Document:

ex4_2.htm

EXHIBIT 4.2

 

FORM OF

 

AUTHORIZED PARTICIPANT AGREEMENT

 

 AUTHORIZED PARTICIPANT AGREEMENT (this “Agreement”) dated as of [                    ] among (i) [    ], a [    ] organized under the laws of [    ] (the “Authorized Participant”), (ii) Managed Emerging Markets Trust (the “Trust”), a statutory trust organized under Delaware law pursuant to the provisions of a Trust Agreement dated as of [            ], 2015 (as the same may be amended from time to time, the “Trust Agreement”) among The Bank of New York Mellon, a New York banking corporation, in its capacity as trustee (in such capacity, the “Trustee”), Wilmington Trust, National Association, a national banking association, as Delaware Trustee and the Sponsor (as defined below), and (iii) Artivest Advisors LLC, a Delaware limited liability company, in its capacity as sponsor of the Trust (in such capacity, the “Sponsor”). 

 

R E C I T A L S

 

A.  Pursuant to the provisions of the Trust Agreement, the Trust may from time to time issue or redeem equity securities representing beneficial interests in the Trust (“Shares”), in each case only in aggregate amounts of 100,000 Shares (or such number as shall be designated pursuant to the Trust Agreement) (such aggregate amount, a “Basket”), and integral multiples thereof, and only in transactions with a party who, at the time of the transaction, shall have signed and in effect an Authorized Participant Agreement with respect to the Trust.

 

B.  [    ] has requested to become an “Authorized Participant” (as such term is defined in the Trust Agreement) with respect to the Trust, and the Sponsor and the Trust have agreed to such request.

 

NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties, hereto, intending to be legally bound, agree as follows:

 

Section 1.  Procedures.  The Authorized Participant will purchase or redeem Baskets of Shares in compliance with the Trust Agreement as supplemented by the Creation and Redemption Procedures attached to this Agreement as Schedule 1 (such procedures, as the same may be amended or modified from time to time in compliance with the provisions hereof and thereof, the “Procedures”).  All creation orders and redemption orders (collectively, “Orders”) shall be placed and executed in accordance with the Trust Agreement as supplemented by the Procedures.

 

Section 2.  Incorporation of Standard Terms.  The Standard Terms attached hereto as Schedule 2 (the “Standard Terms”) are hereby incorporated by reference into, and made a part of, this Agreement.

 

Section 3.  Conflicts Rules.  In case of any inconsistency between the provisions of this Agreement and the Trust Agreement, the provisions of the Trust Agreement shall control.  In case of inconsistency between the provisions incorporated by reference into this Agreement pursuant to Section 2 above and any other provision of this Agreement, the latter will control.

 

Section 4.  Authorized Representatives.  Pursuant to Section 2.01 of the Standard Terms, attached hereto as Exhibit A is a certificate listing the Authorized Representatives of the Authorized Participant.

 

Section 5.  Notices.  Except as otherwise specifically provided in the Procedures, all notices required or permitted to be given pursuant hereto shall be given in writing and delivered by personal delivery or by postage prepaid registered or certified United States first class mail, return receipt requested, or by telex, telegram, facsimile, electronic mail message or similar means of same day delivery (with a confirming copy by mail) addressed as follows:

 

	 	
(i) 

	
If to the Trust:

 

Managed Emerging Markets Trust

c/o Artivest Advisors LLC

1140 Broadway, Suite 1501

New York, NY 10001

Attention: General Counsel

Telephone:  (855) 433-4383

Facsimile:  (855) 433-4383

Email: notices@artivest.co

 

  

  

  

 

If to the Sponsor:

 

Artivest Advisors LLC

1140 Broadway, Suite 1501

New York, NY 10001

Attention: General Counsel

Telephone:  (855) 433-4383

Facsimile:  (855) 433-4383

Email: notices@artivest.co

in each case, with a copy to:

The Bank of New York Mellon

2 Hanson Place

Brooklyn, New York 11217

Telephone: [●]

Facsimile: [●]

Email: [●]

 

	 	
(ii) 

	
If to the Authorized Participant:

 

[●]

Attention:  [●]

Telephone:  [●]

Facsimile:  [●]

Email: [●]

 

or to such other address as any of the parties hereto shall have communicated in writing to the remaining parties in compliance with the provisions hereof.

 

Section 6.  Effectiveness, Termination and Amendment.  This Agreement shall become effective upon execution and delivery by each of the parties hereto.  This Agreement may be terminated at any time by any party upon sixty days’ prior written notice to the other parties and may be terminated earlier by the Trust or the Sponsor at any time on the event of a breach by the Authorized Participant of any provision of this Agreement (including the Standard Terms incorporated by Section 2 hereof) or the Procedures.  This Agreement supersedes any prior agreement between or among the parties concerning the matters governed hereby.  This Agreement may be amended by the Trust or the Sponsor from time to time without the consent of the Authorized Participant, or any person on whose behalf the Authorized Participant holds Shares, by the following procedure:  the Trust or the Sponsor will mail a copy of the amendment to the Authorized Participant in compliance with the notice provisions of this Agreement; if the Authorized Participant does not object in writing to the amendment within ten Business Days after receipt of the proposed amendment, the amendment will become part of this Agreement in accordance with its terms.

 

Section 7.  Governing Law.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, without reference to the choice of law provisions thereof.  The parties irrevocably submit to the non-exclusive jurisdiction of any New York State or United States federal court sitting in New York City over any suit, action or proceeding arising out of, or relating to, this Agreement.

 

Section 8.  Assignment.  No party to this Agreement shall assign any rights, or delegate the performance of any obligations, arising hereunder without the prior written consent of the other parties hereto; provided that any party hereto which may be merged or converted, or with which it may be consolidated, or any entity resulting from any merger, consolidation or conversion to which a party hereunder shall be a party, shall be the successor of such party hereto.  Any purported assignment or delegation in violation of these provisions shall be null and void.

 

Section 9.  Counterparts.  This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

 

[Signature Page Follows]

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Authorized Participant Agreement as of the date set forth above.

 

	 	
Managed Emerging Markets Trust

	 	  	  
	 	
By:

	
The Bank of New York Mellon,

As Trustee

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
Artivest Advisors LLC, in its

	 	
its capacity as Sponsor of the Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
[Authorized Participant]

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  

 

  

  

  

 

Schedule 1

 

CREATION AND REDEMPTION PROCEDURES

 

 

 

 

 

 

  

  

  

 

TABLE OF CONTENTS

	  	
Page

	  	  
	
ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	
1

	 	 
	
Section 1.01.  Definitions

	
1

	 	 
	
Section 1.02.  Interpretation

	
2

	 	 
	
Section 1.03.  Conflicts

	
3

	 	 
	
ARTICLE II CREATION PROCEDURES

	
3

	 	 
	
Section 2.01.  Initial Creation of Shares

	
3

	 	 
	
Section 2.02.  Subsequent Creation of Shares

	
3

	 	 
	
ARTICLE III REDEMPTION PROCEDURES

	
5

	 	 
	
Section 3.01.  Redemption of Shares

	
5

 

 

  

- i -

  

 

MANAGED EMERGING MARKETS TRUST

 

CREATION AND REDEMPTION PROCEDURES

 

 adopted by the Sponsor and the Trust (each as defined below) as of [·], 2015 

 

ARTICLE I

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01.  Definitions.  For purposes of these Procedures, unless the context otherwise requires, the following terms will have the following meanings:

 

“Adviser” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Authorized Participant” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Authorized Participant Agreement” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Authorized Representative” shall mean, with respect to an Authorized Participant, each individual who, pursuant to the provisions of the Authorized Participant Agreement, has the power and authority to act on behalf of the Authorized Participant in connection with the placement of Purchase Orders or Redemption Orders and is in possession of the personal identification number (PIN) assigned by the Trust for use in any communications regarding Purchase or Redemption Orders on behalf of such Authorized Participant.

 

“Basket” has the meaning ascribed to the term in the Trust Agreement.

 

“Basket Amount” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Business Day” shall mean any day other than (a) a Saturday or Sunday; (b) a day on which the Exchange is closed for regular trading; (c) a day on which any of the Adviser, the Processing Agent, the Settlement Agent, the Sponsor or the Trustee is authorized or required by law or regulation to remain closed; or (d) a day on which the Federal Reserve wire transfer system is closed for cash wire transfers.

 

“Creation” means the process that begins when a Purchasing Authorized Participant first indicates to the Processing Agent its intention to purchase one or more Baskets pursuant to these Procedures and concludes with the issuance by the Trust and Delivery to such Purchasing Authorized Participant of the corresponding number of Shares.

 

“Creation and Redemption Line” shall mean a telephone number designated as such by the Processing Agent and communicated to each Authorized Participant in compliance with the notice provisions of the Authorized Participant Agreement to which such Authorized Participant is a party.

 

“Defaulting Authorized Participant” shall have the meaning specified in Section 2.02(g).

 

“Deliver” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Deposit Amount” shall mean, with respect to each Requested Basket specified in a Purchase Order and each Redeemed Basket specified in a Redemption Order, an amount equal to the Basket Amount announced by the Trust on the Order Date of such Purchase Order or Redemption Order (as applicable).

 

“DTC” shall mean The Depository Trust Company, its nominees and their respective successors.

 

“Eligible Business Day” shall mean a Business Day other than a Business Day immediately preceding a day on which there is no scheduled exchange trading session for one or more of the futures contracts that on such day constitute the Relevant Futures Contracts.

 

“Exchange” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Initial Creation” shall mean the initial creation of Shares pursuant to the provisions of Section 2.01.

 

“Issue Date” shall mean, with respect to a Purchase Order, the date on which the Deposit Amount is received.

 

  

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“Order Cut-Off Time” shall mean 1:15 p.m. (New York time) or the close of regular trading on the New York Stock Exchange, whichever is earlier.

 

“Order Date” shall have, with respect to a Purchase Order, the meaning ascribed to the term in Section 2.02(a); and, with respect to a Redemption Order, the meaning ascribed to the term in Section 3.01(a).

 

“Order Execution Price” shall mean, with respect to each Basket specified in a Purchase Order or each Basket specified in a Redemption Order, an amount per Basket equal to the Basket Amount announced by the Trust on the Order Date of such Purchase Order or Redemption Order (as applicable).

 

“Portfolio” shall mean, at any time, the portfolio of futures and/or forward contracts, swaps, cash and other investments owned by the Trust at such time.

 

“Procedures” shall mean these Creation and Redemption Procedures, as from time to time amended.

 

“Processing Agent” shall mean The Bank of New York Mellon, a New York banking corporation, or any successor thereto appointed by the Trust as the Trust’s agent for effecting Creations and Redemptions with Authorized Participants.

 

“Purchase Order” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Purchasing Authorized Participant” shall have the meaning ascribed to the term in Section 2.02(a).

 

“Redeemed Baskets” shall have the meaning ascribed to the term in Section 3.01(b)(i).

 

“Redeeming Authorized Participant” shall have the meaning ascribed to the term in Section 3.01(a).

 

“Redemption” shall mean the process that begins when a Redeeming Authorized Participant first indicates to the Processing Agent its intention to redeem one or more Baskets pursuant to these Procedures and concludes with delivery by the Trust of the corresponding amount of cash to such Redeeming Authorized Participant.

 

“Redemption Date” shall mean, with respect to a Redemption Order, the next Business Day following the Order Date of such Redemption Order; provided, that in the discretion of the Settlement Agent, the Redemption Date of a Redemption Order may be extended to a date not beyond the third Business Day following the Order Date of such Redemption Order.

 

“Redemption Order” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Relevant Futures Contracts” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Requested Baskets” shall have the meaning set forth in Section 2.02(b)(i).

 

“Settlement Agent” shall mean The Bank of New York Mellon, a New York banking corporation, or successor thereto appointed by the Trust as the Trust’s agent for settling Creations and Redemptions with Authorized Participants.

 

“Shares” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Sponsor” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Transaction Fee” shall mean, with respect to a Purchase Order or Redemption Order, the amount per Basket determined from time to time by the Trustee in consultation with the Sponsor and in effect on the Order Date of such Purchase Order or on the Redemption Date of such Redemption Order (as applicable), as disclosed in the then current prospectus filed by the Trust with the Securities and Exchange Commission.

 

“Trust” shall mean Managed Emerging Markets Trust, a Delaware statutory trust governed by the provisions of the Trust Agreement.

 

“Trustee” shall mean The Bank of New York Mellon, a New York banking corporation, in its capacity as Trustee under the Trust Agreement, and any successor thereto in compliance with the provisions thereof.

 

 “Trust Agreement” shall have the meaning set forth in the Authorized Participant Agreement.

 

Section 1.02.  Interpretation.  In these Procedures:

 

  

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Unless otherwise indicated, all references to Sections, clauses, paragraphs, schedules or exhibits, are to Sections, clauses, paragraphs, schedules or exhibits in or to these Procedures.

 

The words “hereof”, “herein”, “hereunder” and words of similar import shall refer to these Procedures as a whole, and not to any individual provision in which such words may appear.

 

A reference to any statute, law, decree, rule, regulation or other applicable norm shall be construed as a reference to such statute, law, decree, rule, regulation or other applicable norm as re-enacted, re-designated or amended from time to time.

 

A reference to any agreement, instrument or document shall be construed as a reference to such agreement, instrument or document as the same may have been amended from time to time in compliance with the provisions thereof.

 

Section 1.03.  Conflicts.  In case of conflict between any provision of these Procedures and the terms of the Trust Agreement, the terms of the Trust Agreement shall control.

 

ARTICLE II

 

CREATION PROCEDURES

 

Section 2.01.  Initial Creation of Shares.  The Initial Creation of Shares will take place in compliance with such procedures as the Trust, the Sponsor and the Agents may agree.

 

Section 2.02.  Subsequent Creation of Shares.  After the Initial Creation, the issuance and Delivery of Shares shall take place only in integral numbers of Baskets in compliance with the following rules:

 

(a) An Authorized Participant wishing to acquire from the Trust one or more Baskets (such Authorized Participant, a “Purchasing Authorized Participant”) shall place a Purchase Order with the Processing Agent on an Eligible Business Day.  Purchase Orders received by the Processing Agent prior to the Order Cut-Off Time on an Eligible Business Day shall have the date of such Eligible Business Day as the “Order Date”.  Purchase Orders received by the Processing Agent on or after the Order Cut-Off Time on an Eligible Business Day, on a Business Day other than an Eligible Business Day, or on a day other than a Business Day, shall be considered received at the opening of business on the next Eligible Business Day and shall have as their Order Date the date of such next Eligible Business Day.

 

(b) For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Processing Agent only when each of the following has occurred:

 

(i) An Authorized Representative of the Purchasing Authorized Participant shall have placed a telephone call to the Creation and Redemption Line informing the Processing Agent that such Purchasing Authorized Participant wishes to place a Purchase Order for a specified number of Baskets (the “Requested Baskets”); and

 

(ii) The Processing Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Purchasing Authorized Participant that a Purchase Order for a specified number of Baskets has been received by the Processing Agent from an Authorized Representative for such Purchasing Authorized Participant’s account.

 

(c) With respect to each Requested Basket specified in a Purchase Order, the Purchasing Authorized Participant shall deposit with the Settlement Agent in immediately available funds the corresponding Deposit Amount not later than 6:00 p.m. (New York time) of the next Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Authorized Participant and the Settlement Agent when the Purchase Order is placed, and give notice of such deposit to the Settlement Agent via facsimile or electronic mail message.  The Settlement Agent shall confirm receipt of such Deposit Amount to the Purchasing Authorized Participant via facsimile or electronic mail message.  A Purchase Order shall be deemed automatically cancelled if the Settlement Agent has not received the corresponding Deposit Amount in immediately available funds on a timely basis, as described in this paragraph.

 

(d) The Sponsor shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Processing Agent has determined are not in proper form, (ii) Purchase Orders that the Sponsor has determined would have adverse tax or other consequences to the Trust or to the owners of Shares, (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor result in a violation of law, (iv) Purchase Orders in respect of which the Settlement Agent has not received in immediately available funds the corresponding Deposit Amount by 6:00 p.m. (New York time) of the next Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Authorized Participant and the Settlement Agent when the Purchase Order is placed, or (v) Purchase Orders received during any period in which circumstances make transactions in, or settlement or Delivery of, Shares or components of the Portfolio impossible or impractical.  None of the Sponsor, the Processing Agent, the Trust or any of their agents shall be liable to any person for rejecting a Purchase Order.

 

  

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(e) The Sponsor may suspend the creation of Baskets, or postpone the Issue Date of a Purchase Order, for as long as it considers necessary for any reason.  None of the Sponsor, the Processing Agent, the Trust or any of their agents will be liable to any person for such suspension or postponement.

 

(f) Prior to the transmission by the Processing Agent via facsimile or electronic mail message of confirmation of acceptance thereof, a Purchase Order will only represent the Purchasing Authorized Participant’s unilateral offer to purchase the Required Baskets specified in such Purchase Order and will have no binding effect upon the Trust, the Processing Agent or any other party.  Upon the Settlement Agent’s receipt of the aggregate Deposit Amount corresponding to a Purchase Order as provided in paragraph “(c)” above, the Purchasing Authorized Participant’s offer to purchase the Required Baskets specified in such Purchase Order shall become irrevocable.

 

(g) By 11:00 a.m. (New York time) on the Business Day following the Issue Date of a Purchase Order, the Trust shall issue the aggregate number of Shares corresponding to the Requested Baskets specified in such Purchase Order and Deliver them by credit to the account at DTC which the Purchasing Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, together with immediately available funds in an amount equal to the positive difference, if any, between (1) the aggregate Deposit Amount deposited by the Purchasing Authorized Participant in respect of all Requested Baskets specified in such Purchase Order and (2) the sum of (x) the aggregate Order Execution Price of all Requested Baskets specified in such Purchase Order, and (y) the Transaction Fee applicable to such Purchase Order (without, for the avoidance of doubt, any interest on any such amount), provided that, if the aggregate Deposit Amount deposited by the Purchasing Authorized Participant in respect of all Requested Baskets specified in such Purchase Order does not suffice to cover the aggregate Order Execution Price of all Requested Baskets specified in such Purchase Order together with the Transaction Fee applicable to such Purchase Order, the Trust shall issue Shares as set forth above if, and only if, by 11:00 a.m. (New York time) on the Business Day following the Issue Date of such Purchase Order:

 

(i) the Settlement Agent has received from the Purchasing Authorized Participant in immediately available funds cash in an amount per Requested Basket equal to the positive difference between (1) the sum of (x) the aggregate Order Execution Price of all Requested Baskets specified in such Purchase Order and (y) the Transaction Fee applicable to such Purchase Order, and (2) the aggregate Deposit Amount deposited by the Purchasing Authorized Participant in respect of all Requested Baskets specified in such Purchase Order; and

 

(ii) any other conditions to the issuance under the Trust Agreement have been satisfied.

