Document:

EX-10.16

 Exhibit 10.16 

[Execution Copy] 
 EMPLOYMENT
AGREEMENT 
 This EMPLOYMENT AGREEMENT (the “Agreement”) is dated November 28, 2013, and is entered into by and
between EMDEON BUSINESS SERVICES LLC, a Delaware limited liability company (the “Company”, which shall include its subsidiaries and affiliates), and Dr. Kriten Joshi (“Executive”). 

WHEREAS, the Company desires to employ Executive as its Executive Vice President, Products Strategy. 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein (including, without limitation, the Company’s
continued employment of Executive and the advantages and benefits thereby inuring to Executive) and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by each party hereto, the parties
hereby agree as follows: 
 1. Employment of Executive. Effective as of December 5, 2013 (the “Effective
Date”), the Company hereby employs Executive as Executive Vice President, Product Strategy, and Executive hereby accepts such employment with the Company on the terms set forth herein. Executive will report to the Chief Executive Officer
and perform such duties and services for the Company as may be designated from time to time by the Chief Executive Officer or his designee. Executive shall use his best and most diligent efforts to promote the interests of the Company and shall
devote all of his business time and attention to his employment under this Agreement. Executive’s principal place of employment shall be located in Massachusetts; provided, however, Executive acknowledges that he will be required to travel in
connection with the performance of his duties. Notwithstanding the foregoing, nothing herein shall preclude Executive from (i) serving, with the prior consent of the Chief Executive Officer, as a member of the board of directors or advisory
boards (or their equivalents in the case of a non-corporate entity) of non-competing businesses and charitable organizations, (ii) engaging in charitable activities and community affairs, and (iii) managing his personal investments and
affairs; provided, however, that the activities set out in clauses (i), (ii), and (iii) above shall be limited so as not to interfere, individually or in the aggregate, with the performance of his duties and responsibilities hereunder. 

2. Compensation and Benefits. 

2.1 Salary. Executive shall be paid for his services during the Employment Period (as defined below) a base salary at the annual rate
of at least $425,000. Any and all increases to Executive’s base salary (as it may be increased, the “Base Salary”) shall be determined by the Board of Directors of Emdeon Inc. (the “Board”) (or such committee
as may be designated by the Board) in its sole discretion. Such Base Salary shall be payable in equal installments, no less frequently than monthly, pursuant to the Company’s customary payroll policies in force at the time of payment, less any
required or authorized payroll deductions. 

 2.2 Bonus. Commencing with the 2014 calendar year, during the Employment Period, Executive
shall be eligible to receive an annual bonus, the target of which is 85% of Base Salary (the “Target Bonus”) and the maximum of which is 170% of Base Salary, which amount shall be determined in the sole discretion of the Board (or
such committee as may be designated by the Board) (the “Annual Bonus”). Such Annual Bonus, if any, shall be payable at such time as executive officer bonuses are paid (which is generally no later than the end of the first calendar
quarter following the year for which the Annual Bonus is earned, absent exceptional circumstances beyond the Company’s control), so long as Executive remains in the employ of the Company on the payment date. For 2013, Executive shall receive a
Target Bonus prorated for the number of days Executive is employed during 2013 so long as executive has not resigned by December 31, 2013 or been terminated by the Company for Cause. 

2.3 Benefits. During the Employment Period, Executive shall be entitled to participate, on the same basis and at the same level as
other similarly situated senior executives of the Company, in any group insurance, hospitalization, medical, health and accident, disability, fringe benefit and tax-qualified retirement plans or programs of the Company now existing or hereafter
established to the extent that he is eligible under the general provisions thereof. Executive shall be entitled to vacation time consistent with the Company’s policies, in addition to Company paid holidays and sick days as set forth in the
Company’s policies. The date or dates of such vacations shall be selected by Executive having reasonable regard to the business needs of the Company. 

2.4 Expenses. Pursuant to the Company’s customary policies in force at the time of payment, Executive shall be promptly
reimbursed, against presentation of vouchers or receipts, for all authorized expenses properly and reasonably incurred by him on behalf of the Company in the performance of his duties hereunder. 

2.5 Co-Investment. Executive will be permitted to purchase up to $1,000,000 of fully vested common stock of Beagle Parent Corp., which
directly or indirectly owns all of the capital stock of the Company, at a purchase price of $1,020 per share, in accordance with the terms of the Co-Investment Agreement attached hereto as Exhibit B, such purchase price payable in cash in
immediately available funds no later than 90 days following the Effective Date and contingent on Executive’s execution of the Stockholders’ Agreement substantially in the form attached hereto as Exhibit C. 

3. Employment Period. Executive’s employment under this Agreement shall terminate as set forth in Section 4 hereof (the
“Employment Period”). Notwithstanding such Employment Period, Executive acknowledges that Executive’s employment is for an unspecified duration that constitutes at-will employment, and that either the Company or Executive can
terminate such employment at any time, for any reason, with or without notice, subject to the consequences set forth herein. 

  
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 4. Severance Benefits. 

