Document:

exhibit41firstamendmenttocre

EXHIBIT 4.1

EXECUTION COPY

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of February 28, 2013 (the “Signing Date”) and effective as of the First Amendment Effective Date (as defined below), is entered into by and among AMN HEALTHCARE, INC., a Nevada corporation (the “Borrower”), AMN HEALTHCARE SERVICES, INC., a Delaware corporation, (the “Parent”), the Subsidiary Guarantors identified on the signature pages hereto, the revolving lenders identified on the signature pages hereto as Existing Revolving Lenders (the “Existing Revolving Lenders”), the tranche B lenders identified on the signature pages hereto as Existing Tranche B Lenders (the “Existing Tranche B Lenders” and together with the Existing Revolving Lenders, the “Lenders”) and SUNTRUST BANK, as Administrative Agent.  Terms used but not otherwise defined herein shall have the meanings provided in the Credit Agreement described below.  

W I T N E S S E T H

WHEREAS, the Borrower, the Parent, the Subsidiary Guarantors, the Lenders party thereto, and the Administrative Agent entered into that certain Credit Agreement dated as of April 5, 2012 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”); 

WHEREAS, the Borrower has requested that the Existing Credit Agreement be amended to (i) reprice the outstanding Tranche B Loans, (ii) reprice the outstanding Revolving Loans and any new extensions of credit made in respect of the Revolving Commitments and (iii) amend certain other terms in the Existing Credit Agreement, in each case in the manner provided herein;

WHEREAS,    the Administrative Agent, the requisite Lenders and the Credit Parties are willing to agree to the requested amendments subject to the provisions of this Amendment.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

PART 1
DEFINITIONS

SUBPART 1.1  Certain Definitions.  Unless otherwise defined herein or the context otherwise requires, the following terms used in this Amendment, including its preamble and recitals, have the following meanings:

“First Amendment Effective Date” is defined in Subpart 3.1.

SUBPART 1.2  Other Definitions.  Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Existing Credit Agreement, as amended hereby

PART 2 
AMENDMENTS TO EXISTING CREDIT AGREEMENT

Effective on (and subject to the occurrence of) the First Amendment Effective Date, the Existing Credit Agreement is hereby amended in accordance with this Part 2.

SUBPART 2.1    Amendments to Section 1.1.  The following definitions set forth in Section 1.1 of the Existing Credit Agreement are hereby amended in their entirety to read as follows:

“Applicable Percentage” means, for purposes of calculating the applicable interest rate for any day for any Loan (other than any Incremental Term Loan), the applicable rate of the Unused Fee for any day for purposes of Section 3.5(a) and the Letter of Credit Fee for any day for purposes of Section 3.5(b)(i), the appropriate applicable percentage corresponding to the Consolidated Leverage Ratio in effect as of the most recent Calculation Date:

	
								
	

Pricing Level
	

Consolidated Leverage Ratio
	Applicable Margin
	Letter of Credit Fee
	Unused Fee

	Revolving Loans
that are Eurodollar Loans
	Revolving Loans
that are  
Base Rate Loans
	Tranche B Loans that are Eurodollar Loans
	Tranche B Loans that are Base Rate Loans

	I

	Less than 2.00 to 1.00
	2.25%
	1.25%
	3.00%
	2.00%
	2.25%
	0.375%

	

II
	Less than 3.00 to 1.00 but greater than or equal to 2.00 to 1.00
	2.50%
	1.50%
	3.00%
	2.00%
	2.50%
	0.375%

	III
	Greater than or equal to  
3.00 to 1.00
	2.75%
	1.75%
	3.00%
	2.00%
	2.75%
	0.375%

The Applicable Percentages shall be determined and adjusted quarterly on the date (each, a “Calculation Date”) five Business Days after the date by which the Credit Parties are required to provide the Required Financial Information for the most recently ended fiscal quarter or fiscal year, as the case may be, of the Consolidated Parties; provided, however, that (i) the initial Applicable Percentages shall be based on Pricing Level II (as shown above) as of the First Amendment Effective Date and shall remain at Pricing Level II until the Calculation Date for the fiscal quarter of the Consolidated Parties ending on March 31, 2013, on and after which time the Pricing Level shall be determined by the Consolidated Leverage Ratio as of the last day of the most recently ended fiscal quarter of the Consolidated Parties preceding the applicable Calculation Date and (ii) if the Credit Parties fail to provide the 

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Required Financial Information to the Administrative Agent as required for the fiscal quarter of the Consolidated Parties preceding the applicable Calculation Date, the Applicable Percentage from such Calculation Date shall be based on Pricing Level III until such time as the Required Financial Information is provided, whereupon the Pricing Level shall be determined by the Consolidated Leverage Ratio as of the last day of the most recently ended fiscal quarter or fiscal year, as the case may be, of the Consolidated Parties preceding such Calculation Date.  Each Applicable Percentage shall be effective from one Calculation Date until the next Calculation Date.  Any adjustment in the Applicable Percentages shall be applicable to all existing Loans (other than any Incremental Term Loan) and Letters of Credit as well as any new Loans and Letters of Credit made or issued.  Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Percentage for any period shall be subject to the provisions of Section 3.15(c).

“Eurodollar Rate” means for any Interest Period with respect to a Eurodollar Loan, a rate per annum determined by the Administrative Agent pursuant to the following formula:
	
		
	Eurodollar Rate  =
	Interbank Offered Rate    
1.00 – Eurodollar Reserve Requirement

Notwithstanding the foregoing, solely for purposes of (i) Tranche B Loans, the Eurodollar Rate shall in no event be less than 0.75% per annum at any time and (ii) an Incremental Term Loan, the Eurodollar Rate shall in no event be less than a rate per annum set forth in the applicable Incremental Term Loan Agreement.
“Excluded Subsidiary” means (a) each Insurance Subsidiary and (b) any other Subsidiary that, as of any date of determination, has (i) Consolidated EBITDA for the most recent four quarter period for which the Required Financial Information has been delivered of less than 5% of total Consolidated EBITDA of the Consolidated Parties or (ii) Consolidated Total Assets with an aggregate fair market value of less than 5% of total Consolidated Total Assets of the Consolidated Parties; provided, however, in no event shall the aggregate Consolidated EBITDA of all Excluded Subsidiaries at any time exceed (A) 10% of total Consolidated EBITDA of the Consolidated Parties or (B) 10% of total Consolidated Total Assets of the Consolidated Parties.

