Document:

EX-10.6

 Exhibit 10.6 

EXECUTION VERSION 

JOINDER AGREEMENT 
 This
Joinder Agreement is dated as of April 1, 2015 (this “Agreement”), by and among each of the financial institutions set forth on Schedule A annexed hereto (each a “Series F-1 New Term Loan Lender” and
collectively the “Series F-1 New Term Loan Lenders”), each of the financial institutions set forth on Schedule B annexed hereto (each a “Series F-2 New Term Loan Lender” and collectively the “Series F-2 New
Term Loan Lenders”; collectively, with the Series F-1 New Term Loan Lenders, the “New Term Loan Lenders” and each a “New Term Loan Lender”), Valeant Pharmaceuticals International, Inc., a corporation
continued under the laws of the Province of British Columbia (“Borrower”), the undersigned subsidiaries of Borrower and Barclays Bank PLC (“Barclays”), as Administrative Agent and Collateral Agent. 

RECITALS: 

WHEREAS, reference is hereby made to the Third Amended and Restated Credit and Guaranty Agreement, dated as of February 13, 2012,
as amended by Amendment No. 1, dated as of March 6, 2012, by Amendment No. 2, dated as of September 10, 2012, by Amendment No. 3, dated as of January 24, 2013, by Amendment No. 4, dated as of February 21,
2013, by Amendment No. 5, dated as of June 6, 2013, by Amendment No. 6, dated as of June 26, 2013, by Amendment No. 7, dated as of September 17, 2013, by Amendment No. 8, dated as of December 20, 2013, by the
Successor Agent Agreement and Amendment No. 9, dated as of January 8, 2015, by Amendment No. 10, dated as of March 5, 2015, as further supplemented by the Joinder Agreement, dated as of June 14, 2012, by the Joinder
Agreement, dated as of July 9, 2012, by the Joinder Agreement, dated as of September 11, 2012, by the Joinder Agreement dated as of October 2, 2012, by the Joinder Agreement, dated as of December 11, 2012, by the Joinder
Agreements, each dated as of August 5, 2013, by the Joinder Agreements, each dated as of February 6, 2014, and by the Joinder Agreements, each dated as of January 22, 2015 (as it may be amended, restated, replaced, supplemented or
otherwise modified from time to time, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined), among Borrower, certain Subsidiaries of Borrower, as Guarantors, the
Lenders party thereto from time to time, Goldman Sachs Lending Partners LLC (“GSLP”), J.P. Morgan Securities LLC and Morgan Stanley Senior Funding, Inc. (“Morgan Stanley”), as Joint Lead Arrangers and Joint
Bookrunners, JPMorgan Chase Bank, N.A. (“JPMorgan”) and Morgan Stanley, as Co-Syndication Agents, JPMorgan, as Issuing Bank, Barclays (as successor to GSLP), as Administrative Agent and Collateral Agent, and the other Agents party
thereto; 
 WHEREAS, subject to the terms and conditions of the Credit Agreement, Borrower may obtain New Revolving Loan Commitments
and/or New Term Loan Commitments by entering into one or more Joinder Agreements with the New Term Loan Lenders; and 
 WHEREAS,
pursuant to Section 2.25 of the Credit Agreement, the Credit Agreement may, without the consent of any other Lenders, be amended as may be necessary or appropriate, in the opinion of the Administrative Agent, to give effect to the provisions of
Section 2.25 of the Credit Agreement. 
 NOW, THEREFORE, in consideration of the premises and agreements, provisions and
covenants herein contained, the parties hereto agree as follows: 
 Each New Term Loan Lender (i) confirms that it has received a copy
of the Credit Agreement and the other Credit Documents, together with copies of the financial statements referred to 

 
therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement; (ii) agrees that it will,
independently and without reliance upon the Administrative Agent or any other Lender or Agent 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 the Credit Agreement; (iii) appoints and authorizes Administrative Agent and each other Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Credit Documents as are
delegated to Administrative Agent or such other Agent, as the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender. 
 Section 1. Series F-1 Tranche B Term
Loans 
 (i) Each Series F-1 New Term Loan Lender hereby commits to provide its respective New Term Loan Commitment (each a
“Series F-1 Tranche B Term Loan Commitment” and, collectively, the “Series F-1 Tranche B Term Loan Commitments”) as set forth on Schedule A annexed hereto on the terms and subject to the conditions set forth
below: 
 (ii) Applicable Margin. The Applicable Margin for each New Term Loan in respect of the Series F-1 Tranche B Term Loan
Commitments made pursuant to this Agreement (each a “Series F-1 Tranche B Term Loan”) shall mean initially, as of any date of determination, (A) with respect to Series F-1 Tranche B Term Loans that are Eurodollar Rate Loans,
3.25% per annum, and (B) with respect to Series F-1 Tranche B Term Loans that are Base Rate Loans, 2.25% per annum. From and after the delivery by the Borrower to the Administrative Agent of financial statements for the first full
Fiscal Quarter ended after the date hereof, the Applicable Margin for each Series F-1 Tranche B Term Loan shall mean the percentages per annum set forth in the table below, based upon the Secured Leverage Ratio of Borrower, as of the last day of the
most recently ended Fiscal Quarter for which financial statements were required to have been delivered pursuant to Section 5.1(a) or (b) of the Credit Agreement: 
  

											
	 Pricing

Level
	  	 Secured Leverage Ratio
	  	Eurodollar
Rate Loans	 	 	Base Rate
Loans	 
	I	  	> 1.75 to 1.0	  	 	3.25	% 	 	 	2.25	% 
	III	  	< 1.75 to 1.0	  	 	3.00	% 	 	 	2.00	% 

 (iii) Principal Payments. Borrower shall make principal payments on the Series F-1 Tranche B Term Loans
in installments on the dates and in the amounts equal to the percentage set forth below of an amount equal to the aggregate principal amount of Series F-1 Tranche B Term Loans outstanding as of the date hereof: 

 

					
	 Amortization Date
	  	Series F-1 Tranche B Term
Loan Installments	 
	 June 30, 2015
	  	 	0.25	% 
	 September 30, 2015
	  	 	0.25	% 
	 December 31, 2015
	  	 	0.25	% 
	 March 31, 2016
	  	 	0.25	% 
	 June 30, 2016
	  	 	0.25	% 
	 September 30, 2016
	  	 	0.25	% 
	 December 31, 2016
	  	 	0.25	% 

  
 -2- 

					
	 Amortization Date
	  	Series F-1 Tranche B Term
Loan Installments	 
	 March 31, 2017
	  	 	0.25	% 
	 June 30, 2017
	  	 	0.25	% 
	 September 30, 2017
	  	 	0.25	% 
	 December 31, 2017
	  	 	0.25	% 
	 March 31, 2018
	  	 	0.25	% 
	 June 30, 2018
	  	 	0.25	% 
	 September 30, 2018
	  	 	0.25	% 
	 December 31, 2018
	  	 	0.25	% 
	 March 31, 2019
	  	 	0.25	% 
	 June 30, 2019
	  	 	0.25	% 
	 September 30, 2019
	  	 	0.25	% 
	 December 31, 2019
	  	 	0.25	% 
	 March 31, 2020
	  	 	0.25	% 
	 June 30, 2020
	  	 	0.25	% 
	 September 30, 2020
	  	 	0.25	% 
	 December 31, 2020
	  	 	0.25	% 
	 March 31, 2021
	  	 	0.25	% 
	 June 30, 2021
	  	 	0.25	% 
	 September 30, 2021
	  	 	0.25	% 
	 December 31, 2021
	  	 	0.25	% 
	 March 31, 2022
	  	 	0.25	% 
	 April 1, 2022 (the “Series F-1 Tranche B Term Loan Maturity Date”)
	  	 	Remaining Balance	  

 (iv) Voluntary and Mandatory Prepayments. Scheduled installments of principal of the Series F-1 Tranche
B Term Loans set forth above shall be reduced in connection with any voluntary or mandatory prepayments of the Series F-1 Tranche B Term Loans in accordance with Sections 2.12, 2.13, 2.14 and 2.15 of the Credit Agreement respectively. 

(v) Closing Fee / OID. Borrower agrees to pay on the date hereof to Administrative Agent, for the account of each Series F-1 New Term
Loan Lender party to this Agreement with a Series F-1 Tranche B Term Loan Commitment, as fee compensation for the funding of such Series F-1 New Term Loan Lender’s Series F-1 Tranche B Term Loans, a closing fee in an amount equal to 0.50% of
the aggregate principal amount of such Series F-1 New Term Loan Lender’s Series F-1 Tranche B Term Loans funded as of the date hereof. 

(vi) Series F-1 Term Loan Ticking Fee. Borrower agrees to pay to the Administrative Agent, for the account of each Series F-1 New Term
Loan Lender with a Series F-1 Tranche B Term Loan Commitment, a nonrefundable ticking fee (the “Series F-1 Term Loan Ticking Fee”), which fee will commence accruing as of the date that is 30 days after the first date the Series F-1
Tranche B Term Loans have been allocated, and expiring on the earlier of (x) the Series F-1 Tranche B Term Loan Funding Date (as defined below) and (y) the first to occur of (1) the consummation of the Sun Acquisition, (2) the
abandonment or termination of the Sun Acquisition Agreement and (3) 5:00 p.m. New York time on August 20, 2015 (the “Series F-1 Term Loan Commitment Termination Date”), in an amount equal to 4.00% calculated based on the
aggregate principal amount of such Series F-1 New Term Loan Lender’s Series F-1 Tranche B Term Loan Commitments; which Series F-1 Term Loan Ticking Fee (i) shall be payable on the Series F-1

  
 -3- 

 
Term Loan Commitment Termination Date and (ii) shall be calculated at a rate per annum, calculated on the basis of a year of 360 days and the actual number of days expired during the
applicable period. 
 (vii) Prepayment Premium. In the event that on or prior to the six month anniversary of the Series F-1 Tranche
B Term Loan Funding Date, the Borrower (x) makes any prepayment of the Series F-1 Tranche B Term Loans in connection with any Repricing Transaction (as defined below) or (y) effects any amendment of the Credit Agreement resulting in a
Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the ratable account of each of the applicable Lenders, (I) in the case of clause (x) above, a prepayment premium of 1% of the amount of the Series F-1 Tranche B
Term Loans being prepaid and (II) in the case of clause (y) above, a payment equal to 1% of the aggregate amount of the applicable Series F-1 Tranche B Term Loans outstanding immediately prior to such amendment. 

