any Governmental Authority or any arbitration award applicable to the Company, or any of its respective properties or assets, or (iii) assuming that the authorizations, consents and approvals described in Section 4.4(b) of the Company Disclosure Schedules are obtained and the filings disclosed in said Schedule are made, violate, conflict with, result in the loss of any benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation of, accelerate 
		

		
			
		

		
			

		 

		

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			the performance required by, or result in the creation of any Lien upon any of the properties or assets of the Company, under, any of the terms, conditions or provisions of any Contract or Permit to which the Company is a party, or by which they or any of their respective properties or assets may be bound or affected. Without limiting the generality of the immediately preceding sentence, the Company does not have any unsatisfied obligation under any Contract to notify any Person of the Company’s entering into, or having intended to enter into, this Agreement before doing so or to negotiate with any Person regarding a possible alternative to the Transactions. 
		

		
			Section 4.5.       Governmental Approvals.  Except for as described on Section 4.5 of the Company Disclosure Schedules, no Governmental Approvals are necessary for the execution, delivery and performance of this Agreement by the Company. 
		

		
			Section 4.6.       Financial Statements and Controls.
		

		
			(a)       The Company has delivered or otherwise made available to Parent copies of (i) the audited consolidated balance sheet of the Company and its Subsidiaries as of December 31, 2015 and the audited statements of income and cash flows for the period from June 19, 2015 to December 31, 2015, and related audit report of Larson & Company P.C. and (ii) the unaudited consolidated balance sheet of the Company and its Subsidiaries as of June 30, 2016 and the related unaudited statements of income and cash flows for the six (6) month period then ended (such audited and unaudited statements, including any related notes and schedules thereto, are referred to herein as the “Financial Statements”). Each of the Financial Statements has been prepared in accordance with GAAP consistently applied without modification of the accounting principles used in the preparation thereof throughout the periods presented (except as noted therein) and presents fairly in all material respects the financial position, results of operations and cash flows of the Company and its Subsidiaries as of the dates and for the periods indicated therein subject in the case of the unaudited statements to the absence of footnotes and other supplemental information that would be required by GAAP and to normal year-end audit adjustments. The unaudited consolidated balance sheet of the Company and its Subsidiaries as of June 30, 2016 is referred to herein as the “Balance Sheet” and June 30, 2016 is referred to herein as the “Balance Sheet Date.” 
		

		
			(b)       All books, records and accounts of the Company and its Subsidiaries are accurate and complete, in all material respects, and are maintained in all material respects in accordance with good business practice and all applicable Laws. Each of the Company and its Subsidiaries maintain systems of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; and (ii) transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP and to maintain accountability for assets.  
		

		
			Section 4.7.       No Undisclosed Liabilities.   
		

		
			(a)       Neither the Company nor any of its Subsidiaries has any Indebtedness or other Liabilities other than those (i) reflected on or reserved against in the Balance Sheet or, if not required under GAAP to be reflected on a balance sheet, disclosed in the notes thereto or pursuant to another representation or warranty of the Company contained in this Article or the Company Disclosure Schedules, including but not limited to Section 4.7(a) of the Company Disclosure Schedules, (ii) incurred after the Balance Sheet Date in the ordinary course of 
		

		
			

		 

		

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			business consistent with past practice, or (iii) incurred in connection with the execution of this Agreement or the performance of their respective obligations hereunder. 
		

		
			(b)       Neither the Company nor any of its Subsidiaries is a party to, and has no commitment to become a party to, any joint venture, off-balance sheet partnership or any similar Contract (including any Contract or arrangement relating to any transaction or relationship between or among the Company or any of its Subsidiaries, on the one hand, and any unconsolidated Affiliate, including any structured finance, special purpose or limited purpose entity or Person, on the other hand, or any “off-balance sheet arrangements” (as defined in Item 303(a) of Regulation S-K of the SEC), where the result, purpose or effect of such Contract is to avoid disclosure of any transaction involving, or liabilities of, the Company or any of its Subsidiaries in the Financial Statements. 
		

		
			Section 4.8.       Absence of Certain Changes or Events.  Since the Balance Sheet Date there have not been any events, changes in circumstances, developments or states of facts that, individually or in the aggregate, have had or would reasonably be expected to have a material adverse impact, effect or consequence on or with respect to the Company.  Since the Balance Sheet Date (a) except as specifically contemplated or permitted by this Agreement, each of the Company and its Subsidiaries have carried on and operated their businesses in the ordinary course of business consistent with past practice and (b) neither the Company nor any of its Subsidiaries have taken any action described in Section 6.1 hereof (other than Sections 6.1(b),  (n),  (q) or (r), or clause (i) of Section 6.1(s)) that if taken after the date hereof and prior to the Closing without the prior written consent of Parent would violate such provision. Without limiting the foregoing, since the Balance Sheet Date there has not occurred any damage, destruction or loss (whether or not covered by insurance) of any material asset of the Company or any of its Subsidiaries which materially affects the use thereof.  
		

		
			Section 4.9.       Legal Proceedings.  There is no pending or, to the Knowledge of the Company, threatened, Legal Action against, or governmental or regulatory inquiry or, to the Knowledge of the Company, investigation of, or healthcare regulatory review proceedings involving, the Company or any of its Subsidiaries, nor is there any injunction, order, writ, judgment, ruling, sanction, award or decree imposed (or, to the Knowledge of the Company, threatened to be imposed) upon the Company or any of its Subsidiaries or the assets of the Company or any of its Subsidiaries by or before any Governmental Authority or arbitrator, including any of the foregoing that challenges any of the Transactions. 
		

		
			Section 4.10. Compliance With Laws.  Each of the Company and its Subsidiaries are (and in the last three (3) years have been) in compliance in all material respects with all Laws applicable to the Company, and each such Subsidiary, respectively, any of their properties or other assets or any of their businesses or operations. Since their commencement of business to the date hereof, each of the Company and its Subsidiaries has not (i) been charged with the violation of any Laws or (ii) received written notice to the effect that a Governmental Authority claimed or alleged that the Company was not in compliance with all Laws applicable to the Company or any of its Subsidiaries, any of their respective properties or other assets or any of their respective business or operations. The foregoing provisions of this Section 4.10 do not apply to Health Care Regulatory Compliance matters to the extent covered by Section 4.19.  
		

		
			
		

		
			

		 

		

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			Section 4.11. Taxes.
		

		
			(a)       All Tax Returns required to be filed by the Company or any of its Subsidiaries or the Seller with respect to the income, assets, operations or business of the Company or its Subsidiaries, respectively, have been timely filed (taking into account any extension of time to file), and all such Tax Returns are true correct and complete in all material respects.  All material Taxes of the Company, its Subsidiaries and the Seller with respect to the income, assets, operations or business of the Company and its Subsidiaries that are due and payable have been fully and timely paid. The Company and its Subsidiaries have complied with all applicable Laws relating to the payment and withholding of Taxes (including withholding of Taxes pursuant to Sections 1441, 1442, 1445 and 1446 of the Code or similar provisions under any foreign law), and have timely withheld and paid over to the appropriate Taxing Authority all amounts required to be so withheld and paid under all applicable Laws. 
		

		
			(b)       Neither the Company nor any of its Subsidiaries has ever been a member of an affiliated group of corporations within the meaning of Section 1504 of the Code (or any similar provision of Law). 
		

		
			(c)       Neither the Company nor any of its Subsidiaries has any outstanding agreements, waivers, or arrangements extending the statutory period of limitations applicable to any claim for, or the period for the collection or assessment of Taxes or the filing of any Tax Return (other than waivers arising solely as a result of automatic extensions of time to file Tax Returns that do not require the affirmative consent of the applicable Taxing Authority).  No claim has been made by a Taxing Authority in a jurisdiction where the Company or any of its Subsidiaries does not file Tax Returns that the Company or any of its Subsidiaries is or may be subject to taxation in that jurisdiction.  No Liens for Taxes exist with respect to any assets or properties of the Company or any of its Subsidiaries, except for Liens for Taxes not yet due and for which adequate reserves have been posted on the Balance Sheet in accordance with GAAP. 
		

		
			(d)       No Tax Return of the Company or any of its Subsidiaries or the Seller with respect to the income, assets, operations or business of the Company or its Subsidiaries, respectively, has ever been examined.  No audit or other administrative or court proceedings are pending with any Taxing Authority with respect to Taxes of the Company or any of its Subsidiaries or the Seller with respect to the income, assets, operations or business of the Company or its Subsidiaries, respectively. No notice of any audit or other administrative or court proceeding and no notice of any deficiency or proposed Tax adjustment has been received by the Company, any of its Subsidiaries, the Seller or, to the Knowledge of the Company, any other Person with respect to the income, assets, operations or business of the Company or its Subsidiaries, respectively. 
		

		
			(e)       Each of Company and its Subsidiaries has made available to Parent correct and complete copies of (i) all income and other material Tax Returns of the Company and its Subsidiaries for the preceding three taxable years and (ii) any audit report issued within the last three years (or otherwise with respect to any audit or proceeding in progress) relating to Taxes of the Company and its Subsidiaries.  Section 4.11(e) of the Company Disclosure Schedules lists each jurisdiction in which the Company and each of its Subsidiaries is required to file a Tax Return.   
		

		
			(f)       Neither the Company nor any of its Subsidiaries is a party to any tax sharing, allocation, indemnity or similar agreement or arrangement (whether or not written) pursuant to which such entity will have any obligation to make any payments after the Closing,
		

		
			

		 

		

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			other than commercial contracts with suppliers and customers entered into in the ordinary course of business that allocate responsibility for transactional taxes other than income taxes, such as sales tax, value added tax or property tax (a “Tax Sharing Agreement”). 
		

		
			(g)      Neither the Company nor any of its Subsidiaries is the subject of any private letter ruling of the Internal Revenue Service or comparable rulings of other Taxing Authorities. 
		

		
			(h)      Neither the Company nor any of its Subsidiaries has engaged in a trade or business in any country outside the United States, has a permanent establishment in any country other than the United States, or has engaged in any transaction subject to Tax in a jurisdiction outside the United States.  None of the Company, any of its Subsidiaries or the Seller (solely as a result of the income, assets, operations or business of the Company and its Subsidiaries) is subject to Tax in a jurisdiction outside the United States. 
		

		
			(i)       Neither the Company nor any of its Subsidiaries is, has ever been or up to and including the Closing Date will be (i) an “insurance company” as such term in defined in Section 816(a) of the Code, or (ii) liable for any U.S. federal, state or local taxes specifically assessable on insurance premiums.   
		

		
			(j)       Neither the Company nor any of its Subsidiaries has engaged in any “reportable transactions” as defined in Treasury Regulation Section 1.6011-4(b). 
		

		
			(k)      Since its inception, the Company and each of its Subsidiaries has been, and at all times up to and including the Closing Date will be, properly characterized as either a partnership or disregarded entity under Treasury Regulation Section 301.7701-3 for United States federal, state and local income tax purposes.  Neither the Company nor any of its Subsidiaries has filed, and will not at any time up to and including the Closing Date file, an entity classification election pursuant to Treasury Regulation Section 301.7701-3(c) to be classified as an association taxable as a corporation. 
		

		
			(l)       For purposes of this Agreement: (x) “Taxes” shall mean (A) all federal, state, local or foreign taxes, charges, fees (including, for the avoidance of doubt, the health insurer fee imposed under section 9010 of the Patient Protection and Affordable Care Act of 2010), imposts, levies or other assessments imposed by any Governmental Authority, including all net income, gross receipts, capital, sales, use, ad valorem, value added, premium, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment, social security, unemployment, excise, escheats, severance, stamp, occupation, property and estimated taxes, customs duties, fees, assessments and charges of any kind whatsoever, (B) all interest, penalties, fines, additions to tax or additional amounts imposed by any Governmental Authority in connection with any item described in clause (A), and (C) any liability in respect of any items described in clauses (A) or (B) payable by reason of Contract, assumption, successor or transferee liability, operation of Law, Treasury Regulation Section 1.1502-6(a) (or any similar provision of Law) or otherwise, and (y) “Tax Returns” shall mean any return, report, claim for refund, estimate, information return or statement or other similar document required to be filed or actually filed with any Governmental Authority with respect to Taxes, including any schedule or attachment thereto, and including any amendment thereof (including, for the avoidance of doubt, any Schedule K-1 issued by the Seller).
		

		
			
		

		
			

		 

		

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			Section 4.12. Employee Benefits and Labor Matters.
		

		
			(a)       Section 4.12(a) of the Company Disclosure Schedules sets forth all material Company Plans. “Company Plans” means all “employee benefit plans” (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), whether or not subject to ERISA) and all other employee benefit plans, policies, agreements, programs, arrangements or practices, including, bonus, employment, consulting or other compensation, incentive, retention, equity or equity-based compensation, deferred compensation, change in control, termination or severance, stock purchase, severance pay, sick leave, vacation, disability, hospitalization, health or other welfare, life insurance, pension, retirement, profit sharing and scholarship plans, policies, agreements, programs, arrangements and practices sponsored or maintained by the Company or to which the Company contributes or is obligated to contribute thereunder for current or former Managers, directors, officers, employees, contractors or agents of the Company or to which the Company has any current or contingent liability, other than ordinary employment and consulting arrangements entered into in the ordinary course of business. None of the Company or any trade or business (whether or not incorporated) which is or has ever been under common control, or which is or has ever been treated as a single employer, with the Company under Section 414(b), (c), (m) or (o) of the Code (“ERISA Affiliate”) has in the last six (6) years contributed, or been obligated to contribute, to any “employee pension plans,” as defined in Section 3(2) of ERISA, subject to Title IV of ERISA or Section 412 of the Code, including a “multiemployer plan,” as defined in Section 3(37) of ERISA. None of the Company Plans provide for post-employment life or health insurance, benefits or coverage for any participant or any beneficiary of a participant, except as may be required under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and at the expense of the participant or the participant’s beneficiary. 
		

		
			(b)       True, correct and complete copies of the following documents, with respect to each of the Company Plans, have been made available or delivered to Parent by the Company to the extent applicable: (i) any plans, all amendments thereto and related trust documents, insurance contracts or other funding arrangements, and amendments thereto; (ii) the most recent Forms 5500 and all schedules thereto, (iii) the most recent actuarial report, if any; (iv) the most recent IRS determination letter or opinion letter, as applicable; (v) the most recent summary plan descriptions; and (vi) written summaries of all non-written Company Plans. 
		

		
			(c)       Each Company Plan has been maintained in all material respects in accordance with its terms and with all applicable provisions of ERISA, the Code and other Laws, and neither the Company nor any “party in interest” or “disqualified person” with respect to the Company Plans has engaged in a non-exempt “prohibited transaction” within the meaning of Section 4975 of the Code or Section 406 of ERISA. Neither the Company, nor to the Knowledge of the Company, any other fiduciary has any liability for breach of fiduciary duty or any other failure to act or comply in connection with the administration or investment of the assets of any Company Plan.  
		

		
			(d)       Each Company Plan providing for deferred compensation that constitutes a “nonqualified deferred compensation plan” (as defined in Section 409A(d)(1) of the Code and applicable Treasury Regulations thereunder) for any service provider to the Company is in documentary and operational compliance in all material respects with the requirements of Section 409A of the Code and the Treasury Regulations promulgated thereunder.
		

		
			

		 

		

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			(e)       The Company Plans intended to qualify under Section 401 of the Code or other tax-favored treatment under of Subchapter B of Chapter 1 of Subtitle A of the Code either has received a favorable determination letter from the IRS or may rely upon a favorable prototype opinion letter from the IRS as to its qualified status, and any trusts maintained pursuant thereto are exempt from federal income taxation under Section 501 of the Code, and to the Knowledge of the Company, no fact or circumstance exists that would reasonably be expected to adversely affect the qualification of any such Company Plans or result in liability, penalty or tax under ERISA or the Code..  
		

		
			(f)       All contributions (including all employer contributions and employee salary reduction contributions) required to have been made under any of the Company Plans to any funds or trusts established thereunder or in connection therewith have been made by the due date thereof (including any valid extension), and all contributions for any period ending on or before the Closing Date which are not yet due will have been paid or accrued on the Balance Sheet on or prior to the Closing Date.  
		

		
			(g)       There are no material pending actions, claims or lawsuits which have been asserted or instituted against the Company Plans, the assets of any of the trusts under such plans or the plan sponsor or the plan administrator, or against any fiduciary of the Company Plans with respect to the operation of such plans (other than routine benefit claims), nor does the Company have any Knowledge of facts that would form the basis for any such claim or lawsuit. No event has occurred, and to the Knowledge of the Company, no condition exists that would, by reason of the Company’s affiliation with any of its ERISA Affiliates, subject the Company to any tax, fine, lien, penalty or other liability imposed by ERISA, the Code or other Laws.  
		

		
			(h)       Neither the execution and delivery of this Agreement nor the consummation of the Transactions contemplated hereby (alone or in conjunction with any other event) shall (i) result in any payment becoming due to any current or former employee, director, Manager, officer or consultant of the Company or any of its Subsidiaries, (ii) increase any compensation or benefits otherwise payable under any Company Plan or otherwise, or (iii) result in the acceleration of the time of payment, vesting or funding of any such benefits under any Company Plan or otherwise. 
		

		
			(i)       Any individual who performs services for the Company or any of its Subsidiaries (other than through a contract with an organization other than such individual) and who is not treated as an employee of the Company or any of its Subsidiaries for federal income tax or benefit plan purposes by the Company or any of its Subsidiaries is not an employee for such purposes. 
		

		
			(j)       Except as set forth on Section 4.12(a) of the Company Disclosure Schedules, (i) none of the employees of the Company or any of its Subsidiaries is represented in his or her capacity as an employee of the Company or any of its Subsidiaries by any labor organization, (ii) the Company and its Subsidiaries have not recognized any labor organization, nor has any labor organization been elected as the collective bargaining agent of any employees, nor has the Company or any of its Subsidiaries entered into any collective bargaining agreement or union contract recognizing any labor organization as the bargaining agent of any employees; (iii) there is no union organization activity involving any of the employees of the Company or any of its 
		

		
			
		

		
			

		 

		

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			Subsidiaries pending or, to the Knowledge of the Company, threatened, nor has there ever been union representation involving any of the employees of the Company or any of its Subsidiaries; (iv) there is no picketing pending or, to the Knowledge of the Company, threatened, and there are no strikes, slowdowns, work stoppages, other job actions, lockouts, arbitrations, grievances or other labor disputes involving any of the employees of the Company or any of its Subsidiaries pending or, to the Knowledge of the Company, threatened; (v) there are no complaints, charges or claims against the Company or any of its Subsidiaries pending or, to the Knowledge of the Company, threatened that could be brought or filed with any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the employment or termination of employment or failure to employ by the Company or any of its Subsidiaries, of any individual; (vi) the Company and its Subsidiaries are in material compliance with all Laws relating to the employment of labor, including all such Laws relating to wages, hours, the Fair Labor Standards Act, the Worker Adjustment and Retraining Notification Act and any similar state or local “mass layoff” or “plant closing” law (“WARN”), collective bargaining, discrimination, civil rights, safety and health, workers’ compensation and the collection and payment of withholding and/or social security taxes and any similar tax; (vii) there has been no “mass layoff” or “plant closing” as defined by WARN with respect to the Company or any of its Subsidiaries within the six (6) months prior to Closing. 
		

		
			Section 4.13. Environmental Matters.   The representations and warranties set forth in this Section 4.13 are the sole and exclusive representations in this Agreement regarding environmental matters. 
		

		
			(a)       (A) Each of the Company and its Subsidiaries is, and has been, in material compliance with all applicable Environmental Laws, (B) each of the Company and its Subsidiaries has obtained all licenses, certificates, approvals, permits, consents, waivers or other authorizations required under Environmental Laws for the conduct and operation of their businesses and is in material compliance with the terms and conditions thereof, (C) there is no suit, claim, action, proceeding or, to the Knowledge of the Company, investigation relating to or arising under Environmental Laws that is pending or, to the Knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries or, to the Knowledge of the Company, any real property formerly owned, operated or leased by the Company, (D) neither the Company nor any of its Subsidiaries has received any notice of or entered into or assumed by Contract or operation of Law or otherwise, any obligation, liability, order, settlement, judgment, injunction or decree relating to or arising under Environmental Laws, and (E) no facts, circumstances or conditions exist with respect to the Company, any of its Subsidiaries or any property currently (or, to the Knowledge of the Company, formerly) owned, operated or leased by the Company or any of its Subsidiaries or any property to or at which the Company transported or arranged for the disposal or treatment of Hazardous Materials that would reasonably be expected to result in the Company or any of its Subsidiaries incurring Environmental Liabilities. Without in any way limiting the generality of the foregoing, to the Knowledge of the Company and except as in material compliance with Environmental Laws, none of the real property currently leased by the Company or any of its Subsidiaries contains any underground storage tanks, deed restrictions or other engineering controls due to environmental conditions, underground injection wells, waste management units, or septic tanks or waste disposal pits or lagoons in which process wastewater or any Hazardous Materials have been discharged or disposed. The Company has provided to Parent copies of all existing environmental reports, reviews, assessments, surveys, claims and audits and all written information in its possession pertaining to (i) environmental conditions of the real properties and 
		

		
			

		 

		

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			operations of the Company or any of its Subsidiaries, and (ii) actual or potential Environmental Liabilities asserted against the Company or any of its Subsidiaries.  
		

		
			(b)       For purposes of this Agreement: 
		

		
			(i)       “Environmental Laws” means all Laws relating in any way to the environment, preservation or reclamation of natural resources, the presence, management or Release of, or exposure to, Hazardous Materials, or to human health and safety, including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 5101 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300f et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. § 136 et seq.), and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.) (but only as such law relates to or regulates workplace exposures to Hazardous Materials), each of their state and local counterparts or equivalents, each of their foreign and international equivalents, and any transfer of ownership notification or approval statute (including the Industrial Site Recovery Act (N.J. Stat. Ann. § 13:1K-6 et seq.), as each has been amended and the regulations promulgated pursuant thereto. 
		