 

(h) In the event that, by 11:00 a.m. (New York time) on the Business Day following the Issue Date of a Purchase Order, a Purchasing Authorized Participant (such Purchasing Authorized Participant, a “Defaulting Authorized Participant”) has failed to deposit with the Settlement Agent the amount described in sub-clause “(g)(i)” above, the Trust may, in consultation with the Sponsor:

 

(i) cancel such Purchase Order by sending via fax or electronic mail message notice of such cancellation to the Purchasing Authorized Participant, liquidate any trading positions entered into by the Trust in connection with such Purchase Order and transfer to the Defaulting Authorized Participant, in full repayment of the aggregate Deposit Amount deposited by such Defaulting Authorized Participant in respect of all Requested Baskets specified in such Purchase Order, the lower of (1) the proceeds of such liquidation, and (2) the aggregate Deposit Amount deposited by such Defaulting Authorized Participant in respect of all Requested Baskets specified in such Purchase Order (without, for the avoidance of doubt, any interest thereon), in either case net of (x) the Transaction Fee applicable to such Purchase Order and (y) such additional amounts as the Trust, in consultation with the Sponsor, may deem appropriate to compensate the Trust for all damages, costs and expenses (including brokerage fees and commissions) incurred in connection with such Purchase Order; or

 

(ii) take such other action as the Trust, in consultation with the Sponsor, may deem necessary or appropriate under the circumstances, it being understood and agreed that in making a decision regarding any such other action the Trust and the Sponsor shall be required to take into account the best interests of the Trust and its shareholders only and shall have no duty to ameliorate or mitigate any damages of the Defaulting Authorized Participant.

 

(i) In all other cases, the Trust shall issue the aggregate number of Requested Shares specified in a Purchase Order and Deliver them by credit to the account at DTC which the Purchasing Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses “(g)(i)” and “(g)(ii)” above shall have been met.

 

  

Sch. I-4

  

 

ARTICLE III

 

REDEMPTION PROCEDURES

 

Section 3.01.  Redemption of Shares.  Redemptions of Shares shall take place only in integral numbers of Baskets in compliance with the following rules:

 

(a) An Authorized Participant wishing to redeem one or more Baskets (such Authorized Participant, a “Redeeming Authorized Participant”) shall place a Redemption Order with the Processing Agent on an Eligible Business Day.  Redemption Orders received by the Processing Agent prior to the Order Cut-Off Time on an Eligible Business Day shall have the date of such Eligible Business Day as the “Order Date”.  Redemption Orders received by the Processing Agent on or after the Order Cut-Off Time on an Eligible Business Day, on a Business Day other than an Eligible Business Day, or on a day other than a Business Day, shall be considered received at the opening of business on the next Eligible Business Day and shall have as their Order Date the date of such next Eligible Business Day.

 

(b) For purposes of paragraph “a” above, a Redemption Order shall be deemed “received” by the Processing Agent only when each of the following has occurred:

 

(i) An Authorized Representative of the Redeeming Authorized Participant shall have placed a telephone call to the Creation and Redemption Line informing the Processing Agent that such Redeeming Authorized Participant wishes to place a Redemption Order for a specified number of Baskets (the “Redeemed Baskets”); and

 

(ii) The Processing Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Redeeming Authorized Participant that a Redemption Order for a specified number of Baskets has been received by the Processing Agent from an Authorized Representative for such Redeeming Authorized Participant’s account.

 

(c) With respect to each Redeemed Basket specified in a Redemption Order, the Redeeming Authorized Participant shall, not later than 6:00 p.m. (New York time) of the next Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Authorized Participant and the Settlement Agent when the Redemption Order is placed, confirm in writing to the Settlement Agent that the Shares comprising the Redeeming Baskets have been transferred by the Redeeming Authorized Participant from its account at DTC to the Settlement Agent’s account at DTC.  A Redemption Order shall be deemed automatically cancelled if the Redeeming Authorized Participant has not complied with this paragraph on a timely basis.

 

(d) The Sponsor shall have the absolute right to reject any Redemption Order, including without limitation, (i) Redemption Orders that the Processing Agent has determined are not in proper form, (ii) Redemption Orders the acceptance of which would, in the opinion of counsel to the Sponsor result in a violation of law, (iii) Redemption Orders in respect of which the Redeeming Authorized Participant has not complied with the provisions of paragraph “(c)” above by 6:00 p.m. (New York time) of the next Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Authorized Participant and the Settlement Agent when the redemption order is placed, or (iv) Redemption Orders received during any period in which circumstances make transactions in, or settlement or Delivery of, Shares or components of the Portfolio impossible or impractical.  None of the Sponsor, the Processing Agent, the Trust or any of their agents shall be liable to any person for rejecting a Redemption Order.

 

(e) The Sponsor may, in its discretion, suspend the right of redemption, or postpone the Redemption Date of a Redemption Order, (1) for any period during which NYSE Arca or any exchange on which the Trust’s assets are regularly traded is closed other than for customary weekend or holiday closings, or trading is suspended or restricted, (2) for any period during which an emergency exists as a result of which the delivery, disposal or evaluation of the Trust’s assets is not reasonably practicable, or (3) for such other period as the Processing Agent determines to be necessary for the protection of owners of the Shares.  None of the Sponsor, the Processing Agent, the Trust or any of their agents will be liable to any person for such suspension or postponement.

 

(f) Prior to the transmission by the Processing Agent via facsimile or electronic mail message of confirmation of acceptance thereof, a Redemption Order will only represent the Redeeming Authorized Participant’s unilateral offer to surrender for redemption the Redeemed Baskets specified in such Redemption Order and will have no binding effect upon the Trust, the Processing Agent or any other party.  Upon the Redeeming Authorized Participant’s transfer of Shares to the Settlement Agent’s account at DTC, as provided in paragraph “(c)” above, the Redeeming Authorized Participant’s offer to surrender for redemption the Redeemed Baskets specified in a Redemption Order shall become irrevocable.

 

(g) Provided that by 11:00 a.m. (New York time) on the Redemption Date of a Redemption Order:

 

(i) the Redeeming Authorized Participant has (1) Delivered to the Settlement Agent’s account at DTC the total number of Shares comprising the Redeemed Baskets specified in such Redemption Order and (2) paid the Transaction Fee applicable to such Redemption Order; and

 

(ii) any other conditions to the Redemption under the Trust Agreement have been satisfied, the Settlement Agent will, on such day, credit the account of the Redeeming Authorized Participant at DTC with immediately available funds in an amount equal to the aggregate Order Execution Price corresponding to the total number of Redeemed Baskets specified in such Redemption Order (the “Redemption Distribution”).

 

  

Sch. I-5

  

 

(h) In the event that, by 6:00 p.m. (New York time) on the Redemption Date of a Redemption Order, the Settlement Agent’s account at DTC shall not have been credited with the total number of Shares comprising the Redeemed Baskets specified in such Redemption Order, the Trust will,

 

(i) deliver the Redemption Distribution but only to the extent of whole Redeemed Baskets received; and any remainder of the Redemption Distribution will be delivered on the next Business Day after the Redemption Date to the extent of remaining whole Redeemed Baskets received if the Settlement Agent receives a fee applicable to the extension of the Redemption Date which the Processing Agent may, from time to time, determine and the remaining Redeemed Baskets to be redeemed are credited to the Trust’s DTC account on such next Business Day; and

 

(ii) any further outstanding amount of the Redemption Order will be cancelled.

 

(i) Pursuant to information from the Sponsor, the Settlement Agent will be authorized to deliver the Deposit Amount notwithstanding that the Redeemed Baskets are not credited to the Trust’s DTC account by 1:15 p.m. (New York time) on the Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Redeeming Authorized Participant and the Settlement Agent when the Redemption Order is placed, if the Redeeming Authorized Participant has collateralized its obligation to deliver the Redeemed Baskets through DTC’s book entry-system on such terms as the Sponsor may from time to time determine.

 

(j) In all other cases, the Settlement Agent will pay the cash consideration corresponding to the total number of Baskets redeemed, net of the corresponding Transaction Fee, on the Business Day on which the conditions set forth in clauses “(g)(i)” and “(g)(ii)” above shall have been met.

 

[Signature Page Follows]

 

 

 

 

 

 

  

Sch. I-6

  

 

IN WITNESS WHEREOF, the Sponsor and the Trust have executed these Creation and Redemption Procedures as of the date set forth above.

 

	 	
MANAGED EMERGING MARKETS TRUST

	 	  
	 	
By The Bank of New York Mellon, in

	 	
its capacity as Trustee of Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
ARTIVEST ADVISORS LLC,

	 	
in its capacity as Sponsor of Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  

 

  

  

  

 

Schedule 2

 

STANDARD TERMS

 

 STANDARD TERMS FOR AUTHORIZED PARTICIPANT AGREEMENTS (the “Standard Terms”) agreed to as of [·], 2015 by and between Managed Emerging Markets Trust, a Delaware statutory trust (the “Trust”), and Artivest Advisors LLC, a Delaware limited liability company, in its capacity as the sponsor of the Trust (in such capacity, the “Sponsor”). 

 

ARTICLE 1

ORDERS FOR PURCHASE AND REDEMPTION

 

Section 1.01.  Authorization to Purchase and Redeem Baskets.  Subject to the provisions of the Authorized Participant Agreement, during the term of the Authorized Participant Agreement the Authorized Participant will be authorized to purchase and redeem Baskets of Shares in compliance with the provisions of the Trust Agreement and the Procedures.

 

Section 1.02.  Procedures for Orders.  Each party hereto agrees to comply with the provisions of the Trust Agreement and the Procedures to the extent applicable to it.

 

Section 1.03.  Consent to Recording.  The phone lines used by the Trust, the Processing Agent, the Settlement Agent or their affiliated persons may be recorded, and the Authorized Participant hereby consents to the recording of all calls with any of those parties.

 

Section 1.04.  Irrevocability.  The Authorized Participant agrees on behalf of itself and any Authorized Participant Client that delivery to the Processing Agent of an Order shall be irrevocable; provided that each of the Trust and the Sponsor reserves the right to reject any Order in compliance with the provisions of the Trust Agreement and the Procedures.

 

Section 1.05.  Costs and Expenses.  The Authorized Participant shall be responsible for any and all expenses and costs incurred by the Trust in connection with any Orders, including, without limitation, any transaction fees or interest or funding cost incurred by the Trust in connection with the Authorized Participant’s failure to timely settle any Order.

 

Section 1.06.  Delivery of Consideration to the Trust.  The Authorized Participant understands and agrees that in the event corresponding cash consideration is not transferred to the Trust by the time specified in the Purchase Order and in compliance with the Procedures and the Trust Agreement, a Purchase Order may be cancelled by the Processing Agent and the Authorized Participant will be solely responsible for all costs incurred by the Trust related to the cancelled Order.

 

Section 1.07.  Title to Shares Surrendered for Redemption.  The Authorized Participant represents and warrants to the Trust that in connection with a Redemption Order, the Authorized Participant will have full power and authority to surrender to the Settlement Agent for redemption the corresponding Shares, and upon such surrender the Trust will acquire good and unencumbered title to such Shares, free and clear of all liens, charges, duties imposed on the transfer of assets and encumbrances and not subject to any adverse claims, transferability restrictions (whether arising by operation of law or otherwise), loan, pledge, repurchase or securities lending agreements or other arrangements which would preclude the delivery of such Shares on a “regular way” basis.

 

Section 1.08.  Certain Payments or Distributions.  With respect to any Redemption Order, the Authorized Participant on behalf of itself and any Authorized Participant Client acknowledges and agrees to return to the Trust any payment, distribution or other amount paid to it or an Authorized Participant Client in respect of any property transferred to the Authorized Participant or any Authorized Participant Client that, based on the valuation of such property at the time of transfer, should have been paid to the Trust.  The Trust is entitled to reduce the amount of any property due to the Authorized Participant or any Authorized Participant Client by an amount equal to any payment, distribution or other sum to be paid to the Authorized Participant or to the Authorized Participant Client in respect of any property transferred to the Authorized Participant or any Authorized Participant Client that, based on the valuation of such property at the time of transfer, should be paid to the Trust.  Likewise, the Trust acknowledges and agrees to return to the Authorized Participant or any Authorized Participant Client any payment, distribution or other amount paid to it in respect of any Shares transferred to the Trust that, based on the valuation of such Shares at the time of transfer, should have been paid to the Authorized Participant or such Authorized Participant Client.

 

ARTICLE II

AUTHORIZED REPRESENTATIVES

 

Section 2.01.  Certification.  Concurrently with the execution of the Authorized Participant Agreement, and as requested from time to time by the Trust but no less frequently than annually, the Authorized Participant shall deliver to the Trust a certificate signed by the Authorized Participant’s Secretary or other duly authorized official setting forth the names, e-mail addresses and telephone and facsimile numbers of all persons authorized to give instructions relating to any activity contemplated hereby or any other notice, request or instruction on behalf of the Authorized Participant (each an “Authorized Representative”).  Such certificate may be accepted and relied upon by the Trust as conclusive evidence of the facts set forth therein and shall be considered to be in full force and effect until (i) receipt by the Trust of a superseding certificate in a form approved by the Trust bearing a subsequent date, or (ii) termination of the Authorized Participant Agreement.

 

  

Sch. 2-1

  

 

Section 2.02.  PIN Numbers.  The Processing Agent shall issue to each Authorized Participant a unique personal identification number (“PIN Number”) by which such Authorized Participant shall be identified and instructions issued by the Authorized Participant shall be authenticated.  The PIN Number shall be kept confidential and only provided to Authorized Representatives.  The Authorized Participant may revoke the PIN Number at any time upon written notice to the Processing Agent, and the Authorized Participant shall be responsible for doing so in the event that it becomes aware that an unauthorized person has received access to its PIN Number or has or intends to use the PIN Number in an unauthorized manner.  Upon receipt of such written request, the Processing Agent shall, as promptly as practicable, de-activate the PIN Number.  If an Authorized Participant’s PIN Number is changed, the new PIN Number will become effective on a date mutually agreed upon by the Authorized Participant and the Processing Agent.  The Authorized Participant agrees that, absent the Processing Agent’s fraud, willful misconduct or failure to cancel the PIN Number promptly following a written request to do so from the Authorized Participant or the termination of the Authorized Participant Agreement, none of the Trust, the Trustee or the Processing Agent shall be liable for losses incurred by the Authorized Participant as a result of unauthorized use of the Authorized Participant’s PIN Number prior to the time the Authorized Participant provides notice to the Processing Agent of the termination or revocation of authority pursuant to Section 2.03.

 

Section 2.03.  Termination of Authority.  Upon the termination or revocation of authority of an Authorized Representative by the Authorized Participant, the Authorized Participant shall (i) give immediate written notice of such fact to the Processing Agent and such notice shall be effective upon receipt by the Processing Agent; and (ii) request a new PIN Number.  The Processing Agent shall, as promptly as practicable, de-activate the PIN Number upon receipt of such written notice.

 

Section 2.04.  Verification.  The Processing Agent may assume that all instructions issued to it using the Authorized Participant’s PIN Number have been properly placed by Authorized Representatives, unless the Processing Agent has actual knowledge to the contrary or the Authorized Participant has revoked its PIN Number.  The Processing Agent shall have no duty to verify that an Order has been placed by an Authorized Representative.  The Authorized Participant agrees that the Processing Agent shall not be responsible for any losses incurred by the Authorized Participant as a result of an Authorized Representative identifying himself or herself as a different Authorized Representative or an unauthorized person identifying himself or herself as an Authorized Representative, unless the Processing Agent previously received from the Authorized Participant written notice to revoke its PIN Number.

 

ARTICLE III

STATUS OF THE AUTHORIZED PARTICIPANT

 

Section 3.01.  Clearing Status.  The Authorized Participant represents, covenants and warrants that, as of the date of execution of the Authorized Participant Agreement, and at all times during the term of the Authorized Participant Agreement, the Authorized Participant is and will be entitled to use the clearing and settlement services of each of the national clearing and settlement organizations through which, in compliance with the Procedures, the transactions contemplated hereby will clear and settle.  Any change in the foregoing status of the Authorized Participant shall terminate the Authorized Participant Agreement and the Authorized Participant shall give prompt written notice thereof to the Processing Agent.

 

Section 3.02.  Registration Status.  The Authorized Participant represents and warrants that, unless Section 3.03 is applicable to it, it is (i) registered as a broker-dealer under the Securities Exchange Act of 1934, as amended, (ii) qualified to act as a broker or dealer in the states or other jurisdictions where it transacts business to the extent so required by applicable law, (iii) a member in good standing of FINRA and (iv) if required in connection with its activities hereunder, registered as a futures commission merchant and/or an introducing broker under the Commodity Exchange Act, as amended and a member in good standing of the NFA in each relevant capacity.  The Authorized Participant agrees that it will maintain such registrations, qualifications, and membership in good standing and in full force and effect throughout the term of the Authorized Participant Agreement.  The Authorized Participant further agrees to comply with all federal laws, the laws of the states or other jurisdictions concerned, and the rules and regulations promulgated thereunder, to the extent such laws and regulations are applicable to the Authorized Participant’s transactions in Shares, and with the Constitution, By-Laws and Conduct Rules of FINRA applicable to its activities as an Authorized Participant, that it will comply with all rules and requirements applicable to NFA members, that it will not offer or sell Shares in any state or jurisdiction where they may not lawfully be offered and/or sold, and without limiting the foregoing that it will comply with any applicable transfer restrictions with respect to Shares set forth in the current Prospectus.

 

  

Sch. 2-2

  

 

Section 3.03.  Foreign Status.  If the Authorized Participant is offering and selling Shares in jurisdictions outside the several states, territories and possessions of the United States and is not otherwise required to be registered, qualified, or a member of FINRA or the NFA as set forth in the preceding paragraph, the Authorized Participant nevertheless agrees to observe the applicable laws of the jurisdiction in which such offer and/or sale is made (e.g., it will not offer or sell Shares in any state or jurisdiction where they may not lawfully be offered and/or sold), to comply with the full disclosure requirements of the 1933 Act and the regulations promulgated thereunder and to conduct its business in accordance with the spirit of the FINRA Conduct Rules and the rules and requirements applicable to NFA members.

 

Section 3.04.  Compliance with Certain Laws.  The Authorized Participant is in compliance with all applicable anti-money laundering laws and regulations, including, but not limited to, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act.

 

Section 3.05.  Authorized Participant Status.   The Authorized Participant understands and acknowledges that the method by which Baskets of Shares will be created and traded may raise certain issues under applicable securities laws.  For example, because new Baskets of Shares may be issued and sold by the Trust on an ongoing basis, at any point a “distribution”, as such term is used in the 1933 Act, may occur.  The Authorized Participant understands and acknowledges that some activities on its part, depending on the circumstances, may result in its being deemed a participant in a distribution in a manner which could render it a statutory underwriter and subject it to the prospectus delivery and liability provisions of the 1933 Act.

 

ARTICLE IV

ROLE OF AUTHORIZED PARTICIPANT

 

Section 4.01.  Independent Contractor.  The Authorized Participant acknowledges and agrees that for all purposes of the Authorized Participant Agreement, the Authorized Participant will be deemed to be an independent contractor, and will have no authority to act as agent for the Trust or the Trustee in any matter or in any respect.  The Authorized Participant agrees to make itself and its employees available, upon request, during normal business hours to consult with the Trust, the Sponsor or their designees concerning the performance of the Authorized Participant’s responsibilities under the Authorized Participant Agreement; provided, however, that the Authorized Participant shall be under no obligation to divulge or otherwise disclose any information that the Authorized Participant reasonably believes (i) it is under legal obligation not to disclose, or (ii) it is confidential or proprietary in nature.