For purposes of this Agreement, a “Repricing Transaction” means the prepayment or refinancing of all or a portion of the
Series F-1 Tranche B Term Loans with the incurrence by any Credit Party of any long-term bank debt financing having an effective interest cost or weighted average yield (excluding any arrangement or commitment fees in connection therewith) that is
less than the effective interest cost for or weighted average yield of the Series F-1 Tranche B Term Loans, including without limitation, as may be effected through any amendment to this Agreement relating to the effective interest cost for, or
weighted average yield of, the Series F-1 Tranche B Term Loans; provided that a Repricing Transaction shall not include any amendment, prepayment, repayment or repricing made in connection with a Permitted Acquisition. 

(viii) Proposed Borrowing. 

In accordance with Section 2.25 of the Credit Agreement, Borrower has previously delivered to Administrative Agent an executed Funding
Notice for Series F-1 Tranche B Term Loans, requesting a proposed borrowing (the “Initial Proposed Borrowing”) in the principal amount of $2,350,000,000 on the date hereof (the “Series F-1 Tranche B Term Loan Funding
Date”). Each Series F-1 New Term Loan Lender with a Series F-1 Tranche B Term Loan Commitment shall make its Series F-1 Tranche B Term Loans available to the Administrative Agent not later than 11:00 a.m. (New York City time) on the date
hereof, by wire transfer of same day funds in Dollars at the Principal Office designated by Administrative Agent. Promptly upon receipt thereof, Administrative Agent shall make the proceeds of the Series F-1 Tranche B Term Loans available to
Borrower on the Series F-1 Tranche B Term Loan Funding Date by causing an amount of same day funds in Dollars equal to the proceeds of all such loans received by Administrative Agent from Series F-1 New Term Loan Lenders to be credited to the
account of Borrower, at the Principal Office designated by Administrative Agent or to such other account as may be designated in writing to Administrative Agent by Borrower. 

Section 2. Series F-2 Tranche B Term Loans 

Each Series F-2 New Term Loan Lender hereby commits to provide its respective New Term Loan Commitment (each a “Series
F-2 Tranche B Term Loan Commitment” and, collectively, the “Series F-2 Tranche B Term Loan Commitments”; collectively, with the Series F-1 Tranche B Term Loan Commitments, the “Series F Tranche B Term Loan
Commitments”) as set forth on Schedule B annexed hereto, on the terms and subject to the conditions set forth below: 
 (i)
Series F-2 Tranche B Term Loan Commitments. Except as set forth below in this 

  
 -4- 

 
Section 2, the terms and provisions of the New Term Loans in respect of the Series F-2 Tranche B Term Loan Commitments made pursuant to this Agreement (the “Series F-2 Tranche B Term
Loans” and each a “Series F-2 Tranche B Term Loan” and together with the Series F-1 Tranche B Term Loans, the “Series F Tranche B Term Loans”) shall be identical to, and constitute, Series F-1 Tranche B
Term Loans for all purposes under the Credit Agreement. The Series F-2 Tranche B Term Loan Commitments and Series F-2 Tranche B Term Loans made pursuant thereto shall be subject to the provisions of the Credit Agreement and the other Credit
Documents, and shall constitute “Tranche B Term Loan Exposure” and “Tranche B Term Loans”, respectively, thereunder. 

(ii) Principal Payments. Borrower shall make principal payments on the Series F-2 Tranche B Term Loans in installments on the dates and
in the amounts equal to the percentage set forth in Section 1(iii) hereof of an amount equal to the aggregate principal amount of Series F-2 Tranche B Term Loans outstanding as of the applicable Series F-2 Tranche B Term Loan Funding Date (as
defined below). 
 (iii) Closing Fee / OID. Borrower agrees to pay on the applicable Series F-2 Tranche B Term Loan Funding Date to
the Administrative Agent, for the account of each Series F-2 New Term Loan Lender party to this Agreement with a Series F-2 Tranche B Term Loan Commitment, as fee compensation for the funding of such Series F-2 New Term Loan Lender’s Series F-2
Tranche B Term Loans, a closing fee in an amount equal to 0.50% of the aggregate principal amount of such Series F-2 New Term Loan Lender’s Series F-2 Tranche B Term Loans funded on each Series F-2 Tranche B Term Loan Funding Date. 

(iv) Series F-2 Term Loan Ticking Fee. Borrower agrees to pay to the Administrative Agent, for the account of each Series F-2 New Term
Loan Lender with a Series F-2 Tranche B Term Loan Commitment, a nonrefundable ticking fee (the “Series F-2 Term Loan Ticking Fee”), which fee will commence accruing as of the date that is 30 days after the first date the Series F-2
Tranche B Term Loans have been allocated, and expiring on the earlier of (x) the final Series F-2 Tranche B Term Loan Funding Date and (y) the date that is 60 days after the Series F-1 Tranche B Term Loan Funding Date (or, to the extent
the Series F-1 Tranche B Term Loan Funding Date has not occurred, the Series F-1 Term Loan Commitment Termination Date) (the “Series F-2 Tranche B Term Loan Commitment Termination Date”) in an amount equal to 4.00% calculated based
on the aggregate principal amount of such Series F-2 New Term Loan Lender’s Series F-2 Tranche B Term Loan Commitments; which Series F-2 Term Loan Ticking Fee (i) shall be payable on the earliest to occur of (a) the applicable Series
F-2 Tranche B Term Loan Funding Date (with respect to Series F-2 Tranche B Term Loans made on such date) and (b) the Series F-2 Tranche B Term Loan Commitment Termination Date (with respect to the actual daily unfunded portion of the Series F-2
Tranche B Term Loan Commitments remaining on such date) and (ii) shall be calculated at a rate per annum, calculated on the basis of a year of 360 days and the actual number of days expired during the applicable period. 

(v) Proposed Borrowing. 

(x) In accordance with the Credit Agreement, Borrower shall from time to time (but on no more than four (4) occasions) deliver to
Administrative Agent an executed Funding Notice for Series F-2 Tranche B Term Loans (a “Series F-2 Funding Notice”) no later than three (3) Business Days prior to the date of the proposed borrowing (each such date, a
“Series F-2 Tranche B Term Loan Funding Date”), requesting a proposed borrowing in the aggregate principal amount of up to $1,800,000,000, but in any event not to exceed the remaining Series F-2 Tranche B Term Loan Commitment as of
such Series F-2 Tranche B Term Loan Funding Date, no later than the 

  
 -5- 

 
Series F-2 Tranche B Term Loan Commitment Termination Date; provided, that up to $500,000,000 of the Series F-2 Tranche B Term Loans may, at the Borrower’s election two Business Days
prior to the Series F-1 Tranche B Term Loan Funding Date, be deemed to be Series F-1 Tranche B Term Loans (the “Reallocated Loans”) (it being understood and agreed that any Reallocated Loans shall reduce the remaining Series F-2
Tranche B Term Loan Commitment on a dollar-for-dollar basis). Upon receipt by the Administrative Agent of such Series F-2 Funding Notice, each Series F-2 New Term Loan Lender with a Series F-2 Tranche B Term Loan Commitment shall make its Series F-2
Tranche B Term Loans available to the Administrative Agent not later than 11:00 a.m. (New York City time) on the applicable Series F-2 Tranche B Term Loan Funding Date, by wire transfer of same day funds in Dollars at the Principal Office designated
by Administrative Agent. Promptly upon receipt thereof, Administrative Agent shall make the proceeds of the applicable Series F-2 Tranche B Term Loans available to Borrower on such Series F-2 Tranche B Term Loan Funding Date by causing an amount of
same day funds in Dollars equal to the proceeds of all such loans received by Administrative Agent from Series F-2 New Term Loan Lenders to be credited to the account of Borrower, at the Principal Office designated by Administrative Agent or to such
other account as may be designated in writing to Administrative Agent by Borrower. 
 (y) Borrower may make up to four (4) borrowings
each in a minimum amount of no less than $500,000,000 in respect of the Series F-2 Tranche B Term Loan Commitments, which shall be made on any Series F-2 Tranche B Term Loan Funding Date and any amounts borrowed and repaid or prepaid may not be
re-borrowed; provided that any borrowing made on the date hereof may be in a minimum amount of no less than $250,000,000. Each Series F-2 New Term Loan Lender’s Series F-2 Tranche B Term Loan Commitment shall terminate immediately and
without further action on the Series F-2 Tranche B Term Loan Commitment Termination Date, regardless of whether any Series F-2 Tranche B Term Loans are made on such date. 

(vi) Conditions to Series F-2 Tranche B Term Loan Borrowings. The obligation of each Series F-2 New Term Loan Lender to make a Series
F-2 Tranche B Term Loan is subject to the satisfaction, or waiver in accordance with Section 10.5 of the Credit Agreement, of the following conditions precedent: (x) Administrative Agent shall have received a fully executed and delivered a
Series F-2 Funding Notice; and (y) Borrower shall have delivered a certificate of a Responsible Officer in a form reasonably satisfactory to the Administrative Agent certifying that the proceeds of the Series F-2 Tranche B Term Loan shall be
used solely to consummate the Sun Convertibles Redemption (as defined below). 
 Section 4. New Lenders. Each New Term Loan Lender (other than
any New Term Loan Lender that, immediately prior to the execution of this Agreement, is a “Lender” under the Credit Agreement) acknowledges and agrees that upon its execution of this Agreement its Series F Tranche B Term Loan Commitments
shall be effective and that such New Term Loan Lender shall become a “Lender” under, and for all purposes of, the Credit Agreement and the other Credit Documents, and shall be subject to and bound by the terms thereof, and shall perform
all the obligations of and shall have all rights of a Lender thereunder. 
 Section 5. Credit Agreement Governs. Series F Tranche B Term Loans
shall be subject to the provisions of the Credit Agreement and the other Credit Documents, except as set forth in this Agreement, and shall constitute Tranche B Term Loans thereunder. For the avoidance of doubt, Section 1(vi) of this Agreement
shall supersede the final paragraph of Section 2.13(a) of the Credit Agreement with respect to Series F Tranche B Term Loans. 

  
 -6- 

 Section 6. Borrower’s Certifications. By its execution of this Agreement, the undersigned
officer, to the best of his or her knowledge, and Borrower hereby certify that: 
  

	 	i.	The representations and warranties set forth in Section 4.1(a) of the Credit Agreement (solely with respect to due organization), Section 4.1(b) of the Credit Agreement (solely with respect to this Agreement),
Section 4.3 of the Credit Agreement (solely with respect to this Agreement), Section 4.4(a)(ii) of the Credit Agreement (solely with respect to this Agreement), 4.4(b) of the Credit Agreement with respect to material debt agreements
(solely with respect to this Agreement); Section 4.6 of the Credit Agreement (solely with respect to this Agreement), Section 4.15 of the Credit Agreement (solely with respect to regulation under the Investment Company Act of 1940),
Section 4.16 of the Credit Agreement (solely with respect to this Agreement); Section 4.20 of the Credit Agreement; Section 4.23 of the Credit Agreement (solely with respect to the PATRIOT Act and the U.S. Foreign Corrupt Practices
Act of 1977) and Section 4.25 of the Credit Agreement are true and correct in all material respects on and as of the date hereof to the same extent as though made on and as of the date hereof, except to the extent such representations and
warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all material respects on and as of such earlier date; and 

 

	 	ii.	Borrower has performed in all material respects all agreements and satisfied all conditions which the Credit Agreement provides shall be performed or satisfied by it on or before the date hereof in connection with the
Initial Proposed Borrowing. 

