Document:

Exhibit 4.10

 

C&J ENERGY SERVICES

 

2015 LONG TERM INCENTIVE PLAN

 

1.                                      Purpose.  The purpose of the Plan is to assist the Company to attract, retain, incentivize and motivate officers and employees of, consultants to, and non-employee directors providing services to, the Company or its Subsidiaries and to promote the success of the Company’s business by providing such participating individuals with a proprietary interest in the performance of the Company.  The Company believes that this incentive program will cause participating officers, employees, consultants and non-employee directors to increase their interest in the welfare of the Company or its Subsidiaries and to align those interests with those of the shareholders of the Company.

 

For purposes of New York Stock Exchange requirements, the Plan is an assumption of the C&J Energy Services, Inc. 2012 Long-Term Incentive Plan (the “2012 Plan”) by the Company with certain non-material revisions made. For the avoidance of doubt, (i) no awards shall be made under the 2012 Plan on or after the Effective Date; (ii) awards previously granted under the 2012 Plan that are outstanding immediately prior to the Effective Time (as defined in the Merger Agreement) shall, in accordance with Section 2.3 of the Merger Agreement and Section 13.1(i) of the 2012 Plan, as of the Effective Time, be converted into, and continue as, outstanding awards under the Plan (the “Converted Awards”); (iii) any awards previously granted under the 2012 Plan (whether or not such awards remain outstanding immediately prior to the Effective Time and specifically including the Converted Awards) shall cause a reduction in the aggregate number of Shares available for issuance under Section 4.1 of the Plan, subject to Section 4.3 of the Plan (provided that, any shares subject to awards previously granted under the 2012 Plan that became available for issuance again under the 2012 Plan pursuant to Section 4.3 of the 2012 Plan shall also be available for issuance under the Plan); and (iv) the number of shares or other amount subject to any awards previously granted to an Eligible Individual under the 2012 Plan during the calendar year in which the Effective Date occurs shall be subtracted from and shall reduce the individual participant limits in Section 4.2 of the Plan applicable to such Eligible Individual with respect to such calendar year.

 

Notwithstanding anything contained herein or any Award Agreement to the contrary, in no event shall the Merger Agreement or any transactions contemplated thereby constitute a Change in Capitalization, a Corporation Transaction or a Change in Control for purposes of this Plan, any Award or any Award Agreement.

 

2.                                      Definitions.  For purposes of the Plan:

 

2.1.                “Affiliate” shall mean, any entity that the Company, either directly or indirectly through one or more intermediaries, is in common control with, is controlled by or controls, each within the meaning of the Securities Act.

 

2.2.                “Award” means, individually or collectively, a grant of an Option, Restricted Share, a Restricted Share Unit, a Share Appreciation Right, a Performance Award, a Dividend Equivalent Right, a Share Award, an Other Share-Based Award, a Substitute Award or any combination of the foregoing.

 

 

2.3.                “Award Agreement” means a written or electronic agreement between the Company and a Participant evidencing the grant of an Award and setting forth the terms and conditions thereof.

 

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

 

2.5.                “Cause” means, with respect to the Termination of a Participant by the Company or any Subsidiary of the Company that employs such individual or to which the Participant performs services (or by the Company on behalf of any such Subsidiary), such Participant’s (i) refusal or neglect to perform substantially his or her employment-related duties or services, (ii) personal dishonesty, incompetence, willful misconduct or breach of fiduciary duty, (iii) indictment for, conviction of or entering a plea of guilty or nolo contendere to a crime constituting a felony or his or her willful violation of any applicable law (other than a traffic violation or other offense or violation outside of the course of employment or services to the Company or its Subsidiaries which does not adversely affect the Company and its Subsidiaries or its reputation or the ability of the Participant to perform his or her employment-related duties or services or to represent the Company or any Subsidiary of the Company that employs such Participant or to which the Participant performs services), (iv) failure to reasonably cooperate, following a request to do so by the Company, in any internal or governmental investigation of the Company or any of its Subsidiaries or (v) material breach of any written covenant or agreement with the Company or any of its Subsidiaries not to disclose any information pertaining to the Company or such Subsidiary or not to compete or interfere with the Company or such Subsidiary; provided that, in the case of any Participant who, as of the date of determination, is party to an effective services, severance or employment agreement with the Company or any Subsidiary, “Cause” shall have the meaning, if any, specified in such agreement.

 

2.6.                “Change in Capitalization” means any increase or reduction in the number of Shares, any change (including, but not limited to, in the case of a spin-off, dividend or other distribution in respect of Shares, a change in value) in the Shares or any exchange of Shares for a different number or kind of shares or other securities of the Company or another corporation, by reason of a reclassification, recapitalization, merger, consolidation, reorganization, spin-off, split-up, issuance of warrants, rights or debentures, share dividend, share split or reverse share split, cash dividend, property dividend, combination or exchange of shares, repurchase of shares, change in corporate structure or any similar corporate event or transaction.

 

2.7.                “Change in Control” means the occurrence of any of the following:

 

(a)                                 An acquisition (other than directly from the Company) of any voting securities of the Company (the “Voting Securities”) by any Person, immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of the combined voting power of the Company’s then-outstanding Voting Securities; provided, however, that in determining whether a Change in Control has occurred pursuant to this Section 2.7(a), the acquisition of Voting Securities in a Non-Control Acquisition (as hereinafter defined) shall not constitute a Change in Control.  A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any corporation or

 

2

 

other Person the majority of the voting power, voting equity securities or equity interest of which is owned, directly or indirectly, by the Company (for purposes of this definition, a “Related Entity”), (ii) the Company or any Related Entity, or (iii) any Person in connection with a Non-Control Transaction (as hereinafter defined);

 

(b)                                 The individuals who are members of the Board immediately following the Effective Time (as defined in the Merger Agreement) (the “Incumbent Board”), cease for any reason to constitute at least two-thirds of the members of the Board; provided, however, that if the election, or nomination for election by the Company’s common shareholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of the Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Proxy Contest;

 

(c)                                  The consummation of:

 

(i)                                     A merger, consolidation or reorganization (x) with or into the Company or (y) in which securities of the Company are issued (a “Merger”), unless such Merger is a Non-Control Transaction.  A “Non-Control Transaction” shall mean a Merger in which:

 

(A)                               the shareholders of the Company immediately before such Merger own directly or indirectly immediately following such Merger at least a majority of the combined voting power of the outstanding voting securities of (1) the corporation resulting from such Merger (the “Surviving Corporation”), if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly, by another Person (a “Parent Corporation”), or (2) if there is one or more than one Parent Corporation, the ultimate Parent Corporation;

 

(B)                               the individuals who were members of the Board immediately prior to the execution of the agreement providing for such Merger constitute at least a majority of the members of the board of directors of (1) the Surviving Corporation, if there is no Parent Corporation, or (2) if there is one or more than one Parent Corporation, the ultimate Parent Corporation; and

 

(C)                               no Person other than (1) the Company or another corporation that is a party to the agreement of Merger, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to the Merger, was maintained by the Company or any Related Entity or (4) any Person who, immediately prior to the Merger, had Beneficial Ownership of Voting Securities representing more than fifty percent (50%) of the combined voting power of the Company’s then-outstanding Voting Securities, has Beneficial Ownership, directly or indirectly, of fifty percent (50%) or more of the combined voting power of the outstanding voting securities of (x) the Surviving

 

3

 

Corporation, if there is no Parent Corporation, or (y) if there is one or more than one Parent Corporation, the ultimate Parent Corporation;

 

(ii)                                  A complete liquidation or dissolution of the Company; or

 

(iii)                               The sale or other disposition of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole to any Person (other than (x) a transfer to a Related Entity or (y) the distribution to the Company’s shareholders of the shares of a Related Entity or any other assets).

 

Notwithstanding the foregoing, (A) a Change in Control shall not be deemed to occur solely because any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of the then outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person; provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company and, after such acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional Voting Securities and such Beneficial Ownership increases the percentage of the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur; and (B) for purposes of an Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules, to the extent the impact of a Change in Control on such Award would subject a Participant to additional taxes under the Nonqualified Deferred Compensation Rules, a Change in Control for purposes of such Award will mean both a Change in Control and a “change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation” within the meaning of the Nonqualified Deferred Compensation Rules.

 

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

 

2.9.                “Committee” means the committee which administers the Plan as provided in Section 3.

 

2.10.         “Company” means Nabors Red Lion Limited, a Bermuda exempted company, which will be renamed C&J Energy Services Ltd. following the consummation of the transactions contemplated by the Merger Agreement.

 

2.11.         “Consultant” means any consultant or advisor who is a natural person and who renders services to the Company or a Subsidiary that (a) are not in connection with the offer and sale of the Company’s securities in a capital raising transaction and (b) do not directly or indirectly promote or maintain a market for the Company’s securities, but who is not an Employee or Director.

 

2.12.         “Corporate Transaction” means (a) a merger, consolidation, reorganization, recapitalization or other similar change in the Company’s common shares or (b) a liquidation or dissolution of the Company.  For the avoidance of doubt, a Corporate Transaction may be a transaction that is also a Change in Control.

 

4

 

2.13.         “Covered Employee” means, for any Performance Cycle:

 

(a)                                 an Employee who

 

(i)                                     as of the beginning of the Performance Cycle is an officer subject to Section 16 of the Exchange Act, and

 

(ii)                                  prior to determining Performance Objectives for the Performance Cycle pursuant to Section 9, the Committee designates as a Covered Employee for purposes of the Plan; provided that, if the Committee does not make the designation in clause (ii) for a Performance Cycle, all Employees described in clause (i) shall be deemed to be Covered Employees for purposes of the Plan, and

 

(b)                                 any other Employee that the Committee designates as a Covered Employee for purposes of the Plan.

 

2.14.         “Director” means a member of the Board.

 

2.15.         “Disability” means permanent and total disability as defined in Code Section 22(e)(3).  A determination of Disability may be made by a physician selected or approved by the Committee and, in this respect, the Participant shall submit to any reasonable examination(s) required by such physician upon request. Notwithstanding the foregoing provisions of this Section 2.15, in the event any Award is considered to be “deferred compensation” as that term is defined under the Nonqualified Deferred Compensation Rules, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of the Nonqualified Deferred Compensation Rules, the definition of “Disability” for purposes of such Award shall be the definition of “disability” provided for under the Nonqualified Deferred Compensation Rules.

 

2.16.         “Division” means any of the operating units or divisions of the Company designated as a Division by the Committee.

 

2.17.         “Dividend Equivalent Right” means a right to receive cash, Shares, other Awards or other property based on the value of dividends that are paid with respect to Shares.

 

2.18.         “Effective Date” means the date immediately prior to the consummation of the transactions contemplated by the Merger Agreement.

 

2.19.         “Eligible Individual” means any Employee, Director or Consultant.

 

2.20.         “Employee” means any individual performing services for the Company or a Subsidiary and designated as an employee of the Company or the Subsidiary on its payroll records.  An Employee shall not include any individual during any period he or she is classified or treated by the Company or Subsidiary as an independent contractor, a consultant or an employee of an employment, consulting or temporary agency or any other entity other than the Company or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified, as a common-law employee of the Company or Subsidiary during such period.  An individual shall not cease to be an Employee

 

5

 

in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or any Subsidiary, or between the Company and any Subsidiaries.

 

2.21.         “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

2.22.         “Fair Market Value” on any date means:

 

(a)                                 if the Shares are listed for trading on the New York Stock Exchange, the closing price at the close of the primary trading session of the Shares on such date on the New York Stock Exchange, or if there has been no such closing price of the Shares on such date, on the next preceding date on which there was such a closing price;

 

(b)                                 if the Shares are not listed for trading on the New York Stock Exchange, but are listed on another national securities exchange, the closing price at the close of the primary trading session of the Shares on such date on such exchange, or if there has been no such closing price of the Shares on such date, on the next preceding date on which there was such a closing price;

 

(c)                                  if the Shares are not listed on the New York Stock Exchange or on another national securities exchange, the last sale price at the end of normal market hours of the Shares on such date as quoted on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) or, if no such price shall have been quoted for such date, on the next preceding date for which such price was so quoted; or

 

(d)                                 if the Shares are not listed for trading on a national securities exchange or are not authorized for quotation on NASDAQ, the fair market value of the Shares as determined in good faith by the Committee taking into account any factors the Committee deems appropriate (including without limitation the Nonqualified Deferred Compensation Rules), and in the case of Incentive Share Options, in accordance with Section 422 of the Code.

 

2.23.         “Incentive Share Option” means an Option satisfying the requirements of Section 422 of the Code and designated by the Committee as an Incentive Share Option.

 

2.24.         “Merger Agreement” means the Agreement and Plan of Merger, dated as of June 25, 2014, by and among Nabors Industries Ltd., Nabors Red Lion Limited and C&J Energy Services, Inc., as amended from time to time.

 

2.25.         “Nonemployee Director” means a Director of the Board who is a “nonemployee director” within the meaning of Rule 16b-3 promulgated under the Exchange Act.

 

2.26.         “Nonqualified Deferred Compensation Rules” means the limitations or requirements of Section 409A and/or 457A of the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.

 

2.27.         “Nonqualified Share Option” means an Option which is not an Incentive Share Option.

 

6

 

2.28.         “Option” means a Nonqualified Share Option or an Incentive Share Option.

 

2.29.         “Option Price” means the price at which a Share may be purchased pursuant to an Option.

 

2.30.         “Other Share-Based Awards” means Other Share-Based Awards granted to an Eligible Individual under Section 10.2.

 

2.31.         “Outside Director” means a Director of the Board who is an “outside director” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder.

 

2.32.         “Parent” means any corporation which is a “parent corporation” (within the meaning of Section 424(e) of the Code) with respect to the Company.

 

2.33.         “Participant” means an Eligible Individual to whom an Award has been granted under the Plan.

 

2.34.         “Performance Awards” means Performance Share Units, Performance Units, Performance-Based Restricted Shares or any combination of the foregoing.

 

2.35.         “Performance-Based Compensation” means any Award that is intended to constitute “performance based compensation” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder.

 

2.36.         “Performance-Based Restricted Shares” means Shares issued or transferred to an Eligible Individual under Section 9.2.

 

2.37.         “Performance Cycle” means the time period specified by the Committee at the time a Performance Award is granted during which the performance of the Company, a Subsidiary or a Division will be measured.

 

2.38.         “Performance Objectives” means the objectives set forth in Section 9.3 for the purpose of determining, either alone or together with other conditions, the degree of payout and/or vesting of Performance Awards.

 

2.39.         “Performance Share Units” means Performance Share Units granted to an Eligible Individual under Section 9.1(b).

 

2.40.         “Performance Units” means Performance Units granted to an Eligible Individual under Section 9.1(a).

 

2.41.         “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) of the Exchange Act.

 

2.42.         “Plan” means this C&J Energy Services 2015 Long Term Incentive Plan, as amended from time to time.

 

7

 

2.43.         “Plan Termination Date” means the date that is ten (10) years after the Effective Date, unless the Plan is earlier terminated by the Board pursuant to Section 15 hereof.

 

2.44.         “Prior Plans” means the C&J Energy Services, Inc. 2006 Stock Option Plan and the C&J Energy Services, Inc. 2010 Stock Option Plan.

 

2.45.         “Restricted Shares” means Shares issued or transferred to an Eligible Individual pursuant to Section 8.1.

 

2.46.         “Restricted Share Units” means rights granted to an Eligible Individual under Section 8.2 representing a number of hypothetical Shares.

 

2.47.         “Securities Act” means the Securities Act of 1933, as amended.

 

2.48.         “Share Award” means an Award of Shares granted pursuant to Section 10.1.

 

2.49.         “Shares” means the common shares, par value $0.01 per share, of the Company and any other securities into which such shares are changed or for which such shares are exchanged.

 

2.50.         “Share Appreciation Right” means a right to receive all or some portion of the increase, if any, in the value of the Shares as provided in Section 6 hereof.

 

2.51.         “Subsidiary” means any corporation which is a subsidiary corporation within the meaning of Section 424(f) of the Code with respect to the Company.

 

2.52.         “Substitute Award” means an Award granted pursuant to Section 10.3 of the Plan.

 

2.53.         “Ten-Percent Shareholder” means an Eligible Individual who, at the time an Incentive Share Option is to be granted to him or her, owns (within the meaning of Section 422(b)(6) of the Code) shares possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Company, a Parent or a Subsidiary.

 

2.54.         “Termination”, “Terminated” or “Terminates” shall mean (a) with respect to a Participant who is an Employee, the date such Participant ceases to be employed by the Company and its Subsidiaries, (b) with respect to a Participant who is a Consultant, the date such Participant ceases to provide services to the Company and its Subsidiaries or (c) with respect to a Participant who is a Director, the date such Participant ceases to be a Director, in each case, for any reason whatsoever (including by reason of death, Disability or adjudicated incompetency).  Unless otherwise set forth in an Award Agreement, (a) if a Participant is both an Employee and a Director and terminates as an Employee but remains as a Director, the Participant will be deemed to have continued in employment without interruption and shall be deemed to have Terminated upon ceasing to be a Director and (b) if a Participant who is an Employee or a Director ceases to provide services in such capacity and becomes a Consultant, the Participant will thereupon be deemed to have been Terminated.

 

8

 

3.                                      Administration.

 

3.1.                Committee; Procedure.  The Plan shall be administered by a Committee which, until the Board appoints a different Committee, shall be the Compensation Committee of the Board.  The Committee may adopt such rules, regulations and guidelines as it deems are necessary or appropriate for the administration of the Plan.  The Committee shall consist of at least two (2) Directors of the Board and may consist of the entire Board; provided, however, that (a) if the Committee consists of less than the entire Board, then, with respect to any Award granted to an Eligible Individual who is subject to Section 16 of the Exchange Act, the Committee shall consist of at least two Directors of the Board, each of whom shall be a Nonemployee Director and (b) to the extent necessary for any Award intended to qualify as Performance-Based Compensation to so qualify, the Committee shall consist of at least two Directors of the Board, each of whom shall be an Outside Director.  For purposes of the preceding sentence, if one or more members of the Committee is not a Nonemployee Director or an Outside Director but recuses himself or herself or abstains from voting with respect to a particular action taken by the Committee, then the Committee, with respect to that action, shall be deemed to consist only of the members of the Committee who have not recused themselves or abstained from voting.

 

3.2.                Board Reservation and Delegation.

 

(a)                                 Except to the extent necessary for any Award intended to qualify as Performance-Based Compensation to so qualify, the Board may, in its discretion, reserve to itself or exercise any or all of the authority and responsibility of the Committee hereunder.  To the extent the Board has reserved to itself or exercises the authority and responsibility of the Committee, all references to the Committee in the Plan shall be to the Board.

 

(b)                                 Subject to applicable law, the Board may delegate, in whole or in part, any of the authority of the Committee hereunder (subject to such limits as may be determined by the Board) to any individual or committee of individuals (who need not be Directors), including without limitation the authority to make Awards to Eligible Individuals who are not officers or directors of the Company or any of its Subsidiaries and who are not subject to Section 16 of the Exchange Act.  To the extent that the Board delegates any such authority to make Awards as provided by this Section 3.2(b), all references in the Plan to the Committee’s authority to make Awards and determinations with respect thereto shall be deemed to include the Board’s delegate.

 

3.3.                Committee Powers.  Subject to the express terms and conditions set forth herein and applicable law, the Committee shall have the power from time to time to:

 

(a)                                 select those Eligible Individuals to whom Options shall be granted under the Plan and the number of such Options to be granted and prescribe the terms and conditions (which need not be identical) of each such Option, including the exercise price per Share, the vesting schedule and the duration of each Option, and make any amendment or modification to any Award Agreement consistent with the terms of the Plan;

 

(b)                                 select those Eligible Individuals to whom other Awards shall be granted under the Plan, determine the type of Award, the number of Shares or amount of cash in respect

 

9

 

of which each Award is granted and the terms and conditions (which need not be identical) of each such Award and make any amendment or modification to any Award Agreement consistent with the terms of the Plan;

 

(c)                                  construe and interpret the Plan and the Awards granted hereunder, establish sub-plans, and establish, amend and revoke rules and regulations for the administration of the Plan, including, but not limited to, correcting any defect, supplying any omission or reconciling any inconsistency in the Plan or in any Award Agreement in the manner and to the extent it shall deem necessary or advisable, including so that the Plan and the operation of the Plan comply with Rule 16b-3 under the Exchange Act, the Code to the extent applicable and other applicable law, and otherwise make the Plan fully effective;

 

(d)                                 determine the duration and purposes for leaves of absence which may be granted to a Participant on an individual basis without constituting a Termination for purposes of the Plan;

 

(e)                                  cancel, with the consent of the Participant, outstanding Awards or as otherwise permitted under the terms of the Plan;

 

(f)                                   exercise its discretion with respect to the powers and rights granted to it as set forth in the Plan; and

 

(g)                                  generally, exercise such powers and perform such acts as are deemed necessary or advisable to promote the best interests of the Company with respect to the Plan.

 

The Committee’s determinations under the Plan need not be uniform and may be made by it selectively among Persons who receive, or are eligible to receive, Awards (whether or not such Persons are similarly situated).  Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements, as to the Eligible Individuals to receive Awards under the Plan and the terms and provision of Awards under the Plan.  All decisions and determinations by the Committee in the exercise of the above powers shall be final, binding and conclusive upon the Company, its Subsidiaries, the Participants and all other persons having any interest therein.

 

3.4.                Indemnification.  No member of the Committee shall be liable for any action, failure to act, determination or interpretation made in good faith with respect to the Plan or any transaction hereunder.  The Company hereby agrees to indemnify each member of the Committee for all costs and expenses and, to the extent permitted by applicable law, any liability incurred in connection with defending against, responding to, negotiating for the settlement of or otherwise dealing with any claim, cause of action or dispute of any kind arising in connection with any actions in administering the Plan or in authorizing or denying authorization to any transaction hereunder.

 

3.5.                No Repricing of Options or Share Appreciation Rights.  The Committee shall have no authority to make any adjustment (other than in connection with a Change in Capitalization, a Corporate Transaction or other transaction where an adjustment is permitted or required under the terms of the Plan) or amendment, and no such adjustment or amendment

 

10

 

shall be made, that reduces or would have the effect of reducing the exercise price of an Option or Share Appreciation Right previously granted under the Plan, whether through amendment, cancellation or replacement grants or other means, unless the Company’s shareholders shall have approved such adjustment or amendment.

 

3.6.                Participants in Non-U.S. Jurisdictions.  Notwithstanding any provision of the Plan to the contrary, to comply with applicable laws in countries other than the United States in which the Company operates or has Employees, Directors or Consultants from time to time, or to ensure that the Company complies with any applicable requirements of foreign securities exchanges, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which of its Subsidiaries shall be covered by the Plan; (ii) determine which Eligible Individuals outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to Eligible Individuals outside the United States to comply with applicable foreign laws or listing requirements of any foreign exchange; (iv) establish sub-plans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such sub-plans and/or modifications shall be attached to the Plan as appendices), provided, however, that no such sub-plans and/or modifications shall increase the share limitations contained in Section 4.1; and (v) take any action, before or after an Award is granted, that it deems advisable to comply with any applicable governmental regulatory exemptions or approval or listing requirements of any such foreign securities exchange.  Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any applicable law.  For purposes of the Plan, all references to foreign laws, rules, regulations or taxes shall be references to the laws, rules, regulations and taxes of any applicable jurisdiction other than the United States or a political subdivision thereof.

 

4.                                      Shares Subject to the Plan; Grant Limitations.

 

4.1.                Aggregate Number of Shares Authorized for Issuance.  Subject to any adjustment as provided in the Plan, the aggregate number of Shares that may be made the subject of Awards granted under the Plan shall not exceed 4,300,000, no more than 2,150,000 of which may be granted as Incentive Share Options.  Shares to be issued under the Plan may be, in whole or in part, authorized but unissued Shares or issued Shares which shall have been reacquired by the Company and held by it as treasury shares. Any Shares related to an award granted under a Prior Plan that terminates by expiration, forfeiture, cancellation or otherwise without the issuance of the Shares shall become available for Awards under this Plan.

 

4.2.                Individual Participant Limit.  The aggregate number of Shares that may be the subject of an Award (other than Awards designated to be paid only in cash or the settlement of which is not based on a number of Shares) granted to an Eligible Individual in any calendar year may not exceed 2,000,000.  The Fair Market Value of an Award, as determined on the date of grant, designated to be paid only in cash, or the settlement of which is not based on a number of Shares, granted to an Eligible Individual in any calendar year may not exceed $5,000,000.

 

11

 

4.3.                Calculating Shares Available.  The Committee shall determine the appropriate method for determining the number of Shares available for grant under the Plan, subject to the following:

 

(a)                                 Except as provided in Section 4.3(b), in connection with the granting of an Option, a Share Appreciation Right (other than a Share Appreciation Right related to an Option), a Share Award, an Other Share-Based Award or a Substitute Award, or the granting of an Award of Restricted Share Units, Restricted Shares, Performance-Based Restricted Shares or Performance Share Units, the number of Shares available under this Section 4 for the granting of further Awards shall be reduced by the number of Shares in respect of which the Award is granted or denominated.

 

(b)                                 In the event that an Award is granted that, pursuant to the terms of the Award Agreement, cannot be settled in Shares, the aggregate number of Shares that may be made the subject of Awards under the Plan shall not be reduced.  Any Shares related to an Award granted under the Plan that (i) terminates by expiration, forfeiture, cancellation or otherwise without the issuance of the Shares, (ii) is settled in cash in lieu of Shares, or (iii) is exchanged with the Committee’s permission, prior to the issuance of Shares, for an Award pursuant to which no Shares may be issued, shall again be available for Awards under the Plan.

 

(c)                                  Any Shares tendered or repurchased (i) to pay the Option Price of an Option granted under the Plan or (ii) to satisfy tax withholding obligations associated with an Award granted under the Plan, shall not become available again for grant under the Plan.

 

5.                                      Options.

 

5.1.                Authority of Committee.  The Committee may grant Options to Eligible Individuals in accordance with the Plan, the terms and conditions of the grant of which shall be set forth in an Award Agreement.  Incentive Share Options may be granted only to Eligible Individuals who are employees of the Company or any of its Subsidiaries on the date the Incentive Share Option is granted.

 

5.2.                Option Price.  The Option Price or the manner in which the exercise price is to be determined for Shares under each Option shall be determined by the Committee and set forth in the Award Agreement; provided, however, that the exercise price per Share under each Option shall not be less than the greater of (i) the par value of a Share and (ii) 100% of the Fair Market Value of a Share on the date the Option is granted (110% in the case of an Incentive Share Option granted to a Ten-Percent Shareholder).

 

5.3.                Maximum Duration.  Options granted hereunder shall be for such term as the Committee shall determine; provided that an Incentive Share Option shall not be exercisable after the expiration of ten (10) years from the date it is granted (five (5) years in the case of an Incentive Share Option granted to a Ten-Percent Shareholder) and a Nonqualified Share Option shall not be exercisable after the expiration of ten (10) years from the date it is granted; provided, further, however, that unless the Committee provides otherwise, an Option (other than an Incentive Share Option) may, upon the death of the Participant prior to the expiration of the Option, be exercised for up to one (1) year following the date of the Participant’s death,

 

12

 

even if such period extends beyond ten (10) years from the date the Option is granted.  The Committee may, subsequent to the granting of any Option, extend the period within which the Option may be exercised (including following a Participant’s Termination), but in no event shall the period be extended to a date that is later than the earlier of the latest date on which the Option could have been exercised and the 10th anniversary of the date of grant of the Option.

 

5.4.                Vesting.  The Committee shall determine and set forth in the applicable Award Agreement the time or times at which an Option shall become vested and exercisable.  To the extent not exercised, vested installments shall accumulate and be exercisable, in whole or in part, at any time after becoming exercisable, but not later than the date the Option expires.  The Committee may accelerate the exercisability of any Option or portion thereof at any time.

 

5.5.                Limitations on Incentive Share Options.  To the extent that the aggregate Fair Market Value (determined as of the date of the grant) of Shares with respect to which Incentive Share Options granted under the Plan and “incentive stock options” (within the meaning of Section 422 of the Code) granted under all other plans of the Company or its Subsidiaries (in either case determined without regard to this Section 5.5) are exercisable by a Participant for the first time during any calendar year exceeds $100,000, such Incentive Share Options shall be treated as Nonqualified Share Options. In applying the limitation in the preceding sentence in the case of multiple Option grants, unless otherwise required by applicable law, Options which were intended to be Incentive Share Options shall be treated as Nonqualified Share Options according to the order in which they were granted such that the most recently granted Options are first treated as Nonqualified Share Options.

 

5.6.                Method of Exercise.  The exercise of an Option shall be made only by giving notice in the form and to the Person designated by the Company, specifying the number of Shares to be exercised and, to the extent applicable, accompanied by payment therefor and otherwise in accordance with the Award Agreement pursuant to which the Option was granted.  The Option Price for any Shares purchased pursuant to the exercise of an Option shall be paid in any or any combination of the following forms: (a) cash or its equivalent (e.g., a check) or (b) if permitted by the Committee, the transfer, either actually or by attestation, to the Company of Shares that have been held by the Participant for at least six (6) months (or such lesser period as may be permitted by the Committee) prior to the exercise of the Option, such transfer to be upon such terms and conditions as determined by the Committee or (c) in the form of other property as determined by the Committee.  Any Shares transferred to the Company as payment of the exercise price under an Option shall be valued at their Fair Market Value on the last business day preceding the date of exercise of such Option.  In addition, (a) the Committee may provide for the payment of the Option Price through Share repurchase, as a result of which a number of Shares issued upon exercise of an Option having a Fair Market Value equal to the Option Price would be repurchased, and (b) Options may be exercised through a registered broker-dealer pursuant to such cashless exercise procedures that are, from time to time, deemed acceptable by the Committee.  If requested by the Committee, the Participant shall deliver the Award Agreement evidencing the Option to the Company, which shall endorse thereon a notation of such exercise and return such Award Agreement to the Participant.  No fractional Shares (or cash in lieu thereof) shall be issued upon exercise of an Option and the number of Shares that may be purchased upon exercise shall be rounded to the nearest number of whole Shares.

 

13

 

5.7.                Rights of Participants.  No Participant shall be deemed for any purpose to be the owner of any Shares subject to any Option unless and until (a) the Option shall have been exercised pursuant to the terms thereof, (b) the Company shall have issued and delivered Shares (whether or not certificated) to the Participant, a securities broker acting on behalf of the Participant or such other nominee of the Participant and (c) the Participant’s name, or the name of his or her broker or other nominee, shall have been entered as a shareholder of record on the books of the Company. Thereupon, the Participant shall have full voting, dividend and other ownership rights with respect to such Shares, subject to such terms and conditions as may be set forth in the applicable Award Agreement.

 

6.                                      Share Appreciation Rights.

 

6.1.                Grant.  The Committee may grant Share Appreciation Rights to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement.  A Share Appreciation Right may be granted (a) at any time if unrelated to an Option or (b) if related to an Option, either at the time of grant or at any time thereafter during the term of the Option.

 

6.2.                Terms; Duration.  Share Appreciation Rights shall contain such terms and conditions as to exercisability, vesting and duration as the Committee shall determine, but in no event shall they have a term of greater than ten (10) years; provided, however, that unless the Committee provides otherwise, a Share Appreciation Right may, upon the death of the Participant prior to the expiration of the Award, be exercised for up to one (1) year following the date of the Participant’s death even if such period extends beyond ten (10) years from the date the Share Appreciation Right is granted.  The Committee may, subsequent to the granting of any Share Appreciation Right, extend the period within which the Share Appreciation Right may be exercised (including following a Participant’s Termination), but in no event shall the period be extended to a date that is later than the earlier of the latest date on which the Share Appreciation Right could have been exercised and the 10th anniversary of the date of grant of the Share Appreciation Right.

 

6.3.                Amount Payable.  Upon exercise of a Share Appreciation Right, the Participant shall be entitled to receive an amount determined by multiplying (i) the excess of the Fair Market Value of a Share on the last business day preceding the date of exercise of such Share Appreciation Right over (a) with respect to a Share Appreciation Right unrelated to an Option, the Fair Market Value of a Share on the date the Share Appreciation Right was granted or (b) with respect to a Share Appreciation Right related to an Option, the Option Price specified in the related Option (in each case, the “Base Price”) by (ii) the number of Shares as to which the Share Appreciation Right is being exercised.  Notwithstanding the foregoing, the Committee may limit in any manner the amount payable with respect to any Share Appreciation Right by including such a limit in the Award Agreement evidencing the Share Appreciation Right at the time it is granted.

 

6.4.                Method of Exercise.  Share Appreciation Rights shall be exercised by a Participant only by giving notice in the form and to the Person designated by the Company, specifying the number of Shares with respect to which the Share Appreciation Right is being exercised.  If requested by the Committee, the Participant shall deliver the Award Agreement

 

14

 

evidencing the Share Appreciation Right being exercised, which shall endorse thereon a notation of such exercise and return such Award Agreement to the Participant.

 

6.5.                Form of Payment.  Payment of the amount payable upon exercise of a Share Appreciation Right may be made in the discretion of the Committee solely in whole Shares in a number determined at their Fair Market Value on the last business day preceding the date of exercise of the Share Appreciation Right, solely in cash or in a combination of cash and Shares.  If the Committee decides to make full payment in Shares and the amount payable results in a fractional Share, payment for the fractional Share will be made in cash.

 

7.                                      Dividend Equivalent Rights.

 

The Committee may grant Dividend Equivalent Rights, either in tandem with an Award or as a separate Award, to Eligible Individuals in accordance with the Plan.  The terms and conditions applicable to each Dividend Equivalent Right shall be specified in the Award Agreement evidencing the Award.  Amounts payable in respect of Dividend Equivalent Rights may be payable currently or, if applicable, deferred until the lapsing of restrictions on such Dividend Equivalent Rights or until the vesting, exercise, payment, settlement or other lapse of restrictions on the Award to which the Dividend Equivalent Rights relate.  In the event that the amount payable in respect of Dividend Equivalent Rights is to be deferred, the Committee shall determine whether such amounts are to be held in cash or reinvested in Shares or deemed (notionally) to be reinvested in Shares.  Dividend Equivalent Rights may be settled in cash, Shares, other Awards, other property or a combination of the foregoing, in a single installment or multiple installments, as determined by the Committee.  The terms and conditions of any grants of Dividend Equivalent Rights as set forth in an Award Agreement shall comply with the Nonqualified Deferred Compensation Rules.

 

8.                                      Restricted Shares; Restricted Share Units.

 

8.1.                Restricted Shares.  The Committee may grant Restricted Shares to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement.  Each Award Agreement shall contain such restrictions, terms and conditions as the Committee may, in its discretion, determine and (without limiting the generality of the foregoing) such Award Agreements may require that an appropriate legend be placed on Share certificates.  Shares in a book entry account in Participant’s name may have appropriate stop transfer instructions to the account custodian, administrator or the Company’s corporate secretary as determined by the Committee in its sole discretion.  Restricted Shares shall be subject to the terms and provisions set forth below in this Section 8.1.