“Permitted Acquisition” means (i) any Acquisition by the Borrower or any Subsidiary of the Borrower, provided that (a) the Property acquired (or the Property of the Person acquired) in such Acquisition (x) is used or useful in the same or a similar line of business as the Borrower and its Subsidiaries were engaged in on the Closing Date (or any reasonable extensions or expansions thereof) and (y) has earnings before interest, taxes, depreciation and amortization for the prior four fiscal quarters in an amount greater than $0, (b) the Administrative Agent shall have received all items in respect of the Capital Stock or Property acquired in such Acquisition required to be delivered by the terms of Section 7.12 and/or Section 7.13, (c) in the case of an Acquisition of the Capital Stock of another Person, the board of directors (or other comparable governing body) of such other Person shall have duly approved such Acquisition, (d) the Borrower shall have delivered to the Administrative 

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Agent a Pro Forma Compliance Certificate demonstrating that, upon giving effect to such Acquisition on a Pro Forma Basis, (x) no Default or Event of Default would exist as the result of a violation of Section 7.11(a) or Section 7.11(b) and (y) the Consolidated Leverage Ratio shall be 0.25 less than the then applicable level set forth in Section 7.11(a), (e) if such transaction involves the purchase of an interest in a partnership between the Borrower (or a Subsidiary of the Borrower) as a general partner and entities unaffiliated with the Borrower or such Subsidiary as the other partners, such transaction shall be effected by having such equity interest acquired by a holding company directly or indirectly wholly‐owned by the Borrower newly formed for the sole purpose of effecting such transaction.

SUBPART 2.2  Amendments to Section 1.1.  The definition of “Consolidated EBITDA” in Section 1.1 of the Existing Credit Agreement is amended by deleting clause (H) in its entirety and replacing it with the following:

(H) solely for each of the 2012, 2013 and 2014 fiscal years, the settlement amounts relating to the settlement of any claims against any Consolidated Party, including, without limitation, claims by the Internal Revenue Service, in an aggregate amount not to exceed $10,000,000, minus

SUBPART 2.3  Amendments to Section 1.1.  The definition of “Permitted Investment” in Section 1.1 of the Existing Credit Agreement is hereby amended by adding the following clauses (xv) and (xvi) at the end of such definition and making the appropriate punctuation and grammatical changes to such definition:

(xv)  Investments in any Insurance Subsidiary required to meet regulatory requirements and fund reserves for anticipated insurance losses as reasonably determined by the Borrower; and (xvi) Investments by any Insurance Subsidiary in the ordinary course of business in accordance with applicable law.

SUBPART 2.4  Amendments to Section 1.1.  The following new definitions are hereby added to Section 1.1 of the Existing Credit Agreement in the appropriate alphabetical order and shall read as follows: 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).

“First Amendment” means the First Amendment to Credit Agreement, dated as of February 28, 2013, among the Borrower, the Parent, the Subsidiary Guarantors, SunTrust Bank, as Administrative Agent and the Lenders party thereto.
“First Amendment Effective Date” shall mean the date upon which all conditions precedent to the First Amendment shall have been satisfied or waived in accordance with the terms thereof.

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“Insurance Subsidiary” means any of (a) Spectrum Insurance Company, a Hawaii corporation and (b) each other insurance entity established for the purpose of providing insurance coverage solely for the benefit of one or more Consolidated Parties.
“Qualified ECP Guarantor” means, in respect of any Swap Obligation and Section 4.9, each Credit Party that qualifies as an “eligible contract participant” under § 1a(18)(A)(v)(I) of the Commodity Exchange Act at the time the guarantee under Section 4 becomes effective with respect to such Swap Obligation.

“Swap Obligations” means, with respect to any Guarantor, an obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of § 1a(47) of the Commodity Exchange Act.

SUBPART 2.5  Amendments to Section 1.1.  The definition of “Qualifying Consideration” is hereby deleted in its entirety from Section 1.1 of the Existing Credit Agreement.

SUBPART 2.6    Amendment to Section 2.2(a)(i).  Clause (i) of the proviso immediately following subsection (B) of Section 2.2(a)(i) of the Existing Credit Agreement is hereby amended in its entirety to read as follows:

“(i) the LOC Obligations outstanding shall not at any time exceed THIRTY MILLION DOLLARS ($30,000,000) (the “LOC Committed Amount”) and”

SUBPART 2.7    Amendment to Section 3.3(b)(ii).  Subsection (b)(ii) of Section 3.3 of the Existing Credit Agreement is hereby amended in its entirety to read as follows:

(ii)    Excess Cash Flow.
(A)    If, as of the last day of any fiscal year (commencing with the fiscal year ending December 31, 2012) the Consolidated Leverage Ratio is equal to or greater than 2.50 to 1.00, the Borrower shall, within 90 days of the end of such fiscal year, prepay the Tranche B Loans in an amount equal to (x) 50% of Excess Cash Flow as of the end of such fiscal year (or, in the case of the fiscal year ending December 31, 2012, for the period from April 1, 2012 through December 31, 2012) minus (y) the amount of any voluntary prepayments of the Tranche B Loan or the Revolving Loans (to the extent accompanied by a permanent reduction of the Revolving Committed Amount) made in such fiscal year (such prepayment to be applied as set forth in clause (vi) below).
(B)    If, as of the last day of any fiscal year (commencing with the fiscal year ending December 31, 2012) the Consolidated Leverage Ratio is less than 2.50 to 1.00 then no Excess Cash Flow prepayment shall be required for such fiscal year.
SUBPART 2.8    Amendment to Section 3.3(c).  Subsection (c) of Section 3.3 of the Existing Credit Agreement is hereby amended in its entirety to read as follows:

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(c)    Prepayment Premiums.  In the event that, on or prior to the date that is six months after the First Amendment Effective Date, any Consolidated Party (i) makes any prepayment of the Tranche B Loan in connection with any Repricing Transaction, (ii) effects any amendment of this Agreement resulting in a Repricing Transaction (in each case, for the avoidance of doubt, excluding any such Repricing Transaction to occur on the First Amendment Effective Date in accordance with the terms of the First Amendment), the Borrower shall pay to the Administrative Agent, for the ratable account of each applicable Tranche B Lender, a fee in an amount equal to (x) in the case of clause (i), a prepayment premium of 1.0% of the amount of the Tranche B Loans being prepaid and (y) in the case of clause (ii), a payment equal to 1.0% of the aggregate amount of the Tranche B Loans outstanding immediately prior to such amendment.

SUBPART 2.9    Amendment to Section 4.  Section 4 of the Existing Credit Agreement is hereby amended to add the following new Sections 4.8 and 4.9 which shall read as follows:

4.8    Eligible Contract Participant.

Notwithstanding anything to the contrary in any Loan Document, no Guarantor shall be deemed under this Section 4 to be a guarantor of any Swap Obligations if such Guarantor was not an “eligible contract participant” as defined in § 1a(18) of the Commodity Exchange Act, at the time the guarantee under this Section 4 becomes effective with respect to such Swap Obligation and to the extent that the providing of such guarantee by such Guarantor would violate the Commodity Exchange Act; provided however that in determining whether any Guarantor is an “eligible contract participant” under the Commodity Exchange Act, the guarantee of the Credit Party Obligations of such Guarantor under this Section 4 by a Guarantor that is also a Qualified ECP Guarantor shall be taken into account.