4.1 Termination by the Company for Cause. (a) If the Company terminates Executive’s employment for Cause, the Company shall
have no obligation to Executive other than the payment of Executive’s earned and unpaid Base Salary, vested accrued benefits under the Company’s ERISA-governed plans and accrued but unreimbursed expenses, subject to the provisions of
Section 6.11 (collectively, the “Accrued Obligations”), to the effective date of such termination. 
 (b) For purposes
of this Agreement, the term “Cause” shall mean any of the following: 
 (i) Executive’s failure to perform his duties,
failure to comply with the employment policies of the Company or any affiliate or material breach of this Agreement, any of which are not cured to the reasonable satisfaction of the Board within fifteen (15) days of written notice to the
Executive of such failure to so comply; 
 (ii) Executive’s commission of any material act of dishonesty, breach of trust or misconduct
in connection with performance of employment-related duties as determined by the Board, in its sole discretion; and 
 (iii) Executive’s
conviction of, or pleading guilty or nolo contendere to, any felony or to any crime involving dishonesty, theft or unethical business conduct. 

4.2 Permanent Disability; Death. If during the Employment Period, (i) Executive shall become ill, mentally or physically disabled,
or otherwise incapacitated so as to be unable regularly to perform the duties of his position for a period in excess of 90 consecutive days or more than 180 days in any consecutive 12 month period, or (ii) a qualified independent physician
determines that Executive is mentally or physically disabled so as to be unable to regularly perform the duties of his position and such condition is expected to be of a permanent duration (a “Permanent Disability”), then the
Company shall have the right to terminate Executive’s employment with the Company upon written notice to Executive. In the event the Company terminates Executive’s employment as a result of his Permanent Disability or death, Executive or
Executive’s estate shall be entitled to the benefits that he would have been entitled to receive if Executive’s employment had been terminated by the Company without Cause pursuant to Section 4.4 (subject to the provisos and
conditions set forth therein); provided, however, that the Company shall have no other obligation to Executive or Executive’s estate pursuant to this Agreement in the event that Executive’s employment with the Company is terminated by the
Company pursuant to this Section 4.2. 
 4.3 Resignation by the Executive. Executive may voluntarily resign from his employment
with the Company, provided that Executive shall provide the Company with thirty (30) days advance written notice (which notice requirement may be waived, in whole or in part, by the Company in its sole discretion) of his intent to resign. If
Executive so terminates his employment with the Company, other than in accordance with Section 4.5, the Company shall have no obligation other than the payment of the Accrued Obligations to the effective date of such termination. 

  
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 4.4 Termination by the Company Without Cause. Executive’s employment with the Company
may be terminated at any time by the Company without Cause. If the Company terminates Executive’s employment without Cause, the Company shall have the following obligations to Executive (but excluding any other obligation to Executive pursuant
to this Agreement): 
 (a) payment of the Accrued Obligations; 

(b) the continuation of his Base Salary (at the rate in effect at the time of such termination), as severance, for a period of one year (the
“Severance Period”), each payment being a separate payment due on the same fixed schedule that the Company follows for its regular payroll, subject to the provisions of Sections 4.5 and 6.11; and 

(c) the Company shall pay to Executive, either periodically or in a lump sum at the Company’s discretion, an amount equivalent to that
portion of the health insurance premium that it would have paid for active employees with similar coverage during the Severance Period, subject to the provisions of Sections 4.5 and 6.11. This amount shall be paid to Executive as wages and shall be
subject to all required withholding. There is no requirement that the amounts paid pursuant to this subsection be used for the purchase of health insurance or any other purpose; 

provided, however, that the continuation of such salary and benefits shall cease on the occurrence of any circumstance or event that would constitute Cause
under Section 4.1 of this Agreement (including any breach of the restrictive covenants referenced and incorporated in Section 5 below or any similar restrictive covenants to which Executive is bound). 

4.5 Release. Executive acknowledges that he must execute and not revoke a release of claims in a form provided by the Company within
the time period provided in the release in order to receive the payments and benefits under this Section 4 resulting from Executive’s separation from service. Provided that Executive complies with the foregoing sentence, the payments will
begin to be processed at the Company’s discretion after the appropriate revocation period has elapsed and in no event later than the 60th day following Executive’s separation from service. 

5. Restrictive Covenants. 

5.1 Trade Secret and Proprietary Information. Executive acknowledges and agrees to those certain covenants set forth in the Trade
Secret and Proprietary Information Agreement (the “TSPI Agreement”) set forth as Exhibit A hereto. The covenants in the TSPI Agreement do not supersede or replace any other confidentiality, non-competition or non-solicitation
agreement entered into between the Executive and the Company to the extent that such confidentiality, non-competition and/or non-solicitation agreement is more protective of the business of the Company. 

  
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 6. Miscellaneous. 

6.1 Representations and Covenants. In order to induce the Company to enter into this Agreement, Executive makes the following
representations and covenants to the Company and acknowledges that the Company is relying upon such representations and covenants: 
 (a) No
agreements or obligations exist to which Executive is a party or otherwise bound, in writing or otherwise, that in any way interfere with, impede or preclude him from fulfilling all of the terms and conditions of this Agreement. Executive will abide
by any agreements that protect proprietary information or any other information of another company while Executive is performing his duties hereunder and after his employment has terminated. 