		
			(ii)      “Environmental Liabilities” means, with respect to any Person, all liabilities, obligations, responsibilities, remedial actions, losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and consultants and costs of investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim or demand by any other Person or in response to any violation of Environmental Law, whether known or unknown, accrued or contingent, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute, to the extent based upon, related to, or arising under or pursuant to any Environmental Law, environmental permit, order or agreement with any Governmental Authority or other Person, which relates to any environmental, health or safety condition, violation of Environmental Law or a Release or threatened Release of Hazardous Materials. 
		

		
			(iii)     “Hazardous Materials” means any material, substance of waste that is regulated, classified, or otherwise characterized under or pursuant to any Environmental Law as “hazardous,” “toxic,” a “pollutant,” a “contaminant,” “radioactive” or words of similar meaning or effect, including petroleum and its byproducts, asbestos, polychlorinated biphenyls, radon, mold, urea formaldehyde insulation, chlorofluorocarbons and all other ozone-depleting substances. 
		

		
			(iv)     “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing of or migrating into or through the environment or any natural or man-made structure. 
		

		
			
		

		
			

		 

		

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			Section 4.14. Contracts.
		

		
			(a)       Set forth in Section 4.14(a) of the Company Disclosure Schedules is a list of each Contract of the following types or having the following terms to which the Company or any of its Subsidiaries is a party, unless otherwise provided in this Section 4.14, whether such Contract is based on a written or oral agreement, and which are in effect, or under which the Company or any of its Subsidiaries has any Liabilities, on the date hereof: 
		

		
			(i)       a Contract that purports to limit, curtail or restrict the ability of the Company, any of its existing or future Subsidiaries or Affiliates or the Seller to compete in any geographic area or line of business or restrict the Persons to whom the Company, any of its existing or future Subsidiaries or Affiliates or the Seller may sell products or deliver services; 
		

		
			(ii)      a partnership or joint venture agreement; 
		

		
			(iii)     a Contract for the acquisition, sale or lease of material properties or assets (by merger, purchase or sale of stock, membership interests, assets or otherwise); 
		

		
			(iv)     a Contract with any (x) Governmental Authority or (y) Manager director or officer of the Company, any of its Subsidiaries, or any Affiliate of the Company; 
		

		
			(v)      a loan or credit agreement, mortgage, indenture, note or other Contract or instrument evidencing Indebtedness of the Company or any of its Subsidiaries or any Contract or instrument pursuant to which Indebtedness may be incurred or is guaranteed by the Company or any of its Subsidiaries; 
		

		
			(vi)     a financial derivatives master agreement or confirmation, or futures account opening agreements and/or brokerage statements, evidencing financial hedging or similar trading activities; 
		

		
			(vii)    an agreement relating to the transfer or voting of, or providing for registration rights with respect to, member interests, shares of capital stock, security or equity interests in the Company or any of its Subsidiaries; 
		

		
			(viii)   a mortgage, pledge, security agreement, deed of trust, hypothecation, or similar Contract granting a Lien on any material property or material assets of the Company or any of its Subsidiaries, other than Permitted Liens; 
		

		
			(ix)     any Contract with any customer of the Company or any of its Subsidiaries (a “Customer Contract”);  
		

		
			(x)      a Contract with a pharmaceutical manufacturer, including any such Contract involving any drug rebates (a “Manufacturer Contract”); 
		

		
			(xi)     a Contract (other than one with an employee or consultant or a Customer Contract or Manufacturer Contract) that involves consideration (whether or not measured in cash) of greater than $50,000 on an annual basis or has a duration extending beyond December 31, 2016 unless it may be terminated by the Company or its 
		

		
			
		

		
			

		 

		

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			Subsidiary, as the case may be, without penalty on not more than ninety (90) days’ notice; 
		

		
			(xii)    a collective bargaining agreement; 
		

		
			(xiii)   a “standstill” or similar agreement; 
		

		
			(xiv)   a Contract for the employment of any individual on a full-time, part-time, consulting or other basis, in which the amount to be paid by the Company or any of its Subsidiaries is equal to or greater than $50,000 on an annual basis; 
		

		
			(xv)    a Contract providing for severance, retention, change in control or similar payments to any current or former employee, consultant or independent contractor;
		

		
			(xvi)   a Contract by which any Person other than the Seller is entitled to receive any portion of the Purchase Price; 
		

		
			(xvii)  any lease for real property; 
		

		
			(xviii) to the extent material to the business or financial condition of the Company and its Subsidiaries, taken as a whole, any (1) lease or rental Contract, (2) product design or development Contract, (3) consulting Contract, (4) indemnification Contract, (5) license or royalty Contract, or (6) merchandising, sales representative or distribution Contract; 
		

		
			(xix)   Contracts granting a right of first refusal or first negotiation; and 
		

		
			(xx)    commitments or agreements to enter into any of the foregoing. 
		

		
			In addition, to the Knowledge of the Company, no employee of the Company or any of its Subsidiaries is a party to or is bound by any agreement or other obligation which prevents him or her from providing the services currently provided to the Company or its Subsidiaries, respectively, by him or her or that are contemplated to be provided after the Closing pursuant to the applicable Employment Agreement. Each of the Contracts and other documents required to be listed on Section 4.14(a) of the Company Disclosure Schedules, together with each other Contract of such type entered into in accordance with Section 6.1, is a “Material Contract.” The Company has heretofore made available to Parent correct and complete copies of each Material Contract in existence as of the date hereof, together with any and all amendments and supplements thereto and material “side letters” and similar documentation relating thereto. 
		

		
			(b)       Each of the Material Contracts is valid, binding and in full force and effect and is enforceable in all material respects in accordance with its terms by the Company and its Subsidiaries party thereto, as the case may be, subject to the Bankruptcy and Equity Exception. Section 4.14(b) of the Company Disclosure Schedules sets forth an accurate and complete list of all Customer Contracts that contain provisions that would give rise to a right of termination by such customer as a result of the entry into this Agreement or the consummation of the Transactions, i.e., as a result of change in control provisions (the “Change In Control Customer Contracts”).
		

		
			
		

		
			

		 

		

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			(c)       Except as identified in Section 4.14(b) of the Company Disclosure Schedules, no approval, consent or waiver of, or notice to, any Person is needed in order for any Material Contract (including any Change In Control Customer Contract) to continue in full force and effect following the consummation of the Transactions. Neither the Company nor any of its Subsidiaries is in default in any material respect under any Material Contract or other Contract to which the Company or any of its Subsidiaries, as the case may be, is a party (collectively, the “Company Contracts”), nor does any condition exist that, with notice or lapse of time or both, would constitute a default in any material respect thereunder by the Company or any of its Subsidiaries. To the Knowledge of the Company, no other party to any Company Contract is in default thereunder, nor does any condition exist that with notice or lapse of time or both would constitute a default by any such other party thereunder. Neither the Company nor any of its Subsidiaries has received any notice of termination or cancellation under any Material Contract, received any notice of breach or default under any Material Contract which breach has not been cured, or granted to any third party any rights, adverse or otherwise, that would constitute a breach of any Material Contract. 
		

		
			(d)       To the Knowledge of the Company, each of the Company and its Subsidiaries, as applicable, has satisfied, or is satisfying, in all material respects, all performance standards and other obligations under any Material Contract where it is required to do so in order to receive any fees, bonuses, rebates, incentives, or other payments at the levels at which it has received fees or payments under such Material Contract in the last or the current fiscal year and is not required to return any fees or payments received by it or to provide credits against any future fees or payment that would otherwise be due to it under any Material Contract, nor is it subject to any penalties under any such Material Contract, by reason of its failure to satisfy any performance standard and other obligation contained in such Material Contract. 
		

		
			Section 4.15. Title to Properties.   Neither the Company nor any of its Subsidiaries owns any real property. Each of the Company and its Subsidiaries, as applicable, (i) has good and valid title to all material personal property which is reflected on the Balance Sheet as being owned by the Company or any of its Subsidiaries (or acquired after the date thereof) (except properties sold or otherwise disposed of since the date thereof in the ordinary course of business consistent with past practice and not in violation of this Agreement), free and clear of all Liens except (x) statutory liens securing payments not yet due, (y) security interests, mortgages and pledges that secure Indebtedness that is reflected in the Balance Sheet and (z) such other imperfections or irregularities of title or other Liens that, individually or in the aggregate, do not and would not reasonably be expected to materially impair the use of the properties or assets subject thereto or otherwise materially impair business operations as presently conducted by the Company or any of its Subsidiaries (any Lien described in (x), (y) or (z) above, a “Permitted Lien”), and (ii) holds pursuant to valid and enforceable leases or subleases all such material properties or material assets which are used in its business and not owned by it as referred to in the foregoing clause (i), free and clear of all Liens except Permitted Liens. Each of the Company and its Subsidiaries enjoys peaceful and undisturbed possession under all such leases or subleases in all material respects. The representations and warranties set forth in this Section 4.15 shall not apply to Intellectual Property Rights, which are covered exclusively in Section 4.16.  
		

		
			
		

		
			

		 

		

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			Section 4.16. Intellectual Property.
		

		
			(a)       For purposes of this Agreement:
		

		
			(i)       “Company Intellectual Property” means all Intellectual Property Rights used in the conduct of the business of the Company or any of its Subsidiaries, or owned or held for use by the Company or any of its Subsidiaries. 
		

		
			(ii)      “Company Technology” means all Technology used in or necessary for the conduct of the business of the Company or any of its Subsidiaries or owned or held for use by the Company or any of its Subsidiaries. 
		

		
			(iii)     “Intellectual Property Rights” shall mean all of the rights arising from or in respect of the following, whether protected, created or arising under the Laws of the United States or any foreign jurisdiction: (A) patents, provisional patents and utility models and applications therefor, any reissues, reexaminations, divisionals, continuations, continuations-in-part and extensions thereof, and equivalent or similar rights anywhere in the world in inventions and discoveries, including invention disclosures, invention certificates, and the like (collectively, “Patents”); (B) trademarks, service marks, trade names (whether registered or unregistered), service names, industrial designs, brand names, brand marks, trade dress rights, Internet domain names, identifying symbols, logos, emblems, signs or insignia and including all goodwill associated with the foregoing (collectively, “Marks”); (C) copyrights, whether registered or unregistered (including copyrights in computer software programs), mask work rights, database rights, works of authorship and other rights corresponding thereto (collectively, “Copyrights”); (D) confidential and proprietary information, or non-public processes, designs, specifications, technology, know-how, techniques, formulas, inventions, concepts, trade secrets, discoveries, ideas and technical data and information, in each case excluding any rights in respect of any of the foregoing that comprise or are protected by Copyrights or Patents (collectively, “Trade Secrets”); and (E) all applications, registrations, renewals, extensions and permits related to any of the foregoing clauses (A) through (D). 
		

		
			(iv)     “Publicly Available Software” means any open source or free Software (including any Software licensed pursuant to a GNU public license) or other Software that requires as a condition of use, modification or distribution that other Software incorporated into, derived from or distributed with such Software (a) be disclosed or distributed in source code form, (b) be licensed for the purpose of making derivative works or (c) be redistributable at no charge. 
		

		
			(v)      “Software” means computer programs, including any and all software implementations of algorithms, models and methodologies whether in source code, object code or other form, databases and compilations, including any and all data and collections of data, descriptions, flow-charts and other documentation used in the ordinary course of business in the use thereof. 
		

		
			(vi)     “Technology” means, collectively, all information, technical data, programs, designs, formulas, algorithms, procedures, processes, specifications, techniques, ideas, know-how, Software (whether in source code, object code or human readable form), databases and data collections, Internet websites and web content, tools, inventions (whether patentable or unpatentable and whether or not reduced to practice), invention disclosures, developments, creations, improvements, works of authorship, other similar materials and all recordings, graphs, drawings, reports, analyses, other writings 
		

		
			
		

		
			

		 

		

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			and any other embodiment of the above, in any form or media, whether or not specifically listed herein. 
		

		
			(b)       Section 4.16(b) of the Company Disclosure Schedules sets forth an accurate and complete list of all Patents, registered Marks, pending applications for registrations of any Marks and any unregistered Marks, registered Copyrights and pending applications for registration of any Copyrights, in each case, owned or filed by the Company or any of its Subsidiaries. Section 4.16(b) of the Company Disclosure Schedules lists (i) the record owner of each such item, (ii) the jurisdictions in which each such Intellectual Property Right has been issued or registered or in which any application for such issuance and registration has been filed and (iii) the date and number of any such registrations or applications. To the Knowledge of the Company, (A) there are no overdue filings or unpaid filings, maintenance or renewal fees currently overdue with respect to any Company Intellectual Property and no filings or fees due to be submitted or paid with respect to any Company Intellectual Property within ninety (90) days after the date of this Agreement and (B) no material Company Intellectual Property has lapsed or been cancelled or expired other than in the reasonable business judgment of the Company in the ordinary course of business.
		

		
			(c)       The Company or its Subsidiaries, as applicable, is the sole and exclusive owner of, or has valid and continuing rights to use, sell and license, all of the Company Intellectual Property and Company Technology, in each case, owned or purported to be owned by or licensed to the Company or its Subsidiaries, as the case may be, free and clear of any Liens except Permitted Liens; under the condition that, in the case of Company Intellectual Property and Company Technology licensed to the Company or its Subsidiaries, any such rights to use, sell, and license the foregoing may be subject to reasonable licensing restrictions entered into in the ordinary course of business, or as otherwise set forth in Section 4.14(a)(i). To the Knowledge of the Company, the use, practice or other commercial exploitation of the Company Intellectual Property by the Company or any of its Subsidiaries and the manufacturing, licensing, marketing, importation, offer for sale, sale or use of the Company Technology, and the operation of the Company’s, and its Subsidiaries’ businesses do not infringe, constitute an unauthorized use of, violate, or misappropriate any Intellectual Property Rights of any third Person. None of the Company or any of its Subsidiaries is a party to or the subject of any pending or, to the Knowledge of the Company, threatened suit, action, proceeding or, to the Knowledge of the Company, investigation which involves a claim (A) against the Company or any of its Subsidiaries, of infringement, unauthorized use, or violation of any Intellectual Property Rights of any Person, or challenging the ownership, use, validity or enforceability of any Company Intellectual Property or (B) contesting the right of the Company or any of its Subsidiaries to use, sell, exercise, license, transfer or dispose of any Company Intellectual Property or Company Technology, or any products, processes or materials covered thereby in any manner. None of the Company or any of its Subsidiaries has received written notice of any such threatened claim nor to the Knowledge of the Company are there any facts or circumstances that would form the basis for any claim against the Company or any of its Subsidiaries of infringement, unauthorized use, or violation of any Intellectual Property Rights of any Person, or challenging the ownership, use, validity or enforceability of any Company Intellectual Property or Company Technology. 
		

		
			(d)       To the Knowledge of the Company, no Person (including employees and former employees of the Company, or any of its Subsidiaries) is infringing, violating, misappropriating or otherwise misusing any Company Intellectual Property, and none of the Company or any of its Subsidiaries has made any such claims against any Person (including 
		

		
			
		

		
			

		 

		

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			employees and former employees of the Company or any of its Subsidiaries) nor, to the Knowledge of the Company, is there any basis for such a claim. 
		

		
			(e)       No Trade Secret or any other non-public, proprietary information of the Company or any of its Subsidiaries as presently conducted has been authorized to be disclosed or, has been actually disclosed by the Company or any of its Subsidiaries to any employee or any third Person other than pursuant to a confidentiality or non-disclosure agreement restricting the disclosure and use of the Company Intellectual Property or Company Technology. Each of the Company and its Subsidiaries has taken all reasonably necessary and appropriate steps to protect and preserve the confidentiality of all Trade Secrets and any other non-public, proprietary or confidential information of the Company or any Person to whom the Company has a confidentiality obligation. 
		

		
			(f)       Except with respect to (i) licenses of off-the-shelf Software or (ii) any payments required of the Company or any of its Subsidiaries under any Material Contract, neither the Company nor any of its Subsidiaries is required, obligated or under any liability whatsoever to make any payments by way of royalties, fees or otherwise to any Person with respect to the use of any Company Intellectual Property or Company Technology in the conduct of the business as currently conducted.
		

		
			(g)       Section 4.16(g) of the Company Disclosure Scheduled sets forth a correct and complete list of all Software that is (i) owned exclusively by the Company or any of its Subsidiaries; or (ii) used by the Company or any of its Subsidiaries in its businesses and not exclusively owned by the Company or any of its Subsidiaries or available on reasonable terms through commercial distributors or in consumer retail stores. 
		

		
			(h)       No Publicly Available Software (including, all derivative works thereof) is, in whole or in part, embodied or incorporated into any of the Company’s or any of its Subsidiaries’ products, which Company or any of its Subsidiaries makes generally available in any manner that would materially restrict the ability to protect the proprietary interests of Company or any of its Subsidiaries in any such products. 
		

		
			(i)       Each of the Company and its Subsidiaries owns, leases or licenses all Software, hardware, databases, computer equipment and other information technology (collectively, “Computer Systems”) that are necessary for the operations of the Company’s and its Subsidiaries’ businesses. The Computer Systems used by the Company and its Subsidiaries have functioned consistently and accurately since being installed. The data storage and transmittal capability, functionality and performance of each item of the Computer Systems and the Computer Systems as a whole are adequate for the Company’s and its Subsidiaries’ businesses. The Computer Systems have not failed to any material extent and the data which they process has not been corrupted. The Company and its Subsidiaries have taken all reasonable steps in accordance with industry standards to preserve the availability, security and integrity of the Computer Systems and the data and information stored on the Computer Systems. Each of the Company and its Subsidiaries maintains comprehensive and clear documentation regarding all Computer Systems, their methods of operation, and their support and maintenance. 
		

		
			Section 4.17. Insurance.   Section 4.17 of the Company Disclosure Schedules sets forth a correct and complete summary of the material insurance and reinsurance policies held by, or for the benefit of, the Company or any of its Subsidiaries as of the date of this 
		

		
			

		 

		

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			Agreement, including the underwriter of such policies and the amount of the coverage thereunder) maintained by the Company or any of its Subsidiaries (the “Policies”). The Policies (i) have been issued by insurers or reinsurers which, to the Knowledge of the Company, are reputable and financially sound, (ii) provide coverage for the operations conducted by the Company and its Subsidiaries of a scope and coverage consistent with customary practice in the industries in which the Company and its Subsidiaries operate and (iii) are in full force and effect subject to the Bankruptcy and Equity Exception. Neither the Company nor any of its Subsidiaries is in breach or default, and has not taken any action or failed to take any action which, with notice or the lapse of time, would constitute such a breach or default, or permit termination or modification, of any of the Policies. No notice of cancellation or termination has been received by the Company or any of its Subsidiaries with respect to any of the Policies. The consummation of the Transactions will not, in and of itself, cause the revocation, cancellation or termination of any Policy. All appropriate insurers under the Policies have been timely notified of all potentially insurable material losses known to the Company and its Subsidiaries, and all appropriate actions have been taken, if any, to timely make all claims in respect of such insurable matters. 
		

		
			Section 4.18. Brokers and Other Advisors.   Except for Lazard, no broker, investment banker, financial advisor or other Person is or will be entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission, or the reimbursement of expenses or indemnification or contribution, in connection with the Transactions based upon arrangements made by or on behalf of the Company or any of its Subsidiaries. At or prior to the Closing, all amounts payable to Lazard in connection with the Transactions will be paid in full by the Seller, the Company, or a Subsidiary of the Company, or as part of the Transaction Expenses payable pursuant to Section 2.1.  
		

		
			Section 4.19. Health Care Regulatory Compliance.  
		

		
			(a)       Governmental Authorizations and Consents. Except as otherwise disclosed on Section 4.19(a) of the Company Disclosure Schedules, no action by, consent, approval, permit or authorization of, or designation, declaration or filing with, any Governmental Authority is required on the part of the Company or any of its Subsidiaries with respect to the Company’s authorization, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby. 
		

		
			(b)       Permits.  Section 4.19(b) of the Company Disclosure Schedules lists all material Permits maintained by the Company and its Subsidiaries in the conduct of their business. The Company and its Subsidiaries have obtained all of the Permits necessary under applicable Laws to permit the Company and its Subsidiaries to own, operate, use and maintain their properties and assets in the manner in which they are now operated and maintained and to conduct their business and operations as currently conducted. Each such Permit is in full force and effect. Each Manager, director, officer, employee, agent and contractor of the Company or any of its Subsidiaries possesses all Permits necessary for the lawful conduct of his or her duties and obligations in the operation of the business of the Company and its Subsidiaries. The operation of the business of the Company and its Subsidiaries as currently conducted is not in violation of, nor is the Company or any of its Subsidiaries in default or violation under, any Permit required to be listed on Section 4.19(b) of the Company Disclosure Schedules. Neither of the Company nor any of its Subsidiaries has received notice of any breach or violation from any Governmental Authority regarding any Permit and is not involved in any litigation, proceeding or, to the Knowledge of the Company, investigation by or with any Governmental Authority
		

		
			
		

		
			

		 

		

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			relating to any Permit, which if resolved adversely would have an adverse impact on the ability of the Company or any of its Subsidiaries to conduct their business as currently conducted. There has been no decision by the Company or, any of its Subsidiaries to not maintain or renew any Permit currently held for the operation of its business. 
		

		
			(c)       Compliance with Health Regulatory Laws.  
		