4.9    Keepwell.

Without limiting anything in this Section 4, each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time to each Guarantor that is not an “eligible contract participant” under the Commodity Exchange Act at the time the guarantee under this Section 4 becomes effective with respect to any Swap Obligation, to honor all of the Obligations of such Guarantor under this Section 4 in respect of such Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 4.9 for the maximum amount of such liability that can be hereby incurred without rendering its undertaking under this Section 4.9, or otherwise under this Section 4, voidable under applicable Law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The undertaking of each Qualified ECP Guarantor under this Section 4.9 shall remain in full force and effect until termination of the Commitments and payment in full of all Loans and other Credit Party Obligations. Each Qualified ECP Guarantor intends that this Section 4.9 constitute, and this Section 4.9 shall be deemed to constitute, a “keepwell, 

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support, or other agreement” for the benefit of each Guarantor that would otherwise not constitute an “eligible contract participant” under the Commodity Exchange Act.

SUBPART 2.10    Amendment to Section 7.6.  Section 7.6 of the Existing Credit Agreement is hereby amended to add the following new clause (c) which shall read as follows:

(c)    The Insurance Subsidiary shall conduct its insurance business in compliance with all applicable insurance laws, rules, regulations and orders and using sound actuarial principles.  The insurance premiums and other expenses charged by the Insurance Subsidiary to the Parent or any of its Subsidiaries shall be reasonable and customary.  The Borrower will provide the Administrative Agent and the Lenders copies of any outside actuarial reports prepared with respect to any projection, valuation or appraisal of the Insurance Subsidiary promptly after receipt thereof. 

SUBPART 2.11    Amendment to Section 7.11(a).  Subsection (a) of Section 7.11 of the Existing Credit Agreement is hereby amended in its entirety to read as follows:

(a)    Consolidated Leverage Ratio.  The Credit Parties shall not permit the Consolidated Leverage Ratio as of the last day of any fiscal quarter of the Consolidated Parties to be greater than 4.00 to 1.0.

SUBPART 2.12    Amendment to Section 8.7.  Section 8.7 of the Existing Credit Agreement is hereby amended by deleting clause (j) thereof in its entirety and replacing it with the following: 

(j) such other Restricted Payments in addition to the foregoing in a cash amount not to exceed $25,000,000 in the aggregate following the First Amendment Effective Date; provided than no Default or Event of Default exists either before or after giving effect to such Restricted Payment.

SUBPART 2.13    Amendment to Section 8.11.  Section 8.11 of the Existing Credit Agreement is hereby amended by adding the following new clause (vii) at the end of such section definition and making the appropriate punctuation and grammatical changes to such definition:

(vii) pursuant to applicable law and other customary conditions and restrictions contained in any agreement, document or instrument relating to the formation, operation and regulatory requirements or limitations related to the Insurance Subsidiary.

SUBPART 2.14    Amendment to Section 8.15.  Section 8.15 of the Existing Credit Agreement is hereby amended by adding the following new clause (e) at the end of such section definition and making the appropriate punctuation and grammatical changes to such definition: 

(e) pursuant to applicable law and other customary conditions and restrictions contained in any agreement, document or instrument relating to the formation, operation and regulatory requirements or limitations related to the Insurance Subsidiary.

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PART 3 
CONDITIONS TO EFFECTIVENESS

SUBPART 3.1  First Amendment Effective Date.  This Amendment shall be and become effective as of the date when all of the conditions set forth in this Part 3 shall have been satisfied, (the “First Amendment Effective Date”) and thereafter this Amendment shall be known, and may be referred to, as the “Amendment”.  The First Amendment Effective Date shall occur no later than April 10, 2013 (the “Termination Date”).  In the event that the First Amendment Effective Date does not occur on or before the Termination Date, this Amendment shall be of no further force and effect.

SUBPART 3.2  Execution of Counterparts of Amendment.  The Administrative Agent shall have received counterparts of this Amendment, which collectively shall have been duly executed on behalf of each of the Borrower, the Parent, the Subsidiary Guarantors, the Existing Revolving Lenders, the Existing Tranche B Lenders (after giving effect to the replacement of any Lender who does not consent to this Amendment and is a Replaced Lender in accordance with Section 3.17 of the Existing Credit Agreement) and the Administrative Agent.  

SUBPART 3.3  Corporate Documents.  The Administrative Agent shall have received an officer’s certificate (A) certifying that the articles or certificates of incorporation or other charter documents, as applicable, of each Credit Party that were delivered on the Closing Date remain true and complete as of the First Amendment Effective Date (or certified updates as applicable), (B) certifying that the bylaws, operating agreements or partnership agreements of each Credit Party that were delivered on the Closing Date remain true and correct as of the First Amendment Effective Date (or certified updates as applicable), (C) attaching copies of the resolutions of the board of directors or manager, as applicable, of each Credit Party approving and adopting this Amendment (including, without limitation, the repricing and reallocation of the Tranche B Loan) and the transactions contemplated herein and authorizing execution and delivery hereof, certified by a secretary or assistant secretary of such Person to be true and correct and in force and effect as of the First Amendment Effective Date, (D) attaching certificates of good standing, existence or its equivalent with respect to each Credit Party certified as of a recent date by the appropriate Governmental Authorities of the state or other jurisdictions of incorporation and the state or other jurisdiction of the chief executive office and principal place of business, (E) certifying that each officer listed in the incumbency certification contained in each Credit Party’s secretary’s certificate, delivered on the Closing Date remains a duly elected and qualified officer of such Credit Party and such officer remains duly authorized to execute and deliver on behalf of such Credit Party the Amendment or attaching a new incumbency certificate for each officer signing this Amendment.

SUBPART 3.4  Officer’s Certificates.  The Administrative Agent shall have received a certificate or certificates executed by an Executive Officer of the Borrower as of the First Amendment Effective Date, in form and substance reasonably satisfactory to the Administrative Agent, stating that (i) all governmental, shareholder and material third party consents and approvals, if any, with respect to the Amendment and the transactions contemplated thereby have been obtained, (ii) no action, suit, investigation or proceeding is pending or, to the knowledge of the Borrower, threatened 

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in any court or before any arbitrator or governmental instrumentality that purports to affect any Credit Party or any transaction contemplated by the Credit Documents, if such action, suit, investigation or proceeding could reasonably be expected to have a Material Adverse Effect and (iii) immediately after giving effect to the Amendment and the making of the Loans hereunder, (A) no Default or Event of Default exists and (B) all representations and warranties contained herein and in the other Credit Documents are true and correct in all material respects.

SUBPART 3.5  Fees and Expenses.  The Administrative  Agent shall have received from the Borrower (i) for the account of the Lenders the aggregate amount of all fees to the extent due and payable on or prior to the execution of this Amendment, (ii) the aggregate amount of other fees and expenses payable in connection with the consummation of the transactions contemplated hereby and (iii) all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation, the reasonable fees and expenses of Moore & Van Allen PLLC, special counsel to the Administrative Agent.

PART 4 
MISCELLANEOUS

SUBPART 4.1    Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that, after giving effect to this Amendment, (a) no Default or Event of Default exists under the Credit Agreement and (b) the representations and warranties set forth in Section 6 of the Existing Credit Agreement are, subject to the limitations set forth therein, true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date, in which case, they are true and correct in all material respects as of such earlier date). 

