Document:

Ex-10.22 First Amendment to Credit Agreement

 

EXHIBIT
10.22

FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of May 14, 2007,
is by and among SUNAIR SERVICES CORPORATION (f/k/a SUNAIR ELECTRONICS, INC., a Florida corporation
(the “Borrower”), each of those subsidiaries of the Borrower party hereto (each a
“Guarantor”, and collectively, the “Guarantors”), the several banks and other
financial institutions (the “Lenders”) from time to time party to the Credit Agreement
(defined below) and WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders
(the “Agent”).

RECITALS

     A. The Borrower, the Guarantors, the Lenders and the Agent have entered into that certain
Credit Agreement, dated as of June 7, 2005, as amended, supplemented or otherwise modified (the
“Credit Agreement”).

     B. The Borrower, the Guarantors, the Lenders and the Agent have agreed to modify the Credit
Agreement as follows:

     NOW, THEREFORE, the parties hereto agree as follows:

     1. The Credit Agreement is hereby amended as follows:

     (a) Section 1.1 is hereby amended by amending in their entirety the
following definitions so that such definitions now read as follows:

     “Applicable Percentage” shall mean, for any day, the rate per
annum set forth below opposite the applicable Level then in effect:

	 	 	 	 	 	 	 	 	 
	Level	 	Leverage Ratio	 	 	Applicable Percentage	 
	I
	 	 	33.25x	 	 	 	4.00	%
	II
	 	<3.25x but 33.00x	 	 	3.50	%
	    III
	 	<3.00x but 32.50x	 	 	2.75	%
	IV
	 	 	<2.50x	 	 	 	2.50	%

     The Applicable Percentage shall, in each case, be determined and
adjusted quarterly on the date three (3) Business Days after the date on
which the Administrative Agent has received from the Borrower the quarterly
financial information and certifications required to be delivered
to the Administrative Agent and the Lenders in accordance with the
provisions of Sections 5.1(a), 5.1(b) and 5.2(b) (each an “Interest
Determination Date”). Such Applicable Percentage shall be effective
from

 

 

such Interest Determination Date until the next such Interest
Determination Date. After the Closing Date, if the Borrower shall fail to
provide the financial information and certifications in accordance with the
provisions of Sections 5.1(a), 5.1(b) and 5.2(b) or an Event of Default
shall have occurred and be continuing, the Applicable Percentage shall, on
the date three (3) Business Days after the date by which the Borrower was so
required to provide such financial information and certifications to the
Administrative Agent and the Lenders, be based on Level I until such time as
such information and certifications are provided, whereupon the Level shall
be determined by the then current Leverage Ratio

     “Consolidated EBITDA” shall mean, for any applicable period of
computation, (a) Consolidated Net Income for such period plus (b) the sum of
the following to the extent deducted in calculating Consolidated Net Income:
(i) Consolidated Interest Expense for such period, (ii) the provision for
Federal, state, local and foreign income taxes payable by the Borrower and
its Subsidiaries for such period, (iii) depreciation and amortization
expense for such period, (iv) other non-cash expenses of the Borrower and
its Subsidiaries, including, but not limited to, stock based compensation,
equity based compensation, bad debt reserves, goodwill impairment and any
other non-cash expenses reflected on the Borrower’s financial statements and
(v) solely for the fiscal quarter ended March 31, 2007, the payment of the
management fee (not to exceed $390,624) to RPC Financial Advisors, LLC.

     “Reserves” shall mean (a) an amount equal to $500,000 which
represents approximately six (6) months’ rent under all real estate leases
of the Acquired Business (provided, however, if the Acquired Business
obtains a lien waiver from any landlord under any of such leases in form
satisfactory to the Agent, such amount shall be reduced by an amount equal
to six (6) months’ rent with respect to such lease as set forth on the
schedule to be delivered to the Agent pursuant to Section 5.2(f) hereof) and
(b) an amount equal to $803,000 which represents the approximate value of
the assets of Percipia, Inc. and Percipia Networks, Inc. (provided, however,
such reserve will be eliminated upon the termination by Bank One, N.A. of
its UCC financing statements filed against Percipia, Inc. and Percipia
Networks, Inc.).

     “Revolving Commitment Termination Date” shall mean April 1,
2008.