		
			(i)       The Company and its Subsidiaries are, and at all times since January 1, 2014 (or, if later, since its date of formation), have been, in material compliance with, and are not and have not been in violation of during the specified period, all Health Regulatory Laws, including (but not limited to), to the extent applicable, any federal or state Law regulating (A) fraud and abuse, (B) referral and financial relationships with providers, (C) insurance, (D) prompt payment of claims, (E) recordkeeping, (F) patient charges and billing, (G) quality, (H) safety, (I) network access, (J) privacy, (K) security and (L) disclosure of payments. Without limiting the foregoing, none of the Company, any of its Subsidiaries or any of their respective Managers, directors, officers, employees, contractors or agents has engaged in any conduct that is prohibited under, or fails to comply with the requirements of, any Health Regulatory Law. Except as set forth on Section 4.19(c) of the Company Disclosure Schedules, since January 1, 2015 (or, if later, since the date of its formation), neither the Company nor any of its Subsidiaries has received or been subject to, and to the Knowledge of the Company there does not exist any fact, circumstance or condition that would give rise to, any written notice, charge, claim or assertion alleging any violations of Health Regulatory Laws or related Governmental Orders, and to the Knowledge of the Company, no charge, claim, assertion or action alleging any violation of any Law, Governmental Order, or Permit by the Company or any of its Subsidiaries is currently threatened against the Company or any of its Subsidiaries. 
		

		
			(ii)      None of the Company, any of its Subsidiaries, or any of their respective Managers, directors, officers, employees, contractors or agents acting on their behalf: (A) are or have been convicted of or charged or threatened with prosecution or under investigation by a Governmental Authority for any violation of a Health Regulatory Law, including any Law applicable to a health care program defined in 42 U.S.C. §1320a-7b(f) (“Federal Health Care Program”); (B) are or have been convicted of, charged with, or investigated for any violation of Law related to fraud, theft, embezzlement, breach of fiduciary responsibility, financial misconduct, obstruction of an investigation, or manufacture, storage, distribution or sale of controlled substances; (C) are excluded, suspended or debarred from participation, or are otherwise ineligible to participate, in any Federal Health Care Program, any federal, state, or local governmental procurement or non-procurement program, or any other federal or state government program or activity; or (D) have committed any violation of Law that is reasonably expected to serve as the basis for any such exclusion, suspension, debarment or other ineligibility. 
		

		
			(iii)     To the Knowledge of the Company, neither the Company nor any of its Subsidiaries has failed to comply with Federal Health Care Program requirements applicable to the Company or any of its Subsidiaries.
		

		
			
		

		
			

		 

		

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			(iv)     Neither the Company nor any of its Subsidiaries has, directly or indirectly, received, paid or delivered any fee, commission or other sum of money or remuneration, however characterized, to any Governmental Authority or any other Person which in any manner is related to any Contract of the Company or any of its Subsidiaries and which is illegal under any applicable Law. Without limiting the foregoing, none of the Company, any of its Subsidiaries, or any of their respective Managers, directors, officers, employees, contractors or agents, or any other Person acting on behalf of the Company or any of its Subsidiaries, acting alone or together, has directly or indirectly (A) made any illegal or unethical contribution, gift, bribe, rebate, payoff, commissions, promotional allowances, influence payment, kickback, or other payment or economic benefit to any person, private or public, regardless of what form, whether in money, property, or services; (B) established or maintained any fund or asset that has not been recorded in the books and records of the Company or its Subsidiaries; (C) engaged in any business practices or conducted any dealings that are contrary to accepted industry standards; or (D) aided, abetted, caused (directly or indirectly), participated in, or otherwise conspired with, any Person to violate the terms of any judgment, sentence, order or decree of any court or Governmental Authority. 
		

		
			(v)      None of the Company, any of its Subsidiaries, or any of their respective Managers, directors, officers, employees, contractors or agents, or any other Person acting on behalf of the Company or any of its Subsidiaries has made an untrue or fraudulent statement, including, but not limited to certification, to any Governmental Authority or agent thereof, failed to disclose a fact required to be disclosed to a Governmental Authority or agent thereof, or committed an act, made a statement, or failed to make a statement that would reasonably be expected to provide a basis for any Governmental Authority or agent thereof, to cause the Company or any of its Subsidiaries to invoke their policy respecting “Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities” as set forth in 56 Fed. Reg. 46191 (Sept. 10, 1991), or to initiate any other legal action relating to fraud, false claims, or false statements. 
		

		
			(d)       Corporate Compliance Program. Each of the Company and its Subsidiaries has adopted and maintains a compliance program that is intended to assist it to be in compliance with all Law, standards and guidelines relevant to its business, including but not limited all Health Regulatory Laws, and includes each of the following elements: (i) a code of conduct and other applicable policies and procedures; (ii) training on the code of conduct, policies and procedures; (iii) an auditing and monitoring function; (iv) disciplinary guidelines to enforce compliance standards; (v) an anonymous reporting process for potential violations of Law or the compliance program; (vi) designation of a compliance officer; and (vii) a mechanism for ensuring the effectiveness of the compliance program. Neither the Company nor any of its Subsidiaries, nor to the Knowledge of the Company, any of their respective Managers, directors, officers, employees, contractors or agents has violated such compliance program.  
		

		
			(e)       Privacy Compliance. The Company and its Subsidiaries are in material compliance with all applicable security and privacy standards regarding protected health and employee information, or any applicable local, state, provincial or federal privacy Laws, including but not limited to HIPAA. Any employee or patient information that has been collected, used or disclosed has been done so with the consent of each individual to whom the information relates, if such consent, implied or otherwise, was required under applicable privacy Law or has been used only for the purposes for which such information was initially collected or 
		

		
			
		

		
			

		 

		

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			as otherwise permitted by applicable Law and/or agreement. The Company and its Subsidiaries have developed and implemented policies, procedures and training programs to help assure past, current, and ongoing compliance with HIPAA’s privacy, security, enforcement and breach notification regulations and state privacy and security laws. The Company and its Subsidiaries maintain all necessary “business associate” agreements with “covered entities” as required under HIPAA, and are in compliance with all such “business associate” agreements. No violation of any applicable privacy Law, including but not limited to HIPAA, has been alleged or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries by any Governmental Authority, including but not limited to the Office of Civil Rights of the U.S. Department of Health and Human Services, a patient or any other Person since January 1, 2013.  
		

		
			(f)       Manufacturer Discounts and Rebates. Each of the Company or its Subsidiaries has properly documented, accounted for and disclosed to its customers all manufacturer discounts, rebates, incentive payments, administrative fees and remuneration from pharmaceutical manufacturers and is in compliance with Health Regulatory Laws (including the provisions of ERISA and state and federal Anti-Kickback statutes), and policies and contractual requirements of manufacturers and customers regarding such manufacturer discounts, rebates, incentive payments, administrative fees and remuneration. 
		

		
			(g)       Drug/Pharmaceutical Purchases. The purchase of drugs and pharmaceuticals by the Company and its Subsidiaries has at all times been conducted pursuant to the proper classification of the identity and status of the purchaser of such drugs and pharmaceuticals and in accordance with all applicable Health Regulatory Laws and policies of drug/pharmaceutical manufacturers. 
		

		
			(h)       Drug/Pharmaceutical Inventory. With respect to the drugs and pharmaceutical inventories of the Company and its Subsidiaries: (i) all of such inventory is merchantable in accordance with the Federal Food Drug and Cosmetic Act or any other Law, including such applicable requirements as are imposed by the FDA or any state pharmacy board, (ii) all of such inventory other than written off inventory, except to the extent of reserves shown on the face of the Balance Sheet, consists of a quality and quantity usable and salable in its ordinary course, (iii) none of such inventory is slow moving, obsolete, damaged or defective, (iv) the quantities of each item of such inventory are not excessive and are reasonable in the present circumstances of the Company and its Subsidiaries, (v) all of such inventory not written off has been priced at the lower of cost or net realizable value on a first in, first out basis, except in each case subject to the reserve shown on the face of the Balance Sheet, (vi) none of such inventory is on consignment; and (vii) such inventory is appropriately sourced in accordance with all applicable Law, including all applicable FDA requirements. 
		

		
			(i)       Drug Dispensing. With respect to the dispensing of drugs and related products by the Company and its Subsidiaries: (i) all dispensing has been duly authorized in accordance with applicable state and federal Law, including Laws regulating controlled substances and drug diversion, (ii) no therapeutic interchanges, redispensing of returned merchandise, and/or pill splitting programs have been implemented except in accordance with applicable Law and good clinical practice, (iii) all dispensing has been by duly licensed pharmacists and/or other individuals authorized and appropriately supervised under applicable Law to dispense such products.
		

		
			
		

		
			

		 

		

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			Section 4.20. Accounts and Notes Receivable and Payable.   All accounts and notes receivable of the Company and its Subsidiaries have arisen from bona fide transactions in the ordinary course of business consistent with past practice and are payable on ordinary trade terms.  All accounts and notes receivable of the Company and its Subsidiaries reflected on the Balance Sheet are at the aggregate recorded amounts thereof, net of any applicable reserve for returns or doubtful accounts reflected thereon, which reserves are adequate and were calculated in a manner consistent with past practice and in accordance with GAAP, consistently applied.  All accounts and notes receivable of the Company and its Subsidiaries arising after the Balance Sheet Date and existing on the date hereof are at the aggregate recorded amounts thereof, net of any applicable reserve for returns or doubtful accounts, which reserves are adequate and were calculated in a manner consistent with past practice and in accordance with GAAP, consistently applied.  None of the accounts or the notes receivable of the Company and any of its Subsidiaries (i) are subject to any setoffs or counterclaims or (ii) represent obligations for goods or services subject to any repurchase, return, refund or rebate arrangement. 
		

		
			Section 4.21. Related Party Transactions.   Except as set forth on Section 4.21 of the Company Disclosure Schedules, no employee, officer, director, Manager or member of the Company or any of its Subsidiaries, or, to the Knowledge of the Company, any member of his or her immediate family or any of their respective Affiliates (“Related Persons”) (i) owes any amount to the Company or any of its Subsidiaries, nor does the Company or any of its Subsidiaries owe any amount to, or has the Company or any of its Subsidiaries made or committed to make any loan or guarantee of any credit or performance to or for the benefit of, any Related Person except for salary, wages and other amounts payable to or for the benefit of employees pursuant to any Company Plan, (ii) is involved in any business arrangement or other relationship with the Company or any of its Subsidiaries (whether written or oral) other than employment, ownership, or management relationships with the Company and/or its Subsidiaries that have been disclosed to Parent in the Company Disclosure Schedules, (iii) owns any property or right, tangible or intangible, that is used by the Company or any of its Subsidiaries, (iv) has any claim or cause of action against the Company or any of its Subsidiaries, (v) owns any direct or indirect interest of any kind in, or controls or is a director, Manager, officer, employee or partner of, or consultant to, or lender to or borrower from or has the right to participate in the profits of, any Person which is a competitor, supplier, customer, landlord, tenant, creditor or debtor of the Company or any of its Subsidiaries. 
		

		
			Section 4.22. Banks; Power of Attorney.   Section 4.22 of the Company Disclosure Schedules contains a complete and correct list of the names and locations of all banks in which the Company or any of its Subsidiaries have accounts or safe deposit boxes and the names of all persons authorized to draw thereon or to have access thereto. Except as set forth on Section 4.22 of the Company Disclosure Schedules, no person holds a power of attorney to act on behalf of the Company or any of its Subsidiaries. 
		

		
			Section 4.23. Customers and Suppliers.
		

		
			(a)       Section 4.23(a) of the Company Disclosure Schedules sets forth a list of the top ten (10) customers and the top ten (10) suppliers of the Company and its Subsidiaries, showing the approximate total sales by the Company and its Subsidiaries to each such customer and the approximate total purchases by the Company and its Subsidiaries from each such supplier, during the 2015 fiscal year of the Company and its Subsidiaries. Section 4.23(a) of the Company Disclosure Schedules also sets forth the approximate total sales by the Company and 
		

		
			
		

		
			

		 

		

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			its Subsidiaries to Deseret Mutual Benefits Administrators and its affiliates, during the twelve (12)-month period ending as of the end of the month preceding the date hereof. 
		

		
			(b)       Since the Balance Sheet Date, no customer or any supplier of the Company or any of its Subsidiaries has terminated its relationship with the Company or its Subsidiaries or reduced or changed the pricing or other terms of its business with the Company or its Subsidiaries and, to the Knowledge of the Company, (i) no customer has notified the Company or any of its Subsidiaries that it intends to terminate or reduce the pricing or change, in any material respect, the other terms of its business with the Company or its Subsidiaries, as the case may be, (ii) no supplier has notified the Company or any of its Subsidiaries that it intends to terminate or increase or change, in any material respect, the pricing or other terms of its business with the Company or its Subsidiaries, as the case may be, and (iii) to the actual knowledge of the individuals listed on Exhibit 10.11(b), there is no existing fact, circumstance or condition that would be expected to give rise to such a notice. 
		

		
			Section 4.24. Certain Payments.   Neither the Company nor any of its Subsidiaries, or the Seller or, to the Knowledge of the Company, any Manager, director, officer, employee, or other Person associated with or acting on behalf of any of them, has directly or indirectly (a) made any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any Person, private or public, regardless of form, whether in money, property, or services in violation of any Law, or (b) established or maintained any fund or asset with respect to the Company or its Subsidiaries that has not been recorded in the books and records of the Company or its Subsidiaries, as applicable. 
		

		
			Section 4.25. Sales Personnel.   Each sales agent employed with the Company, or any Subsidiary of the Company is properly licensed to sell the products and services of the Company and its Subsidiaries, as applicable. The compensation payable by the Company or its Subsidiaries, as the case may be, to such employees complies with applicable Health Regulatory Laws.  
		

		
			Section 4.26. Recoupment Proceedings.   Except as set forth on Section 4.26 of the Company Disclosure Schedules, there are no material Program recoupments or material recoupments of any third-party payor being sought, requested or claimed, or to the Knowledge of the Company, threatened against the Company or any of the Company’s Subsidiaries. 
		

		
			Section 4.27. Capital or Surplus Management.   Except as set forth on Section 4.27 of the Company Disclosure Schedules, to the Knowledge of the Company, neither the Company nor any of its Subsidiaries are subject to any requirement to maintain capital or surplus amounts or levels, or is subject to any restriction on the payment of dividends or other distributions on its membership interests or shares of capital stock, except for such requirements or restrictions under insurance or other Laws of general application. 
		

		
			Section 4.28. Entire Business; Sufficiency of Assets and Employees.   The assets and employees of the Company and its Subsidiaries constitute all of the assets (including contractual rights with service vendors) and employees used in or employed by the business of the Company and its Subsidiaries as such business is currently conducted and no asset or employee of any Affiliate of the Company (other than the assets or employees of the Subsidiaries of the Company and Granite) is necessary for the conduct of the business of the Company and its Subsidiaries.
		

		
			

		 

		

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			ARTICLE V
		

		
			Representations and Warranties of Parent
		

		
			Parent makes to the Seller the representations and warranties contained in this Article V:  
		

		
			Section 5.1.       Organization, Standing and Corporate Power.  Parent is a corporation or limited liability company duly organized, validly existing and in good standing under the Laws of the jurisdiction in which it is incorporated. 
		

		
			Section 5.2.       Authority; Noncontravention.   
		

		
			(a)       Parent has all necessary power and authority to execute and deliver this Agreement and to perform its obligations hereunder and to consummate the Transactions. The execution, delivery and performance by Parent of this Agreement, and the consummation by Parent of the Transactions, have been duly authorized and approved by its Board of Directors and no other corporate action on the part of Parent is necessary to authorize the execution, delivery and performance by Parent of this Agreement and the consummation by it of the Transactions. This Agreement has been duly executed and delivered by Parent and, assuming due authorization, execution and delivery hereof by the Company and the Seller, constitutes a legal, valid and binding obligation of Parent, enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception. 
		

		
			(b)       Neither the execution and delivery of this Agreement by Parent, nor the consummation by Parent of the Transactions, nor compliance by Parent with any of the terms or provisions hereof, will (i) conflict with or violate any provision of the certificate of incorporation or bylaws of Parent or (ii) assuming that the authorizations, consents and approvals referred to in Section 5.3 are obtained and the filings referred to in Section 5.3 are made, (x) violate any Law, judgment, writ or injunction of any Governmental Authority or any arbitration award applicable to Parent or any of its Subsidiaries or any of their respective properties or assets, or (y) violate, conflict with, result in the loss of any benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation under, accelerate the performance required by, or result in the creation of any Lien upon any of the respective properties or assets of, Parent under, any of the terms, conditions or provisions of any Contract to which Parent is a party, or by which it or any of its properties or assets may be bound or affected that, individually or in the aggregate, could reasonably be expected to adversely affect the ability of Parent to perform, in a timely manner, its obligations under this Agreement or to consummate the Transactions. 
		

		
			Section 5.3.       Governmental Approvals.   Except for the approvals or filings referred to in Schedule 5.3 delivered by Parent to the Company, no consents or approvals of, or filings, declarations or registrations with, any Governmental Authority are necessary for the execution and delivery of this Agreement by Parent or the consummation by Parent of the Transactions, other than such other consents, approvals, filings, declarations or registrations that, if not obtained, made or given, could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect with respect to Parent. 
		

		
			Section 5.4.       Brokers and Other Advisors.   No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s, financial advisor’s or other 
		

		
			
		

		
			

		 

		

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			similar fee or commission in connection with the Transactions based upon arrangements made by or on behalf of Parent or any of its Subsidiaries. 
		

		
			Section 5.5.       Litigation.   There is no suit, claim, action, proceeding or investigation pending or, to the Knowledge of Parent, threatened against Parent and Parent is not subject to any outstanding order, writ, judgment, injunction or decree of any Governmental Authority that would be reasonably likely, individually or in the aggregate, to (a) prevent or materially delay the consummation of the Sale or (b) otherwise prevent or materially delay performance by Parent of any closing condition set forth in Section 7.3 or of its material obligations under this Agreement. 
		

		
			Section 5.6.       Sufficient Funds.   Parent has sufficient funds available (through existing credit arrangements, commitment letters or otherwise) to fully fund all of Parent’s obligations under this Agreement, including payment of the Purchase Price, the Adjustment Amount, if applicable, and all fees and expenses of Parent related to the transactions contemplated by this Agreement. Parent acknowledges that the availability of funding is not a condition precedent (under Section 7.2 or otherwise) to its obligations to close the transactions contemplated by this Agreement. 
		

		
			Section 5.7.       Reliance.   Except for the representations and warranties expressly made by the Company and the Seller in Article III,  Article IV and the certificate delivered pursuant to Section 7.2(n) of this Agreement, (a) (i) neither the Company nor the Seller is making or has made any representation or warranty, express or implied, at law or in equity, in respect of the Company or the Company’s business, assets, Liabilities, operations, or condition (financial or otherwise), the nature or extent of any liabilities, the prospects of the Company’s business, the effectiveness or the success of any operations, or the accuracy or completeness of any confidential information memoranda, projections, forecasts or estimates of earnings, or other information (financial or otherwise) regarding the Company furnished to Parent or its representatives or otherwise made available to Parent and its representatives, in management presentations or in any other form in expectation of, or in connection with, the transactions contemplated hereby, and (ii) no officer, agent, representative or employee of the Company or the Seller has any authority, express or implied, to make any representations, warranties or agreements not set forth in this Agreement and (b) Parent is acquiring the Company subject only to the representations and warranties set forth in Article III,  Article IV and the certificate delivered pursuant to Section 7.2(n) of this Agreement. 
		

		
			Section 5.8.       Investment.   Parent is aware that the Interests being acquired by Parent pursuant to the transactions contemplated hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under any state securities Law. Parent qualifies as an “accredited investor” as such term is defined in Rule 501(a) promulgated under the Securities Act, and Parent is acquiring the Interests to be acquired by Parent hereunder solely for investment and not with a view toward, or for sale in connection with, any distribution thereof within the meaning of the Securities Act, nor with any present intention of distributing or selling any of the Interests. Neither Parent nor or any of its Affiliates will sell or otherwise dispose of the Interests except in compliance with the registration requirements or exemption provisions under the Securities Act and the rules and regulations promulgated thereunder, or any other applicable securities Law. 
		

		
			
		

		
			

		 

		

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			Section 5.9.       Information.   Parent acknowledges that it has been furnished with such documents, materials and information as Parent deems necessary or appropriate for evaluating the purchase of the Interests. Parent confirms that it has made such further investigation of the business of the Company and its Subsidiaries as was deemed appropriate to evaluate the merits and risks of this purchase. Parent further acknowledges that it has had the opportunity to ask questions of, and receive answers from, the Managers and the officers of the Company, its Subsidiaries, the Seller and Persons acting on behalf of the Company, its Subsidiaries, the Seller concerning the terms and conditions of the purchase of the Interests. 
		