(b) Executive, during his employment, shall use his best efforts to disclose to the Board and the Chief Executive Officer of the Company in
writing or by other effective method any bona fide information known by him and not known to the Board and/or the Chief Executive Officer of the Company that he reasonably believes would have any material negative impact on the Company. 

6.2 Entire Agreement. This Agreement, including the TSPI Agreement set forth in Exhibit A, contains the entire understanding of the
parties in respect of their subject matter and supersede upon their effectiveness all other prior agreements and understandings between the parties with respect to such subject matter. 

6.3 Notices. Any notice necessary under this Agreement shall be addressed to the General Counsel of the Company at its principal
executive office and to the Executive at the address appearing in the personnel records of Company for Executive or to either party at such other address as either party hereto may hereafter designate in writing to the other. Any notice shall be
deemed effective upon receipt thereof by the addressee or two (2) days after such notice has been mailed, return receipt requested, or sent by a nationally recognized overnight courier service, whichever comes first. 

6.4 Amendment; Waiver. This Agreement may not be amended, supplemented, canceled or discharged, except by written instrument executed
by the party against whom enforcement is sought. No failure to exercise, and no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof. No waiver of any breach of any provision of this Agreement shall be
deemed to be a waiver of any preceding or succeeding breach of the same or any other provision. 
 6.5 Binding Effect; Assignment.
The rights and obligations of this Agreement shall bind and inure to the benefit of any successor of the Company by reorganization, merger or consolidation, or any assignee of all or substantially all of the Company’s business and properties.
The Company may assign its rights and obligations under this Agreement to any of its subsidiaries or affiliates without the consent of Executive. The Company will require any such purchaser, successor or assignee to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the Company would be required to 

  
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perform it if no such purchase, succession or assignment had taken place. Executive’s rights or obligations under this Agreement may not be assigned by Executive, except that the rights
specified in Section 4.2 shall pass upon Executive’s death to Executive’s executor or administrator. 
 6.6 Headings.
The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. 

6.7 Governing Law; Forum; This Agreement shall be construed in accordance with and governed for all purposes by the laws and public
policy (other than conflict of laws principles) of the State of Tennessee applicable to contracts executed and to be wholly performed within such State. Any proceeding arising out of or relating to this Agreement shall be brought in the state courts
or federal courts in the state of Tennessee and the parties each hereby expressly submits to the personal jurisdiction and venue of such courts. 

6.8 Further Assurances. Each of the parties agrees to execute, acknowledge, deliver and perform, and cause to be executed,
acknowledged, delivered and performed, at any time and from time to time, as the case may be, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be reasonably necessary to carry out the
provisions or intent of this Agreement. 
 6.9 Severability. The parties have carefully reviewed the provisions of this Agreement and
agree that they are fair and equitable. However, in light of the possibility of differing interpretations of law and changes in circumstances, the parties agree that if any one or more of the provisions of this Agreement shall be determined by a
court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions of this Agreement shall, to the extent permitted by law, remain in full force and effect and shall in no way be affected, impaired or invalidated.

 6.10 Withholding Taxes. All payments hereunder shall be subject to any and all applicable federal, state, local and foreign
withholding taxes. 
 6.11 Section 409A. 

(a) It is intended that (1) each installment of the payments provided under this Agreement is a separate “payment” for purposes
of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and (2) the payments satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code provided
under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(9)(iii), and 1.409A-1(b)(9)(v). Notwithstanding anything to the contrary in the Agreement, if the Company determines (i) that on the date Executive’s employment with the Company
terminates or at such other times that the Company determines to be relevant, the Executive is a “specified employee” (as such term is defined under Treasury Regulation 1.409A-1(i)) of the Company and (ii) that any payments to be
provided to Executive pursuant to this Agreement are or may become subject to the additional tax under Section 409A(a)(1)(B) of the Code or any other taxes or penalties imposed under Section 409A of the Code if provided at the time
otherwise required under this Agreement, then such payments shall be delayed until the date that is six months after the date of Executive’s 

  
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“separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h)) with the Company, or, if earlier, the date of Executive’s death. Any payments delayed
pursuant to this Section 6.11 shall be made in lump sum on the first day of the seventh month following Executive’s “separation from service” (as such term is defined under Treasury Regulation 1.409A-1 (h)), or, if earlier, the
date of Executive’s death. In addition, to the extent that any reimbursement, fringe benefit or other, similar plan or arrangement in which Executive participates during the term of Executive’s employment under this Agreement or thereafter
provides for a “deferral of compensation” within the meaning of Section 409A of the Code, (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible
for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), and (ii) subject to any shorter time periods
provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was
incurred. 
 (b) Notwithstanding any other provision to the contrary, a termination of employment shall not be deemed to have occurred for
purposes of any provision of this Agreement providing for the payment of “deferred compensation” (as such term is defined in Section 409A of the Code) and the Treasury Regulations promulgated thereunder) upon or following a
termination of employment unless such termination is also a “separation from service” from the Company within the meaning of Section 409A of the Code and Section 1.409A-1(h) of the Treasury Regulations and, for purposes of any
such provision of this Agreement, references to a “separation,” “termination,” “termination of employment” or like terms shall mean “separation from service. 