 

Section 4.02.  Rights and Obligations of DTC Participant.  In executing the Authorized Participant Agreement, the Authorized Participant agrees in connection with any purchase or redemption transactions in which it acts for an Authorized Participant Client or for any other DTC Participant or indirect participant, or any other person on whose behalf it holds Shares, that it shall extend to any such party all of the rights, and shall be bound by all of the obligations, of a DTC Participant in addition to any obligations that it undertakes hereunder or under the Procedures.

 

Section 4.03.  Beneficial Owner Communications.  The Authorized Participant agrees, subject to any limitations arising under federal or state securities laws relating to privacy or other obligations it may have to its customers, to assist the Trust or the Sponsor in determining the ownership level of each beneficial owner relating to positions in Shares that the Authorized Participant may hold as record holder or that may be held through the Authorized Participant as a DTC Participant.  In addition, the Authorized Participant agrees, in accordance with applicable laws, rules and regulations, at the request of the Sponsor or the Trustee to forward to such beneficial owners written materials and communications received from the requesting party in sufficient quantities to allow mailing thereof to such beneficial owners, including notices, annual reports, disclosure or other informational materials and any amendments or supplements thereto that may be required to be sent by the Sponsor or the Trust to such beneficial owners pursuant to the Trust Agreement or applicable law or regulation, or that the Sponsor or the Trust reasonably wishes to distribute, at its own expense, to such beneficial owners.

 

ARTICLE V

TAX MATTERS

 

Section 5.01.  Tax Reporting.

 

(a) An Authorized Participant will provide tax reporting information with respect to the Trust to or for the benefit of taxpayers for whom the Authorized Participant holds Shares as a nominee as required by law.

 

(b) An Authorized Participant will furnish information to the Trust with respect to any taxpayer for whom the Authorized Participant holds Shares as a nominee as required under Treasury regulation section 1.6031(c)-1T or any successor thereto in addition to any information required by other provisions of this Article V.

 

  

Sch. 2-3

  

 

(c) An Authorized Participant will use commercially reasonable efforts to ensure that any taxpayer for whom the Authorized Participant holds Shares as a nominee has provided IRS Form W-9, W-8BEN, or other forms or documentation qualifying as a withholding certificate or documentary evidence or other appropriate documentation within the meaning of Treasury regulation section 1.1441-1(c) or any successor thereto, as necessary to establish an exemption from withholding tax and backup withholding tax with respect to income of the Trust allocable to such investor.  The Authorized Participant will act as an agent of the Trust in collecting and holding such forms or documentation, and annually will provide a copy of such forms to the Trust or its agent.  Upon reasonable request by the Trust or its agent, the Authorized Participant will provide the originals of such forms or documentation to the extent held by the Authorized Participant at that time and will assist the Trust in obtaining such original forms or documentation (or, to the extent originals are not available, copies thereof) from investors or other nominees to the extent not held by the Authorized Participant.  The provisions of this Section 5.01(c) of the Authorized Participant Agreement are subject to, and may be modified by, any agreements between the Trustee, on behalf of the Trust, and an Authorized Participant separate and apart from the Authorized Participant Agreement, that provide otherwise.

 

ARTICLE VI

MARKETING MATERIALS AND REPRESENTATIONS

 

Section 6.01.  Authorized Participant’s Representation.  The Authorized Participant represents, warrants and agrees that it will not make, or permit any of its representatives to make, any representations concerning Shares other than those contained in the Trust’s then current Prospectus or in any promotional materials or sales literature furnished to the Authorized Participant by the Sponsor.  The Authorized Participant agrees not to furnish or cause to be furnished to any person or display or publish any information or materials relating to Shares (including, without limitation, promotional materials and sales literature, advertisements, press releases, announcements, statements, posters, signs or other similar materials), except such information and materials as may be furnished to the Authorized Participant by the Sponsor and such other information and materials as may be approved in writing by the Sponsor.  The Authorized Participant understands that the Trust will not be advertised as offering redeemable securities, and that any advertising materials will prominently disclose that Shares are not redeemable units of beneficial interest in the Trust.  Notwithstanding the foregoing, the Authorized Participant may, without the written approval of the Sponsor, prepare and circulate in the regular course of its business reports, research or similar materials, in compliance with applicable FINRA and NFA rules, that include information, opinions or recommendations relating to the Shares (i) for public dissemination, provided that such reports, research or similar materials compare the relative merits and benefits of Shares with other products and are not used for purposes of marketing Shares and (ii) for internal use by the Authorized Participant.

 

Section 6.02.  Prospectus.

 

(a) The Sponsor will provide, or cause to be provided, to the Authorized Participant copies of the then current Prospectus and any printed supplemental information in reasonable quantities upon request.  The Sponsor will notify the Authorized Participant when a revised, supplemented or amended Prospectus for Shares is available, and make available to the Authorized Participant copies of such revised, supplemented or amended Prospectus at such time and in such quantities as may be reasonable to permit the Authorized Participant to comply with any obligation the Authorized Participant may have to deliver such Prospectus to its customers.  The Sponsor shall be deemed to have complied with this Section 6.02 when the Authorized Participant has received such revised, supplemented or amended Prospectus by e-mail, in printable form, with such number of hard copies as may be agreed from time to time by the parties promptly thereafter.

 

(b) The Authorized Participant represents and warrants to the Sponsor that it will deliver the then current Prospectus upon any sale by it of Shares (other than a redemption) or, if applicable, a notice consistent with Rule 173 under the 1933 Act in lieu of a Prospectus, to the extent so required by applicable law.

 

ARTICLE VII

INDEMNIFICATION; LIMITATION OF LIABILITY

 

Section 7.01.  Indemnification.  The provisions of this Section 7.01 shall survive termination of the Agreement.

 

(a) The Authorized Participant shall indemnify and hold harmless the Sponsor, the Trustee, the Trust, the Processing Agent, their respective subsidiaries, Affiliates, directors, officers, employees and agents, and each person, if any, who controls such persons within the meaning of Section 15 of the 1933 Act (each an “Indemnified Party”) from and against any loss, liability, cost and expense (including attorneys’ fees) incurred by such Indemnified Party as a result of (i) any breach by the Authorized Participant of any representations or warranties of the Authorized Participant (including under Section 3.3 of the Trust Agreement); (ii) any failure on the part of the Authorized Participant to perform any of its obligations set forth in the Authorized Participant Agreement; (iii) any failure by the Authorized Participant to comply with applicable laws, including rules and regulations of self-regulatory organizations, that apply to it; or (iv) actions of such Indemnified Party in reliance upon any instructions issued in accordance with the Procedures reasonably believed by such Indemnified Party to be genuine and to have been given by the Authorized Participant.

 

  

Sch. 2-4

  

 

(b) The Authorized Participant shall not be liable to any Indemnified Party for any damages arising out of (i) mistakes or errors in data provided in connection with purchase or redemption transactions except for data provided by the Authorized Participant, or (ii) mistakes or errors by, or arising out of interruptions or delays of communications with, the Trust or any Indemnified Party.

 

ARTICLE VIII

MISCELLANEOUS

 

Section 8.01.  Commencement of Trading.  The Authorized Participant may not submit an Order until five Business Days after the date of execution of the Authorized Participant Agreement (or such other date as may be designated by the Sponsor).

 

Section 8.02.  Definitions.  The capitalized terms used herein are defined as follows.

 

(a) “1933 Act” means the U.S. Securities Act of 1933, as amended.

 

(b) “Affiliate” shall have the meaning given to it by Rule 501(b) under the 1933 Act.

 

(c) “Agent” means purchasers that have entered into a purchase agreement with the Trust and the Sponsor for the purchase of Shares.

 

(d)  “Authorized Participant” shall have the meaning ascribed to it in the introductory paragraph of the Authorized Participant Agreement.

 

(e) “Authorized Participant Agreement” shall mean an Authorized Participant Agreement (including the Procedures attached thereto) among the Authorized Participant, the Trust and the Sponsor into which these Standard Terms shall have been incorporated by reference.

 

(f) “Authorized Participant Client” means any party on whose behalf the Authorized Participant acts in connection with an Order (whether a customer or otherwise).

 

(g) “Authorized Representative” shall have the meaning ascribed to it in Section 2.01 hereof.

 

(h) “Basket” shall have the meaning ascribed to it in the Authorized Participant Agreement.

 

(i) “Business Day” shall have the meaning ascribed to it in the Procedures.

 

(j) “DTC” means The Depository Trust Company.

 

(k) “FINRA” means the Financial Industry Regulatory Authority, Inc.

 

(l) “Indemnified Party” shall have the meaning ascribed to it in Section 7.01(a) hereof.

 

(m) “NFA” means the National Futures Association.

 

(n) “Prospectus” means the Trust’s current prospectus included in its effective registration statement, as supplemented or amended from time to time.

 

(o) “Shares” shall have the meaning ascribed to it in the Authorized Participant Agreement.

 

All other capitalized terms used in these Standard Terms and not otherwise defined shall have the meaning ascribed to such terms in the Authorized Participant Agreement (including the Procedures attached thereto).

 

Section 8.03.  Third Party Beneficiary.  The parties acknowledge and agree that the Processing Agent and each Indemnified Party not a party to this Agreement shall be a third party beneficiary to the Authorized Participant Agreement, including but not limited to the rights set forth in Section 7.01 of the Standard Terms.

 

[Signature Page Follows]

 

  

Sch. 2-5

  

 

IN WITNESS WHEREOF, the Sponsor and the Trust have executed these Standard Terms as of the date set forth above.

 

	 	
MANAGED EMERGING MARKETS TRUST

	 	  
	 	
By The Bank of New York Mellon, in

	 	
its capacity as Trustee of Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
ARTIVEST ADVISORS LLC,

	 	
in its capacity as Sponsor of Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  

 

  

  

  

 

Exhibit A

 

CERTIFICATE OF AUTHORIZED REPRESENTATIVES

 

Each of the following employees of [            ] (each, an “Authorized Representative”) is authorized, in accordance with the Authorized Participant Agreement dated as of [                    ] among [            ], the Sponsor and the Trust, to submit Purchase Orders and Redemption Orders on behalf and in the name of [                            ] and to give instructions or any other notice or request on behalf of [            ] with respect to such Orders or any other activity contemplated by the Authorized Participant Agreement.

 

Name:

e-mail Address:

Telephone:

Fax:

 

Name:

e-mail Address:

Telephone:

Fax:

 

Name:

e-mail Address:

Telephone:

Fax:

 

Name:

e-mail Address:

Telephone:

Fax:

 

The undersigned, [name of secretary or authorized officer], [title] of [            ], does hereby certify that the persons listed above have been duly authorized to act as Authorized Representatives pursuant to the Authorized Participant Agreement.

 

	
By:

	  
	
Name:

	  
	
Title:

	  
	
Date:

	  

 

 

Exh. A-1Exhibit 10.1  DebtCommitmentLetter

CONFORMED COPY

	
		
	CITIGROUP GLOBAL MARKETS INC.
388 Greenwich Street
New York, New York 10013

	 
	 

CONFIDENTIAL
August 4, 2015
Team Health Holdings, Inc.
Team Health, Inc.
265 Brookview Centre Way, Suite 400
Knoxville, Tennessee 37934
Attention:     David Jones

Project Intrepid 
Commitment Letter
Ladies and Gentlemen:
You have advised Citi (as defined below) (collectively with any Additional Agents appointed pursuant to Section 2 below, the “Commitment Parties,” “we” or “us”) that Tiger Parent, Inc., a Delaware corporation (“Acquisition Parent”), through its wholly owned subsidiary, Tiger Acquisition Sub, Inc., a Delaware corporation (“Acquisition Sub”), each formed at your direction, intends to acquire a company previously identified to us and code named “Intrepid” (the “Company”) by way of merger, and to consummate the other transactions described in Exhibit A hereto.  Capitalized terms used but not defined herein have the meanings assigned to them in the Exhibits attached hereto. For purposes of this Commitment Letter, “Citi” shall mean Citigroup Global Markets Inc., Citibank, N.A., Citigroup USA, Inc., Citicorp North America, Inc. and/or any of their affiliates as Citi shall determine to be appropriate to provide the services contemplated herein.

For purposes of this Commitment Letter (except as otherwise set forth herein or in the Term Sheets), (a) the term “Senior Facilities” shall mean (x) if the Backstopped Amendments are obtained on or prior to the Closing Date, solely the Term Loan B Facility and (y) if the Backstopped Amendments are not obtained on or prior to the Closing Date, the New Senior Facilities and (b) the term “Facilities” shall mean (x) if the Backstopped Amendments are obtained on or prior to the Closing Date, solely the Term Loan B Facility and the Senior Bridge Facility and (y) if the Backstopped Amendments are not obtained on or prior to the Closing Date, the New Senior Facilities and the Senior Bridge Facility.

		
	1. 
	Commitments; Backstopped Amendments.

In connection with the Transactions, Citi is pleased to advise you of its commitment to provide 100% of each of the Senior Facilities and the Senior Bridge Facility (as the amount thereof may be adjusted as set forth under the caption “Principal Amount” in the “Senior Unsecured Increasing Rate Bridge Loans” Summary of Principal Terms and Conditions attached hereto as Exhibit C) (Citi, together with any of its designated affiliates of similar creditworthiness, an “Initial Lender” and collectively with any other financial institution that becomes an Initial Lender as set forth in Section 2 below, the “Initial Lenders”), in each case, upon the terms and subject to the conditions set forth or referred to in this commitment letter (together with the Term Sheets, this “Commitment Letter”).

    
        

 

In addition to the foregoing, Citi is pleased to advise you of its agreement to use commercially reasonable efforts to arrange the Backstopped Amendments.
		
	2. 
	Titles and Roles.

It is agreed that (a) Citi will act as sole lead arranger (in such capacity, together with any of its designated affiliates of similar creditworthiness, the “Lead Arrangers”) and as sole bookrunner for each of the Facilities and the Backstopped Amendments; (b) if the Backstopped Amendments are not obtained on or prior to the Closing Date, Citibank, N.A. will act as administrative agent (the “Bank Administrative Agent”) for the Senior Facilities (it being understood and agreed that, if the Backstopped Amendments are obtained on or prior to the Closing Date, JPMorgan Chase Bank, N.A. will continue to act as administrative agent under the Existing Credit Agreement (as amended by the Backstopped Amendments)); and (c) Citibank, N.A. will act as administrative agent for the Senior Bridge Facility (the “Bridge Administrative Agent”; the Bridge Administrative Agent together with the Bank Administrative Agent, the “Administrative Agents”). It is further agreed that Citi will appear on the top left of the cover page of any marketing materials for the Senior Facilities and the Backstopped Amendments and Citi will appear on the top left of the cover page of any marketing materials for the Senior Bridge Facility, and in each case will hold the roles and responsibilities conventionally understood to be associated with such name placement. At any time within 15 business days after the date of your acceptance of this Commitment Letter, you may appoint additional co-managers and up to four additional agents, co-agents, arrangers, joint bookrunners or confer other titles in respect of each Facility (which, for purposes of this paragraph, shall include each of the New Senior Facilities and the Senior Bridge Facility) (each such party, an “Additional Agent”) (in addition to the Commitment Parties) and may allocate up to 50% of the commitments of the Commitment Parties hereunder with respect to each Facility and corresponding compensatory economics in connection with each such Facility to such other persons (and thereafter, such financial institution shall constitute a “Commitment Party” and “Initial Lender” hereunder) and, notwithstanding anything in Section 3 to the contrary, the commitments of the Initial Lenders with respect to each such Facility will be permanently reduced by the amount of the commitments of such appointed entities (or their affiliates) in respect of each such Facility, with such reduction allocated to reduce the commitments of the Initial Lenders in respect of each such Facility (excluding any Initial Lender that becomes a party hereto pursuant to this section) on a pro rata basis; provided that in no event shall the economics payable to any Additional Agent exceed the fees (exclusive of any fees payable to the applicable administrative agent in its capacity as such) which are being paid to the Initial Lenders (excluding any Initial Lender that becomes a party hereto pursuant to this Section) (as a percentage of their commitments) pursuant to the Fee Letter; provided further such allocation shall be pro rata across the Facilities. No compensation (other than that expressly contemplated by this Commitment Letter and the Fee Letter referred to below) will be paid or titles awarded, in each case, in connection with the Facilities unless you and the Commitment Parties shall so agree.
		
	3. 
	Syndication.

The Commitment Parties reserve the right, prior to or after the execution of the Facilities Documentation (as defined below), to syndicate all or a portion of each Commitment Party’s commitments hereunder to a group of banks, financial institutions and other institutional lenders  identified by the Commitment Parties in consultation with you and reasonably acceptable to you (with such consent not to be unreasonably withheld or delayed), including any relationship lenders designated by you in consultation with the Commitment Parties (together with the Initial Lenders, the “Lenders”); provided that, notwithstanding each Commitment Party’s right to syndicate the Facilities and receive commitments with respect thereto, no Commitment Party may assign all or any portion of its commitments hereunder until after the Closing Date and, unless you agree in writing, each Commitment Party shall retain exclusive control 

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over all rights and obligations with respect to its commitments, including all rights with respect to consents, modifications, waivers and amendments, until the Closing Date has occurred.  Notwithstanding the foregoing, the Commitment Parties will not syndicate to those banks, financial institutions and other institutional lenders and competitors of the Company and its subsidiaries separately identified in writing by you to us prior to the date hereof, or with respect to competitors of the Company, separately identified in writing by you to us after the date hereof (the foregoing, in each case inclusive of any affiliates thereof that are readily identifiable by name (other than a bona-fide debt fund), collectively, “Disqualified Lenders”). Without limiting your obligations to assist with syndication efforts as set forth below, it is understood that the Initial Lenders’ commitments hereunder are not subject to commencement or completion of syndication of the Facilities.
The Commitment Parties intend to commence syndication efforts promptly after your acceptance of this Commitment Letter and as part of their syndication efforts, it is the Commitment Parties’ intent to have Lenders commit to the Facilities prior to the Closing Date.  You agree to use your commercially reasonable efforts to assist the Commitment Parties in completing a timely syndication that is reasonably satisfactory to them and you until the date that is the earlier of (a) 45 days after the Closing Date and (b) the later of the Closing Date and the date on which a successful syndication (as defined in the Fee Letter) is achieved (such earlier date, the “Syndication Date”).  Such assistance shall include (a) your using commercially reasonable efforts to ensure that any syndication efforts benefit materially from your existing lending and investment banking relationships and, to the extent practical and appropriate and in all instances not in contravention of the terms of the Acquisition Agreement as in effect on the date hereof, the existing lending and investment banking relationships of the Company, (b) direct contact between your senior management, representatives and advisors (and your using commercially reasonable efforts to arrange for direct contact between senior management, representatives of the Company, to the extent practical and appropriate and in all instances not in contravention of the terms of the Acquisition Agreement as in effect on the date hereof) and the proposed Lenders at times and locations mutually agreed upon, (c) your assistance (and your using commercially reasonable efforts to cause the Company, to the extent practical and appropriate and in all instances not in contravention of the terms of the Acquisition Agreement as in effect on the date hereof, to assist) in the preparation, at least 10 consecutive calendar days ending on the business day immediately prior to the Closing Date (excluding any “blackout dates” referred to in the Fee Letter), of customary confidential information memoranda (“Confidential Information Memoranda”) for the Senior Facilities (including, without limitation, the New Senior Facilities, as applicable), the Senior Bridge Facility and the Backstopped Amendments (all of which shall be in form and substance consistent with confidential information memoranda in your recent transactions) and other customary marketing materials to be used in connection with the syndications, and, at the request of the Commitment Parties, the preparation of versions of the Confidential Information Memoranda that do not contain material non-public information concerning the Company, its subsidiaries or their securities for purposes of United States federal and state securities laws, (d) using your commercially reasonable efforts to procure, at least 10 consecutive calendar days ending on the business day immediately prior to the Closing Date (excluding any “blackout dates” referred to in the Fee Letter), corporate ratings for the Borrower and ratings for each of the Facilities (including, without limitation, the New Senior Facilities, as applicable) and the Senior Notes from each of Standard & Poor’s Ratings Services (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”), and (e) the hosting, with the Commitment Parties, of one or more meetings (or, if agreed to by the Lead Arrangers, conference calls in lieu thereof) with prospective Lenders at times and, if applicable, locations to be mutually agreed upon.  During the primary syndications of the Facilities on or prior to the Syndication Date, (i) you will ensure, and will use commercially reasonable efforts, to the extent practical and appropriate and in all instances not in contravention of the terms of the Acquisition Agreement as in effect on the date hereof, to cause the Company to ensure that there will not be any competing issues of debt securities or syndicated credit facilities of you, the Company or any of your or its subsidiaries (other than the Facilities, the Senior Notes, any debt securities issued in lieu of the Senior Notes and any other debt securities or credit facilities disclosed to you 

