Document:

Exhibit 4.1

 

NOL AMENDMENT TO RIGHTS AGREEMENT

 

This Amendment dated as of September 26, 2014 (this “NOL Amendment”) to the Rights Agreement, dated as of September 4, 2009 (the “Original Agreement” and as amended and currently in effect, the “Rights Agreement”), is entered into between AMAG PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), and AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, as Rights Agent (the “Rights Agent”).  Capitalized terms used herein and not defined shall have the meanings specified in the Rights Agreement.

 

WHEREAS, the Company and the Rights Agent are parties to the Rights Agreement;

 

WHEREAS, the Company has generated net operating loss carryovers and tax credit carryovers for United States federal income tax purposes (“NOLs”), which provide valuable Tax Benefits (as such term is hereinafter defined) to the Company;

 

WHEREAS, the ability to use the NOLs may be impaired or destroyed by an “ownership change” within the meaning of Section 382 (as such term is hereinafter defined) and the Company desires to avoid such an “ownership change” and thereby preserve the ability to use the NOLs without limitation;

 

WHEREAS, Section 27 of the Rights Agreement permits the Company to amend the Rights Agreement on the terms set forth in this NOL Amendment; and

 

WHEREAS, the board of directors of the Company (the “Board”) has determined that the Rights Agreement be amended to preserve the Company’s ability to use the NOLs and in connection therewith the Company is entering into this NOL Amendment and directing the Rights Agent to enter into this NOL Amendment.

 

NOW, THEREFORE, in consideration of the promises and mutual agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Company and the Rights Agent hereby agree as follows:

 

1.                                      Amendments to the Rights Agreement.

 

(a)                                 Section 1(a), the definition of “Acquiring Person,” is hereby amended and restated in its entirety as follows:

 

“Acquiring Person” shall mean any Person (as such term is hereinafter defined) who or that, together with all Affiliates and Associates (as such terms are hereinafter defined) of such Person, shall be the Beneficial Owner (as such term is hereinafter defined) of 4.99% or more of the Common Shares then outstanding. Notwithstanding the foregoing, (A) the term Acquiring Person shall not include (i) the Company, (ii) any Subsidiary (as such term is hereinafter defined) of the Company, (iii) any employee benefit or compensation plan of the Company or any Subsidiary of the Company, and (iv) any entity holding Common Shares for or pursuant to the terms of any such employee benefit or compensation plan of the Company or any Subsidiary of the Company, (B) no Person shall become an “Acquiring Person” either (x) as the result of an acquisition of Common Shares by the Company that, by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) or more of the Common Shares then outstanding; provided, however, that if a Person shall become the Beneficial Owner of 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) or more of the Common Shares then outstanding by reason of share purchases by the Company and shall, following written notice from, or public disclosure by the Company of such share purchases by the Company, become the Beneficial Owner of any additional Common Shares without the prior consent of the Company and shall then beneficially own more than 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) of the Common Shares then outstanding, then such Person shall be deemed to be an “Acquiring Person,” or (y) if the Board of Directors determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this

 

 

paragraph (a), has become such inadvertently, and such Person divests, as promptly as practicable (as determined in good faith by the Board of Directors), following receipt of written notice from the Company of such event, of Beneficial Ownership of a sufficient number of Common Shares so that such Person would no longer be an Acquiring Person, as defined pursuant to the foregoing provisions of this paragraph (a), or, in the case of any Derivative Securities underlying a transaction entered into by such Person or otherwise acquired by such Person, such Person terminates such transaction or otherwise disposes of such Derivative Securities so that such Person would no longer be an Acquiring Person, then such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement; provided, however, that if such Person shall again become the Beneficial Owner of 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) or more of the Common Shares then outstanding, such Person shall be deemed an “Acquiring Person,” subject to the exceptions set forth in this Section 1(a) and (C) the term “Acquiring Person” shall not include any Person who acquires Common Shares in an Exempt Transaction or any Grandfathered Person, unless such Grandfathered Person becomes the Beneficial Owner of a percentage of the Common Shares of the Company then outstanding equal to or exceeding such Grandfathered Person’s Grandfathered Percentage.

 

(b)                                 Section 1(b), the definition of “Affiliate” and “Associate,” is hereby amended and restated in its entirety as follows:

 

“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect on the date of this Agreement and, to the extent not included within the foregoing, shall also include, with respect to any Person, any other Person whose Common Shares would be deemed constructively owned or owned through attribution by such first Person pursuant to the provisions of Section 382; provided, however, that the limited partners of a limited partnership shall not be deemed to be Associates of such limited partnership solely by virtue of their limited partnership interests.

 

(c)                                  Section 1(c), the definition of “Beneficial Owner,” is hereby amended and restated in its entirety as follows:

 

A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” any securities:

 

(i) that such Person or any of such Person’s Affiliates or Associates is deemed to beneficially own, within the meaning of Rule 13d-3 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to Beneficially Own, securities (including rights, options or warrants) that are convertible or exchangeable into or exercisable for Common Shares except to the extent the acquisition or transfer of such rights, options or warrants would be treated as exercised on the date of its acquisition or transfer under Section 1.382-4(d) or other applicable sections of the Treasury Regulations;

 

(ii) that such Person or any of such Person’s Affiliates or Associates has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights (other than these Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to Beneficially Own securities (including rights, options or warrants) that are convertible or exchangeable into or exercisable for Common Shares except to the extent the acquisition or transfer of such rights, options or warrants would be treated as exercised on the date of its acquisition or transfer under Section 1.382-4(d) or other applicable sections of the Treasury Regulations; and provided further, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until

 

2

 

such tendered securities are accepted for purchase or exchange; (B) the right to vote pursuant to any agreement, arrangement or understanding, but only if the effect of such agreement, arrangement or understanding is to treat such Person as an “entity” under Section 1.382-3(a)(1) or other applicable sections of the Treasury Regulations; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this clause (B) if (1) the agreement, arrangement or understanding to vote such security (i) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (ii) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report) or (2) such Beneficial Ownership arises solely as a result of such Person’s status as a “clearing agency” as defined in the Exchange Act; or (C) the right to dispose of pursuant to any agreement, arrangement or understanding (whether or not in writing) (other than customary arrangements with and between underwriters and selling group members with respect to a bona fide public offering of securities), but only if the effect of such agreement, arrangement or understanding is to treat such Person as an “entity” under Section 1.382-39(a)(1) or other applicable sections of the Treasury Regulations; or

 

(iii) that are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(c)(ii)(B) hereof) or disposing of any securities of the Company, provided, however, that the effect of such agreement, arrangement or understanding is to treat such Person as an “entity” under Section 1.382-3(a)(1) or other applicable sections of the Treasury Regulations; provided further, however, an agreement, arrangement or understanding for purposes of this Section 1(c)(iii) shall not be deemed to include actions, including any agreement, arrangement or understanding, or statements by any member of the Company’s Board of Directors as of the date of this Agreement, any subsequent directors of the Company (the “Successor Directors”) who have been nominated by a majority of directors who are directors as of the date of this Agreement or who are Successor Directors, or by any Person of whom such a director is an Affiliate or Associate, provided, however that this exception shall not apply to a particular Person or Persons if and to the extent that such Person or Persons, after the date of this Agreement, acquires Beneficial Ownership of more than an additional 1% of the then outstanding Common Shares of the Company unless (A) the shares are acquired directly from the Company or as part of an employee benefit or compensation plan of the Company or a subsidiary of the Company or (B) the Person establishes to the satisfaction of the Board of Directors of the Company that it is acting on its own behalf and not in concert with any other Person and will not, upon completion of any purchases, be the Beneficial Owner of 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) or more of the outstanding Common Shares;

 

(iv) that are Derivative Securities provided that the number of Common Shares deemed beneficially owned as a result of such Derivative Securities shall equal the number of Common Shares that are synthetically owned pursuant to the derivative transactions underlying such Derivative Securities; or

 

(v) that such Person would be deemed to constructively own or own through attribution or which otherwise would be aggregated with shares owned by such Person pursuant to Section 382.

 

Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the phrase, “then outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such securities not then actually issued and outstanding that such Person would be deemed to own beneficially hereunder.

 

3

 

Notwithstanding the foregoing or anything in this Agreement to the contrary, for purposes of this Agreement, each Call Spread Counterparty shall be deemed not to Beneficially Own (w) any Common Shares underlying, or synthetically owned pursuant to, any Warrant held by such Call Spread Counterparty, (x) any Common Shares held by such Call Spread Counterparty (or any affiliate thereof) to hedge its exposure with respect to the Call Spread Transactions, (y) any Common Shares underlying, or synthetically owned pursuant to, any Derivative Securities (including the Notes) held, or entered into, by such Call Spread Counterparty (or any affiliate thereof) to hedge its exposure with respect to the Call Spread Transactions or (z) any Notes held by such Call Spread Counterparty (or any affiliate thereof) in its capacity as underwriter of the Notes offering.

 

(d)                                 The following definitions are hereby added to the end of Section 1 of the Rights Agreement:

 

(x)                                 “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(y)                                 “Exempt Transaction” shall mean any transaction that the Board of Directors, in its sole discretion, have declared exempt pursuant to Section 35, which determination shall be irrevocable with respect to such transaction.

 

(z)                                  “Exemption Request” shall have the meaning set forth in Section 35 hereof.

 

(aa)                          “Grandfathered Percentage” shall mean, with respect to any Grandfathered Person, the percentage of the outstanding Common Shares of the Company that such Grandfathered Person, together with all Affiliates and Associates of such Grandfathered Person, Beneficially Owns as of the Grandfathered Time, plus an additional 1/4%; provided, however, that, in the event any Grandfathered Person shall sell, transfer, or otherwise dispose of any outstanding Common Shares of the Company after the Grandfathered Time or if the percentage of outstanding Common Shares of the Company that such Grandfathered Person Beneficially Owns is reduced as a result of the issuance of additional securities of the Company, the Grandfathered Percentage shall, subsequent to such sale, transfer, disposition or dilutive event, mean, with respect to such Grandfathered Person, the lesser of (i) the Grandfathered Percentage as in effect immediately prior to such sale, transfer, disposition or dilutive event or (ii) the percentage of outstanding Common Shares of the Company that such Grandfathered Person Beneficially Owns immediately following such sale, transfer, disposition or dilutive event, plus an additional 1/4%.

 

(bb)                          “Grandfathered Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, is, as of the Grandfathered Time, the Beneficial Owner of 4.99% or more of the Common Shares of the Company then outstanding.  Notwithstanding anything to the contrary provided in this Agreement, any Grandfathered Person who after the Grandfathered Time becomes the Beneficial Owner of less than 4.99% of the Common Shares of the Company then outstanding shall cease to be a Grandfathered Person and shall be subject to all of the provisions of this Agreement in the same manner as any Person who is not and was not a Grandfathered Person.

 

(cc)                            “Grandfathered Time” shall mean 6:30 a.m., New York city time, on September 29, 2014.

 

(dd)                          “Requesting Person” shall have the meaning set forth in Section 35 hereof.

 

4

 

(ee)                            “Section 382” shall mean Section 382 of the Code and any successor provision or replacement provision and the Treasury Regulations promulgated thereunder.

 

(ff)                              “Tax Benefits” shall mean the net operating loss carryovers, capital loss carryovers, general business carryovers, alternative minimum tax credit carryovers and foreign tax credit carryovers, as well as any loss or deduction attributable to a “net unrealized built-in loss” within the meaning of Section 382, of the Company and its Subsidiaries.

 

(gg)                          “Treasury Regulations” shall mean U.S. Treasury regulations promulgated under the Code.

 

(e)                                  Section 5 is hereby amended to include the words “or .PDF” following each use of the term “facsimile.”

 

(f)                                    Section 7(a) of the Rights Agreement is hereby amended and restated in its entirety as follows:

 

The registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the Purchase Price in cash, or by certified check or cashier’s check payable to the order of the Company for each one one-thousandth of a Preferred Share (or such other number of shares or other securities) as to which the Rights are exercised, at or prior to the earliest of (i) the Close of Business on March 31, 2017, (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), (iii) the time at which such Rights are exchanged as provided in Section 24 hereof, (iv) the Close of Business on the effective date of the repeal of Section 382 or any successor statute if the Board of Directors determines that this Rights Agreement is no longer necessary or desirable for the preservation of Tax Benefits, (v) the Close of Business on the first day of a taxable year of the Company to which the Board of Directors determines that no Tax Benefits may be carried forward or (vi) the Close of Business on September 26, 2015, if stockholder approval of the NOL Amendment to Rights Agreement has not been obtained by or on such date (the earliest of (i), (iv), (v) and (vi), the “Final Expiration Date”).

 

(g)                                 Section 7(b) of the Rights Agreement is hereby amended and restated in its entirety as follows:

 

The purchase price for each one one-thousandth of a Preferred Share pursuant to the exercise of a Right shall initially be $80 (the “Purchase Price”) and shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c) below.

 

(h)                                 Section 11(a)(ii) of the Rights Agreement is hereby amended and restated in its entirety as follows:

 

Subject to Section 24 hereof and the provisions of the next paragraph of this Section 11(a)(ii), in the event any Person shall become an Acquiring Person, each holder of a Right shall have a right to receive, upon exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares as shall equal the result obtained by (A) multiplying the then current Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable and dividing that product by (B) 50% of the then current per share market price of the Common Shares (determined pursuant to Section 11(d) hereof) on the date such Person became an Acquiring Person; provided, however, that if the transaction that would otherwise give rise to the foregoing adjustment is also subject to the provisions of Section 13 hereof, then only the provisions of Section 13 hereof shall apply and no adjustment shall be made pursuant to this Section 11(a)(ii). In the event that any Person shall become an Acquiring Person and the Rights shall then be outstanding, the Company shall not take any action that would eliminate or diminish the benefits intended to be afforded by the Rights.

 

5

 

Notwithstanding anything in this Agreement to the contrary, from and after the time any Person becomes an Acquiring Person, any Rights beneficially owned by (i) such Acquiring Person or an Associate or Affiliate of such Acquiring Person, (ii) a transferee of such Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person became such, or (iii) a transferee of such Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person’s becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer that the Board of Directors has determined is part of a plan, arrangement or understanding that has as a primary purpose or effect the avoidance of this Section 11(a)(ii), shall become null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise.  The Company shall use all reasonable efforts to ensure that the provisions of this Section 11(a)(ii) and Section 4(b) hereof are complied with, but neither the Company nor the Rights Agent shall have any liability to any holder of Right Certificates or other Person as a result of its failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder.  No Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights would be void pursuant to the preceding sentence shall be canceled.

 

(i)                                    Section 23(b)(ii) of the Rights Agreement is hereby amended and restated in its entirety as follows:

 

In addition, the Board of Directors may, at its option, at any time after the time a Person becomes an Acquiring Person but prior to any event described in clause (x), (y) or (z) of the first sentence of Section 13 hereof, redeem all but not less than all of the then outstanding Rights at the Redemption Price (x) in connection with any merger, consolidation or sale or other transfer (in one transaction or in a series of related transactions) of assets or earning power aggregating 50% or more of the assets or earning power of the Company and its subsidiaries (taken as a whole) in which all holders of Common Shares are treated alike and not involving (other than as a holder of Common Shares being treated like all other such holders) an Interested Stockholder or a Transaction Person or (y)(A) if and for so long as the Acquiring Person is not thereafter the Beneficial Owner of 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) or more of the then outstanding Common Shares, and (B) at the time of redemption no other Persons are Acquiring Persons.

 

(j)                                    The Company’s address in Section 26 is hereby replaced with the following:

 

AMAG Pharmaceuticals, Inc.

1100 Winter Street

Waltham, MA 02451

Attention: General Counsel

 

(k)                                  The first sentence of Section 28 of the Rights Agreement is hereby deleted such that Section 28 shall read in its entirety as follows:

 

The Board of Directors shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board, or the Company, or as may be necessary or advisable in the administration of this Agreement, including without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend the Agreement).  All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) that are done or

 

6

 

made by the Board in good faith, shall (x) be final, conclusive and binding on the Rights Agent and the holders of the Rights, and (y) not subject the Board to any liability to the holders of the Rights.

 

(l)                                    A new Section 35 is hereby inserted following Section 34 as follows:

 

PROCESS TO SEEK EXEMPTION.  Any Person who desires to effect any acquisition of Common Shares that would, if consummated, result in such Person (together with its Affiliates and Associates) beneficially owning 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage) or more of the then outstanding Common Shares (a “Requesting Person”) may, prior to the Shares Acquisition Date, and in accordance with this Section 35, request that the Board of Directors grant an exemption with respect to such acquisition under this Agreement (an “Exemption Request”).  An Exemption Request shall be in proper form and shall be delivered by registered mail, return receipt requested, to the Secretary of the Company at the principal executive office of the Company.  To be in proper form, an Exemption Request shall set forth (i) the name and address of the Requesting Person, (ii) the number and percentage Common Shares then Beneficially Owned by the Requesting Person, together with all Affiliates and Associates of the Requesting Person, and (iii) a reasonably detailed description of the transaction or transactions by which the Requesting Person would propose to acquire Beneficial Ownership of Common Shares aggregating 4.99% (or, in the case of an Grandfathered Person, the Grandfathered Percentage) or more of the then outstanding Common Shares and the maximum number and percentage of shares of Common Shares that the Requesting Person proposes to acquire.  The Board of Directors shall make a determination whether to grant an exemption in response to an Exemption Request as promptly as practicable (and, in any event, within ten (10) Business Days) after receipt thereof; provided, that the failure of the Board of Directors to make a determination within such period shall be deemed to constitute the denial by the Board of Directors of the Exemption Request.  The Board of Directors shall only grant an exemption in response to an Exemption Request if the Board of Directors determine, in its sole discretion, that the acquisition of Beneficial Ownership of Common Shares by the Requesting Person will not jeopardize or endanger the availability to the Company of any Tax Benefits.  Any exemption granted hereunder may be granted in whole or in part, and may be subject to limitations or conditions (including that the exemption be of a limited duration, a requirement that the Requesting Person agree that it will not acquire Beneficial Ownership of Common Shares in excess of the maximum number and percentage of shares approved by the Board of Directors or that it will not make another Exemption Request), in each case as and to the extent the Board of Directors shall determine necessary or desirable to provide for the protection of the Company’s Tax Benefits.  Any Exemption Request may be submitted on a confidential basis and, except to the extent required by applicable law, the Company shall maintain the confidentiality of such Exemption Request and the Board of Directors’ determination with respect thereto.

 

(m)                               The front side of the Form of Right Certificate attached as Exhibit B to the Original Agreement is hereby amended and replaced by Exhibit A hereto (for the avoidance of doubt the Form of Reverse Side of Right Certificate, which includes the Form of Assignment and the Form of Election to Purchase, is not being amended hereby).

 

(n)                                 A Summary of Amended Rights to Purchase Preferred Shares is attached hereto as Exhibit B (the “Summary”). Such Summary will be filed as an exhibit to the Company’s Current Report on Form 8-K reporting entry into this NOL Amendment, which is expected to be filed with the U.S. Securities and Exchange Commission within four business days of the date hereof.  Holders of Common Shares may receive such Summary by first-class, postage-prepaid mail upon written request to our principal executive offices at 1100 Winter Street, Waltham, Massachusetts 02451, attention: General Counsel.