(c) Notwithstanding any other provision to the contrary, in no event shall any payment under this Agreement that constitutes “deferred
compensation” for purposes of Section 409A of the Code and the Treasury Regulations promulgated thereunder be subject to offset by any other amount unless otherwise permitted by Section 409A of the Code. 

(d) For the avoidance of doubt, any payment due under this Agreement within a period following the Executive’s termination of employment,
death, Permanent Disability or other event shall be made on a date during such period as determined by the Company in its sole discretion. 

(e) This Agreement shall be interpreted in accordance with, and the Company and the Executive will use their best efforts to achieve timely
compliance with, Section 409A of the Code and the Treasury Regulations and other interpretive guidance promulgated thereunder, including without limitation any such regulations or other guidance that may be issued after the effective date of
this Agreement 
 [signature page to follow] 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

  

			
	EMDEON BUSINESS SERVICES LLC
		
	By:		 /s/ Neil de Crescenzo

	Name:		Neil de Crescenzo
	Title:		President & CEO
	
	EXECUTIVE:
	
	 /s/ Dr. Kriten Joshi

	Dr. Kriten Joshi

 EXHIBIT A 

TRADE SECRET AND PROPRIETARY 

INFORMATION AGREEMENT 
 In
consideration of my employment by Emdeon Business Services LLC, and/or any of its corporate parents, subsidiaries, divisions, or affiliates, or the successors or assigns of any of the foregoing (hereinafter referred to as the
“Company”), I hereby agree as follows: 
 1. Confidentiality. 

(a) Trade Secret and Proprietary Information. I understand and acknowledge that, during the course of my employment
arrangement with the Company and as a result of my having executed this Trade Secret and Proprietary Information Agreement, I will be granted access to valuable information relating to the Company’s business that provides the Company with a
competitive advantage, which is not generally known by, nor easily learned or determined by, persons outside the Company (collectively “Trade Secret and Proprietary Information”). The term Trade Secret and Proprietary Information shall
include, but shall not be limited to: (a) specifications, manuals, software in various stages of development; (b) customer and prospect lists, and details of agreements and communications with customers and prospects; (c) sales plans
and projections, product pricing information, acquisition, expansion, marketing, financial and other business information and existing and future products and business plans of the Company; (d) sales proposals, demonstrations systems, sales
material; (e) research and development; (f) computer programs and databases, data analytics (including, but not limited to, processes for detecting payment integrity) and data sets; (g) sources of supply; (h) identity of
specialized consultants and contractors and Trade Secret and Proprietary Information developed by them for the Company; (i) purchasing, operating and other cost data; (j) special customer needs, cost and pricing data; (k) patient
information, including without limitation Protected Health Information as defined in 45 C.F.R. 164.501 and (l) employee information (including, but not limited to, personnel, payroll, compensation and benefit data and plans). Trade Secret and
Proprietary Information shall also include all such information recorded in manuals, memoranda, projections, reports, minutes, plans, drawings, sketches, designs, formula books, data, specifications, software programs and records, whether or not
legended or otherwise identified by the Company as Trade Secret and Proprietary Information, as well as such information that is the subject of meetings and discussions and not recorded. Trade Secret and Proprietary Information shall not include
such information that I can demonstrate (i) is generally available to the public (other than as a result of a disclosure by me), (ii) was disclosed to me by a third party under no obligation to keep such information confidential or
(iii) was known by me prior to, and not as a result of, my employment or anticipated employment with the Company; provided, however, that, notwithstanding the preceding sentence, all information set forth in subsections (k) and
(l) above shall always be treated as Trade Secret and Proprietary Information, and shall not be deemed in the public domain or nonconfidential under any circumstances. 

  
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 (b) Duty of Confidentiality. I agree at all times, both during and after
my employment with the Company, to hold all of the Company’s Trade Secret and Proprietary Information in a fiduciary capacity for the benefit of the Company and to safeguard all such Trade Secret and Proprietary Information. I also agree that I
will not directly or indirectly disclose any such Trade Secret and Proprietary Information to any third person or entity outside the Company, or otherwise use such Trade Secret and Proprietary Information, except as may be necessary in the good
faith performance of my duties for the Company. I further agree that, in addition to enforcing this restriction, the Company may have other rights and remedies under the common law or applicable statutory laws relating to the protection of trade
secrets. Notwithstanding anything in this Agreement to the contrary, I understand that I may disclose the Company’s Trade Secret and Proprietary Information to the extent required by applicable laws or governmental regulations or judicial or
regulatory process, provided that I give the Company prompt notice of any and all such requests for disclosure so that it has ample opportunity to take all necessary or desired action, to avoid disclosure. 