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prior to the date hereof) being offered, placed or arranged that would materially and adversely impair the primary syndication of the Facilities (it being understood that replacements, extensions and renewals of existing indebtedness of the Company and its subsidiaries, indebtedness of the Company and its subsidiaries incurred in the ordinary course of business, including short term debt for working capital, capital leases, purchase money debt, equipment financings and any indebtedness of the Company and its subsidiaries permitted under the Acquisition Agreement as in effect on the date hereof shall not be subject to this clause (i)) and (ii) you agree to use your commercially reasonable efforts to prepare and provide (and to use commercially reasonable efforts to cause the Company to provide, to the extent practical and appropriate and in all instances not in contravention of the terms of the Acquisition Agreement as in effect on the date hereof) promptly to the Commitment Parties all available customary information with respect to you, the Company and each of your and its respective subsidiaries, the Transactions and the other transactions contemplated hereby, including all financial information and projections relating to the Company and its subsidiaries (including financial estimates, forecasts and other forward-looking information) (the “Projections”), as the Commitment Parties may reasonably request.  For the avoidance of doubt, you will not be required to provide any information to the extent the provision thereof would violate any applicable law, rule or regulation or any obligation of confidentiality binding you, the Company or your or their respective affiliates (provided that in the case of any confidentiality obligation, (x) you shall have used commercially reasonable efforts to obtain consent to provide such information and (y) such obligation was not entered into in contemplation of this provision; provided, further, that you shall notify us if any such information is being withheld as a result of any such obligation of confidentiality).  Notwithstanding anything to the contrary contained in this Commitment Letter or the Fee Letter, (i) neither the obtaining of the ratings referenced above nor the compliance with any of the other provisions set forth in clauses (a) through (e) above or any other provision of this paragraph shall constitute a condition to the commitments hereunder or the funding of the Facilities on the Closing Date or any time thereafter and (ii) neither the commencement nor the completion of the syndication of the Facilities shall constitute a condition precedent to the Closing Date. 
The Commitment Parties will, in consultation with you, manage all aspects of any syndication, including decisions as to the selection of institutions to be approached (with your consent not to be unreasonably withheld and excluding Disqualified Lenders) and when they will be approached, when their commitments will be accepted, which institutions will participate (with your consent not to be unreasonably withheld and excluding Disqualified Lenders), the allocation of the commitments among the Lenders and the amount and distribution of fees among the Lenders.  
		
	4. 
	Information.

You hereby represent and warrant that (but the accuracy of which representation and warranty shall not be a condition to the commitments hereunder or the funding of the Facilities on the Closing Date) (a) (with respect to the Company and its subsidiaries, to the best of your knowledge) all written information and written data (such information and data, other than (i) the Projections and (ii) information of a general economic or general industry nature, the “Information”) that have been or will be made available to the Commitment Parties by you or any of your representatives, taken as a whole, does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (after giving effect to all supplements and updates thereto) and (b) the Projections that have been or will be made available to the Commitment Parties by you, the Company or any of your or their respective representatives have been or will be prepared in good faith based upon assumptions that are believed by you to be reasonable at the time made and furnished; it being understood that any such financial projections are subject to significant uncertainties and contingencies, many of which are beyond your control, that no assurance can be given that any particular financial projections will be realized, that actual results 

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may differ significantly from the projected results and that such differences may be material.  You agree that, if at any time prior to the Syndication Date, you become aware that any of the representations in the preceding sentence would be incorrect in any material respect if the Information and Projections were being furnished, and such representations were being made, at such time, then you will promptly (or prior to the Closing Date with respect to Information or Projections concerning the Company and its subsidiaries, you will use commercially reasonable efforts (to the extent practical and appropriate and in all instances not in contravention of the terms of the Acquisition Agreement as in effect on the date hereof)) to supplement the Information and the Projections so that (to the best of your knowledge, with respect to the Company and its subsidiaries) such representations will be correct in all material respects under those circumstances.  In arranging and syndicating the Facilities and the Backstopped Amendments, the Lead Arrangers will be entitled to use and rely on the Information and the Projections without responsibility for independent verification thereof.  We will have no obligation to conduct any independent evaluation or appraisal of the assets or liabilities of you, the Company or any other party or to advise or opine on any related solvency issues.
You hereby acknowledge that (a) the Lead Arrangers will make available Information and Projections to the proposed syndicate of Lenders and (b) certain of the Lenders may be “public side” Lenders (i.e. Lenders that do not wish to receive material non-public information with respect to the  Company, its subsidiaries or its securities) (each, a “Public Lender”).  You hereby acknowledge that the Commitment Parties will make available Information, Projections and other offering and marketing material and presentations, including confidential information memoranda to be used in connection with the syndication of the Facilities to the proposed syndicate of Lenders, by posting the Information and Projections on Intralinks, SyndTrak Online or by similar electronic means (collectively, the “Platform”).  At the request of the Lead Arrangers, you agree to assist us in preparing an additional version of each Confidential Information Memorandum to be used by Public Lenders.  The information to be included in the additional version of each Confidential Information Memorandum will consist exclusively of information and documentation that is either publicly available, not material with respect to the Company, its subsidiaries or its securities for purposes of United States federal and state securities laws or of the type that would be publicly available if the Company were a public reporting company (as reasonably determined by the Company).  It is understood that in connection with your assistance described above, (a) customary authorization letters will be included in each Confidential Information Memorandum that authorize the distribution of such Confidential Information Memorandum to prospective Lenders, contain customary representations confirming that the public-side version does not include material non-public information about the Company, its subsidiaries or its securities, and exculpate us with respect to any liability related to the use of the contents of such Confidential Information Memorandum or any related marketing material by the recipients thereof and exculpate you, the Company and your and their respective affiliates with respect to any liability related to the misuse of the contents of such Confidential Information Memorandum or any related marketing material by the recipients thereof; (b) the public information shall include the following information except to the extent you notify us to the contrary and provided that you shall have been given a reasonable opportunity to review such documents and comply with the U.S. Securities and Exchange Commission disclosure requirements (and such public information is permitted to be made available to all prospective Lenders, including through a Platform designated “Public Lenders”): (i) drafts and final definitive documentation with respect to the Facilities and the Backstopped Amendments, including term sheets, (ii) administrative materials prepared by the Commitment Parties for prospective Lenders (such as a lender meeting or call invitation, allocations and funding and closing memoranda) and (iii) notification of changes in the terms of the Facilities or the Backstopped Amendments; (c) at our request, you shall identify information to be distributed to Public Lenders by clearly and conspicuously marking the same as “PUBLIC”; and (d) we shall be entitled to treat any Information and Projections that are not specifically identified as “PUBLIC” as being suitable only for posting on a portion of the Platform not designated for Public Lenders.

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	5. 
	Fees.

As consideration for the commitment of the Initial Lenders hereunder and the Lead Arrangers’ agreement to perform the services described herein, you agree to pay the fees set forth in this Commitment Letter and in the Fee Letter dated the date hereof and delivered herewith with respect to the Facilities (the “Fee Letter”).  Once paid, such fees shall not be refundable under any circumstances, except as otherwise contemplated by the Fee Letter.  
		
	6. 
	Conditions Precedent.

The commitments of the Initial Lenders hereunder and the Lead Arrangers’ agreement to perform the services described herein are subject only to (a) the execution and delivery by the Borrower (and Guarantors, as applicable) to the Bank Administrative Agent of definitive documentation with respect to the Senior Facilities and, if applicable, separate definitive documentation to the Bank Administrative Agent with respect to the Backstopped Amendments and, if applicable, separate definitive documentation to the Bridge Administrative Agent with respect to the Senior Bridge Facility (collectively, the “Facilities Documentation”), in each case, which shall be consistent with the applicable Term Sheet and the applicable Documentation Principles and shall be subject to the Limited Conditionality Provision (as defined below) and (b) (i) with respect to the Senior Facilities, the conditions set forth in Exhibit B under the headings titled “Conditions Precedent to Initial Borrowing” and “Conditions Precedent to all Borrowings”, (ii) with respect to the Senior Bridge Facility, the conditions set forth in Exhibit C under the heading titled “Conditions Precedent to Senior Bridge Loans” and (iii) with respect to each of the Facilities, as applicable, the conditions set forth in Exhibit D (clauses (a) and (b) collectively, the “Funding Conditions”); it being understood that there are no conditions (implied or otherwise) to the commitments hereunder (including compliance with the terms of the Commitment Letter, the Fee Letter and the Facilities Documentation) other than the Funding Conditions that are expressly stated to be conditions to the initial funding under the Facilities on the Closing Date (and upon satisfaction or waiver of such conditions, the initial funding under the Facilities shall occur).  
Notwithstanding anything to the contrary in this Commitment Letter (including each of the exhibits attached hereto), the Fee Letter, the Facilities Documentation or any other letter agreement or other undertaking concerning the financing of the Transactions, (i) the only representations and warranties the accuracy of which shall be a condition to availability of the Facilities on the Closing Date shall be (A) such of the representations and warranties made by the Company in the Acquisition Agreement as are material to the interests of the Lenders, but only to the extent that you (or your applicable affiliates) have the right (taking into account any applicable cure provisions) to terminate your (or such affiliates’) obligations under the Acquisition Agreement, or to decline to consummate the Acquisition (in each case, in accordance with the terms thereof), as a result of a breach of such representations and warranties (the “Acquisition Agreement Representations”), and (B) the Specified Representations (as defined below) made by the Borrower and the Guarantors in the Facilities Documentation and (ii) the terms of the Facilities Documentation and the Closing Deliverables shall be in a form such that they do not impair the availability of the Facilities on the Closing Date if the conditions expressly set forth herein and in the Term Sheets are satisfied (it being understood that, to the extent any Collateral (other than assets of Holdings, the Borrower and domestic Guarantors with respect to which a lien may be perfected solely by the filing of a financing statement under the Uniform Commercial Code and the delivery of stock certificates of the Borrower and to the extent delivered to you by the Company prior to the Closing Date (after your use of commercially reasonable efforts to obtain such stock certificates), material (to be defined in a manner to be agreed) wholly-owned domestic restricted subsidiaries) is not or cannot be provided or perfected on the Closing Date after your use of commercially reasonable efforts to do so or without undue burden or expense, the provision and/or perfection of such Collateral shall not constitute a condition precedent to the availability of the Facilities on the Closing Date, 

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but shall be required to be provided and/or perfected within 90 days after the Closing Date (subject to extensions as agreed by the Bank Administrative Agent in its reasonable discretion).  For purposes hereof, “Specified Representations” means the representations and warranties of the Borrower and the Guarantors (after giving effect to the Acquisition) set forth in the Facilities Documentation relating to corporate or other organizational existence of Holdings and the Borrower; organizational power and authority (as to execution, delivery and performance of the applicable Facilities Documentation); the due authorization, execution, delivery and enforceability of the applicable Facilities Documentation; Federal Reserve margin regulations; the Investment Company Act; the creation, validity and perfection of security interests in the Collateral (subject to permitted liens and the limitations set forth in the preceding sentence); no conflicts of the applicable Facilities Documentation (limited to the execution, delivery and performance of the applicable Facilities Documentation, incurrence of the indebtedness thereunder and the granting of the guarantees and the security interests in respect thereof) with charter documents of the Borrower or any Guarantor; solvency as of the Closing Date (after giving effect to the Transactions) of the Borrower and its subsidiaries on a consolidated basis (to be determined in a manner consistent with the solvency certificate to be delivered in the form set forth in Annex I attached to Exhibit D); PATRIOT ACT; and use of the proceeds of the Facilities not violating FCPA, OFAC and other anti-terrorism laws.  This paragraph shall be referred to herein as the “Limited Conditionality Provision”.  
		
	7. 
	Indemnification; Expenses.

You agree (a) to indemnify and hold harmless each of the Commitment Parties and each of their respective affiliates and controlling persons and the respective officers, directors, employees, successors, partners, agents, advisors and representatives of each of the foregoing (each, an “Indemnified Person”) from and against any and all losses, claims, damages, liabilities and out-of-pocket expenses, joint or several, to which any such Indemnified Person may become subject arising out of, resulting from or in connection with this Commitment Letter, the Fee Letter, the Transactions or the Facilities, or any claim, litigation, investigation or proceeding (any of the foregoing, an “Action”) relating to any of the foregoing and regardless of whether brought by you or any of your affiliates or any other person or against any person, including the Company, its security holders and its other affiliates, regardless of whether any such Indemnified Person is a party thereto, and to reimburse each such Indemnified Person within 30 days after receipt of a written request together with reasonably detailed backup documentation for any reasonable legal (limited to one counsel for all Indemnified Persons, taken as a whole, and, if reasonably necessary, a single local counsel to all Indemnified Persons, taken as a whole, in each relevant material jurisdiction and, solely in the case of a conflict of interest, one additional counsel in each applicable material jurisdiction to the affected Indemnified Persons similarly situated taken as a whole) or other reasonable out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing; provided, that the foregoing indemnity will not, as to any Indemnified Person, apply to losses, claims, damages, liabilities or related expenses (i) to the extent resulting from the willful misconduct, bad faith or gross negligence of such Indemnified Person or any of its affiliates or controlling persons or any of the officers, directors, employees, partners, successors, agents, advisors or representatives of any of the foregoing, (ii) to the extent arising from a material breach of the obligations of such Indemnified Person or any of its affiliates or controlling persons or any of the officers, directors, employees, partners, successors, agents, advisors or representatives of any of the foregoing under this Commitment Letter, the Fee Letter or the Facilities Documentation (in the case of each of preceding clauses (i) and (ii), as determined by a court of competent jurisdiction in a final and non-appealable judgment) or (iii) to the extent arising from any dispute solely among Indemnified Persons other than claims against any Commitment Party in its capacity or in fulfilling its role as an Administrative Agent or arranger or any similar role under any Facility and other than any claims arising out of any act or omission on the part of you or your affiliates, and (b) to reimburse each Commitment Party and each Indemnified Person from time to time, upon presentation of a summary statement, together with any supporting documentation reasonably 

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requested by you, for all reasonable and documented out-of-pocket expenses (including but not limited to out-of-pocket expenses of the Commitment Parties’ due diligence investigation, syndication expenses, travel expenses and reasonable fees, disbursements and other charges of counsel to the Commitment Parties identified in the Term Sheets (and you acknowledge that we may receive a benefit, including, without limitation, a discount, credit or other accommodation, from such counsel based on the fees such counsel may receive on account of their relationship with us including, without limitation, fees paid pursuant hereto) and, if necessary, of a single local counsel to the Commitment Parties in each relevant material jurisdiction), in each case incurred in connection with the Facilities and the preparation of this Commitment Letter, the Fee Letter, the Facilities Documentation and any security arrangements in connection therewith (collectively, the “Expenses”); provided, that you shall not be required to reimburse any of the Expenses in the event the Closing Date does not occur.  Notwithstanding any other provision of this Commitment Letter, (i) no Indemnified Person shall be liable for any damages arising from the use by others of information or other materials obtained through electronic, telecommunications or other information transmission systems, except to the extent such damages have resulted from (in each case as finally determined by a court of competent jurisdiction in a final and non-appealable judgment) the willful misconduct, bad faith or gross negligence of such Indemnified Person or any of its affiliates or controlling persons or any of the officers, directors, employees, partners, agents, advisors or representatives of any of the foregoing, and (ii) neither (x) any Indemnified Person, nor (y) you (or any of your subsidiaries or affiliates) or the Company (or any of its subsidiaries or affiliates) shall be liable for any indirect, special, punitive or consequential damages (in the case of clause (y), other than in respect of any such damages required to be indemnified under this Section 7) in connection with this Commitment Letter, the Facilities, the Transactions (including the Facilities and the use of proceeds thereunder), or with respect to any activities related to the Facilities.  No Indemnified Person seeking indemnification or reimbursement under this Commitment Letter will, without your prior written consent (not to be unreasonably withheld, delayed or conditioned), settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any Action referred to herein.  Notwithstanding the immediately preceding sentence, if at any time an Indemnified Person shall have requested in accordance with this Commitment Letter that you reimburse such Indemnified Person for legal or other expenses in connection with investigating, responding to or defending any Action, you shall be liable for any settlement of any Action effected without your written consent if (a) such settlement is entered into more than 30 days after receipt by you of such request for reimbursement and (b) you shall not have reimbursed such Indemnified Person in accordance with such request prior to the date of such settlement.  You shall not, without the prior written consent of the affected Indemnified Person (which consent shall not be unreasonably withheld, delayed or conditioned), effect any settlement of any pending or threatened Action against such Indemnified Person in respect of which indemnity has been sought hereunder by such Indemnified Person unless such settlement (i) includes an unconditional release of such Indemnified Person in form and substance reasonably satisfactory to such Indemnified Person from all liability or claims that are the subject matter of such Action and (ii) does not include any statement as to any admission of fault.
		