 

2.                                      Miscellaneous.

 

(a)                                 Except as expressly set forth herein, the Rights Agreement shall not by implication or otherwise be supplemented or amended by virtue of this NOL Amendment, but shall remain in full force and effect, as amended hereby.  This NOL Amendment shall be construed in accordance with and as a part of the Rights Agreement, and all terms, conditions, representations, warranties, covenants and agreements set forth in the Rights Agreement and each other instrument or agreement referred to therein, except as herein amended, are hereby ratified and

 

7

 

confirmed.  To the extent that there is a conflict between the terms and provisions of the Rights Agreement and this NOL Amendment, the terms and provisions of this NOL Amendment shall govern for purposes of the subject matter of this NOL Amendment only.

 

(b)                                 If any term, provision, covenant or restriction of this NOL Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this NOL Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

(c)                                  This NOL Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such State.

 

(d)                                 This NOL Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

(e)                                  This NOL Amendment shall be deemed effective as of the date first written above, as if executed on such date.

 

8

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first written above.

 

	
 
    	
AMAG   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Frank E. Thomas
    
	
 
    	
Name:
    	
Frank E. Thomas
    
	
 
    	
Title:
    	
Executive Vice President and Chief Operating   Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AMERICAN STOCK   TRANSFER & TRUST COMPANY, LLC, AS RIGHTS AGENT
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Nespoli
    
	
 
    	
Name:
    	
Michael Nespoli
    
	
 
    	
Title:
    	
Executive Director of Relationship   Management
    

 

 

EXHIBIT A

FORM OF RIGHT CERTIFICATE

 

	
Certificate No. R-
    	
Rights
    

 

NOT EXERCISABLE AFTER MARCH 31, 2017 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS OR IF OTHERWISE EXPIRED PURSUANT TO THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

 

RIGHT CERTIFICATE
 AMAG PHARMACEUTICALS, INC.

 

This certifies that or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of September 4, 2009 (as amended from time to time, the “Rights Agreement”), between AMAG Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and American Stock Transfer & Trust Company, LLC (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 p.m, New York time, on the earliest of (a) March 31, 2017, (b) the effective date of the repeal of Section 382 or any successor statute if the Board of Directors determines that the Rights Agreement is no longer necessary or desirable for the preservation of any Tax Benefits (as such term is defined in the Rights Agreement), (c) the first day of a taxable year of the Company to which the Board of Directors determines that no Tax Benefits may be carried forward or (d) September 26, 2015, if stockholder approval of the NOL Amendment has not been obtained by or on such date, unless earlier redeemed or exchanged by the Company as described below, at the office of the Rights Agent designated for such purpose, or at the office of its successor as Rights Agent, one one-thousandth of a fully paid non-assessable share of Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a purchase price of $[        ] per one one-thousandth of a Preferred Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of one one-thousandths of a Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of [         ], based on the Preferred Shares as constituted at such date.

 

From and after the time any Person becomes an Acquiring Person, (as such terms are defined in the Rights Agreement), if the Rights evidenced by this Right Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person, Associate or Affiliate who becomes a transferee after the Acquiring Person becomes such, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of any such Acquiring Person, Associate or Affiliate who becomes a transferee prior to or concurrently with the Acquiring Person becoming such, such Rights shall become null and void without any further action and no holder hereof shall have any right with respect to such Rights from and after the time any Person becomes an Acquiring Person.  As provided in the Rights Agreement, the Purchase Price and the number of one one-thousandths of a Preferred Share which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events.

 

This Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, as amended from time to time, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof. Reference is made to the Rights Agreement for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the above-mentioned offices of the Rights Agent.

 

This Right Certificate, with or without other Right Certificates, upon surrender at the office of the Rights Agent designated for such purpose, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right Certificates surrendered shall have entitled such holder to 

 

10

 

purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised.

 

Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $0.01 per Right or (ii) may be exchanged in whole or in part for shares of the Company’s Common Stock, par value $0.01 per share, or, upon circumstances set forth in the Rights Agreement, cash, property or other securities of the Company, including fractions of a share of Preferred Stock.

 

No fractional Preferred Shares will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts) but in lieu thereof a cash payment will be made, as provided in the Rights Agreement.

 

No holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Rights Agreement.

 

This Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

 

WITNESS the facsimile or .PDF signature of the proper officers of the Company and its corporate seal.

 

Dated as of .

 

	
ATTEST:
    	
 
    	
AMAG PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
[Name]
    	
 
    	
[Name]
    
	
[Title]
    	
 
    	
[Title]
    

 

COUNTERSIGNED:

 

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

 

as Rights Agent

 

	
By:
    	
 
    	
 
    	
 
    
	
 
    	
[Name]
    	
 
    	
 
    
	
 
    	
[Title]
    	
 
    	
 
    

 

11

 

EXHIBIT B

 

AMAG PHARMACEUTICALS, INC.

 

SUMMARY OF AMENDED RIGHTS TO PURCHASE
 PREFERRED SHARES

 

On September 3, 2009, the Board of Directors of AMAG PHARMACEUTICALS, INC. (the “Company”) declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $0.01 per share (the “Common Shares”), of the Company. The dividend was effective as of September 17, 2009 (the “Record Date”) with respect to the stockholders of record on that date. The Rights also attached to new Common Shares issued after the Record Date. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company at a price of $80 per one one-thousandth of a Preferred Share (the “Purchase Price”), subject to adjustment. Each Preferred Share is designed to be the economic equivalent of 1,000 Common Shares. The description and terms of the Rights are set forth in a Rights Agreement dated as of September 4, 2009 (as amended from time to time, the “Rights Agreement”), between the Company and American Stock Transfer & Trust Company, LLC (the “Rights Agent”).

 

On September 26, 2014, the Board of Directors adopted an amendment to the Rights Agreement (the “NOL Amendment”) in an effort to protect shareholder value by attempting to protect against a possible limitation on the Company’s ability to use its net operating loss carryforwards (the “NOLs”) and other tax benefits to reduce potential future United States Federal income tax obligations. The Company has experienced and may continue to experience substantial operating losses, and under the Internal Revenue Code of 1986, as amended (the “Code”), and rules promulgated thereunder, the Company may “carry forward” these NOLs or NOLs it acquires from companies though acquisition activity and other tax benefits in certain circumstances to offset any current and future earnings and thus reduce the Company’s federal income tax liability, subject to certain requirements and restrictions. To the extent that the NOLs and other tax benefits do not otherwise become limited, the Company believes that it will be able to carry forward a significant amount of NOLs and other tax benefits, and therefore these NOLs and other tax benefits could be a substantial asset to the Company. However, if the Company experiences an “ownership change,” as defined in Section 382 of the Code, its ability to use the NOLs and other tax benefits will be substantially limited, including that the timing of the usage of the NOLs and other tax benefits could be substantially delayed, which could therefore significantly impair the value of those assets.  For the avoidance of doubt, references to the Rights Agreement in this summary include the impact of the NOL Amendment.  The NOL Amendment also reduced the Purchase Price from $250 to $80.

 

DETACHMENT AND TRANSFER OF RIGHTS

 

Initially, the Rights are evidenced by the stock certificates representing Common Shares then outstanding, and no separate Right Certificates will be distributed. Until the earlier to occur of (i) the tenth day after a public announcement that a person or group of affiliated or associated persons, has become an “Acquiring Person” (as such term is defined in the Rights Agreement) or (ii) 10 business days (or such later date as the Board of Directors may determine) following the commencement of, or announcement of an intention to make, a tender offer or exchange offer which would result in the beneficial ownership by an Acquiring Person of 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) or more of the outstanding Common Shares (the earlier of such dates being called the “Distribution Date”), the Rights will be evidenced, with respect to any of the Common Share certificates outstanding as of the Record Date, by such Common Share certificate.  Generally, the Rights Agreement provides that any person or group (including any affiliate or associate of such person or group) (a “Grandfathered Person”) which beneficially owned (as disclosed in public filings with the Securities and Exchange Commission) 4.99% or more of the outstanding Common Shares as of the Grandfathered Time (the percentage of such ownership, the “Grandfathered Percentage”) will not be deemed an “Acquiring Person” unless such Grandfathered Person exceeds its Grandfathered Percentage 1/4% or more. If any Grandfathered Person shall sell, transfer or otherwise dispose of any outstanding Common Shares after the Grandfathered Time or if the percentage of outstanding Common Shares of the Company that such

 

12

 

Grandfathered Person beneficially owns is reduced as a result of the issuance of additional securities of the Company, the related Grandfathered Percentage shall, subsequent to such sale, transfer, disposition or dilutive event, mean, with respect to the Grandfathered Person, the lesser of (a) the Grandfathered Percentage as in effect immediately prior to such sale, transfer, disposition or dilutive event or (b) the percentage of outstanding Common Shares of the Company that such Grandfathered Person beneficially owns immediately following such sale, transfer, disposition or dilutive event, plus an additional 1/4%; provided, however, if at any time after the Grandfathered Time, such Grandfathered Person is the beneficial owner of less than 4.99% of the outstanding Common Shares, then such person or group (including any affiliate or associate of such person or group) will cease to be a Grandfathered Person.

 

Additionally, the Rights Agreement provides that any person who desires to effect any acquisition of Common Shares that would, if consummated, result in such person (together with its affiliates and associates) beneficially owning 4.99% (or, in the case of a Grandfathered Person, the Grandfathered Percentage) or more of the then outstanding Common Shares (a “Requesting Person”) may, prior to the Shares Acquisition Date (as defined in the Rights Agreement), and in accordance with this the Rights Agreement, request that the Board of Directors grant an exemption with respect to such acquisition under the Rights Agreement (an “Exemption Request”).  The Board of Directors will only grant an exemption in response to an Exemption Request if the Board of Directors determines, in its sole discretion, that the acquisition of beneficial ownership of Common Shares by the Requesting Person will not jeopardize or endanger the availability to the Company of any tax benefits.  Any exemption granted may be granted in whole or in part, and may be subject to limitations or conditions (including that the exemption be of a limited duration, a requirement that the Requesting Person agree that it will not acquire beneficial ownership of Common Shares in excess of the maximum number and percentage of shares approved by the Board of Directors or that it will not make another Exemption Request), in each case as and to the extent the Board of Directors shall determine necessary or desirable to provide for the protection of the Company’s tax benefits.

 

The Rights Agreement provides that, until the Distribution Date (or earlier redemption or expiration of the Rights), the Rights are transferable with and only with the Common Shares. Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share certificates issued after the Record Date upon transfer or new issuance of Common Shares will contain a notation incorporating the Rights Agreement by reference. Until the Distribution Date (or earlier redemption or expiration of the Rights), the surrender or transfer of any certificates for Common Shares outstanding as of the Record Date, even without such notation or a copy of this Summary of Rights being attached thereto, will also constitute the transfer of the Rights associated with the Common Shares represented by such certificate. As soon as practicable following the Distribution Date, separate certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares as of the close of business on the Distribution Date and such separate Right Certificates alone will evidence the Rights.

 

EXERCISABILITY OF RIGHTS

 

The Rights are not exercisable until the Distribution Date. The Rights will expire on the Final Expiration Date (defined below), unless the Final Expiration Date is extended or unless the Rights are earlier redeemed or exchanged by the Company, in each case as described below. Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends.  The Final Expiration Date means the earliest of the close of business on (1) March 31, 2017, (2) the effective date of the repeal of Section 382 or any successor statute if the Board of Directors determines that this Rights Agreement is no longer necessary or desirable for the preservation of tax benefits, (3) the first day of a taxable year of the Company to which the Board of Directors determines that no Tax Benefits may be carried forward or (4) September 26, 2015, if stockholder approval of the NOL Amendment to the Rights Agreement has not been obtained by or on such date.

 

The Purchase Price payable, and the number of Preferred Shares or other securities or property issuable or payable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution. The number of outstanding Rights and the number of one one-thousandths of a Preferred Share issuable upon exercise of each Right are also subject to adjustment in the event of a stock split of the Common Shares or a stock dividend on the Common Shares payable in Common Shares, or subdivisions, consolidations or combinations of the Common Shares occurring, in any such case, prior to the Distribution Date. With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such Purchase

 

13

 

Price. No fractional Preferred Shares will be issued (other than fractions which are integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts) and in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Shares on the last trading day prior to the date of exercise.

 

TERMS OF PREFERRED SHARES

 

Preferred Shares purchasable upon exercise of the Rights will not be redeemable. Each Preferred Share will be entitled to a minimum preferential quarterly dividend payment of $l per share but will be entitled to an aggregate dividend of 1,000 times the dividend declared per Common Share. In the event of liquidation, the holders of the Preferred Shares will be entitled to a minimum preferential liquidation payment of $250 per share but will be entitled to an aggregate payment of 1,000 times the payment made per Common Share. Each Preferred Share will have 1,000 votes, voting together with the Common Shares. Finally, in the event of any merger, consolidation or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 1,000 times the amount received per Common Share. These rights are protected by customary anti-dilution provisions. Because of the nature of the Preferred Shares’ dividend, liquidation and voting rights, the value of the one one-thousandth interest in a Preferred Share purchasable upon exercise of each Right should approximate the value of one Common Share. The Preferred Shares would rank junior to any other series of the Company’s preferred stock.

 

TRIGGER OF FLIP-IN AND FLIP-OVER RIGHTS

 

In the event that any person or group of affiliated or associated persons becomes an Acquiring Person, proper provision shall be made so that each holder of a Right, other than Rights beneficially owned by the Acquiring Person or any affiliate or associate thereof (which will thereafter be void), will thereafter have the right to receive upon exercise that number of Common Shares having a market value equal to two times the exercise price of the Right. This right will commence on the date that a person has become an Acquiring Person (or the effective date of a registration statement relating to the securities purchasable upon exercise of the Rights, if later).

 

In the event that the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or earning power are sold to an Acquiring Person, its affiliates or associates or certain other persons in which such persons have an interest, proper provision will be made so that each such holder of a Right will thereafter have the right to receive, upon the exercise thereof at the then current exercise price of the Right, that number of shares of common stock of the acquiring company which at the time of such transaction will have a market value of two times the exercise price of the Right.

 

REDEMPTION AND EXCHANGE OF RIGHTS

 

At any time prior to the earliest of (i) the day that a person has become an Acquiring Person, or (ii) the Final Expiration Date, the Board of Directors of the Company may redeem the Rights in whole, but not in part, at a price of $0.01 per Right (the “Redemption Price”), which may be paid in cash, Common Shares or any other consideration deemed appropriate by the Board of Directors of the Company. In general, the redemption of the Rights may be made effective at such time on such basis with such conditions as the Board of Directors in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.

 

At any time after any Person becomes an Acquiring Person and prior to the acquisition by such person or group of affiliated or associated persons of 50% or more of the outstanding Common Shares, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such person or group of affiliated or associated persons which will have become void), in whole or in part, at an exchange ratio of one Common Share per Right. Under certain circumstances set forth in the Rights Agreement, in lieu of Common Shares, the Company may exchange cash, property or other securities of the Company, including fractions of a Preferred Share (or of a share of a class or series of the Company’s preferred stock having equivalent designations and the powers, preferences and rights, and the qualifications, limitations and restrictions) with value equal to such Common Shares.

 

AMENDMENT OF RIGHTS

 

The terms of the Rights generally may be amended by the Board of Directors of the Company without the consent of the holders of the Rights, except that from and after the time that the Rights are no longer redeemable, no such amendment may adversely affect the interests of the holders of the Rights (excluding the interest of any Acquiring Person and any group of affiliated or associated persons).

 

14

 

ADDITIONAL INFORMATION

 

A copy of the original Rights Agreement has been filed with the Securities and Exchange Commission as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated September 4, 2009 and amendments thereto are filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K dated May 10, 2012 and Exhibit 4.4 to the Company’s Current Report on Form 8-K dated February 14, 2014.  A copy of the NOL Amendment will be filed as an exhibit to Current Report on Form 8-K that the Company expects to file on or about September 29, 2014.  A copy of this Summary and the Rights Agreement, including all amendments, is available from the Company by writing to: AMAG Pharmaceuticals, 1100 Winter Street, Waltham, Massachusetts 02451, Attention: General Counsel. This summary description of the Rights is not intended to be complete and is qualified in its entirety by reference to the Rights Agreement, which is hereby incorporated herein by reference.

 

15Exhibit 10.1

 

Execution Version

 

JEFFERIES FINANCE LLC

520 Madison Avenue
 New York, New York 10022

 

September 28, 2014

 

CONFIDENTIAL

 

COMMITMENT LETTER

 

AMAG Pharmaceuticals, Inc.
 1100 Winter Street
 Waltham, MA  02451

 

Attention: Scott A. Holmes, Principal Financial Officer and Treasurer

 

Re:                             Acquisition of Lumara Health Inc.

 

Ladies and Gentlemen:

 

You have advised Jefferies Finance LLC (“Jefferies Finance” and, together with the other Joint Lead Arrangers and Initial Lenders (each as defined below), “we” or “us”) that AMAG Pharmaceuticals, Inc., a Delaware corporation (the “Acquiror” or “you”), intends to acquire either directly or indirectly through a newly formed subsidiary (the “Acquisition”) all of the issued and outstanding capital stock of Lumara Health Inc. (the “Target” and, together with its subsidiaries, the “Acquired Business”; provided, however, that the terms “Target” and “Acquired Business” shall exclude the Women’s Health Division, as defined in the Acquisition Agreement (as defined herein)) from its existing equity holders (together, the “Sellers”), and to refinance (together with any applicable prepayment premium or fee, with the commitments thereunder being terminated, and all guarantees and security in respect thereof being terminated and released following repayment) substantially all of the existing indebtedness (the “Refinanced Debt”) of you and the Acquired Business (the “Refinancing”), other than indebtedness permitted to be outstanding under the Definitive Debt Documents (as defined herein), which shall include, among other things, (i)  the Acquiror’s 2.50% Convertible Senior Notes due 2019 in the original principal amount of $200.0 million (the “2019 Notes”) and (ii) indebtedness of the Acquired Business permitted to be incurred and remain outstanding under the Acquisition Agreement, which shall, in each case, remain outstanding immediately following the consummation of the Transactions (as defined herein) on the Closing Date (as defined herein) (collectively, the “Surviving Debt”).  Capitalized terms used but not defined herein and defined in any exhibit hereto have the meanings assigned to them in such exhibit.

 

You have advised us that the total purchase price due on the Closing Date for the Acquisition (the “Purchase Price”), the Refinancing, and fees, commissions and expenses related to the Acquisition, the Refinancing and the issuance of the Equity Consideration (as defined below), in each case payable by you or your affiliates on the Closing Date (but excluding the contingent or post-closing consideration for the Acquisition (the “Acquisition Earnout”) specified in Section 2.9 of the Acquisition Agreement), will be financed from the following sources:

 

(i)                                     a $340.0 million senior secured first lien term loan facility, having the terms set forth in Exhibit A hereto (the “Term Loan Facility”);

 

 

(ii)                                  cash on hand of the Acquiror and its subsidiaries in the amount of $275.0 million plus (x) such additional amounts as may be required to pay fees, commissions and expenses in connection with the Transactions and (y) any amounts required on the Closing Date to fund adjustments of or increases to the Purchase Price that, in the case of this clause (y), do not exceed the sum of (i) $10.0 million plus (ii) the amount of the net cash proceeds (“New Equity Proceeds”) of the issuance of common equity securities of the Acquiror after the date hereof (the amounts described in this clause (ii), the “Balance Sheet Cash Contribution”); and

 

(iii)                               the issuance to the Sellers of shares of the common stock, par value $0.01 per share, of the Acquiror (the “Equity Consideration”), representing not more than 19.9% of the outstanding common stock of the Borrower and valued at approximately $75.0 million, based on Reference Market Value (as defined in the below referenced Acquisition Agreement).