SUBPART 4.2    Reaffirmation of Security Interests.  Each Credit Party (i) affirms that each of the Liens granted in or pursuant to the Credit Documents are valid and subsisting and (ii) agrees that this Amendment shall in no manner impair or otherwise adversely effect any of the Liens granted in or pursuant to the Credit Documents.

SUBPART 4.3    Reaffirmation of Guaranty.  Each of the Guarantors (i) acknowledges and consents to all of the terms and conditions of this Amendment, (ii) affirms all of its obligations under the Credit Documents and (iii) agrees that this Amendment and all documents executed in connection herewith do not operate to reduce or discharge such Guarantor’s obligations under the Credit Agreement or the other Credit Documents.

SUBPART 4.4    Cross-References.  References in this Amendment to any Part or Subpart are, unless otherwise specified, to such Part or Subpart of this Amendment.

SUBPART 4.5    Instrument Pursuant to Existing Credit Agreement.  This Amendment is executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Existing Credit Agreement.

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SUBPART 4.6     References in Other Credit Documents.  At such time as this Amendment shall become effective pursuant to the terms of Subpart 3.1, all references to the “Credit Agreement” shall be deemed to refer to the Credit Agreement as amended by this Amendment.

SUBPART 4.7    Counterparts/Telecopy.  This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.  Delivery of executed counterparts of the Amendment by telecopy shall be effective as an original and shall constitute a representation that an original shall be delivered.

SUBPART 4.8    Governing Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAW RULES).

SUBPART 4.9    Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

SUBPART 4.10    General.  Except as amended hereby, the Existing Credit Agreement and all other credit documents shall continue in full force and effect.    

[Remainder of Page Intentionally Left Blank]
 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Credit Agreement as of the date first above written.

BORROWER:            AMN HEALTHCARE, INC.,
a Nevada corporation

By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Office    r    

PARENT:                AMN HEALTHCARE SERVICES, INC.,
a Delaware corporation

By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Office    r    

SUBSIDIARY
		
	GUARANTORS:
	AMN SERVICES, LLC, 
a North Carolina limited liability company

By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

O’GRADY‐PEYTON INTERNATIONAL (USA), INC., 
a Massachusetts corporation
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

AMN STAFFING SERVICES, LLC, 
a Delaware limited liability company

By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

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MERRITT, HAWKINS & ASSOCIATES, LLC 
a California limited liability company
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

AMN HEALTHCARE ALLIED, INC., 
a Texas corporation
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

STAFF CARE, INC., 
a Delaware corporation
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

AMN ALLIED SERVICES, LLC, 
a Delaware limited liability company
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

NURSEFINDERS, LLC, 
a Texas limited liability company
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

PHARMACY CHOICE, INC., 
a Colorado corporation
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

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RX PRO HEALTH, INC., 
a Colorado corporation
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

LINDE HEALTH CARE STAFFING, INC., 
a Missouri corporation
By:    /s/ Brian Scott            
Name:    Brian Scott            
Title:    Chief Financial Officer    

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ADMINISTRATIVE AGENT:    SUNTRUST BANK, 
in its capacity as Administrative Agent 

By:    /s/ Joshua J. Turner        
Name:    Joshua J. Turner        
Title:    Vice President            

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EXISTING REVOLVING
LENDERS:                SUNTRUST BANK, 
as an Existing Revolving Lender, 
Issuing Lender and Swingline Lender 

By:    /s/ Joshua J. Turner        
Name:    Joshua J. Turner        
Title:    Vice President            

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GENERAL ELECTRIC CAPITAL CORPORATION,
as an Existing Revolving Lender

By:    /s/ R. Hanes Whiteley        
Name:    R. Hanes Whiteley        
Title:    Duly Authorized Signatory    

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ING CAPITAL LLC,
as an Existing Revolving Lender

By:    /s/ Darren Wells        
Name:    Darren Wells            
Title:    Managing Director        

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JPMORGAN CHASE BANK, N.A.,
as an Existing Revolving Lender

By:    /s/ Anna C. Araya        
Name:    Anna C. Araya            
Title:    Vice President            

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BANK OF AMERICA, N.A.,
as an Existing Revolving Lender

By:    /s/ John C. Plecque        
Name:    John C. Plecque        
Title:    Senior Vice President        

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EXISTING TERM LENDERS:

Arch Investment Holdings III Ltd.
By:  PineBridge Investments LLC As Collateral Manager

By:     /s/ Steven Oh            
Name:    Steven Oh            
Title:    Managing Director        

BABSON CLO LTD. 2005-III
BABSON CLO LTD. 2011-I
ST. JAMES RIVER CLO, LTD.
By: Babson Capital Management LLC as Collateral Manager
        
By:     /s/ Ryan Christenson        
Name:    Ryan Christenson        
Title:    Director                  

ARROWOOD INDEMNITY COMPANY
ARROWOOD INDEMNITY COMPANY AS ADMINISTRATOR OF THE PENSION PLAN OF ARROWOOD INDEMNITY COMPANY 
C.M. LIFE INSURANCE COMPANY
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
By: Babson Capital Management LLC as Investment Adviser
        
By:     /s/ Ryan Christenson        
Name:    Ryan Christenson        
Title:    Director               

BABSON CAPITAL FLOATING RATE INCOME MASTER FUND, L.P.
By: Babson Capital Management LLC, as Investment Manager

By:     /s/ Ryan Christenson        
Name:    Ryan Christenson        
Title:    Director            

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DIAMON LAKE CLO, LTD.
By: Babson Capital Management LLC, as Collateral Servicer

By:     /s/ Steven Oh            
Name:    Steven Oh            
Title:    Director            

ATRIUM V
By: Credit Suisse Asset Management, LLC, as Collateral Manager

By:     /s/ David H. Lerner        
Name:    David H. Lerner        
Title:    Authorized Signatory        

Bridgeport CLO Ltd.
Schiller Park CLO Ltd.
Burr Ridge CLO Plus Ltd.
Bridgeport CLO II Ltd.
By: Deerfield Capital Management LLC, its Collateral Manager

By:     /s/ Claudette L. Kraus             
Name:    Claudette L. Kraus        
Title:    Authorized Signatory        

CIFC Funding 2006-I, Ltd.
CIFC Funding 2006-IB, Ltd.
CIFC Funding 2006-II, Ltd.
CIFC Funding 2007-I, Ltd.
CIFC Funding 2007-II, Ltd.
CIFC Funding 2007-III, Ltd.
CIFC Funding 2007-IV, Ltd.
CIFC Funding 2011-I, Ltd.
CIFC Funding 2012-III, Ltd.

By: CIFC Asset Management LLC, its Collateral Manager

By:     /s/ Claudette L. Kraus        

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Name:    Claudette L. Kraus        
Title:    Authorized Signatory        

ColumbusNova CLO Ltd. 2006-II
ColumbusNova CLO Ltd. 2007-I
ColumbusNova CLO IV Ltd. 2007-II

By:  Columbus Nova Credit Investments Management, LLC, as its Collateral Manager

By:     /s/ Claudette L. Kraus        
Name:    Claudette L. Kraus        
Title:    Authorized Signatory        

CORNERSTONE CLO LTD.