     (b) Section 1.1 is hereby further amended by adding the following
sentence at the end of the definition of “Funded Debt”:

     For the avoidance of doubt, Funded Debt shall include any Letters of
Credit issued by the Agent on behalf of the Borrower or any of its
Subsidiaries and any promissory note issued by any Seller that is not

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     subordinated to the Indebtedness arising or existing under the Credit
Agreement and the other Credit Documents.

     (c) Section 2.1(a) is amended in its entirety so that such Section now
reads as follows:

     (a) Revolving Commitment. During the Commitment Period,
subject to the terms and conditions hereof, each Lender severally agrees to
make revolving credit loans (“Revolving Loans”) to the Borrower from
time to time for the purposes hereinafter set forth; provided,
however, that (i) with regard to each Lender individually, the sum
of such Lender’s share of outstanding Revolving Loans plus such
Lender’s LOC Commitment Percentage of LOC Obligations shall not exceed such
Lender’s Revolving Commitment Percentage of the aggregate Revolving
Committed Amount, and (ii) with regard to the Lenders collectively, the sum
of the aggregate amount of outstanding Revolving Loans plus LOC
Obligations shall not exceed the aggregate Revolving Committed Amount then
in effect. For purposes hereof, the aggregate amount available hereunder
shall be SIXTEEN MILLION DOLLARS ($16,000,000) (as such aggregate maximum
amount may be reduced from time to time as provided in Section 2.4, the
“Revolving Committed Amount”). Revolving Loans may consist of
Floating LIBOR Rate Loans or Fixed LIBOR Rate Loans, or a combination
thereof, as the Borrower may request, and may be repaid and reborrowed in
accordance with the provisions hereof; provided, however,
the Revolving Loans made on the Closing Date or on either of the two
Business Days immediately following the Closing Date may only consist of
Floating LIBOR Rate Loans. Fixed LIBOR Rate Loans shall be made by each
Lender at its LIBOR Lending Office and Floating LIBOR Rate Loans at its
Domestic Lending Office.

     (d) Section 2.4(b) is amended in its entirety so that such Section now
reads as follows:

     (b) Mandatory Reductions. The Revolving Commitment Amount
shall be reduced by $2,500,000 on June 30, 2007, unless certain legacy
businesses of the Borrower are sold prior to such date, in which case, no
such reduction shall be required.

     (e) Section 5.9(a) is amended in its entirety so that such Section now
reads as follows:

     (a) Leverage Ratio. The Leverage Ratio shall be less than or
equal to the following amounts as of the last day of each fiscal quarter
ending during the following periods:

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	Period	 	Maximum Ratio
	January 1, 2007 through March 31, 2007

	 	4.70 to 1.0
	April 1, 2007 through June 30, 2007

	 	3.50 to 1.0
	July 1, 2007 and thereafter

	 	3.25 to 1.0

     (f) Section 5.9(b) is amended in its entirety so that such Section now
reads as follows:

     (b) Fixed Charge Coverage Ratio. The Fixed Charge Coverage
Ratio shall be greater than or equal to the following amounts as of the last
day of each fiscal quarter ending during the following periods:

	 	 	 
	Period	 	Maximum Ratio
	January 1, 2007 through March 31, 2007

	 	1.10 to 1.0
	April 1, 2007 and thereafter

	 	1.25 to 1.0

     (g) Section 5.9(c) is amended in its entirety so that such Section now
reads as follows:

     (c) Consolidated EBITDA. Consolidated EBITDA shall be at least
each of the following amounts for each of the rolling four fiscal quarterly
periods ending as of the last day of each fiscal quarter ending during the
following periods:

	 	 	 	 	 
	Period	 	Minimum Amount	 
	January 1, 2007 through March 31, 2007
	 	$	2,000,000	 
	April 1, 2007 through June 30, 2007
	 	$	2,500,000	 
	July 1, 2007 and thereafter
	 	$	3,000,000	 

     2. The Agent shall have received an amendment fee in the amount of $15,000 on the date
hereof.

     3. Borrowers will each execute such additional documents as are reasonably requested by
the Agent to reflect the terms and conditions of this Amendment and will cause to be
delivered such certificates, legal opinions and other documents as are reasonably required
by the Agent. In addition, the Borrower will pay all costs and expenses in connection with
the preparation, execution and delivery of the documents

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executed in connection with this transaction, including, without limitation, the
reasonable fees and out-of-pocket expenses of special counsel to the Agent as well as any
and all filing and recording fees and stamp and other taxes with respect thereto and to save
the Agent harmless from any and all such costs, expenses and liabilities.