 

(a)                                 Rights of Participant.  Restricted Shares granted pursuant to an Award hereunder shall be issued in the name of the Participant as soon as reasonably practicable after the Award is granted provided that the Participant has executed an Award Agreement evidencing the Award and any other documents which the Committee may require as a condition to the issuance of such Shares.  At the discretion of the Committee, Shares issued in connection with an Award of Restricted Shares may be held in escrow by an agent (which may be the Company) designated by the Committee.  Unless the Committee determines otherwise and as set forth in the Award Agreement, upon the issuance of the Shares, the Participant shall have all of the rights of

 

15

 

a shareholder with respect to such Shares, including the right to vote the Shares and to receive all dividends or other distributions paid or made with respect to the Shares.

 

(b)                                 Terms and Conditions.  Each Award Agreement shall specify the number of Restricted Shares to which it relates, the conditions which must be satisfied in order for the Restricted Shares to vest and the circumstances under which the Award will be forfeited.

 

(c)                                  Delivery of Shares.  Upon the lapse of the restrictions on Restricted Shares, the Committee shall take any action it determines is necessary to evidence such lapse of restrictions which may include causing a share certificate or evidence of book entry Shares to be delivered to the Participant with respect to such Restricted Shares, free of all restrictions hereunder.

 

(d)                                 Treatment of Dividends.  At the time Restricted Shares are granted, the Committee may, in its discretion, determine that the payment to the Participant of dividends, or a specified portion thereof, declared or paid on such Shares by the Company shall be (i) deferred until the lapsing of the restrictions imposed upon such Shares and (ii) held by the Company for the account of the Participant until such time.  In the event that dividends are to be deferred, the Committee shall determine whether such dividends are to be reinvested in Shares (which shall be held as additional Restricted Shares) or held in cash.  Payment of deferred dividends in respect of Restricted Shares (whether held in cash or as additional Restricted Shares), shall be made upon the lapsing of restrictions imposed on the Shares in respect of which the deferred dividends were paid, and any dividends deferred in respect of any Restricted Shares shall be forfeited upon the forfeiture of such Shares.

 

8.2.                Restricted Share Unit Awards.  The Committee may grant Awards of Restricted Share Units to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement.  Each such Award Agreement shall contain such restrictions, terms and conditions as the Committee may, in its discretion, determine.  Awards of Restricted Share Units shall be subject to the terms and provisions set forth below in this Section 8.2.

 

(a)                                 Payment of Awards.  Each Restricted Share Unit shall represent the right of the Participant to receive a payment upon vesting of the Restricted Share Unit or on any later date specified by the Committee of an amount equal to the Fair Market Value of a Share as of the date the Restricted Share Unit becomes vested or such other date as determined by the Committee at the time the Restricted Share Unit is granted.  The Committee may, at the time a Restricted Share Unit is granted, provide a limitation on the amount payable in respect of each Restricted Share Unit.

 

(b)                                 Form of Payment.  The Committee may provide for the settlement of Restricted Share Units in cash or with Shares having a Fair Market Value equal to the amount to which the Participant has become entitled or a combination thereof.

 

9.                                      Performance Awards.

 

9.1.                Performance Units and Performance Share Units.  The Committee may grant Awards of Performance Units and/or Performance Share Units to Eligible Individuals in

 

16

 

accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement.

 

(a)                                 Performance Units.  Performance Units shall be denominated in a specified dollar amount and, contingent upon the attainment of specified Performance Objectives within the Performance Cycle and such other vesting conditions as may be determined by the Committee (including without limitation, a continued employment requirement following the end of the applicable Performance Cycle), represent the right to receive payment as provided in Sections 9.1(c) and (d) of the specified dollar amount or a percentage of the specified dollar amount depending on the level of Performance Objective attained; provided, however, that the Committee may at the time a Performance Unit is granted specify a maximum amount payable in respect of a vested Performance Unit.

 

(b)                                 Performance Share Units.  Performance Share Units shall be denominated in Shares and, contingent upon the attainment of specified Performance Objectives within the Performance Cycle and such other vesting conditions as may be determined by the Committee, (including without limitation, a continued employment requirement following the end of the applicable Performance Cycle), represent the right to receive payment as provided in Sections 9.1(c) and (d) of the Fair Market Value of a Share on the date the Performance Share Unit was granted, the date the Performance Share Unit became vested or any other date specified by the Committee or a percentage of such amount depending on the level of Performance Objective attained; provided, however, that the Committee may at the time a Performance Share Unit is granted specify a maximum amount payable in respect of a vested Performance Share Unit.

 

(c)                                  Terms and Conditions; Vesting and Forfeiture.  Each Award Agreement shall specify the number of Performance Units or Performance Share Units to which it relates, the Performance Objectives and other conditions which must be satisfied in order for the of Performance Units or Performance Share Units to vest and the Performance Cycle within which such Performance Objectives must be satisfied and the circumstances under which the Award will be forfeited; provided, however, that no Performance Cycle for Performance Units or Performance Share Units shall be less than one (1) year.

 

(d)                                 Payment of Awards.  Subject to Section 9.3(c), payment to Participants in respect of vested Performance Share Units and Performance Units shall be made as soon as practicable after the last day of the Performance Cycle to which such Award relates or at such other time or times as the Committee may determine that the Award has become vested.  Such payments may be made entirely in Shares valued at their Fair Market Value, entirely in cash, other Awards, other property or in any combination of the foregoing as the Committee in its discretion shall determine at any time prior to such payment; provided, however, that if the Committee in its discretion determines to make such payment entirely or partially in Restricted Shares, the Committee must determine the extent to which such payment will be in Restricted Shares and the terms of such Restricted Shares at the time the Award is granted.

 

9.2.                Performance-Based Restricted Shares.  The Committee may grant Performance-Based Restricted Shares to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement.  Each Award Agreement may require that an appropriate legend be placed on Share certificates.  Shares in a book entry

 

17

 

account in Participant’s name may have appropriate stop transfer instructions to the account custodian, administrator or the Company’s corporate secretary as determined by the Committee in its sole discretion.  Performance-Based Restricted Shares shall be subject to the following terms and provisions:

 

(a)                                 Rights of Participant.  Performance-Based Restricted Shares shall be issued in the name of the Participant as soon as reasonably practicable after the Award is granted or at such other time or times as the Committee may determine; provided, however, that no Performance-Based Restricted Shares shall be issued until the Participant has executed an Award Agreement evidencing the Award, and any other documents which the Committee may require as a condition to the issuance of such Performance-Based Restricted Shares. At the discretion of the Committee, Shares issued in connection with an Award of Performance-Based Restricted Shares may be held in escrow by an agent (which may be the Company) designated by the Committee.  Unless the Committee determines otherwise and as set forth in the Award Agreement, upon issuance of the Shares, the Participant shall have all of the rights of a shareholder with respect to such Shares, including the right to vote the Shares and to receive all dividends or other distributions paid or made with respect to the Shares.

 

(b)                                 Terms and Conditions.  Each Award Agreement shall specify the number of Performance-Based Restricted Shares to which it relates, the Performance Objectives and other conditions which must be satisfied in order for the Performance-Based Restricted Shares to vest, the Performance Cycle within which such Performance Objectives must be satisfied and the circumstances under which the Award will be forfeited; provided, however, that no Performance Cycle for Performance-Based Restricted Shares shall be less than one (1) year.

 

(c)                                  Treatment of Dividends. At the time Performance-Based Restricted Shares are granted, the Committee may, in its discretion, determine that the payment to the Participant of dividends, or a specified portion thereof, declared or paid on Shares represented by such Award which have been issued by the Company to the Participant shall be (i) deferred until the lapsing of the restrictions imposed upon such Performance-Based Restricted Shares and (ii) held by the Company for the account of the Participant until such time.  In the event that dividends are to be deferred, the Committee shall determine whether such dividends are to be reinvested in Shares (which shall be held as additional Performance-Based Restricted Shares) or held in cash.  If deferred dividends are to be held in cash, there may be credited interest on the amount of the account at such times and at a rate per annum as the Committee, in its discretion, may determine.  Payment of deferred dividends in respect of Performance-Based Restricted Shares (whether held in cash or in additional Performance-Based Restricted Shares), together with interest accrued thereon, if any, shall be made upon the lapsing of restrictions imposed on the Performance-Based Restricted Shares in respect of which the deferred dividends were paid, and any dividends deferred (together with any interest accrued thereon) in respect of any Performance-Based Restricted Shares shall be forfeited upon the forfeiture of such Performance-Based Restricted Shares.

 

(d)                                 Delivery of Shares. Upon the lapse of the restrictions on Performance-Based Restricted Shares awarded hereunder, the Committee shall take any action it determines is necessary to evidence such lapse of restrictions which may include causing a share certificate or

 

18

 

evidence of book entry Shares to be delivered to the Participant with respect to such Performance-Based Restricted Shares, free of all restrictions hereunder.

 

9.3.                Performance Objectives.

 

(a)                                 Establishment.  With respect to any Performance Awards intended to constitute Performance-Based Compensation, Performance Objectives for Performance Awards shall be objective and otherwise meet the requirements of Section 162(m) of the Code and shall be expressed in terms of (1) earnings per share (diluted or basic), (2) operating income, (3) return on equity or assets, (4) cash flow, (5) net cash flow, (6) cash flow from operations; (7) EBITDA, (8) revenues, (9) revenue ratios; (10) cost reductions; (11) cost ratios; (12) overall revenue or sales growth, (13) expense reduction or management, (14) market position or share, (15) total shareholder return, (16) return on investment, (17) earnings before interest and taxes (EBIT), (18) net income, (19) return on net assets, (20) economic value added, (21) shareholder value added, (22) cash flow return on investment, (23) net operating profit, (24) net operating profit after tax, (25) return on capital, (26) return on invested capital, or (27) any combination of the foregoing. With respect to Performance Awards not intended to constitute Performance-Based Compensation, Performance Objectives may be based on any of the foregoing or any other performance criteria as may be established by the Committee.  Performance Objectives may be in respect of the performance of the Company, any of its Subsidiaries, any of its Divisions or any combination thereof.  Performance Objectives may be absolute or relative (to prior performance of the Company or to the performance of one or more other entities or external indices) and may be expressed in terms of a progression within a specified range.  In the case of a Performance Award which is intended to constitute Performance-Based Compensation, the Performance Objectives with respect to a Performance Cycle shall be established in writing by the Committee by the earliest of (i) the date on which the first quarter of the Performance Cycle has elapsed, (ii) the date which is ninety (90) days after the commencement of the Performance Cycle, and (iii) such other date as may be required or permitted under Section 162(m) of the Code, and in any event while the performance relating to the Performance Objectives remain “substantially uncertain.”

 

(b)                                 Effect of Certain Events.  The Committee may, at the time the Performance Objectives in respect of a Performance Award are established, provide for the manner in which performance will be measured against the Performance Objectives to reflect the impact of specified events, including any one or more of the following with respect to the Performance Cycle (i) the gain, loss, income or expense resulting from changes in accounting principles or tax laws that become effective during the Performance Cycle; (ii) the gain, loss, income or expense reported publicly by the Company with respect to the Performance Cycle that are extraordinary or unusual in nature or infrequent in occurrence; (iii) the gains or losses resulting from and the direct expenses incurred in connection with the disposition of a business or the sale of investments or non-core assets; (iv) the gain or loss from all or certain claims and/or litigation and all or certain insurance recoveries relating to claims or litigation; or (v) the impact of investments or acquisitions made during the year or, to the extent provided by the Committee, any prior year. The events may relate to the Company as a whole or to any part of the Company’s business or operations, as determined by the Committee at the time the Performance Objectives are established.  Any adjustments based on the effect of certain events are to be determined in accordance with generally accepted accounting principles and standards,

 

19

 

unless another objective method of measurement is designated by the Committee and, in respect of Performance Awards intended to constitute Performance-Based Compensation, such adjustments shall be permitted only to the extent permitted under Section 162(m) of the Code and the regulations promulgated thereunder without adversely affecting the treatment of any Performance Award as Performance-Based Compensation.

 

(c)                                  Determination of Performance.  Prior to the vesting, payment, settlement or lapsing of any restrictions with respect to any Performance Award, the Committee shall certify in writing that the applicable Performance Objectives have been satisfied to the extent necessary for such Award to qualify as Performance-Based Compensation.  In respect of a Performance Award, the Committee may, in its sole discretion, reduce the amount of cash paid or number of Shares to be issued or that have been issued and that become vested or on which restrictions lapse.  The Committee shall not be entitled to exercise any discretion otherwise authorized hereunder with respect to any Performance Award intended to constitute Performance-Based Compensation if the ability to exercise such discretion or the exercise of such discretion itself would cause the compensation attributable to such Awards to fail to qualify as Performance-Based Compensation.

 

10.                               Share Awards, Other Share-Based Awards and Substitute Awards.

 

10.1.         Share Awards.  The Committee may grant a Share Award to any Eligible Individual on such terms and conditions as the Committee may determine in its sole discretion.  Share Awards may be made as additional compensation for services rendered by the Eligible Individual or may be in lieu of cash or other compensation to which the Eligible Individual is entitled from the Company.

 

10.2.         Other Share-Based Awards.  The Committee is authorized, subject to limitations under applicable law, to grant to Eligible Individuals such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of this Plan, including without limitation convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, purchase rights for Shares, Awards with value and payment contingent upon performance of the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Shares or the value of securities of, or the performance of, specified Subsidiaries of the Company.  The Committee shall determine the terms and conditions of such Other Share-Based Awards.  Shares delivered pursuant to an Award in the nature of a purchase right granted under this Section 10.2 shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Shares, other Awards, or other property, as the Committee shall determine.  Cash awards, as an element of or supplement to any other Award under this Plan, may also be granted pursuant to this Section 10.2.

 

10.3.         Substitute Awards. Awards may be granted under the Plan in substitution for similar awards held by individuals who become Employees, Directors or Consultants as a result of a merger, consolidation, acquisition or other transaction by the Company or an Affiliate of another entity or the assets of another entity. Notwithstanding anything contained in the Plan to the contrary, Substitute Awards that are Options or Share Appreciation Rights

 

20

 

may have exercise prices less than the Fair Market Value of a Share on the date of the substitution if such substitution complies with the Nonqualified Deferred Compensation Rules and other applicable laws and exchange rules.

 

11.          Effect of Termination of Employment; Transferability.

 

11.1.   Termination.  The Award Agreement evidencing the grant of each Award shall set forth the terms and conditions applicable to such Award upon Termination, which shall be as the Committee may, in its discretion, determine at the time the Award is granted or at any time thereafter, and which terms and conditions may include provisions regarding the treatment of an Award in the event of a Termination by reason of a divestiture of any Subsidiary or Division or other assets of the Company or any Subsidiary.

 

11.2.   Transferability of Awards and Shares.

 

(a)           Non-Transferability of Awards.  Except as set forth in Section 11.2(c) or (d) or as otherwise permitted by the Committee and as set forth in the applicable Award Agreement, either at the time of grant or at any time thereafter, no Award shall be (i) sold, transferred or otherwise disposed of, (ii) pledged or otherwise hypothecated or (iii) subject to attachment, execution or levy of any kind; and any purported transfer, pledge, hypothecation, attachment, execution or levy in violation of this Section 11.2 shall be null and void.

 

(b)           Restrictions on Shares.  The Committee may impose such restrictions on any Shares acquired by a Participant under the Plan as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, restrictions under the requirements of any exchange or market upon which such Shares are then listed or traded and restrictions under any blue sky or state securities laws applicable to such Shares.

 

(c)           Transfers By Will or by Laws of Descent or Distribution.  Any Award may be transferred by will or by the laws of descent or distribution; provided, however, that (i) any transferred Award will be subject to all of the same terms and conditions as provided in the Plan and the applicable Award Agreement; and (ii) the Participant’s estate or Beneficiary appointed in accordance with this Section 11.2(c) will remain liable for any withholding tax that may be imposed by any federal, state or local tax authority. Each Participant may, from time to time, name one or more individuals (each, a “Beneficiary”) to whom any benefit under the Plan is to be paid or who may exercise any rights of the Participant under any Award granted under the Plan in the event of the Participant’s death before he or she receives any or all of such benefit or exercises such Award.  Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime.  In the absence of any such designation, benefits under Awards remaining unpaid at the Participant’s death and rights to be exercised following the Participant’s death shall be paid to or exercised by the Participant’s estate.  Notwithstanding anything to the contrary in this Section 11, an Incentive Share Option shall not be transferable other than by will or the laws of descent and distribution.

 

21

 

(d)           Qualified Domestic Relations Orders.  An Award may be transferred pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon delivery to the Company of written notice of such transfer and a certified copy of such order.

 

12.          Adjustment upon Changes in Capitalization.

 

12.1.   In the event of a Change in Capitalization, the Committee shall conclusively determine the appropriate adjustments, if any, to (a) the maximum number and class of Shares or other shares or securities with respect to which Awards may be granted under the Plan, (b) the maximum number and class of Shares or other shares or securities that may be issued upon exercise of Incentive Share Options, (c) the maximum number and class of Shares or other shares or securities with respect to which Awards may be granted to any Eligible Individual in any calendar year, (d) the number and class of Shares or other shares or securities, cash or other property which are subject to outstanding Awards granted under the Plan and the exercise price therefore, if applicable, and (e) the Performance Objectives.

 

12.2.   Any such adjustment in the Shares or other shares or securities (a) subject to outstanding Incentive Share Options (including any adjustments in the exercise price) shall be made in such manner as not to constitute a modification as defined by Section 424(h)(3) of the Code and only to the extent otherwise permitted by Sections 422 and 424 of the Code, (b) subject to outstanding Awards that are intended to qualify as Performance-Based Compensation shall be made in such a manner as not to adversely affect the treatment of the Awards as Performance-Based Compensation and (c) with respect to any Award that is not subject to the Nonqualified Deferred Compensation Rules, in a manner that would not subject the Award to the Nonqualified Deferred Compensation Rules and, with respect to any Award that is subject to the Nonqualified Deferred Compensation Rules, in a manner that complies with the Nonqualified Deferred Compensation Rules.

 

12.3.   If, by reason of a Change in Capitalization, pursuant to an Award, a Participant shall be entitled to, or shall be entitled to exercise an Option with respect to, new, additional or different shares or securities of the Company or any other corporation, such new, additional or different shares shall thereupon be subject to all of the conditions, restrictions and performance criteria which were applicable to the Shares subject to the Award, prior to such Change in Capitalization.

 

13.          Effect of Certain Transactions.

 

13.1.   Except as otherwise provided in the applicable Award Agreement, in connection a Corporate Transaction, either:

 

(a)           outstanding Awards shall, unless otherwise provided in connection with the Corporate Transaction, continue following the Corporate Transaction and shall be adjusted if and as provided for in the agreement or plan (in the case of a liquidation or dissolution) entered into or adopted in connection with the Corporate Transaction (the “Transaction Agreement”), which may include, in the sole discretion of the Committee or the parties to the Corporate Transaction, the assumption or continuation of such Awards by, or the substitution for such

 

22

 

Awards of new awards of, the surviving, successor or resulting entity, or a parent or subsidiary thereof, with such adjustments as to the number and kind of shares or other securities or property subject to such new awards, exercise prices and other terms of such new awards as the Committee or the parties to the Corporate Transaction shall agree, or

 

(b)           outstanding Awards shall terminate upon the consummation of the Corporate Transaction; provided, however, that vested Awards shall not be terminated without:

 

(i)            in the case of vested Options and Share Appreciation Rights (including those Options and Share Appreciation Rights that would become vested upon the consummation of the Corporate Transaction), (1) providing the holders of affected Options and Share Appreciation Rights a period of at least fifteen (15) calendar days prior to the date of the consummation of the Corporate Transaction to exercise the Options and Share Appreciation Rights, or (2) providing the holders of affected Options and Share Appreciation Rights payment (in cash or other consideration upon or immediately following the consummation of the Corporate Transaction, or, to the extent permitted by the Nonqualified Deferred Compensation Rules, on a deferred basis) in respect of each Share covered by the Option or Share Appreciation Rights being cancelled an amount equal to the excess, if any, of the per Share price to be paid or distributed to shareholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in good faith) over the Option Price of the Option or the Base Price of the Share Appreciation Rights, or

 

(ii)           in the case vested Awards other than Options or Share Appreciation Rights (including those Awards that would become vested upon the consummation of the Corporate Transaction), providing the holders of affected Awards payment (in cash or other consideration upon or immediately following the consummation of the Corporate Transaction, or, to the extent permitted by the Nonqualified Deferred Compensation Rules, on a deferred basis) in respect of each Share covered by the Award being cancelled of the per Share price to be paid or distributed to shareholders in the Corporate Transaction, in each case with the value of any non-cash consideration to be determined by the Committee in good faith.

 

(c)           For the avoidance of doubt, if the amount determined pursuant to clause (b)(i)(2) above is zero or less, the affected Option or Share Appreciation Rights may be cancelled without any payment therefor.

 

13.2.   Without limiting the generality of the foregoing or being construed as requiring any such action, in connection with any such Corporate Transaction the Committee may, in its sole and absolute discretion, cause any of the following actions to be taken effective upon or at any time prior to any Corporate Transaction (and any such action may be made contingent upon the occurrence of the Corporate Transaction):

 

(a)           cause any or all unvested Options and Share Appreciation Rights to become fully vested and immediately exercisable (as applicable) and/or provide the holders of such Options and Share Appreciation Rights a reasonable period of time prior to the date of the

 

23

 

consummation of the Corporate Transaction to exercise the Options and Share Appreciation Rights;

 

(b)           with respect to unvested Options and Share Appreciation Rights that are terminated in connection with the Corporate Transaction, provide to the holders thereof a payment (in cash and/or other consideration) in respect of each Share covered by the Option or Share Appreciation Right being terminated in an amount equal to all or a portion of the excess, if any, of the per Share price to be paid or distributed to shareholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in good faith) over the Option Price of the Option or the Base Price of the Share Appreciation Right, which may be paid in accordance with the vesting schedule of the Award as set forth in the applicable Award Agreement, upon the consummation of the Corporate Transaction or, to the extent permitted by the Nonqualified Deferred Compensation Rules, at such other time or times as the Committee may determine;

 

(c)           with respect to unvested Awards (other than Options or Share Appreciation Rights) that are terminated in connection with the Corporate Transaction, provide to the holders thereof a payment (in cash and/or other consideration) in respect of each Share covered by the Award being terminated in an amount equal to all or a portion of the per Share price to be paid or distributed to shareholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in good faith), which may be paid in accordance with the vesting schedule of the Award as set forth in the applicable Award Agreement, upon the consummation of the Corporate Transaction or, to the extent permitted by the Nonqualified Deferred Compensation Rules, at such other time or times as the Committee may determine.

 

13.3.   Notwithstanding anything to the contrary in this Plan,

 

(a)           the Committee may, in its sole discretion, provide in the Transaction Agreement or otherwise for different treatment for different Awards or Awards held by different Participants and, where alternative treatment is available for a Participant’s Awards, may allow the Participant to choose which treatment shall apply to such Participant’s Awards.

 

(b)           any action permitted under this Section 13 may be taken without the need for the consent of any Participant.  To the extent a Corporate Transaction also constitutes a Change in Capitalization and action is taken pursuant to this Section 13 with respect to an outstanding Award, such action shall conclusively determine the treatment of such Award in connection with such Corporate Transaction notwithstanding any provision of the Plan to the contrary (including Section 12).

 

(c)           to the extent the Committee chooses to make payments to affected Participants pursuant to Section 13.1(b)(i)(2) or (b)(ii) or Section 13.2(b) or (c) above, any Participant who has not returned any letter of transmittal, release, escrow, indemnity or similar acknowledgment or agreement that the Committee requires be signed in connection with such payment within the time period established by the Committee for returning any such letter or similar acknowledgement or agreement shall forfeit his or her right to any payment and his or her associated Awards may be cancelled without any payment therefor.

 

24

 

13.4.   Effect of Change in Control.  Any specific terms applicable to an Award in the event of a Change in Control and not otherwise provided in the Plan shall be set forth in the applicable Award Agreement.

 

14.          Interpretation.

 

14.1.   Section 16 Compliance.  The Plan is intended to comply with Rule 16b-3 promulgated under the Exchange Act and the Committee shall interpret and administer the provisions of the Plan or any Award Agreement in a manner consistent therewith.  Any provisions inconsistent with such Rule shall be inoperative and shall not affect the validity of the Plan.

 

14.2.   Compliance with Section 409A and Section 457A.  All Awards granted under the Plan are intended to be exempt from the Nonqualified Deferred Compensation Rules or, if subject to the Nonqualified Deferred Compensation Rules, to be administered, operated and construed in compliance with the Nonqualified Deferred Compensation Rules. Notwithstanding this or any other provision of the Plan to the contrary, the Committee may amend the Plan or any Award granted hereunder in any manner or take any other action that it determines, in its sole discretion, is necessary, appropriate or advisable (including replacing any Award) to cause the Plan or any Award granted hereunder to comply with the Nonqualified Deferred Compensation Rules or to not be subject to the Nonqualified Deferred Compensation Rules.  Any such action, once taken, shall be deemed to be effective from the earliest date necessary to avoid a violation of the Nonqualified Deferred Compensation Rules and shall be final, binding and conclusive on all Eligible Individuals and other individuals having or claiming any right or interest under the Plan. Neither this Section 14.2 nor any other provision of the Plan is or contains a representation as to any Participant regarding the tax consequences of the grant, vesting or sale of any Award (or the Shares underlying such Award) granted hereunder, and should not be interpreted as such. Subject to any other restrictions or limitations contained herein, in the event that a “specified employee” (as defined under the Nonqualified Deferred Compensation Rules) becomes entitled to a payment under an Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules on account of a “separation from service” (as defined under the Nonqualified Deferred Compensation Rules), to the extent required by the Code, such payment shall not occur until the date that is six months plus one day from the date of such separation from service.  Any amount that is otherwise payable within the six-month period described herein will be aggregated and paid in a lump sum without interest.

 

14.3.   Section 162(m).  Unless otherwise determined by the Committee at the time of grant, each Option, Share Appreciation Right and Performance Award granted to an Eligible Individual who is also a Covered Employee is intended to be Performance-Based Compensation.  Unless otherwise determined by the Committee, if any provision of the Plan or any Award Agreement relating to an Award that is intended to be Performance-Based Compensation does not comply or is inconsistent with Section 162(m) of the Code or the regulations promulgated thereunder (including IRS Regulation § 1.162-27), such provision shall be construed or deemed amended to the extent necessary to conform to such requirements, and no provision shall be deemed to confer upon the Committee discretion to

 

25

 

increase the amount of compensation otherwise payable in connection with any such Award upon the attainment of the Performance Objectives.

 

15.          Term; Plan Termination and Amendment of the Plan; Modification of Awards.

 

15.1.   Term.  The Plan shall terminate on the Plan Termination Date and no Award shall be granted after that date.  The applicable terms of the Plan and any terms and conditions applicable to Awards granted prior to the Plan Termination Date shall survive the termination of the Plan and continue to apply to such Awards.

 

15.2.   Plan Amendment or Plan Termination.  Prior to the Plan Termination Date, the Board may earlier terminate the Plan and the Board may at any time and from time to time amend, modify or suspend the Plan; provided, however, that:

 

(a)           no such amendment, modification, suspension or termination shall impair or adversely alter any Awards theretofore granted under the Plan, except with the consent of the Participant, nor shall any amendment, modification, suspension or termination deprive any Participant of any Shares which he or she may have acquired through or as a result of the Plan; and

 

(b)           to the extent necessary under any applicable law, regulation or exchange requirement, no other amendment shall be effective unless approved by the shareholders of the Company in accordance with applicable law, regulation or exchange requirement.

 

For purposes of clarity, any adjustments made to Awards pursuant to Section 12 or 13 shall be deemed not to impair or adversely alter Awards or deprive any Participant of Shares and therefore may be made without the consent of affected Participants.

 

15.3.   Modification of Awards.  No modification of an Award shall adversely alter or impair any rights or obligations under the Award without the consent of the Participant.

 

16.          Non-Exclusivity of the Plan.

 

The adoption of the Plan by the Board shall not be construed as amending, modifying or rescinding any previously approved incentive arrangement or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of options otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases.

 

17.          Limitation of Liability.

 

As illustrative of the limitations of liability of the Company, but not intended to be exhaustive thereof, nothing in the Plan shall be construed to:

 

(a)           give any person any right to be granted an Award other than at the sole discretion of the Committee;

 

26

 

(b)           limit in any way the right of the Company or any of its Subsidiaries to terminate the employment of or the provision of services by any person at any time;

 

(c)           be evidence of any agreement or understanding, express or implied, that the Company will pay any person at any particular rate of compensation or for any particular period of time; or

 

(d)           be evidence of any agreement or understanding, express or implied, that the Company will employ any person at any particular rate of compensation or for any particular period of time.

 

18.          Regulations and Other Approvals; Governing Law.

 

18.1.   Governing Law.  Except as to matters of United States federal law, the Plan and the rights of all persons claiming hereunder shall be construed and determined in accordance with the laws of the State of Delaware without giving effect to conflicts of laws principles thereof.

 

18.2.   Compliance with Law.

 

(a)           The obligation of the Company to sell or deliver Shares with respect to Awards granted under the Plan shall be subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee.

 

(b)           The Board may make such changes to the Plan as may be necessary or appropriate to comply with the rules and regulations of any government authority or to obtain for Eligible Individuals granted Incentive Share Options the tax benefits under the applicable provisions of the Code and regulations promulgated thereunder.

 

(c)           Each grant of an Award and issuance of Shares or other settlement of an Award is subject to compliance with all applicable federal, state and foreign law.  Further, if at any time the Committee determines, in its discretion, that the listing, registration or qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any federal, state or foreign law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the grant of an Award or the issuance of Shares, no Awards shall be or shall be deemed to be granted or payment made or Shares issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions that are not acceptable to the Committee.  Any person exercising an Option or receiving Shares in connection with any other Award shall make such representations and agreements and furnish such information as the Board or Committee may request to assure compliance with the foregoing or any other applicable legal requirements.

 

18.3.   Transfers of Plan Acquired Shares.  Notwithstanding anything contained in the Plan or any Award Agreement to the contrary, in the event that the disposition of Shares acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act and is not otherwise exempt from such registration, such Shares shall be

 

27

 

restricted against transfer to the extent required by the Securities Act and Rule 144 or other regulations promulgated thereunder.  The Committee may require any individual receiving Shares pursuant to an Award granted under the Plan, as a condition precedent to receipt of such Shares, to represent and warrant to the Company in writing that the Shares acquired by such individual are acquired without a view to any distribution thereof and will not be sold or transferred other than pursuant to an effective registration thereof under the Securities Act or pursuant to an exemption applicable under the Securities Act or the rules and regulations promulgated thereunder.  The certificates evidencing any of such Shares shall be appropriately amended or have an appropriate legend placed thereon to reflect their status as restricted securities as aforesaid.

 

19.          Miscellaneous.

 

19.1.   Forfeiture Events and Clawback.  The Committee may specify in an Award Agreement that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events or as required by law, in addition to any otherwise applicable forfeiture provisions that apply to the Award. In addition, the Plan is subject to any written clawback policies the Company, with the approval of the Board, may adopt.  Any such policy may subject a Participant’s Awards and amounts paid or realized with respect to Awards under the Plan to reduction, cancellation, forfeiture or recoupment if certain specified events or wrongful conduct occur, including but not limited to an accounting restatement due to the Company’s material noncompliance with financial reporting regulations or other events or wrongful conduct specified in any such clawback policy adopted to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and rules promulgated thereunder by the Securities and Exchange Commission and that the Company determines should apply to the Plan.

 

19.2.   Multiple Agreements.  The terms of each Award may differ from other Awards granted under the Plan at the same time or at some other time.  The Committee may also grant more than one Award to a given Eligible Individual during the term of the Plan, either in addition to or, subject to Section 3.5, in substitution for one or more Awards previously granted to that Eligible Individual.

 

19.3.   Withholding of Taxes.

 

(a)           The Company or any of its Subsidiaries may withhold from any payment of cash to a Participant or other person under the Plan an amount sufficient to cover any withholding taxes which may become required with respect to such payment or take any other action it deems necessary to satisfy any income or other tax withholding requirements as a result of the grant, exercise or settlement of any Award under the Plan.  The Company or any of its Subsidiaries shall have the right to require the payment of any such taxes and require that any person furnish information deemed necessary by the Company or any of its Subsidiaries to meet any tax reporting obligation as a condition to exercise or before making any payment or the issuance or release of any Shares pursuant to an Award.  The authority provided to the Company and any of its Subsidiaries under this Section 19.3 shall include the authority to, in the discretion of the Committee with respect to any Participant who is subject to Rule 16b-3 (which

 

28

 

Committee, for these purposes, shall be comprised of two or more Nonemployee Directors or the full Board and which such discretion may not be delegated to management), purchase (subject to the requirements of Bermuda law), sell or receive Shares or other property and to make cash payments in respect thereof in satisfaction of a Participant’s tax obligations, either on a mandatory or elective basis; provided, that if such tax obligations are satisfied through the purchase of Shares that were issued to the Participant pursuant to an Award (or through the surrender of Shares by the Participant to the Company), the number of Shares that may be so purchased (or surrendered) shall be limited to the number of Shares that have an aggregate Fair Market Value on the date of purchase equal to the aggregate amount of such tax liabilities determined based on the applicable minimum statutory withholding rates for federal, state, foreign and/or local tax purposes, including payroll taxes, as determined by the Committee. If specified in an Award Agreement at the time of grant or otherwise approved by the Committee, a Participant may, in satisfaction of his or her obligation to pay withholding taxes in connection with the exercise, vesting or other settlement of an Award, elect to (i) make a cash payment to the Company, (ii) permit the purchase (subject to the requirements of Bermuda law) of a portion of the Shares that have become vested or (iii) surrender Shares owned by the Participant prior to the exercise, vesting or other settlement of an Award, in each case having an aggregate Fair Market Value equal to the withholding taxes.

 

(b)           If a Participant makes a disposition, within the meaning of Section 424(c) of the Code and regulations promulgated thereunder, of any Share or Shares issued to such Participant pursuant to the exercise of an Incentive Share Option within the two-year period commencing on the day after the date of the grant or within the one-year period commencing on the day after the date of transfer of such Share or Shares to the Participant pursuant to such exercise, the Participant shall, within ten (10) days of such disposition, notify the Company thereof, by delivery of written notice to the Company at its principal executive office.

 

19.4.   Plan Unfunded.  The Plan shall be unfunded.  Except for reserving a sufficient number of authorized Shares to the extent required by law to meet the requirements of the Plan, the Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure payment of any Award granted under the Plan.