 

The transaction described in clause (i) above is referred to as the “Debt Financing” and, together with the issuance of the Equity Consideration, the Acquisition and the Refinancing and the payment of all related fees, commissions and expenses payable on the Closing Date by you or your affiliates are collectively referred to as the “Transactions.” You and your subsidiaries (including the Target and its subsidiaries) are referred to herein as the “Company.” As used in this Commitment Letter and the other Debt Financing Letters (as defined below), the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”

 

1.                                      The Commitments.

 

In connection with the foregoing, Jefferies Finance (either directly or through one of its affiliates) hereby commits to provide 100% of the principal amount of the Term Loan Facility (each of Jefferies Finance and each Additional Initial Lender, as defined below, in such capacity, an “Initial Lender”), provided that (a) each Additional Initial Lender’s (as defined below) commitment will reduce the commitment of Jefferies on a dollar for dollar basis; provided that such Additional Initial Lender shall have executed joinder documentation as provided in Section 2 below and (b) the commitments of the Initial Lenders shall be several and not joint.

 

The commitments described in this Section 1 are referred to herein as the “Commitments.”  The several obligation of each Initial Lender to the Borrower to fund the Term Loan Facility on the Closing Date is subject only to the conditions set forth in this letter (including the exhibits, schedules and annexes hereto, collectively, this “Commitment Letter”) between you and us.  Notwithstanding anything to the contrary in this Commitment Letter or the fee letter, to be executed on or after the date hereof, between you and us (the “Fee Letter” and, together with this Commitment Letter, the “Debt Financing Letters”), but subject to the Documentation Principles, except as otherwise set forth in Exhibit A and Exhibit B hereto, the terms of this Commitment Letter are intended as an outline of the material provisions of the Term Loan Facility, but do not include all of the terms that will be contained in the definitive documents relating to the Debt Financing (collectively, the “Definitive Debt Documents”); provided that there shall be no closing condition to the Term Loan Facility contained in the Definitive Debt Documents that is not specifically set forth in Section 3 hereof, on Exhibit A to this Commitment Letter under the heading “Conditions Precedent to Initial Borrowing” or on Exhibit B to this Commitment Letter.

 

2.                                      Titles and Roles.  As consideration for the Commitments, you hereby appoint (a) Jefferies Finance, together with any Additional Lead Arranger appointed in the manner contemplated below, and Jefferies Finance hereby agrees to act, as joint bookrunner and as joint lead arranger for the Term Loan Facility (each of Jefferies and each Additional Lead Arranger, in such capacity, a “Joint Lead Arranger”) and (b) Jefferies Finance to act, and Jefferies Finance hereby agrees to act, as sole administrative agent and sole collateral agent for the Term Loan Facility.  It is understood and agreed that

 

2

 

no other titles shall be awarded and no compensation (other than that expressly contemplated by the Debt Financing Letters) shall be paid in connection with the Term Loan Facility, unless mutually agreed, provided that, (i) on or prior to the date which is fifteen business days after the date of this Commitment Letter, you may, in consultation with us, appoint additional agents, co-agents, lead arrangers and bookrunners (any such agent, co-agent, lead arranger, bookrunner, manager or arranger, an “Additional Lead Arranger”) in a manner and with economics determined by you and reasonably acceptable to us; provided that Jefferies Finance shall have no less than 75% of the total economics with respect to the Term Loan Facility (it being understood that, (a) such Additional Lead Arrangers (or their respective affiliates) (each, an “Additional Initial Lender”) shall assume a proportion of the commitments with respect to the Term Loan Facility that is equal to the proportion of the financial consideration hereunder and under the Fee Letter allocated to such Additional Lead Arrangers (or their affiliates) and (b) no Additional Lead Arranger (nor any affiliate thereof) shall receive greater financial consideration in respect of the Term Loan Facility than that received by Jefferies Finance) and (ii) to the extent that you do not appoint one or more Additional Lead Arrangers and Additional Initial Lenders that, together, assume at least 25% of the commitments with respect to the Term Loan Facility during such fifteen business day period, Jefferies Finance shall have the right, after the expiration of such period, in consultation with you, to appoint one Additional Lead Arranger that (together with its affiliated Additional Initial Lender or Additional Initial Lenders), assumes commitments under the Term Loan Facility such that we and our affiliates hold 75% or less of the commitments under the Term Loan Facility, provided that Jefferies Finance shall not appoint any Additional Lead Arranger if it (or its affiliated Additional Initial Lender) is a Disqualified Person.  Upon the execution and delivery by such Additional Lead Arrangers, you and us of customary joinder documentation and, thereafter, each such Additional Lead Arrangers (or its affiliates) shall constitute an “Initial Lender” and “Joint Lead Arranger,” as applicable, under this Commitment Letter and under the Fee Letter.  You further agree that Jefferies Finance shall have “left” placement in any and all marketing materials or other documentation used in connection with the Term Loan Facility and shall hold the leading role and responsibilities customarily associated with such “left” placement.

 

3.                                      Conditions Precedent.  The closing of the Term Loan Facility and the making of the initial loans under the Term Loan Facility on the Closing Date are conditioned upon (and solely upon) the satisfaction or waiver by us of each of the following conditions: (i) since the date hereof, no Company Material Adverse Effect (as defined below) shall have occurred, and no event shall have occurred that, individually or in the aggregate, with or without notice or the lapse of time, would reasonably be expected to result in a Company Material Adverse Effect; (ii) the other conditions expressly set forth in Exhibit A under the heading “Conditions Precedent to Initial Borrowing”; and (iii) the other conditions expressly set forth in Exhibit B to this Commitment Letter.

 

For purposes hereof, “Company Material Adverse Effect” means any change, effect, event, occurrence, state of facts or development that is materially adverse to the business, condition (financial or otherwise) or results of operations of the Target and its subsidiaries taken as a whole; provided, however, that none of the following shall be deemed, either alone or in combination, to constitute, and none of the following shall be taken into account in determining whether there has been, will be, would or could be, or could or would reasonably be expected to have or result in, a Company Material Adverse Effect: (a) any failure by the Target or any of its subsidiaries to meet any internal or published projections, forecasts, or revenue or earnings predictions; (b) any adverse change, effect, event, occurrence, state of facts or development to the extent attributable to the announcement, pendency or consummation of the transactions contemplated by the Acquisition Agreement or any of the Ancillary Agreements (as defined in the Acquisition Agreement) (including any disruption in supplier, distributor, partner or similar relationships or any loss of employees); (c) any adverse change, effect, event, occurrence, state of facts or development attributable to conditions affecting (i) the industries in which any the Target or any of its subsidiaries participates (including fluctuating conditions resulting from cyclicality, seasonality or

 

3

 

weather patterns affecting the Target or any of its subsidiaries, including their respective customers and suppliers) or (ii) national, regional, local, international or global economies; (d) any adverse change, effect, event, occurrence, state of facts or development resulting from or relating to compliance with the terms of, or the taking of any action required or permitted by, the Acquisition Agreement or any of the Ancillary Agreements; (e) any adverse change, effect, event, occurrence, state of facts or development arising from or relating to any change in accounting requirements or principles or any change in any laws; (f) any adverse change, effect, event, occurrence, state of facts or development arising in connection with natural disasters or acts of nature, hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of war, sabotage or terrorism or military actions existing or underway as of the date hereof; (g) the effect of any action taken by the Acquiror, Merger Sub (as defined in the Acquisition Agreement) or any of their respective affiliates in breach of the Acquisition Agreement that could reasonably be expected to result in a change, effect, event, occurrence, state of facts or development that is materially adverse to the business, condition (financial or otherwise) or results of operations of the Target or its subsidiaries; or (h) any change in political regimes, conditions or climate whether in the United States or any other country or jurisdiction; provided, that the exceptions in clauses (c), (e), (f) or (h) above shall apply only to the extent such change, effect, event, occurrence, state of facts or development referred to in such exception does not have a materially disproportionate impact on the Target and its subsidiaries, taken as a whole, relative to other persons operating in the industries in which the Target and its subsidiaries operate.

 

Notwithstanding anything in the Debt Financing Letters, the Definitive Debt Documents or any other letter agreement or other undertaking concerning the financing of the Transactions to the contrary, (i) the only representations and warranties the accuracy of which shall be a condition to the availability of the Term Loan Facility and the making of the initial loans on the Closing Date shall be (A) such of the representations and warranties with respect to the Acquired Business made by the Sellers in the Acquisition Agreement as are material to the interests of the Lenders or the Joint Lead Arrangers, but only to the extent that you have (or your applicable affiliate has) the right to terminate your (or its) obligations under the Acquisition Agreement or decline to consummate the Acquisition as a result of a breach of such representations and warranties (as determined without giving effect to any waiver, amendment, consent or other modification thereto) (collectively, the “Specified Acquisition Agreement Representations”) and (B) the Specified Representations (as defined below) made by the Borrower and the Guarantors under the Definitive Debt Documents and (ii) the terms of the Definitive Debt Documents and closing deliverables shall be in a form such that they do not impair availability of the Term Loan Facility and the making of the initial loans on the Closing Date if the conditions expressly set forth in the first paragraph of this Section 3 are satisfied or waived by us (it being understood that, to the extent any lien or security interest on or in any Collateral (other than to the extent that a lien on such Collateral may be perfected (x) by the filing of a financing statement under the Uniform Commercial Code or (y) by the delivery of stock certificates of the Borrower and its subsidiaries (which stock certificates shall be delivered on the Closing Date, provided that if after using commercially reasonable efforts such stock certificates cannot be delivered on the Closing Date, then such stock certificates must be delivered within five (5) Business Days after the Closing Date, as such period may be extended by the Administrative Agent in its sole discretion) which are required to be delivered under Exhibit A to this Commitment Letter) or is not or cannot be perfected on the Closing Date after your use of commercially reasonable efforts to do so, the perfection of such Collateral shall not constitute a condition precedent to the availability of the Term Loan Facility and the making of the initial loans on the Closing Date, but shall be required to be perfected within 90 days after the Closing Date (subject to extensions by the Administrative Agent, in its sole discretion).  For purposes hereof, “Specified Representations” means the representations and warranties of the Loan Parties set forth in the Definitive Debt Documents relating to corporate or other organizational existence of the Borrower and Guarantors, organizational power and authority (as to execution, delivery and performance of the applicable Definitive Debt Documents) of the Borrower and Guarantors, the due authorization, execution, delivery and enforceability of the applicable

 

4

 

Definitive Debt Documents, solvency of the Borrower and its subsidiaries (which representation shall be consistent with the representation contained in Exhibit C hereto), no conflicts resulting from the entering into and performance of the Definitive Debt Documents with charter documents of the Borrower and Guarantors, Federal Reserve margin regulations, the Patriot Act, FCPA, OFAC, the Investment Company Act and, subject to permitted liens and the limitations set forth in the prior sentence, the creation, validity, perfection and priority of security interests in the Collateral (subject, in each case, to certain customary exceptions to be set forth in the Definitive Debt Documents and consistent with the Documentation Principles).  This paragraph shall be referred to herein as the “Certain Funds Provision”.

 

4.                                      Syndication.

 

(a)                                 Each Joint Lead Arranger reserves the right, at any time after the date hereof and prior to or after execution of the Definitive Debt Documents, to syndicate all or part of its (or its affiliated Initial Lender’s) Commitment to a syndicate of banks, financial institutions and other entities identified by the Joint Lead Arrangers in consultation with you and subject to your consent (which shall not be unreasonably withheld or delayed) (collectively with the Initial Lenders, the “Lenders”); provided that the Joint Lead Arrangers will not syndicate to (i) certain banks, financial institutions and other lenders or competitors of the Borrower or the Target that have been specified to us by you or in writing prior to the date hereof and (ii) any of the affiliates of such persons listed in clause (i) that are either (x) identified in writing by you prior to the Closing Date or (y) clearly identifiable on the basis of such affiliates’ names (the parties described in clauses (i) and (ii) above, collectively, “Disqualified Persons”); provided that the Borrower, upon reasonable notice to the Joint Lead Arrangers after the date hereof, shall be permitted to supplement in writing by name the list of persons that are Disqualified Persons to the extent such supplemented person becomes (x) a competitor of, or is or becomes an affiliate of, a competitor of the Borrower or the Target or their respective subsidiaries or (y) an affiliate of a Disqualified Person, which supplement shall be in the form of a list provided to the Administrative Agent, the Joint Lead Arrangers and the Lenders and become effective two business days after delivery to the Administrative Agent, the Joint Lead Arrangers and the Lenders, but which shall not apply retroactively to disqualify any parties that have previously acquired an assignment or participation interest in the Term Loan Facility; provided further that any bona fide debt fund or investment vehicle (other than a bona fide debt fund or investment vehicle that is separately identified under clause (i) above) that is engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit and securities in the ordinary course of business shall not be considered to be a competitor or an affiliate of a competitor; provided further that notwithstanding our right to syndicate the Commitments, (i) no Initial Lender shall be relieved, released or novated from its several obligation to fund the Term Loan Facility on the Closing Date in connection with any syndication, assignment or participation of the Term Loan Facility, including our respective Commitments in respect thereof, until after the Closing Date has occurred, (ii) no assignment or novation by us shall become effective as between us and you with respect to all or any portion of our respective Commitments until the initial funding of the Term Loan Facility and (iii) we shall retain exclusive control over the rights and obligations with respect to our respective Commitments in respect of the Term Loan Facility, including all rights with respect to consents, modifications, supplements and amendments, until the Closing Date has occurred, in each case, unless you and we agree in writing.  The Joint Lead Arrangers will exclusively manage all aspects of any such syndication in consultation with you, including decisions as to the selection of prospective Lenders to be approached, when they will be approached, when their commitments will be accepted, which prospective Lenders will participate, the allocation of the commitments among the Lenders, and the amount and distribution of fees.  Notwithstanding anything to the contrary contained in this Section 4, this Commitment Letter or the Fee Letter or any other letter agreement or undertaking concerning the financing of the Transactions to the contrary, unless otherwise expressly set forth on Exhibit B hereto, your obligations to assist in syndication efforts as provided herein (including the obtaining of the ratings referenced above) shall not constitute a condition to the Commitments hereunder or the funding of the Term Loan Facility on the

 

5

 

Closing Date, and the Commitments hereunder are not conditioned upon the syndication of or receipt of commitments in respect of the Term Loan Facility and in no event shall the commencement or successful completion of syndication of the Term Loan Facility constitute a condition to the availability of the Term Loan Facility and the making of the initial loans on the Closing Date.

 

(b)                                 We intend to commence our syndication efforts promptly upon your execution of this Commitment Letter, and you agree to use commercially reasonable efforts to assist us until the date that is the earlier of (i) 60 days after the Closing Date and (ii) the date on which a Successful Syndication (as defined in the Fee Letter) is achieved but in no event shall such date be earlier than the Closing Date (such earlier date referred to in clause (i) and (ii), the “Syndication Date”).  Such assistance shall include:

 

(i)                                     your using commercially reasonable efforts to ensure that our syndication efforts benefit from your existing lending and investment banking relationships and, to the extent reasonably requested by you, existing lending and investment banking relationships of the Acquired Business,

 

(ii)                                  your providing direct contact between appropriate members of your senior management, representatives and non-legal advisors, on the one hand, and the proposed Lenders, on the other hand (and (x) prior to the consummation of the Acquisition, your using commercially reasonable efforts (subject to the limitations on your rights set forth in the Acquisition Agreement, but including exercising your rights thereunder) to cause, and (y) thereafter, your causing, direct contact between appropriate members of senior management of the Acquired Business, on the one hand, and the proposed Lenders, on the other hand),

 

(iii)                               your assistance (and (x) prior to the consummation of the Acquisition, your using commercially reasonable efforts to cause, and (y) thereafter, your causing, the Acquired Business to assist) in the preparation of one or more customary confidential information memoranda for the Term Loan Facility (each, a “Confidential Information Memorandum”) and other customary marketing materials to be used in connection with the syndication of our Commitments (together with all Confidential Information Memoranda, the “Materials”), by providing such information and other customary materials as we may reasonably request in connection with the preparation of such Confidential Information Memoranda, including, in the case of information concerning the Acquired Business, by requiring the furnishing of information required to be furnished under the Acquisition Agreement, but subject to the limitations on your rights thereunder,

 

(iv)                              your using commercially reasonable efforts to obtain prior to the launch of primary syndication of the Term Loan Facility a monitored public corporate rating and a monitored public corporate family rating for the Borrower from each of Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”), respectively, and monitored public facility ratings from each of S&P and Moody’s for the Term Loan Facility (but, for the avoidance of doubt, not any specific rating in either such case), and

 

(v)                                 your hosting, with us, of meetings with prospective Lenders at such times and in such places as mutually agreed (including one general “bank meeting” and a reasonable number of “one on one” meetings), in each case to the extent reasonably requested by us and at such times and places as you and we, acting reasonably, may agree and, to the extent we request that senior management or appropriate representatives of the Acquired Business attend such meetings, you shall use your commercially reasonably efforts to cause them so to attend (without violation of the Acquisition Agreement, but including by exercising your rights thereunder).

 

6

 

(c)                                  You agree, at our request, to assist in the preparation of a version of any Materials consisting exclusively of information and documentation that is either (i) publicly available or (ii) not material with respect to the Acquiror, the Target, or any of their respective subsidiaries for purposes of United States federal and state securities laws (such information and Materials, “Public Information”).  In addition, you agree that, unless specifically labeled “Private — Contains Non-Public Information,” no Materials disseminated to potential Lenders in connection with the syndication of the Term Loan Facility, whether through an Internet website, electronically, in presentations, at meetings or otherwise, will contain any Material Non-Public Information (as defined below).  Any information and documentation that is not Public Information is referred to herein as “Material Non-Public Information.” It is understood that in connection with your assistance described above, authorization letters will be included in any information package and presentation whereby you authorize the distribution of such information to prospective Lenders, it being understood that (x) the authorization letter for Public Information shall contain a representation by you to the Lenders that the Public Information does not include any such Material Non-Public Information and each letter shall contain a customary “10b-5” representation and (y) each such information package and presentation shall exculpate you, the Target, your and their respective affiliates and us and our respective affiliates with respect to any liability related to the use of the contents of such information package and presentation or any related marketing material by the recipients thereof.  You acknowledge and agree that the following documents contain and shall contain solely Public Information (unless you notify us promptly that any such document contains Material Non-Public Information): (i) draft and final Definitive Debt Documents with respect to the Term Loan Facility, (ii) customary administrative materials prepared by us for prospective Lenders (including a lender meeting invitation, Lender allocations, if any, and funding and closing memoranda), and (iii) term sheets and notification of changes in the terms of the Term Loan Facility.  You agreed to identify Public Information by clearly and conspicuously marking the same as “PUBLIC”.