 Section 7. Borrower Covenants. By its execution of this Agreement, Borrower hereby covenants that:

  

	 	i.	Borrower shall deliver or cause to be delivered, on or before the Series F-1 Tranche B Term Loan Funding Date, the following legal opinions and documents: originally executed copies of the favorable written opinions of
(a) Skadden, Arps, Slate, Meagher & Flom LLP, U.S. counsel and special France counsel to the Credit Parties, (b) Chancery Chambers, special Barbados counsel to the Credit Parties, (c) Norton Rose Fulbright Canada LLP, special
Canada counsel to the Credit Parties, (d) Baker & McKenzie, special Luxembourg counsel to the Credit Parties, (e) Conyers Dill & Pearman Limited, special Bermuda counsel to the Credit Parties, (f) Arthur Cox, special
Ireland counsel to the Credit Parties, (g) Venable LLP, special Maryland counsel to the Credit Parties, (h) Souza, Cescon, Barrieu & Flesch Advogados, special Brazil counsel to the Credit Parties, (i) Squire Sanders
Święcicki Krześniak sp.k., special Poland counsel to the Credit Parties, (j) Tark Grunte Sutkiene, special Lithuania counsel to the Credit Parties, (k) White & Case LLP, special France counsel to the Administrative
Agent, (l) Allen & Overy LLP, special Netherlands counsel to the Administrative Agent, (m) Rajah & Tann LLP, special Singapore counsel to the Credit Parties, (n) Stamford Law Corporation, special Singapore counsel to
the Administrative Agent, (o) Fluxmans Inc., special South Africa counsel to the Credit Parties and (p) White & Case LLP, special United Kingdom counsel to the Administrative Agent, together with all other legal opinions and other
documents reasonably requested by Administrative Agent in connection with this Agreement. 

  
 -7- 

	 	ii.	Notwithstanding anything to the contrary contained in this Agreement or the other Credit Documents, the parties hereto acknowledge and agree that the delivery of any document or instrument and the taking of any action,
in each case set forth on Schedule C hereto shall not be a condition precedent to the Series F-1 Tranche B Term Loan Funding Date but shall be required to be satisfied after the Series F-1 Tranche B Term Loan Funding Date in accordance with
Schedule C hereto. 

 Section 8. Sun Acquisition. The Sun Acquisition shall have been consummated or shall be consummated
substantially simultaneously with the borrowing of the Series F-1 Tranche B Term Loans. 
 Section 9. Use of Proceeds. 

(i) The proceeds of the Series F-1 Tranche B Term Loans shall be used to finance a portion of the Sun Transactions; provided that any
excess proceeds of the Series F-1 Tranche B Term Loans remaining after the financing of the Sun Transactions may be used for general corporate purposes of the Borrower. 

(ii) The proceeds of the Series F-2 Tranche B Term Loans shall be used to finance the payment of any cash consideration necessary upon the
conversion of the Sun Convertible Notes (the “Sun Convertibles Redemption”). 
 Section 10. Eligible Assignee. By its execution
of this Agreement, each New Term Loan Lender (other than any New Term Loan Lender that, immediately prior to the execution of this Agreement, is a “Lender” under the Credit Agreement) represents and warrants that it is an Eligible
Assignee. 
 Section 11. Notice. For purposes of the Credit Agreement, the initial notice address of each New Term Loan Lender shall be as set
forth below its signature below. 
 Section 12. Non-U.S. Lenders. For each New Term Loan Lender that is
a Non-U.S. Lender, delivered herewith to Administrative Agent are such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such New Term Loan Lender
may be required to deliver to Administrative Agent pursuant to subsection 2.20(d) of the Credit Agreement. 
 Section 13. Recordation of the New
Loans. Upon execution and delivery hereof, Administrative Agent will record the Series F-1 Tranche B Term Loans made by Series F-1 New Term Loan Lenders pursuant hereto in the Register. Upon the funding of any Series F-2 Tranche B Term
Loans on the applicable Series F-2 Tranche B Term Loan Funding Date, Administrative Agent will record such Series F-2 Tranche B Term Loans made by Series F-2 New Term Loan Lenders pursuant hereto in the Register. 

Section 14. Reaffirmation. 
  

	 	i.	Each Credit Party hereby expressly acknowledges the terms of this Agreement and reaffirms, as of the date hereof, the covenants and agreements contained in each Credit Document to which it is a party (including the
covenants and agreements contained in Amendment No. 10 whether or not such Credit Party was party thereto), including, in each case, such covenants and agreements as in effect immediately after giving effect to this Agreement and the
transactions contemplated hereby. 

  
 -8- 

	 	ii.	Each Credit Party, by its signature below, hereby affirms and confirms (a) its obligations under each of the Credit Documents to which it is a party (including the obligations under Amendment No. 10 whether or
not such Credit Party was party thereto), and (b) the pledge of and/or grant of a security interest or hypothec in its assets as Collateral to secure such Obligations, all as provided in the Collateral Documents as originally executed, and
acknowledges and agrees that such guarantee, pledge and/or grant continue in full force and effect in respect of, and to secure, such Obligations under the Credit Agreement and the other Credit Documents. 

 

	 	ii.	Each Credit Party acknowledges and agrees that each of the Credit Documents in existence as of the date hereof shall be henceforth read and construed in accordance with and so as to give full force and effect to the
ratifications, confirmations, acknowledgements and agreements made herein. 

 Section 15. Amendment, Modification and Waiver. This
Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto. 

Section 16. Entire Agreement. This Agreement, the Credit Agreement and the other Credit Documents constitute the entire agreement among the
parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof. It is understood and
agreed that each reference in each Credit Document to the Credit Agreement, whether direct or indirect, shall hereafter be deemed to be a reference to the Credit Agreement as amended and supplemented hereby and that this Agreement is a Credit
Document. 
 Section 17. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 Section 18. Severability. Any term or provision of this
Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only
so broad as would be enforceable. 
 Section 19. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to
be an original, but all of which shall constitute one and the same agreement. 
 Section 20. Termination. The Series F Tranche B Term Loan
Commitments shall automatically terminate on (a) with respect to any Series F-1 Tranche B Term Loan Commitment, the Series F-1 Tranche B Term Loan Funding Date and (b) with respect to any Series F-2 Tranche B Term Loan Commitment, the
Series F-2 Tranche B Term Loan Commitment Termination Date. 
 [Remainder of page intentionally left blank] 

  
 -9- 

 IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to
execute and deliver this Agreement as of the date first written above. 
  

			
	DEUTSCHE BANK AG NEW YORK BRANCH, as a “New Term Loan Lender”
		
	By:		 /s/ Michael Winters

	Name:		Michael Winters
	Title:		Vice President
	
	DEUTSCHE BANK AG NEW YORK BRANCH, as a “New Term Loan Lender”
		
	By:		 /s/ Kirk L. Tashjian

	Name:		Kirk L. Tashjian
	Title:		Director

 
			
	
	Notice Address:
		
	Attention:		
	Telephone:		
	Facsimile:		

  
 [Signature Page to
Joinder Agreement] 

 
			
	VALEANT PHARMACEUTICALS INTERNATIONAL, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	VALEANT PHARMACEUTICALS INTERNATIONAL
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BAUSCH & LOMB INCORPORATED
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BAUSCH & LOMB HOLDINGS INCORPORATED
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Vice President and Treasurer
	
	SOLTA MEDICAL, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer

  
 [Signature Page to
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	ATON PHARMA, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	CORIA LABORATORIES, LTD.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	DOW PHARMACEUTICAL SCIENCES, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer

  
 [Signature Page to
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	OBAGI MEDICAL PRODUCTS, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Treasurer
	
	OMP, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Treasurer
	
	ONPHARMA INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Treasurer

  
 [Signature Page to
Joinder Agreement] 

					
	Signed by				
	Valeant Holdco 2 Pty Ltd (ACN 154 341 367)				
	in accordance with section 127 of the Corporations Act 2001 by two directors:				
			
	 /s/ Robert R Chai-Onn
				 /s/ Linda A. LaGorga

	Signature of director				Signature of director
			
	Robert R. Chai-Onn				Linda A. LaGorga
			
	  
				  

	Name of director (please print)				Name of director (please print)
			
	Signed by				
	 Wirra Holdings Pty Limited (ACN 122 216 577)

in accordance with section 127 of the Corporations Act 2001 by two directors:
				
			
	 /s/ Robert R Chai-Onn
				 /s/ Linda A. LaGorga

	Signature of director				Signature of director
			
	Robert R. Chai-Onn				Linda A. LaGorga
			
	  
				  

	Name of director (please print)				Name of director (please print)
			
	Signed by				
	 Wirra Operations Pty Limited (ACN 122 250 088)

in accordance with section 127 of the Corporations Act 2001 by two directors:
				
			
	 /s/ Robert R Chai-Onn
				 /s/ Linda A. LaGorga

	Signature of director				Signature of director
			
	Robert R. Chai-Onn				Linda A. LaGorga
			
	  
				  

	Name of director (please print)				Name of director (please print)

  
 [Signature Page to
Joinder Agreement] 

					
	Signed by				
	iNova Pharmaceuticals (Australia) Pty Limited (ACN 000 222 408)				
	in accordance with section 127 of the Corporations Act 2001 by two directors:				
			
	 /s/ Robert R Chai-Onn
				 /s/ Linda A. LaGorga

	Signature of director				Signature of director
			
	Robert R. Chai-Onn				Linda A. LaGorga
			
	  
				  

	Name of director (please print)				Name of director (please print)
			
	Signed by				
	 Wirra IP Pty Limited (ACN 122 536 350)

in accordance with section 127 of the Corporations Act 2001 by two directors:
				
			
	 /s/ Robert R Chai-Onn
				 /s/ Linda A. LaGorga

	Signature of director				Signature of director
			
	Robert R. Chai-Onn				Linda A. LaGorga
			
	  
				  

	Name of director (please print)				Name of director (please print)
			
	 Signed by
 iNova Sub Pty Limited (ACN
134 398 815)
 in accordance with section 127 of the Corporations Act 2001 by two directors:
				
			
	 /s/ Robert R Chai-Onn
				 /s/ Linda A. LaGorga

	Signature of director				Signature of director
			
	Robert R. Chai-Onn				Linda A. LaGorga
			
	  
				  

	Name of director (please print)				Name of director (please print)