     4. Except as expressly amended hereby, all of the provisions of the Credit Agreement
and the Credit Documents shall remain unchanged and shall continue to be, and shall remain,
in full force and effect in accordance with their respective terms. The amendments set
forth herein shall be limited precisely as provided for herein to the provisions expressly
amended herein and any waivers of any provisions of the Credit Agreement or other Credit
Documents granted prior to the date hereof shall be limited to such waiver on the date
waived and, in each case, the amendments and the waivers shall not be deemed to be a waiver
of, an amendment to, consent to or modification of any other term or provision of the Credit
Agreement or any other Credit Document or of any transaction or further or future action on
the part of the Borrower which would require the consent of the Lenders under the Credit
Agreement or any of the Credit Documents.

     5. This Amendment is a Credit Document executed pursuant to the Credit Agreement and
shall (unless otherwise expressly indicated therein) be construed, administered and applied
in accordance with the terms and provisions of the Credit Agreement.

     6. At such time as this Amendment shall become effective, all references in the Credit
Documents to the “Credit Agreement” shall be deemed to refer to the Credit Agreement as
amended by this Amendment.

     7. This Amendment shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.

     8. This Amendment may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed an original, and it shall not be necessary in making
proof of this Amendment to produce or account for more than one counterpart.

     9. THIS AMENDMENT AND THE OTHER DOCUMENTS AND AGREEMENTS EXECUTED IN CONNECTION
HEREWITH (UNLESS SPECIFICALLY STIPULATED TO THE CONTRARY IN SUCH DOCUMENT OR AGREEMENT), AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER, SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

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     IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be duly executed
and delivered by its proper and duly authorized officers as of the day and year first above
written.

	 	 	 	 	 
	BORROWER: 	SUNAIR SERVICES CORPORATION (f/k/a/ SUNAIR ELECTRONICS, INC.)

 	 
	 	By:  	/s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 

	 	 	 	 	 
	GUARANTORS: 	SUNAIR INTERNATIONAL SALES CORP.

 	 
	 	By:  	/s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	 	MIDDLETON PEST CONTROL, INC.

 	 
	 	By:  	                 /s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	 	PERCIPIA, INC.

 	 
	 	By:  	                 /s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	PERCIPIA NETWORKS, INC.

 	 
	 	By:  	/s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Vice President	 
	 

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	 	SUNAIR SOUTHEAST PEST HOLDINGS, INC.

 	 
	 	By:  	/s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	 	SUNAIR PEST HOLDINGS, INC.

 	 
	 	By:  	                                  /s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	 	SUNAIR SERVICES CORPORATION

 	 
	 	By:  	                                  /s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	SUNAIR COMMUNICATIONS, INC.

 	 
	 	By:  	                                  /s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	 	SUNAIR FLORIDA PEST HOLDINGS, INC.

 	 
	 	By:  	/s/ Edward M. Carriero, Jr.
 	 
	 	 	Name:  	Edward M. Carriero, Jr. 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	ADMINISTRATIVE AGENT AND LENDERS: 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent and as a Lender

 	 
	 	By:  	/s/ Karen Leikert
 	 
	 	 	Name:  	Karen Leikert 	 
	 	 	Title:  	Senior Vice President 	 
	 

7EX-10.1  Consent to Extension Agreement & Waiver

 

Exhibit 10.1

Execution Version

CONSENT TO EXTENSION AGREEMENT AND WAIVER

     This Consent to Extension Agreement and Waiver (this “Agreement”) dated as of May 15,
2007 is made by and among PEDIATRIX MEDICAL GROUP, INC., a Florida corporation, and certain of its
subsidiaries and affiliates (collectively, the “Borrowers”), BANK OF AMERICA, N.A., a national
banking association organized and existing under the laws of the United States (“Bank of America”),
in its capacity as administrative agent for the Lenders (as defined in the Credit Agreement (as
defined below)) (in such capacity, the “Administrative Agent”), and each of the Lenders signatory
hereto.