 

(d)                                 You agree that all Materials and Information (as defined below) (including draft and execution versions of the Definitive Debt Documents and draft or final offering materials relating to contemporaneous securities issuances by the Borrower) may be disseminated for syndication purposes in accordance with our standard syndication practices (including through hard copy and via one or more internet sites (including an IntraLinks, SyndTrak or similar workspace), e-mail or other electronic transmissions).  Without limiting the foregoing, you authorize, and will use commercially reasonable efforts to maintain the contractual undertakings from the Acquired Business to authorize, the use of your and (subject to the limitations thereon set forth in the Acquisition Agreement) its logos in connection with any such dissemination.  You further agree that, at our expense, we may place advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of information on the Internet or worldwide web as we may choose, and circulate similar promotional materials, after the closing of the Transactions in the form of a “tombstone” or otherwise, containing information customarily included in such advertisements and materials, including (i) the names of the Acquiror, the Target and your and its respective affiliates (or any of them), (ii) our and our respective affiliates’ titles and roles in connection with the Transactions, and (iii) the amount, type and closing date of such Transactions, but subject to the limitations on disclosure of confidential information set forth in Section 9 hereof.

 

Notwithstanding anything to the contrary contained in this Commitment Letter or the Fee Letter, (i) none of the foregoing requirements of this Section 4 shall constitute a condition to the commitments hereunder or the funding of the Term Loan Facility on the Closing Date and (ii) neither the commencement nor the completion of the syndication of the Term Loan Facility shall constitute a condition precedent to the Closing Date or delay or interfere in any way with the negotiation of the Term Loan Facility and/or the funding thereof.

 

7

 

5.                                      Information.  You represent and warrant with respect to the Acquiror, the Target and your and its respective subsidiaries (provided that, with respect to information relating to the Target and its subsidiaries, such representation and warranty is to your knowledge) that:

 

(a)                                 all written information (excluding, for this purpose, all immaterial information) and data other than the Projections (as defined below), forward- looking information and information of a general economic or industry-specific nature (the “Information”) that has been or will be made available to us by or on behalf of you or any of your representatives with respect to the Acquiror, the Target or your or its respective subsidiaries in connection with the Transactions does not and will not, when taken as a whole, when furnished or on the Closing Date, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not materially misleading, taken as a whole, in light of the circumstances under which such statements are made, and

 

(b)                                 all projections, forecasts and other forward-looking information that have been or will be made available to us by you or on your behalf with respect to you, the Acquired Business or any of your or its respective subsidiaries (collectively, the “Projections”) have been or will be prepared in good faith based upon assumptions that are believed by you to be reasonable at the time made (it being understood that any such Projections are not to be viewed as facts, are not a guarantee of financial performance and are subject to uncertainties and contingencies, many of which are beyond your control, that no assurance can be given that any particular Projections will be realized, that actual results may differ and that such differences may be material).

 

You agree that, if at any time prior to the later of the Closing Date and the Syndication Date, you become aware that any of the representations and warranties in the preceding sentence would be incorrect in any material respect if the Information or Projections were then being furnished and such representations and warranties were then being made, you shall, at such time, supplement promptly such Information and/or Projections, as the case may be, in order that such representations and warranties (and with respect to the Target and its subsidiaries prior to the Closing Date, to your knowledge) will be correct in all material respects under those circumstances (and any such supplementation shall cure any breach of such representation and warranty).

 

You shall be solely responsible for Information, including the contents of all Materials.  We (i) will be relying on Information and data provided by or on behalf of you and the Acquired Business or any of your or its representatives or otherwise available from generally recognized public sources, without having independently verified the accuracy or completeness of the same, (ii) do not assume responsibility for the accuracy or completeness of any such Information and data and (iii) will not make an appraisal of your assets or liabilities or the assets or liabilities of the Acquired Business.

 

6.                                      Clear Market.  You agree that, from the date hereof until the Syndication Date, you and your subsidiaries will not, and you will use commercially reasonable efforts not to permit the Acquired Business to, directly or indirectly, (i) syndicate, place, sell or issue, (ii) attempt or offer to syndicate, place, sell or issue, (iii) announce or authorize the announcement of the syndication, placement, sale or issuance of, or (iv) engage in discussions concerning the syndication, placement, offering, sale or issuance of, any debt facility, debt security or convertible or equity-linked security or obligation (but excluding common equity and preferred stock not redeemable at the option of the holder thereof) of you, the Target or any of your or its respective subsidiaries (other than (w) financings by the purchaser of the Women’s Health Division in connection with its acquisition of such division, (x) the Debt Financing contemplated hereby, (y) letters of credit, capital leases, purchase money indebtedness, equipment financings and, in the case of the Acquired Business, drawings under its revolving credit facility, in each case in the ordinary course of business, and, (z) in the case of the Target and its subsidiaries, indebtedness permitted to be

 

8

 

incurred under the Acquisition Agreement), including any renewals or refinancings of any existing debt facility, without our prior written consent.

 

7.                                      Fees and Expenses.  As consideration for the Commitment and our other undertakings hereunder, you hereby agree to pay or cause to be paid to us the fees, expenses and other amounts set forth in the Debt Financing Letters on the terms and conditions set forth therein.

 

8.                                      Indemnification and Waivers.  You agree to indemnify and hold harmless the Joint Lead Arrangers, the Lenders and our and their respective affiliates (including, without limitation, controlling persons) and each director, officer, employee, advisor, agent, affiliate, successor, partner, representative and assign of each of the foregoing (each an “Indemnified Person”) from and against any and all actions, suits, investigation, inquiry, claims, actual losses, damages, liabilities or proceedings of any kind or nature whatsoever which may be incurred by or asserted against or involve any such Indemnified Person as a result of or arising out of or in any way related to or resulting from the Debt Financing Letters, the Term Loan Facility, the use of proceeds thereof, the Transactions or the other transactions contemplated hereby or thereby (regardless of whether any such Indemnified Person is a party thereto and regardless of whether such matter is initiated by a third party or otherwise) (any of the foregoing, a “Proceeding”), and you agree to reimburse each Indemnified Person within 30 days after written demand therefor (which request shall include reasonably detailed backup documentation) for any reasonable and documented legal or other out-of-pocket expenses incurred in connection with investigating, defending, preparing to defend or participating in any such Proceeding (limited, in the case of legal fees and expenses, to one firm of primary counsel to such Indemnified Persons taken as a whole (and one or more firm of additional counsel as a result of any actual or reasonably perceived conflicts of interest for each class of similarly situated Indemnified Persons) and any reasonably necessary local counsel in each applicable jurisdiction); provided, however, that no Indemnified Person will be indemnified for any such cost, expense or liability (a) to the extent determined by a final non-appealable judgment of a court of competent jurisdiction to have resulted from (i) the gross negligence, bad faith or willful misconduct of such Indemnified Person or its affiliates or (ii) a material breach of such Indemnified Person’s or its affiliate’s obligations under the Debt Financing Letters or (b) any dispute among Indemnified Persons (other than a dispute involving claims against any of us in our capacity as administrative agent or arranger or any other agent or co-agent (if any) designated with respect to the Term Loan Facility) that a court of competent jurisdiction has determined in a final non- appealable decision did not result from actions or omissions of the Acquiror, the Target or their respective direct or indirect parents, controlling persons or subsidiaries.  In the case of any Proceeding to which the indemnity in this paragraph applies, such indemnity and reimbursement obligations shall be effective, whether or not such Proceeding is brought by you, the Target, any of your or their respective affiliates, securityholders or creditors, an Indemnified Person or any other person, or an Indemnified Person is otherwise a party thereto and whether or not any aspect of the Debt Financing Letters, the Term Loan Facility or any of the Transactions is consummated.

 

Notwithstanding any other provision of this Commitment Letter, (i) no Indemnified Person shall be liable for any damages arising from the use by others of information or other materials obtained through internet, electronic, telecommunications or other information transmission systems, except to the extent that such damages have resulted from the willful misconduct, bad faith or gross negligence of such Indemnified Person or any of such Indemnified Person’s affiliates or any of its or their respective officers, directors, employees, agents, advisors or other representatives, in each case who are involved in or aware of the Transactions as determined by a final, non-appealable judgment of a court of competent jurisdiction and (ii) without in any way limiting the indemnification obligations set forth above, none of us, you, the Target or any Indemnified Person shall be liable for any indirect, special, punitive or consequential damages (including, without limitation, any loss of profits, business or anticipated savings) in connection with this Commitment Letter, the Fee Letter, the Transactions (including the Term Loan Facility and the use of proceeds thereunder), or with respect to any activities related to the Term Loan Facility, including

 

9

 

the preparation of this Commitment Letter, the Fee Letter and the Definitive Debt Documents; provided, that nothing contained in the preceding clause (ii) shall limit your indemnification obligations set forth herein to the extent that such indirect, special, punitive or consequential damages are included in any third party claim in connection with which such Indemnified Person is entitled to indemnification hereunder.

 

You shall not be liable for any settlement of any Proceeding effected without your written consent (which consent shall not be unreasonably withheld or delayed), but if settled with your written consent or if there is a judgment by a court of competent jurisdiction in any such Proceeding, you agree to indemnify and hold harmless each Indemnified Person from and against any and all losses, claims, damages, liabilities and expenses by reason of such settlement or judgment in accordance with the other provisions of this Section 8.

 

You shall not, without the prior written consent of the affected Indemnified Person (which consent shall not be unreasonably withheld or delayed, it being understood that an Indemnified Person may withhold consent to a settlement that does not satisfy the criteria in clauses (i) and (ii) below), effect any settlement of any pending or threatened proceedings in respect of which indemnity could have been sought hereunder by such Indemnified Person unless such settlement (i) includes an unconditional release of such Indemnified Person in form and substance reasonably satisfactory to such Indemnified Person from all liability or claims that are the subject matter of such proceedings and (ii) does not include any statement as to or any admission of fault, culpability, wrong doing or a failure to act by or on behalf of any Indemnified Person.  Notwithstanding the foregoing, each Indemnified Person shall be obligated to refund and/or return promptly any and all amounts paid by you or on your behalf under this paragraph to such Indemnified Person for any such losses, claims, damages, liabilities and expenses to the extent such Indemnified Person is not entitled to payment of such amounts in accordance with the terms hereof.

 

9.                                      Confidentiality.  This Commitment Letter and the Fee Letter are each delivered to you on the understanding that neither this Commitment Letter, the Fee Letter nor any of their terms or substance will be disclosed, directly or indirectly, to any other person or entity except (a) this Commitment Letter (but not the Fee Letter) may be disclosed as required by the rules and regulations of the Securities and Exchange Commission (the “SEC”) in connection with any filings with the SEC in connection with the Transactions (in which case you agree to inform us promptly thereof), (b) pursuant to the order of any court or administrative agency in any pending legal or administrative proceeding, or as otherwise required by applicable law or compulsory legal process (and in either such case you agree to inform us promptly thereof and to cooperate with us in securing a protective order in respect thereof to the extent lawfully permitted to do so), (c) to you and your officers, directors, employees, stockholders, affiliates, agents, attorneys, accountants and advisors on a confidential and need to know basis and only in connection with the Transactions, (d) the Term Sheets may be disclosed to rating agencies in connection with their review of the Term Loan Facility or the Borrower, (e) the information contained in this Commitment Letter (but not that contained in the Fee Letter) may be disclosed in any Confidential Information Memorandum or in connection with the syndication of the Term Loan Facility, (f) this Commitment Letter (but not the Fee Letter) may be disclosed to the Target, the Sellers, their direct and indirect equity holders and their respective officers, directors, employees, attorneys, accountants, agents and advisors, in each case on a confidential basis and only in connection with the Transactions, (g) to the extent portions thereof have been redacted in a manner reasonably agreed by us, you may disclose the Fee Letter and each of the contents thereof to the Target, the Sellers and their respective officers, directors, employees, attorneys, accountants and advisors, in each case on a confidential basis and only in connection with the Transactions, (h) you may disclose the Commitment Letter and the Fee Letter and the contents hereof and thereof on a confidential basis to any Additional Lead Arranger, Additional Initial Lender or affiliate thereof (or any prospective Additional Lead Arrangers, Additional Initial Lender or affiliate thereof) or their respective counsel and (i) after the Closing Date, you may disclose to the Acquired Business’s auditors the Fee Letter and the contents thereof for customary accounting purposes, including accounting

 

10

 

for deferred financing costs.  You may also disclose, on a confidential basis, the aggregate amount of fees (including original issue discount) payable under the Fee Letter as part of a generic disclosure regarding sources and uses (but without disclosing any specific fees or “flex” or other economic terms set forth therein) in connection with the syndication of the Term Loan Facility.

 

We and our affiliates shall use all non-public information received by us and them from you, the Target or your or its respective subsidiaries and representatives in connection with the Transactions solely for the purposes of providing the services contemplated by the Debt Financing Letters and shall treat confidentially all such non-public information; provided, however, that nothing herein shall prevent us from disclosing any such information (a) on a customary basis, to Moody’s and S&P in connection with obtaining ratings in connection with the Transactions, (b) to any Lenders or participants or prospective Lenders or participants (other than persons who have, on the date of disclosure, effectively been designated as Disqualified Persons) and to any direct or indirect contractual counterparty to any credit default swap or similar derivative product (other than Disqualified Persons), (c) in any legal, judicial, administrative proceeding or other compulsory process or otherwise as required by applicable law, rule or regulations (in which case we will promptly notify you, in advance, to the extent practicable and permitted by law, rule or regulation, except in connection with any request as part of any regulatory audit or examinations conducted by accountants or any governmental regulatory authority exercising examination or regulatory authority), (d) upon the request or demand of any governmental or regulatory authority having jurisdiction over us or upon the good faith determination by counsel that such information should be disclosed in light of ongoing oversight or review by any governmental or regulatory authority having jurisdiction over us (in which case we shall, to the extent practicable and permitted by law, rule or regulation, except with respect to any audit or examination conducted by accountants or any governmental regulatory authority exercising examination or regulatory authority, promptly notify you, in advance, to the extent lawfully permitted to do so), (e) to our officers, directors, employees, legal counsel, independent auditors, professionals and other experts or agents working on the Transactions (collectively, “Representatives”) and who are informed of the confidential nature of such information and are or have been advised of their obligation to keep information of this type confidential, (f) to any of our affiliates or Representatives of our affiliates (provided that any such affiliate or Representative is advised of its obligation to retain such information as confidential) solely in connection with the Transactions, (g) to the extent any such information is or becomes publicly available other than by reason of improper disclosure by us, our affiliates or Representatives in breach of this Commitment Letter, (h) to the extent that any such information is independently developed by us, any of our affiliates or any of our Representatives, (i) to the extent that such information is received by us or our affiliates from a third party that is not to our or our respective affiliates’ knowledge subject to confidentiality obligations to you and (j) to establish a “due diligence” defense, if applicable; provided that the disclosure of any such information to any Lenders or prospective Lenders or participants or prospective participants referred to above shall be made subject to the acknowledgment and acceptance by such Lenders or prospective Lenders or participant or prospective participant that such information is being disseminated on a confidential basis (on substantially the terms set forth in this paragraph or as is otherwise reasonably acceptable to you and us, including, without limitation, as agreed in any confidential information memorandum or other marketing materials) in accordance with our standard syndication processes or customary market standards for dissemination of such type of information.  Our obligations under this paragraph shall terminate two years from the date hereof.

 

Notwithstanding anything herein to the contrary, you and we (and any of your and our employees, representatives or other agents) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by the Debt Financing Letters and all materials of any kind (including opinions or other tax analyses) that are provided to you or us relating to such tax treatment and tax structure, except that (i) tax treatment and tax structure shall not include the identity of any existing or future party (or any affiliate of such party) to any Debt Financing

 

11

 

Letter, and (ii) neither you nor we shall disclose any information relating to such tax treatment and tax structure to the extent nondisclosure is reasonably necessary in order to comply with applicable securities laws.  For this purpose, the tax treatment of the transactions contemplated by the Debt Financing Letters is the purported or claimed U.S. federal income tax treatment of such transactions and the tax structure of such transactions is any fact that may be relevant to understanding the purported or claimed U.S. federal income tax treatment of such transactions.

 

10.                               Conflicts of Interest; Absence of Fiduciary Relationship.  You acknowledge and agree that:

 

(a)                                 each of us and/or our affiliates and subsidiaries (each, a “Commitment Party Group”), in our and their capacities as principal or agent, are involved in a wide range of commercial banking and investment banking activities globally (including investment advisory, asset management, research, securities issuance, trading, and brokerage) from which conflicting interests or duties may arise and, therefore, conflicts may arise between (i) our interests and duties hereunder and (ii) the duties or interests or other duties or interests of another member of our respective Commitment Party Group,

 

(b)                                 we and any other member of a Commitment Party Group may, at any time, (i) provide services to any other person, (ii) engage in any transaction (on our or its own account or otherwise) with respect to you or any member of the same group as you or (iii) act in relation to any matter for any other person whose interests may be adverse to you or any member of your group (a “Third Party”), and may retain for our or its own benefit any related remuneration or profit, notwithstanding that a conflict of interest exists or may arise and/or any member of a Commitment Party Group is in possession or has come or comes into possession (whether before, during or after the consummation of the transactions contemplated hereunder) of information confidential to you; provided that such confidential information shall not be used by us or any other member of a Commitment Party Group in performing services or providing advice to any Third Party.  You accept that permanent or ad hoc arrangements/information barriers may be used between and within our divisions or divisions of other members of a Commitment Party Group for this purpose and that locating directors, officers or employees in separate workplaces is not necessary for such purpose,

 

(c)                                  information that is held elsewhere within us or a member of the Commitment Party Group, but of which none of the individual directors, officers or employees having primary responsibility for the consummation of the transactions contemplated by this Commitment Letter actually has knowledge (or can properly obtain knowledge without breach of internal procedures), shall not for any purpose be taken into account in determining our responsibilities to you hereunder,

 

(d)                                 neither we nor any other member of a Commitment Party Group shall have any duty to disclose to you, or utilize for your benefit, any non-public information acquired in the course of providing services to any other person, engaging in any transaction (on our or its own account or otherwise) or otherwise carrying on our or its business,

 

(e)                                  (i) neither we nor any of our affiliates have assumed any advisory responsibility or any other obligation in favor of the Acquiror, the Target or any of its or their affiliates except the obligations expressly provided for under the Debt Financing Letters, (ii) we and our affiliates, on the one hand, and the Acquiror and its affiliates, on the other hand, have an arm’s-length business relationship that does not directly or indirectly give rise to, nor does the Acquiror or any of its affiliates rely on, any fiduciary duty on the part of us or any of our affiliates and (iii) we are (and are affiliated with) full service financial firms and as such may effect from time to time transactions for our own account or the account of customers, and hold long or short positions in debt, equity-linked or equity securities or loans of companies that may be the subject of the transactions contemplated by this Commitment Letter (and, in

 

12

 

particular, we and any other member of a Commitment Party Group may at any time hold debt or equity securities for our or its own account in the Borrower).  With respect to any securities and/or financial instruments so held by us, any of our affiliates or any of our respective customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of such rights, in its sole discretion.  You hereby waive and release, to the fullest extent permitted by law, any claims you have, or may have, with respect to (i) any breach or alleged breach of fiduciary duty (and agree that we shall have no liability (whether direct or indirect) to you in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of you, including your stockholders, employees or creditors) and (ii) any conflict of interest arising from such transactions, activities, investments or holdings, or arising from our failure or the failure of any of our affiliates to bring such transactions, activities, investments or holdings to your attention, and

 

(f)                                   neither we nor any of our affiliates are advising you as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction.  You shall consult with your own advisors concerning such matters and shall be responsible for making your own independent investigation and appraisal of the transactions contemplated by the Debt Financing Letters, and neither we nor our affiliates shall have responsibility or liability to you with respect thereto.  Any review by us, or on our behalf, of the Company, the Transactions, the other transactions contemplated by the Debt Financing Letters or other matters relating to such transactions will be performed solely for our benefit and shall not be on behalf of you or any of your affiliates.