 

19.5.   Replacement Awards.  The equity awards that are being cancelled by Nabors Industries Ltd. (the “Cancelled Awards”) and replaced by the Company (the “Replacement Awards”) pursuant to Section 2.4(a) and (b) of the Merger Agreement shall be granted under the Plan as Substitute Awards, which, for the avoidance of doubt, shall reduce the aggregate number of Shares authorized for issuance under Section 4.1. Notwithstanding anything contained herein to the contrary, each Replacement Award shall (a) be subject to the terms and conditions of the Plan, except to the extent that the Plan and the terms and conditions of the applicable Nabors Equity Plan that governed the Cancelled Award to which the Replacement Award relates conflict, in which case, the provisions of the applicable Nabors Equity Plan shall control solely with respect to the conflict and (b) be subject to a new Award Agreement evidencing the Replacement Award that is intended to provide for the same terms and conditions as were applicable to the Cancelled Award in accordance with Section 2.4(a) and (b) of the Merger Agreement; provided, however, that in the event of a conflict between the terms and conditions of the Award Agreement evidencing the Replacement Award and the award agreement that governed the Cancelled Award, the provisions of the award agreement

 

29

 

that governed the Cancelled Award shall control solely with respect to the conflict. “Nabors Equity Plan” means, as applicable, the Nabors Industries, Inc. 1996 Stock Plan, the Nabors Industries Ltd. Amended and Restated 2003 Employee Stock Plan or the Nabors Industries Ltd. 2013 Stock Plan.

 

19.6.   Fractional Shares.  No fractional Shares shall be issued or delivered pursuant to the Plan or any Award.  The Committee shall determine whether cash, other Awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

 

 

[Remainder of page intentionally left blank]

 

30

 

EXHIBIT A

 

C&J INTERNATIONAL MIDDLE EAST FZCO
 PHANTOM EQUITY ARRANGEMENT

 

UNDER THE C&J ENERGY SERVICES 2015 LONG TERM INCENTIVE PLAN

 

Sponsored by C&J Energy Services

 

I.  INTRODUCTION

 

1.1                               Name and Purpose of the Arrangement.  The name of this arrangement is the C&J International Middle East FZCO Phantom Equity Arrangement, which is a sub-plan of the C&J Energy Services 2015 Long Term Incentive Plan (the “Plan”).  The Parent is establishing this Arrangement on behalf of the Company in order to provide selected employees with the opportunity to receive phantom equity interests of the Company. Benefits provided under this Arrangement are not intended to comprise any portion of a base wage for a Participant, but are instead intended to serve as discretionary incentive awards.

 

1.2                               Status of Arrangement.  The Arrangement is intended to be an unfunded discretionary incentive bonus arrangement.  The Arrangement is not an employee benefit plan within the meaning of section 3(3) of ERISA.

 

1.3                               Interaction with the Plan.  This Arrangement is intended to constitute a sub-plan of the Plan.  If there is any conflict between this Arrangement and the Plan, the Plan will control. Where provisions of this Arrangement and the Plan may be read together without conflict, the terms of this Arrangement will control. Capitalized terms used but not otherwise defined herein shall have the meanings given such terms in the Plan.

 

II.  DEFINITIONS

 

Whenever used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context:

 

2.1                               “Arrangement.”  Arrangement means the C&J International Middle East FZCO Phantom Equity Arrangement, as amended from time to time.

 

2.2                               “Board.”  Board means the Board of Directors of the Parent.

 

2.3                               “C&J B.V.” C&J B.V. means C&J International B.V., the majority shareholder in the Company.

 

2.4                               “Change in Control.”  Change in Control means, (a) with respect to the Parent, a “Change in Control” as defined in the Plan, as may be amended from time to time, or (b) with respect to the Company, the occurrence of one or more of the following events: (i) any “person” or “group” within the meaning of those terms as used in Sections 13(d) and 14(d)(2) of the Exchange Act, other than shareholders of the Company, or any affiliate of the Company, shall

 

A-1

 

become the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or more of the voting power of the voting securities of the Company; (ii) the shareholders of the Company approve, in one transaction or a series of transactions, a plan of complete liquidation of the Company; (iii) the sale or other disposition by the Company of all or substantially all of its assets in one or more transactions to any Person other than an affiliate of the Company; (iv) C&J B.V. ceases to be the majority shareholder in the Company, unless C&J B.V. has conveyed, sold or otherwise transferred its Company interests to the Company, the Parent or any affiliate of C&J B.V., the Company or the Parent; or (v) any other event specified as a “Change of Control” in an applicable Participation Agreement. Notwithstanding the above, a “Change in Control” shall not occur unless that Change in Control also constitutes a “change in the ownership of a corporation,” a “change in the effective control of a corporation,” or a “change in the ownership of a substantial portion of a corporation’s assets,” in each case, within the meaning of the Nonqualified Deferred Compensation Rules.

 

2.5                               “Code.”  Code means the Internal Revenue Code of 1986, as amended from time to time.  Reference to any section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation which amends, supplements or replaces such section or subsection.

 

2.6                               “Company.”  Company means C&J International Middle East FZCO, established as a free zone company (“FZCO”) in the Jebel Ali Free Zone (“JAFZA”) on June 11, 2013.

 

2.7                               “Company Unit.”  Each Company Unit will be one share of the Company.

 

2.8                               “Covered Employee” means an Eligible Person who is likely to be a “covered employee” within the meaning of Section 162(m) of the Code and the regulations thereunder. The foregoing notwithstanding, because the Plan Administrator cannot determine with certainty whether a given Eligible Person will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein shall mean only a Person designated by the Plan Administrator, at the time of grant of a performance-based Phantom Unit, who is likely to be a Covered Employee with respect to that fiscal year.

 

2.9                               “Disability.” Disability means: (a) a physical or mental impairment of sufficient severity that, in the opinion of the Plan Administrator, (i) means the Participant is unable to continue performing the duties assigned to the Participant prior to such impairment or (ii) the Participant’s condition entitles him to disability benefits under any insurance or employee benefit plan of the Company or its Subsidiaries, and (b) the impairment or condition is cited by the Company or its Subsidiary as the reason for the Participant’s termination.

 

2.10                        “Eligible Person.”  Eligible Person means any employee of the Parent, the Company or a Subsidiary of the Parent or the Company, who is designated by the Board or the Plan Administrator to be eligible to participate in the Arrangement.

 

2.11                        “Employment Contract.”  An Employment Contract is any employment agreement, severance or change in control agreement entered into by the Participant and either the Company, the Parent or a Subsidiary of the Company or the Parent, as applicable.

 

2

 

2.12                        “Grant Date.”  Grant Date means the date set forth on the Participation Agreement delivered to a Participant.

 

2.13                        “ERISA.”  ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time.  Reference to any section or subsection of ERISA includes reference to any comparable or succeeding provisions of any legislation which amends, supplements, or replaces such section or subsection.

 

2.14                        “Nonqualified Deferred Compensation Rules” means the limitations or requirements of Section 409A and/or 457A of the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.

 

2.15                        “Parent.”  Parent means Nabors Red Lion Limited, a Bermuda exempted company, which will be renamed C&J Energy Services Ltd. following the consummation of the transactions contemplated by the Merger Agreement.

 

2.16                        “Participant.”  Participant means any individual who participates in the Arrangement in accordance with Article III.

 

2.17                        “Participation Agreement.”  Participation Agreement means the agreement delivered to a Participant informing the Participant of the number of Phantom Units awarded to the Participant and the Grant Date of such Phantom Units, as well as any other terms and conditions that may be applicable to the Phantom Units in addition to those set forth in this Arrangement.

 

2.18                        “Person.”  Person means an individual, a partnership, a limited liability company, a corporation, an association, a joint share company, a trust, a joint venture, an unincorporated organization, and a governmental entity or any department, agency or political subdivision thereof.

 

2.19                        “Phantom Interest Account” or “Account.”   Phantom Interest Account means, for each Participant, the account established for his benefit under Section 4.1(a).

 

2.20                        “Phantom Units.”  A Phantom Unit means a notional Company Unit granted under this Arrangement.

 

2.21                        “Plan Administrator.”  Plan Administrator means the person, persons or entity designated by the Parent to administer the Arrangement.  If no such person or entity is serving as Plan Administrator at any time, the Board shall be the Plan Administrator.

 

2.22                        “Qualified Member” means a member of the Board who is a “nonemployee director” within the meaning of Rule 16b-3(b)(3) and an “outside director” within the meaning of Treasury Regulation 1.162-27 under Section 162(m) of the Code.

 

2.23                        “Separation.”  Separation means the termination of a Participant’s employment with the Parent, the Company or Subsidiaries of the Parent or Company for any or no reason

 

3

 

which also qualifies as a “separation from service” pursuant to the Nonqualified Deferred Compensation Rules.

 

2.24                        “Subsidiary.”  Subsidiary means, with respect to the Parent or the Company, any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by the Company.

 

III.  PARTICIPATION

 

3.1                               Commencement of Participation.  Any Eligible Person who is selected by the Plan Administrator to participate in the Arrangement shall become a Participant on the Grant Date set forth in the Participant’s Participation Agreement.

 

3.2                               Continued Participation.  A Participant in the Arrangement shall continue to be a Participant so long as any amount remains credited to his Account.  Following distribution of a Participant’s Account pursuant to Section 6.2, or forfeiture pursuant to Section 5.3, the Participant’s Account will be extinguished and such individual will no longer be a Participant in the Arrangement.

 

IV.  ACCOUNTS, CONTRIBUTIONS AND DEDUCTIONS

 

4.1                               Per Participant Limitations. In any calendar year in which this Arrangement is in effect, Covered Employees may not be granted Phantom Units that have an aggregate value of more than $5,000,000, as calculated on each applicable Grant Date during that calendar year.

 

4.2                               Phantom Interest Accounts.  The Plan Administrator shall establish a Phantom Interest Account for each Participant, which may include sub-accounts as the Plan Administrator deems necessary in order to properly account for different awards granted under the Arrangement.  The Phantom Interest Account will be a bookkeeping account and will be credited with the number of Phantom Units awarded to a Participant as set forth in the Participant’s Participation Agreements.

 

4.3                               Maintenance of and Allocations to Phantom Interest Accounts.  The Plan Administrator shall maintain the Phantom Interest Accounts as if each Phantom Unit were a Company Unit.  The Board shall have the sole discretion to determine the fair market value of a Company Unit at any time, and the Plan Administrator shall allocate the gains, losses and deductions of the Company to a Participant’s Account as if each Phantom Unit were a Company Unit.  Any action taken or determination made by the Board or the Plan Administrator pursuant to this Section 4.2 will be in the sole discretion of the Board or the Plan Administrator and will be final and conclusive.  Amounts credited to a Participant’s Phantom Interest Account shall not bear interest over time.

 

V.  VESTING AND FORFEITURE

 

5.1                               Vesting.  Phantom Units shall be “unvested” Phantom Units until such units become “vested” Phantom Units pursuant to this Section 5.1 and/or 5.2, as applicable.  Phantom Units shall generally become vested on the first to occur of (i) a Change in Control, or (ii) the five (5) year anniversary of the Grant Date.

 

4

 

5.2                               Additional Performance Vesting.

 

(a)                                 Performance Awards for Covered Employees. In the event that the Plan Administrator determines that a Phantom Unit granted to an Eligible Person who is a Covered Employee should be designed as “performance-based compensation” under Section 162(m) of the Code, the Phantom Unit will be subject to pre-established Performance Objective(s) in addition to the vesting schedule set forth in Section 5.1 above.  Such Performance Objective(s) shall be set forth in the Participant’s Participation Agreement on the Grant Date of the award. Phantom Units granted with such Performance Objectives will be deemed to be a “Performance Unit,” and thus a “Performance Award” under the Plan.

 

(b)                                 Performance Objectives.   Performance Objectives shall be objective and shall otherwise meet the requirements of Section 162(m) of the Code and the regulations thereunder (including Treasury Regulation §1.162-27 and successor regulations thereto), including all requirements for Performance Objectives associated with a Performance Award intended to constitute Performance-Based Compensation in Section 9 of the Plan.

 

(c)                                  Business Criteria.  All business criteria chosen for any Performance Objective shall be taken from the pre-approved list set forth in Section 9.3(a) of the Plan, which may be adjusted in accordance with Section 9.3(b).

 

(d)                                 Performance Cycle.   Achievement of the Performance Objective(s) shall be measured over a Performance Cycle of up to five years, as specified in the Participation Agreement by the Plan Administrator. Performance Objectives shall be established not later than 90 days after the beginning of any Performance Cycle applicable to the Performance Award, or at such other date as may be required or permitted for “performance-based compensation” under section 162(m) of the Code.

 

5.3                               Forfeiture and Accelerated Vesting.

 

(a)                                 Separation Generally.  Unless otherwise set forth in a Participant’s Participation Agreement or an Employment Contract, if a Participant incurs a Separation for any reason other than due to his or her death or Disability prior to the vesting of the Participant’s Phantom Units pursuant to Sections 5.1 and/or 5.2, as applicable, the Participant shall immediately forfeit any and all rights to the Phantom Units credited to the Participant’s Phantom Interest Account, whether vested or unvested.

 

(b)                                 Separation due to Death or Disability.  Unless otherwise set forth in a Participant’s Participation Agreement or an Employment Contract, if a Participant incurs a Separation due to his or her death or Disability prior to the vesting of the Participant’s Phantom Units pursuant to Section 5.1 and/or 5.2, a pro-rata percentage of the Participant’s Phantom Units shall be deemed to be vested on the date of his or her Separation.  For each full calendar year of service the Participant has provided to the Company or its Subsidiaries from the Grant Date to the date of Separation, the Participant will become vested in twenty percent (20%) of his or her Phantom Units.

 

(c)                                  Participants other than Covered Employees with Employment Contracts.  Notwithstanding Sections 5.3(a) and (b), in the event that a Participant other than a Covered

 

5

 

Employee is a party to an active Employment Contract at the time of his or her Separation for any reason, to the extent that the Employment Contract contains provisions relating to the treatment of equity compensation awards in the event of a Separation, such provisions in the Employment Contract will also be deemed to apply, as applicable, to the vesting or forfeiture of the Participant’s Phantom Interest Account upon a Separation.  For the avoidance of doubt, (i) if the Employment Contract is silent regarding the treatment of equity compensation awards upon any particular type of Separation (e.g. terminations of employment for cause, or terminations due to a disability), then Sections 5.3(a) and (b) shall govern the treatment of the Participant’s Phantom Interest Account upon Separation, and (ii) for purposes of determining whether a Change in Control has occurred, the definition in this Arrangement shall control rather than any definition found within the Employment Contract.

 

VI.  DISTRIBUTION OF FUNDS

 

6.1                               Form of Payment.  At the time of distribution as provided in Section 6.2, the Parent shall pay to the Participant a single lump-sum cash payment from the general assets of the Parent.

 

6.2                               Time of Distribution.  No later than sixty (60) days following the applicable vesting date of Phantom Units as set forth in Section 5, any vested amounts credited to the Participant’s Phantom Interest Account attributable to the Phantom Units that became vested upon such vesting date will be distributed to the Participant.

 

6.3                               Calculation of Phantom Interest Accounts.

 

(a)                                 Generally. The amount of the cash payment to be distributed pursuant to the Participant’s Phantom Interest Account will be calculated by the Plan Administrator at the time of the vesting event.  The Plan Administrator will multiply the number of vested Phantom Units that have been credited to the Participant’s Phantom Interest Account by the fair market value of a Company Unit on the date of the vesting event. Any currency conversions shall be calculated at the sole discretion of the Plan Administrator.

 

(b)                                 Performance Awards.  The Plan Administrator must certify in writing, prior to payment of a Participant’s Phantom Interest Account, that all applicable Performance Objectives assigned to any Performance Awards have been properly achieved. The Plan Administrator may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with a vested Performance Award, but may not exercise discretion to increase any such amount payable to a Covered Employee in respect of a Performance Award.

 

(a)                                 Distribution Equivalent Rights.  At the time that the Phantom Interest Account becomes payable pursuant to Section 6.2, the Plan Administrator will have the discretion to determine whether an additional payment will be provided to the Participant that is attributable to distributions that may have been paid with respect to the Company Units underlying some or all of the Phantom Units credited to the Participant’s Phantom Interest Account during the time that such Phantom Units were unvested.  In the event that the Plan Administrator determines that such an additional payment will be provided to the Participant, the

 

6

 

payment will be paid in a lump sum cash payment at the same time that the Participant receives the distribution of his or her Phantom Interest Account pursuant to Section 6.2.

 

6.4                               Taxes.  The Parent, the Company or a Subsidiary may from time to time, in its discretion, require the Participant to pay the amount deemed necessary to satisfy the Parent’s, Company’s or Subsidiary’s current or future obligation to withhold international, federal, state or local income or other taxes that the Participant incurs as a result of a distribution.  With respect to any required tax withholding, the Parent, Company or Subsidiary, as applicable, will withhold from the Participant’s distributions pursuant to the Arrangement the amount necessary to satisfy the obligation to withhold taxes.

 

VII.  ARRANGEMENT ADMINISTRATION

 

7.1                               Arrangement Administration and Interpretation.  The Plan Administrator shall oversee the administration of the Arrangement.  The Plan Administrator shall have complete control and authority to determine the rights and benefits of all claims, demands and actions arising out of the provisions of the Arrangement of any Participant, deceased Participant, or other person having or claiming to have any interest under the Arrangement.  The Plan Administrator shall have complete discretion to interpret the Arrangement and to decide all matters under the Arrangement.  Such interpretation and decision shall be final, conclusive and binding on all Participants and any person claiming under or through any Participant, in the absence of clear and convincing evidence that the Plan Administrator acted arbitrarily and capriciously.  Any individual(s) serving as the Plan Administrator who is also a Participant will not vote or act on any matter pertaining solely to himself.  When making a determination or calculation, the Plan Administrator shall be entitled to rely on information furnished by a Participant, the Parent or the Company. Subject to Section 162(m) of the Code, the Plan Administrator may correct any defect, supply any omission, or reconcile any inconsistency in the Plan or in any Participation Agreement in the manner and to the extent it deems necessary or desirable to carry the Arrangement into effect, and the Plan Administrator shall be the sole and final judge of that necessity or desirability.  If any provision of this Arrangement does not comply or is inconsistent with the requirements of Section 162(m) of the Code or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements.

 

7.2                               Powers, Duties and Procedures, Etc.  The Plan Administrator shall have such powers and duties, may adopt such rules, may act in accordance with such procedures, may appoint such officers or agents, and may delegate such powers and duties, as it shall determine in its sole discretion; provided, however, that the Plan Administrator may not delegate its duties where such delegation would violate state corporate law, or with respect to making awards to, or otherwise with respect to awards granted to, Eligible Persons who are Covered Employees receiving awards that are intended to constitute “performance-based compensation” within the meaning of Section 162(m) of the Code.

 

7.3                               Actions of Qualified Members. At any time that the Plan Administrator is not comprised solely of Qualified Members, any action of the Plan Administrator relating to an award intended by the Plan Administrator to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code and regulations thereunder, may be taken

 

7

 

either (i) by a subcommittee, designated by the Plan Administrator, composed solely of two or more Qualified Members, or (ii) by the Plan Administrator but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; provided, however, that, upon such abstention or recusal, the Plan Administrator remains composed solely of two or more Qualified Members.  Such action, authorized by such a Plan Administrator or by the Plan Administrator upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Plan Administrator for purposes of this Arrangement.

 

7.4                               Company’s Records.  To enable the Plan Administrator to perform its functions, the Parent, the Company and their respective Subsidiaries shall supply full and timely information to the Plan Administrator on all matters relating to a Participants’ employment, death, termination of employment, and such other pertinent facts as the Plan Administrator may require. The Company shall provide the Plan Administrator will all necessary financial or accounting records necessary to properly account for the Phantom Interest Accounts.  Records of the Parent, the Company and their respective Subsidiaries for these purposes shall be conclusive unless determined otherwise by the Plan Administrator.

 

7.5                               Indemnification of Plan Administrator.  The Parent agrees to indemnify and to defend to the fullest extent permitted by law any individuals who serve as Plan Administrator (including any such individual who formerly served as Plan Administrator) against all liabilities, damages, costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims approved by the Parent) occasioned by any act or omission to act in connection with the Plan or this Arrangement, if such act or omission was performed in good faith.

 

VIII.  AMENDMENT AND TERMINATION

 

8.1                               Amendments.  The Parent, upon action of the Board, shall have the right to amend the Arrangement from time to time by an instrument in writing which has been executed on the Parent’s behalf by its duly authorized officer.

 

8.2                               Termination of Arrangement.  This Arrangement is strictly a voluntary undertaking on the part of the Parent and shall not be deemed to constitute a contract between the Parent or the Company and any Eligible Person or consideration for, or an inducement or condition of employment for, the performance of the services by any Eligible Person.  The Parent, upon action of the Board, reserves the right to terminate the Arrangement at any time by an instrument in writing which has been executed on the Parent’s behalf by its duly authorized officer.

 

IX.  MISCELLANEOUS

 

9.1                               No Funding.  The Arrangement constitutes a mere promise by the Parent to make payments in accordance with the terms of the Arrangement and Participants and beneficiaries shall have the status of general unsecured creditors of the Parent.  Nothing in the Arrangement will be construed to give any employee or any other person rights to any specific assets of the Parent or the Company or of any other person.  In all events, it is the intent of the Parent that the Arrangement be treated as unfunded for Code purposes and for purposes of Title I of ERISA.

 

8

 

9.2                               Sections 409A and 457A of the Code.  The amounts payable pursuant to this Arrangement are intended to comply with the short term deferral exceptions under the Nonqualified Deferred Compensation Rules and this Arrangement shall be interpreted accordingly.  Subject to any other restrictions or limitations contained herein, in the event that a “specified employee” (as defined under the Nonqualified Deferred Compensation Rules) becomes entitled to a payment under an award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules on account of a “separation from service” (as defined under the Nonqualified Deferred Compensation Rules), to the extent required by the Code, such payment shall not occur until the date that is six months plus one day from the date of such separation from service.  Any amount that is otherwise payable within the six-month period described herein will be aggregated and paid in a lump sum without interest. For purposes of the Nonqualified Deferred Compensation Rules, each payment or amount due under this Arrangement shall be considered a separate payment.

 

9.3                               Changes in Company Structure.  In the event there is any change in the capital structure of the Company by reason of recapitalization, reclassification, reorganization, merger, consolidation, combination, spin-off or distribution, exchange or other relevant change in capitalization the Phantom Units credited to a Participant’s Account shall be adjusted by the Plan Administrator in good faith to prevent the enlargement or diminution of benefits to Participants under the Arrangement.  The determination of the Plan Administrator as to what adjustments will be made and the extent thereof will be final, binding, and conclusive.

 

9.4                               Claims of General Creditors.  All amounts credited to the Accounts under this Arrangement shall remain a part of the general assets of the Parent.  Accordingly, the amounts credited to the Accounts under this Arrangement are subject to the claims of the Parent’s general creditors.

 

9.5                               Non-Assignability.  None of the benefits, payments, proceeds or claims of any Participant shall be subject to any claim of any creditor of any Participant and, in particular, the same shall not be subject to attachment or garnishment or other legal process by any creditor of such Participant.  No Participant shall have any right to alienate, anticipate, commute, pledge, encumber or assign any of the benefits or payments or proceeds which he may expect to receive, contingently or otherwise, under the Arrangement.  No Participant may borrow against his Accounts.  No Accounts shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, whether voluntary or involuntary.

 

9.6                               Limitation of Participant’s Rights.  Nothing contained in the Arrangement shall (a) confer upon any person a right to be employed or to continue in the employ of the Parent, the Company or any of their respective Subsidiaries, (b) interfere in any way with the right of the Parent, the Company or any of their respective Subsidiaries to terminate the employment of a Participant at any time, with or without prior notice and without regard to the effect such discharge would have on the Participant’s interest in the Arrangement, or (c) confer upon any Participant any of the rights of a partner, limited or otherwise, of the Company or the Parent.

 

9.7                               Participants Bound.  Any action with respect to the Arrangement taken by the Plan Administrator, the Parent, the Company or the Board or any action authorized by or taken at

 

9

 

the direction of the Plan Administrator, the Parent, the Company or the Board shall be conclusive upon all Participants and beneficiaries entitled to benefits under the Arrangement.

 

9.8                               Release.  Any payment to any Participant in accordance with the provisions of the Arrangement shall, to the extent thereof, be in full satisfaction of all claims against the Parent, the Company and the Plan Administrator under the Arrangement, and the Plan Administrator may require such Participant, as a condition precedent to such payment, to execute a release to such effect. If any Participant is determined by the Plan Administrator to be incompetent, by reason of physical or mental disability, to give a valid receipt and release, the Plan Administrator may cause the payment or payments becoming due to such person to be made to another person for his benefit without responsibility on the part of the Plan Administrator, the Company or the Parent to follow the application of such funds.

 

9.9                               Governing Law.  The Arrangement shall be construed, administered, and governed in all respects under and by the laws of the State of Delaware, without regard to its choice of laws provisions, except to the extent Delaware law is preempted by federal law.  If any provision shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective.

 

9.10                        Headings and Subheadings.  Headings and subheadings in this Arrangement are inserted for convenience only and are not to be considered in the construction of the provisions hereof.

 

9.11                        Construction.  Whenever possible, each provision of the Arrangement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Arrangement shall be held to be prohibited by or invalid under applicable law, then (a) such provision shall be deemed amended to, and to have contained from the outset such language as shall be necessary to, accomplish the objectives of the provision and (b) all other provisions of the Arrangement shall remain in full force and effect.

 

9.12                        Successors.  The provisions of the Arrangement shall bind and inure to the benefit of the Parent, the Company and the successors and assigns of the Parent or the Company.  The term “successors” as used herein shall include any corporation or other business entity which shall by merger, consolidation, purchase or otherwise, acquire all or substantially all of the business and assets of the Company or the Parent and successors of any such corporation or other business entity.

 

10EX-10.1

 Exhibit 10.1 

Execution Version 
 $400,000,000

 INTERIM LOAN AGREEMENT 

Dated as of March 23, 2015 

among 

TENET HEALTHCARE CORPORATION, 

as Borrower 
 and

 THE LENDERS PARTY HERETO 

and 

BARCLAYS BANK PLC, 

as Administrative Agent 

* * * 

BARCLAYS BANK PLC 

as Sole Lead Arranger and Sole Bookrunner 

* * * 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 	 	ARTICLE I	  	 	 
			
	 	 	Definitions, Interpretation and Accounting Terms	  	 	 
			
	 Section 1.1
	 	 Defined Terms
	  	 	1	  
	 Section 1.2
	 	 Computation of Time Periods
	  	 	17	  
	 Section 1.3
	 	 Accounting Terms and Principles
	  	 	18	  
	 Section 1.4
	 	 Conversion of Foreign Currencies
	  	 	18	  
	 Section 1.5
	 	 Certain Terms
	  	 	18	  
			
		 	ARTICLE II	  			
			
		 	The Commitments and Credit Extensions	  			
			
	 Section 2.1
	 	 The Loans
	  	 	19	  
	 Section 2.2
	 	 Borrowings of Loans
	  	 	19	  
	 Section 2.3
	 	 [Reserved]
	  	 	20	  
	 Section 2.4
	 	 [Reserved]
	  	 	20	  
	 Section 2.5
	 	 Repayment of Loans
	  	 	20	  
	 Section 2.6
	 	 [Reserved]
	  	 	20	  
	 Section 2.7
	 	 Evidence of Debt
	  	 	20	  
	 Section 2.8
	 	 Optional Prepayments
	  	 	21	  
	 Section 2.9
	 	 Mandatory Prepayments
	  	 	21	  
	 Section 2.10
	 	 Interest
	  	 	22	  
	 Section 2.11
	 	 Conversion/Continuation Option
	  	 	22	  
	 Section 2.12
	 	 Fees
	  	 	23	  
	 Section 2.13
	 	 Payments and Computations
	  	 	23	  
	 Section 2.14
	 	 Special Provisions Governing Eurodollar Rate Loans
	  	 	24	  
	 Section 2.15
	 	 Capital Adequacy
	  	 	25	  
	 Section 2.16
	 	 Taxes
	  	 	26	  
	 Section 2.17
	 	 Substitution of Lenders
	  	 	28	  
			
		 	ARTICLE III	  			
			
		 	Conditions Precedent	  			
			
	 Section 3.1
	 	 Conditions to Effectiveness
	  	 	29	  
	 Section 3.2
	 	 Determinations of Conditions
	  	 	31	  
			
		 	ARTICLE IV	  			
			
		 	Representations and Warranties	  			
			
	 Section 4.1
	 	 Corporate Existence; Compliance with Law
	  	 	31	  
	 Section 4.2
	 	 Corporate Power; Authorization; Enforceable Obligations
	  	 	32	  
	 Section 4.3
	 	 Subsidiaries; Borrower Information
	  	 	33	  
	 Section 4.4
	 	 Financial Statements
	  	 	33	  
	 Section 4.5
	 	 Material Adverse Change
	  	 	33	  

  
 -i- 

 TABLE OF CONTENTS 

(CONTINUED) 
  

							
	 	 	 	  	Page	 
			
	 Section 4.6
	 	 Solvency
	  	 	33	  
	 Section 4.7
	 	 Litigation
	  	 	33	  
	 Section 4.8
	 	 Taxes
	  	 	33	  
	 Section 4.9
	 	 Full Disclosure
	  	 	34	  
	 Section 4.10
	 	 Margin Regulations
	  	 	34	  
	 Section 4.11
	 	 No Burdensome Restrictions; No Defaults
	  	 	34	  
	 Section 4.12
	 	 Investment Company Act
	  	 	35	  
	 Section 4.13
	 	 [Reserved]
	  	 	35	  
	 Section 4.14
	 	 Use of Proceeds
	  	 	35	  
	 Section 4.15
	 	 Insurance
	  	 	35	  
	 Section 4.16
	 	 Labor Matters
	  	 	35	  
	 Section 4.17
	 	 ERISA
	  	 	35	  
	 Section 4.18
	 	 Environmental Matters
	  	 	36	  
	 Section 4.19
	 	 Intellectual Property
	  	 	36	  
	 Section 4.20
	 	 Collateral Documents
	  	 	36	  
	 Section 4.21
	 	 OFAC
	  	 	36	  
			
		 	ARTICLE V	  			
			
		 	Financial Covenant	  			
			
		 	ARTICLE VI	  			
			
		 	Reporting Covenants	  			
			
	 Section 6.1
	 	 Financial Statements
	  	 	37	  
	 Section 6.2
	 	 Default Notices
	  	 	38	  
	 Section 6.3
	 	 Litigation
	  	 	39	  
	 Section 6.4
	 	 [Reserved]
	  	 	39	  
	 Section 6.5
	 	 [Reserved]
	  	 	39	  
	 Section 6.6
	 	 [Reserved]
	  	 	39	  
	 Section 6.7
	 	 ERISA Matters
	  	 	39	  
	 Section 6.8
	 	 Environmental Matters
	  	 	39	  
	 Section 6.9
	 	 [Reserved]
	  	 	39	  
	 Section 6.10
	 	 Tax Reporting
	  	 	39	  
	 Section 6.11
	 	 [Reserved]
	  	 	40	  
	 Section 6.12
	 	 Other Information
	  	 	40	  
			
		 	ARTICLE VII	  			
			
		 	Affirmative Covenants	  			
			
	 Section 7.1
	 	 Preservation of Corporate Existence, Etc.
	  	 	40	  
	 Section 7.2
	 	 Compliance with Laws, Etc.
	  	 	40	  
	 Section 7.3
	 	 Conduct of Business
	  	 	40	  
	 Section 7.4
	 	 Payment of Taxes, Etc.
	  	 	40	  
	 Section 7.5
	 	 Maintenance of Insurance
	  	 	40	  
	 Section 7.6
	 	 Access
	  	 	41	  

  
 -ii- 

 TABLE OF CONTENTS 

(CONTINUED) 
  

							
	 	 	 	  	Page	 
			
	 Section 7.7
	 	 Keeping of Books
	  	 	41	  
	 Section 7.8
	 	 Maintenance of Properties, Etc.
	  	 	41	  
	 Section 7.9
	 	 [Reserved]
	  	 	41	  
	 Section 7.10
	 	 Additional Collateral and Guarantees
	  	 	41	  
			
		 	ARTICLE VIII	  			
			
		 	Negative Covenants	  			
			
	 Section 8.1
	 	 Liens
	  	 	42	  
	 Section 8.2
	 	 Sale and Lease-Back Transactions
	  	 	43	  
	 Section 8.3
	 	 Limitation on Issuance of Guarantees by Subsidiaries
	  	 	43	  
	 Section 8.4
	 	 Sale of Assets
	  	 	44	  
	 Section 8.5
	 	 Fundamental Changes
	  	 	44	  
			
		 	ARTICLE IX	  			
			
		 	Events of Default	  			
			
	 Section 9.1
	 	 Events of Default
	  	 	44	  
	 Section 9.2
	 	 Remedies
	  	 	45	  
	 Section 9.3
	 	 [Reserved]
	  	 	46	  
	 Section 9.4
	 	 Rescission
	  	 	46	  
			
		 	ARTICLE X	  			
			
		 	The Administrative Agent	  			
			
	 Section 10.1
	 	 Authorization and Action
	  	 	46	  
	 Section 10.2
	 	 Administrative Agent’s Reliance, Etc.
	  	 	47	  
	 Section 10.3
	 	 Posting of Approved Electronic Communications
	  	 	48	  
	 Section 10.4
	 	 The Administrative Agent Individually
	  	 	49	  
	 Section 10.5
	 	 Lender Credit Decision
	  	 	49	  
	 Section 10.6
	 	 Indemnification
	  	 	49	  
	 Section 10.7
	 	 Successor Administrative Agent
	  	 	50	  
	 Section 10.8
	 	 Concerning the Collateral and the Collateral Documents
	  	 	50	  
	 Section 10.9
	 	 Withholding Taxes
	  	 	51	  
			
		 	ARTICLE XI	  			
			
		 	Miscellaneous	  			
			
	 Section 11.1
	 	 Amendments, Waivers, Etc.
	  	 	51	  
	 Section 11.2
	 	 Assignments and Participations
	  	 	53	  
	 Section 11.3
	 	 Costs and Expenses
	  	 	56	  
	 Section 11.4
	 	 Indemnities
	  	 	57	  
	 Section 11.5
	 	 Limitation of Liability
	  	 	58	  
	 Section 11.6
	 	 Right of Set-off
	  	 	58	  
	 Section 11.7
	 	 Sharing of Payments, Etc.
	  	 	59	  

  
 -iii- 

 TABLE OF CONTENTS 

(CONTINUED) 
  

							
	 	 	 	  	Page	 
			
	 Section 11.8
	 	 Notices, Etc.
	  	 	59	  
	 Section 11.9
	 	 No Waiver; Remedies
	  	 	61	  
	 Section 11.10
	 	 Binding Effect
	  	 	61	  
	 Section 11.11
	 	 Governing Law
	  	 	61	  
	 Section 11.12
	 	 Submission to Jurisdiction; Service of Process
	  	 	61	  
	 Section 11.13
	 	 Waiver of Jury Trial
	  	 	62	  
	 Section 11.14
	 	 Marshaling; Payments Set Aside
	  	 	62	  
	 Section 11.15
	 	 Section Titles
	  	 	62	  
	 Section 11.16
	 	 Execution in Counterparts
	  	 	63	  
	 Section 11.17
	 	 Entire Agreement
	  	 	63	  
	 Section 11.18
	 	 Confidentiality
	  	 	63	  
	 Section 11.19
	 	 Patriot Act Notice
	  	 	64	  
	 Section 11.20
	 	 No Lender Parties Implied Duties
	  	 	64	  

 SCHEDULES 
  

					
	Schedule I	 	-	    	Commitments
	Schedule II	 	-	    	Applicable Lending Offices and Addresses for Notices
	Schedule 4.2	 	-	    	Consents
	Schedule 4.3(a)	 	-	    	Domestic Hospital Subsidiaries
	Schedule 4.3(b)	 	-	    	Borrower Information
	Schedule 4.8	 	-	    	Taxes
	Schedule 8.1	 	-	    	Existing Liens
	  
 EXHIBITS

 

	Exhibit A	 	-	    	Form of Assignment and Acceptance
	Exhibit B	 	-	    	Form of Committed Loan Notice
	Exhibit C	 	-	    	Form of Guaranty
	Exhibit D-1	 	-	    	Form of U.S. Tax Compliance Certificate
	Exhibit D-2	 	-	    	Form of U.S. Tax Compliance Certificate
	Exhibit D-3	 	-	    	Form of U.S. Tax Compliance Certificate
	Exhibit D-4	 	-	    	Form of U.S. Tax Compliance Certificate
	Exhibit E	 	-	    	Form of Note

  
 -iv- 

 INTERIM LOAN AGREEMENT, dated as of March 23, 2015, among TENET
HEALTHCARE CORPORATION, a Nevada corporation (the “Borrower”), each Person from time to time party hereto as a lender (collectively, the “Lenders” and individually, a
“Lender”) and BARCLAYS BANK PLC (“Barclays”), as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). 