		
			ARTICLE VI
		

		
			Additional Covenants and Agreements
		

		
			Section 6.1.       Conduct of Business.   Except as expressly required or permitted by this Agreement, as required by applicable Law or as permitted by the prior written consent of Parent, during the period from the date of this Agreement until the earlier of the Closing or the termination of this Agreement pursuant to Article VIII, the Company shall, and shall cause each of its Subsidiaries to, (i) conduct its business in the ordinary course consistent with past practice, (ii) comply in all material respects with all applicable Laws and the requirements of all Material Contracts, (iii) use commercially reasonable efforts to maintain and preserve intact its business organization and the goodwill of those having business relationships with it and retain the services of its present officers and key employees, in each case, to the end that its goodwill and ongoing business shall not be materially impaired at the Closing, and (iv) keep in full force and effect or renew  all material insurance policies maintained by the Company and its Subsidiaries other than changes to such policies made in the ordinary course of business. Without limiting the generality of the foregoing, except as expressly required or permitted by this Agreement, required by applicable Law, specified in Section 6.1 of the Company Disclosure Schedules or permitted by the prior written consent of Parent, during the period from the date of this Agreement to the earlier of the Closing or the termination of this Agreement pursuant to Article VIII, the Company shall not, and shall not permit any of its Subsidiaries to: 
		

		
			(a)       (i) issue, sell, grant, dispose of, pledge or otherwise encumber any of the Interests, other shares of capital stock, membership interest, securities or equity interests in or of the Company or any of its Subsidiaries, or any securities, rights or options convertible into, or exchangeable or exercisable for, or evidencing the right to subscribe for, or any calls, commitments or any other agreements of any character to purchase or acquire, any Interests, or any membership interests, shares of capital stock, membership interest, securities or equity interests in or of the Company or any of its Subsidiaries; (ii) redeem, purchase or otherwise acquire any of the foregoing; or (iii) declare, set aside for payment or pay any distribution on, or make any other distribution in respect of, the foregoing; 
		

		
			(b)       incur or assume any material Indebtedness (or enter into a “keep well” or similar agreement) or issue or sell any debt securities or options, warrants, calls or other rights to acquire any debt securities; 
		

		
			(c)       sell, transfer, assign, lease, mortgage, encumber, license (other than non-exclusive licenses received from or granted to customers in the ordinary course of business consistent with past practice) or otherwise dispose of or subject to any Lien (including pursuant to a sale-leaseback transaction or an asset securitization transaction), other than a Permitted Lien, any of its properties or assets to any Person, except (i) pursuant to Contracts in force on the date 
		

		
			
		

		
			

		 

		

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			of this Agreement and listed on Section 6.1(c) of the Company Disclosure Schedules, correct and complete copies of which have been made available to Parent or (ii) dispositions of obsolete or worthless assets; 
		

		
			(d)       make any capital expenditures, except in the ordinary course of business consistent with past practice and in an amount not in excess of $50,000 in the aggregate for the Company and its Subsidiaries taken as a whole; 
		

		
			(e)       (i) directly or indirectly acquire, by merging or consolidating with, or by purchasing all of or a substantial equity interest in, or by any other manner, any Person or any division or business of any Person or (ii) except pursuant to Section 6.1(d), otherwise acquire any properties or assets except in the ordinary course of business consistent with past practice, provided, that no such acquisition in the ordinary course of business of any assets (other than inventory) that, individually, have a purchase price in excess of $40,000 or any group of related assets that, in the aggregate, have a purchase price in excess of $80,000, shall be made without reasonable prior notice to Parent and shall not be made without Parent’s prior written consent (for purposes of clarity, purchases of inventory in the ordinary course of business in any amount do not require notice to Parent or consent from Parent); 
		

		
			(f)       make any investment (by contribution to capital, property transfers, purchase of securities or otherwise) in, or loan or advance (other than travel and similar advances to its employees in the ordinary course of business consistent with past practice) to, any Person other than in the ordinary course of business consistent with past practice; 
		

		
			(g)       (i) enter into, terminate or amend any Material Contract, or make any proposal to enter into, terminate, or amend any Material Contract, or, other than in the ordinary course of business consistent with past practice, any other Contract that is material to the Company and its Subsidiaries, taken as a whole, (ii) enter into any Contract that would be breached by, or require the consent of any third party in order to continue in full force and effect following consummation of the Transactions, or (iii) release any Person from, or modify or waive any provision of, any confidentiality, standstill or similar agreement or fail to take all action reasonably necessary to enforce each such confidentiality, standstill and similar agreement (in each case, other than any such agreement with Parent); 
		

		
			(h)       (i) increase in any manner the compensation or benefits of any of its current or former Managers, directors, officers, employees or consultants outside of the ordinary course of business consistent with past practice, (ii) hire or terminate any Manager, director, officer or employee outside of the ordinary course of business consistent with past practice, (iii) take any action to accelerate the vesting or payment of any compensation or benefits of any of its current or former Managers, directors, officers, employees or consultants, other than as required by a Company Plan, or (iv) enter into, establish, amend or terminate, outside of the ordinary course of business consistent with past practice, any employment, consulting, retention, change in control, collective bargaining, bonus or other incentive compensation, profit sharing, health or other welfare, option or other equity (or equity-based), pension, retirement, vacation, severance, deferred compensation or other compensation or benefit plan, policy, program, agreement, trust, fund or arrangement with, for or in respect of, any current or former Manager, director, officer, employee, consultant or Affiliate; 
		

		
			

		 

		

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			(i)       make, change or revoke any Tax election (including making an entity classification election pursuant to Treasury Regulation Section 301.7701-3(c) to be classified as an association taxable as a corporation); file any amended Tax Return; file any Tax Return unless such Tax Return shall have been prepared consistent with past practice; enter into any closing agreement pursuant to Section 7121 of the Code (or any similar provisions of applicable Law) or any Tax Sharing Agreement; settle or compromise any claim, liability or assessment relating to Taxes; surrender any right to claim a refund of Taxes, or obtain any Tax ruling; 
		

		
			(j)       make any changes in financial or tax accounting methods, principles or practices (or change an annual accounting period), except insofar as may be required by a change in GAAP or applicable Law; 
		

		
			(k)       amend the Company Organizational Documents or any organization document of any Subsidiary of the Company; 
		

		
			(l)       adopt a plan or agreement of complete or partial liquidation, dissolution, restructuring, recapitalization, merger, consolidation or other reorganization; 
		

		
			(m)       pay, discharge, settle or satisfy any material claims, liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise), other than the payment, discharge, settlement or satisfaction in accordance with their terms of liabilities, claims or obligations reflected or reserved against in the Balance Sheet; provided that debt payments required under the Loan Agreement may be made when due; 
		

		
			(n)       issue any broadly distributed communication of a general nature to employees (including general communications relating to benefits and compensation) or customers or clients without the prior written approval of Parent, except for communications in the ordinary course of business that do not relate to the Transactions and do not provide to any Person any information regarding the Company, that might be considered material non-public information (within the meaning of Regulation FD under the Exchange Act) if the Company’s securities were registered under Section 12(b) of the Exchange Act;  
		

		
			(o)       acquire any material properties or assets or sell, assign, license (other than non-exclusive licenses received from or granted to customers in the ordinary course of business consistent with past practice), transfer, convey, lease or otherwise dispose of any material properties or assets; 
		

		
			(p)       enter into, modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any liability to any labor organization; 
		

		
			(q)       enter into, or modify, amend or terminate, any Contract which would (i) cause the Company or any Subsidiary to incur a liability in excess of $20,000 or receive revenues in excess of $50,000, or (ii) have a term of more than one year (unless the Company or its Subsidiaries, as applicable, may cancel such Contract in its discretion without incurring a liability in excess of $20,000) or (iii) reasonably be expected to have a Material Adverse Effect on the Company (provided, however, that in no event will the Company be considered in breach of this clause (iii) in connection with entering into a Contract after the date hereof as to which it has received the written consent of Parent); notwithstanding the foregoing, Parent hereby agrees 
		

		
			

		 

		

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			that the Company or its Subsidiaries may enter into standard pharmacy services management agreements or similar agreements to provide services and/or products to the following entities: McKee Foods Corporation, Colorado Choice Health Plan, Bristol Bay Native Corporation, Synergy Rx, Nu Skin Enterprises, Freedom Oilfield Services, and Ball Enterprises; provided that such Contracts are on terms substantially comparable to the terms therefor previously disclosed to Parent;  
		

		
			(r)       take any actions outside the ordinary course of business that would affect Closing Date Indebtedness or Closing Date Working Capital from the respective amounts thereof as of 11:59 P.M. on the Business Day immediately prior to the Closing Date to the time of the Closing; or 
		

		
			(s)       agree, in writing or otherwise, to take any of the foregoing actions, or take any action or agree, in writing or otherwise, to take any action which would (i) cause any of the representations or warranties of the Company set forth in this Agreement to be untrue in any material respect or (ii) in any material respect impede or delay the ability of the parties to satisfy any of the conditions to the Sale set forth in this Agreement. 
		

		
			Section 6.2.       No Solicitation by the Company; Etc.   
		

		
			(a)       Neither the Company nor the Seller shall, and shall cause the Company’s Managers, directors, officers, employees, investment bankers, financial advisors, attorneys, accountants, contractors, agents and other representatives (collectively, “Representatives”) to not, directly or indirectly (i) solicit, initiate, cause, facilitate or knowingly encourage (including by way of furnishing information) any inquiries or proposals that constitute, or would reasonably be expected to lead to, a Takeover Proposal, (ii) participate in any discussions or negotiations with any Person regarding any Takeover Proposal or (iii) enter into any agreement related to any Takeover Proposal. 
		

		
			(b)       The Company or the Seller, as applicable, shall promptly notify Parent, orally and in writing if, and in no event later than two (2) business days after, any proposal, offer, inquiry or other contact is received by, any information is requested from, or any discussions or negotiations (or continuation of discussions or negotiations) are sought to be initiated with, the Company, or the Seller in respect of any Takeover Proposal, and shall, in any such notice to Parent, indicate the identity of the Person making such proposal, offer, inquiry, request or other contact and the terms and conditions of any proposals or offers or the nature of any inquiries, requests or other contacts (and shall include with such notice copies of any written materials received from or on behalf of such Person relating to such proposal, offer, inquiry, request or other contact). 
		

		
			(c)       For purposes of this Agreement, “Takeover Proposal” means any inquiry, proposal or offer from any Person relating to any (A) direct or indirect acquisition (whether in a single transaction or a series of related transactions) of assets of the Company, (B) direct or indirect acquisition (whether in a single transaction or a series of related transactions) of Interests or other equity interests in the Company or (C) merger, consolidation, share exchange, business combination, recapitalization, liquidation, dissolution or similar transaction involving the Company, other than the Transactions. 
		

		
			
		

		
			

		 

		

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			Section 6.3.       Commercially Reasonable Efforts.
		

		
			(a)       Subject to the terms and conditions of this Agreement (including Section 6.3(c)), each of the parties hereto shall cooperate with the other parties and use their commercially reasonable efforts to (i) take, or cause to be taken, all actions, and do, or cause to be done, all things, necessary, proper or advisable to cause the conditions to Closing to be satisfied as promptly as practicable and to consummate the Transactions, including (A) notifying each third party to the Change In Control Customer Contracts listed on Section 4.14(b) of the Company Disclosure Schedules of the Transactions and requesting a waiver, if required, of any termination rights arising as a result of the Transactions from each such party, and (B) preparing and filing promptly and fully all documentation to effect all necessary filings, notices, petitions, statements, registrations, submissions of information, applications and other documents, and (ii) obtain all approvals, consents, registrations, permits, authorizations and other confirmations from any Governmental Authority or third party necessary, proper or advisable to consummate the Transactions.  
		

		
			(b)       Each of the parties hereto shall use commercially reasonable efforts to (i) cooperate in all respects with each other party in connection with any filing or submission with or to a Governmental Authority in connection with the Transactions and in connection with any investigation or other inquiry by or before a Governmental Authority relating to the Transactions, including any proceeding initiated by a private party, and (ii) keep the other parties informed in all material respects and on a reasonably timely basis of any material communication received by such party from, or given by such party to, any Governmental Authority and of any material communication received or given in connection with any proceeding by a private party, in each case regarding any of the Transactions. Subject to applicable Laws relating to the exchange of information, each of the parties hereto shall have the right to review in advance, and to the extent reasonably practicable each will consult the other on, all information relating to the other party, as the case may be, that appears in any filing made with, or written materials submitted to, any third party and/or any Governmental Authority in connection with the Transactions. 
		

		
			(c)       In furtherance and not in limitation of the covenants of the parties contained in this Section 6.3, each of the parties hereto shall use commercially reasonable efforts to resolve such objections, if any, as may be asserted by a Governmental Authority or other Person with respect to the Transactions. Notwithstanding the foregoing or any other provision of this Agreement, the Company shall not, without Parent’s prior written consent, commit to any divestiture transaction or agree to any change of or restriction on its business, and nothing in this Section 6.3 shall (i) limit any applicable rights a party may have to terminate this Agreement pursuant to Section 8.1 so long as such party has up to then complied in all material respects with its obligations under this Section 6.3 or (ii) require Parent to offer, accept or agree to (A) dispose of or hold separate any part of its or the Company’s business, operations, assets or product lines (or a combination of Parent’s and the Company’s respective businesses, operations, assets or product lines), (B) not compete in any geographic area or line of business, and/or (C) restrict or change the manner in which, or whether, Parent or the Company or any of their Affiliates may carry on business in any part of the world. 
		

		
			(d)       The commercially reasonable efforts required the Company and its Subsidiaries and the Seller under this Section 6.3 shall not require any such party to commence any litigation or arbitration proceeding, to offer or grant or otherwise provide any accommodation (financial or otherwise) to any Person, or to provide financing to Parent for the completion of the Transactions. 
		

		
			

		 

		

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			Section 6.4.       Public Announcements.   The initial press release with respect to the execution of this Agreement shall be a joint press release to be reasonably agreed upon by Parent and the Seller. Thereafter, none of the Company, the Seller or Parent shall issue or cause the publication of any press release or other public announcement (to the extent not previously issued or made in accordance with this Agreement) with respect to the Sale, this Agreement or the other Transactions without the prior consent of the other party (which consent shall not be unreasonably withheld or delayed), except as may be required by Law or in the case of Parent by its listing agreement with any securities exchange as determined in its good faith judgment (in which case such party shall not issue or cause the publication of such press release or other public announcement without prior consultation insofar as practicable with the Seller).  
		

		
			Section 6.5.       Access to Information; Confidentiality.  Subject to applicable Laws relating to the exchange of information, the Company agrees that, prior to the Closing or the termination of this Agreement in accordance with Article VIII, Parent and its Representatives shall be entitled to make such investigation of the properties, assets, businesses and operations of the Company and its Subsidiaries and such examination of the books, records and financial condition of the Company and its Subsidiaries as Parent reasonably requests, and to make extracts and copies of such books and records (provided, however, that the foregoing shall not require the Company or its Subsidiaries to provide any such access or disclose any information to the extent the provision of such access or such disclosure would contravene applicable Law or jeopardize the loss of an attorney-client privilege). No investigation by Parent prior to or after the date of this Agreement shall diminish or obviate any of the representations, warranties, covenants or agreements of the Company or the Seller contained in this Agreement or the Company Documents. Any such investigation by Parent shall occur during the normal business hours of the Company and its Subsidiaries but shall not unreasonably interfere with any of the businesses or operations of the Company or its Subsidiaries. In order that Parent may have full opportunity to make such physical, business, accounting and legal review, examination or investigation as it may reasonably request regarding the affairs of the Company and its Subsidiaries, the Company shall use commercially reasonable efforts to cause its Representatives to cooperate fully with Parent’s Representatives in connection with such review and examination. Parent and its Representatives shall hold information received from the Company and its Subsidiaries pursuant to this Section 6.5 in confidence in accordance with the terms of the Confidentiality Agreement. 
		

		
			Section 6.6.       Notification of Certain Matters.  The Company and the Seller shall give prompt written notice to Parent, and Parent shall give prompt written notice to the Seller, of (i) any notice or other communication received by such party from any Governmental Authority in connection with the Transactions or from any Person alleging that the consent of such Person is or may be required in connection with the Transactions, (ii) any actions, suits, claims, investigations or proceedings commenced or, to such party’s knowledge, threatened against or otherwise involving such party or any of its Subsidiaries or Affiliates which relate to the Transactions, (iii) the discovery of any fact or circumstance that, or the occurrence or nonoccurrence of any event the occurrence or non-occurrence of which, would cause any representation or warranty made by such party contained in this Agreement (A) that is qualified as to materiality to be untrue or (B) that is not so qualified to be untrue in any material respect or, in the case of the Company would cause any of the information provided in the Company Disclosure Schedules to not be true and correct as of the time such information was provided in light of such discovery or occurrence or non-occurrence, and (iv) any material failure of such 
		

		
			
		

		
			

		 

		

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			party to comply with or satisfy any covenant or agreement to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant to this Section 6.6 shall not (x) cure any breach of any representation of warranty of the party giving such notice or any non-compliance by the party giving such notice with any covenant, agreement or other provision contained in this Agreement or (y) limit the remedies available to the party receiving such notice in respect of such breach or non-compliance. 
		

		
			Section 6.7.       Fees and Expenses.   Except as may otherwise be provided herein, all fees and expenses incurred in connection with this Agreement, the Sale and the Transactions shall be paid by the party incurring such fees or expenses, whether or not the Sale is consummated. 
		

		
			Section 6.8.       Tax Matters.  
		

		
			(a)       The Seller shall, at its own expense, prepare and file or cause to be prepared and filed all Pass-Through Tax Returns that are required to be filed by or with respect to the Company for any Pre-Closing Tax Period or Straddle Period.  The Seller shall deliver to Parent copies of each such Pass-Through Tax Return at least twenty (20) days prior to the due date for filing such Pass-Through Tax Return, and shall permit Parent to review and comment on such Tax Return prior to filing and the Seller shall consider Parent’s comments in good faith. 
		

		
			(b)       The Company or any of its Subsidiaries, as applicable, shall prepare (or cause to be prepared) all Tax Returns (other than any Pass-Through Tax Return described in Section 6.8(a)) of the Company or its Subsidiaries for Pre-Closing Tax Periods.  All such Tax Returns shall be prepared in a manner consistent with past practice; provided, that there is a reasonable basis for the positions claimed on such Tax Returns.  The Company or any of its Subsidiaries, as applicable, shall deliver to Parent, in the case of any such Tax Return required to be filed on or prior to the Closing Date, or to the Seller, in the case of any such Tax Return required to be filed after the Closing Date, copies of each such Tax Return at least twenty (20) days prior to the due date for filing such Tax Return, and shall permit Parent or the Seller, as applicable, to review and approve such Tax Return prior to filing (which approval shall not be unreasonably withheld or delayed).  To the extent that any such Tax Return is required to be filed on or prior to the Closing Date, the Seller shall cause the Company or any of its Subsidiaries, as applicable, to timely file such Tax Return.  If any such Tax Return is required to be filed by the Company or any of its Subsidiaries after the Closing Date, Parent shall cause the Company or any of its Subsidiaries, as applicable, to timely file such Tax Return.  If the parties have not resolved any dispute relating to any Tax Return governed by this Section 6.8(b) prior to the due date for filing such Tax Return, then the Seller or Parent, as applicable, shall file (or cause to be filed) such Tax Return as prepared by the Company or any Subsidiary of the Company, as applicable, but such filing shall not prejudice the rights of any party to pursue such dispute.  The Company or any of its Subsidiaries, as applicable, shall timely pay (or cause to be paid) to the applicable Taxing Authority all Taxes shown to be due on any Tax Return described in this Section 6.8(b);  provided that, with respect to any Tax Return required to be filed after the Closing Date, the Seller shall pay to Parent the amount of Taxes for which the Seller is responsible pursuant to Section 9.2(a)(iii) not later than five (5) days prior to the due date for filing such Tax Return (taking into account all extensions properly obtained), notwithstanding any dispute with respect to such Tax Return.
		

		
			
		

		
			

		 

		

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			(c)       Following the Closing, the Company or any of its Subsidiaries, as applicable, shall prepare (or cause to be prepared) and file (or cause to be filed) when due (taking into account all extensions properly obtained) all Tax Returns (other than any Pass-Through Tax Return described in Section 6.8(a)) required to be filed by or with respect to the Company or any of its Subsidiaries after the Closing Date in respect of any Straddle Period.  In the case of an income Tax Return with respect to a Straddle Period, a copy thereof shall be delivered to the Seller at least twenty (20) days prior to the due date for filing such Tax Return, the Seller shall be permitted to review and approve such Tax Return prior to filing (which approval shall not be unreasonably withheld or delayed) and if the parties have not resolved any dispute relating to any such Tax Return prior to the due date for filing such Tax Return, then the Company or any of its Subsidiaries, as applicable, shall file such Tax Return as prepared, but such filing shall not prejudice the rights of any party to pursue such dispute. The Seller shall remit to Parent the amount of Taxes for which the Seller is responsible pursuant to Section 9.2(a)(iii) (taking into account Section 6.8(d)) not later than five (5) days prior to the due date for filing all Tax Returns described in this Section 6.8(c) (taking into account all extensions properly obtained), notwithstanding any dispute with respect to such Tax Return.
		

		
			(d)       In order to apportion appropriately any Taxes relating to Straddle Periods, the parties hereto will, to the extent permitted by applicable Law, elect with the relevant Taxing Authority to treat for all purposes the Closing Date as the last day of a taxable period of the Company and its Subsidiaries (a “Short Period”). In any case where applicable Law does not permit the Company or any of its Subsidiaries to treat the Closing Date as the last day of a Short Period, then for purposes of this Agreement, the portion of each Tax that is attributable to the operations of the Company or any of its Subsidiaries for the period which would have qualified as a Short Period if such election had been permitted by applicable Law (an “Interim Period”) shall be (i) in the case of any property Tax, ad valorem Tax, or exemption, allowance or deduction that is calculated on an annual basis (including, but not limited to, depreciation and amortization deductions), the total amount of such Tax or item for the period in question multiplied by a fraction, the numerator of which is the number of days in the Interim Period, and the denominator of which is the total number of days in such Straddle Period, and (ii) in the case of any Tax or item not described in clause (i), the Tax that would be due with respect to the Interim Period if such Interim Period were a Short Period determined based upon an interim closing of the books of the Company or any of its Subsidiaries, as applicable. Notwithstanding the foregoing, any Tax attributable to actions taken or allowed by Parent on the Closing Date but after the time of Closing that are outside the ordinary course of business and are not expressly contemplated by this Agreement shall be borne by Parent and not by the Seller. 
		

		
			(e)       Tax Contests. 
		

		
			(i)       The Seller shall have the right to control, through counsel of its own choosing, the defense or settlement of any claim or proceeding relating to a Tax matter for a Pre-Closing Tax Period; provided that the Seller (i) shall keep Parent apprised of all developments relating to such claim or proceeding, (ii) shall provide Parent with copies of all correspondence from any Taxing Authority relating to any such claim or proceeding, (iii) shall provide Parent in advance with any proposed submission relating to such claim or proceeding, (iv) shall consult with Parent in good faith concerning any such submission and the conduct of the proceeding, and (v) shall not finally settle any such claim or proceeding without the prior written consent of Parent (which consent shall not be unreasonably withheld or delayed).
		

		
			
		

		
			

		 

		

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			(ii)      Parent shall have the right to control, through counsel of its own choosing, the defense or settlement of any claim or proceeding relating to a Tax matter other than for a Pre-Closing Tax Period; provided that, with respect to any such matter for which the Seller could be liable under the indemnification provisions hereunder, Parent (i) shall keep the Seller apprised of all developments relating to such claim or proceeding, (ii) shall provide the Seller with copies of all correspondence from any Taxing Authority relating to any such claim or proceeding, (iii) shall provide the Seller in advance with any proposed submission relating to such claim or proceeding, (iv) shall consult with the Seller in good faith concerning any such submission and the conduct of the proceeding, and (v) shall not finally settle any such claim or proceeding without the prior written consent of Seller (which consent shall not be unreasonably withheld or delayed).  
		