	8. 
	Sharing Information; Absence of Fiduciary Relationship; Affiliate Activities.

You acknowledge that the Commitment Parties and their affiliates may be providing debt financing, equity capital or other services (including, without limitation, investment banking and financial advisory services, securities trading, hedging, financing and brokerage activities and financial planning and benefits counseling) to other companies in respect of which you may have conflicting interests. 
We will not furnish confidential information obtained from you by virtue of the transactions contemplated by this Commitment Letter or our other relationships with you to other companies (except as contemplated below).  You also acknowledge that we do not have any obligation to use in connection with 

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the transactions contemplated by this Commitment Letter, or to furnish to you, confidential information obtained by us or any of our respective affiliates from other companies.
You further acknowledge and agree that (a) no fiduciary, advisory or agency relationship between you and any Commitment Party is intended to be or has been created in respect of any of the transactions contemplated by this Commitment Letter, irrespective of whether such Commitment Party has advised or is advising you on other matters, (b) each Commitment Party, on the one hand, and you, on the other hand, have an arm’s-length business relationship that does not directly or indirectly give rise to, nor do you rely on, any fiduciary duty on the part of such Commitment Party and you waive, to the fullest extent permitted by law, any claims you may have against us for breach of fiduciary duty or alleged breach of fiduciary duty in connection with the Transactions and agree that we will have no liability (whether direct or indirect) to you in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on your behalf, including equity holders, employees or creditors, (c) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter and you have consulted with your own legal and financial advisors to the extent you have deemed appropriate and (d) you have been advised that each Commitment Party and its affiliates is engaged in a broad range of transactions that may involve interests that differ from your interests and that no Commitment Party has an obligation to disclose such interests and transactions to you by virtue of any fiduciary, advisory or agency relationship.  In addition, the Commitment Parties may employ the services of their respective affiliates in providing certain services hereunder and may exchange with such affiliates information concerning you and the Company and other companies in the industry of the Company, and such affiliates shall be entitled to the benefits afforded to, and subject to the obligations of, the Commitment Parties hereunder.  You acknowledge and agree that neither we nor our affiliates have provided you with legal, tax or accounting advice and that you have obtained such independent advice from your own advisors.
You further acknowledge that each Commitment Party and its affiliates is a full service securities firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services.  In the ordinary course of business, each Commitment Party may provide investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, you, the Company and your and its respective subsidiaries and other companies with which you or the Company or your or its respective subsidiaries may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by the Commitment Parties, their respective affiliates or any of their respective customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.
		
	9. 
	Assignments; Amendments; Governing Law, Etc.

This Commitment Letter, the Fee Letter and the commitments hereunder shall not be assignable by any party hereto (except by you on or prior to the Closing Date to the ultimate borrower under the Facilities or another newly-formed shell entity organized in the United States so long as any such entity is directly or indirectly controlled by Holdings) without the prior written consent of each other party hereto (and any attempted assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto (and Indemnified Persons), is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto (and Indemnified Persons) and is not intended to create a fiduciary relationship among the parties hereto.  Subject to the limitations set forth in Section 3, any and all services to be provided by the Commitment Parties hereunder may be performed by or through any of their respective affiliates or branches and the provisions of Section 7 shall apply with equal force and effect to any such entities so performing any such duties or activities.  This Commitment Letter may not be 

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amended or any provision hereof waived or modified except by an instrument in writing signed by the Commitment Parties and you.  This Commitment Letter may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement.  Delivery of an executed counterpart of a signature page of this Commitment Letter by facsimile transmission or by “.pdf” or similar electronic transmission shall be effective as delivery of a manually executed counterpart hereof.  Section headings used herein are for convenience of reference only, are not part of this Commitment Letter and are not to affect the construction of, or to be taken into consideration in interpreting, this Commitment Letter.  You acknowledge that information and documents relating to the Facilities may be transmitted through SyndTrak, Intralinks, the internet, e-mail, or similar electronic transmission systems, and, notwithstanding anything herein to the contrary, that the Commitment Parties shall not be liable for any damages arising from the unauthorized use by others of information or documents transmitted in such manner unless resulting from the gross negligence, bad faith or willful misconduct, as determined by a court of competent jurisdiction in a final and non-appealable judgment, of such Commitment Party or any of its affiliates or controlling persons or any of the officers, directors, employees, partners, agents, representatives, successors or assigns of any of the foregoing.  This Commitment Letter, together with the Fee Letter dated the date hereof, supersedes all prior understandings, whether written or oral, among us with respect to the Facilities and sets forth the entire understanding of the parties hereto with respect thereto.  THIS COMMITMENT LETTER AND ANY CLAIM, CONTROVERSY OR DISPUTE (WHETHER IN CONTRACT, TORT OR OTHERWISE) ARISING UNDER OR RELATED TO THIS COMMITMENT LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK; provided, however, that (a) the interpretation of the definition of Company Material Adverse Effect (as defined in the Acquisition Agreement) and whether there shall have occurred a Company Material Adverse Effect (as defined in the Acquisition Agreement), (b) whether the Acquisition has been consummated as contemplated by the Acquisition Agreement and (c) whether the representations and warranties made by the Company in the Acquisition Agreement are accurate and whether as a result of any inaccuracy thereof you have the right to terminate your obligations under the Acquisition Agreement, shall be determined in accordance with the laws of the State of Delaware without regard to conflict of laws principles that would result in the application of the laws of another jurisdiction.
Each of the parties hereto agrees that this Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained herein, including the good faith negotiation of the Facilities Documentation by the parties hereto in a manner consistent with this Commitment Letter, it being understood and agreed that the commitments provided hereunder by the Commitment Parties and the funding of the Facilities on the Closing Date are subject only to the Funding Conditions.
		
	10.
	WAIVER OF JURY TRIAL.

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER, THE FEE LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER OR THEREUNDER.
		
	11.
	Jurisdiction.

Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive jurisdiction of (i) any New York State court or Federal court of the United States of America sitting in City of New York, Borough of Manhattan, and any appellate court from any thereof, as to any action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and agrees 

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that all claims in respect of any such action or proceeding shall be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court, and further agrees to not commence any such suit, action or proceeding other than in such New York State court or, to the extent permitted by law, in such Federal court, (b) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby in any court in which such venue may be laid in accordance with clause (a) of this sentence, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and (d) 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.  Service of any process, summons, notice or document by registered mail or overnight courier addressed to any of the parties hereto at the addresses set forth above shall be effective service of process against such party for any suit, action or proceeding brought in any such court.
		
	12.
	Confidentiality.

This Commitment Letter is delivered to you on the understanding that none of the Fee Letter, or, prior to the date hereof, this Commitment Letter, or their terms or substance shall be disclosed, directly or indirectly, to any other person or entity (including other lenders, underwriters, placement agents, advisors or any similar persons) except (a) to your officers, directors, employees, affiliates, members, partners, stockholders, attorneys, accountants, agents and advisors and on a confidential basis, (b) if the Commitment Parties consent to such proposed disclosure, (c) you may disclose the Term Sheets and the existence of the Commitment Letter to any rating agency in connection with the Transactions or (d) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or regulation or as requested by a governmental authority (in which case you agree to inform us promptly thereof to the extent lawfully permitted to do so); provided that (i) you may disclose this Commitment Letter and the contents thereof (but not the Fee Letter and the contents thereof, except on a redacted basis in a manner reasonably acceptable to the Lead Arrangers as to the amount or percentages of any fees, market flex provisions, securities demand and pricing caps) to the Company and its officers, directors, employees, attorneys, accountants, agents and advisors, on a confidential basis, (ii) you may disclose the Fee Letter and the contents thereof as part of generic disclosure regarding fees and expenses in connection with any syndication of the Facilities or prospectus or offering memorandum related to the Senior Notes (or any securities issued in lieu of the Senior Notes), or to the Company and its officers, directors, employees, attorneys, accountants, agents and advisors to confirm the absence of additional conditions precedent to the funding of the Facilities and the absence of any “flex” or similar terms that would decrease the amount of the Facilities (but in each case within this clause (ii), without disclosing any specific fees set forth therein), or on a redacted basis in a manner reasonably acceptable to the Commitment Parties or for customary accounting purposes, including accounting for deferred financing costs, (iii) you may disclose this Commitment Letter and the Fee Letter (after this Commitment Letter and the Fee Letter have been accepted by you) on a confidential basis to any prospective Additional Agent or affiliate thereof and (iv) you may disclose this Commitment Letter and the contents hereof (but not the Fee Letter and the contents thereof) in any syndication of the Facilities or in any prospectus or other offering memorandum related to the Senior Notes (or any debt securities issued in lieu of the Senior Notes) or in any proxy statement or other public filing in connection with the Acquisition.  Your obligations under this paragraph with regard to this Commitment Letter (but not the Fee Letter) shall terminate on the earlier of (x) the second anniversary of the date hereof or (y) one year following the termination of this Commitment Letter in accordance with its terms.

11
        

 

Each Commitment Party and its affiliates will use all confidential information provided to it or such affiliates by or on behalf of you hereunder solely for the purpose of providing the services which are the subject of this Commitment Letter and shall treat confidentially all such information; provided that nothing herein shall prevent a Commitment Party from disclosing any such information (a) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or regulation or as requested by a governmental authority (in which case such Commitment Party, to the extent permitted by law, agrees to inform you promptly thereof), (b) upon the request or demand of any regulatory authority or stock exchange having jurisdiction over such Commitment Party or any of its affiliates (in which case such Commitment Party agrees to inform you promptly thereof prior to such disclosure to the extent practicable, unless such Commitment Party is prohibited by applicable law from so informing you, or except in connection with any request as part of a regulatory examination), (c) to the extent that such information becomes publicly available other than by reason of improper disclosure by such Commitment Party or any of its affiliates in violation of this Commitment Letter, (d) to the extent that such information is received by such Commitment Party from a third party that is not to such Commitment Party’s knowledge subject to confidentiality obligations to you or the Company, (e) to the extent that such information is independently developed by such Commitment Party so long as not based on information obtained in a manner that would otherwise violate this provision, (f) to such Commitment Party’s affiliates and its and its affiliates’ respective employees, legal counsel, independent auditors and other experts or agents (collectively, the “Representatives”) who need to know such information in connection with the Transactions and are informed of the confidential nature of such information (provided that such Commitment Party shall be responsible for its affiliates and Representatives’ compliance with this paragraph), (g) to prospective Lenders, participants or assignees or any potential counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower or any of its subsidiaries or any of their respective obligations, in each case who agree to be bound by the terms of this paragraph (or language substantially similar to this paragraph), (h) for purposes of establishing a “due diligence” defense or (i) to ratings agencies in connection with the Transactions; provided that (i) the disclosure of any such information to any Lenders or prospective Lenders or participants or assignees or prospective participants or assignees referred to above shall be made subject to the acknowledgement and acceptance by such Lender or prospective Lender or assignee or participant or prospective assignee or participant that such information is being disseminated on a confidential basis (on substantially the terms set forth in this paragraph or as is otherwise reasonably acceptable to you and such Commitment Party, including, without limitation, as agreed in any marketing materials for the Facilities) in accordance with the standard syndication processes of such Commitment Party or customary market standards for dissemination of such type of information and (ii) no disclosure shall be made by such Commitment Party to any Disqualified Lender.  Each Commitment Party’s obligations under this paragraph shall terminate on the earlier of (x) the second anniversary of the date hereof or (y) one year following the termination of this Commitment Letter in accordance with its terms and shall otherwise automatically terminate and be superseded by the confidentiality provisions in the definitive documentation relating to each of the Facilities and/or the Backstopped Amendments upon the execution and delivery of the definitive documentation therefor. 
		
	13.
	Surviving Provisions.

The indemnification, expense reimbursement, compensation (if applicable), confidentiality, syndication (if applicable), jurisdiction, venue, governing law, waiver of jury trial and fiduciary duty provisions contained herein and in the Fee Letter shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the Initial Lenders’ commitments hereunder and the Lead Arrangers’ agreement to provide the services described herein; provided that your obligations under this Commitment Letter, other than those relating to confidentiality and to the syndication of the Facilities (if such Facilities have been 

12
        

 

funded) and your obligations under the second sentence of Section 4 (if such Facilities have been funded), shall automatically terminate and be superseded by the definitive documentation relating to the Facilities upon the initial funding under the Senior Facilities, and you shall be released from all liability in connection therewith at such time.
		
	14.
	PATRIOT ACT Notification.

We hereby notify you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “Patriot Act”), each Commitment Party and each Lender is required to obtain, verify and record information that identifies the Borrower and Guarantors, which information includes the name, address, tax identification number and other information regarding the Borrower and Guarantors that will allow such Commitment Party or such Lender to identify the Borrower and Guarantors in accordance with the Patriot Act.  This notice is given in accordance with the requirements of the Patriot Act and is effective as to the Commitment Parties and each Lender.  You hereby acknowledge and agree that the Commitment Parties shall be permitted to share any or all such information with the Lenders.
		
	15.
	Acceptance and Termination.

If the foregoing correctly sets forth our agreement, please indicate your acceptance of the terms of this Commitment Letter and of the Fee Letter by returning to the Lead Arrangers executed counterparts hereof and of the Fee Letter not later than 11:59 p.m., New York City time, on August 7, 2015.  Each Commitment Party’s respective commitments hereunder and agreements contained herein will expire at such time in the event that the Lead Arrangers have not received such executed counterparts in accordance with the immediately preceding sentence.  In the event that either (x) the initial borrowing in respect of the Senior Facilities does not occur on or before 11:59 p.m., New York City time, on the date that is no earlier than five business days after the Termination Date (as defined in the Acquisition Agreement as in effect on the date hereof) or (y) the Acquisition Agreement is validly terminated prior to consummation of the Acquisition, then this Commitment Letter and the commitments and undertakings of the Commitment Parties hereunder shall automatically terminate.  Additionally, the commitment of each Commitment Party with respect to the Senior Bridge Facility shall terminate in the event the Acquisition is consummated without any borrowings under the Senior Bridge Facility.  

[Remainder of this page intentionally left blank]

13
        

 

The Commitment Parties are pleased to have been given the opportunity to assist you in connection with the financing for the Transactions.

[signature pages follow]

        
[[NYCORP:3550135v1:3106w: 08/04/2015--09:53 AM]]

 

Very truly yours,

	
		
	CITIGROUP GLOBAL MARKETS INC.

	 

	By:

	 
	/s/ Stuart Dickson

	 
	Name:  Stuart Dickson

	 
	Title:    Managing Director

[SIGNATURE PAGE TO COMMITMENT LETTER]
        

 

Accepted and agreed to as of 
the date first above written: 
 
TEAM HEALTH HOLDINGS, INC., 
 
 
by:   /s/ David Jones                                     
      Name:    David Jones 
      Title:    Executive Vice President and 
    Chief Financial Officer

TEAM HEALTH, INC., 

by:  /s/ David Jones                                     
      Name:    David Jones 
      Title:    Executive Vice President and 
        Chief Financial Officer

[SIGNATURE PAGE TO COMMITMENT LETTER]
        

CONFIDENTIAL        EXHIBIT A

Project Intrepid
Senior Secured Credit Facilities 
Senior Unsecured Increasing Rate Bridge Facility
Transaction Description 

It is intended that: 
(a)    You will directly or indirectly acquire the Company pursuant to an Agreement and Plan of Merger, dated as of August 4, 2015 (as amended, supplemented or modified and in effect from time to time, and including all Schedules and Exhibits thereto, the “Acquisition Agreement”), among Acquisition Parent, Acquisition Sub and the Company, whereby Acquisition Sub will be merged with and into the Company (the “Acquisition”);
(b)    (x) on or prior to the Closing Date, the Borrower (as defined in the Senior Facilities Term Sheet (as defined below)) will obtain an amendment (which may be in the form of an amendment and restatement) of the Existing Credit Agreement, in the manner required by the Existing Credit Agreement, to permit and/or provide for (i) the consummation of the Acquisition; (ii) the establishment of a tranche B term loan facility in an aggregate principal amount of $965 million (the “Term Loan B Facility”), having the terms set forth for the “Term Loan B Facility” in the Summary of Principal Terms and Conditions attached hereto as Exhibit B (the “Senior Facilities Term Sheet”); (iii) the issuance of (and escrowing of the proceeds from, if applicable) the Securities; and (iv) such other changes to the Existing Credit Agreement as more fully described in the Senior Facilities Term Sheet (the amendments described in clause (i) through (iv), collectively, the “Backstopped Amendments”), and (y) the Borrower will obtain the Term Loan B Facility;
(c)    if the Backstopped Amendments are not obtained on or prior to the Closing Date, the Borrower (as defined in the Senior Facilities Term Sheet) will (x) obtain senior secured credit facilities consisting of (i) a senior secured revolving credit facility in an aggregate amount equal to the aggregate Revolving Credit Commitments (as defined in the Existing Credit Agreement) outstanding immediately prior to the Closing Date (but, in any event, not to exceed $650 million) (the “Revolving Facility”) and (ii) a senior secured term loan facility, consisting of (A) a tranche A term loan facility in an aggregate principal amount equal to the aggregate principal amount of Tranche A Term Loans (as defined in the Existing Credit Agreement) outstanding immediately prior to the Closing Date (but, in any event, not to exceed $588.75 million (the “Term Loan A Facility”) and (B) the Term Loan B Facility (the Term Loan B Facility, together with the Term Loan A Facility, the “Term Facilities” and, together with the Revolving Facility, the “New Senior Facilities”), having the terms set forth in the Senior Facilities Term Sheet and (y) use a portion of the proceeds thereof to repay in full all indebtedness, and terminate all commitments, guarantees and security interests, under the Existing Credit Agreement;
(d)    the Borrower (as defined in the Senior Bridge Term Sheet (as defined below)) will, at its option, either (i) issue an aggregate principal amount of its senior unsecured notes (the “Senior Notes”) generating up to $545 million in gross proceeds in a Rule 144A or other private placement or, at the election of the Borrower to the extent an effective registration statement is then available, a registered public offering or (ii) to the extent you do not receive such amount of gross proceeds of Senior Notes on the Closing Date, borrow up to $545 million (minus the amount of gross proceeds from any Senior Notes issuance) of senior unsecured increasing rate loans (the “Senior Bridge Loans”) under a new senior unsecured credit facility (the “Senior Bridge Facility”) described in the Summary of Principal Terms and Conditions attached hereto as Exhibit C (the “Senior Bridge Term Sheet”) and which may, under their terms, be converted to term loans (“Senior Unsecured Term Loans”) or exchanged for debt securities (“Senior Exchange Notes”); and

A-1
        

CONFIDENTIAL        EXHIBIT A

(e)     after giving effect to the Transactions, Holdings and its subsidiaries shall have no outstanding indebtedness other than (i) (x) if the Backstopped Amendments are obtained on or prior to the Closing Date, the indebtedness outstanding under the Existing Credit Agreement immediately prior to the Closing Date and the Term Loan B Facility or (y) if the Backstopped Amendments are not obtained on or prior to the Closing Date, the New Senior Facilities, (ii) the Senior Bridge Facility and/or the Senior Notes, (iii) ordinary course short term working capital facilities and ordinary course capital lease, purchase money and equipment financings, (iv) indebtedness not to exceed $25 million and (v) any other indebtedness as may be mutually agreed between the Borrower and the Lead Arrangers. All other indebtedness (other than contingent obligations not yet due and payable) not specified in clauses (i) through (v) of the preceding sentence that is outstanding as of the Closing Date shall be repaid in full in connection with, and substantially concurrently with the closing of, the Transactions and all commitments, security interests and guarantees in connection therewith shall have been terminated and released.
The transactions described above, together with the transactions related thereto, are collectively referred to herein as the “Transactions”.  This Exhibit A, the Senior Facilities Term Sheet, the Senior Bridge Term Sheet, and the Additional Conditions Precedent attached hereto as Exhibit D are collectively referred to herein as the “Term Sheets”.  For purposes of this Commitment Letter, “Closing Date” shall mean the date of the initial funding under the Senior Facilities and the consummation of the Acquisition. 