W I T N E S S E T
H: 
 WHEREAS, the Borrower has requested that the Lenders provide a term loan credit facility, and the
Lenders have indicated their willingness to lend on the terms and conditions set forth herein. 
 WHEREAS, the proceeds of
the Loans made on the Loan Funding Date will be used to reduce outstandings under the Existing Credit Agreement (each such term as defined below). 

NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein, the parties
hereto hereby agree as follows: 
 ARTICLE I 

DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS 

 

	 	Section 1.1	Defined Terms 

 As used in this Agreement, the following terms have the following
meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 
 “2014
10-K” means the Borrower’s Report on Form 10-K with respect to the Fiscal Year ended December 31, 2014, filed with the SEC in accordance with the Exchange Act. 

“Additional Secured Debt Designation” means the Additional Secured Debt Designation executed and delivered by the Borrower to
the Collateral Agent on March 23, 2015. 
 “Administrative Agent” has the meaning specified in the preamble to this
Agreement. 
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling or that is
controlled by or is under common control with such Person. For the purposes of this definition, “control” means the possession of the power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise. 
 “Agent Affiliate” has the meaning specified in
Section 10.3(c) (Posting of Approved Electronic Communications). 
 “Agreement” means this Interim Loan
Agreement. 
 “Applicable Lending Office” means, with respect to each Lender, the office of such Lender specified as its
“Lending Office” opposite its name on Schedule II (Applicable Lending Offices and Addresses for Notices) or on the Assignment and Acceptance by which it became a Lender or such other office of such Lender as such Lender may
from time to time specify to the Borrower and the Administrative Agent. 

 “Applicable Margin” means with respect to any Loan of any Type, the interest
rate per annum for such Loan determined in accordance with the following: 
  

									
	 Time Period
	  	Base Rate Loans	 	 	LIBOR Loans	 
	 Effective Date to but excluding July 23, 2015
	  	 	2.50	% 	 	 	3.50	% 
	 July 23, 2015 to but excluding September 23, 2015
	  	 	2.75	% 	 	 	3.75	% 
	 September 23, 2015 to but excluding December 23, 2015
	  	 	3.00	% 	 	 	4.00	% 
	 December 23, 2015 and thereafter
	  	 	3.25	% 	 	 	4.25	% 

 “Approved Electronic Communications” means each notice, demand, communication, information,
document and other material that any Loan Party is obligated to, or otherwise chooses to, provide to the Administrative Agent pursuant to any Loan Document or the transactions contemplated therein, including (a) any supplement to the Guaranty,
any joinder to the Stock Pledge Agreement and any other written Contractual Obligation delivered or required to be delivered in respect of any Loan Document or the transactions contemplated therein and (b) any Financial Statement, financial and
other report, notice, request, certificate and other information material. 
 “Approved Electronic Platform” has the
meaning specified in Section 10.3(a) (Posting of Approved Electronic Communications). 
 “Approved Fund” means
any Fund engaged in investing in commercial loans that is advised or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or Affiliate of an entity that administers or manages a Lender. 

“Arranger” means Barclays Bank PLC in its capacity as sole lead arranger and sole bookrunner. 

“Asset Disposition” means any sale, lease, transfer or other voluntary disposition (or series of related sales, leases,
transfers or dispositions) by the Borrower or any of its Subsidiaries, including any disposition by means of a merger, consolidation or similar transaction (each referred to for the purposes of this definition as a “disposition”),
of (i) any shares of Capital Stock of a Subsidiary of the Borrower (other than directors’ qualifying shares or shares required by applicable law to be held by a Person other than the Borrower or one of its Subsidiaries); (ii) all or
substantially all the assets of any division or line of business of the Borrower or any of its Subsidiaries; or (iii) any other assets of the Borrower or any of its Subsidiaries outside of the ordinary course of business of the Borrower or such
Subsidiary. 
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible
Assignee, and accepted by the Administrative Agent and, to the extent required by Section 11.2 (Assignments and Participations), the Borrower, in substantially the form of Exhibit A (Form of Assignment and Acceptance). 

“Attributable Indebtedness” when used in connection with a Sale and Lease-Back Transaction, means, as of the date of
determination, (i) as to any capitalized lease obligations, the liability related thereto set forth on the consolidated balance sheet of the Borrower and (ii) as to any operating lease, the present value (discounted at the rate per annum
equal to the rate of interest set forth or implicit in the term of the lease, as determined in good faith by the Board of Directors of the Borrower) of the total obligation of the lessee for net rental payments during the remaining term of the lease
(including any period for which an option to extend such lease has been exercised). 

  
 -2- 

 “Barclays” has the meaning specified in the preamble to this Agreement. 

“Base Rate” means, for any period, a fluctuating interest rate per annum as shall be in effect from time to time, which rate
per annum shall be equal at all times to the highest of the following: 
 (a) the rate of interest last quoted by The Wall
Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15
(519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve
Board (as determined by the Administrative Agent); 
 (b) the Federal Funds Rate plus 0.50% per annum; and 

(c) the Eurodollar Rate giving effect to the minimum rate set forth in the definition thereof for a one month Interest Period
commencing on such date (or, if such date is not a Business Day, the preceding Business Day) plus 1.00% per annum. 
 Any change in the
Base Rate due to a change in Barclay’s prime rate, the Federal Funds Rate or the Eurodollar Rate shall become effective on the date of change. 

“Base Rate Loan” means any Loan during any period in which it bears interest at a rate determined by reference to the Base
Rate. 
 “Benefit Plan” means any employee benefit plan as defined in Section 3(3) of ERISA (whether governed by the
laws of the United States or otherwise) to which any Group Member incurs or otherwise has any obligation or liability, contingent or otherwise. 

“Borrower” has the meaning specified in the preamble to this Agreement. 

“Borrowing” means Loans of the same Type made, Converted or continued on the same date and, in the case of Eurodollar Rate
Loans, as to which a single Interest Period is in effect. 
 “Business Day” means a day of the year on which banks are not
required or authorized to close in New York City and, if the applicable Business Day relates to notices, determinations, fundings and payments in connection with the Eurodollar Rate or any Eurodollar Rate Loans, a day on which dealings in Dollar
deposits are also carried on in the London interbank market. 
 “Capital Stock” means: 

(1) in the case of a corporation, corporate stock; 

(2) in the case of an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock; 
 (3) in the case of a partnership or limited liability company,
partnership interests (whether general or limited) or membership interests; and 
 (4) any other interest or participation
that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, 

  
 -3- 

 but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such
debt securities include any right of participation with Capital Stock. 
 “Change in Law” means the occurrence after the
date of this Agreement or, with respect to any Lender, such later date on which such Lender becomes a party to this Agreement of (a) the adoption of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty
or in the interpretation or application thereof by any Governmental Authority or (c) compliance by any Lender (or, for purposes of Section 2.15(b) (Capital Adequacy), by any lending office of such Lender or by such Lender’s
holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided that, notwithstanding anything herein to the
contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by
the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall be deemed to be a
“Change in Law” regardless of the date enacted, adopted or issued. 
 “Change of Control” means the occurrence of
any of the following: (1) the sale, lease or transfer, in one or a series of related transactions, of all or substantially all of the assets of the Borrower and its Subsidiaries, taken as a whole, to any Person; (2) the Borrower becomes
aware (by way of a report or any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) of the acquisition by any Person or group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), in a single
transaction or in a related series of transactions, by way of merger, consolidation or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision) of 40%
or more of the total voting power of the Borrower’s Voting Stock; (3) the Borrower merges, consolidates or amalgamates with or into any other Person or any other Person merges, consolidates or amalgamates with or into the Borrower, in any
such event pursuant to a transaction in which the outstanding Voting Stock of the Borrower is reclassified into or exchanged for cash, securities or other property, other than any such transaction where (A) the outstanding Voting Stock of the
Borrower is reclassified into or exchanged for other Voting Stock of the Borrower or for Voting Stock of the surviving Person, and (B) the holders of the Voting Stock of the Borrower immediately prior to such transaction own, directly or
indirectly, not less than a majority of the Voting Stock of the Borrower or the surviving Person immediately after such transaction as before the transaction or (4) the first day on which a majority of the Board of Directors of the Borrower are
not Continuing Directors. 
 “Code” means the U.S. Internal Revenue Code of 1986, as currently amended. 

“Collateral” means all property and interests in property and proceeds thereof now owned or hereafter acquired by any Loan
Party in or upon which a Lien is granted under any Collateral Document. 
 “Collateral Agent” means The Bank of New York
Mellon Trust Company, N.A. or any successor thereto, acting in its capacity as collateral trustee, pursuant to the Collateral Trust Agreement. 

  
 -4- 

 “Collateral Documents” means the Stock Pledge Agreement (as it relates to this
Agreement), the Collateral Trust Agreement (as it relates to this Agreement) and any other document executed and delivered by a Loan Party granting a Lien on any of its property to secure payment of the Obligations. 

“Collateral Trust Agreement” means the Collateral Trust Agreement, dated as of May 3, 2009, by and among the Borrower,
the other pledgors party thereto, the Collateral Agent and the senior debt representatives from time to time party thereto, as amended, supplemented or otherwise modified prior to the date hereof, and as further supplemented by the Additional Senior
Debt Designation and the Collateral Trust Joinder – Additional Secured Debt. 
 “Collateral Trust Joinder – Additional
Secured Debt” means the Collateral Trust Joinder – Additional Secured Debt, executed and delivered as of the date hereof by The Bank of New York Mellon Trust Company, N.A., as Junior Stock Lien Representative, to the Collateral Agent.

 “Commitments” means, with respect to each Lender, the commitment of such Lender to make a Loan to the Borrower on the
Loan Funding Date pursuant to Section 2.1 (The Loans) in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule I (Commitments) or in the Assignment and Acceptance
pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement. As of the date hereof, the aggregate principal amount of the Commitments is $400,000,000. 

“Committed Loan Notice” means a notice of (a) a Borrowing Loans pursuant to Section 2.2(b), (b) a
Conversion of Loan from one Type to the other, or (c) a continuation of Eurodollar Rate Loans pursuant to Section 2.11(a) (Conversion/Continuation Option) which, if initially given in writing or when confirmed in writing
after telephonic notice has been given, shall be substantially in the form of Exhibit B (Form of Committed Loan Notice). 

“Compliance Certificate” has the meaning specified in Section 6.1(c) (Financial Statements). 

“Consolidated” means, with respect to any Person, the consolidation of accounts of such Person and its Subsidiaries in
accordance with GAAP. 
 “Consolidated Net Income” means, for any period, the consolidated net income (or loss)
attributable to the shareholders of the Borrower and its Consolidated Subsidiaries for such period determined in accordance with GAAP. 

“Consolidated Subsidiaries” means those Subsidiaries that are consolidated with the Borrower for financial reporting
purposes. 
 “Consolidated Total Assets” means, as of any date of determination, after giving pro forma effect to any
acquisition of assets on such date, the sum of the amounts that would appear on the consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as the total assets of the Borrower and its Consolidated Subsidiaries. 

“Constituent Documents” means, with respect to any Person, (a) the articles of incorporation, certificate of
incorporation, constitution or certificate of formation (or the equivalent organizational documents) of such Person, (b) the by-laws or operating agreement (or the equivalent governing documents) of such
Person and (c) any document setting forth the manner of election or duties of the directors or managing members of such Person (if any) and the designation, amount or relative rights, limitations and preferences of any class or series of such
Person’s Capital Stock. 

  
 -5- 

 “Contaminant” means any material, substance or waste that is classified,
regulated or otherwise characterized under any Environmental Law as hazardous, toxic, a contaminant or a pollutant or by other words of similar meaning or regulatory effect, including any petroleum or
petroleum-derived substance or waste, asbestos and polychlorinated biphenyls. 
 “Continuing
Directors” means, as of any date of determination, any member of the Board of Directors of the Borrower who (1) was a member of such Board of Directors on the date of this Agreement or (2) was nominated for election or elected to
such Board of Directors with the approval of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election. 

“Contractual Obligation” of any Person means any obligation, agreement, undertaking or similar provision of any security
issued by such Person or of any agreement, undertaking, contract, lease, indenture, mortgage, deed of trust or other instrument (excluding a Loan Document) to which such Person is a party or by which it or any of its property is bound or to which
any of its property is subject. 
 “Convert,” “Conversion” and “Converted” each refer to
a conversion of Loans of one Type into Loans of the other Type. 
 “Corporate Chart” means a corporate organizational
chart, list or other similar document in each case in form reasonably acceptable to the Administrative Agent and setting forth, for each Person that is a Loan Party, that is subject to Section 7.10 (Additional Collateral and Guarantees)
or that is a Subsidiary of any of them, (a) the full legal name of such Loan Party, (b) the jurisdiction of organization, the organizational number (if any) and the tax identification number (if any) of such Loan Party, (c) the
location of such Loan Party’s chief executive office (or sole place of business) and (d) the percentage of shares outstanding of each class of such Person’s Capital Stock owned (directly or indirectly) by any Loan Party or any
Subsidiary of any of them. 
 “Debt” means, with respect to any specified Person, any debt of such Person in respect of
borrowed money, including Guarantees related thereto. 
 “Default” means any event that, with the passing of time or the
giving of notice or both, would become an Event of Default. 
 “Dollars” and the sign “$” each mean the
lawful money of the United States of America. 
 “Domestic Hospital Subsidiary” means each of the Borrower’s current
and future direct and indirect Subsidiaries organized in a jurisdiction in the United States that (i) owns or operates a hospital or (ii) has a direct or indirect equity ownership interest in a Subsidiary that owns or operates a hospital,
other than, in each of the cases set forth in clauses (i) and (ii), above, any such Subsidiary that is a non-wholly-owned Subsidiary if the Constituent Documents thereof or related joint venture or similar agreements, or
applicable law, would (A) prohibit the pledge of the Capital Stock of such Subsidiary without consent of the equity holders thereof (other than the Borrower or its wholly owned Subsidiaries) or (B) upon the making of such pledge, trigger
in favor of the equity holders thereof (other than the Borrower or its wholly owned Subsidiaries) rights in respect of the Capital Stock of such Subsidiary. 

“Domestic Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Domestic
Lending Office” opposite its name on Schedule II (Applicable Lending Offices and Addresses for Notices) or on the Assignment and Acceptance by which it became a Lender or such other office of such Lender as such Lender may from time to
time specify to the Borrower and the Administrative Agent. 

  
 -6- 

 “Domestic Person” means any “United States person” under and as
defined in Section 7701(a)(30) of the Code. 
 “EBITDA” means, for any period, (a) Consolidated Net Income for
such period plus (b) the sum of, in each case to the extent included in the calculation of such Consolidated Net Income, but without duplication, (i) losses from discontinued operations, (ii) any provision for income taxes,
(iii) any loss from the sale of facilities and long term investments, (iv) any net income attributable to noncontrolling interests, (v) Interest Expense, (vi) losses from extraordinary items or from the early extinguishment of
debt, (vii) impairments of long-lived assets and goodwill and restructuring charges, (viii) depreciation and amortization expenses and (ix) stock based compensation expense minus (c) the sum of, in each case to the extent
included in the calculation of such Consolidated Net Income but without duplication, (i) the cumulative effect (positive or negative, as the case may be) of changes in accounting principle, (ii) income from discontinued operations,
(iii) any net credit for taxes, (iv) any income from the sale of facilities and long term investments, (v) any net loss attributable to noncontrolling interests and (vi) income from extraordinary items or from the early
extinguishment of debt. 
 “Effective Date” has the meaning assigned to such term in Section 3.1 (Conditions to
Effectiveness). 
 “Eligible Assignee” means any Person other than (i) a natural Person (or a holding
company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person) or (ii) the Borrower or any of its Affiliates. 

“Environmental Laws” means all applicable Requirements of Law now or hereafter in effect and as amended or supplemented from
time to time, relating to pollution or the regulation and protection of human or animal health, safety, the environment or natural resources, including the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42
U.S.C. § 9601 et seq.); the Hazardous Material Transportation Act, as amended (49 U.S.C. § 5101 et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act, as amended (7 U.S.C. § 136 et
seq.); the Resource Conservation and Recovery Act, as amended (42 U.S.C. § 6901 et seq.); the Toxic Substance Control Act, as amended (15 U.S.C. § 2601 et seq.); the Clean Air Act, as amended (42 U.S.C.
§ 7401 et seq.); the Federal Water Pollution Control Act, as amended (33 U.S.C. § 1251 et seq.); the Occupational Safety and Health Act, as amended (29 U.S.C. § 651 et seq.); the Safe
Drinking Water Act, as amended (42 U.S.C. § 300f et seq.); and each of their state and local counterparts or equivalents and any transfer of ownership notification or approval statute, including the Industrial Site Recovery Act
(N.J. Stat. Ann. § 13:1K-6 et seq.). 
 “Environmental Liabilities and Costs” means, with respect to any
Group Member, all liabilities, obligations, responsibilities, Remedial Actions, losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all fees, disbursements and expenses of counsel, experts and
consultants and costs of investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim or demand by any other Person, whether based in contract, tort, implied or express warranty, strict
liability, criminal or civil statute and whether arising under any Environmental Law, Permit, order or agreement with any Governmental Authority or other Person, in each case relating to any environmental, health or safety condition or to any
Release or threatened Release and resulting from the past, present or future operations of, or ownership of property by, such Group Member. 

“Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities and Costs. 

“ERISA” means the United States Employee Retirement Income Security Act of 1974. 

  
 -7- 

 “ERISA Affiliate” means, collectively, any Group Member, and any Person under
common control or treated as a single employer with any Group Member, within the meaning of Section 414(b), (c), (m) or (o) of the Code. 

“ERISA Event” means (a) a reportable event described in Section 4043(b) (or, unless the 30-day notice requirement
has been duly waived under the applicable regulations, Section 4043(c) of ERISA) with respect to a Title IV Plan, (b) the withdrawal of any ERISA Affiliate from a Title IV Plan subject to Section 4063 of ERISA during a plan year
in which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA, (c) the complete or partial withdrawal of any ERISA Affiliate from any Multiemployer Plan, (d) with respect to any Multiemployer Plan, the filing of
notice of reorganization, insolvency or termination (or treatment of a plan amendment as termination) under Section 4041A of ERISA, (e) the filing of a notice of intent to terminate a Title IV Plan (or the treatment of a plan
amendment as termination) under Section 4041 of ERISA, (f) the institution of proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC, (g) the failure to make any required contribution to a Title IV Plan
or Multiemployer Plan, (h) the imposition of a lien under Section 412 of the Code or Section 302 or 4068 of ERISA on any property (or rights to property, whether real or personal) of any ERISA Affiliate, (i) the failure of a
Benefit Plan or any trust thereunder to qualify for tax exempt status under Section 401 or 501 of the Code or other Requirement of Law to qualify thereunder or (j) any other event or condition that might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or the imposition of any liability upon any ERISA Affiliate under Title IV
of ERISA other than for PBGC premiums due but not delinquent. 
 “Eurodollar Lending Office” means, with respect to any
Lender, the office of such Lender specified as its “Eurodollar Lending Office” opposite its name on Schedule II (Applicable Lending Offices and Addresses for Notices) or on the Assignment and Acceptance by which it became a Lender
(or, if no such office is specified, its Domestic Lending Office) or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Administrative Agent. 

“Eurodollar Rate” means a fluctuating rate per annum equal to (x) the rate per annum determined by the
Administrative Agent to be the offered rate appearing on the Reuters Screen LIBOR01 Page (or any substitute or successor page or service) for any Interest Period or (y) if the rate in clause (x) above does not appear on such page or
service or if such page or service is not available, the rate per annum determined by the Administrative Agent to be the offered rate on such other page or other service which displays an average London Interbank Offered Rate for deposits for such
Interest Period; provided, however, that in no event shall the Eurodollar Rate for any Interest Period be less than 1.00% per annum. 

“Eurodollar Rate Loan” means any Loan that, for an Interest Period, bears interest at a rate determined by reference to the
Eurodollar Rate. 
 “Event of Default” has the meaning specified in Section 9.1 (Events of Default).

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Excluded Taxes” means (i) any Taxes imposed on or measured by its net income, however denominated, and franchise (and
similar) Taxes imposed on it in lieu of net income Taxes, imposed by a jurisdiction as a result of such recipient being organized in or having its principal office or applicable lending office in such jurisdiction, or as a result of any other
connection between such Lender or agent and such jurisdiction other than any connections arising solely from executing, delivering, being a party to, engaging in any transactions pursuant to, performing its obligations under, receiving payments
under, and/or enforcing, any Loan Document, (ii) any branch profits Taxes imposed by the United States under 

  
 -8- 

 
Section 884(a) of the Code, or any similar Tax, imposed by any jurisdiction described in clause (i) above, (iii) in the case of a Lender (other than an assignee pursuant to
a request by Borrower under Section 2.17 (Substitution of Lenders)), any U.S. federal withholding Tax that is imposed pursuant to any law in effect at the time the Lender becomes a party to this Agreement, or designates a new Applicable
Lending Office, except to the extent such Lender (or its assignor, if any) was entitled, immediately prior to the time of designation of a new Applicable Lending Office (or assignment), to receive additional amounts or indemnification payments from
the Borrower or Guarantor with respect to such withholding Tax pursuant to Section 2.16(Taxes), (iv) any withholding Taxes attributable to the failure of such agent or Lender to deliver the documentation required to be delivered
pursuant to Section 2.16, and (v) any U.S. federal withholding taxes imposed under FATCA. 
 “Existing Credit
Agreement” means the amended and restated credit agreement dated as of October 19, 2010 among the Borrower, the lenders party thereto, Citicorp USA, Inc., as administrative agent and the other parties thereto, including any related
notes, guarantees, collateral documents, instruments and agreements executed in connection therewith (in each case, as amended, restated, modified, supplemented, renewed, replaced or refinanced in whole or in part, from time to time). 

“Existing LC Facility” means the Letter of Credit Facility Agreement dated as of March 7, 2014 among the Borrower, the
LC participants and issuers party thereto and Barclays Bank PLC, as administrative agent (as amended, restated, modified, supplemented, renewed, replaced or refinanced in whole or in part, from time to time). 

“Facility” means the Commitments and the provisions herein related to the Loans. 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version
that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof any agreements entered into pursuant to Section 1471(b) of the Code, of as of the date of
this Agreement (or any amended or successor version described above). 
 “Fee Letter” means the letter agreement dated as
of March 23, 2015 among the Borrower, the Administrative Agent and the Arranger. 
 “Federal Funds Rate” means, for
any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for
such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. 

“Federal Reserve Board” means the Board of Governors of the United States Federal Reserve System, or any successor thereto.

 “Financial Statements” means the financial statements of the Group Members referred to in Section 4.4 (Financial
Statements) or delivered pursuant to Section 6.1 (Financial Statements). 
 “First-Priority Lien
Obligations” shall have the meaning assigned to such term under the Collateral Trust Agreement. 

  
 -9- 

 “Fiscal Quarter” means each of the three month periods ending on March 31,
June 30, September 30 and December 31. 
 “Fiscal Year” means the twelve month period ending on
December 31. 
 “Fund” means any Person (other than a natural Person) that is or will be engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time set
forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements and pronouncements of the Financial Accounting Standards Board, or in such other statements by
such other entity as may be in general use by significant segments of the accounting profession, that are applicable to the circumstances as of the date of determination, subject to Section 1.3 (Accounting Terms and Principles).

 “Governmental Authority” means any nation, sovereign or government, any state or other political subdivision thereof and
any entity or authority exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any central bank or stock exchange. 

“Group Member” means, collectively, the Borrower and its Subsidiaries. 

“Group Members’ Accountants” means Deloitte & Touche LLP or other independent nationally-recognized public
accountants reasonably acceptable to the Administrative Agent. 
 “Guarantee” means a guarantee other than by endorsement
of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of
any Debt. 
 “Guarantor” means each of the Borrower’s current and future direct and indirect Subsidiaries organized in
a jurisdiction in the United States that (i) owns or operates a hospital or (ii) has a direct or indirect equity ownership interest in a Subsidiary that owns or operates a hospital, other than, in each of the cases (i) and (ii), any
such Subsidiary that is a non-wholly-owned Subsidiary if the Constituent Documents thereof or related joint venture or similar agreements, or applicable law, would (A) prohibit the entering into the Guaranty without the consent of the equity
holders thereof (other than the Borrower or its wholly owned Subsidiaries) or (B) upon the entry into the Guaranty, trigger in favor of the equity holders thereof (other than the Borrower or its wholly owned Subsidiaries) rights in respect of
the Capital Stock of such Subsidiary. 
 “Guaranty” means a guaranty, in substantially the form of Exhibit C (Form
of Guaranty), executed by the Guarantors. 
 “Health Care Laws” means all relevant federal and state laws regulating
health services or payment, including, but not limited to, the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the Stark Law (42 U.S.C. § 1395nn), the Anti-Inducement Law (42 U.S.C. § 1320a-7a(a)(5)), the civil
False Claims Act (31 U.S.C. § 3729 et seq.), the administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the exclusion laws (42 U.S.C. § 1320a-7), the civil monetary penalty laws (42 U.S.C. § 1320a-7a), the
administrative simplification provisions of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. §§ 1320d-1320d-8), Medicare (Title XVIII of the Social Security Act), Medicaid (Title

  
 -10- 

 
XIX of the Social Security Act), and any other state or federal law, regulation, guidance document, manual provision, program memorandum, opinion letter, or other issuance which regulates
kickbacks, patient or program charges, recordkeeping, referrals, the hiring of employees or acquisition of services or supplies from those who have been excluded from government health care programs, quality, safety, privacy, security, licensure,
accreditation, or any other aspect of providing health care. 
 “Indemnified Matters” has the meaning specified in
Section 11.4 (Indemnities). 
 “Indemnified Taxes” means (a) any and all Taxes, other than Excluded
Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document, and (b) to the extent not otherwise described in clause (a), Other Taxes. 

“Indemnitee” has the meaning specified in Section 11.4 (Indemnities). 

“Indentures” means, collectively, (i) the Indenture, dated as of November 6, 2001 (as amended and supplemented from
time to time), between the Borrower and The Bank of New York Mellon Trust Company, N.A., as Trustee, and (ii) the Indenture, dated as of September 27, 2013 (as amended and supplemented from time to time), between the Borrower and The Bank
of New York Mellon Trust Company, N.A., as Trustee, in each case with respect to the Borrower’s Secured Notes, as applicable. 

“Interest Expense” means, for any period, the consolidated total interest expense of the Borrower and its Consolidated
Subsidiaries for such period plus interest capitalized during such period in accordance with GAAP. 
 “Interest Period”
means, in the case of any Eurodollar Rate Loan, (a) initially, the period commencing on the date such Eurodollar Rate Loan is made or on the date of conversion of a Base Rate Loan to such Eurodollar Rate Loan and ending one week or one, two,
three or six months thereafter, as selected by the Borrower in its Committed Loan Notice given to the Administrative Agent pursuant to Section 2.2 (Borrowing and Loans) and (b) thereafter, if such Loan is continued, in whole or in
part, as a Eurodollar Rate Loan pursuant to Section 2.11 (Conversion/Continuation Option), a period commencing on the last day of the immediately preceding Interest Period therefor and ending one week or one, two, three or six months
thereafter, as selected by the Borrower in its Committed Loan Notice given to the Administrative Agent pursuant to Section 2.2(Borrowing and Loans); provided, however, that all of the foregoing provisions relating to
Interest Periods in respect of Eurodollar Rate Loans are subject to the following: 
 (i) if any Interest Period would
otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless the result of such extension would be to extend such Interest Period into another calendar month, in which event
such Interest Period shall end on the immediately preceding Business Day; 
 (ii) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; 

(iii) the Borrower may not select any Interest Period that ends after the Maturity Date; and 

(iv) there shall be outstanding at any one time no more than four (4) Interest Periods in the aggregate. 

  
 -11- 

 “IRS” means the Internal Revenue Service of the United States or any successor
thereto. 
 “Junior Stock Lien Representative” means, in the case of any Series of Junior Stock Secured Debt, the trustee,
agent or representative of the holders of such Series of Junior Stock Secured Debt who maintains the transfer register for such Series of Junior Stock Secured Debt and (A) is appointed as a Junior Stock Lien Representative (for purposes related
to the administration of the Stock Lien Security Documents) pursuant to the indenture, credit agreement or other agreement governing such Series of Junior Stock Secured Debt, together with its successors in such capacity and (B) has executed a
Collateral Trust Joinder – Additional Secured Debt. 
 “Junior Stock Secured Debt” shall have the meaning assigned to
such term in the Collateral Trust Agreement. 
 “Land” of any Person means all of those plots, pieces or parcels of land
now owned, leased or hereafter acquired or leased or purported to be owned, leased or hereafter acquired or leased (including, in respect of the Loan Parties, as reflected in the most recent Financial Statements) by such Person. 

“Lender” has the meaning specified in the preamble to this Agreement. 

“Liens” means liens, mortgages, pledges, charges, security interests or other encumbrances. 

“Loan” means any loan made by any Lender pursuant to this Agreement. 

“Loan Commitment Termination Date” means the earlier of (a) 5:00 New York City time on March 25, 2015 and
(b) the Loan Funding Date (immediately after the making of the Loans on such date). 
 “Loan Funding Date” means the
date on which the Loans are made pursuant to Section 2.1 (the Loans). 
 “Loan Documents” means, collectively, this
Agreement, the Notes (if any), the Guaranty, the Collateral Documents and each certificate, agreement or document executed by a Loan Party and delivered to the Administrative Agent or any Lender in connection with or pursuant to any of the
foregoing. 
 “Loan Party” means each of the Borrower and each Guarantor. 

“Material Adverse Change” means a material adverse change in any of (a) the business, operations or condition (financial
or otherwise) of the Borrower and its Subsidiaries taken as a whole, (b) the legality, validity or enforceability of any Loan Document, (c) the perfection or priority of the Liens granted pursuant to the Collateral Documents, (d) the
ability of the Borrower to repay the Obligations or of the other Loan Parties to perform their respective obligations under the Loan Documents or (e) the rights and remedies of the Administrative Agent or the Lenders under the Loan Documents.

 “Material Adverse Effect” means an effect that results in or causes, or could reasonably be expected to result in or
cause, a Material Adverse Change. 
 “Maturity Date” means March 22, 2016. 

  
 -12- 

 “Multiemployer Plan” means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which any ERISA Affiliate has any obligation or liability, contingent or otherwise. 
 “Net
Cash Proceeds” means proceeds received by the Borrower or any of its Subsidiaries after the Effective Date in cash or Cash Equivalents from any Specified Debt Incurrence, net of the transaction fees, costs and expenses paid or payable by
the Borrower and its Subsidiaries in connection therewith. 
 “Non-Consenting Lender” has the meaning specified in
Section 11.1(c) (Amendments, Waivers, Etc.). 
 “Non-U.S. Lender” means each Lender (or the
Administrative Agent) that is a Non-U.S. Person. 
 “Non-U.S. Person” means any Person that is not a Domestic Person. 

“Note” means a promissory note made by the Borrower in favor of a Lender evidencing the Loans made by such Lender,
substantially in the form of Exhibit E (Form of Note), as may be amended, supplemented or modified from time to time. 

“Obligations” means all principal, interest and fees payable with respect to the Loans and all other amounts, obligations,
covenants and duties owing by the Borrower or any Guarantor to the Administrative Agent, any Lender, any Affiliate of any of them or any Indemnitee, of every type and description (whether by reason of an extension of credit, guaranty,
indemnification or otherwise), present or future, arising under this Agreement or any other Loan Document, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter
arising and however acquired and whether or not evidenced by any note, guaranty or other instrument or for the payment of money, including all fees, interest, charges, expenses, attorneys’ fees and disbursements and other sums chargeable to the
Borrower or any Guarantor under this Agreement and any other Loan Document and shall include all interest, fees and other monetary obligations which, but for the filing of a petition in bankruptcy with respect to the Borrower or any Guarantor, would
have accrued on any Obligation, whether or not a claim is allowed against the Borrower or any Guarantor for such interest in the related bankruptcy proceeding. 

“OFAC” has the meaning specified in Section 4.20 (OFAC). 

“Other Secured Debt” has the meaning specified in Section 8.1 (Liens). 

“Other Taxes” has the meaning specified in Section 2.16 (Taxes). 

“Participant” has the meaning specified in Section 11.2(f) (Assignments and Participation). 

“Patriot Act” means the USA Patriot Act of 2001 (31 U.S.C. § 5318 et seq.). 

“PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto. 

“Permit” means any permit, approval, authorization, license, variance, accreditation or permission required from a
Governmental Authority under an applicable Requirement of Law or any accrediting organization. 

  
 -13- 

 “Permitted Credit Agreement Debt” means Debt outstanding under the Existing
Credit Agreement in an aggregate principal amount not to exceed $1,000.0 million. 
 “Permitted Prior Liens” shall have the
meaning assigned to such term under the Collateral Trust Agreement. 
 “Person” means an individual, partnership,
corporation (including a business trust), joint stock company, estate, trust, limited liability company, unincorporated association, joint venture or other entity or a Governmental Authority. 