By:  Apollo Debt Advisors, LLC, as its Collateral Manager

By:     /s/ Joe Moroney        
Name:    Joe Moroney            
Title:    Authorized Signatory        

DUANE STREET CLO IV, LTD.

By:  Citigroup Alternative Investments LLC, As Collateral Manager

By:     /s/ Melanie Hanlon        
Name:    Melanie Hanlon        
Title:    Director            

DWS Floating Rate Fund

By:  Deutsche Investment Management Americas, Inc.
        Investment Advisor

By:     /s/ Antonio V. Versaci        
Name:    Antonio V. Versaci        
Title:    Director            

22

By:     /s/ Colleen Cunniffe        
Name:    Colleen Cunniffe        
Title:    Managing Director        

DWS Short Duration Fund

By:  Deutsche Investment Management Americas, Inc.
        Investment Advisor

By:     /s/ Antonio V. Versaci        
Name:    Antonio V. Versaci        
Title:    Director            

By:     /s/ Colleen Cunniffe        
Name:    Colleen Cunniffe        
Title:    Managing Director        

Falcon Senior Loan Fund Ltd.

By:  Apollo Fund Management LLC, As Its Investment Manager

By:     /s/ Joe Moroney        
Name:    Joe Moroney            
Title:    Authorized Signatory        

Fire and Police Pension Fund, San Antonio

By:  PineBridge Investments LLC, Its Investment Manager

By:     /s/ Steven Oh            
Name:    Steven Oh            
Title:    Managing Director        

Flagship CLO VI

By:  Deutsche Investment Management Americas, Inc., As Collateral Manager

By:     /s/ Antonio V. Versaci        
Name:    Antonio V. Versaci        

23

Title:    Director            

By:     /s/ Colleen Cunniffe        
Name:    Colleen Cunniffe        
Title:    Managing Director        

Galaxy XI CLO, Ltd.

By:  PineBridge Investments LLC, As Collateral Manager

By:     /s/ Steven Oh            
Name:    Steven Oh            
Title:    Managing Director        

Galaxy XII CLO, Ltd.

By:  PineBridge Investments LLC, As Collateral Manager

By:     /s/ Steven Oh            
Name:    Steven Oh            
Title:    Managing Director        

GENERAL ELECTRIC CAPITAL CORPORATION

By:     /s/ R. Hanes Whiteley        
Name:    R. Hanes Whiteley        
Title:    Authorized Signatory        

Haleyon Loan Investors CLO II, LTD.
Haleyon Structured Asset Management Long Secured/Short Unsecured 2007-1 LTD.
Halcyon Structured Asset Management Long Secured/Short Unsecured 2007-2 LTD.
SC PRO Loan II Limited
Swiss Capital Pro Loan III Plc

By:     /s/ David M.            
Name:    David M.            
Title:    Controller            

24

Hudson Canyon Funding II, Ltd.

By:  Invesco Senior Secured Management, Inc., as Collateral Manager and Attorney in Fact

By:     /s/ Thomas Ewald        
Name:    Thomas Ewald        
Title:    Authorized Individual        

ING CAPITAL LLC

By:     /s/ Darren Wells        
Name:    Darren Wells            
Title:    Managing Director        

Invesco Floating Rate Fund

By:  Invesco Senior Secured Management, Inc., as Sub-Adviser

By:     /s/ Thomas Ewald        
Name:    Thomas Ewald        
Title:    Authorized Individual        

Invesco Zodiac Funds – Invesco US Senior Loan Fund

By:  Invesco Management S.A., As Investment Manager

By:     /s/ Thomas Ewald        
Name:    Thomas Ewald        
Title:    Authorized Individual        

Limerock CLO I

By:  Invesco Senior Secured Management, Inc., as Investment Manager 

By:     /s/ Thomas Ewald        
Name:    Thomas Ewald        
Title:    Authorized Individual        

25

Madison Park Funding II, Ltd.

By:  Credit Suisse Asset Management, LLC, as collateral manager

By:     /s/ David H. Lerner        
Name:    David H. Lerner        
Title:    Authorized Individual        

Madison Park Funding III, Ltd.

By:  Credit Suisse Asset Management, LLC, as collateral manager

By:     /s/ David H. Lerner        
Name:    David H. Lerner        
Title:    Authorized Individual        

Madison Park Funding IV, Ltd.

By:  Credit Suisse Asset Management, LLC, as collateral manager

By:     /s/ David H. Lerner        
Name:    David H. Lerner        
Title:    Authorized Individual        

Madison Park Funding V, Ltd.

By:  Credit Suisse Asset Management, LLC, as collateral manager

By:     /s/ David H. Lerner        
Name:    David H. Lerner        
Title:    Authorized Individual        

Madison Park Funding VI, Ltd.

By:  Credit Suisse Asset Management, LLC, as collateral manager

26

By:     /s/ David H. Lerner        
Name:    David H. Lerner        
Title:    Authorized Individual        

Madison Park Funding VII, Ltd.

By:  Credit Suisse Asset Management, LLC, as collateral manager

By:     /s/ David H. Lerner        
Name:    David H. Lerner        
Title:    Authorized Individual        

Madison Park Funding VIII, Ltd.

By:  Credit Suisse Asset Management, LLC, as collateral manager

By:     /s/ David H. Lerner        
Name:    David H. Lerner        
Title:    Authorized Individual        

MT. WHITNEY SECURITIES, INC.

By:  Deutsche Investment Management Americas, Inc., as Manager

By:     /s/ Antonio V. Versaci        
Name:    Antonio V. Versaci        
Title:    Director            

By:     /s/ Colleen Cunniffe        
Name:    Colleen Cunniffe        
Title:    Managing Director        

Nautique Funding Ltd.

By:  Invesco Senior Secured Management, Inc., as Collateral Manager
        

27

By:     /s/ Thomas Ewald        
Name:    Thomas Ewald        
Title:    Authorized Individual        

One Wall Street CLO II LTD

By:  Alcentra NY, LLC, as investment advisor
        
By:     /s/ Josephine Shin        
Name:    Josephine Shin        
Title:    Senior Vice President        

Pacifica CDO V LTD

By:  Alcentra NY, LLC, as investment advisor
        
By:     /s/ Josephine Shin        
Name:    Josephine Shin        
Title:    Senior Vice President        

Pacifica CDO VI LTD

By:  Alcentra NY, LLC, as investment advisor
        
By:     /s/ Josephine Shin        
Name:    Josephine Shin        
Title:    Senior Vice President        

Primus CLO II, Ltd.

By:  CypressTree Investment Management, LLC, its Collateral Manager

By:     /s/ Claudette L. Kraus        
Name:    Claudette L. Kraus        
Title:    Authorized Signatory        

28

Prospero CLO II B.V.