W I T N E S S E T H:

     WHEREAS, the Borrowers, the Administrative Agent and the Lenders have entered into that
certain Credit Agreement dated as of July 30, 2004 (as previously amended and as from time to time
hereafter further amended, modified, supplemented, restated, or amended and restated, the “Credit
Agreement”; capitalized terms used in this Agreement not otherwise defined herein shall have the
respective meanings given thereto in the Credit Agreement), pursuant to which the Lenders have made
available to the Borrowers a revolving credit facility, including a letter of credit facility and a
swing line facility; and

     WHEREAS, the Company previously advised the Administrative Agent and the Lenders that it would
not deliver the financial statements for the fiscal quarters ended June 30, 2006 and September 30,
2006 within the time provided by Section 6.01(b) of the Credit Agreement, the financial
statements for the fiscal year ended December 31, 2006 within the time provided by Section
6.01(a) of the Credit Agreement, the certificate of its independent certified public
accountants certifying the annual financial statements for the fiscal year ended December 31, 2006
(the “Accountants’ Certificate”) within the time provided by Section 6.02(a) of the Credit
Agreement, or the Compliance Certificate for each such quarter and fiscal year within the time
provided by Section 6.02(b) of the Credit Agreement, and pursuant to that certain Consent
to Extension Agreement dated as of March 15, 2007 (the “Prior Extension Agreement”) the parties
thereto agreed to extend such delivery requirement until May 15, 2007; and

     WHEREAS, the Company has now advised the Administrative Agent and the Lenders that it will not
deliver (a) the financial statements for the fiscal quarters ended June 30, 2006, September 30,
2006 and March 31, 2007 within the time provided by Section 6.01(b) of the Credit
Agreement, (b) the financial statements for the fiscal year ended December 31, 2006 within the time
provided by Section 6.01(a) of the Credit Agreement or the related Accountants’ Certificate
within the time provided by Section 6.02(a) of the Credit Agreement, or (c) the Compliance
Certificates for such quarters and fiscal year within the time provided by Section 6.02(b)
of the Credit Agreement, as certain of such times were previously extended by the Prior Extension
Agreement, and the Company has therefore requested that the Administrative Agent, the Swing Line
Lender, the L/C Issuer and the Lenders consent to extend the time for delivering all such financial
statements, Compliance Certificates and the Accountants’ Certificate until

 

 

August 14, 2007, and the parties hereto are willing so to consent to the extension of each
such delivery pursuant to Section 10.01 of the Credit Agreement until such time on the
terms and conditions set forth in this Agreement;

     WHEREAS, the Company has previously advised the Administrative Agent that it did not deliver
the annual budget required by Section 6.01(c) of the Credit Agreement for the fiscal year
ending December 31, 2007 (the “2007 Budget”) within the time period provided therefor, and has
previously requested that the Administrative Agent, the Swing Line Lender, the L/C Issuer and the
Lenders waive an Default or Event of Default arising from such delay in the delivery of the 2007
Budget (the “Specified Event of Default”), which Specified Event of Default was waived pursuant to
the Prior Extension Agreement, but only so long as the 2007 Budget was delivered on or prior to May
15, 2007;

     WHEREAS, the Company has requested that the Administrative Agent, the Swing Line Lender, the
L/C Issuer and the Lenders continue the waiver of the Specified Event of Default set forth in the
Prior Extension Agreement so long as the 2007 Budget is delivered on or prior to August 14, 2007,
and the parties hereto are willing so to continue such waiver on the terms and conditions set forth
in this Agreement;

     WHEREAS, the Company has notified the Administrative Agent that (a) prior to the date hereof
it dissolved Pediatrix Medical Group of Delaware, Inc. (the “Dissolved Borrower”), a Borrower under
the Credit Agreement, (b) at the time the Dissolved Borrower was so dissolved, it had no assets or
operations, and (c) such dissolution of the Borrower may be interpreted to be an Event of Default
as a violation of Section 7.04 of the Credit Agreement (the “Potential Event of Default”);
and

     WHEREAS, the Company has requested that the Administrative Agent, the Swing Line Lender, the
L/C Issuer and the Lenders waive the Potential Event of Default, and the parties hereto are willing
so to consent to such waiver on the terms and conditions set forth in this Agreement;