  
 [Signature Page to
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	Signed by				
	Valeant Pharmaceuticals Australasia Pty Limited (ACN 001 083 352)				
			
	in accordance with section 127 of the Corporations Act 2001 by a director and secretary/director:				
			
	 /s/ Robert R Chai-Onn
				 /s/ Linda A. LaGorga

	Signature of director				Signature of director/secretary
			
	Robert R. Chai-Onn				Linda A. LaGorga
			
	  
				  

	Name of director (please print)				Name of director/secretary (please print)
			
	Signed by				
	DermaTech Pty Limited (ACN 003 982 161)				
			
	in accordance with section 127 of the Corporations Act 2001 by a director and secretary/director:				
			
	 /s/ Robert R Chai-Onn
				 /s/ Howard B. Schiller

	Signature of director				Signature of director/secretary
			
	Robert R. Chai-Onn				Howard B. Schiller
			
	  
				  

	Name of director (please print)				Name of director/secretary (please print)

  
 [Signature Page to
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	Signed by				
	Private Formula International Holdings Pty Ltd (ACN 095 450 918)				
			
	in accordance with section 127 of the Corporations Act 2001 by a director and secretary/director:				
			
	 /s/ Robert R Chai-Onn
				 /s/ Howard B. Schiller

	Signature of director				Signature of director/secretary
			
	Robert R. Chai-Onn				Howard B. Schiller
			
	  
				  

	Name of director (please print)				Name of director/secretary (please print)
			
	Signed by				
	Private Formula International Pty Ltd (ACN 095 451 442)				
			
	in accordance with section 127 of the Corporations Act 2001 by a director and secretary/director:				
			
	 /s/ Robert R Chai-Onn
				 /s/ Howard B. Schiller

	Signature of director				Signature of director/secretary
			
	Robert R. Chai-Onn				Howard B. Schiller
			
	  
				  

	Name of director (please print)				Name of director/secretary (please print)

  
 [Signature Page to
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	Signed by				
	Ganehill Pty Ltd (ACN 065 261 538)				
			
	in accordance with section 127 of the Corporations Act 2001 by a director and secretary/director:				
			
	 /s/ Robert R Chai-Onn
				 /s/ Howard B. Schiller

	Signature of director				Signature of director/secretary
			
	Robert R. Chai-Onn				Howard B. Schiller
			
	  
				  

	Name of director (please print)				Name of director/secretary (please print)

  
 [Signature Page to
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	Signed by				
	Bausch & Lomb (Australia) Pty Ltd (ACN: 000 650 251)				
			
	in accordance with section 127 of the Corporations Act 2001 by a director and secretary/director:				
			
	 /s/ Linda A. LaGorga
				 /s/ Ling Zeng

	Signature of director				Signature of director/secretary
			
	Linda LaGorga				Ling Zeng
			
	  
				  

	Name of director (please print)				Name of director/secretary (please print)

  
 [Signature Page to
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	HYTHE PROPERTY INCORPORATED
		
	By:		 /s/ Mauricio Zavala

	Name:		Mauricio Zavala
	Title:		Manager and Assistant Secretary

  
 [Signature Page to
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	VALEANT INTERNATIONAL BERMUDA
		
	By:		 /s/ Graham Jackson

	Name:		Graham Jackson
	Title:		Director
	
	VALEANT PHARMACEUTICALS NOMINEE BERMUDA
		
	By:		 /s/ Peter McCurdy

	Name:		Peter McCurdy
	Title:		President and Assistant Secretary

  
 [Signature Page to
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	PROBIÓTICA LABORATÓRIOS LTDA.
		
	By:		 /s/ Marcelo Noll Barboza

	Name:		Marcelo Noll Barboza
	Title:		Officer
		
	By:		 /s/ Guilherme Maradei

	Name:		Guilherme Maradei
	Title:		Officer

  
 [Signature Page to
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	IOLAB CORPORATION
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Treasurer
	
	TECHNOLAS PERFECT VISION, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BAUSCH & LOMB PHARMA HOLDINGS CORP.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BAUSCH & LOMB CHINA, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BAUSCH & LOMB SOUTH ASIA, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BAUSCH & LOMB TECHNOLOGY CORPORATION
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Treasurer

  
 [Signature Page to
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	RHC HOLDINGS, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	SIGHT SAVERS, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BAUSCH & LOMB INTERNATIONAL, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BAUSCH & LOMB REALTY CORPORATION.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Vice President and Treasurer
	
	ISTA PHARMACEUTICALS, LLC
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	VRX HOLDCO, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Chief Financial Officer and Treasurer

  
 [Signature Page to
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	VALEANT CANADA GP LIMITED
		
	By:		 /s/ Howard B. Schiller

	Name:		Howard B. Schiller
	Title:		Executive Vice President and Chief Financial Officer
	
	VALEANT CANADA S.E.C./VALEANT CANADA LP
		
	By:		 /s/ Howard B. Schiller

	Name:		Howard B. Schiller
	Title:		Executive Vice President and Chief Financial Officer
	
	V-BAC HOLDING CORP.
		
	By:		 /s/ Robert R. Chai-Onn

	Name:		Robert R. Chai-Onn
	Title:		Vice President

  
 [Signature Page to
Joinder Agreement] 

 
			
	MEDICIS PHARMACEUTICAL CORPORATION
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	OCEANSIDE PHARMACEUTICALS, INC.
		
	By:		 /s/ Howard B. Schiller

	Name:		Howard B. Schiller
	Title:		Chief Financial Officer and Treasurer
	
	DR. LEWINN’S PRIVATE FORMULA INTERNATIONAL, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	PRINCETON PHARMA HOLDINGS, LLC
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	PRIVATE FORMULA CORP.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	RENAUD SKIN CARE LABORATORIES, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer

  
 [Signature Page to
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	VALEANT BIOMEDICALS, INC.
		
	By:		 /s/ Howard B. Schiller

	Name:		Howard B. Schiller
	Title:		Chief Financial Officer and Treasurer
	
	VALEANT PHARMACEUTICALS NORTH AMERICA LLC
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	BIOVAIL AMERICAS CORP.
		
	By:		 /s/ Howard B. Schiller

	Name:		Howard B. Schiller
	Title:		Chief Financial Officer and Treasurer
	
	ORAPHARMA, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	ORAPHARMA TOPCO HOLDINGS, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer
	
	PRESTWICK PHARMACEUTICALS, INC.
		
	By:		 /s/ Howard B. Schiller

	Name:		Howard B. Schiller
	Title:		Chief Financial Officer and Treasurer

  
 [Signature Page to
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	BIOVAIL INTERNATIONAL S.Á.R.L.
		
	By:		 /s/ Guiseppe Di Modica

	Name:		Giuseppe Di Modica
	Title:		Manager
	
	VALEANT PHARMACEUTICALS LUXEMBOURG S.Á.R.L.
		
	By:		 /s/ Guiseppe Di Modica

	Name:		Giuseppe Di Modica
	Title:		Manager
	
	VALEANT INTERNATIONAL LUXEMBOURG S.Á.R.L.
		
	By:		 /s/ Guiseppe Di Modica

	Name:		Giuseppe Di Modica
	Title:		Manager
	
	BAUSCH & LOMB LUXEMBOURG S.Á.R.L.
		
	By:		 /s/ Guiseppe Di Modica

	Name:		Giuseppe Di Modica
	Title:		Manager

  
 [Signature Page to
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	LABORATOIRE CHAUVIN S.A.S.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		General Manager
	
	BAUSCH & LOMB FRANCE S.A.S.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		General Manager
	
	BCF S.A.S.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		General Manager
	
	CHAUVIN OPSIA S.A.S.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		General Manager

  
 [Signature Page to
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	VALEANT PHARMA HUNGARY LLC
		
	By:		 /s/ István Langer

	Name:		István Langer
	Title:		Managing Director
	
	VALEANT PHARMA HUNGARY LLC
		
	By:		 /s/ Zoltán Gábor

	Name:		Zoltán Gábor
	Title:		Finance Director

  
 [Signature Page to
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	VALEANT PHARMACEUTICALS IRELAND
		
	By:		 /s/ Graham Jackson

	Name:		Graham Jackson
	Title:		Director
	
	VALEANT HOLDINGS IRELAND
		
	By:		 /s/ Graham Jackson

	Name:		Graham Jackson
	Title:		Director

  
 [Signature Page to
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	B.L.J. COMPANY, LTD.
		
	By:		 /s/ Ian Dolling

	Name:		Ian Dolling
	Title:		Representative Director and President

  
 [Signature Page to
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	AB SANITAS
		
	By:		 /s/ Karol Michalak

	Name:		Karol Muchalak
	Title:		General Manager

  
 [Signature Page to
Joinder Agreement] 

 
			
	UCYCLYD PHARMA, INC.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Senior Vice President and Treasurer

  
 [Signature Page to
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	VALEANT EUROPE B.V.
		
	By:		 /s/ Robert Meijer

	Name:		Robert Meijer
	Title:		Attorney-in-Fact
	
	BAUSCH & LOMB B.V.
		
	By:		 /s/ Robert Meijer

	Name:		Robert Meijer
	Title:		Attorney-in-Fact
	
	BAUSCH & LOMB OPS B.V.
		
	By:		 /s/ Robert Meijer

	Name:		Robert Meijer
	Title:		Attorney-in-Fact

  
 [Signature Page to
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	PRZEDSIĘBIORSTWO FARMACEUTYCZNE JELFA S.A.
		
	By:		 /s/ Marcin Wnukowski

	Name:		Marcin Wnukowski
	Title:		Attorney-in-Fact
	
	VALEANT SP.Z O. O.
		
	By:		 /s/ Marcin Wnukowski

	Name:		Marcin Wnukowski
	Title:		Attorney-in-Fact
	
	VP VALEANT SP. Z O.O.SP.J.
		
	By:		 /s/ Marcin Wnukowski

	Name:		Marcin Wnukowski
	Title:		Attorney-in-Fact
	
	VALEANT SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ SP.J.
		
	By:		 /s/ Marcin Wnukowski

	Name:		Marcin Wnukowski
	Title:		Attorney-in-Fact

  
 [Signature Page to
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	 PHARMASWISS D.O.O., BEOGRAD

		
	 By:
		 /s/ Dejan Antonić

	 Name:
		 Dejan Antonić

	 Title:
		 General Manager

		
			(corporate stamp)

  
 [Signature Page to
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	PHARMASWISS D.O.O.,
		
	By:		 /s/ Senahil Asanagić

	Name:		Senahil Asanagić
	Title:		Director

  
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	INOVA PHARMACEUTICALS PROPRIETARY LIMITED
		
	By:		 /s/ Howard B. Schiller

	Name:		Howard B. Schiller
	Title:		Director

  
 [Signature Page to
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	PHARMASWISS SA
		
	By:		 /s/ Matthias Courvoisier

	Name:		Matthias Courvoisier
	Title:		Director

  
 [Signature Page to
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	Executed by BAUSCH & LOMB U.K. LIMITED, acting by:
	
	 /s/ Linda A. LaGorga

	Director		
	
	Name of director: Linda A. LaGorgain the presence of:
	
	 /s/ Amy Hancock

	Name of witness: Amy Hancock
	Address:		400 Somerset Corporate Blvd.
			Bridgewater, New Jersey 08807 U.S.A.
		