		
			(iii)     In the event of any conflict between the terms of this Section 6.8(e) and Section 9.5, the terms of this Section 6.8(e) shall govern. 
		

		
			(f)       Each party hereto agrees to co-operate fully, as and to the extent reasonably requested by the other party, in connection with the filing of any Tax Returns, any audit, litigation or other proceeding with respect to Taxes. The parties further agree, upon request, to use their commercially reasonable efforts to obtain any certificate or other document from any Taxing Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to the transactions contemplated in this Agreement. 
		

		
			(g)       Without the prior written consent of the Seller, which consent may be withheld in the sole discretion of the Seller, none of Parent, the Company, or any Subsidiary shall file any amended Pass-Through Tax Return with respect to any Pre-Closing Tax Period, unless otherwise required by applicable Law. Without the prior written consent of the Seller, which consent shall not be unreasonably withheld or delayed, none of Parent, the Company, or any Subsidiary shall file any amended Tax Return (other than a Pass-Through Tax Return) with respect to any Pre-Closing Period or any amended Tax Return with respect to the pre-Closing portion of any Straddle Period for which the Seller would reasonably expect to be liable under the indemnification provisions hereunder, unless otherwise required by applicable Law. 
		

		
			(h)       Except to the extent included in the calculation of the Closing Date Net Working Capital, any Tax refunds actually received (in cash or through a reduction in Tax paid) by the Company or any of its Subsidiaries for any Pre-Closing Tax Period or the pre-Closing portion of any Straddle Period shall be for the account of the Seller, and any such refund (net of all out-of-pocket expenses, including Taxes, and without interest) shall be paid over to the Seller not later than five (5) business days after receipt. 
		

		
			Section 6.9.       Related Party Transactions.   Except with respect to the transactions, agreements, relationships and payments set forth on Exhibit 6.9, which shall remain in place, as of the Closing Date, all transactions, agreements, relationships and payments set forth on Section 4.21 of the Company Disclosure Schedules shall be terminated without any further obligation of the Company or any of its Subsidiaries. 
		

		
			
		

		
			

		 

		

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			Section 6.10. Post-Closing Access; Preservation of Records.
		

		
			(a)       On the Closing Date, the Seller shall deliver or cause to be delivered to Parent all contracts, books, records, Tax Returns, documents and files of the Company and its Subsidiaries in the possession of the Seller, including records and files stored on computer disks or tapes or any other storage medium relating to the business and operations of the Company and its Subsidiaries. From and after the Closing, Parent will make or cause to be made available to the Seller all books, records, Tax Returns and documents of the Company and its Subsidiaries relating to the period prior to the Closing during regular business hours as may be reasonably necessary for (i) investigating, settling, preparing for the defense or prosecution of, defending or prosecuting any Legal Action (other than a Legal Action between the parties to this Agreement), (ii) preparing reports to any Governmental Authority or (iii) such other purposes for which access to such documents is reasonably believed by the Seller to be necessary, including preparing and delivering any accounting or other statement provided for under this Agreement or otherwise, preparing Tax Returns or responding to or disputing any Tax audit; provided, however, that access to such books, records, Tax Returns and documents shall only be upon reasonable notice and shall not unreasonably disrupt personnel and operations of the business of the Company or its Subsidiaries and shall be at the Seller’s sole cost and expense. Parent will cause the Company and its Subsidiaries to maintain and preserve all such Tax Returns, books, records and other documents for a period equal to Parent’s standard retention period. 
		

		
			(b)       From and after the Closing, the Seller will make or cause to be made available to Parent all books, records and documents of the Seller relating to the business of the Company and its Subsidiaries during regular business hours for the same purposes, to the extent applicable, as set forth in Section 6.10(a); provided, however, that access to such books, records and documents shall only be upon reasonable notice and shall not unreasonably disrupt personnel and operations of the business of the Seller and shall be at Parent’s sole cost and expense. The Seller will maintain and preserve all such Tax Returns, books, records and other documents for a period equal to the Seller’s standard retention period.  The provisions of this Section 6.10(b) shall not affect the obligations of the Seller pursuant to Section 6.10(a) hereof.  
		

		
			Section 6.11. Parent’s Obligations with Respect to Employee Benefits.  
		

		
			(a)       After the Closing Date, subject to the other provisions of this Section 6.11, Parent agrees that individuals who are employees of the Company or its Subsidiaries immediately prior to the Closing (“Continuing Employees”) shall remain on the Company’s payroll system and shall be entitled to receive their current salaries and benefits under Company Benefit Plans (but excluding any benefits under the arrangements described in Section 4.12(a)(1)(c) of the Company Disclosure Schedules) until such date, as is mutually agreed upon by Parent and the Company, upon which the Company’s payroll and benefits are able to be integrated with those of Parent, which shall in no case be later than ninety (90) days following the Closing (the “Continuation Period”). Following the end of the Continuation Period until the first anniversary following the Closing, Continuing Employees shall be entitled to receive benefits under the employee benefit plans of Parent (subject to the terms and conditions of such employee benefit plans) that are available to similarly situated employees of Parent. In addition, Parent agrees to cause the Company and its Subsidiaries to give Continuing Employees service credit for all periods of employment with the Company or any of its Subsidiaries prior to the Closing Date for purposes of vesting and eligibility under any plan adopted or maintained by the Company or its Subsidiaries after the Closing Date in which such employees participate, but only to the extent required by Law and to the extent credited under a comparable Company Plan or applicable plan of Parent; provided, however, that such service shall not be recognized under 
		

		
			
		

		
			

		 

		

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			defined benefit pension plans or to the extent that such recognition would result in any duplication of benefits. With respect to the plan year in which the Closing occurs, Parent agrees to cause the Company to (i) waive any limitations with respect to Continuing Employees regarding preexisting conditions and (ii) give full credit for any co-payments made and deductibles fully or partially satisfied prior to the Closing Date under any welfare or other applicable employee benefit plans maintained by the Company or any of its Subsidiaries after the Closing Date for the benefit of eligible Company employees, but only to the extent that such limitations were waived and credit was given under the terms of the analogous Company Plan prior to the Closing Date. 
		

		
			(b)       During the period commencing on the date hereof and ending at the Closing, Parent and the Seller shall consult with each other before issuing any communications or making any public statements to employees of the Company or its Subsidiaries regarding the effect of this Agreement and the transactions contemplated hereby on their continued employment, and Parent and the Seller shall cooperate in good faith to determine whether any notice may be required under WARN, any successor United States federal Law, or any other applicable plant closing notification law with respect to a layoff or plant closing relating to the business of the Company or any of its Subsidiaries to employees of the Company or its Subsidiaries as a result of the transactions contemplated by this Agreement. Parent shall assume all obligations and liabilities for the provision of notice or payment in lieu of notice or any applicable penalties with respect to the Continuing Employees under such worker notification laws arising as a result of actions taken by Parent after the Closing Date, so long as the Seller provides all information arising on or prior to Closing reasonably necessary to so comply. Parent shall assume all obligations and liabilities for the provision of notice or payment in lieu of notice or any applicable penalties with respect to the employees of the Company or its Subsidiaries that are not Continuing Employees under such worker notification laws arising as a result of actions taken by Parent on, prior to, or after the Closing Date. The Seller shall retain or assume all obligations and liabilities for the provision of notice or payment in lieu of notice or any applicable penalties with respect to the employees of the Company or its Subsidiaries under such worker notification laws arising as a result of actions taken by the Seller on or prior to the Closing Date. The Seller shall promptly provide Parent with such information as is reasonably requested by Parent in order to determine whether any actions taken by the Seller prior to the Closing Date will, if aggregated with actions that may be taken by Parent or its Affiliates after the Closing Date, require the provision of notice or payment in lieu of notice to the Continuing Employees. 
		

		
			(c)       To the extent permitted under applicable Law, the Company will permit employees of the Company and its Subsidiaries to carry over and take up to five (5) accrued or earned, but unused, vacation days or time off with pay in accordance with the applicable policies as in effect as of the date of this Agreement, to the extent such earned, but unused, vacation days and time off with pay is reflected as a current liability for purposes of the Closing Date Net Working Capital. 
		

		
			(d)       It is understood and agreed between the parties hereto that all provisions contained in this Section 6.11 are included for the sole benefit of the respective parties hereto and do not and shall not create any right in any other person, including any employee of the Company or its Subsidiaries, any participant in any benefit or compensation plan or any beneficiary thereof. Nothing in this Section 6.11 constitutes a contract of employment or guarantees any person continued employment or particular compensation or employee benefits 
		

		
			
		

		
			

		 

		

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			after the Closing. In addition, nothing contained herein shall (i) be treated as an amendment of any benefit plan, policy or program, or (ii) give any third party any right to enforce the provisions of this Section 6.11.  
		

		
			Section 6.12. Director and Officer Indemnification.   
		

		
			(a)       For six (6) years from and after the Closing, Parent shall cause the Company and its Subsidiaries to maintain indemnification provisions in its organizational documents that are no less favorable to the Managers and officers of the Company and its Subsidiaries who held any such position prior to the Closing (the “D&O Indemnified Parties”) than those in effect with respect to the Company and the applicable Subsidiary of the Company immediately prior to the execution of this Agreement. For the avoidance of doubt, Parent’s obligations under this Section 6.12 shall include the obligation to honor (or cause another of its Affiliates to honor) the Company’s and its Subsidiaries’ indemnification and other obligations referenced in this Section 6.12 in circumstances where the Company or the applicable Subsidiary of the Company fails to honor, or is incapable of honoring, such obligations. 
		

		
			(b)       Parent hereby acknowledges that certain D&O Indemnified Parties may have rights to indemnification, advancement of expenses and/or insurance provided by Persons other than the Company or its Subsidiaries (collectively, the “Indemnitors”).  Parent hereby agrees (i) that Parent, the Company, and the Company’s Subsidiaries are the indemnitors of first resort (i.e., their obligations to the D&O Indemnified Parties are primary and any obligation of the Indemnitors are secondary), (ii) that Parent, the Company, and the Company’s Subsidiaries shall be required to honor their respective obligations as set forth in subsection (a) above, without regard to any rights the D&O Indemnified Party may have against the Indemnitors, and (iii) that Parent, the Company, and the Company’s Subsidiaries irrevocably waive, relinquish and release the Indemnitors from any and all claims against the Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.  Each of Parent, the Company, and the Company’s Subsidiaries further agree that no advancement or payment by an Indemnitor on behalf of a D&O Indemnified Party with respect to any claim for which a D&O Indemnified Party has sought indemnification from the Seller, the Company or any of the Company’s Subsidiaries shall affect the foregoing.  The parties hereto agree the Indemnitors are express third party beneficiaries of the terms of this Section 6.12.  
		

		
			(c)       If subsequent to the Closing, Parent, the Company, any Subsidiary of the Company, or any of their respective successors or assigns, (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity in such consolidation or merger, or (ii) transfers all or substantially all of its properties and assets to any Person, then, and in each case, proper provision shall be made so that the successors and assigns of Parent, the Company, and the Subsidiaries of the Company, as the case may be, honor the obligations set forth in this Section 6.12.  
		

		
			(d)       The obligations of Parent, the Company and the Subsidiaries of the Company under this Section 6.12 shall not be terminated or modified in such a manner so as to adversely affect any Person to whom this Section 6.12 applies without the prior written consent of such affected Person.
		

		
			
		

		
			

		 

		

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			(e)       The provisions of this Section 6.12 shall survive the Closing and are intended to be for the benefit of, and will be enforceable by, each of the Person to whom this Section 6.12 applies and their respective successors, assigns and heirs. 
		

		
			Section 6.13. Veridicus Name.  Seller acknowledges that as between Seller and its Affiliates, on the one hand, and Parent and its Affiliates, on the other, from and after the Closing, Parent and/or its Affiliates have the absolute and exclusive proprietary right to all names, tradenames, trademarks, service names and service marks incorporating the word “Veridicus.”  Seller shall not, and shall cause its Affiliates not to use the word “Veridicus” or any derivation thereof and any corporate symbols or logos related thereto in connection with the offer or sale of any goods or services or otherwise in the conduct of its or their businesses; provided,  however, that, the Seller and its Affiliates may continue to use the Veridicus name to the extent existing as of Closing, in connection with signage, invoices, purchase orders, letterhead, business cards, stationery, promotional brochures, and other promotional correspondence (not including domain names or websites), in each case for a reasonable time, not to exceed three (3) months after Closing.  Within ten (10) days following the Closing Date, Seller shall, and shall cause its Affiliates to, make all filings with the appropriate Governmental Authorities and take such other actions as may be necessary to change the corporate name of the Seller and each of its Affiliates to a name that does not include the word “Veridicus” or any word confusingly similar thereto. 
		

		
			Section 6.14. Change In Control Customer Contracts.   The Company shall, prior to the Closing Date, (i) notify each third party to the Change In Control Customer Contracts listed on Section 4.14(b) of the Company Disclosure Schedules of the Transactions and (ii) request and receive a waiver, if required, of any termination rights arising as a result of the Transactions from each such party. 
		

		
			Section 6.15. Access to Insurance.  With respect to any claim, act, omission, event, circumstance, occurrence or Loss that occurred or existed before the Closing Date, whether known or unknown as of the time of Closing, that would be covered in respect of the Company or any of its Subsidiaries by “occurrence-based” insurance policies maintained by the Seller and/or its Affiliates as of the time of the Closing, (the “Available Insurance Policies”), the Company and its Subsidiaries may, at their option, access, make claims on, claim benefits from or seek  coverage under such Available Insurance Policies, on the terms and subject to the conditions of such Available Insurance Policies. The Seller and its Affiliates will provide the Company such information and other reasonable cooperation and assistance as may be necessary to implement the provisions of this Section 6.15.  
		

		
			Section 6.16. Updated Information Regarding Customers and Suppliers.   As promptly as practicable after the date hereof, but in no event later than five (5) business days prior to the Closing Date, the Seller shall cause the Company to deliver to Parent a list of the top ten (10) customers and the top ten (10) suppliers of the Company and its Subsidiaries, showing the approximate total sales by the Company and its Subsidiaries to each such customer and the approximate total purchases by the Company and its Subsidiaries from each such supplier, during the twelve (12)-month period ending as of the end of the month preceding the date hereof.  
		

		
			Section 6.17. Performance Guarantee Payment.  The Seller shall cause the Company to pay on or prior to the Closing Date the performance guaranty payment due and owing through the Closing Date pursuant to that certain Pharmacy Services Management 
		

		
			

		 

		

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			Agreement, dated April 1, 2015, by and between VRx, LLC and Electrical Workers Health and Welfare Trust (the “IBEW Contract”). The Seller also shall be responsible for (and promptly reimburse VRx, LLC for the making of) any further performance guarantee payment due and owing through the Closing Date pursuant to the IBEW Contract for the period commencing on the Closing Date and ending sixty (60) days thereafter.  
		

		
			ARTICLE VII
		

		
			Conditions Precedent
		

		
			Section 7.1.       Conditions to Each Party’s Obligation to Effect the Sale.  The respective obligations of each party hereto to effect the Sale and consummate the other Transactions shall be subject to the satisfaction (or waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions: 
		

		
			(a)       Certain Regulatory Consents. Parent shall have obtained the Governmental Authority consents identified on Schedule 5.3 hereto; and 
		

		
			(b)       No Injunctions or Restraints. No Law, injunction, order, judgment or ruling enacted, promulgated, issued, entered, amended or enforced by any Governmental Authority, and no arbitration award, enjoining, restraining, preventing or prohibiting consummation of the Sale or making the consummation of the Sale illegal (collectively, “Restraints”) shall be in effect. 
		

		
			Section 7.2.       Conditions to Obligations of Parent.  The obligations of Parent to effect the Sale and consummate the other Transactions are further subject to the satisfaction (or waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions: 
		

		
			(a)      Representations and Warranties.  The representations and warranties of the Company and the Seller contained in this Agreement including, in the Company Disclosure Schedules, that are qualified as to materiality shall be true and correct, and the representations and warranties of the Company contained in this Agreement that are not so qualified shall be true and correct in all material respects, in each case as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date, except to the extent such representations and warranties expressly state that they are as of an earlier date in which case as though made as of such earlier date. 
		

		
			(b)      Performance of Obligations of the Company and the Seller.  The Company and the Seller shall have performed in all material respects all obligations required to be performed by them under this Agreement at or prior to the Closing Date. 
		

		
			(c)      No Company Material Adverse Effect.  No Material Adverse Effect has occurred since the date of this Agreement with respect to the Company. 
		

		
			(d)      No Litigation, Etc. There shall not be any action, investigation, proceeding or litigation instituted, commenced or pending by or before any Governmental Authority or arbitrator that would, or that seeks to or is reasonably likely to, (i) restrain, enjoin, prevent, prohibit or make illegal the acquisition of some or all of the Interests by Parent or the consummation of the Sale or the other Transactions, (ii) impose limitations on the ability of 
		

		
			
		

		
			

		 

		

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			Parent or its Affiliates effectively to exercise full rights of ownership of all Interests following Closing, (iii) restrain, enjoin, prevent, prohibit or make illegal, or impose limitations on, Parent’s or any of its Affiliates’ ownership or operation of all or any material portion of the businesses, properties and assets of the Company and its Subsidiaries, (iv) as a result of the Transactions, restrain, enjoin, prevent, prohibit or make illegal, or impose limitations on, any portion of the businesses or assets of Parent or any of its Subsidiaries, (v) result in a Governmental Investigation being commenced or continued after the Closing or in Governmental Damages being imposed on the Company, the Seller or Parent or any of their respective Affiliates, or (vi) as a result of the Transactions, compel Parent or any of its Affiliates to dispose of any Interests or to dispose of or hold separate any material portion of the business or assets of the Company or any portion of the businesses or assets of Parent and its Subsidiaries. As used herein, (i) “Governmental Damages” shall mean (A) any penalties or fines paid or payable to a Governmental Authority or (B) any restitution paid or payable to a third party, in either case as a result of the (x) conviction (including as a result of the entry of a guilty plea, a consent judgment or a plea of nolo contendere) of the Company of a crime or (y) a settlement with a Governmental Authority for the purpose of closing a Governmental Investigation; provided,  however, that any de minimis penalties, fines or payments shall not be deemed to be Governmental Damages; and (ii) “Governmental Investigation” shall mean an investigation by a Governmental Authority for the purpose of imposing criminal sanctions. 
		

		
			(e)      Required Third Party Consents.  The Company shall have obtained all consents, waivers and approvals, and given all of the notices, required under the Change In Control Customer Contracts and identified in Section 7.2(e) of the Company Disclosure Schedules, each such consent, waiver and approval is in form and substance reasonably satisfactory to Parent and does not require as a term thereof or condition thereto satisfaction of any adverse condition or requirement on the conduct of business by the Company, Parent or any of its Subsidiaries. 
		

		
			(f)      Regulatory Consents.  The Company and the Seller shall have obtained all required regulatory consents, waivers and approvals, and given all notices to Governmental Authorities, identified on Section 7.2(f) of the Company Disclosure Schedules. 
		

		
			(g)      Employment Agreements; Non-Competition and Non-Solicitation Agreements.  Each Employment Agreement shall be in full force and effect, and each individual a party thereto shall be able and willing, as of the Closing, to serve as an employee of the Company pursuant to his or her Employment Agreement. Each Non-Competition and NonSolicitation Agreement and Non-Solicitation Agreement shall be in full force and effect. 
		

		
			(h)      FIRPTA Certificate.  Parent shall have received an affidavit of non-foreign status satisfying the requirements of Section 1445 of the Code from the Seller. 
		

		
			(i)       Requisite Approval.  The Requisite Approval shall have been delivered to Parent and shall remain in full force and effect as of the Closing. 
		

		
			(j)       Resignations and Releases.  Parent shall have received fully executed resignations and releases, in form and substance reasonably satisfactory to Parent, from each director, Manager and officer of the Company and its Subsidiaries, resigning from any and all positions previously held with the Company and its Subsidiaries and releasing the Company,
		

		
			
		

		
			

		 

		

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			Parent and their respective Affiliates from any and all liability arising with respect to pre-Closing matters. 
		

		
			(k)      Assignment of Interests.  The Seller shall have executed and delivered to Parent an assignment of Interests, in form and substance reasonably satisfactory to Parent. 
		

		
			(l)       Change In Control Customer Contracts.  The Company shall have (i) notified each third party to the Change In Control Customer Contracts listed on Section 4.14(b) of the Company Disclosure Schedules of the Transactions and (ii) received a waiver, if required, of any termination rights arising as a result of the Transactions from each such party. 
		

		
			(m)     Company Contracts.  Each of (i) the DMBA Customer Contract, (ii) any one or more other Customer Contracts that individually or in the aggregate generate five percent (5%) or more of the consolidated revenues of the Company and its subsidiaries (on either an annualized basis for 2016 or an actual basis for 2015) and (iii) each Manufacturer Contract in existence on the date hereof shall be in full force and effect, no material default on the part of the Company (or any of its Subsidiaries) or any counterparty thereto shall be in effect in respect of any such Contract, and none of the Company, any of its Subsidiaries, the Seller or Parent shall have received notice of any Person’s intent to terminate any such Contract or change in any material respect its business dealings with the Company pursuant to any such Contract. 
		

		
			(n)      Certification of Closing Conditions.  Parent shall have received a certificate signed by the Seller, each in form and substance reasonably satisfactory to Parent, dated the Closing Date, to the effect that each of the conditions specified above in Sections 7.2(a) through (m) have been satisfied. 
		

		
			(o)      Granite Agreement.  The Granite Agreement shall be in full force and effect and shall not have been terminated by any party thereto pursuant to its terms.  
		