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

     1. Consent to Extension. Subject to the terms and conditions set forth herein, the
Administrative Agent, the Swing Line Lender, the L/C Issuer and the Required Lenders consent to the
extension of the time for delivery to August 14, 2007 for each of the following: (i) the financial
statements for the fiscal quarters of the Company ended June 30, 2006, September 30, 2006 and March
31, 2007 pursuant to Section 6.01(b) of the Credit Agreement, (ii) the financial statements
for the fiscal year of the Company ended December 31, 2006 pursuant to Section 6.01(a) of
the Credit Agreement, (iii) the Compliance Certificates for each such period pursuant to
Section 6.02(b) of the Credit Agreement, and (iv) the Accountants’ Certificate pursuant to
Section 6.02(a); provided that such consent shall only apply to an extension for
the financial statements, Compliance Certificates and Accountants’ Certificate specifically
enumerated in subparts (i) through (iv) above, and not to any other financial statement, Compliance
Certificate or similar accountants’ certificate for any other period.

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     2. Waivers. Subject to the terms and conditions set forth herein, the Administrative
Agent, the Swing Line Lender, the L/C Issuer and the Required Lenders hereby agree:

     (a) to continue the waiver of the Specified Event of Default provided in the Prior
Extension Agreement; provided that (i) such waiver shall only apply to any Default
or Event of Default arising directly from the failure to deliver the 2007 Budget within the
time provided by Section 6.01(c) of the Credit Agreement therefor, and not to any
other Default or Event of Default, and (ii) the continuation of waiver contained in this
Paragraph 2, shall terminate, and the Specified Event of Default shall immediately
become an Event of Default, if the Company does not deliver the 2007 Budget on or prior to
August 14, 2007; and

     (b) to waive the Potential Event of Default, provided that such waiver shall
only apply to any Default or Event of Default arising directly from any violation of Section
7.04 of the Credit Agreement as a result of the dissolution of the Dissolved Borrower, and
not to any other Default or Event of Default.

     3. Effectiveness; Conditions Precedent. The effectiveness of this Agreement and the
consent to extension of time and waivers provided herein are subject to the satisfaction of the
following conditions precedent, after which such satisfaction the consent to extension of time
herein provided shall be deemed to be effective:

     (a) the Administrative Agent shall have received each of the following documents or
instruments in form and substance reasonably acceptable to the Administrative Agent:

     (i) an original or facsimile (promptly followed by originals) executed
counterpart of this Agreement, duly executed by each Borrower, the Administrative
Agent, the Swing Line Lender, the L/C Issuer and the Required Lenders; and

     (ii) such other documents, instruments, certifications, undertakings, further
assurances and other matters as the Administrative Agent shall reasonably request;

     (b) all fees and expenses payable to the Administrative Agent and the Lenders
(including the fees and expenses of counsel to the Administrative Agent) invoiced to date
shall have been paid in full.

     4. Consent and Continued Enforceability. Each Borrower hereby consents, acknowledges
and agrees to the consent to extension of time and the waivers set forth herein and hereby confirms
and ratifies in all respects its obligations under the Credit Agreement and each other Loan
Document (including without limitation the continuation of such Borrower’s payment and performance
obligations thereunder upon and after the effectiveness of this Agreement and the consent to
extension of time contemplated hereby) and the enforceability of each such Loan Document against
such Borrower in accordance with its terms.

3

 

     5. Representations and Warranties. In order to induce the Administrative Agent and
the Lenders to enter into this Agreement, each Borrower represents and warrants to the
Administrative Agent and the Lenders as follows:

     (a) Except to the extent that such representations and warranties relate to the
existence, outcome or circumstances surrounding the previously disclosed review of the
Company’s stock option practices and any adjustments that may need to be made to its
financial statements as a result thereof, the representations and warranties made by each
Borrower in Article V of the Credit Agreement and in each of the other Loan
Documents to which such Borrower is a party are true and correct on and as of the date
hereof, except to the extent that such representations and warranties expressly relate to an
earlier date, and except that for purposes of this Paragraph 5, the representations
and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit
Agreement shall be deemed to refer to the most recent statements furnished pursuant to
clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement (it being
understood that for purposes of this Agreement, the most recent financial statements
delivered pursuant to Section 6.01(b) of the Credit Agreement are those attached to
the preliminary Compliance Certificate delivered by the Company to the Administrative Agent
on or prior to the date hereof for the fiscal quarter ended March 31, 2007 (the “Preliminary
Compliance Certificate”), and the Schedule 5.05 referred to in Section 5.05
of the Credit Agreement is updated as provided on such Preliminary Compliance Certificate);