(c) Unfair Competition. I acknowledge that the Company has a compelling business interest in preventing unfair
competition stemming from the intentional or inadvertent use or disclosure of the Company’s Trade Secret and Proprietary Information and Company Property. 

(d) Intellectual Property and Inventions. I acknowledge that all developments and any other intellectual property,
including, without limitation, the creation of new products, conferences, training/seminars, publications, programs, methods of organizing information, inventions, discoveries, concepts, ideas, improvements, patents, trademarks, trade names,
copyrights, trade secrets, designs, works, reports, computer software, flow charts, diagrams, procedures, data, documentation, and writings (collectively referred to as “Developments”) that I, alone or jointly with others, may discover,
conceive, create, make, develop, reduce to practice, or acquire at any time during or in connection with my employment with the Company are the sole and exclusive property of the Company. I hereby assign to the Company all rights, titles, and
interests in and to all such Developments, and all intellectual property related thereto. I agree to disclose to the Company promptly and fully all future Developments and, at any time upon request and at the expense of the Company, to execute,
acknowledge, and deliver to the Company all instruments that the Company shall prepare, to give evidence, and to take any and all other actions that are necessary or desirable in the reasonable opinion of the Company to enable the Company to file
and prosecute applications for, and to acquire, maintain, and enforce, all letters patent, trademark registrations, or copyrights covering the Developments in all countries in which the same are deemed necessary by the Company. All data, memoranda,
notes, lists, drawings, records, files, investor and client/customer lists, supplier lists, and other documentation (and all copies thereof) made or compiled by me or made available to me concerning the Developments or otherwise concerning the

  
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past, present, or planned business of the Company are the property of the Company, and will be delivered to the Company immediately upon the termination of my employment with the Company. 

(e) Competitive Business. I acknowledge that a business engaged in the same or similar business as the Company shall be
a Competitive Business. Thus, “Competitive Business” shall mean: (i) any enterprise engaged in providing revenue and payment cycle management and/or clinical information exchange solutions for healthcare providers (including, without
limitation, physicians, hospitals, dentists, and pharmacies), patients and payers (including, without limitation, insurance companies, government entities, HMOs, pharmacy benefits management companies and/or self-insured employer groups); and
(ii) any enterprise engaged in any other type of business in which the Company or one of its affiliates is also engaged, or plans to be engaged, during the course of my employment, so long as I am directly involved in or otherwise have been
granted access to Trade Secret and Proprietary Information related to such business or planned business on behalf of the Company or one of its affiliates. 

For purposes of clarity, such healthcare revenue and payment cycle management and clinical information exchange solutions shall include,
without limitation, (i) clearinghouse, transaction processing and other solutions for the purpose of facilitating financial, administrative or clinical information exchange, (ii) payment and program integrity and fraud, waste and abuse
management solutions, (iii) government and charity care program eligibility and enrollment services, (iv) pharmacy benefits administration services, (v) payment processing and distribution solutions and (vi) information
technology and healthcare consulting services. 
 2. Non-Disparagement. The Company has built its reputation and goodwill with
customers, vendors and others over many years and at great expense. The Company’s reputation and goodwill are vital Company assets. During and after my employment, I agree not to disparage the Company (or its affiliates) and their respective
officers, directors, employees, stockholders, agents, products or business methods/processes in any manner likely to be harmful to them or their business, business reputation or personal reputation. 

3. Non-Solicitation of Employees, Customers. In order to protect the Company’s Trade Secret and Proprietary
Information; 
 (a) during my employment with the Company and for a period of one (1) year after the termination of such
employment for any reason (the “Restricted Period”), I will not, without the express written permission of Emdeon Business Services LLC, directly or indirectly solicit, induce, hire, engage, or attempt to hire or engage any employee or
independent contractor of the Company, or in any other way interfere with the Company’s employment or contractual relations with any of its employees or independent contractors, nor will I solicit, induce, hire, engage or attempt to hire or
engage any individual who was an employee of the Company at any time during the one year period immediately prior to the termination of my employment with the Company; 

  
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 (b) during the Restricted Period, I will not, without the express written
permission of Emdeon Business Services LLC, directly or indirectly contact, call upon or solicit, on behalf of a Competitive Business, any existing or prospective client, or customer of the Company whom I serviced, or with whom I otherwise developed
a relationship, or of whom I otherwise became aware, as a result of my employment with the Company, nor will I attempt to divert or take away from the Company the business of any such client or customer. 