 

11.                               Choice of Law; Jurisdiction; Waivers.  The Debt Financing Letters, and any claim, controversy or dispute arising under or related to the Debt Financing Letters (whether in contract or tort), shall be governed by, and construed in accordance with, the laws of the State of New York without regard to conflict of law principles (other than sections 5-1401 and 5-1402 of the New York General Obligations Law); provided, however, that the interpretation of any provisions of the Acquisition Agreement referred to in this Commitment Letter, including the determination of the accuracy of the Specified Acquisition Agreement Representations and the definition of “Company Material Adverse Effect” shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.  To the fullest extent permitted by applicable law, each of the parties hereto hereby irrevocably submits to the exclusive jurisdiction of any New York State court or federal court sitting in the County of New York and the Borough of Manhattan in respect of any claim, suit, action or proceeding arising out of or relating to the provisions of any Debt Financing Letter and irrevocably agrees that all claims in respect of any such claim, suit, action or proceeding may be heard and determined in any such court and that service of process therein may be made by certified mail, postage prepaid, to its address set forth above and further agree that a final judgment in any such suit, action or proceeding shall be conclusive and many be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  You and we hereby waive, to the fullest extent permitted by applicable law, any objection that you or we may now or hereafter have to the laying of venue of any such claim, suit, action or proceeding brought in any such court, and any claim that any such claim, suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  You and we hereby waive, to the fullest extent permitted by applicable law, any right to trial by jury with respect to any claim, suit, action or proceeding (whether based upon contract, tort or otherwise) arising out of or relating to the Debt Financing Letters, any of the Transactions or any of the other transactions contemplated hereby or thereby.  The provisions of this Section 11 are intended to be effective upon the execution of this Commitment Letter without any further action by you or us, and the introduction of a true copy of this Commitment Letter into evidence shall be conclusive and final evidence as to such matters.

 

13

 

12.                               Miscellaneous.

 

(a)                                 This Commitment Letter may be executed in one or more counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument.  Delivery of an executed signature page of this Commitment Letter by facsimile, PDF or other electronic transmission will be effective as delivery of a manually executed counterpart hereof.

 

(b)                                 You may not assign any of your rights, or be relieved of any of your obligations, under this Commitment Letter without our prior written consent, which may be given or withheld in our reasonable discretion (and any purported assignment without such consent, at our sole option, shall be null and void) except that you may assign your rights hereunder without our prior written consent (x) to any of your subsidiaries that is a domestic “shell” company controlled by you that consummates or intends to consummate the Acquisition (including Snowbird, Inc., a Delaware corporation (“Merger Sub”)), so long as (i) you remain liable for all of your obligations hereunder and under the Fee Letter, (ii) the Fee Letter is contemporaneously assigned to the applicable assignee and (iii) such assignee agrees to be obligated on this Commitment Letter and the Fee Letter pursuant to documentation reasonably satisfactory to us and (y) in connection with any other assignment that occurs as a matter of law pursuant to, or otherwise substantially simultaneously with, the Acquisition at the closing of the Acquisition in accordance with the Acquisition Agreement.  We may at any time and from time to time assign all or any portion of our Commitment hereunder to one or more of our affiliates (provided that, unless you otherwise consent in writing to such assignment, we will remain liable for our obligations hereunder until the funding of the Term Loan Facility) or, subject to Sections 2 and 4 hereof, to one or more Lenders.  Any and all obligations of, and services to be provided by, us hereunder (including the Commitment) may be performed, and any and all of our rights hereunder may be exercised, by or through any of our affiliates or branches and we reserve the right to allocate, in whole or in part, to our affiliates or branches certain fees payable to us in such manner as we and our affiliates may agree in our and their sole discretion.  You further acknowledge that we may share with any of our affiliates, and such affiliates may share with us, any information relating to the Transactions, you or the Acquired Business (and your and their respective affiliates), or any of the matters contemplated in the Debt Financing Letters.

 

(c)                                  This Commitment Letter has been and is made solely for the benefit of you, us and the Indemnified Persons and your, our and their respective successors and assigns, and nothing in this Commitment Letter, expressed or implied, is intended to confer or does confer on any other person or entity any rights or remedies under or by reason of this Commitment Letter or your and our agreements contained herein.

 

(d)                                 The Debt Financing Letters set forth the entire understanding of the parties hereto as to the scope of the Commitment and our obligations hereunder and thereunder.  The Debt Financing Letters supersede all prior understandings and proposals, whether written or oral, between us and you relating to any financing or the transactions contemplated hereby and thereby.

 

(e)                                  You agree that we or any of our respective affiliates may disclose information about the Transactions to market data collectors and similar service providers to the financing community.

 

(f)                                   We hereby notify you that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “PATRIOT Act”), each of us and each of the Lenders may be required to obtain, verify and record information that identifies the Borrower and the Guarantors, which information may include their names, addresses, tax identification numbers and other information that will allow each of us and the Lenders to identify the Borrower and the Guarantors in accordance with the PATRIOT Act.  This notice is given in accordance with the requirements of the PATRIOT Act and is effective for each of us and the Lenders.

 

14

 

13.                               Amendment; Waiver.  This Commitment Letter may not be modified or amended except in a writing duly executed by the parties hereto.  No waiver by any party of any breach of, or any provision of, this Commitment Letter shall be deemed a waiver of any similar or any other breach or provision of this Commitment Letter at the same or any prior or subsequent time.  To be effective, a waiver must be set forth in writing signed by the waiving party.

 

14.                               Surviving Provisions.  Notwithstanding anything to the contrary in this Commitment Letter, except as set forth in the immediately succeeding sentence: (i) Sections 6 to and including 15 hereof shall survive the expiration or termination of this Commitment Letter, regardless of whether the Definitive Debt Documents have been executed and delivered or the Transactions consummated, and (ii) Sections  2, 4 and 6 to and including 13 hereof shall survive execution and delivery of the Definitive Debt Documents and the consummation of the Transactions.  Upon execution and delivery of the Definitive Debt Documents, except as otherwise provided in the immediately preceding sentence, the provisions of this Commitment Letter shall be superseded in their entirety by those set forth in the Definitive Debt Documents.

 

15.                               Acceptance, Expiration and Termination.  Please indicate your acceptance of the terms of the Debt Financing Letters by returning to us executed counterparts of the Debt Financing Letters not later than 5:00 p.m., New York City time, on September 28, 2014 (the “Deadline”).  The Debt Financing Letters are conditioned upon your contemporaneous execution and delivery to us, and the contemporaneous receipt by us, of executed counterparts of each Debt Financing Letter on or prior to the Deadline.  This Commitment Letter will expire at such time in the event that you have not returned such executed counterparts to us by such time.  Thereafter, except with respect to any provision that expressly survives pursuant to Section 14, this Commitment Letter (but not the Fee Letter) will terminate automatically on the earliest of (i) the date that is five business days after the valid termination of the Acquisition Agreement prior to the closing of the Acquisition, (ii) the closing of the Acquisition (unless the Initial Lenders have failed to fund in breach of their obligations hereunder), and (iii) 5:00 p.m., New York City time, on the earlier of (x) the Outside Date, as defined in the Acquisition Agreement (as such “Outside Date” may be extended pursuant to the terms thereof) and (y) January 30, 2015.

 

Each of the parties hereto agrees that this Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained herein, including an agreement to negotiate in good faith the Loan Documents by the parties hereto in a manner consistent with this Commitment Letter, it being acknowledged and agreed that the commitments provided hereunder by the Commitment Parties are subject only to the conditions precedent set forth in Section 3 hereof, including the execution and delivery of the Loan Documents (which shall be negotiated in good faith as required by the Documentation Principles).

 

[Signature Pages Follow.]

 

15

 

We are pleased to have the opportunity to work with you in connection with this important financing.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
JEFFERIES FINANCE LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian   Buoye
    
	
 
    	
 
    	
Name: Brian Buoye
    
	
 
    	
 
    	
Title: Managing Director
    

 

[Signature Page to Commitment Letter]

 

	
 
    
	
Accepted and agreed to as of the 
   date first above written:
    	
 
    
	
 
    	
 
    
	
AMAG PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Scott   A. Holmes
    	
 
    
	
 
    	
Name: Scott A. Holmes 
    	
 
    
	
 
    	
Title: Senior Vice President Finance and Investor   Relations, Treasurer
    

 

[Signature Page to Commitment Letter]

 

 

EXHIBIT A TO COMMITMENT LETTER

 

SUMMARY OF TERMS OF $340.0 MILLION TERM LOAN FACILITY

 

Set forth below is a summary of the principal terms of the Term Loan Facility and the documentation related thereto.  Capitalized terms used and not otherwise defined in this Exhibit A have the meanings set forth elsewhere in this Commitment Letter.

 

	
I.                                        Parties
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Borrower
    	
 
    	
AMAG   Pharmaceuticals, Inc. (the “Borrower”).
    
	
 
    	
 
    	
 
    
	
Guarantors
    	
 
    	
Each of the direct and indirect wholly-owned   subsidiaries of the Borrower (other than (i) any foreign subsidiary   (defined to include any subsidiary that is a “controlled foreign corporation”   within the meaning of section 957 of the United States Tax Code of 1986, as   amended (a “CFC”)),   (ii) any direct or indirect U.S. subsidiary of a direct or indirect   foreign subsidiary of the Borrower, (iii) any U.S. subsidiary if it has   no material assets other than equity interests or indebtedness of one or more   foreign subsidiaries, (iv) immaterial subsidiaries (to be defined in a   mutually acceptable manner as to individual and aggregate revenues or assets   excluded), (v) captive insurance companies, (vi) not-for profit   subsidiaries, (vii) special purpose entities reasonably satisfactory to   the Administrative Agent, (viii) in the case of any hedging obligations,   any subsidiary that is not an “Eligible Contract Participant” as defined in   the Commodity Exchange Act, (ix) other subsidiaries to the extent a   guarantee by any such subsidiary is not permitted by law, regulation or   contract existing on the Closing Date or on the date any such subsidiary is   acquired or organized (as long as, in the case of an acquisition of a   subsidiary, such prohibition in respect of such contract did not arise as   part of or in contemplation of such acquisition), in each case to the extent,   and so long as, such law, regulation or contract prohibits such subsidiary   from becoming a guarantor, (x) any subsidiary acquired pursuant to a   permitted acquisition or investment that is subject to indebtedness permitted   to be assumed pursuant to the Loan Documents and any subsidiary thereof that   guarantees such indebtedness, in each case to the extent, and so long as,   such indebtedness prohibits such subsidiary from becoming a guarantor, and   (xi) any subsidiary where the Administrative Agent and the Borrower   agree that the cost of obtaining a guarantee by such subsidiary would be   excessive in light of the practical benefit to the Lenders afforded thereby   and (xii) and other exceptions to be mutually agreed upon)   (collectively, the “Guarantors;”   the Borrower and the
    

 

Exhibit A-1

 

	
 
    	
 
    	
Guarantors, collectively, the “Credit Parties”).
    
	
 
    	
 
    	
 
    
	
Joint Lead Arrangers and   Bookrunners
    	
 
    	
Jefferies Finance LLC (“Jefferies Finance”) and other joint lead arrangers   appointed in accordance with the Commitment Letter (Jefferies Finance and   each such other joint lead arranger, in such capacity, the “Joint Lead Arrangers”). The Joint Lead Arrangers will perform   the duties customarily associated with such role.
    
	
 
    	
 
    	
 
    
	
Administrative Agent
    	
 
    	
Jefferies Finance and/or one or more of its   designees (in such capacity, the “Administrative   Agent”). The Administrative Agent will perform the duties   customarily associated with such role. Any such designee that is not an   affiliate of Jefferies Finance will be subject to the approval of the   Borrower, which approval may not be unreasonably withheld, delayed or   conditioned.
    
	
 
    	
 
    	
 
    
	
Collateral Agent
    	
 
    	
Jefferies Finance and/or one or more of its   designees (in such capacity, the “Collateral   Agent”). The Collateral Agent will perform the duties   customarily associated with such role. Any such designee that is not an   affiliate of Jefferies Finance will be subject to the approval of the   Borrower, which approval may not be unreasonably withheld, delayed or   conditioned.
    
	
 
    	
 
    	
 
    
	
Lenders
    	
 
    	
A syndicate of banks, financial institutions and   other institutions (including the Initial Lenders) other than Disqualified   Persons (collectively, the “Lenders”)   identified by the Joint Lead Arrangers and reasonably acceptable to the   Borrower.
    
	
 
    	
 
    	
 
    
	
Closing Date
    	
 
    	
The date, on or before the date on which the   Commitments are terminated in accordance with Section 15 of the   Commitment Letter, on which the Acquisition is consummated and the initial   funding of the Loans occurs (the “Closing Date”).
    
	
 
    	
 
    	
 
    
	
Loan Documents
    	
 
    	
The definitive documentation governing or   evidencing the Term Loan   Facility (collectively, the “Loan   Documents”) (a) shall be consistent with the Commitment   Letter and the Fee Letter, will contain only those conditions to borrowing,   mandatory prepayments, representations, warranties, covenants and events of   default referred to in this Commitment Letter (subject to modification in   accordance with the “market flex” provisions of the Fee Letter) and   consistent with loan documentation terms customary and usual for facilities   and transactions of this type (but in no event including any conditions to   borrowing not set forth in the Commitment Letter (including this Summary of   Terms and Exhibit B hereto)), and (b) shall be negotiated in   
    

 

Exhibit A-2

 

	
 
    	
 
    	
good faith by the Borrower and the Joint Lead   Arrangers giving due regard to (i) the terms set forth in certain   precedent loan documents to be mutually agreed by the Borrower and the Joint   Lead Arrangers, (ii) the differences in the business of the borrower   under such precedent documentation on one hand, and the Borrower and its   subsidiaries, on the other hand, (iii) the operational and strategic   requirements of the Borrower and its subsidiaries in light of their size,   industries, businesses and business practices, operations, financial   accounting, matters disclosed in the Acquisition Agreement and the   Projections delivered to the Joint Lead Arrangers prior to the date of the   Commitment Letter, (iv) the general trends and risks affecting the   industry of the Borrower and its subsidiaries, and (v) the prevailing   market conditions at the time of syndication of the Term Loan Facility. This   paragraph and the provisions herein are referred to as the “Documentation Principles”.
    
	
 
    	
 
    	
 
    
	
II.                                   Term Loan Facility
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Type of Facility
    	
 
    	
A 6-year senior   secured first lien term loan facility in an aggregate principal amount equal   to $340.0 million (the “Term   Loan Facility”; the loans thereunder, the “Term Loans” or the   “Loans”).  

 

The full amount   of the Term Loan Facility (other than any Incremental Term Loans) shall be   drawn in a single drawing on the Closing Date. Amounts borrowed under the   Term Loan Facility that are repaid or prepaid may not be reborrowed.
    
	
 
    	
 
    	
 
    
	
Final   Maturity and Amortization of Term Loan Facility
    	
 
    	
The Term Loan   Facility will mature on the date that is six years after the Closing Date and   will amortize at an annual rate of 5.00% in equal quarterly installments of   1.25% of the original principal amount of the Term Loan Facility, with the   balance payable on the sixth anniversary of the Closing Date, provided that the Term Loan Facility will mature   on September 30, 2018 unless either (x) not more than $25.0 million   in aggregate principal amount of the 2019 Notes shall remain outstanding (and   not converted to common stock of the Borrower or refinanced or replaced   (including by amendment and extension) with indebtedness that matures   following, and has no amortization prior to, the date that is six and one   half years following the closing date) on such date or, in the alternative   (y) the aggregate outstanding principal amount of the Term Loan Facility   and any outstanding Incremental Facility or Incremental Facilities is less   than $50.0 million on and as of such 
    

 

Exhibit A-3

 

	
 
    	
 
    	
date. The first   installment shall be due and payable on the last day of the first full fiscal   quarter following the Closing Date.  

 

Notwithstanding   any of the foregoing, the Loan Documents shall provide the right for   individual Lenders under the Term Loan Facility to agree to extend the   maturity date of the outstanding Term Loans (which may include, among other   things, an increase in the interest rate payable with respect to such   extended Term Loans, with such extension not subject to any financial test or   “most favored nation” pricing provision) upon the request of the Borrower and   without the consent of any other Lender pursuant to customary procedures to   be agreed (any such loans that have been so extended, the “Extended Term Loans”);   it being understood that each Lender under the applicable tranche or tranches   that are being extended shall have the opportunity to participate in such   extension on the same terms and conditions as each other Lender in such   tranche or tranches; provided, further that it is understood that no   existing Lender will have any obligation to commit to any such extension. The   terms of the Extended Term Loans shall be substantially similar to the Term   Loans except for interest rates, fees, amortization (so long as, prior to the   final stated maturity of the Term Loans, the amortization of such Extended   Term Loans does not exceed equal quarterly installments in an aggregate   annual amount equal to 5.00% of the original principal amount of the Extended   Term Loans), final maturity date, provisions requiring optional and mandatory   prepayments to be directed first to the non-extended Term Loans prior to   being applied to Extended Term Loans and certain other provisions to be   agreed, provided that the Extended Term Loans shall not benefit from   Guarantees or Collateral that do not also benefit the existing Term Loans,   and further provided that other terms of the Extended Term Loans may differ   from the Term Loans to the extent such differences do not apply until after   the final stated maturity of the Term Loans.  

 

The Administrative Agent and Borrower shall   be permitted to effect such amendments to the Loan Documents as may be   necessary or appropriate to give effect to the foregoing, including   conforming amendments (which may be in the form of an amendment and   restatement), without the consent of any Lender, other than the Lenders   agreeing to extend such Extended Term Loans.
    