     (b) Other than the matters set forth on Schedule 5.06 of the Credit Agreement
and the existence or circumstances surrounding the previously disclosed review of the
Company’s stock option practices, since the date of the Audited Financial Statements, there
has been no event or circumstance, either individually or in the aggregate, that has had or
could reasonably be expected to have a Material Adverse Effect;

     (c) The Persons appearing as Borrowers on the signature pages to this Agreement
constitute all Persons who are required to be Borrowers pursuant to the terms of the Credit
Agreement and the other Loan Documents, including without limitation all Persons who became
Material Subsidiaries or were otherwise required to become Borrowers after the Closing Date,
and each of such Persons has become and remains a party to the Credit Agreement as a
Borrower;

     (d) This Agreement has been duly authorized, executed and delivered by the Borrowers
party hereto and constitutes a legal, valid and binding obligation of such parties, except
as may be limited by general principles of equity or by the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’
rights generally; and

     (e) No Default or Event of Default has occurred and is continuing.

     6. Entire Agreement. This Agreement, together with all the Loan Documents
(collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the
parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and
agreements among the parties relating to such subject matter. No promise, condition,

4

 

representation or warranty, express or implied, not set forth in the Relevant Documents shall
bind any party hereto, and no such party has relied on any such promise, condition, representation
or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in
the Relevant Documents, no representations, warranties or commitments, express or implied, have
been made by any party to the other. None of the terms or conditions of this Agreement may be
changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with
Section 10.01 of the Credit Agreement.

     7. Full Force and Effect of Agreement. After giving effect to the consent herein
provided, the Credit Agreement and all other Loan Documents are hereby confirmed and ratified in
all respects and shall be and remain in full force and effect according to their respective terms.

     8. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and all
of which shall together constitute one and the same instrument. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

     9. Governing Law. This Agreement shall in all respects be governed by, and construed
in accordance with, the laws of the State of New York applicable to contracts executed and to be
performed entirely within such State, and shall be further subject to the provisions of
Sections 10.14 and 10.15 of the Credit Agreement.

     10. Enforceability. Should any one or more of the provisions of this Agreement be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties hereto.

     11. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Borrowers, the Administrative Agent and each of the Lenders, and their respective
successors, legal representatives, and assignees to the extent such assignees are permitted
assignees as provided in Section 10.06 of the Credit Agreement.

[Signature pages follow.]

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     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made, executed and
delivered by their duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	BORROWERS: 

PEDIATRIX MEDICAL GROUP, INC., a Florida corporation 

 	 
	 	By:  	/s/ Karl B. Wagner
 	 
	 	 	Name:  	Karl B. Wagner 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ALASKA NEONATOLOGY ASSOCIATES, INC.

ASSOCIATES IN NEONATOLOGY, INC.

AUGUSTA NEONATOLOGY ASSOCIATES, P.C.

BNA ACQUISITION COMPANY, INC.

CENTRAL OKLAHOMA NEONATOLOGY

     ASSOCIATES, INC.

CNA ACQUISITION CORP.

FLORIDA REGIONAL NEONATAL ASSOCIATES,

     INC.

FOOTHILL MEDICAL GROUP, INC.

FORT WORTH NEONATAL ASSOCIATES

     BILLING, INC.

GNPA ACQUISITION COMPANY, INC.

MAGELLA HEALTHCARE CORPORATION

MAGELLA HEALTHCARE GROUP, L.P.

MAGELLA MEDICAL ASSOCIATES BILLING,

     INC.

MAGELLA MEDICAL ASSOCIATES MIDWEST,

     P.C.

MAGELLA MEDICAL ASSOCIATES OF GEORGIA,

     P.C.

MAGELLA MEDICAL GROUP, INC.