4. Restrictions on Competitive Employment. In order to protect the Company’s Trade Secret and Proprietary
Information and/or the good will of the Company, during the Restricted Period, I will not (as principal, shareholder, partner, equity participant, sole proprietor, director, officer, agent, employee, consultant, independent contractor, or
otherwise), anywhere in the United States and Canada, including but not limited to the states and locations in which I have been engaged in the business of the Company, directly or indirectly, without the prior written approval of Emdeon Business
Services LLC, engage in, or perform any services for, a Competitive Business. Notwithstanding the foregoing, I understand that I may have an interest consisting of publicly traded securities constituting less than 1 percent of any class of publicly
traded securities in any public company engaged in a Competitive Business so long as I am not employed by and do not consult with, or become a director of or otherwise engage in any activities for, such company. The Restricted Period shall be
extended by the length of any period during which I am in breach of the terms of this paragraph. 
 5. Company
Property. I acknowledge that: (a) all Trade Secret and Proprietary Information; (b) computers, and computer-related hardware and software, cell phones and any other equipment provided to me by the Company; and (c) all documents I
create or receive in connection with my employment with the Company, belongs to the Company, and not to me personally (collectively, “Company Property”). Such documents include, without limitation and by way of non-exhaustive example only:
papers, files, memoranda, notes, correspondence, lists, e-mails, reports, records, data, research, proposals, specifications, models, flow charts, schematics, tapes, printouts, designs, graphics, drawings, photographs, abstracts, summaries, charts,
graphs, notebooks, investor lists, customer/client lists, and all other compilations of information, regardless of how such information may be recorded and whether in printed form or on a computer or magnetic disk or in any other medium. I agree to
return all Company Property (including all copies) to the Company immediately upon any termination of my employment, and further agree that, during and after my employment with the Company, I will not, under any circumstances, without the
Company’s specific written authorization in each instance, directly or indirectly disclose Company Property or any information contained in Company Property to anyone outside the Company, or otherwise use Company Property for any purpose other
than the advancement of the Company’s interests. 
 6. Third-Parties and Goodwill. I acknowledge that all
third-parties I service or propose to service while employed by the Company are doing business 

  
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with the Company and not me personally, and that, in the course of dealing with such third-parties, the Company establishes goodwill with respect to each such third-party that is created and
maintained at the Company’s expense (“Third-Party Goodwill”). I also acknowledge that, by virtue of my employment with the Company, I have gained or will gain knowledge of the business needs of, and other information concerning,
third-parties, and that I would inevitably have to draw on such information were I to solicit or service any of the third parties on my own behalf or on behalf of a Competitive Business. 

7. Injunctive Remedies. 

(a) I acknowledge and agree that the restrictions contained in this Agreement are reasonably necessary to protect the
legitimate business interests of the Company, and that any violation of any of the restrictions will result in immediate and irreparable injury to the Company for which monetary damages will not be an adequate remedy. I further acknowledge and agree
that if any such restriction is violated, the Company will be entitled to immediate relief enjoining such violation (including, without limitation, temporary and permanent injunctions, a decree for specific performance, and an equitable accounting
of earnings, profits, and other benefits arising from such violation) in any court having jurisdiction over such claim, without the necessity of showing any actual damage or posting any bond or furnishing any other security, and that the specific
enforcement of the provisions of this Agreement will not diminish my ability to earn a livelihood or create or impose upon me any undue hardship. I also agree that any request for such relief by the Company shall be in addition to, and without
prejudice to, any claim for monetary damages that the Company may elect to assert. 
 (b) I acknowledge and agree that if I
breach or threaten to breach this Agreement, I shall be required to reimburse the Company for all reasonable costs incurred in preventing and remedying such breach or threatened breach, including but not limited to attorneys’ fees. 

8. Severability Provision. I acknowledge and agree that the restrictions imposed upon me by the terms, conditions, and
provisions of this Agreement are fair, reasonable, and reasonably required for the protection of the Company. In the event that any part of this Agreement is deemed invalid, illegal, or unenforceable, all other terms, conditions, and provisions of
this Agreement shall nevertheless remain in full force and effect. In the event that the provisions of any of Sections 1, 2, 3, or 4 of this Agreement relating to the geographic area of restriction, the length of restriction or the scope of
restriction shall be deemed to exceed the maximum area, length or scope that a court of competent jurisdiction would deem enforceable, said area, length or scope shall, for purposes of this Agreement, be deemed to be the maximum area, length of time
or scope that such court would deem valid and enforceable, and that such court has the authority under this Agreement to rewrite (or “blue-pencil”) the restriction(s) at-issue to achieve this intent. 

9. Non-Waiver. Any waiver by the Company of my breach of any term, condition, or provision of this Agreement shall not
operate or be construed as a waiver of the Company’s rights upon any subsequent breach. 

  
 5 

 10. Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, I HEREBY
KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION ARISING OUT OF, UNDER, IN CONNECTION WITH, OR IN ANY WAY RELATED TO THIS AGREEMENT. THIS INCLUDES, WITHOUT LIMITATION, ANY LITIGATION
CONCERNING ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN), OR ACTION OF THE COMPANY OR ME, OR ANY EXERCISE BY THE COMPANY OR ME OF OUR RESPECTIVE RIGHTS UNDER THIS AGREEMENT OR IN ANY WAY RELATING TO THIS AGREEMENT.
I FURTHER ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE COMPANY TO ISSUE AND ACCEPT THIS AGREEMENT. 
 11.
Continuation of Employment. This Agreement does not constitute a contract for any specific period of employment or an implied promise to continue my employment or status with the Company; nor does this Agreement affect my rights or the rights
of the Company to terminate my employment status at any time with or without cause. 
 12. Governing Law. This
Agreement shall be construed in accordance with and governed for all purposes by the laws and public policy of Tennessee, without regard to principles of conflict of laws. 