	Occupation:		Finance

  
 [Signature Page to
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	BAUSCH & LOMB IOM S.P.A.
		
	By:		 /s/ Linda A. LaGorga

	Name:		Linda A. LaGorga
	Title:		Director

  
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	SIGNED for and on behalf		    )										
	of VALEANT PHARMACEUTICALS NEW ZEALAND LIMITED 		     )

    )
		 /s/ Howard Schiller
				 /s/ Robert R. Chai-Onn

			Name:		Howard Schiller				Name:		Robert R. Chai-Onn
					Title:		Director				Title:		Director

  
 [Signature Page to
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	INOVA PHARMACEUTICALS (SINGAPORE) PTE LIMITED
		
	By:		 /s/ Howard Schiller

	Name:		Howard Schiller
	Title:		Director

  
 [Signature Page to
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	Consented to by:
	
	BARCLAYS BANK PLC
	As Administrative Agent and Collateral Agent
		
	By:		 /s/ Craig Malloy

			Authorized Signatory

  
 [Signature Page to
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 SCHEDULE A 

TO JOINDER AGREEMENT 
  

							
	 Name of Lender
	  	 Type of Commitment
	  	Amount	 
	 DEUTSCHE BANK AG NEW YORK BRANCH
	  	Series F-1 Tranche B Term Loan Commitment	  	$	2,350,000,000	  
		  		  	  
	  
	 
	 Total:
				$	2,350,000,000	  
		  		  	  
	  
	 

 SCHEDULE B 

TO JOINDER AGREEMENT 
  

							
	 Name of Lender
	  	 Type of Commitment
	  	Amount	 
	DEUTSCHE BANK AG NEW YORK BRANCH	  	Series F-2 Tranche B Term Loan Commitment	  	$	1,800,000,000	  
		  		  	  
	  
	 
	 Total:
				$	1,800,000,000	  
		  		  	  
	  
	 

 SCHEDULE C 

TO JOINDER AGREEMENT 

POST-CLOSING MATTERS 

Hungary Post-Closing Matters 
  

					
	 	  	 ITEM
	  	 TIME
LIMIT1

	1.	  	Execution and registration of the Pledge on All Assets Agreement	  	May 31, 2015
			
	2.	  	Execution and filing of the Quota Pledge Agreement	  	May 31, 2015
			
	3.	  	Execution and registration of, and delivering related notification under, the Pledge Over Bank Accounts Agreement	  	May 31, 2015
			
	4.	  	Execution and filing of the Trademark Pledge Agreement	  	May 31, 2015

  
  

	1 	The Administrative Agent shall have sole and absolute discretion to agree to a longer period. 

 Italy Post-Closing Matters 

 

					
	 	  	 ITEM
	  	 TIME
LIMIT2

	1.	  	Confirmation Agreement of the Italian law Share Pledge relating to Bausch & Lomb IOM S.p.A.	  	April 8, 2015
			
	2.	  	Confirmation Agreement (post syndication) of the Italian law Share Pledge relating to Bausch & Lomb IOM S.p.A.	  	June 8, 2015

  

	2 	The Administrative Agent shall have sole and absolute discretion to agree to a longer period. 

 Lithuania Post-Closing Matters 

 

					
	 	  	 ITEM
	  	 TIME
LIMIT3

	1.	  	Execution and notarization of Agreement On Amendment Of Maximum Company Mortgage Agreement Identification Code 20120130056526	  	April 10, 2015
			
	2.	  	Execution and notarization of Agreement On Amendment Of Maximum Pledge Agreement Identification Code 20220130056528	  	April 10, 2015
			
	3.	  	Execution and notarization of Agreement On Amendment Of Contractual Maximum Pledge Bond No 01220120007548	  	April 10, 2015
			
	4.	  	Tark Grunte Sutkiene, special Lithuania counsel to the Credit Parties, shall deliver or cause to be delivered to the Administrative Agent an executed copy of its customary opinion in form and substance reasonably satisfactory to the
Administrative Agent.	  	April 13, 2015
		  		  	

  

	3 	The Administrative Agent shall have sole and absolute discretion to agree to a longer period. 

 The Netherlands Post-Closing Matters 

 

					
	 	  	 ITEM
	  	 TIME
LIMIT4

	1.	  	Execution and notarisation of the Second Ranking Security Agreement Pledge Of Shares between Valeant Holdings Ireland as Security Provider, Barclays Bank PLC as Collateral Agent and Bausch+Lomb OPS B.V. as Company	  	April 8, 2015
			
	2.	  	Execution and notarisation of the Security Agreement Pledge Of Shares between Przedsiębiorstwo Farmaceutyczne Jelfa S.A., Valeant Pharmaceuticals International, Inc. and Pharmaswiss S.A., as Security Providers, Barclays Bank
PLC as Collateral Agent and Valeant Europe B.V. as Company	  	April 8, 2015
			
	3.	  	Allen & Overy LLP, special Netherlands counsel to the Administrative Agent, shall deliver or cause to be delivered to the Administrative Agent an executed copy of its customary opinion in form and substance reasonably
satisfactory to the Administrative Agent.	  	April 8, 2015

  

	4 	The Administrative Agent shall have sole and absolute discretion to agree to a longer period. 

 Poland Post-Closing Matters 

 

					
	 	  	 ITEM
	  	
TIME LIMIT5

	 1.
	  	The amendment agreement to the agreement for registered pledge over collection of assets of Przedsiębiorstwo Farmaceutyczne JELFA S.A. dated 17 September 2013 (as amended) to be entered into between Przedsiębiorstwo
Farmaceutyczne JELFA S.A. as pledgor and Barclays as pledgee	  	April 15, 2015
			
	 2.
	  	The amendment agreement to the agreement for registered pledge and financial pledge over shares in “Emo-Farm” sp. z o.o. dated 17 September 2013 (as amended) to be entered into between Przedsiębiorstwo
Farmaceutyczne JELFA S.A. as pledgor and Barclays as pledgee	  	April 15, 2015
			
	 3.
	  	The amendment agreement to the agreement for financial pledges over bank accounts of Przedsiębiorstwo Farmaceutyczne JELFA S.A. dated 17 September 2013 (as amended) to be entered into between Przedsiębiorstwo
Farmaceutyczne JELFA S.A. as pledgor and Barclays as pledgee	  	April 15, 2015
			
	 4.
	  	The amendment agreement to the agreement for registered pledges over bank accounts of Przedsiębiorstwo Farmaceutyczne JELFA S.A. dated 17 September 2013 (as amended) to be entered into between Przedsiębiorstwo
Farmaceutyczne JELFA S.A. as pledgor and Barclays as pledgee	  	April 15, 2015
			
	 5.
	  	The amendment agreement to the agreement for registered pledge and financial pledge over shares in “Valeant” sp. z o.o. dated 17 September 2013 (as amended) to be entered into between Valeant Europe BV as pledgor and
Barclays as pledgee	  	April 15, 2015
			
	 6.
	  	The amendment agreement to the agreement for registered and financial pledges over investment certificates (A and B series) issued by Ipopema 73 Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych dated 17 September
2013 (as amended) to be entered into between Valeant Europe BV as pledgor and Barclays as pledgee	  	April 15, 2015
			
	 7.
	  	The amendment agreement to the agreement for registered pledges over bank accounts of Valeant sp. z o.o. dated 24 September 2013 (as amended) to be entered into between Valeant sp. z o.o. as pledgor and Barclays as pledgee	  	April 15, 2015

  

	5 	The Administrative Agent shall have sole and absolute discretion to agree to a longer period. 

					
	8.		The amendment agreement to the agreement for financial pledges over bank accounts of Valeant sp. z o.o. dated 24 September 2013 (as amended) to be entered into between Valeant sp. z o.o. as pledgor and Barclays as pledgee		April 15, 2015
			
	9.		The amendment agreement to the agreement for registered pledge over collection of assets of Valeant sp. z o.o. dated 24 September 2013 (as amended) to be entered into between Valeant sp. z o.o. as pledgor and Barclays as
pledgee		April 15, 2015
			
	10.		The amendment agreement to the agreement for registered pledge over bank account of VP Valeant sp. z o.o. sp.j. dated 24 September 2013 (as amended) to be entered into between VP Valeant sp. z o.o. sp.j. as pledgor and Barclays as
pledgee		April 15, 2015
			
	11.		The amendment agreement to the agreement for financial pledge over bank account of VP Valeant sp. z o.o. sp.j. dated 24 September 2013 (as amended) to be entered into between VP Valeant sp. z o.o. sp.j. as pledgor and Barclays as
pledgee		April 15, 2015
			
	12.		The amendment agreement to the agreement for registered pledge over collection of assets of VP Valeant sp. z o.o. sp.j. dated 24 September 2013 (as amended) to be entered into between VP Valeant sp. z o.o. sp.j. as pledgor and
Barclays as pledgee		April 15, 2015
			
	13.		The amendment agreement to the agreement for registered pledge and financial pledge over shares in Przedsiębiorstwo Farmaceutyczne JELFA S.A. dated 21 October 2013 (as amended) to be entered into between Sanitas AB as pledgor
and Barclays as pledgee		April 15, 2015
			
	14.		The amendment agreement to the agreement for registered and financial pledges over investment certificates (C series) issued by Ipopema 73 Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych dated 21 October 2013 (as
amended) to be entered into between Valeant Europe BV as pledgor and Barclays as pledgee		April 15, 2015
			
	15.		The amendment agreement to the agreement for registered pledges over protection rights over trademarks of Valeant sp. z o.o. sp.j. dated 22 November 2013 (as amended) to be entered into between Valeant sp. z o.o. sp.j. as pledgor
and Barclays as pledgee		April 15, 2015

					
			
	16.		The amendment agreement to the agreement for registered pledges over bank accounts of Valeant sp. z o.o. sp.j. dated 22 November 2013 (as amended) to be entered into between Valeant sp. z o.o. sp.j. as pledgor and Barclays as
pledgee		April 15, 2015
			
	17.		The amendment agreement to the agreement for financial pledges over bank accounts of Valeant sp. z o.o. sp.j. dated 22 November 2013 (as amended) to be entered into between Valeant sp. z o.o. sp.j. as pledgor and Barclays as
pledgee		April 15, 2015
			