MAGELLA NEVADA, LLC

 	 
	 	By:  	/s/ Karl B. Wagner
 	 
	 	 	Name:  	Karl B. Wagner 	 
	 	 	Title:  	Attorney-in-Fact 	 

6

 

	 	 	 	 	 

	 	 	 	 	 
	 	MAGELLA TEXAS, LLC

MNPC ACQUISITION COMPANY, INC.

MNPC ACQUISITION COMPANY, INC.

MOUNTAIN STATES NEONATOLOGY, INC.

NACF ACQUISITION COMPANY, INC.

NEONATAL AND PEDIATRIC INTENSIVE CARE

     MEDICAL GROUP, INC.

NEONATOLOGY ASSOCIATES BILLING, INC.

NEONATAL SPECIALISTS, LTD.

NSPA ACQUISITION COMPANY, INC.

OBSTETRIX ACQUISITION COMPANY OF

     ARIZONA, INC.

OBSTETRIX ACQUISITION COMPANY OF

     COLORADO, INC.

OBSTETRIX MEDICAL GROUP OF ARIZONA, P.C.

OBSTETRIX MEDICAL GROUP OF CALIFORNIA,

     A PROFESSIONAL CORPORATION

OBSTETRIX MEDICAL GROUP OF COLORADO,

     P.C.

OBSTETRIX MEDICAL GROUP OF KANSAS AND

     MISSOURI, P.A.

OBSTETRIX MEDICAL GROUP OF PHOENIX, P.C.

OBSTETRIX MEDICAL GROUP OF TEXAS

     BILLING, INC.

OBSTETRIX MEDICAL GROUP OF

     WASHINGTON, INC., P.S.

OBSTETRIX MEDICAL GROUP, INC.

OZARK NEONATAL ASSOCIATES, INC.

PALM BEACH NEO ACQUISITIONS, INC.

PASCV ACQUISITION COMPANY, INC.

PEDIATRIX ACQUISITION COMPANY OF

     OHIO, INC.

 	 
	 	By:  	/s/ Karl B. Wagner
 	 
	 	 	Name:  	Karl B. Wagner 	 
	 	 	Title:  	Attorney-in-Fact 	 

7

 

	 	 	 	 	 

	 	 	 	 	 
	 	PEDIATRIX ACQUISITION COMPANY

     OF WASHINGTON, INC.

PEDIATRIX FLORIDA LLC

PEDIATRIX MEDICAL GROUP NEONATOLOGY

     AND PEDIATRIC INTENSIVE CARE

     SPECIALISTS OF
NEW YORK, P.C.

PEDIATRIX MEDICAL GROUP OF ARKANSAS,

     P.A.

PEDIATRIX MEDICAL GROUP OF CALIFORNIA,

     A PROFESSIONAL CORPORATION

PEDIATRIX MEDICAL GROUP OF

     COLORADO, P.C.

PEDIATRIX MEDICAL GROUP OF FLORIDA, INC.

PEDIATRIX MEDICAL GROUP OF GEORGIA, P.C.

PEDIATRIX MEDICAL GROUP OF ILLINOIS, P.C.

PEDIATRIX MEDICAL GROUP OF INDIANA, P.C.

PEDIATRIX MEDICAL GROUP OF KANSAS, P.A.

PEDIATRIX MEDICAL GROUP OF KENTUCKY,

     P.S.C.

PEDIATRIX MEDICAL GROUP OF LOUISIANA,

     L.L.C.

 	 
	 	By:  	/s/ Karl B. Wagner
 	 
	 	 	Name:  	Karl B. Wagner 	 
	 	 	Title:  	Attorney-in-Fact 	 

8

 

	 	 	 	 	 

	 	 	 	 	 
	 	PEDIATRIX MEDICAL GROUP OF MICHIGAN,

     P.C.

PEDIATRIX MEDICAL GROUP OF MISSOURI, P.C.

PEDIATRIX MEDICAL GROUP OF NEW MEXICO,

     P.C.

PEDIATRIX MEDICAL GROUP OF NORTH

     CAROLINA, P.C.

PEDIATRIX MEDICAL GROUP OF OHIO CORP.

PEDIATRIX MEDICAL GROUP OF OKLAHOMA,

     P.C.