		
			(p)      Release of Liens.  (i) The Bank Lender shall have released and terminated the applicable Liens and security interests in its favor on the assets of the Company and its Subsidiaries, subject only to receipt of the payments referenced in Section 2.1(a)(v) and (ii) all other Persons (including McKesson) who have been granted a Lien (other than a Permitted Lien) on or s security interest in the assets of the Company and/or its Subsidiaries that remains in existence as of the date hereof shall have been released and terminated.  
		

		
			(q)      Other Assignments, etc. Parent shall have received fully executed copies of the consents, waivers, assignments and approvals listed on Section 7.2(q) of the Company Disclosure Schedules.  
		

		
			Section 7.3.       Conditions to Obligation of the Seller.  The obligation of the Seller to effect the Sale and consummate the other Transactions is further subject to the satisfaction (or waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions: 
		

		
			(a)      Representations and Warranties.  The representations and warranties of Parent contained in this Agreement that are qualified as to materiality or Material Adverse Effect shall be true and correct, and the representations and warranties of Parent contained in this Agreement that are not so qualified shall be true and correct in all material respects, in each case 
		

		
			
		

		
			

		 

		

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			as of the date of this Agreement and as of the Closing Date as though made on the Closing Date, except to the extent such representations and warranties expressly relate to an earlier date, in which case as of such earlier date, and the Seller shall have received a certificate signed on behalf of Parent by an executive officer of Parent to such effect. 
		

		
			(b)      Performance of Obligations of Parent.  Parent shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing Date and the Seller shall have received a certificate signed on behalf of Parent by an executive officer of Parent to such effect. 
		

		
			(c)      Certification of Closing Conditions.   The Seller shall have received a certificate signed by an executive officer of Parent duly authorized to execute such instrument in form reasonably satisfactory to the Seller, dated the Closing Date, to the effect that each of the conditions specified in Section 7.3(a) and Section 7.3(b) has been satisfied.  
		

		
			Section 7.4.       Frustration of Closing Conditions.  Neither the Seller nor Parent may rely on the failure of any condition set forth in Section 7.1,  7.2 or 7.3, as the case may be, to be satisfied as grounds for its not consummating the Sale when otherwise required hereunder if such failure was caused by such party’s failure to use its commercially reasonable efforts to consummate the Sale and the other Transactions, as required by and subject to the provisions of Section 6.3.  
		

		
			ARTICLE VIII
		

		
			Termination
		

		
			Section 8.1.       Termination.  This Agreement may be terminated and the Transactions abandoned at any time prior to the Closing: 
		

		
			(a)       by the mutual written consent of the Seller and Parent; or
		

		
			(b)       by either of the Seller or Parent: 
		

		
			(i)        if the Sale shall not have been consummated on or before December 31, 2016 (the “Walk-Away Date”); provided that the right to terminate this Agreement under this Section 8.1(b)(i) shall not be available to a party if the failure of the Sale to have been consummated on or before the Walk-Away Date was primarily due to the failure of such party to perform any of its obligations under this Agreement; or 
		

		
			(ii)       if there shall be a final nonappealable order of a Governmental Authority preventing consummation of the Sale or there shall be any Law enacted or deemed applicable to the Sale that makes consummation of the Sale illegal; or 
		

		
			(c)       by Parent: 
		

		
			(i)       if the Company or the Seller shall have breached any of its representations or warranties (or if any of the representations or warranties of the Company or the Seller set forth in this Agreement shall fail to be true and correct) or if the Company or the Seller has breached or failed to perform or adhere to any of its covenants or agreements set forth in this Agreement, which breach or failure (A) would 
		

		
			

		 

		

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			give rise to the failure of a condition set forth in Section 7.2(a) or (b) and (B) is not cured by the Company or the Seller, as applicable, within ten (10) days following receipt of written notice from Parent of such breach or failure or is incapable of being cured before the Walk-Away Date; 
		

		
			(ii)        if a Material Adverse Effect has occurred since the date of this Agreement with respect to the Company; or 
		

		
			(iii)       if the Granite Agreement shall have been terminated by any party thereto in accordance with its terms. 
		

		
			(d)       by the Company or the Seller if Parent shall have breached any of its representations or warranties (or if any of the representations or warranties of Parent set forth in this Agreement shall fail to be true and correct) or if Parent has breached or failed to perform or adhere to any of its covenants or agreements set forth in this Agreement, which breach or failure (A) would give rise to the failure of a condition set forth in Section 7.3(a) or (b) and (B) is not cured by Parent within ten (10) days following receipt of written notice from the Company or the Seller of such breach or failure or is incapable of being cured before the Walk-Away Date. 
		

		
			Section 8.2.       Limitation on Right of Termination.   Notwithstanding anything in Section 8.1 to the contrary, no party may terminate this Agreement (other than pursuant to Section 8.1(a)) if its failure to perform in any material respect any of its obligations or covenants, or the inaccuracy of any of its representations or warranties, under this Agreement has been the principal cause of, or has directly resulted in, the event or condition purportedly giving rise to a right to terminate this Agreement. 
		

		
			Section 8.3.       Effect of Termination.   If this Agreement is terminated in accordance with Section 8.1, this Agreement shall immediately become void and of no further force and effect, without any Liability on the part of any party hereto, except for the provisions of Section 6.4,  Section 6.5,  Section 10.5,  Section 10.6 and Section 10.8 which shall survive termination of this Agreement; provided that nothing herein shall relieve any party from any Liability resulting from fraud or any willful breach of this Agreement prior to such termination. 
		

		
			ARTICLE IX
		

		
			Survival of Representations, Warranties and Covenants; Indemnification
		

		
			Section 9.1.       Survival of Representations, Warranties and Covenants.   The representations and warranties of Parent contained in this Agreement and the Fundamental Representations (other than the representations and warranties of the Company set forth in Section 4.11 (Taxes) and Section 4.19 (Health Care Regulatory Compliance)) shall survive the Closing until the third anniversary of the Closing Date. The representations and warranties of the Company and the Seller contained in this Agreement (other than the Fundamental Representations) shall survive the Closing until the sixteen (16) month anniversary of the Closing Date, provided,  however, that the representations and warranties of the Company set forth in Section 4.11 (Taxes) and Section 4.19 (Health Care Regulatory Compliance) shall survive the Closing until ninety (90) days following the expiration of the applicable statute of limitations. The termination of the representations and warranties provided herein shall not affect the rights of a party in respect of any claim made by such party in a writing received by the other party prior to the expiration of the applicable survival period provided herein. All agreements 
		

		
			

		 

		

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			and covenants contained herein which by their terms contemplate actions or impose obligations following the Closing shall survive the Closing and remain in full force and effect in accordance with their terms.  
		

		
			Section 9.2.       Right to Indemnification.   
		

		
			(a)       Subject in all cases to the limits on indemnification in this Article IX, subsequent to the Closing, the Seller (the “Indemnifying Parties”) shall indemnify Parent, its Affiliates (including the Company and its Subsidiaries), and each of their respective Managers, directors, officers, employees, contractors agents or stockholders and other Representatives (“Parent Indemnified Parties”) against, and hold each of the Parent Indemnified Parties harmless from, any Losses arising out of or from: 
		

		
			(i)       the failure of any representation or warranty of the Company or the Seller in this Agreement to be true and correct as of the date hereof and as of the Closing Date, or if expressly made as of an earlier date, as of such date (without giving effect to any materiality or similar qualification contained or incorporated directly or indirectly in any representation or warranty, other than as set forth in Section 4.6(a) and the first sentence of Section 4.8);  
		

		
			(ii)       the breach of any agreement, covenant or obligation of the Company (prior to the Closing) or the Seller set forth in this Agreement;  
		

		
			(iii)      (A) any Taxes (or the non-payment thereof) of the Company or any of its Subsidiaries (or for which the Company or any of its Subsidiaries could otherwise be liable) for all Pre-Closing Tax Periods (including Taxes attributable to the portion of any Straddle Period ending on the Closing Date and including any Taxes arising by reason of the transactions contemplated hereby or the Closing itself), and (B) Taxes imposed on the Company or any of its Subsidiaries by reason of the application of Treasury Regulation Section 1.1502-6(a) (or any analogous or similar provision of Law) as a result of being a member of a consolidated, combined or unitary group of entities on or before the Closing Date; and 
		

		
			(iv)      any Losses in excess of $100,000 that may be experienced by a Parent Indemnified Party (i) arising from fines or penalties imposed by any Governmental Authority as a result of the failure of the Company to have a business associate agreement with a vendor with whom the Company exchanges personal health information (“PHI”) during any period prior to Closing, or (ii) due to the failure, on or prior to the Closing Date, of  any vendor to which the Company has transmitted on or prior to the Closing Date PHI without a business associate agreement to comply with HIPAA.  
		

		
			(b)       Parent shall indemnify the Seller against, and hold the Seller harmless from, any Losses actually paid to third parties or incurred by the Seller that are incident or related to or arise out of or in connection with:  
		

		
			(i)       the failure of any representation or warranty of Parent in this Agreement to be true and correct as of the date hereof and as of the Closing Date, or if expressly made as of an earlier date, as of such date; and 
		

		
			

		 

		

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			(ii)      the breach of any agreement, covenant or obligation of the Company (after the Closing) or Parent set forth in this Agreement. 
		

		
			Section 9.3.       Escrow; Threshold; Limitations on Indemnity.    
		

		
			(a)       Notwithstanding anything to the contrary contained in this Agreement: 
		

		
			(i)       The maximum Liability of the Seller under Section 9.2(a)(i) (except in respect of the Fundamental Representations) shall be an amount equal to the sum of (i) the Indemnity Escrow Amount and (ii) the Granite Escrow Amount. The sole and exclusive source of recovery of the Parent Indemnified Parties pursuant to Section 9.2(a)(i) (except in respect of the Fundamental Representations) shall be the Escrow Fund and the Granite Escrow Fund, and no Parent Indemnified Party shall have any recourse against the Seller, any of the Seller’s Affiliates, or any other Person in respect of any Losses or claims for indemnification pursuant to Section 9.2(a)(i) (except in respect of the Fundamental Representations). For the avoidance of doubt, the limitations set forth in this Section 9.3(a)(i) shall not apply to any claims for indemnification under Section 9.2(a)(ii) – Section 9.2(a)(iv).  
		

		
			(ii)      The amount in the Escrow Fund shall be released to the Seller, as follows on the date that is five (5) business days following the sixteen (16) month anniversary of the Closing Date (the “Release Date”): the difference, if positive, obtained by subtracting from the remaining funds in the Escrow Fund an amount equal to the aggregate amount of unsatisfied claims for Losses of Parent Indemnified Parties under Section 9.2(a)(i) – Section 9.2(a)(iv) of this Agreement properly made on or prior to the Release Date in accordance with the provisions of this Article IX and the Escrow Agreement and under the analogous provisions of the Granite Agreement properly made on or prior to the release date in accordance with the provisions of the Granite Agreement.  Further, from and after the Release Date, to the extent that (A) any amounts have been withheld in respect of such unsatisfied claims and (B) the applicable underlying claims are resolved in favor of the Indemnifying Parties, such amounts shall be promptly released to the Seller in accordance with this Agreement and the Escrow Agreement.  
		

		
			(iii)     The Parent Indemnified Parties shall have no right to indemnification pursuant to Section 9.2(a)(i) and no payment from the Escrow Fund and the Granite Escrow Fund with respect to any Losses otherwise payable under Section 9.2(a)(i) of this Agreement or Section 9.2(a)(i) of the Granite Agreement shall be made until such time as all such Losses (together with up to $100,000 in Losses under Section 9.2(a)(iv) (without giving effect to the $100,000 limitation set forth therein)) shall aggregate to more than $500,000 (the “Deductible”), after which time the Parent Indemnified Parties shall be entitled to be indemnified against and compensated and reimbursed only for the amount of such aggregate Losses under Section 9.2(a)(i) of this Agreement or Section 9.2(a)(i) of the Granite Agreement that exceed the Deductible; provided, that the Deductible shall not apply to any Losses related to the failure of any of the Fundamental Representations to be true and correct. For the avoidance of doubt, the Deductible shall not apply to any claims for indemnification under Section 9.2(a)(ii) – Section 9.2(a)(iv).  
		

		
			
		

		
			

		 

		

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			(iv)     In no event shall the Seller be liable for any amounts otherwise due and owing under or in respect of this Agreement in excess of the Purchase Price actually received by the Seller. 
		

		
			(v)      No payment from the Escrow Fund and the Granite Escrow Fund with respect to any particular Loss otherwise payable under Section 9.2(a)(i) shall be payable unless such Loss (including any series of related Losses) equals or exceeds $25,000 (the “De Minimis Threshold”); provided, that the De Minimis Threshold shall not apply to any Losses related to the failure of any of the Fundamental Representations to be true and correct. For avoidance of doubt, the De Minimis Threshold shall not apply to any claims for indemnification under Section 9.2(a)(ii) – Section 9.2(a)(iv).  
		

		
			(b)      Sole and Exclusive Remedy. Absent willful and knowing fraud committed by the Company and the Seller, the indemnification provisions contained in this Article IX are intended to provide the sole and exclusive remedy following the Closing as to all money damages for any action arising out of the subject matter of this Agreement (it being understood that nothing in this Section 9.3(b) or elsewhere in this Agreement shall affect the parties’ rights to specific performance or other equitable remedies to enforce the parties’ obligations under this Agreement). 
		

		
			Section 9.4.       No Right of Contribution.   After the Closing, the Indemnifying Parties shall have no right of contribution against Parent or the Company for any breach of any representation, warranty, covenant or agreement of the Company or the Seller. 
		

		
			Section 9.5.       Indemnification Procedures.   
		

		
			(a)       Indemnification Notices. In order to obtain indemnity in respect of a Loss as provided by Section 9.2, a Parent Indemnified Party shall give an “Indemnification Notice” to the Seller. For the purposes hereof, an “Indemnification Notice” shall mean a notice signed by any officer of Parent and delivered to the Seller and (i) stating that Parent has paid, incurred, sustained or accrued, or reasonably anticipates that it will be obligated to pay, incur, sustain or accrue, a Loss against which it is entitled to indemnification hereunder, (ii) specifying in reasonable detail the nature of such Loss (including the calculation thereof or the basis for estimation thereof), the date insofar as practicable such Loss was paid or is expected to be incurred, sustained or accrued or the basis on which it anticipates incurring, sustaining or accruing such Loss, and the nature of the misrepresentation, breach of warranty or covenant, Tax matter or other matter resulting in such Loss or out of which such Loss arose or to which such Loss relates, and (iii) specifying the amount of cash to be delivered to Parent (for the benefit of the pertinent Parent Indemnified Party) as indemnity against each such Loss. If a Loss is anticipated but not yet incurred, sustained or accrued at the time an Indemnification Notice is given, an additional Indemnification Notice shall be given providing such information regarding the Loss incurred, sustained or accrued as was not included in an earlier Indemnification Notice. In the case where a Parent Indemnified Party other than Parent shall seek to obtain the indemnity provided by Section 9.2, Parent shall give an appropriate Indemnification Notice on behalf of such Parent Indemnified Party, provided, that such Parent Indemnified Party has provided to Parent such information as Parent may reasonably request for such purpose. 
		

		
			
		

		
			

		 

		

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			(b)       Third-Party Claims.
		

		
			(i)       Parent shall give the Seller written notice (a “Third Party Claim Notice,” which may be part of an Indemnification Notice) of any claim, assertion or action by or in respect of a third party, including any civil, criminal, administrative, regulatory, investigative or arbitral proceeding (a “Third Party Claim”), as to which a Parent Indemnified Party may request indemnification hereunder or as to which the Deductible may be applied as soon as is practicable and in any event within fifteen (15) days of the time that such Parent Indemnified Party learns of such Third Party Claim; provided, however, that the failure to so notify the Seller shall not affect the rights of the Parent Indemnified Party to indemnification hereunder except to the extent that the Seller (as such) is actually prejudiced by such failure. The Seller shall have the right, at its sole option and expense, to assume control of the defense of any Third Party Claim that relates to any Losses with respect to which the Seller has acknowledged in writing its obligation to provide indemnification for hereunder, and to employ counsel of its choosing in connection therewith, which counsel shall be reasonably satisfactory to Parent; provided, however, that the Seller shall not be entitled to assume the defense of any Third Party Claim (unless otherwise consented to in writing by Parent) if (A) the Third Party Claim relates to or arises in connection with an action, suit, proceeding or claim that is criminal in nature or being brought by a Governmental Authority, (B) the Third Party Claim seeks an injunction restricting the conduct of the Company’s business, (C) the Third Party Claim has a reasonable likelihood of resulting in Losses that would exceed the remaining balance of the Escrow Fund, or (D) the Third Party Claim involves as a claimant a customer, client or supplier of Parent, the Company or any of their respective Affiliates.  
		

		
			(ii)      The Seller shall have thirty (30) days after receipt of a Third Party Claim Notice (or such shorter period of time as may be necessitated by the nature of such Third Party Claim and specified in the Third Party Claim Notice) to notify Parent if the Seller will assume the defense of such Third Party Claim. If the Seller has the right to and elects to assume the defense of any Third Party Claim (or Parent has consented to the Seller’s assumption of such defense), (A) Parent shall have the right, but not the obligation, to participate in the defense of such Third Party Claim and to employ separate counsel of its choosing at Parent’s expense; provided, however, that the fees and expenses of separate counsel retained by Parent shall be paid out of the Escrow Fund if (x) Parent shall have reasonably concluded that a conflict or potential conflict exists between Parent and the Seller or the Seller, or (y) Parent assumes the defense of a Third Party Claim after the Seller has failed to diligently pursue such Third Party Claim; and (B) the Seller shall (w) conduct the defense of such Third Party Claim with reasonable diligence and keep Parent reasonably informed of material developments in the Third Party Claim at all stages thereof, (x) promptly submit to Parent copies of all pleadings, responsive pleadings, motions and other similar legal documents and papers received or filed in connection therewith, (y) permit Parent and its counsel to confer on the conduct of the defense thereof and (z) permit Parent and its counsel an opportunity to review all legal papers to be submitted prior to their submission. 
		

		
			(iii)     Any compromise, settlement or offer of settlement of any Third Party Claim by the Seller shall require the prior written consent of Parent, which consent shall not be unreasonably withheld, conditioned or delayed. Any compromise, settlement or offer of settlement of any Third Party Claim by Parent or any of its Affiliates shall require the prior written consent of the Seller, which consent shall not be unreasonably withheld, conditioned or delayed.
		

		
			
		

		
			

		 

		

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			(iv)     If the Seller fails to notify Parent within thirty (30) days after receipt of a Third Party Claim Notice of its assumption of such Third Party Claim, Parent shall be entitled to assume the defense of such Third Party Claim with the expenses of such defense to be paid out of the Escrow Fund, provided, however, that the Seller may participate in the defense of such Third Party Claim (with the same rights of Parent as are set forth in clause (ii)(B) above) with its own counsel at the expense of the Seller.  
		

		
			(c)       Resolution of Conflicts; Arbitration.  
		

		
			(i)       If the Seller shall object in writing to any claim or claims for indemnification made in any Indemnification Notice within thirty (30) days after delivery of such Indemnification Notice, then the Seller and Parent shall attempt in good faith to agree upon the rights of the respective parties with respect to each of such claims. If the Seller and Parent should so agree, a memorandum setting forth such agreement shall be prepared and signed by both parties. 
		

		
			(ii)      If no such agreement can be reached after good faith negotiation within sixty (60) days after delivery of an Indemnification Notice, either Parent or the Seller may demand arbitration of the matter in accordance with the following provisions of this Section 9.5 unless the amount of the Loss is at issue in pending litigation or arbitration with a third party, in which event arbitration shall not be commenced until such amount is ascertained or both parties agree to arbitration. If such dispute is subject to arbitration, it shall be settled by arbitration conducted in accordance with the rules and procedures then in effect of the American Arbitration Association by one arbitrator mutually agreeable to Parent and the Seller. In the event that, within thirty (30) days after submission of any dispute to arbitration, Parent and the Seller cannot mutually agree on one arbitrator, then, within thirty (30) days after the end of such thirty (30) day period, Parent and the Seller shall each select one arbitrator. The two arbitrators so selected shall select a third arbitrator. If one party but not the other fails to select an arbitrator during this fifteen (15) day period, then the parties agree that the arbitration will be conducted by the one arbitrator selected by the party which has made such a selection. 
		

		
			(iii)     Any such arbitration shall be held in Phoenix, Arizona. The arbitrator shall determine how all expenses relating to the arbitration shall be paid, including the respective expenses of each party, the fees of each arbitrator and the administrative fee of the American Arbitration Association. The arbitrator or arbitrators, as the case may be, shall set a limited time period and establish procedures designed to reduce the cost and time for discovery while allowing the parties an opportunity, adequate in the sole judgment of the arbitrator or majority of the three arbitrators, as the case may be, to discover relevant information from the opposing parties about the subject matter of the dispute. The arbitrator, or a majority of the three arbitrators, as the case may be, shall rule upon motions to compel or limit discovery and shall have the authority to impose sanctions, including attorneys’ fees and costs, to the same extent as a competent court of law or equity, should the arbitrators or a majority of the three arbitrators, as the case may be, determine that discovery was sought without substantial justification or that discovery was refused or objected to without substantial justification. The decision of the arbitrator or a majority of the three arbitrators, as the case may be, as to the validity and amount of any claim for indemnification made in an Indemnification Notice shall be final, binding, and conclusive upon the parties to this Agreement. Such decision shall be written and shall be supported by written findings of fact and conclusions which shall set forth the award, judgment, 
		

		
			

		 

		

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			decree or order awarded by the arbitrator(s). Judgment upon any award rendered by the arbitrator(s) may be entered in any court having jurisdiction. 
		

		
			(iv)     The foregoing arbitration provision shall apply to any dispute between the Seller and a Parent Indemnified Party under this Article IX.  
		