 

Exhibit A-4

 

	
Incremental Credit   Facilities
    	
 
    	
The Borrower   shall have the right to increase the size of or incur additional loans under   the Term Loan Facility and/or establish revolving credit commitments under a   revolving credit facility (including, at the Borrower’s election and with the   Administrative Agent’s approval, subfacilities for swing line loans and   letters of credit) (a “Revolving   Credit Facility”) up to a maximum aggregate principal amount equal to $40.0 million   (such new commitments, (x) with respect to the Term Loan Facility, “Incremental Term Loan   Commitments” and such new loans, “Incremental Term Loans” and (y) with   respect to any such Revolving Credit Facility, “Incremental Revolving Commitments” and such   new loans, “Incremental Revolving   Credit Loans”; each of the Incremental Term Loans and   Incremental Revolving Credit Commitments may hereinafter be referred to as   the “Incremental Facility”),   at any time after the Closing Date, from willing existing Lenders and/or   Additional Lenders (as defined below); provided, that,

 

(i)  no event of default shall have occurred and   be continuing, or would immediately result after giving effect to, such   Incremental Term Loan Commitments, Incremental Revolving Commitments and the   proposed Incremental Term Loans and Incremental Revolving Credit Loans, as   applicable (subject to customary “SunGard” limitations to the extent the   proceeds of any Incremental Facility are being used to finance a permitted   acquisition),

 

(ii)  the Borrower shall be in compliance with   the Financial Covenant on a pro forma basis after giving effect to such   Incremental Term Loans and Incremental Revolving Credit Loans (and assuming   for all purposes of this calculation that all Incremental Term Loans,   Incremental Revolving Commitments and Incremental Revolving Credit Loans are   fully drawn), and other customary and appropriate adjustment events,   including certain acquisitions or dispositions after the beginning of the   relevant determination period but prior to or simultaneous with the borrowing   of such Incremental Term Loans and Incremental Revolving Credit Loans, as   applicable, but without netting any proceeds thereof,

 

(iii)  the Incremental Term Loans shall have a   maturity date no earlier than the maturity date of the Term Loan Facility and   shall have a weighted average life to maturity no shorter than the weighted   average life to maturity of the Term Loan Facility,

 

(iv)  in connection with any Incremental Term   Loans 
    

 

Exhibit A-5

 

	
 
    	
 
    	
incurred within   18 months following the Closing Date, the initial yield (to be defined to   include all applicable margin, LIBOR floor, upfront fees, original issue   discount or similar yield-related discounts (equating upfront fees and   original issue discount or similar yield-related discounts to interest based   upon an assumed four year average life to maturity, or, if shorter, the   average life to maturity of the related Incremental Term Loans), but   excluding any customary underwriting, arrangement or similar fees in connection   therewith that are not paid to all of the Lenders providing the Incremental   Term Loans) of the Incremental Term Loans shall be no greater than 0.50% per annum higher than the yield   applicable to the existing Term Loan Facility (or, if such initial yield on   the Incremental Term Loans exceeds the yield on the existing Term Loan   Facility, then the interest rate margin for the existing Term Loan Facility   shall automatically be increased to equal such initial yield on the   Incremental Term Loans, less 0.50%), it being agreed that any increase in   yield to the existing Term Loan Facility required due to the application of   an Adjusted LIBOR or Base Rate floor on any Incremental Term Loan shall be   effected solely through an increase in (or implementation of, as applicable)   any Adjusted LIBOR or Base Rate floor applicable to the existing Term Loans   Facility),

 

(v)  the representations and warranties of the   Credit Parties set forth in the Loan Documents shall be true and correct in   all material respects (without duplication of any materiality qualifiers set   forth therein) immediately prior to, and immediately after giving effect to,   the incurrence of such Incremental Term Loans or Incremental Revolving   Commitments or Incremental Revolving Credit Loans (although any representations   and warranties which expressly relate to a given date or period shall be   required to be true and correct in all material respects (without duplication   of any materiality qualifiers set forth therein) as of the respective date or   for the respective period, as the case may be) (subject to customary   “SunGard” limitations to the extent the proceeds of any Incremental Facility   are being used to finance a permitted acquisition),

 

(vi)  the terms of the Incremental Term Loan   Commitments shall be otherwise reasonably satisfactory in all respects to the   Administrative Agent to the extent that such terms, except to the extent set   forth above, are not consistent with the Term Loan Facility,

 

(vii)  any Incremental Revolving Commitment will   be documented solely as an establishment of the Revolving 
    

 

Exhibit A-6

 

	
 
    	
 
    	
Credit Facility   or increase to the commitments with respect to the Revolving Credit Facility,   without any change in terms except as set forth above and except for   provisions reasonably satisfactory to the Administrative Agent and customary   for revolving credit facilities, including, without limitation (x) customary   provisions relating to borrowing procedures and requirements, which must be   satisfactory to the Borrower, the Administrative Agent and each Lender or   Additional Lender providing such Incremental Revolving Credit Facility, (y)   customary differences with respect to assignments and (z) customary voting   and approval rights of any letter of credit issuer or swing line lender, and

 

(viii)  the Incremental Facilities will have the   same guarantees as, and be secured on a pari   passu basis by the same collateral securing, the Term Loan   Facility.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrower may   seek Incremental Term Loan Commitments and Incremental Revolving Commitments   from existing Lenders (each of which shall be entitled to agree or decline to   participate in its sole discretion) and additional banks, financial   institutions and other institutional lenders or investors who will become   Lenders in connection therewith (“Additional Lenders”); provided that the Administrative Agent shall   have consent rights (not to be unreasonably withheld or delayed) with respect   to such Additional Lender, if such consent would be required under the   heading “Assignments and Participations” for an assignment of loans or   commitments, as applicable, to such Additional Lender.

 

For purposes of   this Summary of Terms, unless the context otherwise requires, Incremental   Term Loans shall constitute “Term Loans”. Incremental Term Loans will   participate pro rata in mandatory prepayments of the Term Loans, but   Incremental Revolving Facilities will not be required to be prepaid in   connection with any mandatory prepayment prior to the repayment or prepayment   in full of the Term Facility and all Incremental Term Facilities.

 

“Total Net Leverage Ratio”   means as of any date of determination, the ratio of (a) consolidated funded   indebtedness of the Borrower and its subsidiaries as of such date (net of up   to $25.0 million of domestic unrestricted cash and cash equivalents and   domestic cash and cash equivalents restricted in favor of the Collateral   Agent (in each case, other than proceeds of any Incremental Facility borrowed   at the time of 
    

 

Exhibit A-7

 

	
 
    	
 
    	
determination),   but subject to limitation as described below under “Financial Covenant”), to   (b) Consolidated Adjusted EBITDA of the Borrower and its subsidiaries for the   most recently ended four-fiscal quarter period for which financial statements   have been delivered. “Consolidated funded indebtedness” will include   obligations for borrowed money, obligations evidenced by bonds, notes and   similar instruments, obligations in respect of the deferred price of property   or services, and capital lease, synthetic lease, purchase money and similar   obligations, and guarantees in respect of any of the foregoing, but will   exclude (i) undrawn letters of credit, (ii) installment payments or deferred   price of property or services that may be paid entirely in stock at the   option of the payor and (iii) the Acquisition Earnout and earnout obligations   in respect of permitted acquisitions and investments, so long as such   Acquisition Earnout or earnout obligations, as the case may be, are not due   and owing but unpaid.

 

“Consolidated Adjusted EBITDA”   will be defined in accordance with the Documentation Principles and will   include add backs to net income to be agreed upon (with certain limitations   to be agreed upon), including add backs for taxes, interest expense,   commitment and similar fees, depreciation and amortization, non-cash charges,   deductions, losses and expenses, extraordinary, unusual or nonrecurring   losses and expenses (determined in accordance with GAAP), proceeds of   business interruption insurance, transaction fees and expenses, expenses   incurred in connection with acquisitions and other investments, restricted   payments, dispositions not in the ordinary course of business and issuances   of or amendments to debt or equity, in each case whether or not consummated,   non-recurring or unusual costs and expenses (including integration costs,   facility closure expenses, and severance costs), all gains and losses on   sales of assets outside the ordinary course of business, restructuring and   similar charges, severance, relocation costs, integration and new product   development costs, board of directors fees and expenses, currency translation   gains or losses, pro forma synergies to be realized within a time period to   be agreed, and other add backs to be agreed upon. Notwithstanding the   foregoing, Consolidated Adjusted EBITDA for periods prior to the Closing Date   will be fixed at amounts to be agreed.
    
	
 
    	
 
    	
 
    
	
Use of Proceeds
    	
 
    	
The proceeds of   the Term Loans borrowed on the Closing Date, will be used to finance, in   part, the Acquisition, the Refinancing of the Refinanced Debt of the Acquiror   and the Acquired Business and to pay fees and expenses in 
    

 

Exhibit A-8

 

	
 
    	
 
    	
connection with   the foregoing.

 

The proceeds of   any Incremental Facility will be used by the Borrower for general corporate   purposes and other legal purposes of the Borrower and its subsidiaries   (including, without limitation, acquisitions permitted under the Loan   Documents, other permitted investments, capital expenditures, refinancing of   indebtedness and permitted restricted payments and distributions).
    
	
 
    	
 
    	
 
    
	
III.                              Certain Payment Provisions
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Fees and Interest Rates
    	
 
    	
As set forth on Annex A-I hereto.

 
    
	
Optional Prepayments
    	
 
    	
Optional prepayments of borrowings under the Term   Loan Facility will be permitted at any time, in minimum principal amounts to   be agreed upon, without premium or penalty (subject (i) to reimbursement of   the Lenders’ redeployment costs in the case of a prepayment of Adjusted LIBOR   Loans other than on the last day of the relevant interest period and (ii) to   payments of an amount provided below under the caption “Call Protection on   Term Loans”). Voluntary prepayments of the Term Loans shall be applied to   remaining scheduled amortization payments as directed by the Borrower (or, in   absence of such direction, in direct order of maturity).
    
	
 
    	
 
    	
 
    
	
Mandatory   Prepayments and Commitment Reductions
    	
 
    	
The following amounts will be applied to prepay   the Term Loans:

 

·                  100% of the net cash proceeds of any incurrence of indebtedness   after the Closing Date (other than indebtedness permitted under the Loan   Documents) by the Borrower or any of its subsidiaries (with additional   exceptions to be agreed upon);

 

·                  within five business days after the receipt thereof, 100% of the   net cash proceeds in excess of a threshold per fiscal year to be mutually and   reasonably agreed of any non-ordinary course sale or other disposition of   assets by the Borrower or any of its subsidiaries (including (i) as a result   of casualty or condemnation and (ii) any sale of the equity interests in any   subsidiary of the Borrower, but with exceptions for sales of inventory and   other ordinary course dispositions, obsolete, surplus or worn-out property, property   no longer useful in the business, and the repayment of any indebtedness   secured by a permitted lien on the asset subject to the prepayment event)   subject to exceptions to be agreed and subject to the right to reinvest 100%   of such proceeds, if 
    

 

Exhibit A-9

 

	
 
    	
 
    	
such proceeds are reinvested in assets used   or useful in the business (other than working capital, except for short term   capital assets), permitted acquisitions or other investments, or to pay consideration   under license arrangements, or committed to be reinvested within 12 months   and, if so committed to be reinvested, so long as such reinvestment is   actually completed within 180 days thereafter; and

 

·                  50% of “excess cash flow” (to be defined in a manner consistent   with the Documentation Principles) for each fiscal year of the Borrower   (commencing with the fiscal year ending December 31, 2015), with step-downs   to 25% and 0% if the Total Net Leverage Ratio as of the last day of such   fiscal year does not exceed levels to be agreed, less, in each case, the   aggregate amount of voluntary prepayments made during the relevant fiscal   year or, at the option of the Borrower (and without counting such amounts   against the subsequent fiscal year’s excess cash flow prepayment), after   year-end and prior to the time such excess cash flow prepayment is due, of   (i) the Term Loan Facility and (ii) any Revolving Credit Facility to the   extent, in the case of this clause (ii), that such prepayments are   accompanied by a corresponding reduction in the commitments under the   Revolving Credit Facility and, in the case of both clauses (i) and (ii)   above, other than prepayments funded with the proceeds of long-term   indebtedness (which, in the case of loans prepaid at a discount to par, will   be limited to the actual amount of cash paid to lenders in connection with   such prepayment (as opposed to the face amount of the loans so prepaid)) and   (ii) excess cash flow shall be reduced for, among other things, cash used for   capital expenditures, certain permitted investments (including permitted   acquisitions), earn-outs to the extent earned and/or paid during such fiscal   year (without counting such amounts against a subsequent fiscal year),   consideration paid under licensing arrangements, and restricted payments (in   each case, to the extent financed with internally generated cash (to be   defined in a manner consistent with the Documentation Principles)).

 

Prepayments from   foreign subsidiaries’ excess cash flow and asset sale proceeds (to the extent   otherwise required) will be limited under the Loan Documents to the extent   (x) the repatriation of funds to fund such prepayments is prohibited,   restricted or delayed by applicable laws or (y) repatriation of funds to fund   such prepayment would 
    

 

Exhibit A-10

 

	
 
    	
 
    	
result in   material adverse tax consequences.

 

All mandatory   prepayments are subject to permissibility under (a) local law (e.g.,   financial assistance, corporate benefit, restrictions on upstreaming of cash   intra-group and the fiduciary and statutory duties of the directors of the   relevant subsidiaries) and (b) organizational document restrictions   (including as a result of minority ownership). The non-application of any   such mandatory prepayment amounts as a result of the foregoing provisions   will not constitute a default or an event of default and such amounts shall   be available for working capital purposes of the Borrower and its   subsidiaries. The Borrower will undertake to use commercially reasonable   efforts to overcome or eliminate any such restriction and/or minimize any   such costs of prepayment and/or use the other cash resources of the Borrower   and its subsidiaries (subject to the considerations above) to make the   relevant payment. Notwithstanding the foregoing, any prepayments made after   application of the above provision shall be net of any costs, expenses or   taxes incurred by the Borrower and its subsidiaries or any of its affiliates   or equity partners and arising as a result of compliance with the preceding   sentence.

 

All such   mandatory prepayments shall be applied without premium or penalty (except for   breakage costs, if any, and premiums, if any described below) and shall be   applied to unpaid installments of principal of the Term Loan Facility in   direct order of maturity.

 

Any Lender may   elect to decline all or a portion of any such mandatory prepayment of the   Term Loans held by such Lender, in which case such prepayment (or portion   thereof) shall be retained by the Borrower (such amount, the “Declined Amount”).
    
	
 
    	
 
    	
 
    
	
Call Protection on Term   Loans
    	
 
    	
Voluntary   prepayments and mandatory prepayments (other than those made with excess cash   flow) that occur on or before the first anniversary of the Closing Date will   be subject to a prepayment premium in an amount equal to 1.0% of the   principal amount of the Term Loans so prepaid (the “Prepayment Premium”), in each case, other   than in connection with the occurrence of a “change in control”. If such   prepayment is made after the first anniversary of the Closing Date, there   shall be no Prepayment Premium.
    

 

Exhibit A-11

 

	
IV.                               Collateral and Guarantees
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Collateral
    	
 
    	
Subject to the limitations set forth below in   this section and limitations on “excluded hedging obligations” to be agreed,   and subject to the Certain Funds Provision, the obligations of each Credit   Party in respect of the Term Loan Facility and any interest rate hedging   obligations of the Borrower owed to a Lender, the Administrative Agent, a   Joint Lead Arranger or their respective affiliates or to an entity that was a   Lender, the Administrative Agent, a Joint Lead Arranger or one of their   respective affiliates at the time of such transaction (“Permitted   Secured Hedging Obligations”) will be secured by the   following: a perfected first priority security interest (subject to permitted   priority liens and other mutually agreed exceptions consistent with the   Documentation Principles) in substantially all of its tangible and intangible   assets, including intellectual property, real property, licenses, permits,   intercompany indebtedness, all of the capital stock of each Credit Party   (other than the Borrower) and 65% of the voting stock of each first-tier   foreign subsidiary of a Credit Party (other than immaterial foreign   subsidiaries) (the items described above, but excluding the Excluded Assets   (as defined below), collectively, the “Collateral”),   except that the Credit Parties shall not be obligated to provide a security   interest or perfect the Collateral Agent’s security interests in those assets   as to which the Collateral Agent reasonably determines the costs of obtaining   a security interest are excessive in relation to the value of the security   afforded thereby.

 

Notwithstanding   anything to the contrary, the Collateral shall exclude the following: (i) any   fee-owned real property with a value of less than an amount to be agreed (as   reasonably determined by the Borrower) and any leasehold interests (it being   understood that there shall be no requirement to obtain landlord waivers,   estoppels, collateral access letters or similar third-party agreements or   consents); (ii) motor vehicles, aircraft and other assets subject to   certificates of title; (iii) any lease, license or other similar agreement or   any property subject to a purchase money security interest or similar   arrangement to the extent that a grant of a security interest therein would   violate or invalidate such lease, license or similar agreement or purchase   money arrangement or applicable laws or create a right of termination in   favor of any other party thereto (other than the Borrower or a Guarantor)   after giving effect to the applicable anti-assignment provisions of the   Uniform Commercial Code and other applicable laws, other than proceeds and receivables   thereof, the assignment of which is expressly deemed effective under the   Uniform Commercial Code and other 
    

 

Exhibit A-12

 

	
 
    	
 
    	
applicable laws   notwithstanding such prohibition; (iv) any intent to use trademark   applications; (v) letter of credit rights and commercial tort claims with a   value below an amount to be agreed; (vi) any governmental licenses or state   or local franchises, charters and authorizations, to the extent security   interests in such licenses, franchises, charters or authorizations are   prohibited or restricted thereby, (vii) any controlled substances or   prescription drugs to the extent the grant of a security interest therein   would violate applicable laws, (viii) (A) margin stock, and (B) equity   interests in any non-wholly owned subsidiaries, but only to the extent that   (x) the organizational documents or other agreements with other equity   holders of such non-wholly owned subsidiaries do not permit or restrict the   pledge of such equity interests, or (y) the pledge of such equity interests   (including any exercise of remedies) would result in a change of control,   repurchase obligation or other adverse consequence to the Borrower or a   subsidiary and (ix) assets in circumstances where the cost of obtaining a   security interest in such assets, including, without limitation, the cost of   title insurance, surveys or flood insurance (if necessary) would be excessive   in light of the practical benefit to the Lenders afforded thereby as   reasonably determined by the Borrower and the Administrative Agent (the   foregoing described in clauses (i) through (ix) are collectively, the “Excluded Assets”).

 

All the   above-described pledges, security interests and mortgages shall be created on   terms to be set forth in the Loan Documents. Notwithstanding the foregoing,   no actions in any non-U.S. jurisdiction or required by the laws of any   non-U.S. jurisdiction shall be required in order to create any security   interests in assets located or titled outside of the U.S. or to perfect such   security interests, including any intellectual property registered in any   non-U.S. jurisdiction (it being understood that there shall be no security   agreements or pledge agreements governed under the laws of any non-U.S.   jurisdiction).

 

Notwithstanding   the foregoing, the Borrower and the Guarantors will use commercially   reasonable efforts to obtain control agreements in favor of the   Administrative Agent within 180 days following the Closing Date (as such time   period may be extended by the Administrative Agent) with respect to   securities accounts and deposit accounts of the Borrower and the Guarantors   other than (1) any deposit or securities account if the cash, securities or   other property held in any such account has an aggregate value of less than   $1.0 million and in all such accounts not subject to control agreements has   an 
    

 

Exhibit A-13

 

	
 
    	
 
    	
aggregate value   of less than $2.0 million, (2) segregated governmental receivables accounts   (which shall, instead, be subject only to customary “sweep agreements”) and   (3) any deposit account which is used for the payment of payroll, payroll or   withholding taxes, employee benefits, earnest money or escrow deposits or   similar purposes.
    
	
 
    	
 
    	
 
    
	
Guarantees
    	
 
    	
The Guarantors will unconditionally, and jointly   and severally, guarantee the obligations of each Credit Party in respect of   the Term Loan Facility and the Permitted Secured Hedging Obligations (the “Guarantees”). Such Guarantees will   be in form consistent with the Documentation Principles. All Guarantees shall   be guarantees of payment and performance, and not of collection.
    
	
 
    	
 
    	
 
    
	
V.                                    Other Provisions
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Representations and   Warranties
    	
 
    	
Consistent with   the Documentation Principles and limited to the following (to be applicable   to the Borrower and its subsidiaries): organizational existence, status and   powers; due authorization, execution, delivery and enforceability of Loan   Documents; no conflicts; financial statements and projections; no material   adverse effect; ownership of properties; intellectual property; equity   interests and subsidiaries; litigation and compliance with laws and   governmental approvals; healthcare matters; federal reserve regulations; the   Patriot Act; OFAC; FCPA; the Investment Company Act of 1940, as amended, and   other laws restricting incurrence of debt; use of proceeds; taxes; accuracy   of disclosure; solvency of the Borrower and its subsidiaries at closing (such   representation and warranty to contain a definition of solvency consistent with   the solvency certificate in the form attached as Exhibit C); labor   matters; employee benefit plans and ERISA; environmental matters; insurance;   security documents and creation, validity, perfection and priority of   security interests in the Collateral (subject to permitted liens); status of   the Term Loan Facility as senior debt; and anti-terrorism laws, money   laundering activities and dealing with embargoed persons; subject in the case   of each of the foregoing representations and warranties, to customary   exceptions, qualifications and baskets, including for materiality to be   agreed consistent with the Documentation Principles.