By:  Alcentra NY, LLC, as investment advisor
        
By:     /s/ Josephine Shin        
Name:    Josephine Shin        
Title:    Senior Vice President        

Rampart CLO 2007 Ltd.

By:  Apollo Debt Advisors LLC, as its Collateral Manager
        
By:     /s/ Joe Moroney        
Name:    Joe Moroney            
Title:    Authorized Signatory        

REGATTA FUNDING LTD.

By:  Citi Alternative Investments, LLC, attorney-in-fact
        
By:     /s/ Melanie Hanlon        
Name:    Melanie Hanlon        
Title:    Director            

Saturn CLO 2007 Ltd.

By:  PineBridge Investments LLC, Its Collateral Manager
        
By:     /s/ Steven Oh            
Name:    Steven Oh            
Title:    Managing Director        

Stone Tower CLO V Ltd.

By:  Apollo Debt Advisors LLC, as its Collateral Manager
        
By:     /s/ Joe Moroney        
Name:    Joe Moroney            
Title:    Authorized Signatory        

29

Stone Tower CLO VI Ltd.

By:  Apollo Debt Advisors LLC, as its Collateral Manager
        
By:     /s/ Joe Moroney        
Name:    Joe Moroney            
Title:    Authorized Signatory        

Stone Tower CLO VII Ltd.

By:  Apollo Debt Advisors LLC, as its Collateral Manager
        
By:     /s/ Joe Moroney        
Name:    Joe Moroney            
Title:    Authorized Signatory        

SUNTRUST BANK
        
By:     /s/ Joshua J. Turner        
Name:    Joshua J. Turner        
Title:    Vice President            

Telos CLO 2006-1, LTD
Telos CLO 2007-2, LTD

Managed by: Telos Asset Management, LLC
        
By:     /s/ Jonathan Tepper        
Name:    Jonathan Tepper        
Title:    Director            

US Bank Loan Fund (M) Master Trust

By: Alcentra NY, LLC, as investment advisor
        
By:     /s/ Josephine Shin        
Name:    Josephine Shin        
Title:    Senior Vice President        

30

VALIDUS REINSURANCE LTD.

By: PineBridge Investments LLC, Its Investment Manager
        
By:     /s/ Steven Oh            
Name:    Steven Oh            
Title:    Managing Director        

Venture VI CDO Limited

By: its investment advisor, MJX Asset Management, LLC
        
By:     /s/ Kenneth Ostmann        
Name:    Kenneth Ostmann        
Title:    Portfolio Manager        

Venture VII CDO Limited

By: its investment advisor, MJX Asset Management, LLC
        
By:     /s/ Kenneth Ostmann        
Name:    Kenneth Ostmann        
Title:    Portfolio Manager        

Veritas CLO II, LTD

By: Alcentra NY, LLC, as investment advisor
        
By:     /s/ Josephine Shin        
Name:    Josephine Shin        
Title:    Senior Vice President        

Virtus Senior Floating Rate Fund

        
By:     /s/ Kyle Jennings        
Name:    Kyle Jennings            
Title:    Managing Director        

31

Westwood CDO I LTD

By: Alcentra NY, LLC, as investment advisor
        
By:     /s/ Josephine Shin        
Name:    Josephine Shin        
Title:    Senior Vice President        

Westwood CDO II LTD

By: Alcentra NY, LLC, as investment advisor
        
By:     /s/ Josephine Shin        
Name:    Josephine Shin        
Title:    Senior Vice President        

        
WhiteHorse IV Ltd.

By: WhiteHorse Capital Partners, as collateral manager

By: WhiteRock Asset Advisor, LLC, its GP
        
By:     /s/ Jay Carvell            
Name:    Jay Carvell            
Title:    Manager            

32PRSU_EBITDA_Form_Agreement_2013_Ex101

EXHIBIT 10.1

FORM OF
AMN HEALTHCARE EQUITY PLAN 
PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT
(ADJUSTED EBITDA MARGIN)
THIS PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”), made this ___________    ___, 20___, by and between AMN Healthcare Services, Inc. (the “Company”), a Delaware corporation, and ___________________ (the “Grantee”).
W I T N E S S E T H:
WHEREAS, the Company sponsors the AMN Healthcare Equity Plan, as Amended and Restated (as may be amended from time to time, the “Plan”), and desires to afford the Grantee the opportunity to share in the appreciation of the Company’s common stock, par value $.01 per share (“Stock”), thereunder, thereby strengthening the Grantee’s commitment to the welfare of the Company and Affiliates and promoting an identity of interest between stockholders and the Grantee.
NOW THEREFORE, in consideration of the covenants and agreements herein contained, the parties hereto hereby agree as follows:
1.    Definitions.
The following definitions shall be applicable throughout the Agreement.  Where defined terms are not defined herein, their meaning shall be that set forth in the Plan.
(a)    “Affiliate” means (i) any entity that directly or indirectly is controlled by, or is under common control with, the Company and (ii) any entity in which the Company has a significant equity interest, in either case, as determined by the Committee.
(b)    “Adjusted EBITDA” means for the Company and its wholly owned Subsidiaries on a consolidated basis, net income (loss) plus interest expense (net of interest income), income taxes, depreciation and amortization, acquisition related costs, stock-based compensation expense and net income (loss) from discontinued operations, net of tax.  The Company's Adjusted EBITDA may be adjusted at the Compensation Committee's discretion to exclude the impact of extraordinary items that are included in the Company’s Adjusted Earnings per Share reconciliation table that is part of the Company’s earnings release or changes in GAAP treatment of revenue/expenses.
(c)    “Adjusted EBITDA Margin” means for the Company and its wholly owned Subsidiaries on a consolidated basis, Adjusted EBITDA divided by gross revenue, expressed as a percentage.
(d)    “Cause” means the Company or an Affiliate having “cause” to terminate a Grantee’s employment or service, as defined in any existing employment, consulting or any other agreement between the Grantee and the Company or a Subsidiary or Affiliate, or, in the absence of such an employment, consulting or other agreement, upon (i) the Committee’s determination that the 