		
			Section 9.6.       Mitigation.   The Parent Indemnified Parties shall use commercially reasonable efforts to mitigate all Losses (other than Losses relating to Taxes) for which such Parent Indemnified Parties are entitled or may be entitled to indemnification under this Article IX, and no Parent Indemnified Party shall be entitled to indemnification for any Losses to the extent directly caused by such Parent Indemnified Party’s failure to mitigate such Losses. 
		

		
			Section 9.7.       No Duplication.   Notwithstanding anything contained in this Agreement to the contrary, any amounts payable pursuant to the Adjustment Amount, the ReCalculated Net Working Capital Adjustment Amount, or the indemnification obligations under this Article IX shall be paid without duplication, and in no event shall any party to this Agreement be indemnified or otherwise made whole under different provisions of this Agreement for the same Loss. 
		

		
			Section 9.8.       Insurance.   The Indemnifying Parties shall make any indemnification payments determined to be payable to the Parent Indemnified Parties hereunder without regard to any expectation that the Parent Indemnified Parties will recover insurance proceeds as a result of the matter giving rise to the claim for which indemnification payments are to be made. The Parent Indemnified Party shall use its commercially reasonable efforts to recover insurance proceeds from any insurance policy held by the Company or its Subsidiaries in respect of periods for which coverage was fully paid by the Company or its Subsidiaries, as the case may be, as of the Closing Date (a “Pre-Closing Insurance Policy”) that may be available to it as a result of the matter giving rise to any indemnification claim of the Parent Indemnified Party; provided that such efforts shall not be a condition precedent to the ability of the Parent Indemnified Party to seek indemnification hereunder. If the Parent Indemnified Party receives any insurance proceeds from a Pre-Closing Insurance Policy as a result of the matter giving rise to any indemnification claim of such Indemnified Party prior to the date upon which the Indemnifying Party is given notice of such claim, then the Indemnifying Party’s indemnification obligation with respect to such claim shall be reduced by the amount of any such insurance proceeds actually received by the Parent Indemnified Party (after deducting from the amount of proceeds so received the aggregate amount of expenses, if any, incurred by the Parent Indemnified Party in procuring such proceeds, and any related increases in insurance premiums or other charge-backs). If the Parent Indemnified Party receives any insurance proceeds from a Pre-Closing Insurance Policy as a result of the matter giving rise to any indemnification claim against the Indemnifying Party after the Indemnifying Party or any guarantor has paid such indemnification claim to an Indemnified Party, then the Parent Indemnified Party shall promptly turn over any such insurance proceeds received to the Indemnifying Party to the extent of the payments made by the Indemnifying Party or any guarantor to the Parent Indemnified Party on the claim (after deducting from the amount of proceeds so received the aggregate amount of expenses, if any, incurred by the Parent Indemnified Party in procuring such proceeds and any related increases in insurance premiums or other charge-backs). 
		

		
			
		

		
			

		 

		

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			Section 9.9.       Tax Treatment of Indemnity Payments.   Any indemnity payment made pursuant to this Article IX shall be treated as an adjustment to the Purchase Price for federal, state, local provincial or foreign income tax purposes unless a contrary treatment is required under applicable Law. 
		

		
			ARTICLE X
		

		
			Miscellaneous
		

		
			Section 10.1. Amendment or Supplement.   At any time prior to the Closing, this Agreement may be amended or supplemented in any and all respects, by written agreement of the parties hereto, authorized by action taken by their respective Boards of Directors or equivalent body, if applicable. 
		

		
			Section 10.2. Extension of Time, Waiver, Etc.   At any time prior to the Closing, any party may, subject to Section 10.1 and applicable Laws, (a) waive any inaccuracies in the representations and warranties of any other party hereto, (b) extend the time for the performance of any of the obligations or acts of any other party hereto or (c) waive compliance by the other party with any of the agreements contained herein or, except as otherwise provided herein, waive any of such party’s conditions. Notwithstanding the foregoing, no failure or delay by the Company, the Seller or Parent in exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right hereunder. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. 
		

		
			Section 10.3. Assignment.  Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, in whole or in part, by operation of applicable Laws or otherwise, by any of the parties without the prior written consent of the other parties, except that (i) Parent may assign or delegate any or all of its rights or obligations under this Agreement to one or more Affiliates of Parent (provided that Parent shall remain liable for its obligations hereunder) and (ii) any party hereto may assign its right to receive a payment entitled to be received by it pursuant to this Agreement. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted assigns. Any purported assignment not permitted under this Section 10.3 shall be null and void. 
		

		
			Section 10.4. Counterparts.  This Agreement may be executed in counterparts (each of which shall be deemed to be an original but all of which taken together shall constitute 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 (including by facsimile or via portable document format (.pdf)). 
		

		
			Section 10.5. Entire Agreement; No Third-Party Beneficiaries.  This Agreement (which term shall be deemed to include the exhibits and schedules hereto and the other certificates, documents and instruments delivered hereunder), the Company Disclosure Schedules and the Confidentiality Agreement (a) constitute the entire agreement, and supersede all other prior agreements and understandings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof and thereof and (b) except as expressly set forth 
		

		
			

		 

		

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			herein, are not intended to and shall not confer upon any Person other than the parties hereto any rights or remedies hereunder. 
		

		
			Section 10.6. Governing Law; Jurisdiction; Waiver of Jury Trial.  
		

		
			(a)       Subject to Section 9.5(c) hereof, this Agreement and its negotiation, execution, performance or non-performance, interpretation, termination, construction and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of, or relate to this Agreement, or the negotiation and performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in connection with this Agreement or as an inducement to enter this Agreement), shall be governed by, and construed in accordance with, the laws of the State of Delaware regardless of Laws that might otherwise govern under any applicable conflict of laws principles. 
		

		
			(b)       Each of the parties hereto (on behalf of itself and its Subsidiaries) hereby knowingly, intentionally and voluntarily irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or related to this Agreement or the Transactions. 
		

		
			Section 10.7. Specific Enforcement.  The Seller and Parent agree that irreparable damage would occur and that the parties would not have an adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Seller and Parent shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any Arizona state court or any federal court of competent jurisdiction located in Phoenix, Arizona without proof of actual damages or otherwise, and without any bond or other security being required of it therefor, this being cumulative and not exclusive and in addition to any other remedy to which they are entitled at law or in equity. 
		

		
			Section 10.8. Consent to Jurisdiction.  Subject to Section 9.5(c) hereof, each of the parties hereto (i) expressly and irrevocably consents to submit itself to the personal jurisdiction of any Arizona state court or any federal court located in Phoenix, Arizona (and each appellate court located in Phoenix, Arizona) with respect to any action or proceeding arising out of any dispute pertaining to this Agreement or any of the Transactions, (ii) agrees that services of any process, summons, notice or document by U.S. mail addressed to him at the address set forth in Section 10.9 shall constitute effective service of such process, summons, notice or document for purposes of any such action or proceeding, (iii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (iv) agrees that it will not bring any action relating to this Agreement or any of the Transactions in any other court (and any appropriate court for the prosecution of any appeal from or against any decision or action thereof), (v) agrees that the Arizona state court and federal court located in Phoenix, Arizona, shall be deemed to be a convenient forum, and (vi) agrees not to assert (by way of motion, as a defense or otherwise), in any such action or proceeding, any claim by any party hereto that is not subject personally to the jurisdiction of such court, that such action or proceeding is improper or that this Agreement or the subject matter of this Agreement may not be enforced in or by such court. 
		

		
			Section 10.9. Notices.   All notices, requests and other communications to any party hereunder shall be in writing and shall be deemed given, made, served or delivered if 
		

		
			

		 

		

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			delivered personally, sent by facsimile (receipt of which is confirmed) or sent by overnight courier (providing proof of delivery) to the parties at the following addresses: 
		

		
			If to Parent, to:
		

		
			Magellan Pharmacy Services, Inc. 
		

		
			4800 Scottsdale Road, Ste #4400 
		

		
			Scottsdale, AZ 85251 
		

		
			Attention: Daniel Gregoire, General Counsel 
		

		
			Facsimile: (860) 507-1990 
		

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

		
			Weil, Gotshal & Manges LLP 
		

		
			767 Fifth Avenue 
		

		
			New York, NY 10153 
		

		
			Attention: Raymond O. Gietz 
		

		
			Facsimile: (212) 310-8007 
		

		
			If to the Company or the Seller, to: 
		

		
			Veridicus Health, LLC 
		

		
			19 East 200 South, Floor 10 
		

		
			Salt Lake City, Utah 84111 
		

		
			Attention: Douglas S. Burgoyne 
		

		
			Facsimile: (801) 990-9885 
		

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

		
			Bennett Tueller Johnson & Deere, LLC 
		

		
			3165 East Millrock Drive, Suite 500 
		

		
			Salt Lake City, Utah 84121 
		

		
			Attention: Reed Rawson 
		

		
			Facsimile: (801) 438-2050 
		

		
			or such other address or facsimile number as such party may hereafter specify by like notice to the other parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5 P.M. in the place of receipt and such day is a business day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding business day in the place of receipt. 
		

		
			Section 10.10. Severability.   If any term or other provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other terms, provisions and conditions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the Transactions is not affected in any manner materially adverse to any party hereto. 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, to
		

		
			
		

		
			

		 

		

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			the fullest extent permitted by applicable Laws, so as to effect the original intent of the parties as closely as possible in an acceptable manner, to the end that the transactions contemplated hereby may, except in respect of such modified provision, be consummated as contemplated hereby. 
		

		
			Section 10.11. Definitions.
		

		
			(a)       As used in this Agreement, the following terms have the meanings ascribed thereto below: 
		

		
			“Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, controls, or is controlled by, or is under common control with, such Person. For this purpose, “control” (including, the correlative terms, “controlled by” and “under common control with”) shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of a Person, whether through the ownership of securities or partnership or other ownership interests, by contract or otherwise. 
		

		
			“Bank Lender” shall mean OneWest Bank.  
		

		
			“business day” shall mean a day except a Saturday, a Sunday or other day on which the SEC or banks in the City of New York are authorized or required by Law to be closed. 
		

		
			“Closing Date Indebtedness” means the amount of aggregate Indebtedness of the Company and its Subsidiaries as of 11:59 p.m. on the day prior to the Closing Date. 
		

		
			“Closing Date Net Working Capital” means, as of 11:59 p.m. on the day prior to the Closing Date or, if the Closing Date is not the first business day of a month, 11:59 p.m. on the last day of the month preceding the month in which the Closing occurs, (a) the aggregate amount of current assets of the Company and its Subsidiaries as of such time (excluding intercompany receivables), minus (b) the aggregate amount of current liabilities of the Company and its Subsidiaries as of such time (excluding (i) intercompany payables, (ii) all Indebtedness, (iii) all Transaction Expenses), determined in accordance with Exhibit 10.11(a) hereto, which sets forth an illustrative calculation of the Company’s net working capital and the respective components thereof. 
		

		
			“Closing Date Net Working Capital Target” means One Million Eight Hundred Sixteen Thousand Dollars ($1,816,000), calculated in accordance with Exhibit 10.11(a) hereto. 
		

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

		
			“Collar Amount” means $40,000.00. 
		

		
			“Company Documents” shall mean each agreement, document or instrument or certificate contemplated by this Agreement or to be executed by the Company in connection with the transactions contemplated by this Agreement (including, the Company Disclosure Schedules). 
		

		
			“Confidentiality Agreement” means the Confidentiality Agreement between Parent and the Company, dated as of August 2, 2016. 
		

		
			
		

		
			

		 

		

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			“DMBA Customer Contract” means the Management Services Agreement dated November 15, 2010, by and among VRx, LLC, Deseret Mutual Insurance Company, Deseret Mutual Benefit Administrators, and Deseret Mutual Benefit Administrators as trustee of the Deseret Healthcare Employee Benefit Trust, as amended by that certain First Amendment to Management Service Agreement dated June 19, 2012; that certain Addendum to  First Amendment to Management Service Agreement dated January 1, 2015; that certain Second Amendment to Management Service Agreement dated January 1, 2015; that certain Third Amendment to Management Services Agreement dated June 2, 2016; that certain Fourth Amendment to Management Services Agreement dated October 27, 2106; and that certain Fifth Amendment to Management Services Agreement dated November 7, 2016. 
		

		
			“Employment Agreement” means each employment agreement, dated as of the date hereof and effective subject to and as of the Closing, in substantially the form set forth on Exhibit 7.2(g)(i) hereto, between Parent and each individual party thereto. 
		

		
			“Escrow Amount” means the Indemnity Escrow Amount plus the Working Capital Escrow Amount.  
		

		
			“Escrow Fund” means the account(s) in which the Escrow Agent holds the Indemnity Escrow Amount and the Working Capital Escrow Amount. 
		

		
			“FDA” means the U.S. Food and Drug Administration. 
		

		
			“Fundamental Representations” shall mean the representations and warranties of (a) the Company set forth in Section 4.1 (Organization, Power, Standing and Qualification), Section 4.2 (Subsidiaries), Section 4.3 (Capitalization), Section 4.4(a) (Authority), Section 4.11 (Taxes), Section 4.18 (Brokers and other Advisors), Section 4.19 (Health Regulatory Compliance) and Section 4.24 (Certain Payments) and (b) the Seller set forth in Article III.  
		

		
			“GAAP” shall mean generally accepted accounting principles in the United States as of the date hereof. 
		

		
			“Gap Period Pre-Tax Net Income (Loss)” means the product of (x) the net income or net loss of the Company and its Subsidiaries (which shall be calculated on a pre-tax basis) for the entire month in which the Closing occurs and (y) a fraction, the numerator of which is the number of days elapsed from the beginning of such month through (but excluding) the date of Closing and the denominator of which is the number of days in such month. Gap Period PreTax Net Income (Loss) shall be determined in accordance with GAAP, consistently applied by the Company. 
		

		
			  “Governmental Authority” means (i) any federal, state, provincial, municipal, local or foreign government, governmental authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court or tribunal, self-regulatory organization or arbitral or similar forum, (ii) any subdivision or authority of any of the foregoing, or (iii) any quasi-governmental or private body exercising, or entitled to exercise, any regulatory, administrative, executive, judicial, legislative, police, expropriation or taxing authority under or for the account of any of the foregoing. 
		

		
			
		

		
			

		 

		

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			“Governmental Order” means any ruling, order, judgment, settlement, agreement, injunction, decree, writ, stipulation, determination or award, in each case, entered, issued or made by or with any Governmental Authority. 
		

		
			“Granite Escrow Amount” means Two Hundred Thousand Dollars ($200,000). 
		

		
			“Granite Escrow Fund” means the account in which the Escrow Agent holds the Granite Escrow Amount.  
		

		
			“Guaranty” means the guaranty provided by certain members of the Seller to Parent, substantially in the form set forth on Exhibit 10.11(c) hereto. 
		

		
			“Health Regulatory Laws” means any Law relating to health regulatory matters, including: (i) 42 U.S.C. §§ 1320a-7, 7a, and 7b, which are commonly referred to as the “Federal Fraud Statutes;” (ii) 42 U.S.C. § 1395nn, which is commonly referred to as the “Stark Statute;” (iii) 31 U.S.C. §§ 3729-3733, which is commonly referred to as the “Federal False Claims Act;” (iv) HIPAA; (v) any state law regulating the interactions with health care professionals and reporting thereof; (vi) state law regulating insurance, pharmacy benefits administration, third party benefits administration, utilization management, pharmacy distribution, discount pharmacy card administration and any other business conducted by the Company; (vii) state law regulating consumer protection or unfair trade practices, (viii) the Foreign Corrupt Practices Act, or (ix) any federal, state or local statute or regulation relevant to false statements or claims including: (A) making or causing to be made a false statement or representation of a material fact to any Governmental Authority; or (B) knowingly and willfully making or causing to be made any false statement or representation of a material fact for use in determining rights to any benefit, payment or Permit. 
		

		
			“HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health (HITECH) Act, and the regulations promulgated pursuant thereto, including the Transaction cost Set Standards, the Privacy Rules and the Security Rules set forth at 45 C.F.R. Parts 160 and 164. 
		

		
			“Indemnity Escrow Amount” means seven million eight hundred thousand dollars ($7,800,000). 
		

		
			“Indebtedness” as applied to any Person, means, without duplication, all indebtedness of such Person for borrowed money, whether current or funded, or secured or unsecured, including, (a) all indebtedness of any such Person for the deferred purchase price of property or services (including earn-outs), (b) all indebtedness of any such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by any such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (c) all indebtedness of any such Person secured by a purchase money mortgage or other Lien to secure all or part of the purchase price of the property subject to such mortgage or Lien, (d) all obligations under leases which shall have been or must be, in accordance with GAAP, recorded as capital leases in respect of which any such Person is liable as lessee (and the parties hereto agree that all of such capital leases that pertain to the Company and its Subsidiaries that exist as of the date of this Agreement are set forth in Exhibit 10.11(d)), (e) any liability of such Person in respect of funded banker’s acceptances or letters of credit, (f) all interest, fees and other expenses 
		

		
			

		 

		

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			owed with respect to the indebtedness referred to above, and (g) all indebtedness referred to above which is directly or indirectly guaranteed by any such Person or which any such Person has agreed (contingently or otherwise) to purchase or otherwise acquire or in respect of which it has otherwise assured a creditor against loss.  
		

		
			“IRS” means the Internal Revenue Service of the United States.  
		

		
			“Knowledge” in the case of an individual shall mean, with respect to any matter, the actual knowledge of such Person after due inquiry about the matter and, in the case of the Company, shall mean the Knowledge of the individuals identified on Exhibit 10.11(b) and, in the case of Parent, the Knowledge of any of the chief executive officer, the chief operating officer, the chief financial officer, the chief accounting officer and the general counsel of Parent. For purposes hereof, “due inquiry” shall mean such inquiry as is reasonable under the circumstances in accordance with good business practices for an individual in a like position of responsibility with respect to a business of like size and nature when addressing a matter of importance to such business. 
		

		
			“Law” means any federal, state, local, municipal or foreign constitution, treaty, code, statute, law (including common law), ordinance, rule, regulation, official published guidance or Governmental Order, in each case, of any Governmental Authority. 
		

		
			“Legal Action” means any legal, administrative, arbitral, mediation or other proceeding, claim (including counterclaim), suit, action, sanction, audit, hearing or litigation.  
		

		
			“Liability” means any debt, loss, damage, obligation, adverse claim or other liability (whether direct or indirect, known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due, and whether in contract, tort, strict liability or otherwise). 
		

		
			“Liens” shall mean any lien, pledge, mortgage, encumbrance, security interest of any kind, charge or adverse right of any kind or nature whatsoever (including any restriction on the right to vote or transfer any securities, except for such transfer restrictions of general applicability as may be provided under the Securities Act and the rules and regulations promulgated thereunder, and the “blue sky” laws of the various States of the United States). 
		

		
			“Loan Agreement” means that certain Credit Agreement, dated June 19, 2015, entered into by and between the Seller and OneWest Bank N.A.  
		

		
			“Loss” or  “Losses” shall mean any out-of-pocket cost or expense (including reasonable attorneys’ fees and reasonably incurred disbursements and court costs), lost profits, any monetary damages, fines or penalties, and any losses, sustained by such person (including as a consequence of any injunction issued or other equitable relief granted against such person) to the extent that such costs, expenses, lost profits, damages, fines, penalties or losses were reasonably foreseeable consequence of the relevant breach, inaccuracy, or Tax that is subject to indemnification pursuant to Article IX, in each case excluding any exemplary or punitive damages (unless such damages are awarded to a third party against an Indemnified Party as part of a Third Party Claim), regardless of whether such Losses arise as a result of the negligence, strict liability or any other Liability under any theory of Law or equity of, or violation of any Law by, the applicable Indemnifying Party (it being understood that Losses shall include any 
		

		
			

		 

		

			64

		

 

		

			 

		

		

		
			Tax benefits that are not available to Parent or any of its Affiliates (including the Company and its Subsidiaries) by reason of a breach of Section 4.11(k) hereof). 
		

		
			“Manager” shall mean each of Douglas S. Burgoyne, Jeffrey D. Dunn, Whitney Bowman, Drew Johnson, Terry Rodgers, and Susan Winckler, in their capacity as managers of the Company or any of its Subsidiaries, including any of their respective successors.  
		

		
			“Material Adverse Effect” shall mean:  
		

		
			(i)       with respect to the Company, any change, effect, circumstance or development that has, or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the business, operations or financial condition of the Company or its Subsidiaries, taken as a whole, except to the extent any such effect results from: (a) any actions taken (or omitted to be taken) at the written request of Parent; (b) the public announcement of the Transactions contemplated by this Agreement or the identity or nature of the Parent; (c) changes generally affecting the economy, credit, capital or financial markets or political conditions in the United States or elsewhere in the world, including changes in interest and exchange rates, (d) changes that are the result of acts of war (whether or not declared), armed hostilities, sabotage or terrorism, or any escalation or worsening of any such acts of war (whether or not declared), armed hostilities, sabotage, terrorism or similar events; (e) changes, conditions or effects that are the result of factors affecting the industry in which the Company or its Subsidiaries operate; or (f) changes or prospective changes in any Law or GAAP or interpretation or enforcement thereof after the date thereof; provided, however, that any event, change, condition, development, circumstance, effect, factor or occurrence referred to in clauses (c) through (f) above may constitute and shall be taken into account in determining whether or not a Material Adverse Effect has occurred to the extent such event, change, condition, development, circumstance, effect, factor or occurrence has a disproportionate adverse impact on the Company or its Subsidiaries, taken as a whole, as compared to other participants in the industry in which the Company or its Subsidiaries operate (in which case the incremental disproportionate impact or impacts shall be taken into account in determining whether or not a Material Adverse Effect has occurred). 
		

		
			(ii)      with respect to Parent, any material adverse effect on the ability of Parent to consummate the transactions contemplated by this Agreement. 
		

		
			“McKesson” means McKesson Corporation.  
		

		
			“Non-Competition and Non-Solicitation Agreements” means each NonCompetition and Non-Solicitation Agreement, dated as of the date hereof and substantially in the form set forth on Exhibit 7.2(g)(ii) hereto, between Parent and each member of the Seller party thereto. 
		