 

			
	TSPI ACCEPTANCE:		
		
	 /s/ Dr. Kriten Joshi
		Date: 11/28/2013

  
 6ex10-185.htm

Exhibit 10.18.5

 

EXECUTION VERSION

WAIVER AND ACKNOWLEDGMENT UNDER COMMERCIAL CREDIT AGREEMENT

AND

FIFTH AMENDMENT THERETO

 

 

This Waiver and Acknowledgment under Commercial Credit Agreement and Fifth Amendment Thereto (this “Amendment”), dated as of December 31, 2014, is entered into by TALON INTERNATIONAL, INC., a Delaware corporation (the “Borrower”), and MUFG UNION BANK, N.A., a national banking association formerly known as “Union Bank, N.A.” (the “Bank”).

 

Recitals

 

A.     The Borrower and the Bank are party to a Commercial Credit Agreement dated as of December 31, 2013 (the “Original Credit Agreement”), as amended by Amendment Letters dated April 22, 2014, June 27, 2014, July 30, 2014 and September 24, 2014 (the Original Credit Agreement, as so amended, herein called the “Credit Agreement”). Any term defined in the Credit Agreement has the meaning specified therein when used herein, unless otherwise defined herein.

 

B.     The Borrower has informed the Bank that the Borrower will violate the financial covenants contained in Sections 8.1(b) and (c) of the Credit Agreement (concerning the Fixed Charge Coverage Ratio and EBITDA, respectively) for the 12-month period ended as of December 31, 2014. The Borrower has requested that the Bank waive the Events of Default caused by the covenant violations described in the preceding sentence, and the Bank is willing to do so on the terms and conditions contained in this Amendment.

 

C.     In addition, the Borrower and the Bank wish to (i) acknowledge how a prepayment in the amount of $500,000 has been applied to the principal of the Term Loan by the Bank and (ii) amend certain other provisions of the Credit Agreement.

 

D.     Accordingly, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and the Bank hereby agree as set forth below.

 

 

SECTION 1.     Waiver. Subject to satisfaction of the condition precedent set forth in Section 4 of this Amendment, the Bank hereby waives the Events of Default caused by the Borrower’s violation of the financial covenants contained in Sections 8.1(b) and (c) of the Credit Agreement (concerning the Fixed Charge Coverage Ratio and EBITDA, respectively) for the 12-month period ended as of December 31, 2014; provided, however, that this waiver is not a waiver of any subsequent breach of the same or any other provision of the Credit Agreement or any other Loan Document, and the Bank reserves all of the rights, powers and remedies available to it under applicable law, in equity and under the Credit Agreement and the other Loan Documents if any subsequent breach of the same or any other provision of the Credit Agreement or any other Loan Document should occur.

 

 

 

 

 

 

SECTION 2.     Acknowledgment of Application of Prepayment. On December 31, 2014 the Borrower made a prepayment of principal in the amount of $500,000 for application to the Term Loan. The Borrower and the Bank hereby acknowledge that, pursuant to the final sentence of Section 1.2 of the Credit Agreement, the Bank has elected to apply that prepayment equally to the final 24 repayment installments of the Term Loan and that, accordingly, (a) $2,833,333.32 of principal of the Term Loan remains outstanding as of the date hereof, and (b) the Borrower is obligated to repay the remaining principal of the Term Loan in (i) 23 monthly installments of $118,055.55 each, payable on the last day of each calendar month, commencing on January 31, 2015 and ending on November 30, 2016, and (ii) a final installment in the amount of $118,055.67, payable on December 30, 2016, together with all accrued but unpaid interest on the Term Loan and all other costs, expenses, fees and other charges provided for in the Credit Agreement.

 

SECTION 3.     Amendments to Credit Agreement. Subject to satisfaction of the condition precedent set forth in Section 4 of this Amendment, the Borrower and the Bank hereby agree that the Credit Agreement is amended as set forth below.

 

(a)     The last sentence of Section 6 of the Credit Agreement is amended in full to read as follows:

 

“Borrower and Talon Shenzhen shall, not later than March 31, 2015, complete all such action, including without limitation approval by and registration with the competent authorities in the People’s Republic of China, as requested by Bank with respect to the security interest specified in clause (b) above.”

 

(b)     Section 8.3(g) of the Credit Agreement is re-lettered as Section 8.3(h), and a new Section 8.3(g) is added to the Credit Agreement to read as follows:

 

“(g) Within five (5) business days after any Event of Default occurs under Section 9(p) hereof, notice of the same.”

 

SECTION 4.     Condition Precedent to Effectiveness. This Amendment shall become effective on the date on which it has been executed and delivered by the Borrower, the Guarantors and the Bank.

 

SECTION 5.     Representations and Warranties. In order to induce the Bank to enter into this Amendment, the Borrower represents and warrants to the Bank as set forth below.