	18.		The amendment agreement to the agreement for registered pledge over collection of assets of Valeant sp. z o.o. sp.j. dated 22 November 2013 (as amended) to be entered into between Valeant sp. z o.o. sp.j. as pledgor and Barclays as
pledgee		April 15, 2015
			
	19.		The amendment agreement to the agreement for registered and financial pledges over investment certificates (D series) issued by Ipopema 73 Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych dated 3 February 2014
(as amended) to be entered into between Valeant Europe BV as pledgor and Barclays as pledgee		April 15, 2015
			
	20.		The amendment agreement to the agreement for registered and financial pledges over investment certificates (E series) issued by Ipopema 73 Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych dated 22 August 2014 (as
amended) to be entered into between Valeant Europe BV as pledgor and Barclays as pledgee		April 15, 2015
			
	21.		The agreement for registered and financial pledges over investment certificates to be issued by Ipopema 73 Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych to be entered into between Valeant Europe BV as pledgor and
Barclays as pledgee		April 15, 2015
			
	22.		The agreement for registered pledge and the financial pledge over shares in the increased share capital of Valeant sp. z o.o. to be entered into between Valeant Europe B.V. as pledgor and Barclays as pledgee		April 15, 2015
			
	23.		The statement on submission to enforcement of Sanitas AB		April 15, 2015
			
	24.		The statement on submission to enforcement of Valeant Europe BV		April 15, 2015

					
			
	25.		The statement on submission to enforcement of Przedsiębiorstwo Farmaceutyczne JELFA S.A		April 15, 2015
			
	26.		The statement on submission to enforcement of Valeant sp. z o.o		April 15, 2015
			
	27.		The statement on submission to enforcement of VP Valeant sp. z o.o. sp.j.		April 15, 2015
			
	28.		the statement on submission to enforcement of Valeant sp. z o.o. sp.j.		April 15, 2015
			
	29.		the statement on amendment of the existing mortgage to be made by Przedsiębiorstwo Farmaceutyczne JELFA S.A		April 15, 2015
			
	30.		Squire Patton Boggs Święcicki Krzesniak sp.k. special Poland counsel to the Credit Parties, shall deliver or cause to be delivered to the Admistrative Agent an executed copy of its customary opinion in form and
substance reasonably satisfactory to the Administrative Agent.		April 15, 2015
			
	31.		White & Case LLP, special counsel to the Administrative Agent, shall deliver or cause to be delivered to the Administrative Agent an executed copy of its customary opinion in a form and substance reasonably satisfactory to
the Administrative Agent		April 15, 2015

 Slovenia Post-Closing Matters 

 
  

					
	 	  	 ITEM
	  	
TIME LIMIT6

	 1.
	  	Execution and registration of the Pledge Agreement between Pharmaswiss SA, as Pledgor, and Barclays Bank PLC, as Pledgee and Collateral Agent	  	April 8, 2015
			
	 2.
	  	Notification of the Share Pledge by Pharmaswiss SA to the management of Pharmaswiss d.o.o. (to be sent via registered mail)	  	April 8, 2015

  

	6 	The Administrative Agent shall have sole and absolute discretion to agree to a longer period. 

 South Africa Post-Closing Matters 

 

					
			
	 	  	 ITEM
	  	 TIME
LIMIT1

	1.	  	Appointment letter of processional trust company as Manager for Debt Guarantor	  	April 15, 2015
			
	3.	  	Memorandum of Incorporation of the Debt Guarantor	  	April 15, 2015
			
	4.	  	Trust Deed of Owner Trustee	  	April 15, 2015
			
	5.	  	Debt Guarantor Management Agreement	  	April 15, 2015
			
	6.	  	Debt Guarantee	  	April 15, 2015
			
	7.	  	Counter-Indemnity Agreement	  	April 15, 2015
			
	8.	  	Exchange Control Approval	  	April 15, 2015
			
	9.	  	Bond cancellation in relation to existing Notarial General Bond	  	April 15, 2015
			
	10.	  	Registration of new general notarial bond in favour of security SPV	  	May 29, 2015
			
	11.	  	Fluxmans Inc., special South Africa counsel to the Credit Parties, shall deliver or cause to be delivered to the Administrative Agent an executed copy of its customary opinion in form and substance reasonably satisfactory to the
Administrative Agent.	  	April 15, 2015
			
	12.	  	White and Case, special South Africa counsel to the Administrative Agent, shall deliver or cause to be delivered to the Administrative Agent an executed copy of its customary opinion in form and substance reasonably satisfactory to
the Administrative Agent.	  	April 15, 2015

  

	1 	The Administrative Agent shall have sole and absolute discretion to agree to a longer period.Exhibit 10.47

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made as of 5/15/2012 by and between HMS Business Services, Inc., a New York corporation (“HMS”), and Cynthia Nustad, an individual (“you”) (and, together with HMS, the “Parties”) to provide services as directed, to the entities comprising the “Company” (HMS Holdings Corp. (“HMS Holdings” and with HMS, and their respective subsidiaries and affiliates, the Company)).  It replaces your offer letter of employment with the Company dated December 29, 2010.

 

WHEREAS, the Company wishes to continue to employ you and you wish to continue to be employed by the Company.

 

NOW THEREFORE, in consideration of your acceptance of continued employment under the revised terms set forth in this Agreement, the Parties agree to be bound by the terms contained in this Agreement as follows:

 

1.                                      Engagement.

 

(a) Effective April 23, 2012 (the “Effective Date”), the Company will continue to employ you as as Chief Information Officer of HMS Business Services, Inc.  You will also serve as a Senior Vice President and Chief Information Officer of HMS Holdings Corp.  You acknowledge that the Company organizes itself across multiple entities and that your being assigned to work directly for HMS Holdings or for one of its subsidiaries or affiliates will not, in and of itself, breach this Agreement.

 

(b) You will report directly to the Chief Executive Officer of HMS Holdings or his or her designee (“Supervisor”). You will have the responsibilities, duties and authorities specified from time to time by your Supervisor which will generally be commensurate with executives at a similar level of entities of similar size and character to the Company.  You also agree if so requested to serve as an officer and director of subsidiaries of HMS Holdings.

 

2.                                      Commitment. During the Employment Period (as defined in Section 3 below), you must devote your full working time and attention to the Company. During the Employment Period, you must not engage in any employment, occupation, consulting or other similar activity without your Supervisor’s prior written consent; provided, however, that you may (i) serve in any capacity with any professional, community, industry, civic (including governmental boards), educational, charitable, or other non-profit organization, (ii) serve on any for-profit entity board, with the prior written consent of your Supervisor, and (iii) subject to HMS Holdings’ conflict of interest policies, make investments in other businesses and manage your and your family’s personal investments and legal affairs; provided that any such activities described in clauses (i)-(iii) above do not materially interfere with the performance of your duties for the Company and do not otherwise violate this Agreement or any other written agreement between the Company and you. You will perform your services under this Agreement primarily at the Company’s offices in Irving, Texas or at such place or places as you and the Company may agree. You understand and agree that your employment will require travel from time to time in a manner consistent with Company policy.

 

3.                                      Employment Period. HMS hereby agrees to continue to employ you and you hereby accept continued employment with HMS upon the revised terms set forth in this Agreement, for the period commencing on the Effective Date and ending when and as provided in Section 6 (the “Employment Period”).

 

 

4.                                      Cash and Bonus.

 

(a)                                 Base Salary. You will continue to receive a base salary at a monthly rate of $29,166.66, annualizing to $350,000.00 annualized (as may be adjusted under this Agreement, the “Base Salary”). The Company will pay your Base Salary periodically in arrears not less frequently than monthly in accordance with the Company’s regular payroll practices as in effect from time to time (which currently provide for bi-weekly payments).  The Board of Directors of HMS Holdings (the “Holdings Board”) or its Compensation Committee (the “Compensation Committee”) will review your Base Salary periodically and may adjust your Base Salary at that time..

 

(b)                                 Bonus.  You will be eligible to receive bonus compensation (the “Bonus”) from the Company in respect of each fiscal year (or portion thereof) during the Employment Period, in each case as the Compensation Committee may determine in its sole discretion on the basis of such performance based or other criteria as it determines appropriate. Your target bonus will equal 50% of your Base Salary. The Compensation Committee will review your target bonus periodically and may adjust your target bonus at that time. The Bonus, if any, will be paid when other executives receive their bonuses under comparable arrangements, but, in any event, between January 1 and March 15 of the year following the year with respect to which it is earned.

 

5.                                      Employee Benefits.

 

(a)                                 Employee Welfare and Retirement Plans. You will, to the extent eligible, be entitled to participate at a level commensurate with your position in all employee welfare benefit and retirement plans and programs the Company provides to its executives in accordance with the terms thereof as in effect from time to time.  The Company may change or terminate the benefits at any time.

 

(b)                                 Business Expenses. Upon submission of appropriate documentation in accordance with Company policies, the Company will promptly pay, or reimburse you for, all reasonable business expenses that you incur in performing your duties under this Agreement, including travel, entertainment, professional dues and subscriptions, as long as such expenses are reimbursable under the Company’s policies.  Any payments or expenses provided in this Section 5(b) will be paid in accordance with Section 7(c).

 

(c)                                  Paid Time Off.  You will earn paid time off (PTO) at the rate of 18 hours per month (annualized to 27 days per year), or such greater number as the Company determines from time to time for its senior executive officers, provided that any carryover from year to year will be subject to the Company’s generally applicable policies.

 

6.                                      Termination of Employment.

 

(a)                                 General.  Subject in each case to the provisions of this Section 6 and the other provisions of this Agreement relating to our respective rights and obligations upon termination of your employment, nothing in this Agreement interferes with or limits in any way the Company’s or your right to terminate your employment at any time, for any reason or no reason, and nothing in this Agreement confers on you any right or obligation to continue in the Company’s employ. The Company, in its sole discretion, may elect to terminate your employment immediately at any time subject to compliance with any obligations it has under this Section 6. If your employment ceases for any or no reason, you (or your estate, as applicable) will be entitled to receive (in addition to any compensation and benefits you are entitled to receive under Section 6(b) or 6(c) below): (i) any earned but unpaid Base Salary and, to the extent consistent with general Company policy, accrued but unused paid time off through and including the date of termination of your employment to be paid in accordance with the Company’s regular payroll practices and with applicable law but no later than the next regularly scheduled pay period, (ii) except as provided in Section 6(d), any earned but unpaid annual Bonus for the calendar year preceding the calendar year in which your employment ends, to be paid on the date such annual Bonus otherwise would

 

2

 

have been paid if your employment had continued, (iii) unreimbursed business expenses in accordance with the Company’s policies for which expenses you have provided appropriate documentation, to be paid in accordance with Section 7(c), and (iv) any amounts or benefits to which you are then entitled under the terms of the benefit plans then sponsored by the Company in accordance with their terms (and not accelerated to the extent acceleration does not satisfy Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A” of the “Code”)). Notwithstanding any other provision in this Agreement to the contrary, you will be entitled to severance, if any, solely through the terms of this Section 6, unless another Holdings Board approved written agreement between you and the Company expressly provides otherwise.