A-2
        

CONFIDENTIAL        EXHIBIT B

Project Intrepid 
Senior Secured Credit Facilities 
Summary of Principal Terms and Conditions2

		
	Borrower:
	Team Health, Inc. (the “Borrower”).

		
	Administrative Agent:
	If the Backstopped Amendments are not obtained on or prior to the Closing Date, Citi will act as sole and exclusive administrative agent and collateral agent (in such capacities, the “Bank Administrative Agent”, collectively with any other agents party to the Senior Facilities Documentation, the “Agents”) for a syndicate of banks, financial institutions and institutional lenders excluding any Disqualified Lender (together with the Initial Lenders, the “Lenders”), and will perform the duties customarily associated with such roles.  If the Backstopped Amendments are obtained on or prior to the Closing Date, JPMorgan Chase Bank, N.A., will continue to act as sole and exclusive administrative agent and collateral agent under the Existing Credit Agreement (as amended by the Backstop Amendments) (and JPMorgan Chase Bank, N.A. will, in such event, be the “Bank Administrative Agent” for purposes of this Exhibit B, as the context may require).

Sole Bookrunner and Sole Lead
		
	Arranger:
	Citi will act as sole lead arranger for the Senior Facilities (in such capacity, together with any of its designated affiliates of similar creditworthiness, the “Lead Arrangers”) and as sole bookrunner, and will perform the duties customarily associated with such roles.

		
	New Senior Secured Credit Facilities:
	(A)    If the Backstopped Amendments are not obtained on or prior to the Closing Date, a senior secured tranche A term loan facility in an aggregate principal amount equal to the aggregate principal amount of Tranche A Term Loans (as defined in the Existing Credit Agreement) outstanding immediately prior to the Closing Date (not to exceed $588.75 million) (the “Term Loan A Facility”) plus, at the Borrower’s election, an amount sufficient to fund any OID or upfront fees required to be funded in connection with (x) the “market flex” provisions in the Fee Letter or (y) the issuance of the Senior Notes or any other debt securities pursuant to any offering by Borrower or any of its direct or indirect subsidiaries undertaken to finance the Acquisition (the “Securities”), which amounts shall be automatically added to the Commitment Parties’ commitments under the Commitment Letter (the loans under the Term Loan A Facility, together with any loans issued under the Incremental Term Facilities or the Refinancing Term Facilities designated as Tranche A Term Loans, the “Tranche A Term Loans”).

2 All capitalized terms used but not defined herein have the meanings given to them in the Commitment Letter to which this Term Sheet is attached, including the Exhibits thereto.  In the event any such capitalized term is subject to multiple and differing definitions, the appropriate meaning thereof in this Exhibit shall be determined by reference to the context in which it is used.
B-1
        

CONFIDENTIAL        EXHIBIT B

(B) A senior secured tranche B term loan facility in an aggregate principal amount of $965 million, or such lesser amount as the Borrower shall determine in its sole discretion (the “Term Loan B Facility”; together with the Term Loan A Facility, the “Term Facilities”) plus, at the Borrower’s election, an amount sufficient to fund any OID or upfront fees required to be funded in connection with (x) the “market flex” provisions in the Fee Letter or (y) the issuance of the Senior Notes or any other Securities, which amounts shall be automatically added to the Commitment Parties’ commitments under the Commitment Letter (the loans under the Term Loan B Facility, together with any loans issued under the Incremental Term Facilities or the Refinancing Term Facilities designated as Tranche B Term Loans, the “Tranche B Term Loans”).  The Tranche A Term Loans and the Tranche B Term Loans are collectively referred to as the “Term Loans”.    
(C) If the Backstopped Amendments are not obtained on or prior to the Closing Date, a senior secured revolving credit facility (the revolving commitments thereunder “Revolving Commitments”) in an aggregate amount equal to the aggregate Revolving Credit Commitments (as defined in the Existing Credit Agreement) outstanding immediately prior to the Closing Date (but, in any event, not to exceed $650 million) (the “Revolving Facility” and, together with the Term Facilities, the “Senior Facilities”), of which up to an amount equal to $50 million will be available in the form of letters of credit.
In connection with the Revolving Facility, the Bank Administrative Agent (in such capacity, the “Swingline Lender”) will make available to the Borrower a swingline facility under which the Borrower may make short-term borrowings of up to $40 million.  Except for purposes of calculating the Commitment Fee described below, any such swingline borrowings will reduce availability under the Revolving Facility on a dollar-for-dollar basis.
Each Lender under the Revolving Facility (each such Lender, a “Revolving Lender”) shall, promptly upon request by the Swingline Lender, fund to the Swingline Lender its pro rata share of any swingline borrowings.
If any Lender becomes a Defaulting Lender (to be defined in a manner substantially similar to the corresponding term in the Existing Credit Agreement), then the swingline exposure of such Defaulting Lender will automatically be reallocated among the non-Defaulting Lenders pro rata in accordance with their commitments under the Revolving Facility up to an 

B-2

CONFIDENTIAL        EXHIBIT B

amount such that the revolving credit exposure of such non-Defaulting Lender does not exceed its commitments. In the event such reallocation does not fully cover the exposure of such Defaulting Lender, the Swingline Lender may require the Borrower to repay such “uncovered” exposure in respect of the swingline loans and will have no obligation to make new swingline loans to the extent such swingline loans would exceed the commitments of the non-Defaulting Lenders.

In the event that the Backstopped Amendments are obtained on or prior to the Closing Date, (a) the provisions in this Exhibit B relating to the Term Loan A Facility and the Revolving Facility (other than the increase in the swingline commitment referenced under the heading “New Senior Secured Credit Facilities”) shall not apply (it being understood that, except as modified by Backstopped Amendments, the terms of the Existing Credit Facility shall continue to apply to the Existing Credit Facilities (as defined below)), and (b) except as otherwise provided herein, references herein to the “Senior Facilities” shall mean the Term Loan B Facility and the credit facilities outstanding under the Existing Credit Agreement immediately prior to the Closing Date (such credit facilities, the “Existing Credit Facilities”), as the context may require.

		
	Incremental Facilities:
	The Senior Facilities Documentation will permit the Borrower to (a) add one or more incremental term loan facilities and/or increase the loans under the Term Facilities (each, an “Incremental Term Facility”) and (b) add one or more revolving credit facilities and/or increase commitments under the Revolving Facility (any such revolving credit facility or increase, an “Incremental Revolving Facility”; the Incremental Term Facilities and the Incremental Revolving Facilities are collectively referred to as “Incremental Facilities”) on terms substantially similar to those set forth in the Existing Credit Agreement; provided that (i) the Incremental Facilities do not exceed in the aggregate the sum of (A) $350 million plus (B) all voluntary prepayments and voluntary permanent commitment reductions of the Senior Facilities made prior to such date of incurrence (other than voluntary prepayments and voluntary commitment reductions to the extent funded by a contemporaneous refinancing) plus (C) an unlimited amount at any time (including at any time prior to utilization of amounts set forth in clause (A) and (B) above) so long as the First Lien Leverage Ratio (to be defined in a manner substantially similar to the corresponding definition in the Existing Credit Agreement) as of the last day of the most recently ended period of four consecutive fiscal quarters for which financial statements are internally available, on a pro forma basis after 

B-3

CONFIDENTIAL        EXHIBIT B

giving effect to such Incremental Facility ((1) assuming all commitments under any such Incremental Revolving Facility were fully drawn and (2) assuming that all indebtedness incurred under such Incremental Facility is first-lien indebtedness) does not exceed 3.75:1.00 (the amount under clauses (A), (B) and (C), the “Available Incremental Amount”) and (ii) the “most favored nations” pricing provision in the Existing Credit Agreement will be revised such that such provision applies only with respect to any Incremental Term Facility made on or prior to the date that is 6 months after the Closing Date.
In addition, the Borrower may, in lieu of adding Incremental Term Facilities, utilize any part of the Available Incremental Amount at any time by issuing or incurring Incremental Equivalent Debt (as defined below), subject to customary conditions to be agreed (such as customary applicable intercreditor documentation reasonably acceptable to the Bank Administrative Agent).
“Incremental Equivalent Debt” means indebtedness in an amount not to exceed the then Available Incremental Amount incurred by the Borrower or any Guarantor consisting of the issuance of senior secured first lien or junior lien loans or notes, subordinated loans or notes or senior unsecured loans or notes, in each case in respect of the issuance of notes, issued in a public offering, Rule 144A or other private placement or bridge financing in lieu of the foregoing, or secured or unsecured “mezzanine” debt, in each case subject to customary conditions to be agreed, including (i) in the case of any such first lien indebtedness, that the First Lien Leverage Ratio as of the last day of the most recently ended period of four consecutive fiscal quarters for which financial statements are internally available, after giving effect to such Incremental Equivalent Debt (assuming all commitments under any Incremental Revolving Facility were fully drawn), on a pro forma basis does not exceed 3.75:1.00 and (ii) in the case of any such junior lien indebtedness or unsecured indebtedness, that the Total Leverage Ratio (to be defined in a manner substantially similar to the corresponding definition in the Existing Credit Agreement) as of the last day of the most recently ended period of four consecutive fiscal quarters for which financial statements are internally available, after giving effect to such Incremental Equivalent Debt (assuming all commitments under any Incremental Revolving Facility were fully drawn), on a pro forma basis does not exceed 5.50:1.00; provided that such indebtedness shall not mature earlier than or have a weighted average life shorter than, any of the Senior Facilities.  Incremental Equivalent Debt (other 

B-4

CONFIDENTIAL        EXHIBIT B

than with respect to any such debt in the form of senior secured first lien loans) shall not be subject to the requirement set forth in clause (viii) of the first paragraph in this “Incremental Facilities” section; provided that Incremental Equivalent Debt that is first lien secured indebtedness incurred under the Available Incremental Amount outside of the Senior Facilities shall not be in the form of loans.
In the case of the incurrence of any indebtedness or liens or the making of any investments, restricted payments or fundamental changes or the designation of any restricted subsidiaries or unrestricted subsidiaries in connection with a permitted acquisition (a “Limited Condition Acquisition”),  at the Borrower’s option, the relevant ratios and baskets shall be determined as of the date the definitive acquisition agreements for such Limited Condition Acquisition are entered into and calculated as if the Limited Condition Acquisition and other pro forma events in connection therewith were consummated on such date; provided that if the Borrower has made such an election, in connection with determining whether the calculation of any ratio or basket with respect to the incurrence of any debt or liens, or the making of any investments, restricted payments, prepayments of subordinated debt, asset sales, fundamental changes or the designation of a restricted subsidiary or unrestricted subsidiary in connection with such Limited Condition Acquisition is permitted on or following such date and prior to the earlier of the date on which such Limited Condition Acquisition is consummated or the definitive agreement for such acquisition is terminated  or expires without consummation of such acquisition, any such ratio shall be calculated on a pro forma basis assuming such Limited Condition Acquisition and other pro forma events in connection therewith (including any incurrence of indebtedness) have been consummated and assuming further that EBITDA and consolidated net income of any target of such Limited Condition Acquisition can only be used in the determination of the relevant ratios and baskets if and when such Limited Condition Acquisition has closed.
In connection with any action being taken in connection with a Limited Condition Acquisition, for purposes of determining compliance with any provision which requires that no default, event of default or specified event of default, as applicable, has occurred, is continuing or would result from any such action, as applicable, such condition shall, at the option of the Borrower, be deemed satisfied, so long as no default, event of default or specified event of default, as applicable, exists on the 

B-5

CONFIDENTIAL        EXHIBIT B

date the definitive agreements for such Limited Condition Acquisition are entered into.
		
	Refinancing Facilities:
	The Senior Facilities Documentation will permit the Borrower to refinance loans under any Term Facility or commitments under the Revolving Facility (which, for purposes of this paragraph, shall include the Existing Credit Facilities) from time to time, in whole or in part, with one or more new term facilities (each, a “Refinancing Term Facility”) or new revolving credit facilities (each, a “Refinancing Revolving Facility”; the Refinancing Term Facilities and the Refinancing Revolving Facilities are collectively referred to as “Refinancing Facilities”), respectively, under the Senior Facilities Documentation with the consent of the Borrower, the Bank Administrative Agent and the lenders providing such Refinancing Term Facility or Refinancing Revolving Facility or in the case of debt refinancing of any Term Facility, with one or more additional series of senior unsecured or senior subordinated notes or loans or senior secured loans or notes that will be secured by the Collateral on a pari passu basis with the applicable Senior Facilities being refinanced or junior lien secured notes or loans that will be secured on a subordinated basis to such Senior Facility (and such notes or loans, “Refinancing Notes” and, together with the Refinancing Facilities, the “Refinancing Debt”); provided that (i) any Refinancing Term Facility or Refinancing Notes do not mature prior to the final scheduled maturity date of, or have a shorter weighted average life to maturity than, the remaining weighted average life of loans under the applicable Term Facility being refinanced, (ii) any Refinancing Revolving Facility does not mature prior to the maturity date of the revolving commitments being refinanced, (iii) the other terms and conditions of such Refinancing Term Facility, Refinancing Revolving Facility or Refinancing Notes (excluding pricing, interest rate margins, fees, discounts, rate floors and prepayment or redemption terms) are substantially identical to, or (taken as a whole) are no more favorable (as reasonably determined by the Borrower) to the lenders providing such Refinancing Term Facility, Refinancing Revolving Facility or Refinancing Notes, as applicable, than, those applicable to the applicable Term Facility or revolving commitments being refinanced (except for covenants or other provisions applicable only to periods after the latest final scheduled maturity date of the applicable Term Facility and revolving credit commitments existing at the time of such refinancing) (it being understood that to the extent any financial maintenance covenant is added for the benefit of such (A) Refinancing Term Facility or Refinancing Notes, no consent shall be required from the Bank Administrative Agent 

B-6

CONFIDENTIAL        EXHIBIT B

or any applicable Lender to the extent that such financial maintenance covenant is also added for the benefit of each Senior Facility remaining outstanding after the incurrence or issuance of such Refinancing Debt or (B) Refinancing Revolving Facility, no consent shall be required from the Bank Administrative Agent or any Lender to the extent that such financial maintenance covenant is also added for the benefit of the Revolving Facility that then benefits from a financial maintenance covenant and is remaining outstanding after the incurrence of such Refinancing Revolving Facility), (iv) any secured Refinancing Debt shall be subject to an intercreditor agreement on terms reasonably acceptable to the Bank Administrative Agent and (v) any Refinancing Debt which is in the form of loans that is incurred outside of the Senior Facilities will be unsecured or secured on a junior basis.
		
	Purpose:
	(A)    The proceeds of the Term Facilities will be used by the Borrower on the Closing Date, together with the proceeds of the Senior Notes and/or Senior Bridge Loans and borrowings under the Revolving Facility, to pay the consideration for the Acquisition, to refinance existing indebtedness of the Company and its subsidiaries (including accrued and unpaid interest and applicable premiums) and to pay costs and expenses related to the Transactions.

(B)    The letters of credit and the proceeds of loans under the Revolving Facility (except as set forth below) will be used by the Borrower and its subsidiaries for working capital and general corporate purposes (including permitted acquisitions); provided that the amount of the Revolving Facility utilized to fund working capital, pay amounts owing to finance the Transaction or to pay costs and expenses related to the Transactions on the Closing Date shall be subject to the limitation set forth below.
		
	Availability:
	(A)    The Term Facilities will be available in a single drawing on the Closing Date.  Amounts borrowed under the Term Facilities that are repaid or prepaid may not be reborrowed.

(B)    Loans under the Revolving Facility will be made available on the Closing Date (i) to fund original issue discount or upfront fees required to be funded under the “market flex” provisions of the Fee Letter, (ii) to finance the Transactions and fees and expenses related to the Transactions (including to fund original issue discount or upfront fees in connection with the Senior Facilities, the Senior Notes or any other Securities not required to be funded under the “market flex” provisions of the Fee Letter), (iii) for working capital needs and (iv) replace, backstop 

B-7

CONFIDENTIAL        EXHIBIT B

or cash collateralize existing letters of credit; provided that the amounts described in clause (ii) above (other than in respect of the parenthetical in clause (ii) above) shall not exceed $125 million. 
Letters of credit may be issued on the Closing Date to backstop or replace letters of credit outstanding on the Closing Date (including by “grandfathering” such existing letters of credit in the Revolving Facility) or for other general corporate purposes.
Loans under the Revolving Facility will be available at any time prior to the final maturity of the Revolving Facility, in minimum principal amounts to be agreed.  Amounts repaid under the Revolving Facility may be reborrowed.
		
	Interest Rates and Fees:
	As set forth on Annex I hereto.

		
	Default Rate:
	Any principal or interest payable under or in respect of the Senior Facilities not paid when due shall bear interest at the applicable interest rate plus 2% per annum.  Other overdue amounts shall bear interest at the interest rate applicable to ABR loans plus 2% per annum.

		
	Letters of Credit:
	If the Backstopped Amendments are not obtained on or prior to the Closing Date, letters of credit under the Revolving Facility will be issued by the Bank Administrative Agent and/or another Lender under the Revolving Facility reasonably acceptable to the Borrower and the Bank Administrative Agent and such Revolving Lender (each, an “Issuing Bank”) on terms substantially similar to those set forth in the Existing Credit Agreement.  Each letter of credit shall expire not later than the earlier of (a) 12 months after its date of issuance and (b) the fifth business day prior to the final maturity of the Revolving Facility; provided that any letter of credit may provide for renewal thereof for additional periods of up to 12 months (which in no event shall extend beyond the date referred to in clause (b) above, except to the extent cash collateralized or backstopped pursuant to arrangements reasonably acceptable to the Issuing Bank and the Bank Administrative Agent).

Drawings under any letter of credit shall be reimbursed by the Borrower within no more than one business day after notice of drawing is delivered.  To the extent that the Borrower does not reimburse the Issuing Bank within one business day, the Lenders under the Revolving Facility shall be irrevocably obligated to reimburse the Issuing Bank pro rata based upon their respective Revolving Facility commitments.

B-8

CONFIDENTIAL        EXHIBIT B

If any Lender becomes a “Defaulting Lender”, then the letter of credit exposure of such Defaulting Lender will automatically be reallocated among the non-Defaulting Lenders pro rata in accordance with their commitments under the Revolving Facility up to an amount such that the revolving credit exposure of such non-Defaulting Lender does not exceed its commitments. In the event that such reallocation does not fully cover the letter of credit exposure of such Defaulting Lender, the applicable Issuing Bank may require the Borrower to cash collateralize such “uncovered” exposure in respect of each outstanding letter of credit and will have no obligation to issue new letters of credit, or to extend, renew or amend existing letters of credit to the extent letter of credit exposure would exceed the commitments of the non-Defaulting Lenders, unless such “uncovered” exposure is cash collateralized to the Issuing Bank’s reasonable satisfaction.
Final Maturity and
		
	Amortization:
	(A)    Term Facilities

The Term Loan A Facility will mature on October 2, 2019 and the Term Loan B Facility will mature on the date that is 7 years after the Closing Date.  The Term Loan A Facility will amortize on the same terms as the Existing Credit Agreement, and the Term Loan B Facility will amortize in equal quarterly installments in aggregate annual amounts equal to 1% per annum of the original principal amount of the Term Loan B Facility, with the balance payable on the final maturity date; provided that the Senior Facilities Documentation shall provide the right for individual Lenders to agree to extend the maturity date of their outstanding Tranche A Loans and/or Tranche B Term Loans, as the case may be, on terms substantially consistent with the Existing Credit Agreement.
(B) Revolving Facility
The Revolving Facility will mature on October 2, 2019; provided that the Senior Facilities Documentation shall provide the right for individual Lenders to agree to extend the maturity date of their Revolving Commitments on terms substantially consistent with the Existing Credit Agreement.
		