 

The   representations and warranties will be required to be made in connection with   each extension of credit (including the extension of credit on the Closing   Date, subject to the Certain Funds Provision), but subject to clause (v) under   “Incremental Credit Facilities”, above, in
    

 

Exhibit A-14

 

	
 
    	
 
    	
respect of   Incremental Facilities.
    
	
 
    	
 
    	
 
    
	
Conditions Precedent to   Initial Borrowing
    	
 
    	
Subject to the Certain Funds Provision, the   initial borrowings on the Closing Date will be subject only to the conditions   precedent set forth in Section 3 of the Commitment Letter and Exhibit B   to the Commitment Letter.
    
	
 
    	
 
    	
 
    
	
Conditions   Precedent to all Borrowings (except on the Closing Date)
    	
 
    	
Except with   respect to borrowings and other credit extensions on the Closing Date and   except as otherwise provided above under “Incremental Credit Facilities”,   each borrowing and each other extension of credit shall be subject only to   the following conditions precedent: (i) delivery of notice of borrowing   or request for issuance of letter of credit; (ii) accuracy of representations   and warranties in all material respects (provided, that any representation   and warranty that is qualified as to “materiality,” “material adverse effect”   or similar language shall be true and correct in all respects (after giving   effect to any such qualification therein) and any representations and   warranties which expressly relate to a given date or period shall be required   to be true and correct in all material respects (without duplication of any   materiality qualifiers set forth therein) as of the respective date or for   the respective period, as the case may be)); and (iii) the absence of   defaults or events of default at the time of, or immediately after giving   effect to the making of, such extension of credit.
    
	
 
    	
 
    	
 
    
	
Affirmative Covenants
    	
 
    	
Consistent with   the Documentation Principles and limited to the following (to be applicable   to the Borrower and its subsidiaries): delivery of annual and, for the first   three quarters of each fiscal year, quarterly financial statements (and in   connection with the annual financial statements, an annual audit opinion from   a nationally recognized auditor that is not subject to any qualification as   to “going concern” other than with respect to any upcoming maturity date of   the Term Loan Facility or any Revolving Credit Facility, or any qualification   as to the scope of the audit), annual and quarterly MD&A, final   accountants’ letters, annual projections within 60 days after year end,   quarterly compliance certificates and other information reasonably requested   by the Administrative Agent; notices of default, litigation and other events   that, in each case, would result in a material adverse effect; existence;   maintenance of business and properties; maintenance of insurance; payment and   performance of obligations and taxes; employee benefits and ERISA;   maintaining books and records; access to properties; use of proceeds;   compliance with laws; healthcare and regulatory matters; additional   collateral and additional guarantors; inspection 
    

 

Exhibit A-15

 

	
 
    	
 
    	
rights; further   assurances; information regarding Collateral, including as to security;   annual lender conference calls (including Q&A); and using commercially   reasonable efforts (including, in all events, applying to maintain each   credit rating and paying all usual and customary fees and expenses to each of   S&P and Moody’s with respect to each credit rating) to maintain ratings   (subject to an exclusion to be mutually agreed for non-performance by Moody’s   or S&P, as the case may be), in each case, without regard to the level of   such ratings; subject, in the case of each of the foregoing covenants, to   customary exceptions, qualifications and baskets to be agreed consistent with   the Documentation Principles.  

 

If such   financial statements of the Borrower described in the paragraph above are   filed with the Securities and Exchange Commission on EDGAR or in such other   manner as make them publicly available, the obligation to deliver such   information shall be satisfied by such public filings and notice thereof to   the Administrative Agent.  

 

Notwithstanding   anything to the contrary, there will be no minimum hedging requirement for   interest rate or foreign exchange hedging.
    
	
 
    	
 
    	
 
    
	
Negative Covenants
    	
 
    	
Consistent with   the Documentation Principles and limited to the following (to be applicable   to the Borrower and its subsidiaries): indebtedness (including mandatorily   redeemable equity interests, guarantees and other contingent obligations);   liens (subject to permitted liens to be agreed); sale and leaseback   transactions; investments (including acquisitions, loans, etc., but   allowing for permitted acquisitions on terms to be agreed), loans and   advances; asset sales; mergers, acquisitions, consolidations, liquidations   and dissolutions (but allowing for permitted acquisitions on terms to be   agreed); dividends and other payments in respect of equity interests and   other restricted payments; transactions with affiliates; prepayments,   redemptions and repurchases of other indebtedness; adverse modifications of   organizational documents, documents related to the Acquisition and debt   instruments; limitations on certain restrictions on subsidiaries; limitations   on issuance of disqualified capital stock; limitations on business   activities; fundamental changes; limitations on accounting changes; changes   in fiscal year; use of proceeds; further negative pledges; and anti-terrorism   laws, money-laundering activities and dealing with embargoed persons. The   foregoing covenants will contain additional limitations on transactions between   
    

 

Exhibit A-16

 

	
 
    	
 
    	
Credit Parties   and non-Credit Parties, in accordance with the Documentation Principles.  

 

The negative   covenants will be subject, in the case of each of the foregoing covenants to   customary exceptions, qualifications and “baskets” consistent with the   Documentation Principles, including, without limitation an available amount   basket (the “Available   Amount Basket”) that will consist of, without duplication,   (a) retained excess cash flow (excluding excess cash flow retained by   reason of a reduction in prepayment amounts because of voluntary prepayments   of debt or because of limitations on prepayments of excess cash flow of   foreign subsidiaries), plus (b) Declined Amounts, plus,   (c) the net cash proceeds of equity issuances and capital contributions   (other than Specified Equity Contributions, as defined below, and   disqualified capital stock), plus (d) the net cash proceeds of   sales of investments made with the Available Amount Basket, plus   (e) returns, profits, distributions and similar amounts received in cash   or cash equivalents on investments made with the Available Amount Basket up   to a maximum of the amount of such original investment. Subject to terms and   conditions to be agreed consistent with Documentation Principles, the   Available Basket Amount may be used for investments (including permitted   acquisitions of entities that do not become guarantors) or dividends,   payments in respect of equity and other restricted payments; provided, that no event of default under   the Loan Documents shall exist or immediately result therefrom and, solely in   the case of restricted payments, the Total Net Leverage Ratio, determined on   a pro forma basis after giving effect to such restricted payment, and the   incurrence of any indebtedness incurred to finance the same, is less than or   equal to a Total Net Leverage Ratio to be agreed.
    
	
 
    	
 
    	
 
    
	
Refinancing Facilities
    	
 
    	
The Loan   Documents will permit the Borrower to refinance in whole or in part on a   dollar-for-dollar basis the Loans under the Term Loan Facility (and loans   under any Incremental Term Facility) and/or Loans and commitments under any   Revolving Credit Facility (and any loans or commitments under any Incremental   Revolving Facility) with new term credit facilities (each a Refinancing Term Facility”)   or with new revolving facilities (each, a “Refinancing Revolving Facility” and,   together with each Refinancing Term Facility, the “Refinancing Facilities”)   under the Loan Documents with the consent of the Borrower and the   Administrative Agent; provided that (i) none of the Refinancing   Facilities (a) matures prior to the final maturity date of the loans   being refinanced (or, in the case of a 
    

 

Exhibit A-17

 

	
 
    	
 
    	
Refinancing   Facility that is secured on a junior basis, or that is unsecured, prior to   the date which is 91 days after the longest then-applicable maturity date of   then outstanding loans and revolving credit commitments), and (b) with   respect to Refinancing Facilities consisting of term loans only, has a   shorter weighted average life to maturity of the loans being refinanced (or,   in the case of a Refinancing Facility that is secured on a junior basis, or   that is unsecured, prior to the date which is 91 days after the longest   then-applicable maturity date of then outstanding loans and revolving credit   commitments), (ii) with respect to Refinancing Facilities consisting of   revolving loans and commitments, (a) has no mandatory commitment   reductions prior to the maturity date of any earlier maturing Revolving   Credit Facility and (b) all borrowings, prepayments and commitment   reductions (other than at final maturity) shall be ratable among the   Revolving Credit Facility and all other revolving tranches, (iii) any   secured Refinancing Facility: (1) shall be subject an intercreditor   agreement (a “Pari   Passu Intercreditor Agreement”) (the key terms of which will   either be attached as an exhibit to the Loan Documents or that is reasonably   acceptable to the Administrative Agent) governing the relationship between   such secured Refinancing Facility and the facilities under the Loan   Documents, (2) shall not be secured by any assets that do not also   constitute Collateral under the Loan Documents and (3) may not be secured   pursuant to security documentation that is more restrictive to the Borrower   than the Loan Documents; (iv) there are no direct or indirect obligors   or guarantors in respect of the Refinancing Facilities that are not a Credit   Party, (v) the principal amount of the Refinancing Facility does not   exceed the principal amount of the debt being refinanced (together with   accrued and unpaid interest thereon, any prepayment premiums applicable   thereto and reasonable fees and expenses incurred in connection therewith),   (vi) there shall be no more than a number of revolving facilities to be   mutually agreed outstanding at any one time; provided that drawings,   repayments, repayments and commitment reductions thereunder shall be made on   a pro rata basis as between such revolving facilities, (vii) the   proceeds of any Refinancing Facility shall be applied, substantially   concurrently with the incurrence thereof, to the pro rata repayment of the   outstanding loans under the facility (and to the permanent reduction in   commitments of any Revolving Credit Facility) being so refinanced, and   (viii) the other terms and conditions of the Refinancing Facility   (excluding pricing and optional prepayment or redemption terms) are   substantially identical to, or less favorable to, investors providing the 
    

 

Exhibit A-18

 

	
 
    	
 
    	
Refinancing   Facility than those applicable to the Loan and/or commitments being   refinanced (except for covenants or other terms applicable only to periods   after the latest final maturity date of the Loans or commitments (or, in the   case of a Refinancing Facility that is secured on a junior basis, or that is   unsecured, prior to the date which is 91 days after the longest then   applicable maturity date) existing at the time of such refinancing), in each   case as certified by the chief financial officer of the Borrower in good   faith prior to such incurrence or issuance.
    
	
 
    	
 
    	
 
    
	
Financial Covenant
    	
 
    	
Limited to a maximum Total Net Leverage Ratio to   be at an initial level, and with step-downs, to be agreed and to reflect a   25% non-cumulative cushion from Consolidated Adjusted EBITDA in the model   sent to Jefferies Finance at 10:16 A.M. on September 4, 2014,   adjusted to increase synergies in accordance with the Quality of Earnings   report provided to the Joint Lead Arrangers (as updated or modified by   changes reasonably agreed by the Joint Lead Arrangers or as necessary to   reflect the exercise of the “market flex” provisions of the Fee Letter) (the   “Financial Covenant”), with   accounting terms to be interpreted, and all accounting determinations and   computations to be made, in accordance with generally accepted accounting   principles in the United States, to be tested quarterly. Financial covenant   definitions will be as reasonably agreed by the Borrower and the Joint Lead   Arrangers, subject to the Documentation Principles.  

 

For purposes of determining compliance with the   Financial Covenant, any cash equity contribution (other than in exchange for   disqualified stock) made to the Borrower on or prior to the day that is 15   business days after the day on which financial statements are required to be   delivered for a fiscal quarter or fiscal year and designated on the date of   such contribution as a “Specified Equity Contribution” will, at the request   of the Borrower, be included in the calculation of EBITDA for the purposes of   determining compliance with any financial maintenance covenant at the end of   such fiscal quarter or fiscal year and applicable subsequent periods (any   such equity contribution so included in the calculation of EBITDA, a   “Specified Equity Contribution”), provided that (a) no more than two   Specified Equity Contributions may be made in any period of four consecutive   fiscal quarters, (b) no more than five Specified Equity Contributions   may be made during the term of the Term Loan Facilities, (c) the amount   of any Specified Equity Contribution shall be no greater than the amount   required to cause the Borrower to 
    

 

Exhibit A-19

 

	
 
    	
 
    	
be in compliance with the Financial Covenant and   (d) all Specified Equity Contributions shall be disregarded for the   purposes of determining pricing, financial ratio-based conditions or any   baskets (including the Available Amount Basket) with respect to the covenants   contained in the Term Loan Facility and shall not result in any pro forma   debt reduction with respect to the quarter with respect to which such   Specified Equity Contribution was made. The Loan Documents will contain a   customary standstill provision with regard to exercise of rights and remedies   during the period in which any Specified Equity Contribution will be made   after the receipt of written notice by the Administrative Agent of the   Borrower’s intention to make a Specified Equity Contribution.
    
	
 
    	
 
    	
 
    
	
Events of Default
    	
 
    	
Consistent with   the Documentation Principles and limited to the following (to be applicable   to the Borrower and its subsidiaries): nonpayment of principal when due;   nonpayment of interest, fees or other amounts after a three business days   grace period; inaccuracy of representations and warranties in any material   respect; failure to perform negative covenants, the Financial Covenant or   customary specified affirmative covenants, and failure to perform other   covenants subject to a 30-day cure period after notice from the   Administrative Agent; cross-default and cross-acceleration to other material   indebtedness; bankruptcy and insolvency events; material final judgments   (after giving effect to insurance and indemnification by non-affiliates);   ERISA events (subject to a material adverse effect limitation); actual or   asserted invalidity or impairment of guarantees, security documents, or any   other Loan Documents (including the failure of any lien on any portion of the   Collateral to remain perfected with the priority required under the Loan   Documents); and a “Change of Control” (to be defined in a manner consistent   with the Documentation Principles); subject to customary threshold, notice   and grace period provisions, and other exceptions to be mutually and reasonably   agreed consistent with the Documentation Principles.
    
	
 
    	
 
    	
 
    
	
Voting
    	
 
    	
Amendments and   waivers with respect to the Loan Documents will require the approval of   Lenders (that are not defaulting Lenders) holding not less than a majority of   the aggregate principal amount of the Loans (including, to the extent   applicable, participations by Lenders in Letters of Credit and Swing Line   Loans and unused commitments) under the Loan Documents (the “Required Lenders”),   except that (i) the consent of each Lender directly and adversely   affected thereby shall be required with respect to (a) reductions in the   amount or 
    

 

Exhibit A-20

 

	
 
    	
 
    	
extensions of   the final maturity of the Loans of such Lender, (b) reductions in the   rate of interest (other than a waiver of default interest) or any fee or   other amount payable or extensions of any due date thereof with respect to   the Loans of such Lender, or (c) increases in the amount or extensions   of the expiration date of such Lender’s commitment, and (ii) the consent   of 100% of the Lenders shall be required with respect to (a) reductions   of any of the voting percentages or pro rata provisions, (b) releases of   all or substantially all of the value of the guarantees of the Guarantors or   of all or substantially all of the Collateral (other than in connection with   permitted asset sales or other disposition) or (c) assignments by any   Credit Party of its rights or obligations under the Term Loan Facility.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, if the Administrative Agent and the Borrower shall have   jointly identified an obvious error or any error or omission of a technical   nature in the Loan Documents, then the Administrative Agent and the Borrower   shall be permitted to amend such provision without any further action or   consent of any other party.
    
	
 
    	
 
    	
 
    
	
Assignments and   Participations
    	
 
    	
The Lenders   shall be permitted to assign and sell participations in their loans and   commitments (in each case, other than to Disqualified Persons), subject, in   the case of assignments, to the consent of (x) the Administrative Agent   (not to be unreasonably withheld, delayed or conditioned) and (y) other   than assignments to another Lender, an affiliate of a Lender or an “approved   fund” (to be defined in the Loan Documents) and so long as no payment or   bankruptcy event of default has occurred and is then continuing, the Borrower   (which consent shall not be unreasonably withheld, delayed or conditioned; provided that (A) the Borrower   shall be deemed to have consented to such assignment if the Borrower has not   otherwise rejected in writing such assignment within ten (10) business   days of the date on which consent to such assignment is requested of the   Borrower in writing, (B) participations in the Term Loan Facility shall   not be granted, and interests in the Term Loan Facility shall not be   assigned, to the Borrower or any of its subsidiaries (except as set forth   below) or any natural person, and (C) the consent of the Borrower will   always be required for assignments or participations to Disqualified Persons.   In the case of partial assignments (other than to another Lender, an   affiliate of a Lender or an approved fund), the minimum assignment amount   shall be $1.0 million. Assignments will be made by novation and will not be   required to be pro rata among different facilities. The   Administrative Agent shall 
    

 

Exhibit A-21

 

	
 
    	
 
    	
receive an   administrative fee of $3,500 in connection with each assignment unless   otherwise agreed by the Administrative Agent.  

 

Participants   shall have no greater benefit than the related Lender with respect to tax   gross ups, yield protection and increased cost provisions, except to the   extent incurred as a result of a change in the law occurring after the date   of the participation, and will be subject to customary limitations on voting   rights (as mutually agreed).  

 

Pledges of Loans   in accordance with applicable law shall be permitted on customary terms.   Promissory notes shall be issued under the Term Loan Facility only upon   request.  

 

The Loan   Documents shall contain customary provisions for replacing non-consenting   Lenders in connection with amendments and waivers requiring the consent of   all Lenders or of all Lenders directly affected thereby so long as Lenders   holding at least a majority of the aggregate principal amount of the Loans   and commitments shall have consented thereto. The Loan Documents shall   contain customary provisions for replacing defaulting lenders and lenders   requesting indemnities, gross ups or increased costs.  

 

In addition, the   Loan Documents shall provide that the Term Loans may be purchased by the   Borrower on a non-pro rata basis through Dutch auctions open to all Lenders   on a pro rata basis in accordance with customary procedures; provided that (i) any such Term   Loans acquired by the Borrower shall be retired and cancelled immediately   upon acquisition thereof, (ii) the Term Loans may not be purchased with   the proceeds of other loans under the Loan Documents, (iii) no event of   default shall exist or result therefrom, (iv) the Affiliated Lenders   shall be required to identify themselves as such to the counterparty and the   assignment agreement will contain a customary “big boy” acknowledgement by   the assignee and (v) any such Term Loans acquired by the Borrower shall not   be deemed a repayment of the Term Loans for purposes of calculating excess   cash flow prepayments or otherwise deemed to increase EBITDA.
    
	
 
    	
 
    	
 
    
	
Defaulting Lenders
    	
 
    	
The Loan Documents shall contain customary   provisions relating to “defaulting”   Lenders consistent with the Documentation Principles, including provisions   relating to the suspension of voting rights and of rights to receive certain   fees, and termination or assignment of 
    

 

Exhibit A-22

 

	
 
    	
 
    	
commitments or Loans of such Lenders.
    