“Pledge Amendment” has the meaning specified in the definition of “Stock Pledge Agreement”. 

“Pledgors” has the meaning specified in the definition of “Stock Pledge Agreement.” 

“Ratable Portion” or (other than in the expression “equally and ratably”) “ratably” means, with
respect to any Lender, the percentage obtained by dividing (a) the unused Commitment and outstanding Loans of such Lender by (b) the aggregate unused Commitments and outstanding Loans of all Lenders. 

“Refinance” means, in respect of Debt, to refinance, extend, renew, defease, amend, modify, supplement, restructure, replace,
refund or repay or to issue or incur other Debt, in exchange or replacement for, such Debt, in each case in whole or in part. Refinance and Refinancing shall have correlative meanings. 

“Register” has the meaning specified in Section 2.7(b) (Evidence of Obligations). 

“Release” means, with respect to any Person, any release, spill, emission, leaking, pumping, injection, deposit, disposal,
discharge, dispersal, leaching or migration, in each case, of any Contaminant into the indoor or outdoor environment or into or out of any property owned, leased or operated by such Person, including the movement of Contaminants through or in the
air, soil, surface water, ground water or property. 
 “Remedial Action” means all actions required to (a) clean up,
remove, treat or in any other way address any Contaminant in the indoor or outdoor environment, (b) prevent the Release or threat of Release or minimize the further Release so that a Contaminant does not migrate or endanger or threaten to
endanger public health or welfare or the indoor or outdoor environment or (c) perform pre-remedial studies and investigations and post-remedial monitoring and care.

 “Requirement of Law” means, with respect to any Person, the common law and all federal, state, local and foreign laws,
treaties, rules and regulations, orders, judgments, decrees and other determinations of, concessions, grants, franchises, licenses and other Contractual Obligations with, any Governmental Authority or arbitrator, applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is subject. 
 “Requisite Lenders” means, as
of any date of determination, Lenders holding more than 50% of the sum of the (a) total outstanding Loans and (b) aggregate unused Commitments. 

“Responsible Officer” means, with respect to any Person, any of the principal executive officers, managing members or general
partners of such Person but, in any event, with respect to financial matters, the chief financial officer, treasurer or controller of such Person. 

  
 -14- 

 “Sale and Lease-Back Transaction” means any arrangement with any Person (other
than the Borrower or a Subsidiary), or to which any such Person is a party, providing for the leasing to the Borrower or a Subsidiary for a period of more than three years of any hospital that has been or is to be sold or transferred by the Borrower
or such Subsidiary to such Person or to any other Person (other than the Borrower or a Subsidiary), to which the funds have been or are to be advanced by such Person on the security of the leased property. 

“SEC” means the Securities and Exchange Commission. 

“Secured Debt” means Debt secured by a Lien upon the property or assets of the Borrower or any of its direct or indirect
Subsidiaries. 
 “Secured Debt Ratio” means, as of any date of determination, the ratio of (a) Secured Debt to
(b) the aggregate amount of EBITDA for the most recent four consecutive fiscal quarters ending prior to such determination date. In the event that the Borrower or any of its Subsidiaries issues, incurs, creates, assumes, guarantees, redeems,
retires or extinguishes any Secured Debt (other than Secured Debt incurred under any revolving credit facility unless such Secured Debt has been permanently repaid and has not been replaced) subsequent to the commencement of the period for which the
Secured Debt Ratio is being calculated but prior to or simultaneously with the event for which the calculation of the Secured Debt Ratio is made (for purposes of this definition, the “Calculation Date”), then the Secured Debt Ratio
shall be calculated giving pro forma effect to such issuance, incurrence, creation, assumption, guarantee, redemption, retirement or extinguishment of Secured Debt, as if the same had occurred at the beginning of the applicable four-quarter period.
For purposes of making the computation referred to above, acquisitions, dispositions, mergers, consolidations and disposed operations (as determined in accordance with GAAP) that have been made by the Borrower or any of its Subsidiaries during the
four-quarter reference period or subsequent to such reference period and on or prior to or simultaneously with the Calculation Date shall be calculated on a pro forma basis assuming that all such acquisitions, dispositions, mergers, consolidations
and disposed operations (and the change in any associated Secured Debt obligations and the change in EBITDA resulting therefrom) had occurred on the first day of the four-quarter reference period. If, since the beginning of such period, any Person
that subsequently became a Subsidiary or was merged with or into the Borrower or any of its Subsidiaries since the beginning of such period shall have made any acquisition, disposition, merger, consolidation or disposed operation that would have
required adjustment pursuant to this definition, then the Secured Debt Ratio shall be calculated giving pro forma effect thereto for such period as if such acquisition, disposition, merger, consolidation or disposed operation had occurred at the
beginning of the applicable four-quarter period. 
 For purposes of this definition, whenever pro forma effect is to be given to a
transaction, the pro forma calculations shall be made in accordance with Regulation S-X under the Securities Act of 1933, as amended, as determined in good faith by a responsible financial or accounting officer of the Borrower. For purposes of
making the computation referred to above, any Secured Debt under a revolving credit facility computed on a pro forma basis shall be computed based upon the amount of such Secured Debt outstanding on the Calculation Date. 

“Secured Notes” means each of the Borrower’s (i) 6.25% Senior Secured Notes due 2018, (ii) 4.75% Senior
Secured Notes due 2020, (iii) 6.00% Senior Secured Notes due 2020, (iv) 4.50% Senior Secured Notes due 2021 and (v) 4.375% Senior Secured Notes due 2021. 

“Secured Parties” means the Lenders, the Administrative Agent and any other holder of any Obligation. 

“Selling Lender” has the meaning specified in Section 11.7 (Sharing of Payments, Etc.). 

  
 -15- 

 “Series of Junior Stock Secured Debt” has the meaning specified in the
Collateral Trust Agreement. 
 “Solvent” means, with respect to any Person as of any date of determination, that, as of
such date, (a) the value of the assets of such Person (both at fair value and present fair saleable value) is greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person, (b) such Person
is able to pay all liabilities of such Person as such liabilities mature and (c) such Person does not have unreasonably small capital. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be
computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 

“Special Purpose Vehicle” means any special purpose funding vehicle identified as such in writing by any Lender to the
Administrative Agent. 
 “Specified Acquisition” means the series of transactions consummated pursuant to (i) the
Contribution and Purchase Agreement, dated as of the date hereof, by the Borrower, USPI Group Holdings, Inc., a Delaware corporation, Ulysses JV Holding I LLC, a Delaware limited liability corporation, Ulysses JV Holding II LLC, a Delaware limited
liability corporation, and BB Blue Holdings, Inc., a Delaware corporation, following which the Borrower will own 50.1% of the fully diluted equity interests of BB Blue Holdings, Inc. and (ii) the Share Purchase Agreement, dated as of the date
hereof, by Tenet HealthSystem Medical, Inc., a Delaware corporation (“HealthSystem”) and a subsidiary of the Borrower, WCAS X Aspen UK LP and the other sellers party thereto, following which HealthSystem Medical, Inc. will own 100%
of the issued A shares, B1 shares and B2 shares in the capital of European Surgical Partners Ltd, a company incorporated in England. 

“Specified Acquisition Debt” means any interim loan financing incurred to finance, in whole or in part, the Specified
Acquisition. 
 “Specified Debt Incurrence” means any incurrence of Debt by Group Member in the form of term loans or debt
securities other than (i) Debt owing to the Borrower or any Subsidiary, (ii) any Specified Acquisition Debt or (iii) other Debt not included in clauses (i) and (ii) above in an aggregate principal amount not to exceed
$50,000,000. 
 “Stock Lien Security Documents” has the meaning specified in the Collateral Trust Agreement.

 “Stock Pledge Agreement” means, the Stock Pledge Agreement, dated as of March 3, 2009, by and among the Borrower,
the other pledgors party thereto from time to time (together with the Borrower, the “Pledgors”) and The Bank of New York Mellon Trust Company, N.A., as amended, supplemented or otherwise modified prior to the date hereof, and as further
amended by the Fourth Amendment to Stock Pledge Agreement, dated as of March 23, 2015 (the “Pledge Amendment”), by and among the Borrower, the Pledgors and The Bank of New York Mellon Trust Company, N.A. 

“Subsidiary” means, with respect to any Person, (i) any corporation, limited liability company, association or other
business entity of which more than 50% of the outstanding voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, managing members or trustees thereof is
at the time owned or controlled, directly or indirectly, by such Person or one or more other Subsidiaries of that Person (or a combination thereof) and (ii) any partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general partners of which are such Person or one or more Subsidiaries of such Person (or any combination thereof). 

  
 -16- 

 “Substitute Institution” has the meaning specified in Section 2.17
(Substitution of Lenders). 
 “Substitution Notice” has the meaning specified in Section 2.17 (Substitution of
Lenders). 
 “Tax Affiliate” means, with respect to any Person, (a) any Subsidiary of such Person and (b) any
Affiliate of such Person with which such Person files or is eligible to file consolidated, combined or unitary tax returns. 
 “Tax
Returns” has the meaning specified in Section 4.8(a) (Taxes). 
 “Taxes” means all present or future
taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“Title IV Plan” means a pension plan as defined in Section 3(2) of ERISA, other than a Multiemployer Plan, covered
by Title IV of ERISA and to which any ERISA Affiliate has any obligation or liability, contingent or otherwise. 
 “Trust
Indenture Act” has the meaning specified in Section 10.1(d) (Authorization and Action). 
 “Type”
means, with respect to a Loan, its status as a Base Rate Loan or a Eurodollar Rate Loan. 
 “UCC” or “Uniform
Commercial Code” means the Uniform Commercial Code as in effect from time to time in the state of New York; provided, however, that if a term is defined in Article 9 of the Uniform Commercial Code differently than in another
Article thereof, the term shall have the meaning set forth in Article 9; provided further that, if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of a security interest in
any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “Uniform Commercial Code” means the Uniform Commercial Code as in effect in such
other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be. 

“U.S. Lender” means each Lender that is a Domestic Person. 

“Voting Stock” of any specified Person as of any date means the Capital Stock of such Person that is at the time entitled to
vote in the election of the board of directors of such Person 
  

	 	Section 1.2	Computation of Time Periods 

 In this Agreement, in the computation of periods of
time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding” and the word
“through” means “to and including.” 

  
 -17- 

	 	Section 1.3	Accounting Terms and Principles 

 (a) Except as set forth below, all
accounting terms not specifically defined herein shall be construed in conformity with GAAP and all accounting determinations required to be made pursuant hereto (including for purpose of measuring compliance with Article V (Financial
Covenant)) shall, unless expressly otherwise provided herein, be made in conformity with GAAP. 
 (b) If any change in the
accounting principles used in the preparation of the most recent Financial Statements referred to in Section 6.1 (Financial Statements) is hereafter required or permitted by the rules, regulations, pronouncements and opinions of the
Financial Accounting Standards Board or the American Institute of Certified Public Accountants (or any successors thereto) and such change is adopted by the Borrower with the agreement of the Group Member’s Accountants and results in a change
in any of the calculations required by Article V (Financial Covenant) or VIII (Negative Covenants) that would not have resulted had such accounting change not occurred, the parties hereto agree to enter into negotiations in order to amend
such provisions so as to equitably reflect such change such that the criteria for evaluating compliance with such covenants by the Borrower shall be the same after such change as if such change had not been made; provided, however,
that no change in GAAP, including proposed changes in GAAP with respect to the treatment of operating leases and capital leases, that would affect a calculation that measures compliance with any covenant contained in Article V (Financial
Covenant) or VIII (Negative Covenants) shall be given effect until such provisions are amended to reflect such changes in GAAP. 
  

	 	Section 1.4	Conversion of Foreign Currencies 

 (a) Debt. Debt denominated in any
currency other than Dollars shall be calculated using the Dollar Equivalent thereof as of the date of the Financial Statements on which such Debt is reflected. 

(b) Rounding-Off. The Administrative Agent may set up appropriate rounding off mechanisms or otherwise round-off amounts
hereunder to the nearest higher or lower amount in whole Dollar or cent to ensure amounts owing by any party hereunder or that otherwise need to be calculated or converted hereunder are expressed in whole Dollars or in whole cents, as may be
necessary or appropriate. 
  

	 	Section 1.5	Certain Terms 

 (a) The terms “herein,”
“hereof,” “hereto” and “hereunder” and similar terms refer to this Agreement as a whole and not to any particular Article, Section, subsection or clause in, this Agreement. 

(b) Unless otherwise expressly indicated herein, (i) references in this Agreement to an Exhibit, Schedule, Article, Section,
clause or sub-clause refer to the appropriate Exhibit or Schedule to, or Article, Section, clause or sub-clause in this Agreement and (ii) the words “above” and “below,” when following a reference to a clause
or a sub-clause of any Loan Document, refer to a clause or sub-clause within, respectively, the same Section or clause. 
 (c)
Each agreement defined in this Article I shall include all appendices, exhibits and schedules thereto. Unless the prior written consent of the Requisite Lenders is required hereunder for an amendment, restatement, supplement or other
modification to any such agreement and such consent is not obtained, references in this Agreement to such agreement shall be to such agreement as so amended, restated, supplemented or modified. 

  
 -18- 

 (d) References in this Agreement to any statute shall be to such statute as amended or modified
from time to time and to any successor legislation thereto, in each case as in effect at the time any such reference is operative. 

(e) The term “including” when used in any Loan Document means “including without limitation” except when
used in the computation of time periods. 
 (f) The terms “Lender” and “Administrative
Agent” include, without limitation, their respective successors. 
 (g) Upon the appointment of any successor
Administrative Agent pursuant to Section 10.7 (Successor Administrative Agent), references to Barclays in Section 10.4 (The Administrative Agent Individually) shall be deemed to refer to the financial institution then acting
as the Administrative Agent or one of its Affiliates if it so designates. 
 ARTICLE II 

THE COMMITMENTS AND CREDIT EXTENSIONS 

 

	 	Section 2.1	The Loans 

 Subject to the terms and conditions set forth herein, each
Lender severally agrees to make a single loan in Dollars (each such loan, a “Loan”) to the Borrower on a single date on or prior to the Loan Commitment Termination Date, in an amount equal to the amount of such Lender’s
Commitment. The failure of any Lender to make any Loan shall not in itself relieve any other Lender of its obligation to lend hereunder. Amounts borrowed under this Section 2.1 and repaid or prepaid may not be reborrowed. The Loans may
be Base Rate Loans or Eurodollar Rate Loans as further provided herein. 
  

	 	Section 2.2	Borrowings of Loans 

 (a) Each Borrowing shall be either Base Rate Loans or
Eurodollar Rate Loans as the Borrower may request subject to and in accordance with this Section 2.2. Subject to the other provisions of this Section 2.2, Borrowings of more than one Type may be incurred at the same time.

 (b) Each Borrowing shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by
telephone. Each such notice must be received by the Administrative Agent not later than (i) 11:00 a.m. three Business Days prior to the requested date of any such Borrowing of Eurodollar Rate Loans (except to the extent such notice is for a
Borrowing of Eurodollar Rate Loans on the Loan Funding Date in which case, such notice must be received by the Administrative Agent not later than 11:00 a.m. two Business Days prior to the requested date of any such Borrowing of Eurodollar Rate
Loans), and (ii) 11:00 a.m. one Business Day prior to the requested date of any such Borrowing of Base Rate Loans. Each telephonic notice by the Borrower pursuant to this Section 2.2(b) must be confirmed promptly by delivery to the
Administrative Agent of a written Committed Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Each Borrowing of Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess
thereof. Each Committed Loan Notice delivered pursuant to this Section 2.2(b) (whether telephonic or written) shall specify (i) the requested amount of the Borrowing, (ii) the requested date of the Borrowing (which shall be a Business
Day), (iii) the Type of Loans to be borrowed, and (iv) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to specify a Type of Loan in a Committed Loan Notice, then the applicable Loans shall be
made as a Base Rate Loans. If the Borrower requests a Borrowing of Eurodollar Rate Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month. 

  
 -19- 

 (c) In the case of a Borrowing, each Lender shall make the amount of its Loan available to
the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed Loan Notice. Upon satisfaction of the applicable conditions set
forth in Section 3.1 (Conditions to Effectiveness), the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the
Borrower on the books of the Administrative Agent with the amount of such funds or (ii) wire transferring such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the
Borrower. 
 (d) During the existence of an Event of Default, no Eurodollar Rate Loans may be requested without the consent of the
Requisite Lenders. 
 (e) The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any
Interest Period for Eurodollar Rate Loans upon determination of such interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in the Administrative Agent’s
prime rate used in determining the Base Rate promptly following the public announcement of such change. 
  

	 	Section 2.3	[Reserved] 

  

	 	Section 2.4	[Reserved] 

  

	 	Section 2.5	Repayment of Loans 

 The Borrower shall repay to the Administrative Agent for the
ratable account of the Lenders on the Maturity Date the aggregate principal amount of all Loans outstanding on such date. 
  

	 	Section 2.6	[Reserved] 

  

	 	Section 2.7	Evidence of Debt 

 (a) Each Lender shall maintain in accordance with its
usual practice an account or accounts evidencing Debt of the Borrower to such Lender resulting from each Loan of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under
this Agreement. In addition, each Lender having sold a participation in any of its Obligations or having identified a Special Purpose Vehicle as such to the Administrative Agent, acting as a non-fiduciary agent of the Borrower solely for this
purpose and for tax purposes, shall establish and maintain at its address referred to in Section 11.8 (Notices, Etc.) a record of ownership in which such Lender shall register by book entry (i) the name and address of each such
participant and Special Purpose Vehicle (and each change thereto, whether by assignment or otherwise) and (ii) the rights, interest or obligation of each such participant and Special Purpose Vehicle in any Obligation, in any Commitment and in
any right to receive payment hereunder. 
 (b) (i) The Administrative Agent, acting as agent of the Borrower solely for this purpose
and for tax purposes, shall establish and maintain at its address referred to in Section 11.8 (Notices, Etc.) a record of ownership (the “Register”) in which the Administrative Agent agrees to register by book entry the
Administrative Agent’s, each Lender’s interest in each Loan and in the right to receive any payments hereunder and any assignment of any such interest or rights. In addition, the Administrative

  
 -20- 

 
Agent, acting as a non-fiduciary agent of the Borrower solely for this purpose and for tax purposes, shall establish and maintain accounts in the Register in accordance with its usual practice in
which it shall record (i) the names and addresses of the Lenders, (ii) the Commitments of each Lender from time to time, (iii) the amount of each Loan made and, if a Eurodollar Rate Loan, the Interest Period applicable thereto,
(iv) the amount of any principal or interest due and payable, and paid, by the Borrower to, or for the account of, each Lender hereunder and (v) the amount of any sum received by the Administrative Agent hereunder from the Borrower,
whether such sum constitutes principal or interest (and the Type of Loan to which it applies), fees, expenses or other amounts due under the Loan Documents and each Lender’s, share thereof, if applicable. 

(ii) Notwithstanding anything to the contrary contained in this Agreement, the Loans (including the Notes evidencing such
Loans) are registered obligations and the right, title, and interest of the Lenders and their assignees in and to such Loans, shall be transferable only upon notation of such transfer in the Register. A Note shall only evidence the Lender’s or
a registered assignee’s right, title and interest in and to the related Loan, and in no event is any such Note to be considered a bearer instrument or obligation. This Section 2.7(b) and Section 11.2 (Assignments and
Participations) shall be construed so that the Loans are at all times maintained in “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related regulations (or any
successor provisions of the Code or such regulations). 
 (c) The entries made in the Register and in the accounts therein maintained
pursuant to clauses (a) and (b) above shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations recorded therein; provided, however, that
the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligations of the Borrower to repay the Loans in accordance with their terms. In addition, the Loan Parties, the
Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register as a Lender, for all purposes of this Agreement. Information contained in the Register with respect to any Lender shall be available for inspection
by the Borrower, the Administrative Agent or such Lender at any reasonable time and from time to time upon reasonable prior notice. 

(d) Notwithstanding any other provision of the Agreement, in the event that any Lender requests that the Borrower execute and deliver a
promissory note or notes payable to such Lender in order to evidence the Indebtedness owing to such Lender by the Borrower hereunder, the Borrower shall promptly execute and deliver a Note or Notes to such Lender evidencing the Loans of such Lender,
substantially in the form of Exhibit E (Form of Note). 
  

	 	Section 2.8	Optional Prepayments 

 The Borrower may prepay the outstanding principal
amount of the Loans in whole or in part at any time; provided, however, that if any prepayment of any Eurodollar Rate Loan is made by the Borrower other than on the last day of an Interest Period for such Loan, the Borrower shall also
pay any amount owing pursuant to Section 2.14(d) (Breakage Costs). 
  

	 	Section 2.9	Mandatory Prepayments 

 In the event that any Group Member receives following the
Effective Date any Net Cash Proceeds of any Specified Debt Incurrence, the Borrower shall, not later than the fifth Business Day following the receipt of such Net Cash Proceeds, prepay the Loans of each Lender on a pro rata basis in an aggregate
amount equal to the amount of such Net Cash Proceeds. 

  
 -21- 

	 	Section 2.10	Interest 

 (a) Rate of Interest. All Loans and the outstanding
amount of all other Obligations shall bear interest, in the case of Loans, on the unpaid principal amount thereof from the date such Loans are made and, in the case of such other Obligations, from the date such other Obligations are due and payable
until, in all cases, paid in full, except as otherwise provided in clause (c) below, as follows: 
 (i) if
a Base Rate Loan or such other Obligation, at a rate per annum equal to the sum of (A) the Base Rate as in effect from time to time and (B) the Applicable Margin for Loans that are Base Rate Loans; and 

(ii) if a Eurodollar Rate Loan, at a rate per annum equal to the sum of (A) the Eurodollar Rate determined for the
applicable Interest Period and (B) the Applicable Margin in effect from time to time during such Eurodollar Interest Period. 

(b) Interest Payments. (i) Interest accrued on each Base Rate Loan shall be payable in arrears (A) on the first
Business Day of each calendar quarter commencing on the first such day following the making of such Base Rate Loan, (B) if not previously paid in full, at maturity (whether by acceleration or otherwise) of such Base Rate Loan and (C) upon
payment in full of all Loans (ii) interest accrued on each Eurodollar Rate Loan shall be payable in arrears (A) on the last day of each Interest Period applicable to such Loan and, if such Interest Period has a duration of more than three
months, on each date during such Interest Period occurring every three months from the first day of such Interest Period, (B) upon the payment or prepayment thereof in full or in part and (C) if not previously paid in full, at maturity
(whether by acceleration or otherwise) of such Eurodollar Rate Loan and (iii) interest accrued on the amount of all other Obligations shall be payable on demand from and after the time such Obligation becomes due and payable (whether by
acceleration or otherwise). 
 (c) Default Interest. Notwithstanding the rates of interest specified in
clause (a) above or elsewhere herein, upon the occurrence of an Event of Default specified in Section 9.1(a), (b), or (f) (Events of Default) and for as long thereafter as such Event of Default shall be
continuing, the principal balance of all Loans and the amount of all other Obligations then due and payable shall, commencing on the date when the applicable Event of Default first occurred bear interest at a rate that is two percent per annum in
excess of the rate of interest applicable to such Loans or other Obligations from time to time. Such interest shall be payable on the date that would otherwise be applicable to such interest pursuant to clause (b) above or otherwise on
demand. 
  

	 	Section 2.11	Conversion/Continuation Option 

 (a) The Borrower may elect (i) at any
time on any Business Day, to convert Base Rate Loans or any portion thereof to Eurodollar Rate Loans and (ii) at the end of any applicable Interest Period, to convert Eurodollar Rate Loans or any portion thereof into Base Rate Loans or to
continue such Eurodollar Rate Loans or any portion thereof for an additional Interest Period; provided, however, that the aggregate amount of the Eurodollar Loans for each Interest Period must be in the amount of (x) at least $1,000,000 or an
integral multiple of $1,000,000 in excess thereof or (y) the outstanding principal amount of the Loans. Each conversion or continuation shall be allocated pro rata among the Lenders in accordance with the respective principal amount of the
Loans being converted or continued. Each such election shall be in substantially the form of Exhibit B (Form of Committed Loan Notice) and shall be made by giving the Administrative Agent at least three Business Days’ prior written
notice specifying (A) the amount and Type of Loan being converted or continued, (B) in the case of a conversion to or a continuation of Eurodollar Rate Loans, the applicable Interest Period and (C) in the case of a conversion, the
date of such conversion. 

  
 -22- 

 (b) The Administrative Agent shall give to each Lender a notice by not later than 2:00
p.m. (New York time) on the date a Committed Loan Notice has been delivered to the Administrative Agent pursuant to Section 2.11(a) above of the Administrative Agent’s receipt of such Committed Loan Notice and of the options
selected therein. Notwithstanding the foregoing, no conversion in whole or in part of Base Rate Loans to Eurodollar Rate Loans and no continuation in whole or in part of Eurodollar Rate Loans upon the expiration of any applicable Interest Period
shall be permitted at any time at which (A) an Event of Default shall have occurred and be continuing or (B) the continuation of, or conversion into, a Eurodollar Rate Loan would violate any provision of Section 2.14 (Special
Provisions Governing Eurodollar Rate Loans). If, within the time period required under the terms of this Section 2.11, the Administrative Agent does not receive a Committed Loan Notice from the Borrower containing a permitted
election to continue any Eurodollar Rate Loans for an additional Interest Period or to convert any such Loans, then, upon the expiration of the applicable Interest Period, such Loans shall be automatically converted to Base Rate Loans. Each
Committed Loan Notice shall be irrevocable. 
  

	 	Section 2.12	Fees 

 (a) The Borrower shall pay to the Arranger and the Administrative Agent for
their own respective accounts fees in the amounts and at the times specified in the Fee Letter. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 

(b) The Borrower shall pay to the Administrative Agent for the account of each Lender on each of July 23, 2015, September 23,
2015, December 23, 2015 and on the Maturity Date, a fee equal to 0.25% of such Lender’s Loan that remains outstanding on such date. 
  

	 	Section 2.13	Payments and Computations 

 (a) The Borrower shall make each payment
hereunder (including fees and expenses) not later than 1:00 p.m. (New York time) on the day when due, in Dollars to the Administrative Agent at its address referred to in Section 11.8 (Notices, Etc.) in immediately available funds
without set-off or counterclaim. The Administrative Agent shall promptly thereafter cause to be distributed immediately available funds relating to the payment of principal, interest or fees to the Lenders, in accordance with the application of
payments set forth in clause (f) below for the account of their respective Applicable Lending Offices; provided, however, that amounts payable pursuant to Section 2.14(c) (Special Provisions Governing Eurodollar
Rate Loans), Section 2.15 (Capital Adequacy), or Section 2.16 (Taxes) shall be paid only to the affected Lender or Lenders. Payments received by the Administrative Agent after 1:00 p.m. (New York time) shall, at the option
of the Administrative Agent, be deemed to be received on the next Business Day. 
 (b) All computations of interest and of fees shall
be made by the Administrative Agent on the basis of a year of 360 days (or, in the case of interest accruing at the Base Rate, 365 days or 366 days, as applicable), in each case for the actual number of days (including the first day but excluding
the last day) occurring in the period for which such interest and fees are payable. Each determination by the Administrative Agent of a rate of interest hereunder shall be conclusive and binding for all purposes, absent manifest error. 

(c) Each payment by the Borrower of any Loan (including interest or fees in respect thereof) and each reimbursement of various costs, expenses
or other Obligation shall be made in Dollars. 

  
 -23- 

 (d) Whenever any payment hereunder shall be stated to be due on a day other than a
Business Day, the due date for such payment shall be extended to the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or fees, as the case may be; provided,
however, that if such extension would cause payment of interest on or principal of any Eurodollar Rate Loan to be made in the next calendar month, such payment shall be made on the immediately preceding Business Day. Unless otherwise
specified by the Borrower, all repayments of any Loans shall be applied as follows: first, to repay such Loans outstanding as Base Rate Loans and then, to repay such Loans outstanding as Eurodollar Rate Loans, with those Eurodollar
Rate Loans having earlier expiring Eurodollar Interest Periods being repaid prior to those having later expiring Eurodollar Interest Periods. 

(e) Unless the Administrative Agent shall have received notice from the Borrower to the Lenders prior to the date on which any payment is due
hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent that the Borrower shall not have made such payment in full to the Administrative Agent, each Lender shall
repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon (at the Federal Funds Rate for the first Business Day and thereafter at the rate applicable to Base Rate Loans) for each day
from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Administrative Agent. 

(f) Except for (i) payments and other amounts received by the Administrative Agent for its own account or (ii) payments and
other amounts received pursuant to Section 2.09 (Mandatory Prepayments), which such payments and other amounts shall be applied in accordance with the terms of such Section, all payments and any other amounts received by the
Administrative Agent from or for the benefit of the Borrower shall be applied as follows: first, to pay principal of, and interest on, any portion of the Loans the Administrative Agent may have advanced pursuant to the express provisions of
this Agreement on behalf of any Lender, for which the Administrative Agent has not then been reimbursed by such Lender or the Borrower, second, to pay all other Obligations then due and payable and third, as the Borrower so
designates. 
  

	 	Section 2.14	Special Provisions Governing Eurodollar Rate Loans 

 (a) Determination
of Interest Rate. The Eurodollar Rate for each Interest Period for Eurodollar Rate Loans shall be determined by the Administrative Agent pursuant to the procedures set forth in the definition of “Eurodollar Rate.” The Administrative
Agent’s determination shall be presumed to be correct absent manifest error and shall be binding on the Borrower. 
 (b)
Interest Rate Unascertainable, Inadequate or Unfair. In the event that (i) the Administrative Agent determines that adequate and fair means do not exist for ascertaining the applicable interest rates by reference to which the Eurodollar
Rate than being determined is to be fixed or (ii) the Requisite Lenders notify the Administrative Agent that the Eurodollar Rate for any Interest Period will not adequately reflect the cost to the Lenders of making or maintaining such Loans for
such Interest Period, the Administrative Agent shall forthwith so notify the Borrower and the Lenders, whereupon each Eurodollar Rate Loan shall automatically, on the last day of the current Interest Period for such Loan, convert into a Base Rate
Loan and the obligations of the Lenders to make Eurodollar Rate Loans or to convert Base Rate Loans into Eurodollar Rate Loans shall be suspended until the Administrative Agent shall notify the Borrower that the Requisite Lenders have determined
that the circumstances causing such suspension no longer exist. 

  
 -24- 

 (c) Illegality. Notwithstanding any other provision of this Agreement, if any
Lender determines that the introduction of, or any change in or in the interpretation of, any law, treaty or governmental rule, regulation or order after the date of this Agreement shall make it unlawful, or any central bank or other Governmental
Authority shall assert that it is unlawful, for any Lender or its Eurodollar Lending Office to make Eurodollar Rate Loans or to continue to fund or maintain Eurodollar Rate Loans, then, on notice thereof and demand therefor by such Lender to the
Borrower through the Administrative Agent, (i) the obligation of such Lender to make or to continue Eurodollar Rate Loans and to convert Base Rate Loans into Eurodollar Rate Loans shall be suspended, and each such Lender shall make a Base Rate
Loan as part of any requested Borrowing of Eurodollar Rate Loans and (ii) if the affected Eurodollar Rate Loans are then outstanding, the Borrower shall immediately convert each such Loan into a Base Rate Loan. If, at any time after a Lender
gives notice under this clause (d), such Lender determines that it may lawfully make Eurodollar Rate Loans, such Lender shall promptly give notice of that determination to the Borrower and the Administrative Agent, and the Administrative
Agent shall promptly transmit the notice to each other Lender. The Borrower’s right to request, and such Lender’s obligation, if any, to make Eurodollar Rate Loans shall thereupon be restored. 

(d) Breakage Costs. In addition to all amounts required to be paid by the Borrower pursuant to Section 2.10
(Interest), the Borrower shall compensate each Lender, upon demand, for all losses, expenses and liabilities (including any loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender
to fund or maintain such Lender’s Eurodollar Rate Loans to the Borrower but excluding any loss of the Applicable Margin on the relevant Loans) that such Lender may sustain (i) if for any reason a proposed Borrowing, conversion into or
continuation of Eurodollar Rate Loans does not occur on a date specified therefor in a Notice of Borrowing or a Committed Loan Notice given by the Borrower or in a telephonic request by it for borrowing or conversion or continuation or a successive
Interest Period does not commence after notice therefor is given pursuant to Section 2.11 (Conversion/Continuation Option), (ii) if for any reason any Eurodollar Rate Loan is prepaid (including mandatorily pursuant to
Section 2.9 (Mandatory Prepayments)) on a date that is not the last day of the applicable Interest Period, (iii) as a consequence of a required conversion of a Eurodollar Rate Loan to a Base Rate Loan as a result of any of the
events indicated in clause (d) above or (iv) as a consequence of any failure by the Borrower to repay Eurodollar Rate Loans when required by the terms hereof. The Lender making demand for such compensation shall deliver to the
Borrower concurrently with such demand a written statement setting forth in reasonable detail the basis for the amount so determined as to such losses, expenses and liabilities, and this statement shall be conclusive as to the amount of compensation
due to such Lender, absent manifest error. 
  

	 	Section 2.15	Capital Adequacy 

 (a) If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit, or similar requirement (including any compulsory loan
requirement, insurance charge or similar assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender; 

(ii) impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this
Agreement or the Loans; or 
 (iii) subject any Lender to any Taxes (other than (A) Indemnified Taxes that are
indemnified under Section 2.16 (Taxes) and (B) Excluded Taxes); 
 and the result of any of the foregoing shall be to increase the cost to
such Lender of making a Loan or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, 

  
 -25- 

 
interest or otherwise), then, upon request of such Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred
or reduction suffered. 
 (b) If any Lender determines that any Change in Law regarding capital or liquidity requirements has or would have
the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans made or held, to a level below that which such Lender or such
Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy and liquidity), then from
time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered. 

(c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may
be, as specified in paragraph (a) or (b) of this Section 2.15 shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such
certificate within 10 days after receipt thereof. 
 (d) Failure or delay on the part of any Lender to demand compensation pursuant to this
Section 2.15 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section 2.15 for any increased costs or
reductions incurred more than 270 days prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor; provided
further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof. 