	Guarantees:
	All obligations of the Borrower (the “Borrower Obligations”) under the Senior Facilities and under any interest rate protection or other hedging arrangements (other than any Excluded Swap Obligation (to be defined in a manner substantially similar to the corresponding definition in the Existing Credit Agreement)) entered into with an Agent, a Lender or any affiliate of an Agent 

B-9

CONFIDENTIAL        EXHIBIT B

or a Lender at the time of the entering into of such arrangements (“Hedging Obligations”) and under any cash management arrangements entered into with an Agent, a Lender or any affiliate of an Agent, a Lender at the time of the entering into of such arrangements (“Cash Management Obligations”; collectively with any Hedging Obligations and Borrower Obligations, collectively the “Obligations”) will be unconditionally guaranteed jointly and severally on a senior secured basis (the “Guarantees”) by Team Health Holdings, Inc. (“Holdings”) and the other guarantors pursuant to the “Collateral and Guarantee Requirement” contained in the Existing Credit Agreement (collectively, the “Guarantors”) and on other terms substantially similar to the Existing Credit Agreement, in each case, subject to the Limited Conditionality Provision.

		
	Security:
	The Borrower Obligations, the Guarantees, any Hedging Obligations and any Cash Management Obligations will be secured by substantially all of the present and after-acquired assets of the Borrower and each Guarantor (collectively, the “Collateral”) on terms substantially similar to the Existing Credit Agreement. 

Notwithstanding the foregoing, (a) no control agreements or other control arrangements shall be required with respect to any assets requiring perfection through control agreements (including, without limitation, cash, deposit accounts or securities accounts), (b) immaterial notes and other evidence of immaterial indebtedness shall not be required to be delivered and (c) the requirements of the preceding paragraph shall be subject to the Limited Conditionality Provision.
		
	Mandatory Prepayments:
	Will be substantially similar to the Existing Credit Agreement.  

Voluntary Prepayments and
		
	Reductions in Commitments:
	Will be substantially similar to the Existing Credit Agreement.  

		
	Senior Facilities Documentation:
	The Facilities Documentation for the Senior Facilities and, if applicable, the Backstopped Amendments (the “Senior Facilities Documentation”) shall be negotiated in good faith to finalize the Senior Facilities Documentation, giving effect to the Limited Conditionality Provision, shall be based on the definitive documentation for the Borrower’s amended and restated credit agreement dated as of October 2, 2014 (the “Existing Credit Agreement”), shall contain the terms and conditions set forth in this Exhibit B and, to the extent any terms are not set forth in this Exhibit B, shall otherwise be consistent with the Existing Credit Agreement (as in effect on the date 

B-10

CONFIDENTIAL        EXHIBIT B

hereof), with additions, deletions, modifications and other changes as Lead Arrangers and the Borrower reasonably determine to be necessary or advisable, including, among other things, (i) to take into account prevailing market conditions, (ii) to give effect to the Transactions and the other transactions contemplated hereby, (iii) to provide for and give effect to the Guarantees and the security over the Collateral, (iv) to reflect changes in law or accounting standards or cure mistakes or defects and (v) to reflect reasonable administrative, agency and operational requirements of the Bank Administrative Agent (collectively, the “Documentation Principles”). The Senior Facilities Documentation shall contain only those payments, conditions to borrowing, mandatory prepayments, representations, warranties, covenants and events of default expressly set forth in this Exhibit B, in each case, applicable to the Borrower and its restricted subsidiaries (and, where indicated, Holdings), and with standards, qualifications, thresholds, exceptions, “baskets” and grace and cure periods consistent with the Documentation Principles.
		
	Representations and Warranties:
	Will be substantially similar to the Existing Credit Agreement. 

		
	Conditions Precedent to Initial Borrowing:
	Subject to the Limited Conditionality Provision, the initial borrowings under the Senior Facilities (which, if the Backstopped Amendments are obtained on or prior to the Closing Date, shall be limited to the Term Loan B Facility) on the Closing Date will be subject only to the Funding Conditions.

		
	Conditions Precedent to all Borrowings:
	Delivery of notice, accuracy of representations and warranties in all material respects (subject on the Closing Date to the Limited Conditionality Provision) and, except for the initial borrowings under the Senior Facilities (which, if the Backstopped Amendments are obtained on or prior to the Closing Date, shall be limited to the Term Loan B Facility) on the Closing Date, absence of defaults.  

		
	Affirmative Covenants:
	Will be substantially similar to the Existing Credit Agreement.

		
	Negative Covenants:
	Will be substantially similar to the Existing Credit Agreement, subject to increases to certain baskets and thresholds to reflect a larger company after giving effect to the Acquisition (and, for the avoidance of doubt, the indebtedness covenant will permit the Senior Notes, the Senior Bridge Facility and the Securities).

		
	Financial Covenant:
	The Borrower will maintain a Total Leverage Ratio (to be defined in a manner substantially similar to the corresponding definition in the Existing Credit Agreement) of no greater than 

B-11

CONFIDENTIAL        EXHIBIT B

6.25:1.00 with one step-down to be agreed (with such step-down commencing on the first anniversary of the Closing Date).
		
	Events of Default:
	Will be substantially similar to the Existing Credit Agreement, subject to adjustments to certain baskets and thresholds to reflect a larger company after giving effect to the Acquisition. 

		
	Other terms:
	Will be substantially similar to the Existing Credit Agreement. 

Counsel to the Commitment
		
	Parties and Lead Arrangers:
	Cravath, Swaine & Moore LLP.

    

B-12

CONFIDENTIAL        ANNEX I TO
EXHIBIT B

		
	Interest Rates:
	The interest rates under the Senior Facilities will be as follows:

Revolving Facility and Term Loan A Facility
At the option of the Borrower, initially, as applicable, Adjusted LIBOR, plus 2.25% or ABR plus 1.25%. 
From and after the delivery by the Borrower to the Bank Administrative Agent of the Borrower’s financial statements for the period ending at least one full fiscal quarter following the Closing Date, the applicable margin under the Revolving Facility and the Term Loan A Facility shall be subject to the following pricing grid:
	
			
	First Lien Net Leverage Ratio
	Adjusted LIBOR Rates
	ABR

	> 3.75x
	2.25%
	1.25%

	> 2.50x but < 3.75x
	2.00%
	1.00%

	> 1.75x but < 2.50x
	1.75%
	0.75%

	< 1.75x
	1.50%
	0.50%

Term Loan B Facility: Adjusted LIBOR plus 3.00% or ABR plus 2.00%.
All Facilities
The Borrower may elect interest periods of 1, 2, 3 or 6 months (or, if agreed by all relevant Lenders, 12 months or a shorter period) for Adjusted LIBOR borrowings.
Calculation of interest shall be on the basis of the actual days elapsed in a year of 360 days (or 365 or 366 days, as the case may be, in the case of ABR loans based on the Prime Rate) and interest shall be payable (i) in the case of Adjusted LIBOR loans, at the end of each interest period and, in any event, at least every 3 months and (ii) in the case of ABR loans, quarterly in arrears.
ABR is the Alternate Base Rate, which is the highest of the Bank Administrative Agent’s Prime Rate, the Federal Funds Effective Rate plus 1/2 of 1.00%, and one-month Adjusted LIBOR plus 1.00% per annum, and subject, solely in the case of the Term Loan B Facility, to a floor of 1.75% per annum.
Adjusted LIBOR is the London interbank offered rate for U.S. dollars, adjusted for customary Eurodollar reserve requirements, if any, and 

I-B-1

CONFIDENTIAL        EXHIBIT B

subject, solely in the case of the Term Loan B Facility, to a floor of 0.75% per annum.
		
	Letter of Credit Fee:
	A per annum fee equal to the spread over Adjusted LIBOR under the Revolving Facility will accrue on the aggregate face amount of outstanding letters of credit under the Revolving Facility, payable in arrears at the end of each quarter and upon the termination of the Revolving Facility, in each case for the actual number of days elapsed over a 360-day year.  Such fees shall be distributed to the Lenders participating in the Revolving Facility pro rata in accordance with the amount of each such Lender’s Revolving Facility commitment.  In addition, the Borrower shall pay to the Issuing Bank, for its own account, (a) a fronting fee equal to 0.125% of the aggregate face amount of outstanding letters of credit, payable in arrears at the end of each quarter and upon the termination of the Revolving Facility, calculated based upon the actual number of days elapsed over a 360-day year, and (b) customary issuance and administration fees.

		
	Commitment Fees:
	0.35% per annum on the average daily undrawn portion of the commitments in respect of the Revolving Facility, payable quarterly in arrears after the Closing Date and upon the termination of the commitments and calculated based on the number of days elapsed in a 360-day year.

From and after the delivery by the Borrower to the Bank Administrative Agent of the Borrower’s financial statements for the period ending at least one full fiscal quarter following the Closing Date, the commitment fee rate shall be subject to the following pricing grid:
	
		
	First Lien Net Leverage Ratio
	Commitment Fee Rate

	> 3.75x
	0.35%

	> 2.50x but < 3.75x
	0.35%

	> 1.75x but < 2.50x
	0.30%

	< 1.75x
	0.30%

Swingline loans shall, for purposes of the commitment fee calculations only, not be deemed to be a utilization of the Revolving Facility.

I-B-2

CONFIDENTIAL        EXHIBIT C

Project Intrepid 
Senior Unsecured Increasing Rate Bridge Loans 
Summary of Principal Terms and Conditions3 

		
	Borrower:
	Team Finance LLC and Health Finance Corporation (collectively, the “Borrower”).

		
	Administrative Agent:
	Citibank, N.A. will act as sole and exclusive administrative agent (in such capacity, the “Bridge Administrative Agent”) for a syndicate of banks, financial institutions and institutional lenders determined in consultation with the Borrower excluding any Disqualified Lender (together with the Initial Lenders, the “Lenders”), and will perform the duties customarily associated with such role.

Bookrunner and Lead
		
	Arranger:
	Citi will act as lead arranger for the Senior Bridge Loans (in such capacity, together with any of its designated affiliates of similar creditworthiness, the “Lead Arranger”) and as bookrunner, and will perform the duties customarily associated with such roles.

		
	Bridge Loans:
	Senior unsecured increasing rate bridge loans (the “Senior Bridge Loans”).

		
	Uses of Proceeds:
	The proceeds of the Senior Bridge Loans will be used by the Borrower on the Closing Date, together with the proceeds of the Senior Facilities and/or the Senior Notes (if any), solely to pay the consideration for the Acquisition, to refinance certain existing indebtedness of the Company and its subsidiaries (including accrued and unpaid interest and applicable premiums) and to pay costs and expenses related to the Transactions.

		
	Principal Amount:
	$545 million of Senior Bridge Loans plus, at the Borrower’s election, an amount sufficient to fund any OID or upfront fees required to be funded on the Closing Date in connection with the issuance of the Senior Notes or any other Securities on the Closing Date (which amounts shall be automatically added to the Commitment Parties’ commitments in respect of the Senior Bridge Facility under the Commitment Letter) minus the aggregate amount of gross proceeds from (i) the Senior Notes or any other debt issuance and (ii) any public equity issuances of Holdings, in each case between the date of the Borrower’s acceptance of the Commitment Letter and up to and including 

3     All capitalized terms used but not defined herein have the meanings given to them in the Commitment Letter to which this Term Sheet is attached, including the Exhibits thereto.  In the event any such capitalized term is subject to multiple and differing definitions, the appropriate meaning thereof in this Exhibit shall be determined by reference to the context in which it is used.
C-1

the Closing Date (and the Commitment Parties’ commitments in respect of the Senior Bridge Facility under the Commitment Letter shall be automatically reduced by such amounts).
		
	Ranking:
	The Senior Bridge Loans will constitute senior unsecured indebtedness of the Borrower.

		
	Guarantees:
	The borrower under the Senior Facilities and each existing and subsequently acquired or organized guarantor of the Senior Facilities will jointly and severally guarantee the Senior Bridge Loans on a senior unsecured basis, with the guarantee of each such guarantor under the Senior Bridge Facility being pari passu in right of payment with all obligations under the Senior Facilities.  Any guarantee will be automatically released upon the release of the corresponding guarantee under the Senior Facilities or, with respect to the borrower under the Senior Facilities, upon the release of the borrower from all obligations under the Senior Facilities (in each case, other than upon payment in full thereof).

		
	Security:
	None.

		
	Interest Rates:
	Interest for the first three-month period commencing on the Closing Date shall be payable in respect of Senior Bridge Loans at (a) LIBOR (as defined below) plus (b) 500 basis points. Thereafter, interest on the Senior Bridge Loans shall increase by an additional 50 basis points at the beginning of each three-month period subsequent to the initial three-month period, increasing to a maximum equal to the Total Cap (as defined in the Fee Letter).

“LIBOR” on any date, means the greater of (i) the London interbank offered rate for dollars, adjusted for customary Eurodollar reserve requirements if any, for a three month period (as determined two business days prior to the start of the applicable interest period) and (ii) 1.00%.
Notwithstanding anything to the contrary set forth above, at no time shall the per annum yield on the Senior Bridge Loans exceed the Total Cap.
		
	Interest Payments:
	Interest on the Senior Bridge Loans will be payable in cash, quarterly in arrears.

		
	Default Rate:
	The applicable interest rate plus 2.00% on overdue amounts.

Notwithstanding anything to the contrary set forth herein, in no event shall any cap or limit on the yield or interest rate payable 

C- 2

with respect to the Senior Bridge Loans, Senior Unsecured Term Loans or Senior Exchange Notes affect the payment of any default rate of interest in respect of any Senior Bridge Loans, Senior Unsecured Term Loans or Senior Exchange Notes.
		
	Maturity:
	The Senior Bridge Loans will mature on the first anniversary of the Closing Date (the “Maturity Date”).  On the Maturity Date, any Senior Bridge Loan that has not been previously repaid in full will be automatically converted into a senior unsecured term loan (a “Senior Unsecured Term Loan”) that is due on the date that is 8 years after the Closing Date.  The date on which Senior Bridge Loans are converted into Senior Unsecured Term Loans is referred to as the “Senior Conversion Date”.  On the Senior Conversion Date, and on the 15th calendar day of each month thereafter (or the immediately succeeding business day if such calendar day is not a business day), at the option of the applicable Lender, Senior Unsecured Term Loans may be exchanged in whole or in part for senior unsecured exchange notes (the “Senior Exchange Notes”) having an equal principal amount; provided, that (i) no Senior Exchange Notes shall be issued until the Borrower shall have received requests to issue at least $150 million in aggregate principal amount of Senior Exchange Notes and (ii) no subsequent Senior Exchange Notes shall be issued until the Borrower shall have received additional requests to issue at least $250 million in aggregate principal amount of additional Senior Exchange Notes.

The Senior Unsecured Term Loans will be governed by the provisions of the Senior Bridge Loan Documents and will have the same terms as the Senior Bridge Loans except as expressly set forth on Annex I hereto.  The Senior  Exchange Notes will be issued pursuant to an indenture that will have the terms set forth on Annex II hereto.  The Senior Bridge Loans, the Senior Unsecured Term Loans and the Senior Exchange Notes shall be pari passu for all purposes.
		
	Mandatory Prepayment:
	The Senior Bridge Loans shall be prepaid at 100% of the outstanding principal amount thereof with, subject to exceptions and baskets consistent with the Documentation Principles, (i) the net proceeds from the issuance of the Senior Notes or any other debt securities, or subject to certain exceptions to be mutually agreed, other indebtedness for borrowed money of the Borrower or any of its restricted subsidiaries (such exceptions to include borrowings under any Incremental Facility or any other indebtedness the proceeds of which are required to be applied to a mandatory prepayment in respect of the Senior Facilities or other secured debt), (ii) the 

C- 3

net proceeds from any non-ordinary course asset sales by the Borrower or any of its restricted subsidiaries in excess of amounts either reinvested in accordance with the Senior Facilities or used to repay the Term Facilities or certain other secured debt and (iii) the net proceeds of public equity issuances of Holdings and the Borrower (subject to certain exceptions, including equity issued to Holdings or the Borrower or pursuant to employee benefit plans or the proceeds of public equity issuances which are required to be applied to a mandatory prepayment in respect of the Senior Facilities or other secured debt). The Borrower will also be required to prepay the Senior Bridge Loans following the occurrence of a change of control at 100% of the outstanding principal amount thereof.  In the event any Lender or affiliate of a Lender purchases debt securities from the Borrower pursuant to a permitted securities demand at a price above the level at which such Lender or affiliate has reasonably determined such debt securities can be resold by such Lender or affiliate to a bona fide third party at the time of such purchase (and notifies the Borrower thereof), the net cash proceeds received by the Borrower in respect of such debt securities may, at the option of such Lender or affiliate, be applied first to prepay the Senior Bridge Loans of such Lender or affiliate prior to being applied to prepay the Senior Bridge Loans held by other Lenders. These mandatory prepayment provisions will not apply to the Senior Unsecured Term Loans. 
		
	Optional Prepayment:
	The Senior Bridge Loans may be prepaid, in whole or in part, at par plus accrued and unpaid interest upon not less than three business days’ prior written notice, at the option of the Borrower at any time.

Right to Resell Senior 
		
	Bridge Loans:
	Each Lender shall have the absolute and unconditional right to resell or assign the Senior Bridge Loans held by it in compliance with applicable law to any third party at any time, in consultation with (but without the consent of) the Borrower and with the consent of the Bridge Administrative Agent (not to be unreasonably withheld, conditioned or delayed); provided that, for the twelve month period commencing on the Closing Date, the consent of the Borrower shall be required with respect to any assignment that would result in the Initial Lenders holding less than 50.1% of the aggregate outstanding principal amount of the Senior Bridge Loans; provided that no such consent of the Borrower shall be required after the occurrence and during the continuance of a payment or bankruptcy default or after the occurrence of a Demand Failure Event (as defined in the Fee Letter). 

C- 4

The Lenders will be permitted to sell participations in the Senior Bridge Loans without restriction.  Voting rights of participants shall be limited to matters in respect of (a) reductions of principal, interest or fees of the commitments participated to such participants, (b) extensions of final maturity of the Senior Bridge Loans, (c) releases of all or substantially all of the value of the guarantees provided by the guarantors and (d) changes in voting thresholds.
Conditions Precedent to Senior
		
	Bridge Loans:
	The borrowing of the Senior Bridge Loans will be subject to delivery of notice, accuracy of the representations and warranties in all material respects (subject to the Limited Conditionality Provision) and the applicable conditions precedent set forth in Section 6 of the Commitment Letter and Exhibit D to the Commitment Letter.