 

(a)     The Borrower has all requisite power and authority to enter into this Amendment and to carry out the transactions contemplated hereby and by the Credit Agreement as amended hereby.

 

(b)     The execution and delivery of this Amendment by the Borrower, and the performance by the Borrower of this Amendment and the Credit Agreement as amended hereby, have been duly authorized by all necessary action on the part of the Borrower.

 

 

 

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(c)     The execution and delivery of this Amendment by the Borrower, and the performance by the Borrower of its obligations under this Amendment and the Credit Agreement as amended hereby, do not and will not (i) violate any of the organizational documents of the Borrower or otherwise require any approval of any stockholder of the Borrower, except for such approvals as have been obtained and are in full force and effect, (ii) violate any provision of any law applicable to the Borrower, (iii) result in or require the creation or imposition of any lien upon any of the properties or assets of the Borrower (other than any liens in favor of the Bank) or (iv) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under, or otherwise require any approval or consent of any person or entity under, any contractual obligation of the Borrower.

 

(d)     The execution and delivery of this Amendment by the Borrower, and the performance by the Borrower of this Amendment and the Credit Agreement as amended hereby, do not and will not require any registration with, consent or approval of or notice to, or other action to, with or by, any governmental authority, except such as have been obtained and are in full force and effect.

 

(e)     This Amendment has been duly executed and delivered by the Borrower. Each of this Amendment and the Credit Agreement as amended hereby is a legally valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.

 

(f)     Each of the collateral documents included in the Loan Documents (the “Collateral Documents”) constitutes a valid and perfected first-priority lien on the collateral purported to be encumbered thereby (subject to liens permitted to exist by the terms thereof), enforceable against all third parties in all jurisdictions, and secures (directly or, through a Guaranty, indirectly) the payment of all obligations of the Borrower under the Credit Agreement as amended hereby and the other Loan Documents, and the execution and delivery of this Amendment and the performance of this Amendment and the Credit Agreement as amended hereby do not adversely affect the lien of any Collateral Document.

 

(g)     The representations and warranties contained in the Credit Agreement and in the other Loan Documents are true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which are true and correct in all respects) on and as of the date hereof to the same extent as though made on and as of that date, except to the extent that such representations and warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which were true and correct in all respects) on and as of such earlier date.

 

(h)     After giving effect to this Amendment, no event has occurred and is continuing, or would result from the effectiveness of this Amendment or the consummation of the transactions contemplated hereby, that constitutes an Event of Default or that, with the giving of notice or the lapse of time, or both, would constitute an Event of Default.

 

 

 

- 3 -

 

 

SECTION 6.     Reference to and Effect on Loan Documents.

 

(a)     On and after the date hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the Credit Agreement, “thereunder,” “thereof,” “therein” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended by this Amendment.

 

(b)     Except as specifically contemplated by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. Without limiting the generality of the foregoing, the Collateral Documents and all of the collateral described therein do and shall continue to secure (directly or, through a Guaranty, indirectly) the payment of all obligations under the Credit Agreement as amended hereby and the other Loan Documents.

 

(c)     The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Bank under any of the Loan Documents or constitute a waiver of any provision of any of the Loan Documents, except as expressly provided herein.

 

SECTION 7.     Guarantor Consent. By its execution of this Amendment, each Guarantor hereby (a) consents to the amendments to the Credit Agreement in Section 3 of this Amendment and to all previous amendments to the Original Credit Agreement and (b) confirms and agrees that its Guaranty is and shall continue to be in full force and effect and is ratified and confirmed in all respects.

 

SECTION 8.     Execution in Counterparts. This Amendment may be executed in any number of counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original and all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic format (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION 9.     Governing Law. This Amendment and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Amendment or any of the transactions contemplated hereby or by the Credit Agreement as amended hereby shall be governed by, and construed and enforced in accordance with, the laws of the State of California without regard to its conflicts-of-laws principles, other than California Civil Code Section 1646.5.

 

SECTION 10.     Headings. Section headings herein are included for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

 

[Signature page follows.]

 

 

 

- 4 -

 

 

The parties hereto have caused this Amendment to be duly executed and delivered by their respective duly authorized officers, as of the date first written above.

 

 

	
 
	
TALON INTERNATIONAL, INC.  

	
 
	
 
	
 
	
 

	 	 	 	 
	 	By:	/s/ Lonnie Schnell 	 
	
 
	
 
	
Lonnie Schnell 
	
 

	 	 	Chief Executive Officer & Secretary	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	TAG-IT PACIFIC LIMITED	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Lonnie Schnell 	 
	 	 	Lonnie Schnell	 
	 	 	Chief Executive Officer & Secretary	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	TALON TECHNOLOGIES, INC.	 
	 	 	 
	 	 	 
	 	By: 	/s/ Lonnie Schnell 	 
	 	 	Lonnie Schnell	 
	 	 	Chief Executive Officer & Secretary	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	MUFG UNION BANK, N.A.	 
	 	 	 
	 	 	 
	 	By:	/s/ Rudy Cedillos	 
	 	 	Rudy Cedillos	 
	 	 	Vice President	 

  

 

S-1

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