	
 
    	
 
    	
 
    
	
Cost and Yield Protection
    	
 
    	
Each holder of   Loans will receive cost and interest rate protection customary for facilities   and transactions of this type, including compensation in respect of   prepayments of LIBOR loans, taxes (including gross-up provisions for   withholding taxes imposed by any governmental authority and taxes associated   with all gross-up payments, but subject to customary exclusions), changes in   capital requirements, guidelines or policies or their interpretation or   application after the Closing Date (including, for the avoidance of doubt   (and regardless of the date adopted or enacted), with respect to (x) the   Dodd-Frank Wall Street Reform and Consumer Protection Act and the   rules and regulations with respect thereto and (y) all requests,   rules, guidelines and directions promulgated by the Bank for International   Settlements, the Basel Committee on Banking Supervision (or any similar or   successor agency, or the United States or foreign regulatory authorities, in   each case, pursuant to Basel III)), illegality, change in circumstances,   reserves and other provisions reasonably deemed necessary by the   Administrative Agent to provide customary protection for U.S. and non-U.S.   financial institutions and other lenders, subject to, in the case of each of   the foregoing, the right to replace lenders claiming such cost and interest   rate protection, customary notice and tolling provisions, mitigation   requirements, certification requirements and other exceptions to be mutually and   reasonably agreed upon.
    
	
 
    	
 
    	
 
    
	
Expenses
    	
 
    	
The Borrower   shall pay (i) all reasonable and documented out-of-pocket expenses of   the Administrative Agent, the Collateral Agent and the Joint Lead Arrangers   associated with the syndication of the Term Loan Facility and the   preparation, negotiation, execution, delivery, filing and administration of   the Loan Documents and, with respect to the Administrative Agent and the   Collateral Agent, any amendment or waiver with respect thereto (including the   reasonable and documented fees, disbursements and other charges of external   counsel) and (ii) all reasonable and documented out- of-pocket expenses   of the Administrative Agent, the Collateral Agent, the Joint Lead Arrangers,   any other agent appointed in respect of the Term Loan Facility and the   Lenders (including the reasonable and documented fees, disbursements and   other charges of external counsel) in connection with the enforcement of, or   protection and preservation of rights under, the Loan Documents; provided, that, in each case, the charges of   counsel for the Administrative Agent, the Collateral 
    

 

Exhibit A-23

 

	
 
    	
 
    	
Agent, the Joint   Lead Arrangers, any other agent appointed in respect of the Term Loan   Facility and the Lenders shall be limited to one primary transactional   counsel, one local counsel in each relevant jurisdiction, and one or more   additional counsel if one or more actual or potential conflicts of interest   arise for each class of similarly situated persons. For avoidance of doubt,   prior to the Closing Date, the Borrower’s expense reimbursement obligations   shall be governed by the Fee Letter and not by this paragraph. All expenses   due under this paragraph shall be paid (a) on the Closing Date, to the   extent required under Exhibit B hereto, or, (b) otherwise,   within 30 days of a written demand therefor, together with reasonably   detailed backup documentation supporting such reimbursement request.
    
	
 
    	
 
    	
 
    
	
Indemnification
    	
 
    	
The Loan Documents will contain customary   indemnities (as reasonably determined by the Joint Lead Arrangers) for   (i) the Joint Lead Arrangers, the Collateral Agent, the Administrative   Agent and the Lenders, (ii) each affiliate of any of the foregoing   persons and (iii) each of the respective officers, directors, partners,   trustees, employees, affiliates, shareholders, advisors, agents,   attorneys-in-fact and controlling persons of each of the foregoing persons   referred to in clauses (i) and (ii) above (the persons identified   in clauses (i), (ii) and (iii) above, collectively, the “Indemnified Persons”) (other than   (a) as a result of such Indemnified Person’s or its affiliate’s bad   faith, gross negligence or willful misconduct as determined by a court of   competent jurisdiction in a final and non- appealable ruling, (b) a   material breach of such Indemnified Person’s or its affiliate’s obligations   under the Loan Documents or (c) as a result of a claim that does not   result from an act or omission by the Borrower or any of its subsidiaries or   affiliates and that is brought by an Indemnified Person against any other   Indemnified Person (other than claims against Jefferies Finance or any of its   affiliates in its capacity as or in fulfilling its role as Administrative   Agent, Collateral Agent, Joint Lead Arranger or any similar role under the Term Loan Facility), provided that the obligations of the Credit Parties to reimburse   the Indemnified Persons for legal fees and expenses shall be limited to one   firm of primary counsel to such Indemnified Persons taken as a whole (and one   or more firm of additional counsel as a result of any actual or potential   conflicts of interest and any firm of special counsel and local counsel in   each applicable jurisdiction); provided   further that the Borrower shall have no obligation to reimburse   any Indemnified Person for fees and expenses unless such Indemnified Person   provides an undertaking in which such Indemnified
    

 

Exhibit A-24

 

	
 
    	
 
    	
Person agrees to refund and return any and all   amounts paid by the Borrower to such Indemnified Person to the extent any of   the foregoing items described in clauses (a) through   (c) occurs.  Each Indemnified   Person shall be obligated to refund and return promptly any and all amounts   paid by the Borrower or any of its affiliates under this paragraph to such   Indemnified Person for any such fees, expenses or damages to the extent such   Indemnified Person is not entitled to payment of such amounts in accordance   with the terms hereof.
    
	
 
    	
 
    	
 
    
	
Governing Law and Forum
    	
 
    	
State of New York.
    
	
 
    	
 
    	
 
    
	
Counsel to the Joint Lead   Arrangers, the Collateral Agent and the Administrative Agent
    	
 
    	
Jones Day
    

 

* * *

 

Exhibit A-25

 

ANNEX A TO EXHIBIT A
 TO COMMITMENT LETTER

 

Interest and Certain Fees

 

	
Interest Rate Options
    	
 
    	
The Borrower may elect that the Loans comprising   each borrowing bear interest at a rate per annum equal to:

 

(i)            the   Base Rate plus the Applicable Margin; or

 

(ii)           Adjusted   LIBOR plus the Applicable Margin.  

 

The Borrower may elect interest periods of   1, 3 or 6 months for Adjusted LIBOR Loans (as defined below).

 

As used herein:

 

“Applicable Margin” means (i) 4.00%, in   the case of Base Rate Loans, and (ii) 5.00%, in the case of Adjusted   LIBOR Loans.

 

“Base   Rate” means the highest of (i) the “U.S. Prime Lending Rate” as published   in The Wall Street Journal (the “Prime Rate”), (ii) the   federal funds effective rate from time to time, plus 0.50% and   (iii) the Adjusted LIBOR Rate for a one-month interest period plus   1.00%.

 

“Adjusted   LIBOR” means the higher of (i) the rate per annum (adjusted for statutory reserve requirements for   Eurocurrency liabilities) at which Eurodollar deposits are offered in the   interbank Eurodollar market for the applicable interest period, as quoted on   Reuters Screen LIBOR01 Page (or any successor page or service) and   (ii) 1.00%.
    
	
 
    	
 
    	
 
    
	
Interest Payment Dates
    	
 
    	
With respect to Loans bearing interest   based upon the Base Rate (“Base   Rate Loans”), quarterly in arrears on the last day of each   calendar quarter and on the applicable maturity date.

 

With respect to Loans bearing interest   based upon the Adjusted LIBOR Rate (“Adjusted   LIBOR Loans”), on the last day of each relevant interest   period and, in the case of any interest period longer than three months, on   each successive date three months after the first day of such interest period   and on the applicable maturity date.
    
	
 
    	
 
    	
 
    
	
Upfront Fees; Original   Issue Discount
    	
 
    	
The Term Loans will be issued on the Closing Date   at a price of 99.0% of their principal amount. For purposes of the Debt   Financing Letters, all calculations of interest 
    

 

Annex A-1

 

	
 
    	
 
    	
and fees, however, will be calculated on the   basis of their full stated principal amount. Notwithstanding the foregoing,   at the sole discretion of the Joint Lead Arrangers, in lieu of original issue   discount on the Term Loans, the Borrower shall pay an equivalent amount of   upfront fees on the Closing Date.
    
	
 
    	
 
    	
 
    
	
Default Rate
    	
 
    	
Upon the occurrence and during the continuance of   a payment or bankruptcy event of default, all overdue principal, overdue   interest, overdue fees and other overdue amounts outstanding under the Term   Loan Facility shall bear interest at 2.00% above the otherwise applicable   rate and shall be payable on demand.
    
	
 
    	
 
    	
 
    
	
Rate and Fee Basis
    	
 
    	
All per annum rates   shall be calculated on the basis of a year of 360 days (or 365/366 days, in   the case of Base Rate Loans, the interest rate payable on which is then based   on the Prime Rate) for the actual number of days elapsed (including the first   day but excluding the last day).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
* * *
    

 

Annex A-2

 

EXHIBIT B TO COMMITMENT LETTER

 

CLOSING CONDITIONS

 

Capitalized terms used but not defined in this Exhibit B have the meanings assigned to them elsewhere in this Commitment Letter.  The closing of the Term Loan Facility and the making of the initial loans under the Term Loan Facility are conditioned upon satisfaction of the conditions precedent contained in Section 3 of this Commitment Letter, which includes the other conditions expressly set forth in Exhibit A to this Commitment Letter under the heading “Conditions Precedent to Initial Borrowing” and those identified below.  For purposes of this Exhibit B, references to “we”, “us” or “our” means the Joint Lead Arrangers and their respective affiliates.

 

GENERAL CONDITIONS

 

1.             Concurrent Transactions.  The Borrower and the Guarantors shall have executed and delivered to the Administrative Agent the Definitive Debt Documents, which shall be consistent with the Documentation Principles; provided that this condition is subject to the Certain Funds Provision.  The Collateral Agent, for the benefit of the Lenders under the Term Loan Facility and the other secured parties thereunder, shall have been granted perfected first priority security interests in all assets of the Credit Parties to the extent described in Exhibit A to this Commitment Letter under the caption “Collateral”, pursuant to security documents in form and substance consistent with the Documentation Principles; provided that this condition is subject to the Certain Funds Provision.

 

2.             Acquisition.  The Transactions (including the Acquisition) shall have been consummated in accordance with the Acquisition Agreement or will be consummated concurrently with or immediately following the borrowing of the Term Loans (including, without limitation, the payment by the Borrower of all amounts due on the Closing Date in connection with the Transactions with the proceeds of the Term Loans and the Balance Sheet Cash Contribution), and the Target and each of its subsidiaries (excluding the Women’s Health Division) shall have become, or will contemporaneously on the Closing Date become, wholly-owned subsidiaries of Borrower.  The executed Agreement and Plan of Merger, to be dated as of the date hereof (as may be amended, modified, supplemented, waived or the subject of any consent in accordance with the terms of this Commitment Letter and together with the annexes, schedules, exhibits and attachments thereto, the “Acquisition Agreement”), among you, the Target and the Merger Sub and Seller Representative named therein shall not have been amended, modified, supplemented, waived or been the subject of any consent in any manner materially adverse to the Lenders or the Joint Lead Arrangers (in each case in their capacities as such) without the consent of the Joint Lead Arrangers, not to be unreasonably withheld, delayed or conditioned (it being understood and agreed that (1) any change in the amount of consideration required to consummate the Acquisition shall not be deemed to be adverse to the interests of the Lenders and the Joint Lead Arrangers so long as (a) any decrease is utilized to reduce each of the Term Loan Facility and the Balance Sheet Cash Contribution on a pro rata basis and (b) any increase is funded by increasing the Equity Consideration or with New Equity Proceeds or otherwise as contemplated by clause (y) of the definition of “Balance Sheet Cash Contribution”, (2) any change to the definition of “Company Material Adverse Effect” in a manner favorable to the Target shall be deemed to be adverse to the interests of the Lenders and the Joint Lead Arrangers, (3) any modifications to any of the provisions relating to the Administrative Agent’s, the Collateral Agent’s, the Joint Lead Arrangers’ or any Lender’s liability, jurisdiction or status as a third party beneficiary under the Acquisition Agreement shall be deemed to be adverse to the interests of the Lenders and the Joint Lead Arrangers, and (4) any modification or waiver of the condition precedent that the Women’s Health Division be disposed of as contemplated by the Acquisition Agreement as in effect on the date hereof shall be deemed to be adverse to the interests of the Lenders and the Joint Lead Arrangers).

 

Exhibit B-1

 

3.             Refinancing of Existing Debt.  Concurrently with or immediately following the consummation of the Acquisition, the Refinancing shall have been (or shall be) consummated, all commitments relating thereto shall have been terminated, and all liens or security interests related thereto shall have been (or immediately following the initial funding of the Term Loan Facility will be) terminated or released or arrangements for such termination or release shall have been made.  Immediately after giving effect to the Transactions, the Company shall have outstanding no outstanding indebtedness for borrowed money or preferred stock (or direct or indirect guarantee or other credit support in respect thereof) other than the Surviving Debt.

 

4.             Financial Information.  The Joint Lead Arrangers shall have received (A) audited consolidated balance sheets and related statements of operations and cash flows of the Acquiror for the last three full fiscal years ended at least 90 days prior to the Closing Date (it being understood that the Joint Lead Arrangers acknowledge receipt of such audited financial statements of the Acquiror for the fiscal years ended December 31, 2011, December 31, 2012 and December 31, 2013), (B) audited consolidated balance sheets and related statements of operations and cash flows of the Target for the fiscal year ended March 31, 2014  and each subsequent fiscal year of the Target ended at least 120 days prior to the Closing Date (it being understood that the Joint Lead Arrangers acknowledge receipt of such audited financial statements of the Target for the fiscal years ended March 31, 2014), (C) unaudited consolidated balance sheets and related statements of operations and cash flows of the Acquiror and the Target for each interim quarterly period subsequent to its respective fiscal year end (but only if such period is one of the first three fiscal quarters of a fiscal year) ended at least 45 days prior to the Closing Date (it being understood that the Joint Lead Arrangers acknowledge receipt of such unaudited financial statements of the Acquiror for the fiscal quarters ended March 31, 2014 and June 30, 2014 and of the Target for the fiscal quarter ended June 30, 2014), (D) a pro forma consolidated balance sheet and related pro forma consolidated statement of operations (but not a pro forma statement of cash flows) of the Borrower (after giving effect to the Acquisition and the other Transactions) as of and for the four fiscal quarter period ending on the last day of the most recently completed four fiscal quarter period ended at least 120 days prior to the Closing Date (if such period is a fiscal year) or at least 45 days prior to the Closing Date (if such period is one of the first three fiscal quarters of a fiscal year), prepared after giving effect to the Acquisition and other Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of the statement of operations).

 

5.             Marketing Period.  The Joint Lead Arrangers shall have been afforded a period prior to the Closing Date (the “Marketing Period”) of at least 15 consecutive Business Days (as defined in the Acquisition Agreement) (ending on the business day no later than the business day immediately prior to the Closing Date) following earlier of (x) delivery of a Confidential Information Memorandum and (y) delivery of the information required to be delivered under Section 4 of the Commitment Letter necessary for inclusion in a Confidential Information Memorandum (the “Required Bank Information”), provided, that Friday, November 28, 2014 shall not be considered a business day for purposes of calculating such Marketing Period; provided further that if such 15 consecutive business day period has not ended prior to December 19, 2014, then such period shall not commence prior to January 5, 2015.  If the Borrower shall in good faith reasonably believe that it has delivered the Required Bank Information, it may deliver to the Joint Lead Arrangers written notice to that effect (stating when it believes it completed the applicable delivery), in which case the Required Bank Information shall be deemed to have been delivered on the date of the applicable notice, unless the Joint Lead Arrangers in good faith reasonably believe that the Borrower has not completed delivery of the Required Bank Information, and, within 3 business days after their receipt of such notice from the Borrower, the Joint Lead Arrangers deliver a written notice to the Borrower to that effect (stating with reasonable specificity the Required Bank Information that has not been delivered).

 

Exhibit B-2

 

6.             Payments.  All costs, fees, expenses (including reasonable and documented legal fees and out-of-pocket expenses and recording taxes and fees) and other compensation and amounts payable on the Closing Date to us, the Lenders or any of our or their respective affiliates pursuant to the Commitment Letter or the Fee Letter, shall have been (or concurrently with the initial funding of the Term Loan Facility will be) paid to the extent due and payable in accordance with the terms, respectively, thereof and invoiced at least 2 business days (unless otherwise reasonably agreed by the Borrower) prior to the Closing Date.

 

7.             Customary Closing Documents.  Delivery of the following customary documents, consistent with the Documentation Principles: customary lien, litigation and tax searches with respect to the Borrower and the Guarantors, customary legal opinions, corporate records and documents from public officials and customary officers’ certificates and payoff letters with respect to the Refinanced Debt shall have been delivered.  In addition, you shall have delivered (a) at least three business days prior to the Closing Date, all documentation and other information about the Borrower and the Guarantors required by U.S. regulatory authorities under applicable “know- your-customer” and anti-money laundering rules and regulations, including the Patriot Act as has been reasonably been requested in writing at least ten days prior to the Closing Date by the Joint Lead Arrangers and (b) a certificate from the chief financial officer of the Borrower in a form attached as Exhibit C.

 

8.             Accuracy of Representations and Warranties.  The Specified Representations shall be true and correct in all material respects (provided, that any representation and warranty that is qualified as to “materiality,” “material adverse effect” or similar language shall be true and correct in all respects (after giving effect to any such qualification therein)) and the Specified Acquisition Agreement Representations shall be true and correct except for any and all breaches of such Specified Acquisition Agreement Representations that do not give rise, individually or in the aggregate, to the right to terminate your (or any of your applicable affiliates’) obligations under the Acquisition Agreement or decline to consummate the Acquisition as a result of any such breaches of the Specified Acquisition Agreement Representations (as determined without giving effect to any waiver, amendment or other modification thereto).

 

Exhibit B-3

 

EXHIBIT C TO COMMITMENT LETTER

 

SOLVENCY CERTIFICATE

 

[BORROWER]

 

[          ], 20[   ]

 

Pursuant to Section [    ] of the Credit Agreement, dated as of the date hereof (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among [                                    ], the undersigned [chief accounting officer][other officer with equivalent duties] of the Borrower hereby certifies as of the date hereof, solely on behalf of the Borrower and not in his or her individual capacity and without assuming any personal liability whatsoever, that:

 

I am familiar with the finances, properties, businesses and assets of the Borrower and its Subsidiaries and the Target and its Subsidiaries.(1)  I have reviewed the Loan Documents and such other documentation and information and have made such investigation and inquiries as I have deemed necessary and prudent therefor.  I have also reviewed the consolidated financial statements of the Borrower and its Subsidiaries and the Target and its Subsidiaries, including projected financial statements and forecasts relating to statements of operations and cash flow statements of the Borrower and its Subsidiaries and the Target and its Subsidiaries, respectively.

 

On the Closing Date, after giving effect to the Transactions, the Borrower and its Subsidiaries (on a consolidated basis) (a) have property with fair value greater than the total amount of their debts and liabilities, contingent (it being understood that the amount of contingent liabilities at any time shall be computed as the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability), subordinated or otherwise, (b) have assets with present fair salable value not less than the amount that will be required to pay their liability on their debts as they become absolute and matured, (c) will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as they become absolute and matured and (d) are not engaged in business or a transaction, and are not about to engage in business or a transaction, for which their property would constitute an un-reasonably small capital.

 

All capitalized terms used but not defined in this certificate shall have the meanings set forth in the Credit Agreement.

 

IN WITNESS WHEREOF, I have executed this Certificate as of the date first written above.

 

	
 
    	
AMAG PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

(1)  “Subsidiaries” to be defined in a manner consistent with the Documentation Principles.

 

Exhibit C

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]