 

	 	Section 2.16	Taxes 

 (a) Except as required by applicable law, any and all payments by
any Loan Party under each Loan Document shall be made free and clear of and without deduction for any and all present or future Taxes. If any applicable law requires the deduction or withholding of any Tax from any such payment by any applicable
withholding agent, then the applicable withholding agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and,
if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as may be necessary so that, after making all required deductions and withholdings (including deductions and withholdings applicable to
additional sums payable under this Section 2.16), such Lender (or the Administrative Agent, in the case of a payment received by the Administrative Agent for its own account) receives an amount equal to the sum it would have received had
no such deductions or withholdings been made. 
 (b) In addition, each Loan Party agrees to pay any present or future stamp,
court or documentary Taxes or any other excise, property, intangible, recording, filing or similar Taxes arising from any payment made under any Loan Document or from the execution, delivery, performance, enforcement, or registration of, or
otherwise with respect to, any Loan Document (collectively, “Other Taxes”). 
 (c) Each Loan Party shall, jointly
and severally, indemnify each Lender and the Administrative Agent for the full amount of any Indemnified Taxes (including any Indemnified Taxes imposed by any jurisdiction on amounts payable under this Section 2.16) payable or paid by
(or required to  

  
 -26- 

 
be withheld or deducted from a payment to) such Lender or the Administrative Agent (as the case may be) and any liability (including for penalties, interest and expenses) arising therefrom or
with respect thereto, whether or not such Indemnified Taxes were correctly or legally asserted. This indemnification shall be made within 10 days from the date such Lender or the Administrative Agent (as the case may be) makes written demand
therefor. 
 (d) Within 30 days after the date of any payment of Taxes or Other Taxes by any Loan Party, the Borrower shall furnish to the
Administrative Agent, at its address referred to in Section 11.8 (Notices, Etc.), the original or a certified copy of a receipt evidencing payment thereof or other evidence of payment reasonably satisfactory to the Administrative Agent.

 (e) Without prejudice to the survival of any other agreement of any Loan Party hereunder or under any other Loan Document, the agreements
and obligations of such Loan Party contained in this Section 2.16 shall survive the payment in full of the Obligations. 
 (f)
Each Lender that is entitled to an exemption from withholding Tax, or that is subject to such Tax at a reduced rate, shall provide the Administrative Agent and the Borrower, at the time or times reasonably requested by the Administrative Agent or
the Borrower, properly completed and executed documentation certifying as to such Lender’s entitlement to an exemption from, or reduction in, any withholding Tax with respect to any payments to be made to such Lender under any Loan Document.
Each such Lender shall, whenever a lapse in time or change in circumstances renders such documentation (including any specific documentation required below in this Section 2.16(f)), obsolete, expired or inaccurate in any material
respect, promptly provide Administrative Agent and the Borrower with updated or other appropriate documentation (including any new documentation reasonably requested by the Administrative Agent or the Borrower) or promptly notify the Administrative
Agent and the Borrower in writing of its inability to do so. 
 Without limiting the foregoing, 

(i) Each Non-U.S. Lender shall deliver to the Administrative Agent and the Borrower, on or before the date on which it becomes
a party to this Agreement, two completed originals of each of the following, as applicable: 
 (A) IRS Form W-8ECI (claiming
exemption from U.S. withholding tax because the income is effectively connected with a U.S. trade or business) or any successor form, (B) IRS Form W-8BEN (claiming exemption from, or a reduction of, U.S. withholding tax under an income tax
treaty) or any successor form, (C) in the case of a Non-U.S. Lender claiming exemption under Sections 871(h) or 881(c) of the Code, (1) IRS Form W-8BEN (claiming exemption from U.S. withholding tax under the portfolio interest
exemption) or any successor form and (2) a certificate substantially in the form of Exhibit D-1 to the effect that such Non-U.S. Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10
percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance
Certificate”), (D) to the extent a Non-U.S. Lender is not the beneficial owner, IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-2 or
Exhibit D-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Non-U.S. Lender is a partnership and one or more direct or indirect partners of such Non-U.S. Lender are
claiming exemption from U.S. withholding tax under the portfolio interest exemption, such Non-U.S. Lender may provide a U.S. Tax Compliance Certificate substantially 

  
 -27- 

 
in the form of Exhibit D-4 on behalf of each such direct and indirect partner, or (E) any other applicable form, certificate or document prescribed by the IRS certifying as to such
Non-U.S. Lender’s entitlement to such exemption from U.S. withholding tax or reduced rate with respect to any payments to be made to such Non-U.S. Lender under the Loan Documents. 

(ii) Each U.S. Lender shall provide the Administrative Agent and the Borrower, on or before the date on which it becomes a
party to this Agreement, with two completed originals of IRS Form W-9 (certifying that such U.S. Lender is entitled to an exemption from U.S. backup withholding tax) or any successor form. 

(iii) If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA
if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Administrative Agent and the
Borrower at the time or times prescribed by law and at such time or times reasonably requested by the Administrative Agent or the Borrower such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of
the Code) and such additional documentation reasonably requested by the Administrative Agent or the Borrower as may be necessary for the Administrative Agent or the Borrower to comply with their obligations under FATCA, to determine whether or not
such Lender has complied with such Lender’s obligations under FATCA and, if necessary, to determine the amount to deduct and withhold from such payment. Solely for purposes of this Section 2.16(f)(iii), “FATCA” shall
include any amendments made to FATCA after the date hereof. 
 Notwithstanding any other provision of this
Section 2.16(f), no Lender shall be required to deliver any form or other documentation that such Lender is not legally eligible to deliver. 

(g) Any Lender claiming any additional amounts payable pursuant to this Section 2.16 shall use its reasonable efforts
(consistent with its internal policies and Requirements of Law) to change the jurisdiction of its Applicable Lending Office if the making of such a change would avoid the need for, or reduce the amount of, any such additional amounts that would be
payable or may thereafter accrue and would not, in the sole determination of such Lender, subject such Lender to any unreimbursed cost or expense or be otherwise disadvantageous to such Lender. 

 

	 	Section 2.17	Substitution of Lenders 

 (a) In the event that (i) any Lender makes a
claim under Section 2.15 (Capital Adequacy), (ii) it becomes illegal for any Lender to continue to fund or make any Eurodollar Rate Loan and such Lender notifies the Borrower pursuant to Section 2.14(c) (Illegality) or
(iii) any Loan Party is required to make any payment pursuant to Section 2.16 (Taxes) that is attributable to a particular Lender (any such Lender, an “Affected Lender”), the Borrower may substitute any Lender and,
if reasonably acceptable to the Administrative Agent, any other Eligible Assignee (a “Substitute Institution”) for such Affected Lender hereunder, after delivery of a written notice (a “Substitution Notice”) by the
Borrower to the Administrative Agent and the Affected Lender within a reasonable time following the occurrence of any of the events described in clauses (i) through (iii) above that the Borrower intends to make such
substitution; provided, however, that, if more than one Lender claims increased costs, illegality or right to payment arising from the same act or condition and such claims are received by the Borrower within 30 days of each other,
then the Borrower may substitute all, but not (except to the extent the Borrower has already substituted one of such Affected Lenders before the Borrower’s receipt of the other Affected Lenders’ claim) less than all, Lenders making such
claims. 

  
 -28- 

 (b) If the Substitution Notice was properly issued under this Section 2.17,
the Affected Lender shall sell, and the Substitute Institution shall purchase, all rights and claims of such Affected Lender under the Loan Documents, and the Substitute Institution shall assume, and the Affected Lender shall be relieved of, the
Affected Lender’s Commitments and all other prior unperformed obligations of the Affected Lender under the Loan Documents (other than in respect of any damages (which, pursuant to Section 11.5 (Limitation of Liability), do not
include exemplary or punitive damages, to the extent permitted by applicable law) in respect of any such unperformed obligations). Such purchase and sale (and the corresponding assignment of all rights and claims hereunder) shall be recorded in the
Register maintained by the Administrative Agent and shall be effective on (and not earlier than) the latest of (i) the receipt by the Affected Lender of its portion of Loans outstanding owing to such Lender, together with any other Obligations
then due and owing to it, (ii) the receipt by the Administrative Agent of an agreement in form and substance satisfactory to it and the Borrower whereby the Substitute Institution shall agree to be bound by the terms hereof and (iii) the
payment in full to the Affected Lender in cash of all fees, unreimbursed costs and expenses and indemnities accrued and unpaid through such effective date. Upon the effectiveness of such sale, purchase and assumption, the Substitute Institution
shall become a “Lender” hereunder for all purposes of this Agreement having a Commitment in the amount of such Affected Lender’s Commitment assumed by it and such Commitment of the Affected Lender shall be terminated;
provided, however, that all indemnities under the Loan Documents shall continue in favor of such Affected Lender. 

(c) Each Lender agrees that, if it becomes an Affected Lender and its rights and claims are assigned hereunder to a Substitute
Institution pursuant to this Section 2.17, it shall execute and deliver to the Administrative Agent an Assignment and Acceptance to evidence such assignment; provided, however, that the failure of any Affected Lender to
execute an Assignment and Acceptance shall not render such assignment invalid. 
 ARTICLE III 

CONDITIONS PRECEDENT 
  

	 	Section 3.1	Conditions to Effectiveness 

 The effectiveness of this Agreement and the
obligation of each Lender to make the Loans requested to be made by it on the Loan Funding Date shall be subject to the satisfaction or due waiver in accordance with Section 11.1 (Amendments, Waivers, Etc.) of each of the following
conditions precedent (the date on which such conditions are satisfied or waived being herein called the “Effective Date”). 

(a) Certain Documents. The Administrative Agent shall have received on or prior to the Effective Date (and, to the extent any
Borrowing of any Eurodollar Rate Loans is requested to be made on the Loan Funding Date, in respect of the Committed Loan Notice for such Eurodollar Rate Loans, at least two Business Days prior to the Loan Funding Date) each of the following, each
dated the Effective Date unless otherwise indicated or agreed to by the Administrative Agent, in form and substance satisfactory to the Administrative Agent: 

(i) this Agreement, duly executed and delivered by the Borrower; 

(ii) the Guaranty, duly executed by each Guarantor; 

(iii) (x) Pledge Amendment, duly executed by the Borrower and each Pledgor and The Bank of New York Mellon Trust Company,
N.A., and (y) the Additional Secured Debt Designation, duly executed by the Borrower and the Collateral Agent, in each case, in the form previously provided to the Administrative Agent and Lenders; 

  
 -29- 

 (iv) evidence satisfactory to the Administrative Agent that the Collateral Agent
(for the benefit of the Secured Parties) shall have a valid and perfected security interest in the Collateral; 
 (v)
[reserved]; 
 (vi) a favorable opinion of (A) Gibson, Dunn & Crutcher LLP, counsel to the Loan Parties,
(B) counsel to the Loan Parties in Nevada and (C) Deputy General Counsel of the Borrower, in each case addressed to the Administrative Agent and the Lenders and addressing such other matters as any Lender through the Administrative Agent
may reasonably request; 
 (vii) [reserved]; 

(viii) a certificate of the Secretary or an Assistant Secretary of each Loan Party certifying (A) the names and true
signatures of each officer of such Loan Party that has been authorized to execute and deliver any Loan Document or other document required hereunder to be executed and delivered by or on behalf of such Loan Party, (B) the by-laws (or equivalent
Constituent Document) of such Loan Party as in effect on the date of such certification (other than for Tenet 100 Medical Center Slidell, L.L.C. (formerly known as NorthShore Regional Medical Center, L.L.C. which, as the date hereof, does not have
bylaws or equivalent documents)), (C) the resolutions of such Loan Party’s Board of Directors (or equivalent governing body) approving and authorizing the execution, delivery and performance of this Agreement and the other Loan Documents
to which it is a party and (D) the certificate of incorporation (or equivalent Constituent Document) of such Loan Party as in effect on the date of such certification; 

(ix) the Administrative Agent and the Lenders shall have received all documentation and other information required by
regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the Patriot Act as is reasonably requested in writing by the Administrative Agent at least five
Business Days prior to the date hereof; 
 (x) a certificate of a Responsible Officer to the effect that (A) the Loan
Parties, taken as a whole, are Solvent on the Effective Date, (B) the condition set forth in Section 3.1(d) has been satisfied and (C) no action, suit, investigation, litigation or proceeding not disclosed in the 2014 10-K has
been commenced against any Loan Party or any of its Subsidiaries that (x) could have a Material Adverse Effect or (y) restrains, prevents or imposes or can reasonably be expected to impose materially adverse conditions upon the Facility or
the transactions contemplated hereby; 
 (xi) the Administrative Agent shall have received a Committed Loan Notice in
accordance with the requirements hereof; and 
 (xii) such other certificates, documents, agreements and information
respecting any Loan Party as any Lender through the Administrative Agent may reasonably request. 
 (b) [reserved]. 

(c) Fees and Expenses Paid. There shall have been paid to the Administrative Agent, for the account of the Arranger, the Administrative
Agent and the Lenders, as applicable, all fees and expenses (including reasonable fees and expenses of counsel) due and payable on or before the Effective 

  
 -30- 

 
Date (including but not limited to all such fees described in Section 2.12 (Fees) that are payable on the Effective Date and all such fees described in the Fee Letter);
provided however, that such fees and expenses may be netted from the Borrowing to be made on the Loan Funding Date and this condition precedent shall be satisfied upon the submission of an irrevocable authorization by the Borrower to the
Administrative Agent permitting the netting of an amount that is equal to the fees and expenses required to be paid pursuant to this Section 3.1(c). The Borrower hereby irrevocably authorizes the Administrative Agent to net such amount from the
Borrowing to be made on the Loan Funding Date. 
 (d) Representations and Warranties; No Defaults. The following statements shall be
true on the date of such Loan, both before and after giving effect thereto and, in the case of any Loan, to the application of the proceeds thereof: 

(i) the representations and warranties set forth in Article IV (Representations and Warranties) and in the other
Loan Documents shall be true and correct on and as of the Effective Date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and
correct in all material respects as of such earlier date; and 
 (ii) no Default or Event of Default shall have occurred and
be continuing. 
 (e) No Legal Impediments. The making of the Loans on such date does not violate any Requirement of Law on the date
of or immediately following such Loan and is not enjoined, temporarily, preliminarily or permanently. 
 Each submission by the Borrower to the
Administrative Agent of a Committed Loan Notice and the acceptance by the Borrower of the proceeds of each Loan requested therein shall be deemed to constitute a representation and warranty by the Borrower as to the matters specified in
clause (d) above on the date of the making of such Loan. 
  

	 	Section 3.2	Determinations of Conditions 

 For purposes of determining compliance with the
conditions specified in Section 3.1 (Conditions to Effectiveness), each Lender shall be deemed to have consented to, approved, accepted or be satisfied with, each document or other matter required thereunder to be consented to or
approved by or acceptable or satisfactory to the Lender unless an officer of the Administrative Agent responsible for the transactions contemplated by the Loan Documents shall have received notice from such Lender prior to the initial Borrowing
hereunder specifying its objection thereto. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

To induce the Lenders and the Administrative Agent to enter into this Agreement, the Borrower represents and warrants each of the following to
the Lenders and the Administrative Agent, on and as of the Effective Date and after giving effect to the making of the Loans and the other financial accommodations on the Loan Funding Date. 

 

	 	Section 4.1	Corporate Existence; Compliance with Law 

 Each Group Member (a) is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (b) is duly qualified to do business as a foreign entity and 

  
 -31- 

 
in good standing under the laws of each jurisdiction where such qualification is necessary, except where the failure to be so qualified or in good standing would not, in the aggregate, have a
Material Adverse Effect, (c) has all requisite power and authority and the legal right to own, pledge, mortgage and operate its properties, to lease the property it operates under lease and to conduct its business as now or currently proposed
to be conducted, (d) is in compliance with its Constituent Documents, (e) is in compliance with all applicable Requirements of Law (including all Health Care Laws) except where the failure to be in compliance would not, in the aggregate,
have a Material Adverse Effect, (f) has all necessary Permits from or by, has made all necessary filings with, and has given all necessary notices to, each Governmental Authority having jurisdiction, to the extent required for such ownership,
operation and conduct, except for Permits or filings that can be obtained or made by the taking of ministerial action to secure the grant or transfer thereof or the failure to obtain or make would not, in the aggregate, have a Material Adverse
Effect, and (g) is in compliance in all material respects with all laws relating to terrorism or money laundering, including the Patriot Act. 
  

	 	Section 4.2	Corporate Power; Authorization; Enforceable Obligations 

 (a) The execution,
delivery and performance by each Loan Party of the Loan Documents to which it is a party and the consummation of the transactions contemplated thereby: 

(i) are within such Loan Party’s corporate, limited liability company, partnership or other powers; 

(ii) have been or, at the time of delivery thereof pursuant to Article III (Conditions Precedent), will have been
duly authorized by all necessary action, including the consent of shareholders, partners and members where required; 
 (iii)
do not and will not (A) contravene or violate such Loan Party’s or any of its Subsidiaries’ respective Constituent Documents, (B) violate any other Requirement of Law applicable to such Loan Party (including Regulations T, U
and X of the Federal Reserve Board), or any order or decree of any Governmental Authority or arbitrator applicable to such Loan Party, (C) conflict with or result in the breach of, or constitute a default under, or result in or permit the
termination or acceleration of, any other material Contractual Obligation of such Loan Party or any of its Subsidiaries or (D) result in the creation or imposition of any Lien upon any property of such Loan Party or any of its Subsidiaries,
other than those in favor of the Secured Parties pursuant to the Collateral Documents; and 
 (iv) do not require the consent
of, authorization by, approval of, notice to, or filing or registration with, any Governmental Authority or any other Person, other than those listed on Schedule 4.2 (Consents) and that have been or will be, prior to the Effective Date,
obtained or made, copies of which have been or will be delivered to the Administrative Agent pursuant to Section 3.1 (Conditions to Effectiveness), and each of which on the Effective Date will be in full force and effect and, with
respect to the Collateral, filings required to perfect the Liens created by the Collateral Documents. 
 (b) This Agreement has been, and
each of the other Loan Documents will have been upon delivery thereof pursuant to the terms of this Agreement, duly executed and delivered by each Loan Party party thereto. This Agreement is, and the other Loan Documents will be, when delivered
hereunder, the legal, valid and binding obligation of each Loan Party party thereto, enforceable against such Loan Party in accordance with its terms. 

  
 -32- 

	 	Section 4.3	Subsidiaries; Borrower Information 

 (a) Set forth on Schedule 4.3(a)
(Domestic Hospital Subsidiaries) is a complete and accurate list showing, as of the Effective Date, all Domestic Hospital Subsidiaries of the Borrower and, as to each such Domestic Hospital Subsidiary, the jurisdiction of its organization. No
Capital Stock of any Guarantor is subject to any outstanding option, warrant, right of conversion or purchase of any similar right. All of the outstanding Capital Stock of each Guarantor owned (directly or indirectly) by the Borrower has been
validly issued, is fully paid and non-assessable (to the extent applicable) and is owned by the Borrower or a Guarantor, free and clear of all Liens (other than Liens permitted pursuant to Section 8.1 (Liens)), options, warrants, rights
of conversion or purchase or any similar rights. 
 (b) Schedule 4.3(b) (Borrower Information) sets forth as of the Effective
Date the name, address of principal place of business and tax identification number of the Borrower. 
  

	 	Section 4.4	Financial Statements 

 The Consolidated balance sheet of the Borrower and its
Subsidiaries as at December 31, 2014, and the related Consolidated statements of income and cash flows of the Borrower and its Subsidiaries for the fiscal year then ended, certified by Deloitte & Touche LLP, copies of which have been
furnished to each Lender, fairly present the Consolidated financial condition of the Borrower and its Subsidiaries as at such dates and the Consolidated results of the operations of the Borrower and its Subsidiaries for the period ended on such
dates, all in conformity with GAAP. 
  

	 	Section 4.5	Material Adverse Change 

 Since December 31, 2014, there has been no Material
Adverse Change and there have been no events or developments that, in the aggregate, have had a Material Adverse Effect. 
  

	 	Section 4.6	Solvency 

 Both before and after giving effect to (a) the Loans to be made on
the Effective Date or such other date as Loans requested hereunder are made or extended, (b) the disbursement of the proceeds of such Loans pursuant to the instructions of the Borrower and (c) the payment and accrual of all transaction
costs in connection with the foregoing, the Loan Parties, taken as a whole, are Solvent. 
  

	 	Section 4.7	Litigation 

 Except as disclosed in the 2014 10-K, there are no pending or, to the
knowledge of any Group Member, threatened actions, investigations, litigations, or proceedings affecting the Borrower or any of its Subsidiaries before any court, Governmental Authority or arbitrator other than those that, in the aggregate,
(x) could not have a Material Adverse Effect or (y) do not restrain, prevent or impose or can reasonably be expected to impose materially adverse conditions upon the Facility or the transactions contemplated hereby. The performance of any
action by any Loan Party required or contemplated by any Loan Document is not restrained or enjoined (either temporarily, preliminarily or permanently). 
  

	 	Section 4.8	Taxes 

 (a) All federal, and other material state, local and foreign income and
franchise and other material tax returns, reports and statements (collectively, the “Tax Returns”) required to be filed by the Borrower or any of its Tax Affiliates have been filed with the appropriate Governmental Authorities in
all jurisdictions in which such Tax Returns are required to be filed, all such Tax Returns are true and 

  
 -33- 

 
correct in all material respects, and all Taxes reflected therein or otherwise due and payable have been paid except where contested in good faith and by appropriate proceedings if adequate
reserves therefor have been established on the books of the Borrower or such Tax Affiliate in conformity with GAAP. Except as disclosed on Schedule 4.8 (Taxes), no Tax Return is under audit or examination by any Governmental Authority and no
notice of such an audit or examination or any assertion of any claim for Taxes has been given or made by any Governmental Authority. The Borrower and each of its Tax Affiliates have complied in all material respects with the tax, social security and
unemployment withholding provisions of applicable Requirements of Law and such withholdings have been timely paid to the respective Governmental Authorities. 

(b) Except as disclosed on Schedule 4.8 (Taxes), none of the Borrower or any of its Tax Affiliates has (i) executed or filed with
the IRS or any other Governmental Authority any agreement or other document extending, or having the effect of extending, the period for the filing of any Tax Return or the assessment or collection of any charges, (ii) incurred any obligation
under any tax sharing agreement or arrangement other than those of which the Administrative Agent has received a copy prior to the date hereof or (iii) been a member of an affiliated, combined or unitary group other than the group of which the
Borrower (or its Tax Affiliate) is the common parent. 
  

	 	Section 4.9	Full Disclosure 

 The information prepared or furnished by or on behalf of any
Group Member in connection with this Agreement or the consummation of the transactions contemplated hereunder and thereunder taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements contained therein or herein not materially misleading in light of the circumstances under which such statements were made. 
  

	 	Section 4.10	Margin Regulations 

 The Borrower is not engaged in the business of extending
credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Federal Reserve Board) and no proceeds of any Loan will be used to purchase or carry any such margin stock or to extend credit to others for the
purpose of purchasing or carrying any such margin stock in violation of Regulation T, U or X of the Federal Reserve Board. 
  

	 	Section 4.11	No Burdensome Restrictions; No Defaults 

 (a) No Group Member (i) is a party to
any Contractual Obligation the compliance with one or more of which would have, in the aggregate, a Material Adverse Effect or the performance of which by any thereof, either unconditionally or upon the happening of an event, would result in the
creation of a Lien (other than a Lien permitted under Section 8.1 (Liens)) on the assets of any thereof or (ii) is subject to one or more charter or corporate restrictions that would, in the aggregate, have a Material Adverse Effect.

 (b) No Group Member is in default under or with respect to any Contractual Obligation owed by it and, to the knowledge of the Borrower,
no other party is in default under or with respect to any Contractual Obligation owed to any Loan Party or to any Subsidiary of any Loan Party, other than, in either case, those defaults that, in the aggregate, would not have a Material Adverse
Effect. 
 (c) No Default or Event of Default has occurred and is continuing. 

(d) To the best knowledge of the Borrower, there are no Requirements of Law applicable to any Loan Party or any Subsidiary of any Loan Party
the compliance with which by such Loan Party or such Subsidiary, as the case may be, would, in the aggregate, have a Material Adverse Effect. 

  
 -34- 

	 	Section 4.12	Investment Company Act 

 No Group Member is an “investment
company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act of
1940, as amended. 
  

	 	Section 4.13	[Reserved] 

  

	 	Section 4.14	Use of Proceeds 

 The proceeds of the Loans made on the Loan Funding Date will be
used by the Borrower solely (a) to repay outstanding loans under the Existing Credit Agreement and (b) for the payment of transaction costs, fees and expenses incurred in connection with this Agreement and the transactions contemplated
hereby. The Borrower will not utilize the proceeds of any Loan in violation of the Foreign Corrupt Practices Act of 1977, as amended and no proceeds of any Loan will be used directly or indirectly to acquire any such margin stock or in violation of
Regulation T, U or X of the Federal Reserve Board. 
  

	 	Section 4.15	Insurance 

 All policies of insurance of any kind or nature of the Borrower or any
of its Subsidiaries, including policies of life, fire, theft, product liability, public liability, property damage, other casualty, employee fidelity, workers’ compensation and employee health and welfare insurance, are in full force and effect
and are of a nature and provide such coverage as is sufficient and as is customarily carried by businesses of the size and character of such Person. None of the Borrower or any of its Subsidiaries has been refused insurance for any material coverage
for which it had applied or had any policy of insurance terminated (other than at its request). 
  

	 	Section 4.16	Labor Matters 

 (a) There are no strikes, work stoppages, slowdowns or lockouts
pending or threatened against or involving any Group Member, other than those that, in the aggregate, would not have a Material Adverse Effect. 

(b) There are no unfair labor practices, grievances, complaints or arbitrations pending, or, to any Group Member’s knowledge, threatened,
against or involving any Group Member, nor are there any arbitrations or grievances threatened involving any Group Member, other than those that, in the aggregate, would not have a Material Adverse Effect. 

 

	 	Section 4.17	ERISA 

 (a) Except for those that would not, in the aggregate, have a Material
Adverse Effect, (i) each Benefit Plan is in compliance in all material respects with applicable provisions of ERISA, the Code and other Requirements of Law, (ii) there are no existing or pending (or, to the knowledge of any Group Member,
threatened) claims (other than routine claims for benefits in the normal course), sanctions, actions, lawsuits or other proceedings or investigations involving any Benefit Plan to which any Group Member incurs or otherwise has or could have an
obligation or any liability and (iii) no ERISA Event is reasonably expected to occur. 
 (b) On the date of this Agreement, no ERISA
Event has occurred in connection with which obligations and liabilities (contingent or otherwise) remain outstanding. 

  
 -35- 

	 	Section 4.18	Environmental Matters 

 The operations of each Group Member have been and are in
compliance with all Environmental Laws, including obtaining and complying with all required environmental, health and safety Permits, other than non-compliances that, in the aggregate, would not have a Material Adverse Effect. 

 

	 	Section 4.19	Intellectual Property 

 Each Group Member owns or licenses or otherwise has the
right to use all licenses, permits, patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, copyright applications, Internet domain names, franchises, authorizations and other intellectual property
rights that are necessary for the operations of its respective businesses, without infringement upon or conflict with the rights of any other Person with respect thereto, including all trade names associated with any private label brands of any
Group Member, that would result in a Material Adverse Effect. To the knowledge of each Group Member, no license, permit, patent, patent application, trademark, trademark application, service mark, trade name, copyright, copyright application,
Internet domain name, franchise, authorization, other intellectual property right, slogan or other advertising device, product, process, method, substance, part or component, or other material now employed, or now contemplated to be employed, by any
Group Member infringes upon or conflicts with any rights owned by any other Person that would result in a Material Adverse Effect, and no claim or litigation regarding any of the foregoing is pending or threatened. 

 

	 	Section 4.20	Collateral Documents 

 The Collateral Documents create in favor of the
Administrative Agent, for the benefit of the Secured Parties referred to therein, a legal, valid, continuing and enforceable security interest in the Collateral, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Upon the making of the filings contemplated in the Collateral Documents and/or the
obtaining of “control” (as defined in the UCC) of the Collateral under the Collateral Documents, the Administrative Agent will have a perfected Lien on, and security interest in, to and under all right, title and interest of the Loan
Parties thereunder in all Collateral that may be perfected under the UCC (in effect on the date this representation is made) by filing, recording or registering a financing statement or analogous document (including without limitation the proceeds
of such Collateral subject to the limitations relating to such proceeds in the UCC) or by obtaining control, in each case prior in right to all other Liens on the Collateral except for (i) Liens securing any First-Priority Lien Obligations and
(ii) Permitted Prior Liens having priority over the Collateral Trustee’s Lien by operation of law or otherwise as permitted by this Agreement 
  

	 	Section 4.21	OFAC 

 No Group Member is subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department (“OFAC”), and the Borrower will not directly or indirectly use the proceeds of any Loan hereunder or otherwise make available such proceeds to any Person, for the purpose of
financing the activities of any Person subject to any U.S. sanctions administered by OFAC. 

  
 -36- 

 ARTICLE V 

FINANCIAL COVENANT 

The Borrower agrees with the Lenders and the Administrative Agent, as long as any Obligation (other than contingent indemnification
obligations to the extent no claim giving rise thereto has been asserted) or any Commitment remains outstanding and, in each case, unless the Requisite Lenders otherwise consent in writing, the Borrower will not permit the Secured Debt Ratio on the
last day of any Fiscal Quarter of the Borrower to exceed 4.25 to 1.0. 
 ARTICLE VI 

REPORTING COVENANTS 

The Borrower agrees with the Lenders and the Administrative Agent to each of the following, as long as any Obligation (other than contingent
indemnification obligations to the extent no claim giving rise thereto has been asserted) or any Commitment remains outstanding and, in each case, unless the Requisite Lenders otherwise consent in writing: 

 

	 	Section 6.1	Financial Statements 

 The Borrower shall furnish to the Administrative Agent
(unless delivered electronically, with sufficient copies for each of the Lenders) each of the following: 
 (a) Quarterly
Reports. Within 45 days after the end of the first three Fiscal Quarters of each Fiscal Year commencing with the Fiscal Quarter ending March 31, 2015, financial information regarding the Borrower and its Subsidiaries consisting of
Consolidated unaudited balance sheets as of the close of such quarter and the related statements of income and cash flow for such quarter and that portion of the Fiscal Year ending as of the close of such quarter, setting forth in comparative form
(i) the figures of its Consolidated statement of income for the corresponding period in the prior year and (ii) the figures of its Consolidated statement of income and cash flow for that portion of the prior Fiscal Year ending as of the
close of such quarter in the prior Fiscal Year, in each case certified by a Responsible Officer of the Borrower as fairly presenting the Consolidated financial condition of the Borrower and its Subsidiaries as at the dates indicated and the results
of their operations and cash flow for the periods indicated in accordance with GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments). 

(b) Annual Reports. Within 90 days after the end of each Fiscal Year, commencing with the Fiscal Year ending
December 31, 2015, financial information regarding the Borrower and its Subsidiaries consisting of Consolidated balance sheets of the Borrower and its Subsidiaries as of the end of such year and related statements of income and cash flows of
the Borrower and its Subsidiaries for such Fiscal Year, all prepared in conformity with GAAP and certified, in the case of such Consolidated Financial Statements, without qualification as to the scope of the audit or as to the Borrower being a going
concern by the Group Member’s Accountants, together with the report of such accounting firm stating that (i) such Financial Statements fairly present the Consolidated financial condition of the Borrower and its Subsidiaries as at the dates
indicated and the results of their operations and cash flow for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except for changes with which the Group Member’s Accountants shall concur and that
shall have been disclosed in the notes to the Financial Statements) and (ii) the examination by the Group Member’s Accountants in connection with such Consolidated Financial Statements has been made in accordance with generally accepted

  
 -37- 

 
auditing standards, and accompanied by a certificate stating that in the course of the regular audit of the financial statements of the Borrower and its Subsidiaries such accounting firm has
obtained no knowledge that a Default or Event of Default in respect of the financial covenants contained in Article V (Financial Covenant) has occurred and is continuing, or, if in the opinion of such accounting firm, a Default or Event of
Default has occurred and is continuing in respect of such financial covenants, a statement as to the nature thereof. 
 (c)
Compliance Certificate. Together with each delivery of any Financial Statement pursuant to clause (a) or (b) above, a certificate of a Responsible Officer of the Borrower (each, a “Compliance
Certificate”) (i) showing in reasonable detail the calculations used in determining (1) the Secured Debt Ratio as of the last day of such period and (2) demonstrating, to the extent required, compliance with the financial
covenant contained in Article V (Financial Covenant) that is tested on a quarterly basis and (ii) stating that no Default or Event of Default has occurred and is continuing or, if a Default or an Event of Default has occurred and is
continuing, stating the nature thereof and the action that the Borrower proposes to take with respect thereto. 
 (d)
Corporate Chart and Other Collateral Updates. Together with each delivery of any Financial Statement pursuant to clause (a) or (b) above (i) a certificate of a Responsible Officer of the Borrower certifying that
the Corporate Chart attached thereto (or the last Corporate Chart delivered pursuant to this clause (d)) is true, correct, complete and current as of the date of such Financial Statement and (ii) a certificate of a Responsible
Officer of the Borrower in form and substance satisfactory to the Administrative Agent that all statements, updates and other documents (including updated schedules) required to be delivered pursuant to the Stock Pledge Agreement by any Loan Party
in the preceding Fiscal Quarter have been delivered thereunder (or such delivery requirement was otherwise duly waived or extended). The reporting requirements set forth in this clause (d) are in addition to, and are not intended to and
shall not replace or otherwise modify, any obligation of any Loan Party under any Loan Document (including other notice or reporting requirements). Compliance with the reporting obligations in this clause (d) shall only provide notice to
the Administrative Agent and shall not, by itself, modify any obligation of any Loan Party under any Loan Document, update any Schedule to this Agreement or any schedule to any other Loan Document or cure, or otherwise modify in any way, any failure
to comply with any covenant, or any breach of any representation or warranty, contained in any Loan Document or any other Default or Event of Default. 

(e) [Reserved]. 

(f) [Reserved]. 

(g) Deemed Delivery. Information required to be delivered pursuant to clauses (a) and (b) of
this Section 6.1 or Section 6.5 (SEC Filings) shall be deemed to have been delivered on the date on which the Borrower posts such information on the Borrower’s website on the Internet at http://www.tenethealth.com/, at
www.sec.gov/ or at another website identified in a written notice to the Administrative Agent and the Lenders and accessible by the Administrative Agent and the Lenders without charge; provided, however, that the Borrower shall deliver
electronic or paper copies of the information required to be delivered pursuant to clauses (a) and (b) to the Administrative Agent promptly thereafter. 

 

	 	Section 6.2	Default Notices 

 As soon as practicable, and in any event within five Business
Days after a Responsible Officer of any Loan Party has actual knowledge of the existence of any Default, Event of Default or other 

  
 -38- 

 
event having had a Material Adverse Effect or having any reasonable likelihood of causing or resulting in a Material Adverse Change, the Borrower shall give the Administrative Agent notice
specifying the nature of such Default or Event of Default or other event, including the anticipated effect thereof, which notice, if given by telephone, shall be promptly confirmed in writing on the next Business Day. 

 

	 	Section 6.3	Litigation 

 Promptly after the commencement thereof, the Borrower shall give the
Administrative Agent written notice of the commencement of all actions, suits and proceedings before any domestic or foreign Governmental Authority or arbitrator affecting any Group Member that in the reasonable judgment of the Borrower, would have
a Material Adverse Effect. 
  