 

(b)                                 Termination Without Cause.  If during the employment period the Company terminates your employment without Cause (defined below) in addition to the amounts described in Section 6(a), the Company will pay to you the following, subject to compliance with Section 6(b)(iii):

 

(i)                                     Cash Severance. The Company will pay to you in cash an amount equal to 12 times your monthly Base Salary, paid ratably in equal installments over a 12 month period beginning in the first payroll period following the Release Effective Date (as defined below) (or such later date required by Section 7) in accordance with the Company’s standard payroll policies and procedures and in a manner consistent with Section 7;

 

(ii)                                  Benefits.  The Company will pay you a lump sum amount equal to 12 times the difference between the monthly COBRA coverage premium for the same type of medical and dental coverage (single, family, or other) you are receiving as of the date your employment ends and your then monthly employee contribution.  This payment will be taxable and subject to withholding.  You may use the amount received for any purpose.

 

(iii)                               Release.  To receive any severance benefits provided for under this Agreement or otherwise, you must deliver to the Company a separation agreement and general release of claims on the form the Company provides (releasing all releasable claims other than to payments under Section 6 or outstanding equity and including obligations to cooperate with the Company and reaffirming your obligations under the Restrictive Covenants Agreement (as defined below)), which agreement and release must become irrevocable within 60 days (or such earlier date as the release provides) following the date of your termination of employment.  Benefits under Section 6(b)(i) and (ii) will be paid or commence in the first regular payroll beginning after the release becomes effective, subject to any delays required by Section 7; provided, however, that if the last day of the 60 day period for an effective release falls in the calendar year following the year of your date of termination, the severance payments will be paid or begin no earlier than January 1 of such subsequent calendar year.  The date on which your release of claims becomes effective is the “Release Effective Date.”  You must continue to comply with the Restrictive Covenants Agreement to continue to receive severance benefits.

 

(c)                                  Change in Control. If, within 24 months following a Change in Control, the Company terminates your employment without Cause or you resign for Good Reason, in addition to the benefits described in Section 6(b)(ii) above and subject to the release required under Section 6(b)(iii), you will receive the cash severance described in Section 6(b)(i), paid in a single lump sum on the Release Effective Date in accordance With the Company’s standard payroll policies and procedures (or such later date as either Section 6(b)(iii) or 7(a) requires).  For the purpose of this Agreement, “Change in Control” means:

 

(i)                                     the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”) (a “Person”) of  beneficial ownership of any capital stock of HMS Holdings if, after such

 

3

 

acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act) 50.01 % or more of either (x) the then-outstanding shares of common stock of HMS Holdings (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of HMS Holdings entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (A) any acquisition directly from the Company will not be a Change in Control, nor will any acquisition by any individual, entity, or group pursuant to a Business Combination (as defined below) that complies with subclauses (x) and (y) of clause (ii) of this definition;

 

(ii)                                  the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving HMS Holdings or a sale or other disposition of all or substantially all (i.e.” in excess of 85%) of the assets of HMS Holdings (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (x) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include a corporation that as a result of such transaction owns HMS Holdings or substantially all of HMS Holdings’ assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership  of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person beneficially  owns, directly or indirectly, 50.01 % or more of the then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination); or

 

(iii)                               a change in the composition of the Holdings Board that results, during any one year period, in the Continuing Directors (as defined below) no longer constituting a majority of the Holdings Board (or, if applicable, the Board of Directors of a successor corporation to HMS Holdings), where the term “Continuing Director” means at any date a member of the Holdings Board (x) who was a member of the Holdings Board on the Effective Date or (y) who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Holdings Board was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of office after the Effective Date occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Holdings Board;

 

provided that, where required by Section 409A, the event that occurs is also a “change in the ownership or effective control of a corporation, or a change in the ownership of a substantial

 

4

 

portion of the assets of a corporation” as defined in Treasury Reg. § 1.409A-3(i)(5).

 

(d)                             Termination for Cause, Voluntary Resignation.

 

(i)                                     General.    If, during the Employment Period, the Company terminates your employment for Cause, or you resign from your employment (other than for Good Reason as and when provided in Section 6(c) above), you will be entitled only to the payments described in Section 6(a) (excluding on a termination for Cause, clause (ii) of Section 6(a)), unless applicable law otherwise requires payment. You may resign, other than for Good Reason, at any time and for any reason, by giving at least 30 days’ prior written notice to the Company.  The Company may choose to respond to such notice of resignation by ending your active employment during the Notice Period, in which event you would remain an employee of the Company through the remainder of the Notice Period and continue to receive your Base Salary, less applicable deductions, and continue vesting under any outstanding equity grants through the end of the Notice Period.  You will have no further right to receive any other compensation or benefits after such termination or resignation of employment, except as determined in accordance with the terms of the employee benefit plans or programs of the Company or as required by law.

 

(ii)                                  Definitions.

 

(I)                                   Cause.  For purposes of this Agreement, “Cause” means any of the following: your (i) fraud with respect to the Company; (ii) material misrepresentation to any regulatory agency, governmental authority, outside or internal auditors, internal or external Company counsel, or the Holdings Board concerning the operation or financial status of the Company; (iii) theft or embezzlement of assets of the Company; (iv) your conviction, or plea of guilty or nolo contendere to any felony (or to a felony charge reduced to a misdemeanor), or, with respect to your employment, to any misdemeanor (other than a traffic violation); (v) material failure to follow the Company’s conduct and ethics policies that have been provided or made available to you; (vi) material breach of this Agreement or the Restrictive Covenants Agreement; and/or (vii)  continued failure to attempt in good faith to perform your duties as reasonably assigned by your Supervisor at the time.  Before terminating your employment for Cause under clauses (v) — (vii) above, the Company will specify in writing to you the nature of the act, omission, refusal, or failure that it deems to constitute Cause and, if the Company reasonably considers the situation to be correctable, give you 30 days after you receive such notice to correct the situation (and thus avoid termination for Cause), unless the Holdings Board agrees to further extend the time for correction. You agree that the Company will have discretion exercised in a reasonable manner to determine whether your correction is sufficient.  Nothing in this definition prevents the Company from removing you from your position with the Company at any time and for any reason.

 

(II)                              Good Reason. For purposes of this Agreement, “Good Reason” means, the occurrence, without your prior written consent, of any of the following events: (i) any material diminution in your authority, duties or responsibilities with the Company; (ii) a requirement that you report to an officer other than your then current Supervisor if the result is that your new Supervisor has materially diminished authority, duties, or responsibilities in comparison with your prior supervisor; (iii) a material reduction in your Base Salary; (iv) the Company’s requiring you to perform your principal services primarily in a geographic area more than 50 miles from both the Company’s offices  in Dallas, Texas and its principal headquarters in New York, New York (or such other place of primary employment  for you at which you have agreed to provide such services); or (v) a material breach by the Company of any material provision of this Agreement. No

 

5

 

resignation will be treated as resignation for Good Reason unless (x) you have given written notice to the Company of your intention to terminate your employment for Good Reason, describing the grounds for such action, no later than 90 days after the first occurrence of such circumstances, (y) you have provided  the Company with at least 30 days in which to cure the circumstances, and (z) if the Company is not successful in curing the circumstance, you end your employment within 30 days following the cure period in (y). If the Company informs you that it will not treat your resignation as for Good Reason, you may withdraw the resignation and remain employed (provided that you do so before the original notice of resignation becomes effective) or may proceed and dispute the Company’s decision.

 

(e)                                  Death or Disability. Your employment hereunder will terminate immediately upon your death or Disability.  “Disability” means the Company based upon appropriate medical evidence, determines you have become physically or mentally incapacitated so as to render you incapable of performing your usual and customary duties, with or without a reasonable accommodation, for 180 or more days, whether or not consecutive, during any 12 month period.  You are also disabled if you are found to be disabled within the meaning of the Company’s long-term disability insurance coverage as then in effect (or would be so found if you applied for the coverage or benefits).  Employment termination under this subsection is not covered by Section 6(b) or 6(c), and you or your heirs will receive only the benefits and compensation in Section 6(a) (together, as applicable, with any life or disability insurance payments).  Nothing in this Section 6(e) prevents the Company from removing you from your position with the Company or, under Section 6(b),6(c) or 6(d), from terminating your employment at any time, subject to compliance with those subsections.

 

(f)                                   Further Effect of Termination on Board and Officer Positions. If your employment ends for any reason, you agree that you will cease immediately to hold any and all officer or director positions you then have with the Company, absent a contrary direction from the Holdings Board (which may include either a request to continue such service or a direction to cease serving upon notice). You hereby irrevocably appoint the Company to be your attorney-in-fact to execute any documents and do anything in your name to effect your ceasing to serve as a director and officer of the Company, should you fail to resign following a request from the Company to do so. You will not be required to sign, and the Company will not  sign on your behalf without your consent, documents effecting your ceasing to serve as a director that characterize your cessation of employment differently than the manner in which it is effected through Section 6 above. A written notification signed by a director or duly authorized officer of the Company that any instrument, document or act falls within the authority conferred by this subsection will be conclusive evidence that it does so. The Company will prepare any documents, pay any filing fees, and bear any other expenses related to this Section.

 

7.                                      Effect of Section 409A of the Code.

 

(a)                                 Six Month Delay.  If and to the extent any portion of any payment, compensation or other benefit provided to you in connection with your employment termination is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A and you are a specified employee as defined in Section 409A(a)(2)(B)(i), as determined by the Company in accordance with its procedures, by which determination you hereby agree that you are bound, such portion of the payment, compensation or other benefit shall not be paid before the earlier of (i) the expiration of the six month period measured from the date of your “separation from service” (as determined under Section 409A) or (ii) the tenth day following the date of your death following such separation from service (the “New Payment Date”).  The aggregate of any payments that otherwise would have been paid to you during the period between the date of separation from service and the New Payment Date shall be paid to

 

6

 

you in a lump sum in the first payroll period beginning after such New Payment Date, and any remaining payments will be paid on their original schedule.

 

(b)                                 General 409A Principles.  For purposes of this Agreement, a termination of employment will mean a “separation from service” as defined in Section 409A.  For purposes of this Agreement, each amount to be paid or benefit to be provided will be construed as a separate identified payment for purposes of Section 409A, and any payments that are due within the “short term deferral period” as defined in Section 409A or are paid in a manner covered by Treas. Reg. Section 1.409A-1(b)(9)(iii) will not be treated as deferred compensation unless applicable law requires otherwise.  Neither the Company nor you will have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A.  This Agreement is intended to comply with the provisions of Section 409A and this Agreement shall, to the extent practicable, be construed in accordance therewith.  Terms defined in this Agreement will have the meanings given such terms under Section 409A if and to the extent required to comply with Section 409A.  In any event, the Company makes no representations or warranty and will have no liability to you or any other person if any provisions of or payments under this Agreement are determined to constitute deferred compensation subject to Code Section 409A but not to satisfy the conditions of that section.