PEDIATRIX MEDICAL GROUP OF

     PENNSYLVANIA, P.C.

PEDIATRIX MEDICAL GROUP OF PUERTO

     RICO, P.S.C.

PEDIATRIX MEDICAL GROUP OF

     SOUTH CAROLINA, P.A.

PEDIATRIX MEDICAL GROUP OF

     TENNESSEE, P.C.

PEDIATRIX MEDICAL GROUP OF

     TEXAS BILLING, INC

PEDIATRIX MEDICAL GROUP OF

     WASHINGTON, INC., P.S.

PEDIATRIX MEDICAL GROUP, INC.,

     a Utah corporation

PEDIATRIX MEDICAL GROUP, P.A.

PEDIATRIX MEDICAL GROUP, P.C.,

     a Virginia corporation

PEDIATRIX MEDICAL GROUP, P.C.,

     a West Virginia corporation

PEDIATRIX MEDICAL MANAGEMENT, L.P.

PEDIATRIX MEDICAL SERVICES, INC.

PEDIATRIX OF MARYLAND, P.A.

PEDIATRIX SCREENING, INC.

 	 
	 	By:  	/s/ Karl B. Wagner
 	 
	 	 	Name:  	Karl B. Wagner 	 
	 	 	Title:  	Attorney-in-Fact 	 

9

 

	 	 	 	 	 

	 	 	 	 	 
	 	PEDIATRIX TEXAS I LLC

PEDIATRIX VIRGINIA ACQUISITION

     COMPANY, INC.

PERINATAL PEDIATRICS, P.A.

PMG ACQUISITION CORP.

PMGSC, P.A.

PNA ACQUISITION CO., INC.

POKROY MEDICAL GROUP OF NEVADA, LTD.

RPNA ACQUISITION COMPANY, INC.

SCPMC ACQUISITION CO.

SNCA ACQUISITION COMPANY, INC.

ST. JOSEPH NEONATOLOGY CONSULTANTS,

     INC.

TEXAS MATERNAL FETAL MEDICINE BILLING,

     INC.

TEXAS NEWBORN SERVICES, INC.

TUCSON PERINATAL SERVICES, P.C.

 	 
	 	By:  	/s/ Karl B. Wagner
 	 
	 	 	Name:  	Karl B. Wagner 	 
	 	 	Title:  	Attorney-in-Fact 	 

10

 

	 	 	 	 	 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT: 

BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Kevin L. Ahart
 	 
	 	 	Name:  	Kevin L. Ahart 	 
	 	 	Title:  	Assistant Vice President 	 

11

 

	 	 	 	 	 

	 	 	 	 	 
	 	LENDERS:

BANK OF AMERICA, N.A. as a Lender, L/C Issuer and

Swing Line Lender

 	 
	 	By:  	/s/ Richard Hardison
 	 
	 	 	Name:  	Richard Hardison 	 
	 	 	Title:  	Vice President 	 

12

 

	 	 	 	 	 

	 	 	 	 	 
	 	HSBC BANK USA, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Joel S. Gordon
 	 
	 	 	Name:  	Joel S. Gordon 	 
	 	 	Title:  	Vice President 	 

13

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Helen C. Hartz
 	 
	 	 	Name:  	Helen C. Hartz 	 
	 	 	Title:  	Vice President 	 

14

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ S. Walker Choppin
 	 
	 	 	Name:  	S. Walker Choppin 	 
	 	 	Title:  	Senior Vice President 	 

15

 

	 	 	 	 	 

	 	 	 	 	 
	 	WACHOVIA BANK, N.A.

 	 
	 	By:  	/s/ Pantelis Klonaris
 	 
	 	 	Name:  	Pantelis Klonaris 	 
	 	 	Title:  	Vice President, Associate RM 	 

16

 

	 	 	 	 	 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ J.T. Taylor
 	 
	 	 	Name:  	J.T. Taylor 	 
	 	 	Title:  	Senior Vice President 	 

17

 

	 	 	 	 	 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC

 	 
	 	By:  	/s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ David B. Julie
 	 
	 	 	Name:  	David B. Julie 	 
	 	 	Title:  	Associate Director 	 

18

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE INTERNATIONAL BANK OF MIAMI, N.A.

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

19

 

	 	 	 	 	 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

20

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