Page 1 of 1

Grantee has ceased to perform his/her duties to the Company or an Affiliate (other than as a result of his/her incapacity due to physical or mental illness or injury), which failure amounts to an intentional and extended neglect of his/her duties to such party, (ii) the Committee’s determination that the Grantee has engaged or is about to engage in conduct injurious to the Company or an Affiliate, (iii) the Grantee having been convicted of, or pleaded guilty or no contest to, a felony or a crime involving moral turpitude or (iv) the failure of the Grantee to follow the lawful instructions of the Board or the Grantee’s direct superiors; provided, however, that in the instances of clauses (i), (ii) and (iv), the Company or Affiliate, as applicable, must give the Grantee twenty (20) days’ prior written notice of the defaults constituting “cause” hereunder. 
(e)    “Change in Control” means:
(i)    the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d‐3 promulgated under the Exchange Act) of a majority of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors;
(ii)    the sale of all or substantially all of the business or assets of the Company; or
(iii)    the consummation of a merger, consolidation or similar form of corporate transaction involving the Company that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), if immediately following such Business Combination: (x) a Person is or becomes the beneficial owner, directly or indirectly, of a majority of the combined voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), or (y) the Company’s stockholders prior to the Business Combination thereafter cease to beneficially own, directly or indirectly, a majority of the combined voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), counting for this purpose only voting securities of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) received by such stockholders in connection with the Business Combination. “Surviving Corporation” shall mean the corporation resulting from a Business Combination, and “Parent Corporation” shall mean the ultimate parent corporation that directly or indirectly has beneficial ownership of a majority of the combined voting power of the then outstanding voting securities of the Surviving Corporation entitled to vote generally in the election of directors.
(f)    “Committee” means the Compensation and Stock Plan Committee of the Board or a similar committee performing the functions of a compensation committee and which is comprised of not less than two Non-Employee Directors who are independent.
(g)    “Credited Service” means the performance of Service on a substantially full time basis for a continuous twelve-month period.  For this purpose, substantially full time basis shall mean that the employee or consultant provides regular and recurring services to the Company of at least 32 hours each week. The taking of approved paid time off or legally mandated leave, such as FMLA, does not interrupt this period of Credited Service.

Page 2 of 2

(h)    “Grant Date” means ___________   ___, 20__, which is the date the Committee authorized this PRSU grant.
(i)    “Grantee” shall have the meaning set forth in the introductory paragraph of this Agreement.
(j)     “Performance Period” means _______________ through _____________.
(k)    “Performance Restricted Stock Unit(s)” or “PRSU(s)” means the performance restricted stock unit(s) granted under Section 2.
(l)    “Service” means the performance of services for the Company (or any Affiliate) by a person in the capacity of an officer or other employee or key person (including consultants).
(m)    “Vesting Date” means the date on which the Grantee has performed three full periods of Credited Service the first period of which shall commence on the date hereof; provided, however, that in the event of a Change in Control, the Vesting Date shall be determined as set forth in Section 11(a) below.
2.    Grant of Performance Restricted Stock Units.  Subject to the terms and conditions set forth herein, the Company hereby grants to the Grantee ______ (the “Target Number”) PRSUs.  The actual number of PRSUs that are earned at the end of the Performance Period and subject to continuous vesting (“Earned PRSUs”) may be more or less than the Target Number, as determined by the Committee in accordance with the Adjusted EBITDA Margin Table attached hereto as Schedule I (the “Adjusted EBITDA Margin Table”).
3.    Vesting Schedule.  No PRSUs may be settled until they are earned and become  vested.  Except as otherwise set forth in this Agreement or in the Plan, the Earned PRSUs (as determined in accordance with the Adjusted EBITDA Margin Table) shall vest on the Vesting Date.  All PRSUs that do not become Earned PRSUs shall be forfeited and be null and void on the date the Committee calculates the Adjusted EBITDA Margin for the Performance Period (the “Calculation Date”).
4.    Settlement and Deferral of PRSUs.  
(a)    Each vested Earned PRSU entitles the Grantee to receive one share of Stock on the “Settlement Date,” which shall be the later of (i) the Vesting Date, and (ii) the end of the deferral period specified by the Grantee.  The deferral period shall be no less than three (3) years and five (5) days from the Grant Date.  Such deferral election shall be made within 30 days of the Grant Date.  This deferral period will apply only to the deferral election made on the specific deferral election form.  In addition, any such deferral must apply to receipt of all shares of Stock earned with respect to the entire Grant.  (If no deferral period is specified on the deferral election form, Stock will be issued as soon as practicable upon vesting of the PRSUs).  If the Grantee wishes to elect to delay his or her original Settlement Date, such election must be made at least twelve (12) months in advance of the Settlement Date and the new Settlement Date must be at least five (5) years after the original Settlement Date.

Page 3 of 3

(b)    Shares of Stock underlying the vested Earned PRSUs shall be issued and delivered to the Grantee in accordance with paragraph (a) and upon compliance to the satisfaction of the Committee with all requirements under applicable laws or regulations in connection with such issuance and with the requirements hereof and of the Plan.  The determination of the Committee as to such compliance shall be final and binding on the Grantee.  The shares of Stock delivered to the Grantee pursuant to this Section 4 shall be free and clear of all liens, fully paid and non-assessable.
(c)    Until such time as shares of Stock have been issued to the Grantee pursuant to paragraph (b) above, and except as set forth in Section 5 below regarding dividend equivalents, the Grantee shall not have any rights as a holder of the shares of Stock underlying this Grant including but not limited to voting rights.
(d)    The Grantee may be required to pay to the Company or any Affiliate, and the Company or any Affiliate shall have the right and is hereby authorized to withhold from any shares of Stock or other property deliverable in respect of a vested Earned PRSU or from any compensation or other amounts owing to the Grantee the amount (in cash, Stock or other property),  any required tax withholding and payroll taxes in respect of such Earned PRSUs vesting or settlement and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes.
(e)    Without limiting the generality of clause (d) above, in the Committee’s sole discretion the Grantee may satisfy, in whole or in part, the foregoing withholding liability (but no more than the minimum required withholding liability) by having the Company withhold from the number of shares of Stock otherwise issuable pursuant to the settlement of vested Earned PRSUs a number of shares with a Fair Market Value equal to such withholding liability.
5.    Dividend Equivalents.  If on any date the Company shall pay any cash dividend on shares of Stock of the Company, the number of Earned PRSUs credited to the Grantee pursuant to the Adjusted EBITDA Margin Table shall, as of such date (or as of the Calculation Date if such dividend occurs before the Calculation Date), be increased by an amount determined by the following formula:
W = (X multiplied by Y) divided by Z, where:
W = the number of additional PRSUs to be credited to the Grantee on such dividend payment date;
X = the aggregate number of PRSUs (whether vested or unvested) credited to the Grantee as of the record date of the dividend (or the Calculation Date, as applicable);
Y = the cash dividend per share amount; and 
Z = the Fair Market Value per share of Stock (as determined under the Plan) on the dividend payment date.