Senior Bridge 
		
	Loan Documents:
	The definitive documentation relating to the Senior Bridge Loans (the “Senior Bridge Loan Documents”) shall be negotiated in good faith to finalize the Senior Bridge Loan Documents, giving effect to the Limited Conditionality Provision, shall be consistent with the indenture governing the senior subordinated notes of the Borrower due 2013 with adjustments to reflect a senior unsecured instrument (as further adjusted based on recent offerings for similarly situated companies in the same industry, the “Precedent Indenture”), shall contain the terms and conditions set forth in this Term Sheet and shall be consistent with the Documentation Principles as applied to transactions of this kind and shall contain administrative agency, operational and other miscellaneous related administration provisions customary for the Bridge Administrative Agent.  Such Senior Bridge Loan Documents shall contain only those payments, conditions to borrowing, mandatory prepayments, representations, warranties, covenants and events of default expressly set forth in this Exhibit C, in each case, applicable to the Borrower and its restricted subsidiaries and with standards, qualifications, thresholds, exceptions, “baskets” and grace and cure periods consistent with the Documentation Principles as applied to transactions of this kind.  

		
	Representations and Warranties:
	The Senior Bridge Loan Documents will contain representations and warranties as are substantially similar to those for the Senior Facilities, with modifications customary for bridge loan financings of this type to the extent necessary to reflect differences in documentation.

C- 5

		
	Covenants:
	The Senior Bridge Loan Documents will contain such affirmative covenants consistent with those of the Precedent Indenture and substantially similar to (but less restrictive than) those for the Senior Facilities to the extent applicable, and the Senior Bridge Loan Documents will contain such incurrence-based negative covenants consistent with those of the Precedent Indenture and as are customary for high yield senior unsecured debt securities (but in any event less restrictive than those in the Senior Facilities) (it being understood that (x) prior to the Maturity Date the restricted payments and debt incurrence covenants shall be more restrictive than is customary for high yield senior unsecured debt securities in a manner to be mutually agreed and following the Maturity Date, the covenants of the Senior Bridge Loans will be automatically modified to be consistent with the covenants in the Senior Exchange Notes, (y) the debt covenant shall include (i) a “credit agreement” basket in the amount of the funded Term Loans plus Revolving Commitments on the Closing Date and permitting up to $350 million in the aggregate of Incremental Facilities and Incremental Equivalent Debt permitted to be incurred under the Senior Facilities Documentation (as in effect on the Closing Date), (ii) a basket for additional debt subject to compliance with a minimum Consolidated Interest Coverage Ratio (to be defined in a manner consistent with the ratio test for unsecured debt in the Precedent Indenture) of 2.00:1.00, with a sublimit (with a growth component based on consolidated total assets) to be mutually agreed for debt under this ratio basket of non-Guarantor subsidiaries and (iii) baskets for other debt in amounts to be agreed) and (z) for the avoidance of doubt, the liens covenant shall not include a basket for lien incurrence subject to a leverage ratio for liens ranking junior in priority to the liens securing the Senior Facilities. There will not be any financial maintenance covenants. 

		
	Events of Default:
	The Senior Bridge Loan Documents will contain such events of default (including notice and grace periods) consistent with those of the Precedent Indenture (but in any event less restrictive than those in the Senior Facilities), consisting of nonpayment of principal, interest or other amounts; violation of covenants; incorrectness of representations and warranties in any material respect; cross-acceleration to material indebtedness; bankruptcy or insolvency proceedings; material monetary judgments subject to a threshold amount; and actual or asserted invalidity of material guarantees.

		
	Voting:
	Amendments and waivers of the Senior Bridge Loan Documents will require the approval of Lenders holding more than 50% of the aggregate principal amount of the Senior Bridge 

C- 6

Loans, except that the consent of each Lender directly adversely affected thereby shall be required with respect to (a) reductions of principal, interest or fees payable to such Lender, (b) extensions of final maturity of the Senior Bridge Loans of such Lender or the due date of any interest or fee payment, (c) releases of all or substantially all of the value of the guarantees provided by the guarantors and (d) changes in voting thresholds.
In addition, if the Bridge Administrative Agent and the Borrower shall have jointly identified an obvious error or any error or omission of a technical nature in the Senior Bridge Loan Documents, then the Bridge Administrative Agent and the Borrower shall be permitted to amend such provision without any further action or consent of any other party with notice given to the Lenders of any such amendment.
		
	Cost and Yield Protection:
	Customary for financings of this kind, it being agreed that the documentation will provide customary provisions regarding withholding tax liabilities and a customary exception to be agreed to the gross-up obligations for U.S. federal withholding taxes imposed pursuant to current Sections 1471-1474 of the Internal Revenue Code of 1986, as amended (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any Treasury regulations or other published administrative guidance promulgated thereunder.    

		
	Expenses and Indemnification:
	The Borrower shall pay (a) if the Closing Date occurs, all reasonable and documented out-of-pocket expenses of the Bridge Administrative Agent and the Lead Arrangers incurred on or after the Closing Date within 30 days of a written demand therefor, together with backup documentation supporting such reimbursement request associated with the syndication of the Senior Bridge Loans and the preparation, execution, delivery and administration of the Senior Bridge Loan Documents and any amendment or waiver with respect thereto (but limited, in the case of legal fees and expenses, to the reasonable and documented fees, disbursements and other charges of one counsel to the Bridge Administrative Agent and the Lead Arrangers taken as a whole and, if necessary, of one local counsel in any relevant material jurisdiction and, solely in a conflict of interest, one additional counsel in each relevant material jurisdiction) and (b) if the Closing Date occurs, all reasonable and documented out-of-pocket expenses of the Bridge Administrative Agent within 30 days of a written demand therefor, together with backup documentation supporting such reimbursement request (but limited, in the case 

C- 7

of legal fees and expenses, to the reasonable and documented fees, disbursements and other charges of one counsel to the Bridge Administrative Agent and the Lenders taken as a whole, and, if necessary, of one local counsel in any relevant material jurisdiction and, solely in a conflict of interest, one additional counsel in each relevant material jurisdiction) in connection with the enforcement of the Senior Bridge Loan Documents or protection of rights thereunder.
The Bridge Administrative Agent, the Lead Arrangers and the Lenders (and their affiliates and their respective officers, directors, employees, agents, advisors and other representatives) (each, an “indemnified person”) will be indemnified for and held harmless against any losses, claims, damages, liabilities or expenses (but limited, in the case of legal fees and expenses, to the reasonable and documented out-of-pocket fees, disbursements and other charges of one counsel to the indemnified persons taken as a whole and, solely in the case of an actual conflict of interest, one additional counsel to the affected indemnified persons taken as a whole in each relevant material jurisdiction (and, if reasonably necessary, one local counsel in any relevant material jurisdiction), incurred in respect of the Senior Bridge Loans or the use or the proposed use of proceeds thereof, except to the extent they arise from the gross negligence, bad faith or willful misconduct of, or material breach of the Senior Bridge Loan Documents by, the relevant indemnified person or any of its affiliates or their respective officers, directors, employees, partners, agents, advisors or other representatives as determined by a final, non-appealable judgment of a court of competent jurisdiction or any dispute solely among the indemnified persons (other than claims against the Bridge Administrative Agent or a Lead Arranger in its capacity or in fulfilling its role as the Bridge Administrative Agent or arranger or any similar role under the Senior Bridge Facility and other than any claims arising out of any act or omission of the Borrower or any of its affiliates), provided further that the Borrower shall not be liable for any indirect, special, punitive or consequential damages (other than in respect of any such damages required to be indemnified pursuant to the indemnification provisions).
		
	Governing Law:
	New York.

Counsel to the Commitment Parties
		
	and Lead Arrangers:
	Cravath, Swaine & Moore LLP.

C- 8

CONFIDENTIAL        ANNEX I to 
EXHIBIT C

Senior Unsecured Term Loans 

		
	Maturity:
	The Senior Unsecured Term Loans will mature on the date that is 8 years after the Closing Date.

		
	Guarantees:
	Same as the Senior Bridge Loans (except no guarantee by Holdings).

		
	Interest Rate:
	The Senior Unsecured Term Loans will bear interest at a rate equal to the Total Cap (as defined in the Fee Letter).

Covenants, Defaults and
		
	Mandatory Offers to Purchase:
	Upon and after the Senior Conversion Date, the covenants, mandatory offers to purchase and defaults which would be applicable to the Senior Exchange Notes, if issued, will also be applicable to the Senior Unsecured Term Loans in lieu of the corresponding provisions of the Senior Bridge Loans (except that any offer to repurchase upon the occurrence of a change of control will be made at 100% of the outstanding principal amount thereof, plus accrued and unpaid interest to the date of repurchase).

		
	Optional Prepayment:
	The Senior Unsecured Term Loans may be prepaid, in whole or in part, at par, plus accrued and unpaid interest upon not less than three days’ prior written notice, at the option of the Borrower at any time.

I-C-1

CONFIDENTIAL        ANNEX II to 
EXHIBIT C

Senior Exchange Notes 

		
	Issue:
	The Senior Exchange Notes will be issued under an indenture.  Such indenture shall be negotiated in good faith and shall be based on forms of definitive documentation agreed to by you and the Commitment Parties, and such indenture (including all covenants, defaults and mandatory offers to purchase) shall be consistent with the terms in this Term Sheet, the Precedent Indenture and the Documentation Principles as applied to transactions of this kind.

		
	Guarantees:
	Same as the Senior Unsecured Term Loans.

		
	Maturity:
	The Senior Exchange Notes will mature on the date that is 8 years after the Closing Date.

		
	Interest Rate:
	The Senior Exchange Notes will bear interest at a rate equal to the Total Cap (as defined in the Fee Letter).

		
	Repurchase with Asset Sale Proceeds:
	The Borrower will be required to make an offer to repurchase the Senior Exchange Notes at 100% of the outstanding principal amount thereof with, subject to exceptions consistent with the Precedent Indenture and the Documentation Principles as applied to transactions of this kind, the net proceeds from any non-ordinary course asset sales by the Borrower or any of its restricted subsidiaries in excess of amounts either reinvested in a manner consistent with the Precedent Indenture and the Documentation Principles as applied to transactions of this kind or applied to repay the Senior Facilities or certain other secured debt.

		
	Repurchase upon Change of Control:
	The Borrower will be required to make an offer to repurchase the Senior Exchange Notes following the occurrence of a change of control at a price in cash equal to 101% (or, 100% in the case of Senior Exchange Notes held by a Commitment Party or its affiliates other than Asset Management Affiliates (as defined in the Engagement Letter)) of the outstanding principal amount thereof, plus accrued and unpaid interest to the date of repurchase.

		
	Optional Redemption:
	The Senior Exchange Notes will be non-callable (subject to the make-whole and equity clawback exceptions in the two succeeding paragraphs below) until the third anniversary of the Closing Date. Thereafter, each Senior Exchange Note will be callable at par plus accrued interest plus a premium equal to 75% of the coupon on such Senior Exchange Note, which premium shall decline ratably on each subsequent anniversary of the Closing Date to zero on the date that is three years prior to the maturity of the Senior Exchange Notes.

C-II-1

Prior to the third anniversary of the Closing Date, the Borrower may redeem Senior Exchange Notes at a make-whole price based on U.S. Treasury notes with a maturity closest to the third anniversary of the Closing Date plus 50 basis points.
Prior to the third anniversary of the Closing Date, the Borrower may redeem up to 40% of the Senior Exchange Notes with proceeds from an equity offering at a redemption price equal to par plus the coupon on such Senior Exchange Notes.
The optional redemption provisions will be otherwise consistent with the Precedent Indenture and the Documentation Principles as applied to transactions of this kind. Senior Exchange Notes held by (and for so long as they are held by) a Commitment Party or its affiliates (other than Asset Management Affiliates) shall be redeemable at any time and from time to time at the option of the Borrower at a redemption price equal to par plus accrued and unpaid interest to the redemption date.
		
	Defeasance Provisions:
	Consistent with the Precedent Indenture and the Documentation Principles as applied to transactions of this kind.

		
	Modification:
	Consistent with the Precedent Indenture and the Documentation Principles as applied to transactions of this kind.

		
	Covenants:
	Consistent with the Precedent Indenture and the Documentation Principles as applied to transactions of this kind (but in any event less restrictive than those in the Senior Facilities and with a reporting covenant appropriate for transactions of this kind).

		
	Registration Rights:
	None.

		
	Events of Default:
	Consistent with the Precedent Indenture and the Documentation Principles as applied to transactions of this kind (but in any event less restrictive than those in the Senior Facilities).

C-II-2

CONFIDENTIAL        EXHIBIT D

Project Intrepid
Senior Secured Credit Facilities 
Senior Unsecured Increasing Rate Bridge Facility 
Additional Conditions Precedent4 

Except as otherwise set forth below, the initial borrowing under each of the Facilities shall be subject to the following additional conditions precedent, which shall be subject to the Limited Conditionality Provision and the Documentation Principles in all respects:
1.    The Acquisition shall have been consummated, or shall be consummated substantially concurrently with the initial borrowing under any of the Facilities, in accordance with the terms of the Acquisition Agreement.  The Acquisition Agreement as in effect on the date of the Commitment Letter shall not have been amended or waived in any material respect by the Borrower or any of its affiliates, nor shall the Borrower or any of its affiliates have given a material consent thereunder, in a manner materially adverse to the Lenders (in their capacity as such) without the consent of the Lead Arrangers (such consent not to be unreasonably withheld, delayed or conditioned) (it being understood and agreed that any change to the definition of “Company Material Adverse Effect” contained in the Acquisition Agreement as in effect on the date hereof shall be deemed to be materially adverse to the Lenders); provided that (a) any amendment, waiver or consent which results in a reduction in the purchase price for the Acquisition shall not be deemed to be materially adverse to the Lenders to the extent after giving effect to the application of total acquisition consideration, such reduction shall be applied to reduce the amount of commitments in respect of the Senior Bridge Facility or the Term Facilities, at the Borrower’s option and (b) any increase in purchase price for the Acquisition shall not be deemed to be materially adverse to the Lenders.  Since December 31, 2014, there has been no effect, change, event, occurrence, development or circumstance that has had, or would reasonably be expected to have, either individually or in the aggregate, a Company Material Adverse Effect (as defined in the Acquisition Agreement as in effect on the date hereof) on the Company. The Acquisition Agreement shall be reasonably satisfactory to the Lead Arrangers; provided that the Lead Arrangers acknowledge and agree that the Acquisition Agreement as in effect on the date hereof is reasonably satisfactory to them. The Acquisition Agreement Representations and the Specified Representations shall be true and correct in all material respects on the Closing Date.  
2.    The Commitment Parties shall have received (a) audited consolidated balance sheets as of December 31, 2012, December 31, 2013 and December 31, 2014 and the audited consolidated statements of operations, comprehensive income, cash flows and equity of the Company for the fiscal years ended December 31, 2012, December 31, 2013 and December 31, 2014 and (b) unaudited consolidated balance sheets, statements of operations, comprehensive income, cash flows and equity of the Company for each subsequent fiscal quarter (other than the fourth fiscal quarter of the Company’s fiscal year) ended at least 45 days prior to the Closing Date.
3.    The Commitment Parties shall have received a pro forma consolidated balance sheet and related pro forma consolidated statement of income of Holdings as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days (or 90 days in case such four-fiscal quarter period is the end of Holdings’s fiscal year) prior to the Closing Date, prepared in good faith after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of the statement of income).

4 All capitalized terms used but not defined herein have the meanings given to them in the Commitment Letter to which this Exhibit is attached, including the other Exhibits thereto.  In the event any such capitalized term is subject to multiple and differing definitions, the appropriate meaning thereof in this Exhibit shall be determined by reference to the context in which it is used.
D-1

4.    The Administrative Agent shall have received the following (the “Closing Deliverables”): (a) customary legal opinions, (b) customary evidence of authority, (c) customary officer’s certificates, (d) good standing certificates (to the extent applicable) in the respective jurisdictions of organization of the Borrower and Guarantors and (e) a solvency certificate, substantially in the form set forth in Annex I attached to this Exhibit D from the chief financial officer, chief accounting officer or other officer with equivalent duties of the Borrower, in each case of clauses (a) through (d) above, to be substantially similar to the documents delivered under the Existing Credit Agreement.
5.    With respect to the Senior Facilities, to the extent required by the Senior Facilities Documentation and subject to the Limited Conditionality Provision, all documents and instruments required to create and perfect the Bank Administrative Agent’s security interests in the Collateral shall have been executed and delivered and, if applicable, be in proper form for filing.
6.    The Administrative Agents shall have received at least 3 business days prior to the Closing Date all documentation and other information about the Borrower and the Guarantors required under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act that has been requested by the Administrative Agents in writing at least 10 business days prior to the Closing Date.

7.    Payment of all fees and expenses due to the Commitment Parties (in the case of expenses), to the extent invoiced at least three business days prior to the Closing Date (except as otherwise reasonably agreed by the Borrower), required to be paid on the Closing Date from the proceeds of the initial fundings under the Facilities.
8.    If the Backstopped Amendments are not obtained on or prior to the Closing Date, substantially contemporaneously with the initial funding under the New Senior Facilities, all indebtedness under the Existing Credit Agreement shall have been repaid and all commitments, guarantees and security interests under the Existing Credit Agreement shall have been terminated and released.     

D- 2

ANNEX I TO EXHIBIT D

FORM OF SOLVENCY CERTIFICATE
SOLVENCY CERTIFICATE 
of 
[HOLDINGS] 
AND ITS SUBSIDIARIES
Pursuant to the Credit Agreement5, the undersigned hereby certifies, solely in such undersigned’s capacity as [chief financial officer] [specify other officer with equivalent duties] of Holdings, and not individually, as follows:
As of the date hereof, after giving effect to the consummation of the Transactions, including the making of the Loans under the Credit Agreement on the date hereof, and after giving effect to the application of the proceeds of such Loans:
		
	a. 
	The fair value of the assets of Holdings and its Subsidiaries, on a consolidated basis, exceeds, on a consolidated basis, their debts and liabilities, subordinated, contingent or otherwise;

		
	b. 
	The present fair saleable value of the property of Holdings and its Subsidiaries, on a consolidated basis, is greater than the amount that will be required to pay the probable liability, on a consolidated basis, of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured;

		
	c. 
	Holdings and its Subsidiaries, on a consolidated basis, are able to pay their debts and liabilities, subordinated, contingent or otherwise, as such liabilities become absolute and matured; and

		
	d. 
	Holdings and its Subsidiaries, on a consolidated basis, are not engaged in, and are not about to engage in, business for which they have unreasonably small capital.

For purposes of this Certificate, the amount of any contingent liability at any time shall be computed as the amount that would reasonably be expected to become an actual and matured liability. Capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.
The undersigned is familiar with the business and financial position of Holdings and its Subsidiaries. In reaching the conclusions set forth in this Certificate, the undersigned has made such other investigations and inquiries as the undersigned has deemed appropriate, having taken into account the nature of the particular business anticipated to be conducted by Holdings and its Subsidiaries after consummation of the transactions contemplated by the Commitment Letter.
[Signature Page Follows]

5 Credit Agreement to be defined.

CONFIDENTIAL        ANNEX I TO EXHIBIT D

IN WITNESS WHEREOF, the undersigned has executed this Certificate in such 
undersigned’s capacity as [chief financial officer] [specify other officer with equivalent duties] of 
Holdings, on behalf of Holdings, and not individually, as of the date first stated above.

[HOLDINGS]

By ____________________________________
Name: 
Title:

5 Credit Agreement to be defined.

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