	 	Section 6.4	[Reserved] 

  

	 	Section 6.5	[Reserved] 

  

	 	Section 6.6	[Reserved] 

  

	 	Section 6.7	ERISA Matters 

 The Borrower shall furnish the Administrative Agent (unless
delivered electronically, with sufficient copies for each of the Lenders) promptly and in any event within 30 days after any Group Member or any ERISA Affiliate knows or has reason to know that any ERISA Event has occurred, written notice describing
such event. 
  

	 	Section 6.8	Environmental Matters 

 The Borrower shall provide the Administrative Agent
promptly and in any event within 10 days after any Group Member learning of any of the following, written notice of each of the following: 

(a) that any Loan Party is or may be liable to any Person as a result of a Release or threatened Release that would result in a
Material Adverse Effect; 
 (b) the receipt by any Loan Party of any notice of violation of or potential liability under, or
knowledge by such Loan Party that there exists a condition that could reasonably be expected to result in a violation of or liability under, any Environmental Law, except for violations and liabilities the consequence of which, in the aggregate,
would not result in a Material Adverse Effect; and 
 (c) the commencement of any judicial or administrative proceeding or
investigation alleging a violation of or liability under any Environmental Law, that, in the aggregate, would result in a Material Adverse Effect. 
  

	 	Section 6.9	[Reserved] 

  

	 	Section 6.10	Tax Reporting 

 If the Borrower determines that it intends to treat the Loans and
the related transactions contemplated hereby as a “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4 of the Code, the Borrower shall give the Administrative Agent written notice thereof and shall
deliver to the Administrative Agent all IRS forms required in connection therewith. 

  
 -39- 

	 	Section 6.11	[Reserved] 

  

	 	Section 6.12	Other Information 

 The Borrower shall provide the Administrative Agent or any
Lender with such other information respecting the business, properties, condition, financial or otherwise, or operations of the Group Members as the Administrative Agent or such Lender through the Administrative Agent may from time to time
reasonably request. 
 ARTICLE VII 

AFFIRMATIVE COVENANTS 

The Borrower agrees with the Lenders and the Administrative Agent to each of the following, as long as any Obligation (other than contingent
indemnification obligations to the extent no claim giving rise thereto has been asserted) or any Commitment remains outstanding and, in each case, unless the Requisite Lenders otherwise consent in writing: 

 

	 	Section 7.1	Preservation of Corporate Existence, Etc. 

 Each Loan Party shall preserve and
maintain its legal existence, rights (charter and statutory) and franchises, except as permitted by Section 8.4 (Sale of Assets) and Section 8.5 (Fundamental Changes). 

 

	 	Section 7.2	Compliance with Laws, Etc. 

 Each Group Member shall comply with all applicable
Requirements of Law, Contractual Obligations and Permits, except where the failure so to comply would not, in the aggregate, have a Material Adverse Effect. 
  

	 	Section 7.3	Conduct of Business 

 Each Group Member shall (a) conduct its business in the
ordinary course and (b) use its reasonable efforts, in the ordinary course of business, to preserve its business and the goodwill and business of the customers, advertisers, suppliers and others having business relations with any Group Member,
except in each case where the failure to comply with the covenants in each of clauses (a) and (b) above would not, in the aggregate, have a Material Adverse Effect. 

 

	 	Section 7.4	Payment of Taxes, Etc. 

 Each Group Member shall file all Tax Returns required to
be filed by it before such returns are delinquent and will pay all Taxes when due and payable, except where contested in good faith, by proper proceedings and adequate reserves therefor have been established on the books of such Group Member in
conformity with GAAP. 
  

	 	Section 7.5	Maintenance of Insurance 

 Each Group Member shall maintain or cause to be
maintained insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas
in which the Group Member operates, and, in any event, all insurance required by any Collateral Documents. 

  
 -40- 

	 	Section 7.6	Access 

 Each Group Member shall from time to time permit the Administrative Agent
and the Lenders, or any agents or representatives thereof, within five Business Days (or such longer period as agreed to by the Administrative Agent) after written notification of the same (except that during the continuance of an Event of Default,
no such notice shall be required) to (a) examine and make copies of and abstracts from the records and books of account of each Group Member, (b) visit the properties of each Group Member, (c) discuss the affairs, finances and
accounts of each Group Member with any officer or director of any Group Member and (d) communicate directly with any certified public accountants (including the Group Member’s Accountants). Each Group Member shall authorize its certified
public accountants (including the Group Members’ Accountants) of any Group Member to disclose to the Administrative Agent or any Lender any and all financial statements and other information of any kind, as the Administrative Agent or any
Lender reasonably requests and that such accountants may have with respect to the business, financial condition, results of operations or other affairs of any Group Member. 
  

	 	Section 7.7	Keeping of Books 

 Each Group Member shall keep proper books of record and account
in which full and correct entries shall be made in conformity with GAAP of all financial transactions and the assets and business of each Group Member. 
  

	 	Section 7.8	Maintenance of Properties, Etc. 

 Each Group Member shall maintain and preserve
(a) in good working order and condition all of its properties necessary in the conduct of its business, (b) all rights, permits, licenses, approvals and privileges (including all Permits) used or useful or necessary in the conduct of its
business and (c) all registered patents, trademarks, trade names, copyrights and service marks with respect to its business, except where failure to so maintain and preserve the items set forth in clauses (a), (b) and
(c) above would not, in the aggregate, have a Material Adverse Effect. 
  

	 	Section 7.9	[Reserved] 

  

	 	Section 7.10	Additional Collateral and Guarantees 

 (a) The Borrower shall cause each
Subsidiary that Guarantees the Secured Notes and any other newly created or acquired direct or indirect Subsidiary organized in a jurisdiction in the United States that (i) owns or operates a hospital or (ii) has a direct or indirect
equity interest in a Subsidiary that owns or operates a hospital, other than, in each of the cases (i) and (ii), any such Subsidiary that is a non-wholly-owned Subsidiary if the Constituent Documents thereof or related joint venture or similar
agreements, or applicable law, would (A) prohibit the entering into the Guaranty without the consent of the equity holders thereof (other than the Borrower or its wholly owned Subsidiaries) or (B) upon the entry into the Guaranty, trigger
in favor of the equity holders thereof (other than the Borrower or its wholly owned Subsidiaries) rights in respect of the Capital Stock of such Subsidiary, to execute and deliver to the Administrative Agent a joinder to the Guaranty in form
reasonably satisfactory to the Administrative Agent. 
 (b) The Borrower shall, and shall cause the Guarantors that are Pledgors, to comply
with all obligations under the Stock Pledge Agreement (as it relates to the Obligations). 

  
 -41- 

 ARTICLE VIII 

NEGATIVE COVENANTS 

The Borrower agrees with the Lenders and the Administrative Agent to each of the following, as long as any Obligation (other than contingent
indemnification obligations to the extent no claim giving rise thereto has been asserted) or any Commitment remains outstanding and, in each case, unless the Requisite Lenders otherwise consent in writing: 

 

	 	Section 8.1	Liens 

 (a) Neither the Borrower nor any of its Subsidiaries will issue, incur,
create, assume or guarantee (collectively, “incur”) any Debt secured by Liens upon property or assets (including the Collateral), unless at the time of and after giving effect to the incurrence of such Debt, the aggregate amount of
all such Secured Debt (including the aggregate principal amount of Secured Notes outstanding at such time) shall not exceed the greater of (x) $3.2 billion and (y) the amount which would cause the Secured Debt Ratio to exceed 4.0 to 1.0;
provided that, the aggregate amount of all such Debt secured by a Lien senior to the Lien securing the Obligations shall not exceed the greater of (a) $2.6 billion and (b) the amount which would cause the Secured Debt Ratio
to exceed 3.0 to 1.0. If any such Secured Debt (other than Permitted Credit Agreement Debt) is secured by property or assets other than the Collateral, the Obligations shall be secured equally and ratably with, or prior to such debt (or, in the case
of the Secured Notes, the Existing LC Facility and other Debt secured by Liens ranking pari passu with the Liens securing the Secured Notes, junior to the Liens securing the Secured Notes, the Existing LC Facility and such other Debt), provided
further that up to $75.0 million in principal amount of such Secured Debt (“Other Secured Debt”) is not subject to the equal and ratable security requirement set forth in this sentence. To the extent that the Borrower or any of
its Subsidiaries incurs any additional Debt permitted under this Section 8.1 (other than Other Secured Debt) that is secured by a Lien on the Collateral, such Liens shall be subject to the Collateral Trust Agreement. 

(b) The foregoing provisions of Section 8.1(a) shall not apply to: 

(i) Liens securing Permitted Credit Agreement Debt; 

(ii) Liens in favor of the Borrower or a Domestic Hospital Subsidiary; 

(iii) Liens existing on the date of this Agreement and disclosed on Schedule 8.1 (Existing Liens); 

(iv) Liens in favor of a government or governmental entity that: 

(A) secure Debt that is guaranteed by the government or governmental entity, or 

(B) secure Debt incurred to finance all or some of the purchase price or cost of construction of goods, products or facilities
produced under contract or subcontract for the government or governmental entity; 
 (v) Liens arising in connection with the
transfer of tax benefits in accordance with Section 168(f)(8) of the Internal Revenue Code of 1954 (or any similar provision of law from time to time in effect); provided, that such Liens (i) are incurred within 90 days (or any
longer period, not in excess of one year, as any such provision of law may from time to time permit) after the acquisition of the property or equipment subject to said Lien, (ii) do not extend to any other property or equipment, and
(iii) are solely for the purpose of said transfer of tax benefits; 

  
 -42- 

 (vi) Liens created in substitution of or as replacements for any Liens permitted
by clauses (i) to (v) set forth above; provided that the property encumbered by any substitute or replacement Lien is similar in nature and value to the property encumbered by the Lien that is being replaced, as
determined in good faith by a Responsible Officer of the Borrower; and 
 (vii) any extension, renewal or replacement (or
successive extensions, renewals or replacements), in whole or in part, of any Lien referred to in the foregoing clauses (i) to (vi) inclusive of any Debt secured thereby; provided that the principal amount of Debt
secured thereby shall not exceed the principal amount of Debt so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement Lien shall be limited to all or part of the same property that secured
the Lien extended, renewed or replaced (plus improvements on such property). 
 (c) The Borrower shall not permit the aggregate face amount
of obligations of the Borrower and its Subsidiaries in respect of letters of credit, bank guarantees, surety bonds and similar instruments that do not constitute Debt (including the Obligations) that are secured by Liens on any assets of the
Borrower or any of its Subsidiaries ranking pari passu or senior to the Liens, if any, on such assets securing the Obligations, to exceed $900,000,000 at any time outstanding. 

 

	 	Section 8.2	Sale and Lease-Back Transactions 

 (a) The Borrower covenants and agrees that
neither it nor any of its Subsidiaries will enter into any Sale and Lease-Back Transaction with another Person, other than the Borrower or any Guarantor, unless: 

(i) the Borrower or such Subsidiary could incur the Attributable Indebtedness in respect of such Sale and Lease-Back
Transaction secured by a Lien on the property to be leased in compliance with Section 8.1 (Liens); and 
 (ii)
the Borrower complies with Section 8.4 (Sale of Assets). 
 (b) Notwithstanding the provisions in Section 8.2(a), the
Borrower and any of its Subsidiaries may enter into any Sale and Lease-Back Transaction; provided that the aggregate Attributable Indebtedness in respect of all such Sale and Lease-Back Transactions does not exceed the greater of
(x) $650.0 million and (y) 5% of Consolidated Total Assets. 
  

	 	Section 8.3	Limitation on Issuance of Guarantees by Subsidiaries 

 The Borrower will not
permit any of its Subsidiaries to Guarantee any Debt of the Borrower, unless at the time of and after giving effect to the issuance of such Guarantee, the aggregate amount of all such guaranteed Debt (including the aggregate principal amount of
Secured Notes outstanding at such time) shall not exceed the greater of (x) $4.2 billion or (y) 5.0 times the aggregate amount of EBITDA for the most recent four consecutive Fiscal Quarters ending prior to the date of determination;
provided that, unless the Obligations are secured by substantially all the property and assets (other than accounts receivable and cash) of the Guarantors, the aggregate amount of all such Debt guaranteed by Guarantees that are senior to the
Guaranty shall not exceed the greater of (a) $2.6 billion and (b) 3.0 times the aggregate amount of EBITDA for the most recent four consecutive Fiscal Quarters ending prior to the date of determination. The foregoing restriction will not
prohibit the issuance of Guarantees by any of the 

  
 -43- 

 
Borrower’s Subsidiaries in respect of Permitted Credit Agreement Debt. For purposes of the foregoing restriction, Debt and EBITDA shall be calculated on a pro forma basis consistent with the
definition of “Secured Debt Ratio”. 
  

	 	Section 8.4	Sale of Assets 

 The Borrower will not, and will not permit any of its
Subsidiaries to, directly or indirectly, consummate any Asset Disposition except to the extent permitted under the Indentures and the Borrower shall undertake an asset sale offer with the proceeds of any such Asset Disposition to the extent required
under the Indentures. 
  

	 	Section 8.5	Fundamental Changes 

 No Loan Party shall merge or consolidate with or into any
other Person unless (i) except in the case of the Borrower, such merger or consolidation is in connection with a disposition not otherwise prohibited hereby following which such Loan Party shall no longer be a Subsidiary of the Borrower or
(ii) the surviving Person is a Loan Party organized under the laws of the United States or any State thereof and, if the surviving Person is not the Loan Party, such surviving Person expressly assumes all obligations of the Loan Party party
thereto under the Loan Documents. 
 ARTICLE IX 

EVENTS OF DEFAULT 

 

	 	Section 9.1	Events of Default 

 Each of the following events shall be an “Event of
Default”: 
 (a) the Borrower shall fail to pay any principal of any Loan when the same becomes due and payable; or 

(b) the Borrower shall fail to pay any interest on any Loan, any fee under any of the Loan Documents or any other Obligation
(other than one referred to in clause (a) above) and such non-payment continues for a period of three Business Days after the due date therefor; or 

(c) any representation or warranty made or deemed made by any Loan Party in any Loan Document or by any Loan Party (or any of
its officers) in connection with any Loan Document shall prove to have been incorrect in any material respect when made or deemed made; or 

(d) any Loan Party shall fail to perform or observe (i) any term, covenant or agreement contained in Article V
(Financial Covenant), Sections 6.1 (Financial Statements), 6.2 (Default Notices), 7.1 (Preservation of Corporate Existence, Etc.) (solely as it relates to the maintenance of the Borrower’s existence) or 7.10
(Additional Collateral and Guarantees) or Article VIII (Negative Covenants) or (ii) any other term, covenant or agreement contained in this Agreement or in any other Loan Document if such failure under this clause (ii)
shall remain unremedied for 30 days after the earlier of (A) the date on which a Responsible Officer of the Borrower becomes aware of such failure and (B) the date on which written notice thereof shall have been given to the Borrower by
the Administrative Agent or any Lender; or 
 (e) (i) Any Group Member shall fail to make any payment on any Debt of such
Group Member (other than the Obligations) or any guarantee obligation in respect of Debt of any 

  
 -44- 

 
other Person, and, in each case, such failure relates to Debt having an aggregate principal amount of $50,000,000 or more, when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise) and such failure continues after the applicable grace or notice period, if any, specified in the agreement governing such Debt, (ii) any other event shall occur or condition shall exist
under any agreement or instrument relating to any such Debt, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt or (iii) any such Debt shall become or be declared to be due and
payable, or be required to be prepaid or repurchased (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; or 

(f) (i) Any Loan Party shall generally not pay its debts as such debts become due, shall admit in writing its inability to pay
its debts generally or shall make a general assignment for the benefit of creditors, (ii) any proceeding shall be instituted by or against any Loan Party seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief or composition of it or its debts, under any Requirement of Law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the
appointment of a custodian, receiver, trustee or other similar official for it or for any substantial part of its property; provided, however, that, in the case of any such proceedings instituted against any Loan Party (but not
instituted by any Loan Party), either such proceedings shall remain undismissed or unstayed for a period of 60 days or more or any action sought in such proceedings shall occur or (iii) any Loan Party shall take any corporate action to
authorize any action set forth in clauses (i) and (ii) above; or 
 (g) one or more judgments or
orders (or other similar process) involving, (i) in the case of money judgments, an aggregate amount whose Dollar Equivalent exceeds $50,000,000, and (ii) in the case of non-monetary judgments, such judgments, in the aggregate, that would
result in a Material Adverse Effect, in each case, to the extent not covered by insurance (excluding insurance where the applicable insurer has disputed its obligations to pay thereunder), shall be rendered against one or more of the Borrower and
its Subsidiaries and such judgment, order or similar process shall continue unsatisfied and unstayed for a period of 30 days; or 

(h) an ERISA Event shall occur and the Dollar Equivalent of the amount of all liabilities and deficiencies resulting therefrom,
whether or not assessed, exceeds $50,000,000 in the aggregate; or 
 (i) any provision of any Loan Document after delivery
thereof shall for any reason fail or cease to be valid and binding on, or enforceable against, any Loan Party party thereto, or any Loan Party shall so state in writing; or 

(j) the Collateral Documents shall for any reason fail or cease to create a valid and enforceable Lien on any Collateral
purported to be covered thereby in an aggregate amount in excess of $5,000,000 or, except as permitted by the Loan Documents, such Lien shall fail or cease to be a perfected and second priority Lien, or any Loan Party shall so state in writing; or

 (k) there shall occur any Change of Control. 
  

	 	Section 9.2	Remedies 

 During the continuance of any Event of Default, the Administrative
Agent (a) may, and, at the request of the Requisite Lenders, shall, by notice to the Borrower declare that all or any portion of the Commitments be terminated, whereupon the obligation of each Lender to make any Loan shall immediately

  
 -45- 

 
terminate and (b) may, and, at the request of the Requisite Lenders, shall, by notice to the Borrower, declare the Loans, all interest thereon and all other amounts and Obligations payable
under this Agreement to be forthwith due and payable, whereupon the Loans, all such interest and all such amounts and Obligations shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrower; provided, however, that upon the occurrence of the Events of Default specified in Section 9.1(f) (Events of Default), (x) the Commitments of each Lender to make
Loans shall each automatically be terminated and (y) the Loans, all such interest and all such amounts and Obligations shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of
which are hereby expressly waived by the Borrower. In addition to the remedies set forth above, the Administrative Agent may exercise any remedies provided for by the Collateral Documents in accordance with the terms thereof or any other remedies
provided by applicable law. 
  

	 	Section 9.3	[Reserved] 

  

	 	Section 9.4	Rescission 

 If at any time after termination of the Commitments or acceleration
of the maturity of the Loans, the Borrower shall pay all arrears of interest and all payments on account of principal of the Loans that shall have become due otherwise than by acceleration (with interest on principal and, to the extent permitted by
law, on overdue interest, at the rates specified herein) and all Events of Default and Defaults (other than non-payment of principal of and accrued interest on the Loans due and payable solely by virtue of acceleration) shall be remedied or waived
pursuant to Section 11.1 (Amendments, Waivers, Etc.), then upon the written consent of the Requisite Loans and written notice to the Borrower, the termination of the Commitments or the acceleration and their consequences may be rescinded
and annulled; provided, however, that such action shall not affect any subsequent Event of Default or Default or impair any right or remedy consequent thereon. The provisions of the preceding sentence are intended merely to bind the
Lenders to a decision that may be made at the election of the Requisite Lenders, and such provisions are not intended to benefit the Borrower and do not give the Borrower the right to require the Lenders to rescind or annul any acceleration
hereunder, even if the conditions set forth herein are met. 
 ARTICLE X 

THE ADMINISTRATIVE AGENT 

 

	 	Section 10.1	Authorization and Action 

 (a) Each Lender hereby appoints Barclays as the
Administrative Agent hereunder and each Lender authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Administrative Agent
under such agreements and to exercise such powers as are reasonably incidental thereto. Without limiting the foregoing, each Lender hereby authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the
Loan Documents to which the Administrative Agent is a party, to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents and, in the case of the Collateral Documents, to act as agent and
representative for the Lenders and the other Secured Parties under such Collateral Documents. 
 (b) As to any matters not expressly
provided for by this Agreement and the other Loan Documents (including enforcement or collection), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting
(and shall be fully protected in so acting or refraining from acting) upon the instructions of the Requisite Lenders, 

  
 -46- 

 
and such instructions shall be binding upon all Lenders; provided, however, that the Administrative Agent shall not be required to take any action that (i) the Administrative
Agent in good faith believes exposes it to personal liability unless the Administrative Agent receives an indemnification satisfactory to it from the Lenders with respect to such action or (ii) is contrary to this Agreement or applicable law.
The Administrative Agent agrees to give to each Lender prompt notice of each notice given to it by any Loan Party pursuant to the terms of this Agreement or the other Loan Documents. 

(c) In performing its functions and duties hereunder and under the other Loan Documents, the Administrative Agent is acting solely on behalf
of the Lenders except to the limited extent provided in Section 2.7(c) (Evidence of Debt), and its duties are entirely administrative in nature. The Administrative Agent does not assume and shall not be deemed to have assumed any
obligation other than as expressly set forth herein and in the other Loan Documents or any other relationship as the agent, fiduciary or trustee of or for any Lender or holder of any other Obligation. The Administrative Agent may perform any of its
duties under any Loan Document by or through its agents or employees and may appoint sub-agents hereunder (including for purposes of the Register and for purposes of acting as Secured Debt Representative (as defined in the Collateral Trust
Agreement) for the Secured Parties under the Collateral Trust Agreement). No such sub-agent shall be entitled to the same protections as the Administrative Agent hereunder. The Administrative Agent shall have no liability as a result of any action
or inaction of any sub-agent, except to the extent the Administrative Agent was grossly negligent in selecting such sub-agent. Each Lender and the Administrative Agent hereby appoint The Bank of New York Mellon Trust Company, N.A. as the Collateral
Agent and the Junior Stock Lien Representative under the Collateral Documents and each Lender authorizes the Collateral Agent and the Junior Stock Lien Representative to take such action as collateral agent or junior stock lien representative, as
applicable, on its behalf and to exercise such powers under the Collateral Documents as are delegated to the Collateral Agent or the Junior Stock Lien Representative under such Collateral Documents and to exercise such powers as are reasonably
incidental thereto. 
 (d) In the event that Barclays or any of its Affiliates shall be or become an indenture trustee under the Trust
Indenture Act of 1939 (as amended, the “Trust Indenture Act”) in respect of any securities issued or guaranteed by any Loan Party, the parties hereto acknowledge and agree that any payment or property received in satisfaction of or
in respect of any Obligation of such Loan Party hereunder or under any other Loan Document by or on behalf of Barclays in its capacity as the Administrative Agent for the benefit of any Loan Party under any Loan Document (other than Barclays or an
Affiliate of Barclays) and which is applied in accordance with the Loan Documents shall be deemed to be exempt from the requirements of Section 311 of the Trust Indenture Act pursuant to Section 311(b)(3) of the Trust Indenture Act. 

(e) Notwithstanding anything to the contrary contained in this Agreement, the Arranger shall have no obligations or duties whatsoever under
this Agreement or any other Loan Document to any Loan Party, any Lender in its capacity as “Arranger,” and shall have no rights separate from its rights as a Lender. 

 

	 	Section 10.2	Administrative Agent’s Reliance, Etc. 

 None of the Administrative Agent, any
of its Affiliates or any of their respective directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it, him, her or them under or in connection with this Agreement or the other Loan Documents, except
for its, his, her or their own gross negligence or willful misconduct. Without limiting the foregoing, the Administrative Agent (a) may rely on the Register to the extent set forth in Section 2.7 (Evidence of Debt),
(b) may consult with legal counsel (including counsel to the Borrower or any other Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be

  
 -47- 

 
taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (c) makes no warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations made by or on behalf of any Group Member in or in connection with this Agreement or any other Loan Document, (d) shall not have any duty to ascertain or to inquire either as to the
performance or observance of any term, covenant or condition of this Agreement or any other Loan Document, as to the financial condition of any Loan Party or as to the existence or possible existence of any Default or Event of Default,
(e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the attachment, perfection or priority of any Lien created or purported to be created under or in
connection with, this Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto or thereto and (f) shall incur no liability under or in respect of this Agreement or any other Loan Document by acting upon
any notice, consent, certificate or other instrument or writing (which writing may be a telecopy or electronic mail) or any telephone message believed by it to be genuine and signed or sent by the proper party or parties. 

 

	 	Section 10.3	Posting of Approved Electronic Communications 

 (a) Each of the Lenders and each
Group Member agree that the Administrative Agent may, but shall not be obligated to, make the Approved Electronic Communications available to the Lenders by posting such Approved Electronic Communications on IntraLinksTM or a substantially
similar electronic platform chosen by the Administrative Agent to be its electronic transmission system (the “Approved Electronic Platform”). 

(b) Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and
policies implemented or modified by the Administrative Agent from time to time (including, as of the Effective Date, a dual firewall and a User ID/Password Authorization System) and the Approved Electronic Platform is secured through a
single-user-per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders and each Group Member acknowledges and agrees that the distribution of material through an
electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution. In consideration for the convenience and other benefits afforded by such distribution and for the other consideration
provided hereunder, the receipt and sufficiency of which is hereby acknowledged, each of the Lenders and each Group Member hereby approves distribution of the Approved Electronic Communications through the Approved Electronic Platform and
understands and assumes the risks of such distribution. 
 (c) The Approved Electronic Platform and the Approved Electronic Communications
are provided “as is” and “as available.” None of the Administrative Agent or any of its Affiliates or any of their respective officers, directors, employees, agents, advisors or representatives (the “Agent
Affiliates”) warrant the accuracy, adequacy or completeness of the Approved Electronic Communications or the Approved Electronic Platform and each expressly disclaims liability for errors or omissions in the Approved Electronic Platform and
the Approved Electronic Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from
viruses or other code defects, is made by the Agent Affiliates in connection with the Approved Electronic Platform or the Approved Electronic Communications. 

(d) Each of the Lenders and each Group Member agree that the Administrative Agent may, but (except as may be required by applicable law) shall
not be obligated to, store the Approved Electronic Communications on the Approved Electronic Platform in accordance with the Administrative Agent’s generally-applicable document retention procedures and policies. 

  
 -48- 

	 	Section 10.4	The Administrative Agent Individually 

 With respect to its Ratable Portion,
Barclays shall have and may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities as and to the extent set forth herein for any other Lender. The terms “Lenders,” “Requisite
Lenders” and any similar terms shall, unless the context clearly otherwise indicates, include, without limitation, the Administrative Agent in its individual capacity as a Lender or as one of the Requisite Lenders. Barclays and its
Affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, trust or other business with, any Loan Party as if Barclays were not acting as the Administrative Agent. 

 

	 	Section 10.5	Lender Credit Decision 

 Each Lender acknowledges that it shall, independently and
without reliance upon the Administrative Agent or any other Lender, conduct its own independent investigation of the financial condition and affairs of the Borrower and each other Loan Party in connection with the making and continuance of the
Loans. Each Lender also acknowledges that it shall, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement and other Loan Documents. Except for documents expressly required by any Loan Document to be transmitted by the Administrative Agent to the Lenders, the Administrative Agent shall
not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any Loan Party or any Affiliate of any Loan
Party that may come into the possession of the Administrative Agent or any Affiliate thereof or any employee or agent of any of the foregoing. 
  

	 	Section 10.6	Indemnification 

 Each Lender agrees to indemnify the Administrative Agent and
each of its Affiliates, and each of their respective directors, officers, employees, agents and advisors (to the extent not reimbursed by the Borrower), from and against such Lender’s aggregate Ratable Portion of any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements (including fees, expenses and disbursements of financial and legal advisors) of any kind or nature whatsoever that may be imposed on, incurred by,
or asserted against, the Administrative Agent or any of its Affiliates, directors, officers, employees, agents and advisors in any way relating to or arising out of this Agreement or the other Loan Documents or any action taken or omitted by the
Administrative Agent under this Agreement or the other Loan Documents; provided, however, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Administrative Agent’s or such Affiliate’s gross negligence or willful misconduct as determined by the final nonappealable judgment of a court of competent jurisdiction. Without limiting the
foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including fees, expenses and disbursements of financial and legal advisors) incurred by the Administrative
Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of its rights or responsibilities
under, this Agreement or the other Loan Documents, to the extent that the Administrative Agent is not reimbursed for such expenses by the Borrower or another Loan Party. Nothing herein shall limit the Borrower’s indemnification obligations set
forth in this Agreement. 

  
 -49- 

	 	Section 10.7	Successor Administrative Agent 

 The Administrative Agent may resign at any time
by giving written notice thereof to the Lenders and the Borrower. Upon any such resignation, the Requisite Lenders shall have the right to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by
the Requisite Lenders, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation, then the retiring Administrative Agent’s resignation shall nevertheless thereupon
become effective, and the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent, selected from among the Lenders. In either case, such appointment shall be subject to the prior written approval of the
Borrower (which approval may not be unreasonably withheld and shall not be required upon the occurrence and during the continuance of an Event of Default). Upon the acceptance of any appointment as Administrative Agent by a successor Administrative
Agent, such successor Administrative Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and
obligations under this Agreement and the other Loan Documents. Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary
to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents. After such resignation, the retiring Administrative Agent shall continue to have the benefit of this Article X as to any actions
taken or omitted to be taken by it while it was Administrative Agent under this Agreement and the other Loan Documents. 
  

	 	Section 10.8	Concerning the Collateral and the Collateral Documents 

 (a) Each Lender agrees
that any action taken by the Administrative Agent or the Requisite Lenders (or, where required by the express terms of this Agreement, a greater proportion of the Lenders) in accordance with the provisions of this Agreement or of the other Loan
Documents, and the exercise by the Administrative Agent or the Requisite Lenders (or, where so required, such greater proportion) of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall
be authorized and binding upon all of the Lenders and other Secured Parties. Without limiting the generality of the foregoing, the Administrative Agent shall have the sole and exclusive right and authority to (i) execute and deliver each
Collateral Document and accept delivery of each such agreement delivered by any Group Member, (ii) act as representative for the Lenders and the other Secured Parties for purposes of the perfection of all security interests and Liens created by
such agreements and all other purposes stated therein, (iii) manage, supervise and otherwise deal with the Collateral, (iv) take such action as is necessary or desirable to maintain the perfection and priority of the security interests and
Liens created or purported to be created by the Collateral Documents to secure the Obligations and (v) except as may be otherwise specifically restricted by the terms hereof or of any other Loan Document, exercise all remedies given to the
Administrative Agent, the Lenders and the other Secured Parties with respect to the Collateral under the Loan Documents relating thereto, applicable law or otherwise. 

(b) Each of the Lenders hereby consents to the release and hereby directs, in accordance with the terms hereof, the Administrative Agent to
release (or, in the case of clause (ii) below, release or subordinate) any Lien held for the benefit of the Lenders against any of the following: 

(i) all of the Collateral and all Loan Parties, upon termination of the Commitments and payment and satisfaction in full of all
Loans and all other Obligations that the Administrative Agent has been notified in writing are then due and payable; and 

(ii) any part of the Collateral sold or disposed of by a Loan Party to a Person that is not a Loan Party if such sale or
disposition is permitted by Section 8.4 (Sale of Assets) (or permitted pursuant to a waiver of or consent to a transaction otherwise prohibited by this Agreement). 

  
 -50- 

 Any Guarantor disposed of to a Person that is not a Loan Party, if such disposition is permitted by this
Agreement, shall be automatically released from any of its obligations under the Guaranty, Stock Pledge Agreement or any other Loan Document to which it is a party, unless either immediately before or after giving effect to such release a Default or
Event of Default has occurred and is continuing. 
 Each of the Lenders hereby directs the Administrative Agent to execute and deliver or file such
termination and partial release statements and do such other things as are necessary to release Liens, or otherwise evidence the release of obligations, to be released pursuant to this Section 10.8 promptly upon the effectiveness of any
such release. 
  

	 	Section 10.9	Withholding Taxes 

 To the extent required by any applicable laws, the
Administrative Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding Tax. Without limiting or expanding the provisions of Section 2.16 (Taxes), each Lender shall indemnify and hold harmless
the Administrative Agent against, within 10 days after written demand therefor, any and all Taxes and any and all related losses, claims, liabilities and expenses (including fees, charges and disbursements of any counsel for the Administrative
Agent) incurred by or asserted against the Administrative Agent by the IRS or any other Governmental Authority as a result of the failure of the Administrative Agent to properly withhold Tax from amounts paid to or for the account of any Lender for
any reason (including, without limitation, because the appropriate form was not delivered or not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption from, or
reduction of withholding Tax ineffective). A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative
Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document against any amount due the Administrative Agent under this Section 10.9. The agreements in this
Section 10.9 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of
all other Obligations. 
 ARTICLE XI 

MISCELLANEOUS 
  

	 	Section 11.1	Amendments, Waivers, Etc. 

 (a) No amendment or waiver of any provision of this
Agreement or any other Loan Document nor consent to any departure by any Loan Party therefrom shall in any event be effective with respect to this Agreement or the Obligations unless the same shall be in writing and signed by each of the Requisite
Lenders (or by the Administrative Agent with the consent of the Requisite Lenders) and the Borrower, and then any such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;
provided, however, that no amendment, waiver or consent shall, unless in writing and signed by each Lender directly affected thereby, in addition to the Requisite Lenders (or the Administrative Agent with the consent thereof), do any
of the following: 
 (i) waive any condition specified in Section 3.1 (Conditions to Effectiveness), except with
respect to a condition based upon another provision hereof, the waiver of which requires only the concurrence of the Requisite Lenders and, in the case of the conditions specified in Section 3.1 (Conditions to Effectiveness), subject to
the provisions of Section 3.2 (Determinations of Conditions); 

  
 -51- 

 (ii) increase or extend the Commitment of such Lender or subject such Lender to
any additional obligation; 
 (iii) extend the scheduled final maturity of any Loan owing to such Lender, or waive, reduce or
postpone any scheduled date fixed for the payment or reduction of principal or interest of any such Loan or fees owing to such Lender (it being understood that Section 2.9 (Mandatory Prepayments) does not provide for scheduled date fixed
for payment or for the reduction of such Lender’s Commitment); 
 (iv) reduce, or release the Borrower from its
obligations to repay, the principal amount of any Loan owing to such Lender (other than by the payment or prepayment thereof); 

(v) reduce the rate of interest on any Loan outstanding and owing to such Lender or any fee payable hereunder to such Lender;

 (vi) expressly subordinate any of the Obligations or any Liens securing the Obligations except in accordance with the
Collateral Trust Agreement and this Agreement; 
 (vii) postpone any scheduled date fixed for payment of interest or fees
owing to such Lender or waive any such payment; 
 (viii) change the aggregate Ratable Portions of Lenders required for any
or all Lenders to take any action hereunder; 
 (ix) release all or substantially all of the Collateral except as provided in
Section 10.8(b) (Concerning the Collateral and the Collateral Documents) or release the Borrower from its payment obligation to such Lender under this Agreement or the Notes owing to such Lender (if any) or release any Guarantor from its
obligations under the Guaranty except in connection with the sale or other disposition of a Guarantor (or all or substantially all of the assets thereof) permitted by this Agreement (or permitted pursuant to a waiver or consent of a transaction
otherwise prohibited by this Agreement); or 
 (x) amend Section 10.8(b) (Concerning the Collateral and the
Collateral Documents), Section 11.7 (Sharing of Payments, Etc.), this Section 11.1 or definition of any of the terms “Ratable Portion” or “Requisite Lenders”; 

and provided, further, that (1) no amendment, waiver or consent shall, unless in writing and signed by any Special Purpose Vehicle that has
been granted an option pursuant to Section 11.2(e) (Assignments and Participations), affect the grant or nature of such option or the right or duties of such Special Purpose Vehicle hereunder; (2) no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent under this Agreement or the other Loan Documents; (3) no
amendment, waiver or consent shall, unless in writing and signed by the Lenders required above to take such action, affect the rights or duties of such Lender under this Agreement or the other Loan Documents; and (4) the Administrative Agent
may, with the consent of the Borrower, amend, modify or supplement this Agreement to cure any omission, defect or inconsistency, so long as such amendment, modification or supplement does not adversely affect the rights of any Lender. 