Page 4 of 4

6.    Termination of Employment.
(a)    If, prior to the Settlement Date, the Grantee shall undergo: a termination of full-time employment if an employee (and also termination of Service if a director); or cessation of providing Credited Service if a consultant, in each case other than for Cause, all unvested PRSUs at the date of such termination shall expire on such date.  In the event of such termination, if there are any deferred vested Earned PRSUs, regardless of the Grantee’s deferral election, the Company, as soon as practicable following the effective date of termination shall issue shares of Stock to Grantee (or Grantee’s designated beneficiary or estate executor in the event of Grantee’s death) with respect to any such deferred vested Earned PRSUs for which shares of Stock had not yet been issued to Grantee.  Notwithstanding the foregoing, if the Grantee is a specified employee (as defined in Section 409A of the Code), any distribution on account of termination of employment shall be delayed  six months and a day after the Grantee’s separation from service (within the meaning of Section 409A of the Code and the regulations promulgated thereunder).
(b)    If, prior to the Settlement Date, the Grantee is terminated from the employment or service with the Company for Cause, all Earned PRSUs then held by such Grantee (whether or not vested) shall expire immediately upon such cessation of employment or service.
7.    Company; Grantee.
(a)    The term “Company” as used in this Agreement with reference to employment shall include the Company, its Subsidiaries and its Affiliates, as appropriate.
(b)    Whenever the word “Grantee” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom the PRSUs may be transferred by will or by the laws of descent and distribution, the word “Grantee” shall be deemed to include such person or persons.
8.    Non-Transferability.  The PRSUs granted herein are not transferable by the Grantee other than to a designated beneficiary upon death, by will or the laws of descent and distribution, to a trust solely for the benefit of the Grantee or his/her immediate family or in the case of the PRSUs being held by such a trust, by the trustee.
9.    Forfeiture for Non-Compete Violation.
(a)    Non-Compete.  The Grantee agrees that during the term of Grantee’s employment and for a period of two years thereafter (the “Coverage Period”) the Grantee will not engage in, consult with, participate in, hold a position as shareholder, director, officer, consultant, employee, partner or investor, or otherwise assist any business entity (i) in any State of the United States of America or (ii) in any other country in which the Company has business activities, in either case, that is engaged in any activities which are competitive with (i) the business of providing healthcare or other personnel on a temporary or permanent placement basis to hospitals, healthcare facilities, healthcare provider practice groups or other entities, or (ii) clinical workforce management services, or (iii) in any other business in which the Company or any of its divisions, Affiliates or 

Page 5 of 5

Subsidiaries are then engaged, in each case, including any and all business activities reasonably related thereto.
(b)    Non-Solicit.  The Grantee agrees that during the Coverage Period, Grantee shall not solicit, attempt to solicit or endeavor to entice away from the Company any person who, at any time during the term of Grantee’s employment was a traveling nurse, physician, allied healthcare professional or other healthcare professional, employee, customer, client or supplier of the Company.
(c)    Confidential and Proprietary Information.  The Grantee agrees that Grantee will not, at any time make use of or divulge to any other person, firm or corporation any confidential or proprietary information concerning the business or policies of the Company or any of its divisions, affiliates or subsidiaries.   For purposes of this Agreement, any confidential information shall constitute any information designated as confidential or proprietary by the Company or otherwise known by the Grantee to be confidential or proprietary information including, without limitation, customer information.  Grantee acknowledges and agrees that for purposes of this Agreement, “customer information” includes without limitation, customer lists, all lists of professional personnel, names, addresses, phone numbers, contact persons, preferences, pricing arrangements, requirements and practices.  Grantee’s obligation under this Section 9(c) shall not apply to any information which (i) is known publicly; (ii) is in the public domain or hereafter enters the public domain without the fault of Grantee; or (iii) is hereafter disclosed to Grantee by a third party not under an obligation of confidence to the Company.  Grantee agrees not to remove from the premises of the Company, except as an employee of the Company in pursuit of the business of the Company or except as specifically permitted in writing by the Company, any document or other object containing or reflecting any such confidential or proprietary information.  Grantee recognizes that all such information, whether developed by the Grantee or by someone else, will be the sole exclusive property of the Company.  Upon termination of employment, Grantee shall forthwith deliver to the Company all such confidential or proprietary information, including without limitation all lists of customers, pricing methods, financial structures, correspondence, accounts, records and any other documents, computer disks, computer programs, software, laptops, modems or property made or held by Grantee or under Grantee’s control in relation to the business or affairs of the Company or any of its divisions, Subsidiaries or Affiliates, and no copy of any such confidential or proprietary information shall be retained by Grantee.
(d)    Forfeiture for Violations.  If the Grantee shall at any time violate the provisions of Section 9(a), (b), or (c), the Grantee shall immediately forfeit his/her Earned PRSUs (whether vested or unvested) and any issuance of shares of Stock which occurs after (or within six months before) any such violation shall be void ab initio.
10.    Rights as Stockholder.  The Grantee or a transferee of the Earned PRSUs shall have no rights as a stockholder with respect to any share of Stock covered by the Earned PRSUs until the Grantee shall have become the holder of record of such share and no adjustment shall be made for 

Page 6 of 6

dividends or distributions or other rights in respect of such share of Stock for which the record date is prior to the date upon which Grantee shall become the holder of record thereof.
11.    Effect of Change in Control.
(a)    In the event of a Change in Control prior to the end of the Performance Period, the Target Number of PRSUs shall automatically vest upon such Change in Control.  The Company shall issue shares of Stock (or cash if shares of Stock are no longer available) to the Grantee to settle the vested PRSUs as soon as practicable.
(b)    The obligations of the Company under this Agreement shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.  The Company agrees that it will make appropriate provisions for the preservation of the Grantee’s rights under this Agreement in any agreement or plan that it may enter into or adopt to effect any such merger, consolidation, reorganization or transfer of assets.
12.    Notice.  Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided, provided that, unless and until some other address be so designated, all notices or communications by the Grantee to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to the Grantee may be given to the Grantee personally or may be mailed to Grantee at Grantee’s address as recorded in the records of the Company.
13.    No Right to Continued Employment.  This Agreement shall not be construed as giving the Grantee the right to be retained in the employ or service of the Company, a Subsidiary or an Affiliate.  Further, the Company or an Affiliate may at any time dismiss the Grantee or discontinue any consulting relationship, free from any liability or any claim under this Agreement, except as otherwise expressly provided herein.
14.    Binding Effect.  Subject to Section 8 hereof, this Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto.
15.    Amendment of Agreement.  The Committee may, to the extent consistent with the terms of this Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any portion of the PRSUs heretofore granted, prospectively or retroactively; provided that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would impair the rights of the Grantee in respect of any PRSUs already granted shall not to that extent be effective without the consent of the Grantee.
16.    PRSUs Subject to Plan and 2005 Amended and Restated Executive Nonqualified Excess Plan, as amended.  By entering into this Agreement, the Grantee agrees and acknowledges that the Grantee has received and read a copy of the Plan and a copy of the Company’s 2005 Amended and Restated Executive Nonqualified Excess Plan.  The PRSUs are subject to the terms of both plans.  The terms and provisions of the plans as they may be amended from time to time are 

Page 7 of 7

hereby incorporated herein by reference.  In the event of a conflict between any term or provision contained herein and a term or provision of either the Plan or the Company’s 2005 Amended and Restated Executive Nonqualified Excess Plan, the applicable terms and provisions of the applicable plan will govern and prevail.
17.    Governing Law.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware without regard to the principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction that could cause the application of the laws of any jurisdiction other than the State of Delaware.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
AMN HEALTHCARE SERVICES, INC.
		
	By: 
	___________________________ 
Name:    Susan R. Salka 
Title:    President and CEO

GRANTEE
		
	By: 
	___________________________ 
Name:     

Page 8 of 8

Schedule 1
Adjusted EBITDA Margin Table

Page 9 of 9

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