 

(c)                                  Expense Timing.  Payments with respect to reimbursements of business expenses will be made in the ordinary course in accordance with the Company’s procedures (generally within 45 days after you have submitted appropriate documentation) and, in any case, on or before the last day of the calendar year following the calendar year in which the relevant expense is incurred.  The amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year.  The right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

8.                                      Restrictive Covenants.  In connection with signing this Agreement, you are signing a Noncompetition, Nonsolicitation, Proprietary and Confidential Information and Developments Agreement (the “Restrictive Covenants Agreement”), which addresses your responsibilities to the Company in connection with confidentiality, transfer and protection of intellectual property, noncompetition, nonsolicitation of employees and customers, and nondisparagement.

 

9.                                      Miscellaneous.

 

(a)                                 Notices.  All notices required or permitted under this Agreement must be in writing and will be deemed effective upon personal delivery or three business days following deposit in a United States Post Office, by certified mail, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service in the case of notice to the Company at its then principal headquarters, and in the case of notice to you to the current address on file with the Company.  Notice to the Company must include a separate notice to the General Counsel of HMS Holdings.  Either Party may change the address to which notices are to be delivered by giving notice of such change to the other Party in the manner set forth in this Section 9(a).

 

(b)                                 No Mitigation.    You are not required to seek other employment or otherwise mitigate the value of any severance benefits contemplated by this Agreement, nor will any such benefits be reduced by any earnings or benefits that you may receive from any other source.  Notwithstanding any other provision of this Agreement, any sum or sums paid under this Agreement will be in lieu of any amounts to which you may otherwise be entitled under the terms of any severance plan, policy, program, agreement or other arrangement sponsored by the Company or an affiliate of the Company.

 

(c)                                  Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE PARTIES HEREBY WAIVE, AND

 

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COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER PROCEEDING ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE RELEASE IT CONTEMPLATES, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, THE PARTIES AGREE THAT ANY PARTY MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE THEIR RIGHTS TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR TO ANY OF THE MATTERS CONTEMPLATED UNDER THIS AGREEMENT, RELATING TO YOUR EMPLOYMENT, OR COVERED BY THE CONTEMPLATED RELEASE.

 

(d)                                 Severability. Each provision of this Agreement must be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. Moreover, if an arbitrator or a court of competent jurisdiction determines any of the provisions contained in this Agreement to be unenforceable because the provision is excessively broad in scope, whether as to duration, activity, geographic application, subject or otherwise, it will be construed, by limiting or reducing it to the extent legally permitted, so as to be enforceable to the extent compatible with then applicable law to achieve the intent of the Parties.

 

(e)                                  Assignment. This Agreement will be binding upon and will inure to the benefit of (i) your heirs, beneficiaries, executors and legal representatives upon your death and (ii) any successor of the Company. Any such successor of the Company will be treated as substituted for the Company under the terms of this Agreement for all purposes.  The Company may assign this Agreement without your consent, and such an assignment will not terminate your employment for purposes of triggering your entitlement to severance; provided, however, that if such an assignment provides a basis for you to resign for Good Reason after a Change in Control, you may resign for Good Reason, and you will be entitled to severance, if any, subject to the terms of Section 6. You specifically agree that any assignment may include rights under the Restrictive Covenants Agreement without requiring your consent; provided, however, that an assignment that occurs after the termination of your employment will not expand in any manner the scope of the Restrictive Covenants Agreement.  As used herein, “successor” will mean any person, firm, corporation or other business entity that at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.

 

None of your rights to receive any form of compensation payable under this Agreement will be assignable or transferable except through a testamentary disposition or by the laws of descent and distribution upon your death or as provided in Section 9(k). Any attempted assignment, transfer, conveyance or other disposition (other than as aforesaid) of any interest in your rights to receive any form of compensation hereunder will be null and void: provided, however, that notwithstanding the foregoing, you will be allowed to transfer vested shares subject to stock options (other than incentive stock options within the meaning of Section 422 of the Code) or the vested portion of other equity awards consistent with the rules for transfers to “family members” as defined in Securities Act Form S-8. Any other attempted assignment, transfer, conveyance or other disposition of any interest in your rights to receive any form of compensation hereunder will be null and void.

 

(f)                                   No Oral Modification, Waiver, Cancellation or Discharge. This Agreement may only be amended, canceled or discharged or any obligations thereunder waived through a writing signed by you and the Chair of the Compensation Committee or any executive officer of the Company (other than you) duly authorized either by the Holdings Board or the Compensation Committee.

 

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(g)                                  No Conflict of Interest.  You confirm that you have fully disclosed to HMS Holdings and the other entities in the Company, to the best of your knowledge, all circumstances under which you, your immediate family and other persons who reside in your household have or may have a conflict of interest with the Company.  You further agree to fully disclose to the Company any such circumstances that might arise during your employment upon your becoming aware of such circumstances.

 

(h)                                 Other Agreements.  You hereby represent that your performance of all the terms of this Agreement and the performance of your duties as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by you in confidence or in trust prior to your employment with the Company.  You also represent that you are not a party to or subject to any restrictive covenants, legal restrictions, policies, commitments or other agreements in favor of any entity or person that would in any way preclude, inhibit, impair or limit your ability to perform your obligations under this Agreement, including noncompetition agreements or nonsolicitation agreements, and you further represent that your performance of the duties and obligations under this Agreement does not violate the terms of any agreement to which you are a party.  You agree that you will not enter into any agreement or commitment or agree to any policy that would prevent or hinder your performance of duties and obligations under this Agreement.

 

(i)                                     Disclosure of this Agreement. You acknowledge that the Company may provide persons or entities who may employ or engage you with a copy of the Restrictive Covenants Agreement (or portions thereof) to highlight your continuing obligations to the Company. You also acknowledge that the Company may be obligated to disclose the entire Agreement or any portion thereof to satisfy applicable laws and regulations.

 

(j)                                    Survivorship. The respective rights and obligations of the Company and you hereunder will survive any termination of your employment to the extent necessary to preserve the intent of such rights and obligations.

 

(k)                                 Beneficiaries. You will be entitled, to the extent applicable law permits, to select and change the beneficiary or beneficiaries to receive any compensation or benefit payable hereunder upon your death by giving the Company written notice thereof in a manner consistent with the terms of any applicable plan documents. If you die, severance then due or other amounts due hereunder will be paid to your designated beneficiary or beneficiaries or, if none are designated or none survive you, your estate.

 

(l)                                     Withholding. The Company will be entitled to withhold, or cause to be withheld, any amount of federal, state, city or other withholding taxes or other amounts either required by law or authorized by you with respect to payments made to you in connection with your employment.

 

(m)                             Company Policies.  References in this Agreement to Company policies and procedures are to those policies and procedures in effect at the Effective Date, as the Company may amend them from time to time.

 

(n)                                 Governing Law; Dispute Resolution. This Agreement must be construed, interpreted, and governed in accordance with the laws of the State of Texas without reference to rules relating to conflict of law.  In case of any controversy or claim arising out of or related to this Agreement or relating to your employment (including claims relating to employment discrimination), except as expressly excluded herein, each Party agrees to give the other Party notice of an intent to seek arbitration under this Agreement and 10 days to reach a resolution.  Should resolution of any controversy or claim not be reached following provision of notice and a reasonable opportunity to cure, then the dispute shall be settled by arbitration under the American Arbitration Association’s National Rules for the Resolution of Employment Disputes (the “National Rules”).  A single arbitrator shall be selected in accordance with

 

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the National Rules and the costs of such arbitration shall be shared equally between the parties.  The dispute will be arbitrated in Dallas, Texas, absent mutual agreement of the Parties to another venue.  Any claim or controversy not submitted to arbitration in accordance with this Section 9(n) (other than as provided under the Restrictive Covenants Agreement) will be waived, and thereafter no arbitrator, arbitration panel, tribunal, or court will have the power to rule or make any award on any such claim or controversy.  In determining a claim or controversy under this Agreement and in making an award, the arbitrator must consider the terms and provisions of this Agreement, as well as all applicable federal, state, or local laws.  The award rendered in any arbitration proceeding held under this Section 9(n) shall be final and binding and judgment upon the award may be entered in any court having jurisdiction thereof.  Claims for workers’ compensation or unemployment compensation benefits are not covered by this Section 9(n).  Also not covered by this Section 9(n) are claims by the Company or by you for temporary restraining orders, preliminary injunctions or permanent injunctions (“equitable relief”) in cases in which such equitable relief would be otherwise authorized by law or pursuant to the Restrictive Covenants Agreement.  The Company will be responsible for paying any filing fee of the sponsoring organization and the fees and costs of the arbitrator; provided, however, that if you initiate the claim, you will contribute an amount equal to the filing fee you would have incurred to initiate a claim in the court of general jurisdiction in the State of Texas.  Each party will pay for its own costs and attorneys’ fees, if any.  Without limiting the provisions of this Section 9(n), the Company and you agree that the decision as to whether a party is the prevailing party in an arbitration, or a legal proceeding that is commenced in connection therewith will be made in the sole discretion of the arbitrator or, if applicable, the court and the arbitrator may award reasonable attorneys’ fees, costs and expenses.

 

Any action, suit or other legal proceeding with respect to equitable relief that is excluded from arbitration must be commenced only in a court of the State of Texas (or, if appropriate, a federal court located within the State of Texas), and the Company and you each consent to the jurisdiction of such a court.  With respect to any such court action, the Parties hereto (a) submit to the personal jurisdiction of such courts; (b) consent to service of process by the means specified under Section 9(a); and (c) waive any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction, inconvenient forum, or service of process.

 

(o)                                 Interpretation. The parties agree that this Agreement will be construed without regard to any presumption or rule requiring construction or interpretation against the drafting party. References in this Agreement to “include” or “including” should be read as though they said “without limitation” or equivalent forms.

 

(p)                                 Entire Agreement. This Agreement and any documents referred to herein represent the entire agreement of the Parties and will supersede any and all previous contracts, arrangements or understandings between the Company and you.

 

Signatures on Page Following

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed and you have hereunto set your hand to be effective as of the dates below.

 

 

	
 
    	
 
    	
HMS   Business Services, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
05/01/2012
    	
 
    	
By:
    	
/s/   WILLIAM C. LUCIA
    
	
Date
    	
 
    	
William   C Lucia
    
	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Cynthia   Nustad
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
04/23/2012
    	
 
    	
/s/   CYNTHIA NUSTAD
    
	
Date
    	
 
    	
 
    

 

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