  
 -52- 

 (b) The Administrative Agent may, but shall have no obligation to, with the written concurrence
of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on the
Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances. 
 (c) If, in
connection with any proposed amendment, modification, waiver or termination requiring the consent of all affected Lenders, the consent of Requisite Lenders is obtained but the consent of other Lenders whose consent is required is not obtained (any
such Lender whose consent is not obtained as described in this Section 11.1 being referred to as a “Non-Consenting Lender”), then, as long as the Lender acting as the Administrative Agent is not a Non-Consenting Lender,
at the Borrower’s request, any Eligible Assignee acceptable to the Administrative Agent shall have the right with the Administrative Agent’s consent and in the Administrative Agent’s sole discretion (but shall have no obligation) to
purchase from such Non-Consenting Lender, and such Non-Consenting Lender agrees that it shall, upon the Administrative Agent’s request, sell and assign to the Lender acting as the Administrative Agent or
such Eligible Assignee, all of the Commitments of such Non-Consenting Lender for an amount equal to the principal balance of all Loans held by the Non-Consenting Lender and all accrued and unpaid interest and fees with respect thereto through the
date of sale; provided, however, that such purchase and sale shall be recorded in the Register maintained by the Administrative Agent and shall not be effective until (x) the Administrative Agent shall have received from such
Eligible Assignee an agreement in form and substance satisfactory to the Administrative Agent and the Borrower whereby such Eligible Assignee shall agree to be bound by the terms hereof and (y) such Non-Consenting Lender shall have received
payments of all Loans held by it and all accrued and unpaid interest and fees with respect thereto through the date of the sale. Each Lender agrees that, if it becomes a Non-Consenting Lender, it shall execute and deliver to the Administrative Agent
an Assignment an Acceptance to evidence such sale and purchase and shall deliver to the Administrative Agent any Note (if the assigning Lender’s Loans are evidenced by a Note) subject to such Assignment and Acceptance; provided,
however, that the failure of any Non-Consenting Lender to execute an Assignment and Acceptance or deliver any Note shall not render such sale and purchase (and the corresponding assignment) invalid and such assignment shall be recorded in the
Register. 
  

	 	Section 11.2	Assignments and Participations 

 (a) Each Lender may sell, transfer, negotiate or
assign to one or more Eligible Assignees all or a portion of its rights and obligations hereunder (including all of its rights and obligations with respect to the Loans); provided, however, that (i) if any such assignment shall be
of the assigning Commitments, such assignment shall cover the same percentage of such Commitments, (ii) the aggregate amount being assigned pursuant to each such assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event (if less than the assignor’s entire interest) be less than $1,000,000 or an integral multiple of $100,000 in excess thereof, except, in either case, (A) with the consent of the Borrower and the
Administrative Agent or (B) if such assignment is being made to a Lender or an Affiliate or Approved Fund of such Lender and (iii) if such Eligible Assignee is not, prior to the date of such assignment, a Lender or an Affiliate or Approved
Fund of a Lender, such assignment shall be subject to the prior consent of the Administrative Agent and the Borrower (which consent of the Borrower shall not be unreasonably withheld or delayed); provided, however, that the Borrower
shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within 5 Business Days of having received notice thereof; and provided, further, that,
notwithstanding any other provision of this Section 11.2, the consent of the Borrower shall not be required for any assignment occurring when any Event of Default specified in Section 9.1(a), (b) or
(f) (Events of Default) shall have occurred and be continuing. 

  
 -53- 

 (b) The parties to each such assignment shall execute and deliver to the Administrative Agent,
for its acceptance and recording in the Register, an Assignment and Acceptance, together with any Note (if the assigning Lender’s Loans are evidenced by a Note) subject to such assignment. Upon the execution, delivery, acceptance and recording
in the Register of any Assignment and Acceptance and, other than in respect of assignments made pursuant to Section 2.17 (Substitution of Lenders) and Section 11.1(c) (Amendments, Waivers, Etc.), the receipt by the
Administrative Agent from the assignee of an assignment fee in the amount of $3,500 from and after the effective date specified in such Assignment and Acceptance, (i) the assignee thereunder shall become a party hereto and, to the extent that
rights and obligations under the Loan Documents have been assigned to such assignee pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender and (ii) the assignor thereunder shall, to the extent that rights and
obligations under this Agreement have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (except for those surviving the payment in full of the Obligations) and be released from its obligations under the Loan
Documents, other than those relating to events or circumstances occurring prior to such assignment (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under the
Loan Documents, such Lender shall cease to be a party hereto). 
 (c) The Administrative Agent shall maintain at its address referred to in
Section 11.8 (Notices, Etc.) a copy of each Assignment and Acceptance delivered to and accepted by it and shall record in the Register the names and addresses of the Lenders and the Commitments of each Lender. Any assignment pursuant to
this Section 11.2 shall not be effective until such assignment is recorded in the Register. 
 (d) Upon its receipt of an
Assignment and Acceptance executed by an assigning Lender and an assignee, the Administrative Agent shall, if such Assignment and Acceptance has been completed, (i) accept such Assignment and Acceptance, (ii) record or cause to be recorded
the information contained therein in the Register and (iii) give prompt notice thereof to the Borrower. 
 (e) In addition to the other
assignment rights provided in this Section 11.2, each Lender may do each of the following: 
 (i) grant to a
Special Purpose Vehicle the option to make all or any part of any Loan that such Lender would otherwise be required to make hereunder and the exercise of such option by any such Special Purpose Vehicle and the making of Loans pursuant thereto shall
satisfy (once and to the extent that such Loans are made) the obligation of such Lender to make such Loans thereunder; provided, however, that (x) nothing herein shall constitute a commitment or an offer to commit by such a
Special Purpose Vehicle to make Loans hereunder and no such Special Purpose Vehicle shall be liable for any indemnity or other Obligation (other than the making of Loans for which such Special Purpose Vehicle shall have exercised an option, and then
only in accordance with the relevant option agreement) and (y) such Lender’s obligations under the Loan Documents shall remain unchanged, such Lender shall remain responsible to the other parties for the performance of its obligations
under the terms of this Agreement and shall remain the holder of the Obligations for all purposes hereunder; and 
 (ii)
assign, as collateral or otherwise, any of its rights under this Agreement, whether now owned or hereafter acquired (including rights to payments of principal or interest on the Loans), to (A) without notice to or consent of the Administrative
Agent or the Borrower, any Federal Reserve Bank (pursuant to Regulation A of the Federal Reserve Board) or other central 

  
 -54- 

 
bank having jurisdiction over such Lender and (B) without consent of the Administrative Agent or the Borrower, (1) any holder of, or trustee for the benefit of, the holders of such
Lender’s securities and (2) any Special Purpose Vehicle to which such Lender has granted an option pursuant to clause (i) above; 

provided, however, that no such assignment or grant shall release such Lender from any of its obligations hereunder except as expressly provided
in clause (i) above and except, in the case of a subsequent foreclosure pursuant to an assignment as collateral, if such foreclosure is made in compliance with the other provisions of this Section 11.2 other than this
clause (e) or clause (f) below. Each party hereto acknowledges and agrees that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior debt of any such
Special Purpose Vehicle, such party shall not institute against, or join any other Person in instituting against, any Special Purpose Vehicle that has been granted an option pursuant to this clause (e) any bankruptcy, reorganization,
insolvency or liquidation proceeding (such agreement shall survive the payment in full of the Obligations). The terms of the designation of, or assignment to, such Special Purpose Vehicle shall not restrict such Lender’s ability to, or grant
such Special Purpose Vehicle the right to, consent to any amendment or waiver to this Agreement or any other Loan Document or to the departure by the Borrower from any provision of this Agreement or any other Loan Document without the consent of
such Special Purpose Vehicle except, as long as the Administrative Agent and the Lenders and other Secured Parties shall continue to, and shall be entitled to continue to, deal solely and directly with such Lender in connection with such
Lender’s obligations under this Agreement, to the extent any such consent would reduce the principal amount of, or the rate of interest on, any Obligations, amend this clause (e) or postpone any scheduled date of payment of such
principal or interest. Each Special Purpose Vehicle shall be entitled to the benefits of Sections 2.15 (Capital Adequacy) and 2.16 (Taxes) and of Section 2.14(d) (Illegality) as if it were such Lender (subject to the
requirements and limitations of such Sections, it being understood that any documentation required to be provided under Section 2.16(f) shall be provided to such Lender) as if it were a Lender; provided, however, that
anything herein to the contrary notwithstanding, the Borrower shall not, at any time, be obligated to make under Section 2.14(c) (Illegality), 2.15 (Capital Adequacy) or 2.16 (Taxes) to any such Special Purpose Vehicle and
any such Lender any payment in excess of the amount the Borrower would have been obligated to pay to such Lender in respect of such interest if such Special Purpose Vehicle had not been assigned the rights of such Lender hereunder; and
provided, further, that such Special Purpose Vehicle shall have no direct right to enforce any of the terms of this Agreement against the Borrower, the Administrative Agent or the other Lenders. 

(f) Each Lender may sell participations to one or more Persons (each, a “Participant”) in or to all or a portion of its
rights and obligations under the Loan Documents. The terms of such participation shall not, in any event, require the Participant’s consent to any amendments, waivers or other modifications of any provision of any Loan Documents, the consent to
any departure by any Loan Party therefrom, or to the exercising or refraining from exercising any powers or rights such Lender may have under or in respect of the Loan Documents (including the right to enforce the obligations of the Loan Parties),
except if any such amendment, waiver or other modification or consent would (i) reduce the amount, or postpone any date fixed for, any amount (whether of principal, interest or fees) payable to such Participant under the Loan Documents, to
which such Participant would otherwise be entitled under such participation or (ii) result in the release of all or substantially all of the Collateral other than in accordance with Section 10.8(b) (Concerning the Collateral and the
Collateral Documents). In the event of the sale of any participation by any Lender, (w) such Lender’s obligations under the Loan Documents shall remain unchanged, (x) such Lender shall remain solely responsible to the other
parties for the performance of such obligations, (y) such Lender shall remain the holder of such Obligations for all purposes of this Agreement and (z) the Borrower, the Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Each Participant shall be entitled to the benefits of Sections 2.15 (Capital Adequacy) and

  
 -55- 

 
2.16 (Taxes) (subject to the requirements and limitations of such Sections, it being understood that any documentation required to be provided under Section 2.16(f) shall be
provided to such Lender) as if it were a Lender; provided, however, that anything herein to the contrary notwithstanding, no Participant shall be entitled to receive any greater payment under Section 2.15 (Capital Adequacy) or
2.16 (Taxes) than such Lender would have been entitled to receive with respect to the participation sold to such Participant, except to the extent such entitlement to a greater payment results from a Change in Law after the sale of the
participation takes place. 
  

	 	Section 11.3	Costs and Expenses 

 (a) The Borrower agrees upon demand to pay, or reimburse the
Administrative Agent and the Arranger for, all of the Administrative Agent’s or the Arranger’s, as the case may be, reasonable internal and external audit, legal, appraisal, valuation, filing, document duplication and reproduction and
investigation expenses and for all other reasonable documented out-of-pocket costs and expenses of every type and nature (including, without limitation, the reasonable fees, expenses and disbursements of the Administrative Agent’s and
Arranger’s counsel, Cahill Gordon & Reindel LLP, one local legal counsel in each relevant jurisdiction, auditors, accountants, appraisers, field examiners, printers, insurance and environmental advisors, and other
consultants and agents) incurred by the Administrative Agent in connection with any of the following: (i) the Administrative Agent’s audit and investigation of the Group Members in connection with the preparation, negotiation or execution
of any Loan Document or the Administrative Agent’s periodic audits of the Group Members, as the case may be, (ii) the preparation, negotiation, execution or interpretation of this Agreement (including, without limitation, the satisfaction
or attempted satisfaction of any condition set forth in Article III (Conditions Precedent)), any Loan Document or any proposal letter or commitment letter issued in connection therewith, or the making of the Loans hereunder,
(iii) the creation, perfection or protection of the Liens under any Loan Document (including any reasonable fees, disbursements and expenses for local counsel in various jurisdictions), (iv) the ongoing administration of this Agreement and
the Loans, including consultation with attorneys in connection therewith and with respect to the Administrative Agent’s rights and responsibilities hereunder and under the other Loan Documents, (v) the protection, collection or enforcement
of any Obligation or the enforcement of any Loan Document, (vi) the commencement, defense or intervention in any court proceeding relating in any way to the Obligations, any Loan Party, any of the Borrower’s Subsidiaries, this Agreement or
any other Loan Document, (vii) the response to, and preparation for, any subpoena or request for document production with which the Administrative Agent is served or deposition or other proceeding in which the Administrative Agent is called to
testify, in each case, relating in any way to the Obligations, any Loan Party, any of the Borrower’s Subsidiaries, this Agreement or any other Loan Document or (viii) any amendment, consent, waiver, assignment, restatement, or supplement
to any Loan Document or the preparation, negotiation and execution of the same. The foregoing notwithstanding, unless an Event of Default shall have occurred and be continuing, the Borrower shall only be obligated to reimburse the Administrative
Agent and Lenders for two audits and/or appraisals in any Fiscal Year. 
 (b) The Borrower further agrees to pay or reimburse the
Administrative Agent and each of the Lenders upon demand for all out-of-pocket costs and expenses, including reasonable attorneys’ fees (including allocated costs of internal counsel and costs of settlement), incurred by the Administrative
Agent, such Lenders in connection with any of the following: (i) in enforcing any Loan Document or Obligation or any security therefor or exercising or enforcing any other right or remedy available by reason of an Event of Default, (ii) in
connection with any refinancing or restructuring of the credit arrangements provided hereunder in the nature of a “work-out” or in any insolvency or bankruptcy proceeding, (iii) in commencing, defending or intervening in any
litigation or in filing a petition, complaint, answer, motion or other pleadings in any legal proceeding relating to the Obligations, any Loan Party, any of the Borrower’s Subsidiaries and related to or arising out of the transactions
contemplated hereby or by any other Loan Document or (iv) in taking any other action in or with respect to any suit or proceeding (bankruptcy or otherwise) described in clause (i), (ii) or (iii) above. 

  
 -56- 

	 	Section 11.4	Indemnities 

 (a) The Borrower agrees to indemnify and hold harmless the
Administrative Agent, the Arranger, each Lender and each of their respective Affiliates, and each of the directors, officers, employees, agents, trustees, representatives, attorneys, consultants and advisors of or to any of the foregoing (including
those retained in connection with the satisfaction or attempted satisfaction of any condition set forth in Article III (Conditions Precedent)) (each such Person being an “Indemnitee”) from and against any and all claims,
damages, liabilities, obligations, losses, penalties, actions, judgments, suits, costs, disbursements and expenses, joint or several, of any kind or nature (including reasonable fees, disbursements and expenses of financial and legal advisors to any
such Indemnitee) that may be imposed on, incurred by or asserted against any such Indemnitee in connection with or arising out of any investigation, litigation or proceeding, whether or not such investigation, litigation or proceeding is brought by
any such Indemnitee or any of its directors, security holders or creditors or any such Indemnitee, director, security holder or creditor is a party thereto, whether direct, indirect, or consequential and whether based on any federal, state or local
law or other statutory regulation, securities or commercial law or regulation, or under common law or in equity, or on contract, tort or otherwise, in any manner relating to or arising out of this Agreement, any other Loan Document, any Obligation
or any act, event or transaction related or attendant to any thereof, or the use or intended use of the proceeds of the Loans or in connection with any investigation of any potential matter covered hereby (collectively, the “Indemnified
Matters”); provided, however, that the Borrower shall not have any liability under this Section 11.4 to an Indemnitee with respect to any Indemnified Matter that has resulted primarily from the gross negligence or
willful misconduct of that Indemnitee, as determined by a court of competent jurisdiction in a final non-appealable judgment or order. Without limiting the foregoing, “Indemnified Matters” include (i) all Environmental
Liabilities and Costs arising from or connected with the past, present or future operations of any Group Member involving any property subject to a Collateral Document, or damage to real or personal property or natural resources or harm or injury
alleged to have resulted from any Release of Contaminants on, upon or into such property or any contiguous real estate, (ii) any costs or liabilities incurred in connection with any Remedial Action concerning any Group Member, (iii) any
costs or liabilities incurred in connection with any Environmental Lien and (iv) any costs or liabilities incurred in connection with any other matter under any Environmental Law, including the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 (49 U.S.C. § 9601 et seq.) and applicable state property transfer laws, whether, with respect to any such matter, such Indemnitee is a mortgagee pursuant to any leasehold mortgage, a mortgagee in
possession, the successor in interest to any Group Member, or the owner, lessee or operator of any property of any Group Member by virtue of foreclosure, except, with respect to those matters referred to in clauses (i), (ii),
(iii) and (iv) above, to the extent (x) incurred following foreclosure by the Administrative Agent, the Arranger, any Lender, or the Administrative Agent, the Arranger, any Lender having become the successor in interest
to any Group Member and (y) attributable solely to acts of the Administrative Agent, the Arranger, such Lender or any agent on behalf of the Administrative Agent, the Arranger or such Lender. 

(b) The Borrower shall indemnify the Administrative Agent, the Arranger, the Lender for, and hold the Administrative Agent, the Lenders
harmless from and against, any and all claims for brokerage commissions, fees and other compensation made against the Administrative Agent, the Arranger, the Lenders for any broker, finder or consultant with respect to any agreement, arrangement or
understanding made by or on behalf of any Loan Party or any of its Subsidiaries in connection with the transactions contemplated by this Agreement. 

  
 -57- 

 (c) The Borrower, at the request of any Indemnitee, shall have the obligation to defend against
any investigation, litigation or proceeding or requested Remedial Action, in each case contemplated in clause (a) above, and the Borrower, in any event, may participate in the defense thereof with legal counsel of the Borrower’s
choice. In the event that such Indemnitee requests the Borrower to defend against such investigation, litigation or proceeding or requested Remedial Action, the Borrower shall promptly do so and such Indemnitee shall have the right to have legal
counsel of its choice participate in such defense. No action taken by legal counsel chosen by such Indemnitee in defending against any such investigation, litigation or proceeding or requested Remedial Action, shall vitiate or in any way impair the
Borrower’s obligation and duty hereunder to indemnify and hold harmless such Indemnitee. 
 (d) The Borrower agrees that any
indemnification or other protection provided to any Indemnitee pursuant to this Agreement (including pursuant to this Section 11.4) or any other Loan Document shall (i) survive payment in full of the Obligations and (ii) inure
to the benefit of any Person that was at any time an Indemnitee under this Agreement or any other Loan Document. 
  

	 	Section 11.5	Limitation of Liability 

 (a) The Borrower agrees that no Indemnitee shall have
any liability (whether in contract, tort or otherwise) to any Loan Party or any of their respective Subsidiaries or any of their respective equity holders or creditors for or in connection with the transactions contemplated hereby and in the other
Loan Documents, except to the extent such liability is determined in a final non-appealable judgment by a court of competent jurisdiction to have resulted primarily from such Indemnitee’s gross negligence or willful misconduct. In no event,
however, shall any Indemnitee be liable on any theory of liability for any special, indirect, consequential or punitive damages (including, without limitation, any loss of profits, business or anticipated savings). The Borrower hereby waives,
releases and agrees (each for itself and on behalf of its Subsidiaries) not to sue upon any such claim for any special, indirect, consequential or punitive damages, whether or not accrued and whether or not known or suspected to exist in its favor.

 (b) IN NO EVENT SHALL ANY AGENT
AFFILIATE HAVE ANY LIABILITY TO ANY LOAN PARTY, LENDER OR ANY OTHER
PERSON FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT OR
CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY OR ANY AGENT
AFFILIATE’S TRANSMISSION OF APPROVED ELECTRONIC COMMUNICATIONS THROUGH THE INTERNET
OR ANY USE OF THE APPROVED ELECTRONIC PLATFORM, EXCEPT TO THE EXTENT
SUCH LIABILITY OF ANY AGENT AFFILIATE IS FOUND IN A FINAL
NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE
RESULTED PRIMARILY FROM SUCH AGENT AFFILIATE’S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT. 
  

	 	Section 11.6	Right of Set-off 

 Upon the occurrence and during the continuance of any
Event of Default and so long as the Requisite Lenders have requested that the Administrative Agent declare the Obligations to be immediately due and payable pursuant to Section 9.2 (Remedies), or the Obligations have become immediately
due and payable without notice pursuant to Section 9.2 (Remedies), then each Lender and each Affiliate of a Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at any time held and other Obligations at any time owing by such Lender or its Affiliates to or for the credit or the account of any Group Member against any and all of the
Obligations now or hereafter existing whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and even though such Obligations may be unmatured. Each Lender agrees promptly to notify the Borrower after
any such set-off and application made by such Lender or its Affiliates; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender under this
Section 11.6 are in addition to the other rights and remedies (including other rights of set-off) that such Lender may have. 

  
 -58- 

	 	Section 11.7	Sharing of Payments, Etc. 

 (a) If any Lender (directly or through an
Affiliate thereof) obtains any payment (whether voluntary, involuntary, through the exercise of any right of set-off or otherwise) of the Loans owing to it, any interest thereon, fees in respect thereof or amounts due pursuant to
Section 11.3 (Costs and Expenses) or 11.4 (Indemnities) (other than payments pursuant to Section 2.14 (Special Provisions Governing Eurodollar Rate Loans), 2.15 (Capital Adequacy) or 2.16 (Taxes)) or otherwise
receives any Collateral or any “Proceeds” (as defined in the Stock Pledge Agreement) of Collateral (other than payments pursuant to Section 2.14 (Special Provisions Governing Eurodollar Rate Loans), 2.15 (Capital Adequacy) or
2.16 (Taxes)) (in each case, whether voluntary, involuntary, through the exercise of any right of set-off (including pursuant to Section 11.6 (Right of Set-off) or otherwise)) in excess of its Ratable Portion of all payments of
such Obligations obtained by all the Lenders, such Lender (a “Purchasing Lender”) shall forthwith purchase from the other Lenders (each, a “Selling Lender”) such participations in their Loans or other Obligations as
shall be necessary to cause such Purchasing Lender to share the excess payment ratably with each of them. 
 (b) If all or any
portion of any payment received by a Purchasing Lender is thereafter recovered from such Purchasing Lender, such purchase from each Selling Lender shall be rescinded and such Selling Lender shall repay to the Purchasing Lender the purchase price to
the extent of such recovery together with an amount equal to such Selling Lender’s ratable share (according to the proportion of (i) the amount of such Selling Lender’s required repayment in relation to (ii) the total amount so
recovered from the Purchasing Lender) of any interest or other amount paid or payable by the Purchasing Lender in respect of the total amount so recovered. 

(c) The Borrower agrees that any Purchasing Lender so purchasing a participation from a Selling Lender pursuant to this
Section 11.7 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the
amount of such participation. 
  

	 	Section 11.8	Notices, Etc. 

 (a) Addresses for Notices. All notices, demands,
requests, consents and other communications provided for in this Agreement shall be given in writing, or by any telecommunication device capable of creating a written record (including electronic mail), and addressed to the party to be notified as
follows: 
 (i) if to the Borrower: 

TENET HEALTHCARE CORPORATION 

1445 Ross Avenue, Suite 1400 

Dallas, Texas 75202 
 Attention:
Chief Financial Officer 
 Telecopy no: (469) 893-3246 

E-Mail Address: Dan.Cancelmi@tenethealth.com 

Attention: Treasurer 
 Telecopy
no: (469) 893-3133 
 E-Mail Address: Tyler.Murphy@tenethealth.com 

  
 -59- 

 Attention: Assistant General Counsel 

Telephone no: (469) 893-6733 

E-Mail Address: Paul.Castanon@tenethealth.com 

with a copy to: 
 Gibson,
Dunn & Crutcher LLP 
 200 Park Avenue 

New York, New York 10166 

Attention: Aaron F. Adams 

Telephone no: (212) 351-2494 

E-Mail Address: afadams@gibsondunn.com 

(ii) if to any Lender, at its Applicable Lending Office specified opposite its name on Schedule II (Applicable Lending
Offices and Addresses for Notices) or on the signature page of any applicable Assignment and Acceptance; and 
 (iii) if
to the Administrative Agent: 
 BARCLAYS BANK PLC 

745 Seventh Avenue 
 New York,
New York 10019 
 Attn: Mathew Cybul 

Telephone: (212) 526-5851 

Telefax: (212) 526-5115 

E-mail: mathew.cybul@barclays.com / ltmny@barclays.com 

With a copy to: 

BARCLAYS BANK PLC 

1301 Sixth Avenue 
 New York,
New York 10019 
 Attn: Edward Pan 

Telephone: (212) 320-0152 

Telefax: (917) 522-0569 

E-mail: xraUSLoanOps5@barclays.com / Edward.pan@barclayscapital.com 

or at such other address as shall be notified in writing (x) in the case of the Borrower and the Administrative Agent, to the other parties and
(y) in the case of all other parties, to the Borrower and the Administrative Agent. 
 (b) Effectiveness of Notices. All
notices, demands, requests, consents and other communications described in clause (a) above shall be effective (i) if delivered by hand, including any overnight courier service, upon personal delivery, (ii) if delivered by
mail, when deposited in the mails, (iii) if delivered by posting to an Approved Electronic Platform, an Internet website or a similar telecommunication device requiring that a user have prior access to such Approved Electronic Platform, website
or other device (to the extent permitted by Section 10.3 (Posting of Approved Electronic Communications) to be delivered thereunder), when such notice, demand, request, consent and other communication shall have been made generally
available on such Approved Electronic Platform, Internet website or similar device to the class of Person being notified (regardless of whether any such Person must accomplish, and whether or not any such Person shall have accomplished, any action
prior to obtaining access to such 

  
 -60- 

 
items, including registration, disclosure of contact information, compliance with a standard user agreement or undertaking a duty of confidentiality) and such Person has been notified that such
communication has been posted to the Approved Electronic Platform and (iv) if delivered by electronic mail or any other telecommunications device, when transmitted to an electronic mail address (or by another means of electronic delivery) as
provided in clause (a) above; provided, however, that notices and communications to the Administrative Agent pursuant to Article II (The Commitments and Credit Extensions) or Article X (The Administrative Agent)
shall not be effective until received by the Administrative Agent. 
 (c) Use of Electronic Platform. Notwithstanding
clauses (a) and (b) above (unless the Administrative Agent requests that the provisions of clause (a) and (b) above be followed) and any other provision in this Agreement or any other Loan Document
providing for the delivery of any Approved Electronic Communication by any other means the Loan Parties shall deliver all Approved Electronic Communications to the Administrative Agent by properly transmitting such Approved Electronic Communications
in an electronic/soft medium in a format acceptable to the Administrative Agent at the electronic mail address (or similar means of electronic delivery) as the Administrative Agent may notify the Borrower from time to time. Nothing in this
clause (c) shall prejudice the right of the Administrative Agent or any Lender to deliver any Approved Electronic Communication to any Loan Party in any manner authorized in this Agreement or to request that the Borrower effect delivery
in such manner. 
  

	 	Section 11.9	No Waiver; Remedies 

 No failure on the part of any Lender or the Administrative
Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  

	 	Section 11.10	Binding Effect 

 This Agreement shall become effective when it shall have
been executed by the Borrower and the Administrative Agent and when the Administrative Agent shall have been notified by each Lender that such Lender has executed it and thereafter shall be binding upon and inure solely to the benefit of the
Borrower, the Administrative Agent and each Lender and, in each case, their respective successors and assigns; provided, however, that the Borrower shall not have the right to assign its rights hereunder or any interest herein without
the prior written consent of the Lenders. 
  

	 	Section 11.11	Governing Law 

 This Agreement and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in accordance with, the law of the State of New York. 
  

	 	Section 11.12	Submission to Jurisdiction; Service of Process 

 (a) The Borrower
hereby irrevocably and unconditionally: 
 (i) submits for itself and its property in any legal action or proceeding relating
to this Agreement or any other Loan Document to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York, the courts of the United States
for the Southern District of New York, and appellate courts from any thereof; 

  
 -61- 

 (ii) consents that any such action or proceeding will be brought in such courts
and waives trial by jury and any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the
same; 
 (iii) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address set forth in Section 11.8 (Notices, Etc.) or at such other address of which the Administrative Agent shall have been notified
pursuant thereto; and 
 (iv) agrees that nothing herein shall affect the right to effect service of process in any other
manner permitted by law or shall limit the right to sue in any other jurisdiction. 
 (b) If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due hereunder in Dollars into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal
banking procedures the Administrative Agent could purchase Dollars with such other currency at the spot rate of exchange quoted by the Administrative Agent at 11:00 a.m. (New York time) on the Business Day preceding that on which final judgment is
given, for the purchase of Dollars, for delivery two Business Days thereafter. 
  

	 	Section 11.13	Waiver of Jury Trial 

 EACH OF THE
ADMINISTRATIVE AGENT, THE LENDERS AND THE BORROWER IRREVOCABLY WAIVES TRIAL BY
JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT. 
  

	 	Section 11.14	Marshaling; Payments Set Aside 

 Neither the Administrative Agent nor any Lender
shall be under any obligation to marshal any assets in favor of the Borrower or any other party or against or in payment of any or all of the Obligations. To the extent that the Borrower makes a payment or payments to the Administrative Agent, the
Lenders or any such Person receives payment from the proceeds of the Collateral or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, right and
remedies therefor, shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
  

	 	Section 11.15	Section Titles 

 The section titles contained in this Agreement are and
shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto, except when used to reference a section. Any reference to the number of a clause, sub-clause or subsection hereof
immediately followed by a reference in parenthesis to the title of the Section containing such clause, sub-clause or subsection is a reference to such clause, sub-clause or subsection and not to the entire Section; provided, however,
that, in case of direct conflict between the reference to the title and the reference to the number of such Section, the reference to the title shall govern absent manifest error. If any reference to the number of a Section (but not to any clause,
sub-clause or subsection thereof) is followed immediately by a reference in parenthesis to the title of a Section, the title reference shall govern in case of direct conflict absent manifest error. 

  
 -62- 

	 	Section 11.16	Execution in Counterparts 

 This Agreement may be executed in any number of
counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Signature pages may be detached from
multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document. Delivery of an executed signature page of this Agreement by facsimile transmission, electronic mail or by posting on
the Approved Electronic Platform shall be as effective as delivery of a manually executed counterpart hereof. A set of the copies of this Agreement signed by all parties shall be lodged with the Borrower and the Administrative Agent. 

 

	 	Section 11.17	Entire Agreement 

 This Agreement, together with all of the other Loan Documents
and all certificates and documents delivered hereunder or thereunder, embodies the entire agreement of the parties and supersedes all prior agreements and understandings relating to the subject matter hereof. In the event of any conflict between the
terms of this Agreement and any other Loan Document, the terms of this Agreement shall govern. 
  

	 	Section 11.18	Confidentiality 

 Each of the Administrative Agent and the Lenders agree to
maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective managers, administrators, trustees, partners, directors, officers,
employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential),
(b) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions at least as restrictive as those of this Section 11.18, to (i) any assignee of
or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective party (or its managers, administrators, trustees, partners, directors, officers,
employees, agents, advisors and other representatives) to any swap or derivative or similar transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (iii) any rating
agency, or (iv) the CUSIP Service Bureau or any similar organization, (g) with the consent of the Borrower or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this
Section 11.18 or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. 

For purposes of this Section 11.18, “Information” means all information received from the Borrower or any of its
Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender on a nonconfidential basis prior to disclosure by the
Borrower or any of its Subsidiaries; provided, however, that, in the case of information received from the Borrower or any of its Subsidiaries after the  

  
 -63- 

 
date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this
Section 11.18 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential
information. 
  

	 	Section 11.19	Patriot Act Notice 

 Each Lender subject to the Patriot Act hereby notifies the
Borrower that, pursuant to the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower and the other Loan Parties, including the name and address of the Borrower and the other Loan Parties and other
information that will allow such Lender to identify the Borrower and the other Loan Parties in accordance with the Patriot Act. 
  

	 	Section 11.20	No Lender Parties Implied Duties 

 The Administrative Agent, the Arranger,
each Lender and each of their respective Affiliates (for the purpose of this Section 11.20 each a “Lender Party” and, collectively the “Lender Parties”), may have economic interests that conflict with
those of the Loan Parties, their stockholders and/or their affiliates. Each Loan Party agrees that nothing in this Agreement or any of the other Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or
fiduciary or other implied duty between any Lender Party, on the one hand, and such Loan Party, its stockholders or its Affiliates, on the other. The Loan Parties acknowledge and agree that (i) the transactions contemplated by this Agreement
and the other Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lender Parties, on the one hand, and the Loan Parties, on the other, and (ii) in
connection therewith and with the process leading thereto, (x) no Lender Party has assumed an advisory or fiduciary responsibility in favor of any Loan Party, its stockholders or its Affiliates with respect to the transactions contemplated
hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender Party has advised, is currently advising or will advise any Loan Party, its stockholders or its Affiliates on
other matters) or any other obligation to any Loan Party except the obligations expressly set forth in the Loan Documents and (y) each Lender Party is acting solely as principal and not as the agent or fiduciary of any Loan Party, its
management, stockholders, creditors or any other Person. Each Loan Party acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent
judgment with respect to such transactions and the process leading thereto. Each Loan Party agrees that it will not claim that any Lender Party has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to such Loan
Party, in connection with such transaction or the process leading thereto. 
 [SIGNATURE PAGES
FOLLOW] 

  
 -64- 

 IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written. 
  

					
	TENET HEALTHCARE CORPORATION,
	as Borrower
		
	By:		 /s/ Tyler Murphy

			Name:		Tyler C. Murphy
			Title:		Vice President and Treasurer

  
 [Signature Page to
Interim Loan Agreement] 

 
					
	BARCLAYS BANK PLC,
	as Administrative Agent and Lender
		
	By:		 /s/ Craig J. Malloy

			Name:		Craig J. Malloy
			Title:		Director

  
 [Signature Page to
Interim Loan Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}]]