		
			“Non-Solicitation Agreement” means the non-solicitation agreement, dated as of the date hereof and substantially in the form set forth on Exhibit 7.2(g)(iii) hereto, between Parent and Gauge Capital.  
		

		
			“ordinary course of business” means the ordinary and usual course of day-to-day operations of the business of the Company through the date hereof consistent with past practice.
		

		
			

		 

		

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			“Pass-Through Tax Return” means any income Tax Return filed by or with respect to the Company or any of its Subsidiaries to the extent that (i) the Company or any of its Subsidiaries is treated as a pass-through entity for purposes of such Tax Return and (ii) the results of operations reflected on such Tax Returns are also reflected on the Tax Returns of the Seller or the direct or indirect owners of the Seller. 
		

		
			“Permit” means any governmental or regulatory license, authorization, accreditation, permit, franchise, consent or approval. 
		

		
			“Person” shall mean an individual, a corporation, a limited liability company, a partnership, an association, a trust or any other entity, including a Governmental Authority. 
		

		
			“Pre-Closing Tax Period” means any taxable period ending on or before the Closing Date. 
		

		
			“Program” means the Medicare and Medicaid programs and any other state or federal health care program. 
		

		
			“Provider” means any and all physicians or medical groups, Independent Practice Associations, Preferred Provider Organizations, exclusive provider organizations, specialist physicians, dentists, optometrists, audiologists, pharmacies and pharmacists, radiologists or radiology centers, laboratories, mental health professionals, chiropractors, physical therapists, any hospital, skilled nursing facilities, extended care facilities, and any other health care or services facilities, treatment centers or suppliers, including without limitation ancillary, allied or specialty facilities, practitioners or centers. 
		

		
			“Straddle Period” means any taxable period beginning on or prior to and ending after the Closing Date. 
		

		
			“Subsidiary” when used with respect to any party, shall mean any corporation, limited liability company, partnership, association, trust or other entity the accounts of which would be consolidated with those of such party in such party’s consolidated financial statements if such financial statements were prepared in accordance with GAAP, as well as (except where reference is made to the party’s financial statements) any other corporation, limited liability company, partnership, association, trust or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power (or, in the case of a partnership, more than 50% of the general partner interests) are, as of such date, owned by such party or one or more Subsidiaries of such party or by such party and one or more Subsidiaries of such party. 
		

		
			 “Taxing Authority” means the IRS and any other Governmental Authority responsible for the administration of any Tax. 
		

		
			“Transaction Expenses” means all expenses incurred or to be incurred (prior to, on or after the Closing Date) by the Company, any of its Subsidiaries or the Seller in connection with the negotiation, preparation and execution of this Agreement and the consummation of the Transactions, and to the extent not paid prior to the Closing, including: (i) all brokerage commissions, fees and disbursements, (ii) all fees and disbursements of attorneys, accountants and other advisors and service providers, (iii) all bonuses or other similar amounts, if any, 
		

		
			

		 

		

			66

		

 

		

			 

		

		

		
			payable by or on behalf of the Company, any of its Subsidiaries or the Seller on or prior to the Closing resulting from this Agreement or the consummation of the Transactions (including any sale, “stay-around,” retention, change of control or similar bonuses, payments or benefits), and (iv) any payroll, social security, unemployment or other Taxes or other amounts required to be paid by the Company or any of its Subsidiaries in connection with any of the items referred to in clause (iii). 
		

		
			“Transactions” refers collectively to the transactions provided by this Agreement to be consummated by the parties hereto, including the Sale and the payment of the Purchase Price. 
		

		
			“Utah Pharmacy Licenses” means the pharmacy license for each of VRx byMail, LLC, VRx Specialty, LLC, and VRx Pharmacy, LLC from the Utah Division of Occupational and Professional Licensing, pursuant to the notice of change of ownership filed in connection with the transactions contemplated by this Agreement.
		

		
			“Working Capital Escrow Amount” means Five Hundred Thousand Dollars ($500,000).  
		

		
			(b)       For purposes of this Agreement, the following terms have the meanings set forth in the sections indicated: 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Term

					
					
						    

					
					
						Section

				
	
					
						Agreement

					
					
						 

					
					
						Preamble 

				
	
					
						Adjusted Estimated Purchase Price

					
					
						 

					
					
						Section 2.1(a)(iv) 

				
	
					
						Adjustment Amount

					
					
						 

					
					
						Section 2.2(c) 

				
	
					
						Allocable Purchase Price

					
					
						 

					
					
						Section 2.5(b) 

				
	
					
						Allocation Principles

					
					
						 

					
					
						Section 2.5(b) 

				
	
					
						Allocation Schedule

					
					
						 

					
					
						Section 2.5(c) 

				
	
					
						Available Insurance Policies

					
					
						 

					
					
						Section 6.15 

				
	
					
						Balance Sheet

					
					
						 

					
					
						Section 4.6(a) 

				
	
					
						Balance Sheet Date

					
					
						 

					
					
						Section 4.6(a) 

				
	
					
						Bankruptcy and Equity Exception

					
					
						 

					
					
						Section 3.1(a) 

				
	
					
						Base Amount

					
					
						 

					
					
						Section 2.1 

				
	
					
						Change In Control Customer Contracts

					
					
						 

					
					
						Section 4.14(b) 

				
	
					
						Closing

					
					
						 

					
					
						Section 1.2 

				
	
					
						Closing Date

					
					
						 

					
					
						Section 1.2 

				
	
					
						COBRA

					
					
						 

					
					
						Section 4.12(a) 

				
	
					
						Company

					
					
						 

					
					
						Preamble 

				
	
					
						Company Contracts

					
					
						 

					
					
						Section 4.14(b) 

				
	
					
						Company Disclosure Schedules

					
					
						 

					
					
						Article IV 

				
	
					
						Company Intellectual Property

					
					
						 

					
					
						Section 4.16(a)(i) 

				
	
					
						Company Organizational Documents

					
					
						 

					
					
						Section 4.1(a) 

				
	
					
						Company Plans

					
					
						 

					
					
						Section 4.12(a) 

				
	
					
						Company Technology

					
					
						 

					
					
						Section 4.16(a)(ii) 

				
	
					
						Computer Systems

					
					
						 

					
					
						Section 4.16(b) 

				
	
					
						Continuing Employees

					
					
						 

					
					
						Section 6.11(a) 

				
	
					
						Continuation Period

					
					
						 

					
					
						Section 6.11(a) 

				
	
					
						Contract

					
					
						 

					
					
						Section 3.1(b) 

				

		
			 
		

		
			
		

		

		 

		

			67

		

 

		

			 

		

	
					
						

					
						Copyrights

					
					
						 

					
					
						Section 4.16(a)(iii) 

				
	
					
						Customer Contract

					
					
						 

					
					
						Section 4.14(a)(ix) 

				
	
					
						D&O Indemnified Parties

					
					
						 

					
					
						Section 6.12(a) 

				
	
					
						Deal Communications

					
					
						 

					
					
						Section 10.14(d) 

				
	
					
						Deductible

					
					
						 

					
					
						Section 9.3(a)(iii) 

				
	
					
						Deficit Amount

					
					
						 

					
					
						Section 2.2(e) 

				
	
					
						De Minimis Threshold

					
					
						 

					
					
						Section 9.3(a)(iv) 

				
	
					
						Determination Date

					
					
						 

					
					
						Section 2.2(b) 

				
	
					
						Dispute Notice

					
					
						 

					
					
						Section 2.2(b) 

				
	
					
						Employees

					
					
						 

					
					
						Section 4.12(a) 

				
	
					
						Environmental Laws

					
					
						 

					
					
						Section 4.13(b)(i) 

				
	
					
						Environmental Liabilities

					
					
						 

					
					
						Section 4.13(b)(ii) 

				
	
					
						ERISA

					
					
						 

					
					
						Section 4.12(a) 

				
	
					
						ERISA Affiliate

					
					
						 

					
					
						Section 4.12(a) 

				
	
					
						Escrow Agent

					
					
						 

					
					
						Section 2.3(a)

				
	
					
						Escrow Agreement

					
					
						 

					
					
						Section 2.3(a) 

				
	
					
						Estimated Purchase Price

					
					
						 

					
					
						Section 2.1(a)(ii) 

				
	
					
						Estimated Closing Date Net Working Capital

					
					
						 

					
					
						Section 2.1(a)(i) 

				
	
					
						Estimated Closing Statement

					
					
						 

					
					
						Section 2.1(a)(i) 

				
	
					
						Estimated Transaction Expenses

					
					
						 

					
					
						Section 2.1(a)(i) 

				
	
					
						Federal Health Care Program

					
					
						 

					
					
						Section 4.19(c)(ii) 

				
	
					
						Final Closing Statement

					
					
						 

					
					
						Section 2.2(a)

				
	
					
						Financial Statements

					
					
						 

					
					
						Section 4.6(a) 

				
	
					
						Firm

					
					
						 

					
					
						Section 10.14(a) 

				
	
					
						Governmental Approval

					
					
						 

					
					
						Section 3.2 

				
	
					
						Governmental Damages Section 7.2(d) 

					
					
						 

					
					
						 

				
	
					
						Governmental Investigation Section 7.2(d) 

					
					
						 

					
					
						 

				
	
					
						Granite Agreement

					
					
						 

					
					
						Preamble 

				
	
					
						Hazardous Materials

					
					
						 

					
					
						Section 4.13(b) 

				
	
					
						Hot Asset

					
					
						 

					
					
						Section 2.5(c) 

				
	
					
						Increase Amount

					
					
						 

					
					
						Section 2.2(d) 

				
	
					
						Indemnification Notice

					
					
						 

					
					
						Section 9.5(a) 

				
	
					
						Indemnifying Parties

					
					
						 

					
					
						Section 9.2(a) 

				
	
					
						Indemnitors

					
					
						 

					
					
						Section 6.12(b) 

				
	
					
						Independent Accounting Firm

					
					
						 

					
					
						Section 2.2(b) 

				
	
					
						Intellectual Property Rights

					
					
						 

					
					
						Section 4.16(a)(iii) 

				
	
					
						Interests

					
					
						 

					
					
						Recitals 

				
	
					
						Interim Period

					
					
						 

					
					
						Section 6.8(d) 

				
	
					
						Manufacturer Contract

					
					
						 

					
					
						Section 4.14(a)(x) 

				
	
					
						Marks

					
					
						 

					
					
						Section 4.16(a)(iii) 

				
	
					
						Material Contract

					
					
						 

					
					
						Section 4.14(a) 

				
	
					
						Parent

					
					
						 

					
					
						Preamble 

				
	
					
						Parent Indemnified Parties Section 9.2(a) 

					
					
						 

					
					
						 

				
	
					
						Parent’s Proposed Calculations Section 2.2(a) 

					
					
						 

					
					
						 

				
	
					
						Patents

					
					
						 

					
					
						Section 4.16(a)(iii) 

				
	
					
						Permitted Lien

					
					
						 

					
					
						Section 4.15 

				
	
					
						PHI

					
					
						 

					
					
						Section 9.2(a)(iv) 

				
	
					
						Pharmacy

					
					
						 

					
					
						Section 4.6(a) 

				

		
			 
		

		
			
		

		

		 

		

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						Policies

					
					
						 

					
					
						Section 4.17 

				
	
					
						Post-Signing Changes

					
					
						 

					
					
						Section 10.13(b) 

				
	
					
						Pre-Closing Insurance Policy

					
					
						 

					
					
						Section 9.8 

				
	
					
						Privileged Deal Communications

					
					
						 

					
					
						Section 10.14(d) 

				
	
					
						Publicly Available Software

					
					
						 

					
					
						Section 4.16(a)(iv) 

				
	
					
						Purchase Price

					
					
						 

					
					
						Section 2.1 

				
	
					
						Re-Calculated Closing Date Net Working

					
					
						 

					
					
						Section 2.2(f) 

				
	
					
						Capital 

					
					
						 

					
					
						 

				
	
					
						Related Persons

					
					
						 

					
					
						Section 4.21 

				
	
					
						Release

					
					
						 

					
					
						Section 4.13(b)(iv) 

				
	
					
						Release Date

					
					
						 

					
					
						Section 9.3(a)(i) 

				
	
					
						Remaining Disputed Items

					
					
						 

					
					
						Section 2.2(b) 

				
	
					
						Representatives

					
					
						 

					
					
						Section 6.2(a) 

				
	
					
						Requisite Approval

					
					
						 

					
					
						Section 4.4(a) 

				
	
					
						Restraint(s)

					
					
						 

					
					
						Section 7.1(b) 

				
	
					
						Sale

					
					
						 

					
					
						Recitals 

				
	
					
						Securities Act

					
					
						 

					
					
						Section 5.8 

				
	
					
						Seller

					
					
						 

					
					
						Preamble 

				
	
					
						Seller Parties

					
					
						 

					
					
						Section 10.14(b) 

				
	
					
						Short Period

					
					
						 

					
					
						Section 6.8(d) 

				
	
					
						Software

					
					
						 

					
					
						Section 4.16(a)(v) 

				
	
					
						Subsidiary Documents

					
					
						 

					
					
						Section 4.2(b) 

				
	
					
						Supplemental Disclosure Schedule

					
					
						 

					
					
						Section 10.13(b) 

				
	
					
						Takeover Proposal

					
					
						 

					
					
						Section 6.2(c) 

				
	
					
						Tax Returns

					
					
						 

					
					
						Section 4.11(l) 

				
	
					
						Tax Sharing Agreement

					
					
						 

					
					
						Section 4.11(f) 

				
	
					
						Taxes

					
					
						 

					
					
						Section 4.11(l) 

				
	
					
						Technology

					
					
						 

					
					
						Section 4.16(a)(vi) 

				
	
					
						Third Party Claim

					
					
						 

					
					
						Section 9.5(b)(i) 

				
	
					
						Third Party Claim Notice

					
					
						 

					
					
						Section 9.5(b)(i) 

				
	
					
						Trade Secrets

					
					
						 

					
					
						Section 4.16(a)(iii) 

				
	
					
						Walk-Away Date

					
					
						 

					
					
						Section 8.1(b)(i) 

				
	
					
						WARN

					
					
						 

					
					
						Section 4.12(a) 

				

		
			 
		

		
			Section 10.12. Interpretation.
		

		
			(a)       When a reference is made in this Agreement to an Article, a Section, Exhibit or Schedule, such reference shall be to an Article of, a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well 
		

		
			

		 

		

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			as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Except if otherwise explicitly provided, any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein. References to a Person are also to its permitted successors and assigns. 
		

		
			(b)       The parties hereto have participated jointly in the negotiation and drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. 
		

		
			Section 10.13. Schedules.
		

		
			(a)       Any information disclosed pursuant to any Section of the Company Disclosure Schedules or any Schedule shall be deemed to be disclosed in all sections of the Company Disclosure Schedules to the extent that it is readily apparent on the face of such disclosure that such disclosure is applicable to such other section notwithstanding the omission of a reference of a cross reference thereto. Neither the specification of any dollar amount or any item or matter in any provision of this Agreement nor the inclusion of any specific item or matter in any Section of the Company Disclosure Schedules or any Schedule hereto is intended to imply that such amount, or higher or lower amounts, or the item or matter so specified or included, or other items or matters, are or are not material, and no party shall use the fact of the specification of any such amount or the specification or inclusion of any such item or matter in any dispute or controversy between the parties as to whether any item or matter is or is not material for purposes of this Agreement. Neither the specification of any item or matter in any provision of this Agreement nor the inclusion of any specific item or matter in any Section of the Company Disclosure Schedule or any Schedule hereto is intended to imply that such item or matter, or other items or matters, are or are not in the ordinary course of business, and no party shall use the fact of the specification or the inclusion of any such item or matter in any dispute or controversy between the parties as to whether any item or matter is or is not in the ordinary course of business for purposes of this Agreement. 
		

		
			(b)       Between the period commencing on the date hereof until the date that is two (2) days prior to the Closing Date, the Seller shall have the right to deliver to Parent a supplement to the Company Disclosure Schedule (the “Supplemental Disclosure Schedule”) setting forth changes (“Post-Signing Changes”) to the following sections of the Company Disclosure Schedules based upon occurrences subsequent to the date hereof and prior to the Closing: Section 4.13,  Section 4.16,  Section 4.17,  Section 4.23,  the portion of the Company Disclosure Schedules relating to the second sentence of Section 4.8 and the first sentence of Section 4.19(b) and any information regarding the breach of Material Contracts by any counterparty thereto (and, for the avoidance of doubt, not the Company or its Subsidiaries). The changes provided in the Supplemental Disclosure Schedules shall not be deemed to be breaches of this Agreement, and (unless objected to be Parent as provided below) shall be deemed to supplement, amend and be a part of the original Company Disclosure Schedules for all purposes hereunder, including without limitation for purposes of (i) determining whether the conditions set forth in Section 7.2 have been satisfied, (ii) determining the accuracy of any representation or 
		

		
			
		

		
			

		 

		

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			warranty made by the Company or the Seller, as applicable, in this Agreement and (iii) the indemnification provisions of Article IX. Upon the delivery to Parent of any Post-Signing Changes, to the extent any matter set forth in such Supplemental Disclosure Schedule would, but for the preceding sentence, constitute a breach of any representation, warranty, covenant or agreement contained in this Agreement (either individually or collectively with all other breaches) that would give rise to a termination right of Parent under Section 8.1(c)(i), Parent shall have five (5) business days to provide notice to the Seller of its intent to terminate the Agreement pursuant to Section 8.1(c)(i) (and in such situation the 10-day period referred to in Section 8.1(c) shall be deemed to refer to the same five (5) business day period); provided that if Parent fails to provide such notice, such Supplemental Disclosure Schedule shall be deemed to be a part of the original Company Disclosure Schedule for all purposes hereunder. If the Closing has been scheduled for a date within such five (5) business day review period, such Closing shall be delayed until the end of the review period unless Parent waives such review period or any portion thereof. 
		

		
			Section 10.14. Legal Representation.   
		

		
			(a)       Each of the parties hereto acknowledges and agrees that Bennett Tueller Johnson & Deere, LLC (the “Firm”) has acted as counsel to the Company in connection with the negotiation of this Agreement and consummation of the Transactions. 
		

		
			(b)       Parent hereby consents and agrees to, and agrees to cause the Company to consent and agree to, the Firm representing the Seller and/or any of the members of the Seller (collectively, the “Seller Parties”) after the Closing with respect to disputes concerning the Transactions, including with respect to disputes concerning the Transactions in which the interests of the Seller Parties may be directly adverse to Parent and its Affiliates (including the Company). 
		

		
			(c)       In connection with the foregoing, Parent hereby irrevocably waives and agrees not to assert, and agrees to cause the Company to irrevocably waive and not to assert, any conflict of interest arising from or in connection with the Firm’s representation of the Seller Parties after the Closing with respect to disputes concerning the Transactions. 
		

		
			(d)       Parent further agrees, on behalf of itself and, after the Closing, on behalf of the Company, that all communications in any form or format whatsoever between or among any of the Firm, the Company, any of the Seller Parties, or any of their respective managers, directors, officers, employees or other representatives that directly relate to the negotiation, documentation and consummation of the Transactions or any dispute arising under this Agreement (collectively, the “Deal Communications”) shall be deemed to be retained and owned collectively by the Seller, shall be controlled by the Seller and shall not pass to or be claimed by Parent or the Company. All Deal Communications that are attorney-client privileged (the “Privileged Deal Communications”) shall remain privileged after the Closing and the privilege and the expectation of client confidence relating thereto shall belong solely to the Seller, shall be controlled by the Seller and shall not pass to or be claimed by Parent or the Company.  
		

		
			(e)       Notwithstanding the foregoing, in the event that a dispute arises between Parent or the Company on the one hand, and a third party other than the Seller or a member of the Seller, on the other hand, Parent or the Company may assert the attorney-client privilege to 
		

		
			
		

		
			

		 

		

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			prevent the disclosure of the Privileged Deal Communications to such third party; provided, however, that neither Parent nor the Company may waive such privilege without the prior written consent of the Seller. In the event that Parent or the Company is legally required by governmental order or otherwise to access or obtain a copy of all or a portion of the Deal Communications, Parent (x) shall, to the extent legally permissible, reasonably promptly notify the Seller in writing (including by making specific reference to this Section), (y) agrees that the Seller can seek a protective order and (z) agrees to use, at the Seller’s sole cost and expense, commercially reasonable efforts to assist therewith. 
		

		
			(f)       To the extent that files or other materials maintained by the Firm in relation to the Transactions constitute property of its clients, only the Seller shall hold such property rights and the Firm shall have no duty to reveal or disclose any such files or other materials or any Deal Communications by reason of any attorney-client relationship between the Firm, on the one hand, and the Company, on the other hand. 
		

		
			(g)       It shall not be a breach of any provision of this Agreement if prior to the Closing the Company, its Subsidiaries or the Seller, or any of their respective managers, directors, officers, employees or other representatives takes any action to protect from access or remove from the premises of the Company (or any offsite back-up or other facilities) any Deal Communications, including without limitation by segregating, encrypting, copying, deleting, erasing, exporting or otherwise taking possession of any Deal Communications. 
		

		
			(h)       In the event that Parent or the Company receives a subpoena or other discovery request pursuant to applicable Law that calls for the search for documents that may include Deal Communications, nothing herein shall preclude Parent or the Company from complying with its legal obligations to do so. 
		

		
			[signature page follows]
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be dulv executed and delivered as of the date first above written.
		

		
			 
		

			
					
						 

					
					
						PARENT:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						MAGELLAN PHARMACY SERVICES, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Mostafa Kamal

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Mostafa Kamal

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Chief Executive Officer

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						THE COMPANY:

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						VERIDICUS HOLDINGS, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Douglas S. Burgoyne

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Douglas S. Burgoyne

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Manager

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SELLER

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						VERIDICUS HEALTH, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Douglas S. Burgoyne

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Douglas S. Burgoyne

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Manager

				

		
			 
		

		 

		

			[Signature page to Purchase Agreement]

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